Audit 311038

FY End
2023-04-30
Total Expended
$1.67M
Findings
2
Programs
2
Year: 2023 Accepted: 2024-06-28

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
404438 2023-002 Significant Deficiency Yes L
980880 2023-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $902,946 Yes 0
14.218 Community Development Block Grants/entitlement Grants $116,506 - 0

Contacts

Name Title Type
NXYKAGLK8G56 Debra Davis Auditee
8166912141 Amy Tharnish Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Corporation under programs of the federal government for the year ended April 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. De Minimis Rate Used: N Rate Explanation: The Corporation voluntarily elected not to use it. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Corporation under programs of the federal government for the year ended April 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Corporation under programs of the federal government for the year ended April 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. De Minimis Rate Used: N Rate Explanation: The Corporation voluntarily elected not to use it. Expenditures reported on the accompanying Schedule are reported in conformity with accounting principles accepted in the United States of America. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Outstanding Loan Balance Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Corporation under programs of the federal government for the year ended April 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. De Minimis Rate Used: N Rate Explanation: The Corporation voluntarily elected not to use it. The federal loan programs listed below are administered directly by the Corporation, and balances and transactions relating to these programs are included in the Corporation’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at April 30, 2023 consists of:
Title: Revolving Loan Fund Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Corporation under programs of the federal government for the year ended April 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. De Minimis Rate Used: N Rate Explanation: The Corporation voluntarily elected not to use it. For the schedule of expenditures of federal awards (SEFA), the amount expended for the U.S. Department of Commerce - Economic Adjustment Assistance - Revolving Loan Fund (RLF) program is determined as follows:

Finding Details

Finding 2023-002: Assistance #11.307 - Economic Adjustment Assistance - Revolving Loan Fund, U.S. Department of Commerce, Economic Development Administration, Award No. 05-39-01879 (Significant Deficiency) (Repeat Finding 2022-002) Condition: Reports submitted during the year were not submitted within the deadline and the review process was not documented. Criteria: All Economic Development Administration (EDA) Revolving Loan Fund (RLF) recipients must submit in electronic format Form ED-209 through EDA’s Revolving Loan Fund Management System (RLFMS) semi-annually based on the entity’s fiscal year-end and submitted within 30 calendar days. Questioned Costs: N/A Context: Two of the RLF Financial Reports (ED-209) selected for review were not submitted within the required deadline. The sample size was determined based upon the guidelines provided by the AICPA which is not a statistically valid sample. Cause: The Corporation experienced delays due to new reporting requirements relating to the treatment of past due loan payments. Report corrections and new submissions were required that fell after the required deadline. Effect: Untimely filing or missed reporting may impact future awards with the EDA. Recommendation: We recommend that the Corporation review its process and procedures to ensure that required reports are being prepared, reviewed, and submitted within deadlines. Views of Responsible Officials (Unaudited): The EDC Loan Corporation ED-209 Reports will be reviewed and submitted by the required 30 calendar days following the reporting date. EDCLC will submit the reports 5-10 days prior to the reporting due date to allow for any correction response submissions.
Finding 2023-002: Assistance #11.307 - Economic Adjustment Assistance - Revolving Loan Fund, U.S. Department of Commerce, Economic Development Administration, Award No. 05-39-01879 (Significant Deficiency) (Repeat Finding 2022-002) Condition: Reports submitted during the year were not submitted within the deadline and the review process was not documented. Criteria: All Economic Development Administration (EDA) Revolving Loan Fund (RLF) recipients must submit in electronic format Form ED-209 through EDA’s Revolving Loan Fund Management System (RLFMS) semi-annually based on the entity’s fiscal year-end and submitted within 30 calendar days. Questioned Costs: N/A Context: Two of the RLF Financial Reports (ED-209) selected for review were not submitted within the required deadline. The sample size was determined based upon the guidelines provided by the AICPA which is not a statistically valid sample. Cause: The Corporation experienced delays due to new reporting requirements relating to the treatment of past due loan payments. Report corrections and new submissions were required that fell after the required deadline. Effect: Untimely filing or missed reporting may impact future awards with the EDA. Recommendation: We recommend that the Corporation review its process and procedures to ensure that required reports are being prepared, reviewed, and submitted within deadlines. Views of Responsible Officials (Unaudited): The EDC Loan Corporation ED-209 Reports will be reviewed and submitted by the required 30 calendar days following the reporting date. EDCLC will submit the reports 5-10 days prior to the reporting due date to allow for any correction response submissions.