FAC Explorer

Audit 316477

FY End
2023-12-31
Total Expended
$945,432
Findings
4
Programs
5
Organization: African Development Center (MN)
Year: 2023 Accepted: 2024-08-01
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480248 2023-003 Significant Deficiency Yes L
480249 2023-003 Significant Deficiency Yes L
1056690 2023-003 Significant Deficiency Yes L
1056691 2023-003 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
59.046 Microloan Program $575,195 Yes 1
21.020 Community Development Financial Institutions Program $106,688 - 0
14.218 Community Development Block Grants/entitlement Grants $63,000 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,000 - 0
14.169 Housing Counseling Assistance Program $15,500 - 0

Contacts

Name Title Type
TCSTLVATWZM6 Nasibu Sareva Auditee
6128778263 Deirdre Hodgson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the loan balances as discussed below. 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. (2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: ADC has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance when applicable. The accompanying schedule of accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of African Development Center 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 African Development Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of African Development Center.
Title: Loans and Loan Guarantees Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the loan balances as discussed below. 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. (2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: ADC has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance when applicable. Federal expenditures for the Small Business Administration Microloan program represent $394,677 of loans outstanding from the previous year for which the grantor imposes continuing compliance requirements. The loan balances are as of December 31, 2022, plus the amount of new loans issued during 2023 ($95,000). The loan balances of federal loan programs were funded by Small Business Administration and as of December 31, 2023 are as follows: Loan Loans Advanced Program Title Balance in Current Year SBA Microloan Program $ 3 94,677 $ 9 5,000

Finding Details

Finding 2023-003
Federal Agency: U.S. Small Business Administration Federal Program: Microloan Program Assistance Listing Numbers: 59.046 Federal Award Identification Number and Year: 􀁸 SBAOCAML220344– 2022 􀁸 SBACAML230551 – 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: 􀁸 Significant Deficiency in Internal Control over Compliance 􀁸 Compliance - Other Matter Criteria or Specific Requirement: Federal regulations require submission of performance reports at an interval required by the federal awarding agency. Those reports submitted quarterly must be due no later than 30 calendar days after the reporting period. These requirements are outlined in 2 CFR 200.329(c) Monitoring and reporting program performance. Condition: During our testing, we tested two quarterly performance reports and it was noted both were submitted after the required due date outlined in the grant agreement. Questioned Costs: None Context: During our testing, it was noted the Organization did not have proper procedures in place for ensuring timely submission of the quarterly performance reports as required in the federal fund notice of awards. Cause: Management did not have a system in place to ensure the completion and submission of the required performance reporting by the specified due date. Effect: By submitting untimely performance reports, the Organization is not in compliance with the terms and conditions of the award. This did not result in any disallowed costs. Repeat Finding: Yes Recommendation: We recommend management develop procedures to ensure the required reporting is completed within the timeline allowed by the granting agency. Views of Responsible Officials: Management agrees with finding.
Finding 2023-003
Federal Agency: U.S. Small Business Administration Federal Program: Microloan Program Assistance Listing Numbers: 59.046 Federal Award Identification Number and Year: 􀁸 SBAOCAML220344– 2022 􀁸 SBACAML230551 – 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: 􀁸 Significant Deficiency in Internal Control over Compliance 􀁸 Compliance - Other Matter Criteria or Specific Requirement: Federal regulations require submission of performance reports at an interval required by the federal awarding agency. Those reports submitted quarterly must be due no later than 30 calendar days after the reporting period. These requirements are outlined in 2 CFR 200.329(c) Monitoring and reporting program performance. Condition: During our testing, we tested two quarterly performance reports and it was noted both were submitted after the required due date outlined in the grant agreement. Questioned Costs: None Context: During our testing, it was noted the Organization did not have proper procedures in place for ensuring timely submission of the quarterly performance reports as required in the federal fund notice of awards. Cause: Management did not have a system in place to ensure the completion and submission of the required performance reporting by the specified due date. Effect: By submitting untimely performance reports, the Organization is not in compliance with the terms and conditions of the award. This did not result in any disallowed costs. Repeat Finding: Yes Recommendation: We recommend management develop procedures to ensure the required reporting is completed within the timeline allowed by the granting agency. Views of Responsible Officials: Management agrees with finding.
Finding 2023-003
Federal Agency: U.S. Small Business Administration Federal Program: Microloan Program Assistance Listing Numbers: 59.046 Federal Award Identification Number and Year: 􀁸 SBAOCAML220344– 2022 􀁸 SBACAML230551 – 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: 􀁸 Significant Deficiency in Internal Control over Compliance 􀁸 Compliance - Other Matter Criteria or Specific Requirement: Federal regulations require submission of performance reports at an interval required by the federal awarding agency. Those reports submitted quarterly must be due no later than 30 calendar days after the reporting period. These requirements are outlined in 2 CFR 200.329(c) Monitoring and reporting program performance. Condition: During our testing, we tested two quarterly performance reports and it was noted both were submitted after the required due date outlined in the grant agreement. Questioned Costs: None Context: During our testing, it was noted the Organization did not have proper procedures in place for ensuring timely submission of the quarterly performance reports as required in the federal fund notice of awards. Cause: Management did not have a system in place to ensure the completion and submission of the required performance reporting by the specified due date. Effect: By submitting untimely performance reports, the Organization is not in compliance with the terms and conditions of the award. This did not result in any disallowed costs. Repeat Finding: Yes Recommendation: We recommend management develop procedures to ensure the required reporting is completed within the timeline allowed by the granting agency. Views of Responsible Officials: Management agrees with finding.
Finding 2023-003
Federal Agency: U.S. Small Business Administration Federal Program: Microloan Program Assistance Listing Numbers: 59.046 Federal Award Identification Number and Year: 􀁸 SBAOCAML220344– 2022 􀁸 SBACAML230551 – 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: 􀁸 Significant Deficiency in Internal Control over Compliance 􀁸 Compliance - Other Matter Criteria or Specific Requirement: Federal regulations require submission of performance reports at an interval required by the federal awarding agency. Those reports submitted quarterly must be due no later than 30 calendar days after the reporting period. These requirements are outlined in 2 CFR 200.329(c) Monitoring and reporting program performance. Condition: During our testing, we tested two quarterly performance reports and it was noted both were submitted after the required due date outlined in the grant agreement. Questioned Costs: None Context: During our testing, it was noted the Organization did not have proper procedures in place for ensuring timely submission of the quarterly performance reports as required in the federal fund notice of awards. Cause: Management did not have a system in place to ensure the completion and submission of the required performance reporting by the specified due date. Effect: By submitting untimely performance reports, the Organization is not in compliance with the terms and conditions of the award. This did not result in any disallowed costs. Repeat Finding: Yes Recommendation: We recommend management develop procedures to ensure the required reporting is completed within the timeline allowed by the granting agency. Views of Responsible Officials: Management agrees with finding.