FAC Explorer

Audit 323160

FY End
2023-12-31
Total Expended
$4.43M
Findings
4
Programs
1
Organization: The Tule Basin Land and Water Conservation Trust (CA)
Year: 2023 Accepted: 2024-09-30
Auditor: Moss Adams LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500399 2023-001 Significant Deficiency - I
500400 2023-002 Significant Deficiency - A
1076841 2023-001 Significant Deficiency - I
1076842 2023-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
15.517 Fish and Wildlife Coordination Act $4.43M Yes 2

Contacts

Name Title Type
JWHQU7A752H7 Susan Long Auditee
5593620597 Doug Sampson Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Organization and Grant Activity Accounting Policies: Basis of presentation – The accompanying schedule of expenditures of federal awards for the United States Department of the Interior Fish and Wildlife Coordination Act (the Schedule), includes the federal grant activity of the Trust and is reported on the accrual basis of accounting for the year ended December 31, 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 Audit Requirements for Federal Awards (Uniform Guidance). The schedule includes the Fish and Wildlife Coordination Act (Program) award received directly from the United States Department of the Interior. Because the schedule presents only a selected portion of the operations of the Trust, it is not intended and does not present the financial position, results of operations, or cash flows of the Trust. Program costs – The Trust accounts for and reports on the costs of program activities covered under the federal award on a claim-by-claim basis. 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. For the year ended December 31, 2023, program costs were comprised entirely of acquisition of land and preservation of the natural habitat. Subrecipients – The Trust passes-through funds to a subrecipient for the purpose of habitat preservation. Indirect costs – The Trust has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Commitments and contingencies – The Trust receives a portion of its funding from this Program, which is subject to audit. The ultimate determination of amounts received under this Program is generally based upon allowable costs reported to and subject to audit by supporting federal agencies. These exists a contingency to refund any amounts received in excess of allowable costs. Management believes that disallowed costs, if any, will be immaterial to the Schedule of the Program. Management’s evaluation of subsequent events – The Trust has evaluated subsequent events through September 26, 2024, the date upon which the schedule was available for issuance. De Minimis Rate Used: N Rate Explanation: Not applicable The Tule Basin Land and Water Conservation Trust (the Trust) is a California agricultural Trust. The Trust is organized for the purpose to protect and preserve natural habitat, open space, and agriculture for people and wildlife that promotes ground water and environmental sustainability to preserve the farming economy of the southern San Joaquin Valley for future generations.
Title: Note 2 – Significant Accounting Policies Accounting Policies: Basis of presentation – The accompanying schedule of expenditures of federal awards for the United States Department of the Interior Fish and Wildlife Coordination Act (the Schedule), includes the federal grant activity of the Trust and is reported on the accrual basis of accounting for the year ended December 31, 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 Audit Requirements for Federal Awards (Uniform Guidance). The schedule includes the Fish and Wildlife Coordination Act (Program) award received directly from the United States Department of the Interior. Because the schedule presents only a selected portion of the operations of the Trust, it is not intended and does not present the financial position, results of operations, or cash flows of the Trust. Program costs – The Trust accounts for and reports on the costs of program activities covered under the federal award on a claim-by-claim basis. 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. For the year ended December 31, 2023, program costs were comprised entirely of acquisition of land and preservation of the natural habitat. Subrecipients – The Trust passes-through funds to a subrecipient for the purpose of habitat preservation. Indirect costs – The Trust has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Commitments and contingencies – The Trust receives a portion of its funding from this Program, which is subject to audit. The ultimate determination of amounts received under this Program is generally based upon allowable costs reported to and subject to audit by supporting federal agencies. These exists a contingency to refund any amounts received in excess of allowable costs. Management believes that disallowed costs, if any, will be immaterial to the Schedule of the Program. Management’s evaluation of subsequent events – The Trust has evaluated subsequent events through September 26, 2024, the date upon which the schedule was available for issuance. De Minimis Rate Used: N Rate Explanation: Not applicable Basis of presentation – The accompanying schedule of expenditures of federal awards for the United States Department of the Interior Fish and Wildlife Coordination Act (the Schedule), includes the federal grant activity of the Trust and is reported on the accrual basis of accounting for the year ended December 31, 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 Audit Requirements for Federal Awards (Uniform Guidance). The schedule includes the Fish and Wildlife Coordination Act (Program) award received directly from the United States Department of the Interior. Because the schedule presents only a selected portion of the operations of the Trust, it is not intended and does not present the financial position, results of operations, or cash flows of the Trust. Program costs – The Trust accounts for and reports on the costs of program activities covered under the federal award on a claim-by-claim basis. 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. For the year ended December 31, 2023, program costs were comprised entirely of acquisition of land and preservation of the natural habitat. Subrecipients – The Trust passes-through funds to a subrecipient for the purpose of habitat preservation. Indirect costs – The Trust has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Commitments and contingencies – The Trust receives a portion of its funding from this Program, which is subject to audit. The ultimate determination of amounts received under this Program is generally based upon allowable costs reported to and subject to audit by supporting federal agencies. These exists a contingency to refund any amounts received in excess of allowable costs. Management believes that disallowed costs, if any, will be immaterial to the Schedule of the Program. Management’s evaluation of subsequent events – The Trust has evaluated subsequent events through September 26, 2024, the date upon which the schedule was available for issuance.

