FAC Explorer

Audit 319198

FY End
2023-12-31
Total Expended
$2.30M
Findings
4
Programs
6
Organization: Ohio Valley Regional Development Commission (OH)
Year: 2023 Accepted: 2024-09-10
Auditor: Keith Faber Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496304 2023-001 Material Weakness - L
496305 2023-001 Material Weakness - L
1072746 2023-001 Material Weakness - L
1072747 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
23.011 Appalachian Research, Technical Assistance, and Demonstration Projects $812,660 - 0
11.307 Economic Adjustment Assistance $470,545 Yes 1
10.351 Rural Business Development Grant $198,328 - 0
23.009 Appalachian Local Development District Assistance $110,031 - 0
20.205 Highway Planning and Construction $72,923 - 0
11.302 Economic Development_support for Planning Organizations $58,399 - 0

Contacts

Name Title Type
GYLAQM2JSH18 Juanita Bragg Auditee
7409472853 Julie Keegan Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87 Cost Prinicples for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to 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 Ohio Valley Regional Development Commission (the Commission) under programs of the federal government for the year ended December 31, 2023. The information on this Schedule is prepared 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 the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission
Title: Note B - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87 Cost Prinicples for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or 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 may or may not be allowable or may be limited as to reimbursement.
Title: Note C - Indirects Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87 Cost Prinicples for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Commission has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note D - Loan Programs with Continuing Compliance Requirements Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87 Cost Prinicples for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Commission has established a revolving loan program to provide low-interest loans to businesses to create jobs in the region. The Appalachian Regional Commission (ARC) and the Economic Development Administration (EDA) have granted money for these loans to the Commission. The initial loan of this money is recorded as a disbursement on the accompanying schedule. Loans repaid, including interest, are used to make additional loans. Such subsequent loans are subject to certain compliance requirements imposed by the grantors. Such loans are included as expenditures on the schedule. In 2016 the Commission took over the revolving loan program from Ohio Valley Resource Conservation & Development Council (OVRC&D) who had decided to end operations. This loan program was funded by the United States Department of Agriculture, Rural Development, Rural Business Enterprise Grant (USDA RD RBEG). Collateral for these loans is determined on a case-by-case basis, but includes mortgages on the real estate and liens on business equipment and inventory. 2023 revolving loan fund expenditures are based upon the following calculations, per ARC, EDA and USDA RD guidance. US Dept. of Agriculture, Rural Development (USDA RD) CFDA #10.351 Outstanding loan balance at the end of the prior year $ 195,496 New loans disbursed during year $ 0 Total expended on eligible admin. 2,832 $ 198,328 The outstanding loan balance for the year ended December 31, 2023 for USDA RD Revolving Loan was $195,496. As of September 2021, EDA released its federal interest in OVRDC’s EDA/RLF award #06-39-02181 Economic Development Administration (EDA) Coronavirus Aid, Relief, and Economic Security (CARES) Act CFDA #11.307 Outstanding loan balance at the end of the year $ 395,780 Cash and investment balance in the RLF at the end of the year 67,874 Administrative expenses paid out of the RLF income during the year 6,891 $ 470,545 The outstanding loan balance for the year ended December 31, 2023 for EDA CARES Revolving Loan was $395,780. Appalachian Regional Commission (ARC) CFDA #23.011 Outstanding loan balance at the end of the prior year $ 795,980 New loans disbursed during year 0 Total expended on eligible admin. costs 16,680 $ 812,660 The outstanding loan balance for the year ended December 31, 2023 for ARC Revolving Loan was $795,980.
Title: Note E - Matching Requirements Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87 Cost Prinicples for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or 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 may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain Federal programs require the Commission to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The Commission has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.

