FAC Explorer

Audit 316294

FY End
2023-12-31
Total Expended
$4.77M
Findings
4
Programs
15
Organization: Northwest Colorado Council of Governments (CO)
Year: 2023 Accepted: 2024-07-30
Auditor: Cliftonlarsonallen LLP Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479722 2023-001 Significant Deficiency Yes B
479723 2023-002 Significant Deficiency Yes B
1056164 2023-001 Significant Deficiency Yes B
1056165 2023-002 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
81.042 Weatherization Assistance for Low-Income Persons $1.48M Yes 1
93.568 Low-Income Home Energy Assistance $658,023 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $464,000 - 0
93.889 National Bioterrorism Hospital Preparedness Program $200,335 - 0
97.067 Homeland Security Grant Program $176,316 - 0
11.302 Economic Development_support for Planning Organizations $144,401 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $80,982 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $34,047 - 0
66.454 Water Quality Management Planning $33,733 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $33,503 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $21,495 - 0
93.324 State Health Insurance Assistance Program $15,604 - 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $14,023 - 0
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $2,562 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $0 - 0

Contacts

Name Title Type
RQC9GY7Z15J7 Becky Walter Auditee
9704680295 Sam Hellwege Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: Revenue from federal awards is recognized when the Council has done everything necessary to establish its right to revenue. For governmental funds, revenue from federal grants is recognized when it becomes both measurable and available. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. The Northwest Colorado Council of Governments has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Northwest Colorado Council of Governments has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Northwest Colorado Council of Governments under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 the Northwest Colorado Council of Governments, it is not intended to and does not present the financial position or changes in net position of the Northwest Colorado Council of Governments.

Finding Details

Finding 2023-001
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-21-DC-08-0001 2021 Pass-Through Agency: Colorado Department of Local Affairs Pass-Through Number: F20CDBG20630 Award Period: April 1, 2020 – March 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: In accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), the Council should report all federal expenditures in the schedule of expenditures of federal awards (SEFA) each fiscal year. Additionally, per 2 CFR section 200.502(a)-(d), the determination of when a federal award is expended must be based on when the activity related to the federal award occurs, including the value of new loans made during the audit period. Condition: In reviewing the expenditure detail and supporting documentation for the 2023 SEFA, the Council included $150,000 of excess federal expenditures that were not disbursed in 2023. Questioned Costs: None Context: The inclusion of excess expenditures to be reported in 2024 was identified during completeness testing of the current year major program. Cause: SEFA expenditures for the CDBG program were not reconciled to loan disbursements in 2023. Management misinterpreted the loan amount report provided by NLF’s loan management software. One loan for $150,000 was disbursed during 2023 and another $150,000 loan was disbursed to the same borrower in 2024. However, all $300,000 was initially reported on the 2023 SEFA. Effect: The 2023 SEFA was initially overstated by $150,000, and was subsequently adjusted. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003. Recommendation: We recommend that the Council record federal expenditures on the SEFA under the program in the year upon which the loan disbursement occurs using the proper report from NLF’s loan management software. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: Department of Energy Federal Program Title: Weatherization Assistance for Low-income Persons Assistance Listing Number: 81.042 Federal Award Identification Number and Year: DEEE0007908-2017 2019 Pass-Through Agency: Colorado Energy Office Pass-Through Number: GAE 20-2019 Award Period: July 1, 2019 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires charges to federal awards for salaries and wages be based on records that accurately reflect the work performed. These records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: One hourly employee’s wages were overpaid and charged to the grant when compared to the hours per the approved timesheet. Questioned Costs: $46 Context: For one employee, and one pay period tested, the hourly employee’s gross wages overpaid and overcharged to the grant by $46 based on two hours that were improperly included in the final payroll run. Cause: Entering payroll into QuickBooks using the approved timesheet for hourly employees was a manual process. For this individual, the timesheet reported a total of 92 hours of regular pay. However, when the time sheet hours were summed, it was noted there were only 90 hours reported on the time sheet, thus 2 hours were improperly included on the payroll run as hour totals were not verified. Effect: For the February 15, 2023, pay period, the employee was overpaid, and the grant was overcharged a total of $46. Repeat Finding: The finding is a repeat of a finding in the 2021 fiscal. Prior year finding number was 2021-002. Recommendation: We recommend the Council review its payroll procedures over hourly employees to ensure all hours are properly accounted for by pay code in the final payroll. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-21-DC-08-0001 2021 Pass-Through Agency: Colorado Department of Local Affairs Pass-Through Number: F20CDBG20630 Award Period: April 1, 2020 – March 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: In accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), the Council should report all federal expenditures in the schedule of expenditures of federal awards (SEFA) each fiscal year. Additionally, per 2 CFR section 200.502(a)-(d), the determination of when a federal award is expended must be based on when the activity related to the federal award occurs, including the value of new loans made during the audit period. Condition: In reviewing the expenditure detail and supporting documentation for the 2023 SEFA, the Council included $150,000 of excess federal expenditures that were not disbursed in 2023. Questioned Costs: None Context: The inclusion of excess expenditures to be reported in 2024 was identified during completeness testing of the current year major program. Cause: SEFA expenditures for the CDBG program were not reconciled to loan disbursements in 2023. Management misinterpreted the loan amount report provided by NLF’s loan management software. One loan for $150,000 was disbursed during 2023 and another $150,000 loan was disbursed to the same borrower in 2024. However, all $300,000 was initially reported on the 2023 SEFA. Effect: The 2023 SEFA was initially overstated by $150,000, and was subsequently adjusted. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003. Recommendation: We recommend that the Council record federal expenditures on the SEFA under the program in the year upon which the loan disbursement occurs using the proper report from NLF’s loan management software. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: Department of Energy Federal Program Title: Weatherization Assistance for Low-income Persons Assistance Listing Number: 81.042 Federal Award Identification Number and Year: DEEE0007908-2017 2019 Pass-Through Agency: Colorado Energy Office Pass-Through Number: GAE 20-2019 Award Period: July 1, 2019 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires charges to federal awards for salaries and wages be based on records that accurately reflect the work performed. These records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: One hourly employee’s wages were overpaid and charged to the grant when compared to the hours per the approved timesheet. Questioned Costs: $46 Context: For one employee, and one pay period tested, the hourly employee’s gross wages overpaid and overcharged to the grant by $46 based on two hours that were improperly included in the final payroll run. Cause: Entering payroll into QuickBooks using the approved timesheet for hourly employees was a manual process. For this individual, the timesheet reported a total of 92 hours of regular pay. However, when the time sheet hours were summed, it was noted there were only 90 hours reported on the time sheet, thus 2 hours were improperly included on the payroll run as hour totals were not verified. Effect: For the February 15, 2023, pay period, the employee was overpaid, and the grant was overcharged a total of $46. Repeat Finding: The finding is a repeat of a finding in the 2021 fiscal. Prior year finding number was 2021-002. Recommendation: We recommend the Council review its payroll procedures over hourly employees to ensure all hours are properly accounted for by pay code in the final payroll. Views of Responsible Officials: There is no disagreement with the audit finding.