Finding Details

Finding 2023-001
Compliance finding (Procurement and Suspension and Debarment) and Internal Controls over Compliance (Significant Deficiency over Procurement) Department of the Interior – Fish and Wildlife Coordination Act – Assistance Listing No. 15.517; Grant period: Year Ended December 31, 2023. Criteria – In accordance with 2 CFR 200.320, participants are required to perform an appropriate form of competition in their procurement process.Condition – Management did not perform an appropriate form of competition for a service contracted during the year ending December 31, 2023. The Trust did not solicit written responses from at least three vendors and if no such responses are available, a statement explaining the procurement. Questioned costs – There are known questioned costs of $27,386 representing the reimbursements claimed for the vendor during the audit period. No likely questioned costs are noted. Context – Inspection of procurement documentation showed one out of two vendors subjected to sampling required written responses from at least three vendors, consistent with Code of Federal Regulations; 2 CFR 200.320. Price or rate quotations were not obtained timely, nor formally documented and a formal assessment was not performed. Effect – By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause – Management did not obtain rate quotations from an adequate number of vendors, and did not retain sufficient documentation nor perform a formal assessment to proceed with the contracted services. Repeat finding – First year program has been audited therefore this is not a repeat finding. Recommendation – We recommend management implement a control to ensure sufficient quotes are obtained and documentation is retained during the procurement of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response – Management has implemented and adopted a new procurement policy effective May 2023 regardless of dollar value that will maximize open and free competition and that the Trust shall not engage in procurement practices which may be considered arbitrary or restrictive. Purchases will be reviewed by the Tule Trust Finance Committee to prevent duplication and to ensure that costs are reasonable.
Finding 2023-002
Internal Controls over Compliance (Significant Deficiency in Internal Control over Activities Allowed and Allowed Costs) – Department of the Interior – Fish and Wildlife Coordination Act – Assistance Listing No. 15.517; Grant period: Year Ended December 31, 2023. Criteria – All invoices are reviewed by the Executive Director before being included in a Fund Request. The Executive Director prepares a Fund Request memo with supporting invoices and is reviewed and approved by the CFO. Condition – Internal controls were not followed on all fund requests during the year ended December 31, 2023. In particular, control was not followed in first quarter of 2023. Questioned costs – There are no known questioned costs. Though controls were not followed there were no instances of noncompliance noted. Context – Inspection of supporting documentation noted 3 instances where formal approval of the invoices included in a fund request were not formally approved. All 3 instances were in the first quarter of the year ended December 31, 2023. Effect – Expenditures not allowed to be reimbursed by the federal award could be submitted for claim. Cause – There were no formalized controls in place during the first quarter of the year ended December 31, 2023. Repeat finding – First year program has been audited therefore this is not a repeat finding. Recommendation – We recommend management implement a control to ensure fund requests are formally approved prior to submission of the claim. Management's response – Management established formalized internal controls in the second quarter of 2023, approved by the Board of Directors, with all fund requests approved by the Executive Director and the CFO.
Finding 2023-001
Compliance finding (Procurement and Suspension and Debarment) and Internal Controls over Compliance (Significant Deficiency over Procurement) Department of the Interior – Fish and Wildlife Coordination Act – Assistance Listing No. 15.517; Grant period: Year Ended December 31, 2023. Criteria – In accordance with 2 CFR 200.320, participants are required to perform an appropriate form of competition in their procurement process.Condition – Management did not perform an appropriate form of competition for a service contracted during the year ending December 31, 2023. The Trust did not solicit written responses from at least three vendors and if no such responses are available, a statement explaining the procurement. Questioned costs – There are known questioned costs of $27,386 representing the reimbursements claimed for the vendor during the audit period. No likely questioned costs are noted. Context – Inspection of procurement documentation showed one out of two vendors subjected to sampling required written responses from at least three vendors, consistent with Code of Federal Regulations; 2 CFR 200.320. Price or rate quotations were not obtained timely, nor formally documented and a formal assessment was not performed. Effect – By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause – Management did not obtain rate quotations from an adequate number of vendors, and did not retain sufficient documentation nor perform a formal assessment to proceed with the contracted services. Repeat finding – First year program has been audited therefore this is not a repeat finding. Recommendation – We recommend management implement a control to ensure sufficient quotes are obtained and documentation is retained during the procurement of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response – Management has implemented and adopted a new procurement policy effective May 2023 regardless of dollar value that will maximize open and free competition and that the Trust shall not engage in procurement practices which may be considered arbitrary or restrictive. Purchases will be reviewed by the Tule Trust Finance Committee to prevent duplication and to ensure that costs are reasonable.
Finding 2023-002
Internal Controls over Compliance (Significant Deficiency in Internal Control over Activities Allowed and Allowed Costs) – Department of the Interior – Fish and Wildlife Coordination Act – Assistance Listing No. 15.517; Grant period: Year Ended December 31, 2023. Criteria – All invoices are reviewed by the Executive Director before being included in a Fund Request. The Executive Director prepares a Fund Request memo with supporting invoices and is reviewed and approved by the CFO. Condition – Internal controls were not followed on all fund requests during the year ended December 31, 2023. In particular, control was not followed in first quarter of 2023. Questioned costs – There are no known questioned costs. Though controls were not followed there were no instances of noncompliance noted. Context – Inspection of supporting documentation noted 3 instances where formal approval of the invoices included in a fund request were not formally approved. All 3 instances were in the first quarter of the year ended December 31, 2023. Effect – Expenditures not allowed to be reimbursed by the federal award could be submitted for claim. Cause – There were no formalized controls in place during the first quarter of the year ended December 31, 2023. Repeat finding – First year program has been audited therefore this is not a repeat finding. Recommendation – We recommend management implement a control to ensure fund requests are formally approved prior to submission of the claim. Management's response – Management established formalized internal controls in the second quarter of 2023, approved by the Board of Directors, with all fund requests approved by the Executive Director and the CFO.