Audit 316000

FY End
2022-09-30
Total Expended
$15.67M
Findings
16
Programs
7
Year: 2022 Accepted: 2024-07-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
479461 2022-004 Significant Deficiency - N
479462 2022-004 Significant Deficiency - N
479463 2022-004 Significant Deficiency - N
479464 2022-004 Significant Deficiency - N
479465 2022-005 Significant Deficiency - N
479466 2022-005 Significant Deficiency - N
479467 2022-005 Significant Deficiency - N
479468 2022-005 Significant Deficiency - N
1055903 2022-004 Significant Deficiency - N
1055904 2022-004 Significant Deficiency - N
1055905 2022-004 Significant Deficiency - N
1055906 2022-004 Significant Deficiency - N
1055907 2022-005 Significant Deficiency - N
1055908 2022-005 Significant Deficiency - N
1055909 2022-005 Significant Deficiency - N
1055910 2022-005 Significant Deficiency - N

Contacts

Name Title Type
GHRFE15TLXS3 Kevin Watson Auditee
6706644282 David Burger Auditor
No contacts on file

Notes to SEFA

Title: Scope of Audit Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which CUC maintains its accounting records. All expenses and capital outlays are reported as expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. CUC recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: N/A The Commonwealth Utilities Corporation (CUC) is a component unit of the Commonwealth of the Northern Mariana Islands (CNMI) Government and was established as a public corporation by CNMI Public Law 4-47, as amended and has the powers of a body corporate, as defined in the act and local statutes. Only the transactions of CUC are included within the scope of the Single Audit.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which CUC maintains its accounting records. All expenses and capital outlays are reported as expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. CUC recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of CUC under programs of the federal government for the year ended September 30, 2022. 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of CUC, it is not intended to and does not present the financial position, changes in net position or cash flows of CUC.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which CUC maintains its accounting records. All expenses and capital outlays are reported as expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. CUC recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: N/A Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which CUC maintains its accounting records. All expenses and capital outlays are reported as expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. CUC recognizes contributions from the federal government when qualifying expenditures are incurred. Indirect Costs CUC does not have an indirect cost negotiation agreement and does not elect to use the de-minimis indirect cost rate allowed under the Uniform Guidance. Matching Costs The 20 percent non-federal share of ALN 11.300 is not included in the accompanying Schedule of Expenditures of Federal Awards. The 25 percent non-federal share of ALN 11.307 is not included in the accompanying Schedule of Expenditures of Federal Awards.

Finding Details

Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Administrative Conditions of the grant notification from the US EPA, CUC must submit EPA Form 5700-52A by October 30 of the same year. Condition: The EPA Form 5700-52A was submitted after October 30, 2022. Cause: The EPA Form 5700-52A MBE/WBE Report was submitted on a later date. Effect: CUC submitted the EPA Form 5700-52A late and is not complying with grant requirements. Recommendation: CUC should discuss the monitoring efforts for preparing EPA Form 5700-52A. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.
Criteria: As per the Programmatic Conditions of the grant notification from the US EPA, CUC must submit quarterly project performance and progress reports to the EPA Project Officer beginning three months after the agreement's initiation. The reports must include brief information for each individual project covered under this grant and are due fifteen (15) days following the end of the quarter. Condition: For quarters 1, 2, and 4, the quarterly project performance and progress reports were submitted after the 15-day deadline. For quarter 3, the quarterly project performance and progress report were not submitted. Cause: There is a lack of monitoring procedures to ensure the timely submission of quarterly project performance and progress reports. Effect: CUC is not complying with grant requirements. Recommendation: CUC should establish a monitoring procedure such as a checklist or personnel that will review submissions of reports. Views of the Officials: CUC’s response is documented in the corrective action plan.