FAC Explorer

Audit 322395

FY End
2023-06-30
Total Expended
$5.87M
Findings
8
Programs
1
Organization: Tongue River Valley Joint Powers Board (WY)
Year: 2023 Accepted: 2024-09-30
Auditor: Carver Florek & James Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499538 2023-001 Material Weakness Yes B
499539 2023-002 - Yes N
499540 2023-003 Significant Deficiency - I
499541 2023-004 Material Weakness - L
1075980 2023-001 Material Weakness Yes B
1075981 2023-002 - Yes N
1075982 2023-003 Significant Deficiency - I
1075983 2023-004 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $5.87M Yes 4

Contacts

Name Title Type
JZ1GNZLT71B3 Peter Clark Auditee
3077513163 Jason Lund Auditor
No contacts on file

Notes to SEFA

Title: 1. BASIS FOR PRESENTATION Accounting Policies: The Board is an Enterprise fund and is accounted for in a manner similar to private business enterprises using the economic resources measurement focus and the accrual basis of accounting. Under this method, all assets and liabilities associated with the operation of the Board are included in the statement of net position. Revenues and recognized in the period in which they were earned and expenses are recognized in the period in which the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Board does not utilize the 10 percent de minimis indrect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal awards activity of under programs of the federal government for the year ended June 30, 2023. 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 the Audit Requirement for Federal Awards (Uniform Guidance). All federal financial awards received directly from federal agencies as well as federal financial awards passed through from other governmental agencies are included in the schedule. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Board.
Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The Board is an Enterprise fund and is accounted for in a manner similar to private business enterprises using the economic resources measurement focus and the accrual basis of accounting. Under this method, all assets and liabilities associated with the operation of the Board are included in the statement of net position. Revenues and recognized in the period in which they were earned and expenses are recognized in the period in which the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Board does not utilize the 10 percent de minimis indrect cost rate as allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the same basis of accounting used in preparation of the financial statements from which the information was derived as described in Note 1 to the District's basic financial statements. 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.
Title: 3. INDIRECT COST RATES Accounting Policies: The Board is an Enterprise fund and is accounted for in a manner similar to private business enterprises using the economic resources measurement focus and the accrual basis of accounting. Under this method, all assets and liabilities associated with the operation of the Board are included in the statement of net position. Revenues and recognized in the period in which they were earned and expenses are recognized in the period in which the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Board does not utilize the 10 percent de minimis indrect cost rate as allowed under the Uniform Guidance. The Board does not utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 4. SUBRECIPIENTS Accounting Policies: The Board is an Enterprise fund and is accounted for in a manner similar to private business enterprises using the economic resources measurement focus and the accrual basis of accounting. Under this method, all assets and liabilities associated with the operation of the Board are included in the statement of net position. Revenues and recognized in the period in which they were earned and expenses are recognized in the period in which the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Board does not utilize the 10 percent de minimis indrect cost rate as allowed under the Uniform Guidance. There were no awards to subrecipients.
Title: 5. DELINQUENT LOAN DISCLOSURE Accounting Policies: The Board is an Enterprise fund and is accounted for in a manner similar to private business enterprises using the economic resources measurement focus and the accrual basis of accounting. Under this method, all assets and liabilities associated with the operation of the Board are included in the statement of net position. Revenues and recognized in the period in which they were earned and expenses are recognized in the period in which the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Board does not utilize the 10 percent de minimis indrect cost rate as allowed under the Uniform Guidance. The Tongue River Valley Joint Powers Board has a current Workout Agreement with the USDA Rural Housing Service Community Programs. OMB No. 0575-0066 was signed March 27, 2024 between the two entities due to the default of the USDA loans. The agreement has provisions to review monthly financial information and will work with State Land Investment Boards to come up with a plan. The USDA has a right to declare the whole balances of these loans immediately due and payable. The Tongue River Valley Joint Powers Board is required to submit monthly financial information for all transactions, as long as this requirement is met, the USDA is not exercising its right of full assignment of the loan amounts. The mutual agreement is in the best interests of both parties to review different avenues, and a future plan of action will be determined.