Finding Details

Finding 2023-001
2 CFR § 200.328 provides the Federal awarding agency may solicit only the standard, OMB-approved governmentwide data elements for collection of financial information. This information must be collected with the frequency required by the terms and conditions of the Federal award.The American Rescue Plan Act Statewide Planning Award states that Grantee shall submit to Grantor Project Progress Reports. Grantee agrees to provide Grantor with project progress reports, communicating the important activities and accomplishments of the project, on a semi-annual basis for the period ending March 31 and September 30, or any portion thereof, for the entire project period. Reports are due no later than two weeks following the end of the semi-annual period. Reports shall be in clear format, not exceeding six pages, and shall: i. Document accomplishments, benefits, and impacts of the project. The Grantee should identify activities that have led to specific outcomes, such as job creation/retention, private investment, increased regional collaboration, engagement with historically excluded groups or regions, enhanced regional capacity, or other positive economic development benefits; ii. Identify any upcoming or potential press events or opportunities for collaborative press engagement to highlight the benefits of the award investment; iii. Compare progress on the project with the targeted schedule, explaining nay departures, identifying how those departures will be remedied, and projecting the course of work for the next semi-annual reporting period; iv. Outline challenges impending or that my impede progress on the project over the next semi-annual reporting period and identify ways to address those challenges; v. Outline any areas in which assistance is needed to support the project; and vi. Provide any other information that would be helpful for Grantor to know.The Project Progress Report for the semi-annual basis for the period ending March 31 contained the required information; however, due to insufficient controls over ensuring reports are submitted by the required due date, it was not submitted timely within the two weeks following the end of the semi-annual period and was submitted on October 16, 2023, six months late by the Commission.Failure to submit reports on a timely basis could result in delays in federal funding or other penalties and sanctions.The Commission should ensure that all federal reports are submitted timely.
Finding 2023-001
2 CFR § 200.328 provides the Federal awarding agency may solicit only the standard, OMB-approved governmentwide data elements for collection of financial information. This information must be collected with the frequency required by the terms and conditions of the Federal award.The American Rescue Plan Act Statewide Planning Award states that Grantee shall submit to Grantor Project Progress Reports. Grantee agrees to provide Grantor with project progress reports, communicating the important activities and accomplishments of the project, on a semi-annual basis for the period ending March 31 and September 30, or any portion thereof, for the entire project period. Reports are due no later than two weeks following the end of the semi-annual period. Reports shall be in clear format, not exceeding six pages, and shall: i. Document accomplishments, benefits, and impacts of the project. The Grantee should identify activities that have led to specific outcomes, such as job creation/retention, private investment, increased regional collaboration, engagement with historically excluded groups or regions, enhanced regional capacity, or other positive economic development benefits; ii. Identify any upcoming or potential press events or opportunities for collaborative press engagement to highlight the benefits of the award investment; iii. Compare progress on the project with the targeted schedule, explaining nay departures, identifying how those departures will be remedied, and projecting the course of work for the next semi-annual reporting period; iv. Outline challenges impending or that my impede progress on the project over the next semi-annual reporting period and identify ways to address those challenges; v. Outline any areas in which assistance is needed to support the project; and vi. Provide any other information that would be helpful for Grantor to know.The Project Progress Report for the semi-annual basis for the period ending March 31 contained the required information; however, due to insufficient controls over ensuring reports are submitted by the required due date, it was not submitted timely within the two weeks following the end of the semi-annual period and was submitted on October 16, 2023, six months late by the Commission.Failure to submit reports on a timely basis could result in delays in federal funding or other penalties and sanctions.The Commission should ensure that all federal reports are submitted timely.
Finding 2023-001
2 CFR § 200.328 provides the Federal awarding agency may solicit only the standard, OMB-approved governmentwide data elements for collection of financial information. This information must be collected with the frequency required by the terms and conditions of the Federal award.The American Rescue Plan Act Statewide Planning Award states that Grantee shall submit to Grantor Project Progress Reports. Grantee agrees to provide Grantor with project progress reports, communicating the important activities and accomplishments of the project, on a semi-annual basis for the period ending March 31 and September 30, or any portion thereof, for the entire project period. Reports are due no later than two weeks following the end of the semi-annual period. Reports shall be in clear format, not exceeding six pages, and shall: i. Document accomplishments, benefits, and impacts of the project. The Grantee should identify activities that have led to specific outcomes, such as job creation/retention, private investment, increased regional collaboration, engagement with historically excluded groups or regions, enhanced regional capacity, or other positive economic development benefits; ii. Identify any upcoming or potential press events or opportunities for collaborative press engagement to highlight the benefits of the award investment; iii. Compare progress on the project with the targeted schedule, explaining nay departures, identifying how those departures will be remedied, and projecting the course of work for the next semi-annual reporting period; iv. Outline challenges impending or that my impede progress on the project over the next semi-annual reporting period and identify ways to address those challenges; v. Outline any areas in which assistance is needed to support the project; and vi. Provide any other information that would be helpful for Grantor to know.The Project Progress Report for the semi-annual basis for the period ending March 31 contained the required information; however, due to insufficient controls over ensuring reports are submitted by the required due date, it was not submitted timely within the two weeks following the end of the semi-annual period and was submitted on October 16, 2023, six months late by the Commission.Failure to submit reports on a timely basis could result in delays in federal funding or other penalties and sanctions.The Commission should ensure that all federal reports are submitted timely.
Finding 2023-001
2 CFR § 200.328 provides the Federal awarding agency may solicit only the standard, OMB-approved governmentwide data elements for collection of financial information. This information must be collected with the frequency required by the terms and conditions of the Federal award.The American Rescue Plan Act Statewide Planning Award states that Grantee shall submit to Grantor Project Progress Reports. Grantee agrees to provide Grantor with project progress reports, communicating the important activities and accomplishments of the project, on a semi-annual basis for the period ending March 31 and September 30, or any portion thereof, for the entire project period. Reports are due no later than two weeks following the end of the semi-annual period. Reports shall be in clear format, not exceeding six pages, and shall: i. Document accomplishments, benefits, and impacts of the project. The Grantee should identify activities that have led to specific outcomes, such as job creation/retention, private investment, increased regional collaboration, engagement with historically excluded groups or regions, enhanced regional capacity, or other positive economic development benefits; ii. Identify any upcoming or potential press events or opportunities for collaborative press engagement to highlight the benefits of the award investment; iii. Compare progress on the project with the targeted schedule, explaining nay departures, identifying how those departures will be remedied, and projecting the course of work for the next semi-annual reporting period; iv. Outline challenges impending or that my impede progress on the project over the next semi-annual reporting period and identify ways to address those challenges; v. Outline any areas in which assistance is needed to support the project; and vi. Provide any other information that would be helpful for Grantor to know.The Project Progress Report for the semi-annual basis for the period ending March 31 contained the required information; however, due to insufficient controls over ensuring reports are submitted by the required due date, it was not submitted timely within the two weeks following the end of the semi-annual period and was submitted on October 16, 2023, six months late by the Commission.Failure to submit reports on a timely basis could result in delays in federal funding or other penalties and sanctions.The Commission should ensure that all federal reports are submitted timely.