Audit 320940

FY End

2023-12-31

Total Expended

$4.12M

Findings

2

Programs

1

Organization: Westward Heights (WY)

Year: 2023 Accepted: 2024-09-25

Auditor: Decoria & Company PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
498187	2023-002	Significant Deficiency	Yes	L
1074629	2023-002	Significant Deficiency	Yes	L

ALN	Program	Spent	Major	Findings
10.766	Community Facilities Loans and Grants	$4.12M	Yes	1

Contacts

Name	Title	Type
K2LJADMGW6L3	Caitlin Delbridge	Auditee
3073325560	Mike Burton	Auditor
No contacts on file

Notes to SEFA

Title: USDA Community Facilities Loan Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Westward Heights and is presented on the modified accrual basis of accounting. 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). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Prior to 2022’s compliance supplement, Community Facilities (CF) loans did not have continuing compliance requirements and thus were not required to be audited under 2 CFP Part 200, Subpart F in years after project completion. However, USDA has now changed this position and determined that CF loans have continuing compliance requirements. Therefore, the total outstanding balance of the loan at the beginning of audit period should be considered federal awards expended, included in determining Type A programs, and reported as loans on the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2023-002

Assistance Listing 10.766 Title Community Facilities Loans and Grants Federal Grantor U.S. Department of Agriculture Compliance Area Reporting Type of Finding Internal Control – Significant Deficiency Questioned Costs None Reported Repeat Finding Yes Criteria 2 CFR 200.327 establishes that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition Westward Heights submitted each quarterly report to the USDA after the required due dates. Quarterly reports are due by the end of the following month. Cause Westward Heights did not have an internal control policy in place to ensure timely closing of month-end or year-end financials. Effect The lack of policy resulted in multiple reports being submitted to the USDA after the due date. Recommendation We recommend that Westward Heights establish deadlines for accounting personnel to complete month-end and year-end financials. Views of Responsible Officials Management and Westward Heights’ Board of Directors agree with the finding. See Westward Heights’ Corrective Action Plan for Finding 2023-002.

Finding 2023-002

Assistance Listing 10.766 Title Community Facilities Loans and Grants Federal Grantor U.S. Department of Agriculture Compliance Area Reporting Type of Finding Internal Control – Significant Deficiency Questioned Costs None Reported Repeat Finding Yes Criteria 2 CFR 200.327 establishes that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition Westward Heights submitted each quarterly report to the USDA after the required due dates. Quarterly reports are due by the end of the following month. Cause Westward Heights did not have an internal control policy in place to ensure timely closing of month-end or year-end financials. Effect The lack of policy resulted in multiple reports being submitted to the USDA after the due date. Recommendation We recommend that Westward Heights establish deadlines for accounting personnel to complete month-end and year-end financials. Views of Responsible Officials Management and Westward Heights’ Board of Directors agree with the finding. See Westward Heights’ Corrective Action Plan for Finding 2023-002.