Finding Details

Finding 2023-001
2023-001 (repeat of 2022-002) Inadequate Supporting Documentation Material Weakness Criteria Requests for reimbursement must include invoices to verify amounts requested, and review/approval must be documented. Condition The Board did not provide fully executed supporting documentation for 4 transactions, additionally the detail provided to support what had been purchased did not contain the expected detail for a thorough review. We recognize that there are compensating controls given the oversight exercised by the USDA, however, based on the supporting documentation we received, we were unable to verify that such oversight was operating as intended. Cause The Board is staffed by 5 volunteers and has no dedicated office space. It is challenging for the volunteers to maintain complete documentation under these conditions. Effect As a result, reimbursement requests may be incomplete, therefore, the Board may not be reimbursed for all program costs. Recommendation The Board should retain all documentation pertaining to reimbursements. Views of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Finding 2023-002
2023-002 (repeat of 2022-003) Loan Reserve Requirement Non-Compliance Criteria In accordance with USDA loan covenants, the Board is required to set aside an amount equal to one-tenth of one yearly payment until one average annual loan installment is reached. Condition & Cause As a result of significant financial difficulties, the Board has been unable to meet the requirement to fund the reserve account. Effect As a result, the Board is not in compliance with the reserve requirement. Recommendation We recognize that it may not be possible for the Board to meet this requirement. View of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Finding 2023-003
2023-003 Uniform Guidance Written Policies and Procedures Significant Deficiency in Internal Control over Compliance Criteria Uniform Guidance 2 CFR Part 180 requires written policies and procedures related to Internal controls be written regarding SAMS. gov contractor verification of debarment and suspension. In addition, 2 CFR Part 200.326 Contract Provisions that pay over $2,000 in labor wages are required to be in compliant with Davis Bacon Labor Laws. This requirement contains written achnowledgement of certified wage rate payrolls weekly and contractual language of the wage rate certification of payroll in the contract between the contractor and the Joint Powers Board. Cause Tongue River Valley Joint Powers Board do not have written updated policies implementing Uniform Guidance contractual and internal control procedures. They operate under the WY Statues - which covers entities within Wyoming jurisdiction, however the Joint Powers Board also has Federal requirements due to the Federal USDA loan. Condition Without lack of written policies, the Joint Powers Board could enter transactions with debarred or suspended vendors, and not pay adequate Federal wages to labors. Effect The Joint Powers Board must use funds efficiently and effectively and in accordance with Federal OMB Uniform Guidance to prevent mismanagement of projects funded by Federal awards. Questioned Costs Less than $25,000 Recommendation We recommend that the Joint Power Board update their written internal control policies to contain all Uniform Guidance regulations, relating to Sams. gov debarment and suspension and Davis Bacon Wage Requirements. It is recommended that these be policies and internal controls be reviewed and aligned with the Federal Award contractual agreeements on a routine basis. View of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Finding 2023-004
2023-004 Audit Report Submission to the Federal Government Material Weakness in Internal Control over Compliance Criteria Single Audits, 2 CFR Part 200 Subpart F 200,512(a)(1)- Report Submission, are required to be submitted within the earlier of 30 days of the receipt of the auditor's report or nine months after the end of the audit period. Condition The Joint Powers Board did not submit the audit report in the nine-month time frame as required by the Uniform Guidance. Cause The Joint Powers Board has limitied resources to perform timely submisssions to contract with a independent CPA to perform the audit. The audit has started late, and not reasonable to complete the Federal Clearinghouse deadline. Effect Noncompliance with the federal requirements to submit an auidt report nine-months after year-end. Recommendation We recommend that the Joint Powers Board submit audit reports in compliance with 2 CFR 200.512(a)(1). Views of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Finding 2023-001
2023-001 (repeat of 2022-002) Inadequate Supporting Documentation Material Weakness Criteria Requests for reimbursement must include invoices to verify amounts requested, and review/approval must be documented. Condition The Board did not provide fully executed supporting documentation for 4 transactions, additionally the detail provided to support what had been purchased did not contain the expected detail for a thorough review. We recognize that there are compensating controls given the oversight exercised by the USDA, however, based on the supporting documentation we received, we were unable to verify that such oversight was operating as intended. Cause The Board is staffed by 5 volunteers and has no dedicated office space. It is challenging for the volunteers to maintain complete documentation under these conditions. Effect As a result, reimbursement requests may be incomplete, therefore, the Board may not be reimbursed for all program costs. Recommendation The Board should retain all documentation pertaining to reimbursements. Views of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Finding 2023-002
2023-002 (repeat of 2022-003) Loan Reserve Requirement Non-Compliance Criteria In accordance with USDA loan covenants, the Board is required to set aside an amount equal to one-tenth of one yearly payment until one average annual loan installment is reached. Condition & Cause As a result of significant financial difficulties, the Board has been unable to meet the requirement to fund the reserve account. Effect As a result, the Board is not in compliance with the reserve requirement. Recommendation We recognize that it may not be possible for the Board to meet this requirement. View of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Finding 2023-003
2023-003 Uniform Guidance Written Policies and Procedures Significant Deficiency in Internal Control over Compliance Criteria Uniform Guidance 2 CFR Part 180 requires written policies and procedures related to Internal controls be written regarding SAMS. gov contractor verification of debarment and suspension. In addition, 2 CFR Part 200.326 Contract Provisions that pay over $2,000 in labor wages are required to be in compliant with Davis Bacon Labor Laws. This requirement contains written achnowledgement of certified wage rate payrolls weekly and contractual language of the wage rate certification of payroll in the contract between the contractor and the Joint Powers Board. Cause Tongue River Valley Joint Powers Board do not have written updated policies implementing Uniform Guidance contractual and internal control procedures. They operate under the WY Statues - which covers entities within Wyoming jurisdiction, however the Joint Powers Board also has Federal requirements due to the Federal USDA loan. Condition Without lack of written policies, the Joint Powers Board could enter transactions with debarred or suspended vendors, and not pay adequate Federal wages to labors. Effect The Joint Powers Board must use funds efficiently and effectively and in accordance with Federal OMB Uniform Guidance to prevent mismanagement of projects funded by Federal awards. Questioned Costs Less than $25,000 Recommendation We recommend that the Joint Power Board update their written internal control policies to contain all Uniform Guidance regulations, relating to Sams. gov debarment and suspension and Davis Bacon Wage Requirements. It is recommended that these be policies and internal controls be reviewed and aligned with the Federal Award contractual agreeements on a routine basis. View of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.
Finding 2023-004
2023-004 Audit Report Submission to the Federal Government Material Weakness in Internal Control over Compliance Criteria Single Audits, 2 CFR Part 200 Subpart F 200,512(a)(1)- Report Submission, are required to be submitted within the earlier of 30 days of the receipt of the auditor's report or nine months after the end of the audit period. Condition The Joint Powers Board did not submit the audit report in the nine-month time frame as required by the Uniform Guidance. Cause The Joint Powers Board has limitied resources to perform timely submisssions to contract with a independent CPA to perform the audit. The audit has started late, and not reasonable to complete the Federal Clearinghouse deadline. Effect Noncompliance with the federal requirements to submit an auidt report nine-months after year-end. Recommendation We recommend that the Joint Powers Board submit audit reports in compliance with 2 CFR 200.512(a)(1). Views of Responsible Officials and Planned Corrective Actions Please see the last page of this report for the written response from the Board.