Audit 329400

FY End

2024-02-29

Total Expended

$1.88M

Findings

2

Programs

1

Organization: Delano-Earlimart Irrigation District (CA)

Year: 2024 Accepted: 2024-11-21

Auditor: Cuttone & Mastro Certified Public Accountants

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
509731	2024-002	-	-	L
1086173	2024-002	-	-	L

ALN	Program	Spent	Major	Findings
15.514	Reclamation States Emergency Drought Relief	$1.88M	Yes	1

Contacts

Name	Title	Type
LKKCK3L3UJX3	Eric Quinley	Auditee
6617252526	Joseph Mastro	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The expenditures for the program are reported in the schedule of expenditures of federal awards identify the federal funds received directly from the U.S. Department of Interior. No awards are received from pass-through entities De Minimis Rate Used: N Rate Explanation: No indirect costs are charged to the programs and therefore the 10% de minimis indirect cost rate was not used. The accompanying schedule of expenditures of federal awards includes the federal activity of Delano-Earlimart Irrigation District (The District) under programs of the federal government for the year ended February 29, 2024. 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. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The expenditures for the program are reported in the schedule of expenditures of federal awards identify the federal funds received directly from the U.S. Department of Interior. No awards are received from pass-through entities De Minimis Rate Used: N Rate Explanation: No indirect costs are charged to the programs and therefore the 10% de minimis indirect cost rate was not used. Basis of Accounting - Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The expenditures for the program are reported in the schedule of expenditures of federal awards identify the federal funds received directly from the U.S. Department of Interior. No awards are received from pass-through entities. Matching Costs - Matching costs, the nonfederal share of certain program costs, are not included in the schedule. Indirect Cost Rate - The 10 percent de minimis indirect cost rate allowed under the Uniform Guidance is not used.

Finding Details

Finding 2024-002

Reporting Deficiency in internal controls over reporting and noncompliance U.S. Department of Interior; Reclamation States Emergency Drought Relief. CFDA No. 15.514 Questioned Cost: Not applicable How the Questioned Cost was Computed: Not applicable Criteria: The District is required to file a Federal Financial Report (SF-425) semi-annually detailing federal share and recipient share of expenditures that occurred during the reporting period. Condition: We identified an error in the Federal Financial Report for the reporting period ending March 31, 2023. Federal share of expenditures totaling $488,230 and recipient share of expenditures totaling $508,158 were paid during the reporting period but were omitted from the report. These expenditures were included in the subsequent filing for the period ending September 30, 2023. Cause: Internal controls over the preparation of the Federal Financial Report (SF-425) were not properly designed to identify which expenditures were paid during which reporting period. Effect: None Recommendation: We recommend improving the reconciliation of federal financial reports with supporting accounting records process. View of Responsible Officials: Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2024-002

Reporting Deficiency in internal controls over reporting and noncompliance U.S. Department of Interior; Reclamation States Emergency Drought Relief. CFDA No. 15.514 Questioned Cost: Not applicable How the Questioned Cost was Computed: Not applicable Criteria: The District is required to file a Federal Financial Report (SF-425) semi-annually detailing federal share and recipient share of expenditures that occurred during the reporting period. Condition: We identified an error in the Federal Financial Report for the reporting period ending March 31, 2023. Federal share of expenditures totaling $488,230 and recipient share of expenditures totaling $508,158 were paid during the reporting period but were omitted from the report. These expenditures were included in the subsequent filing for the period ending September 30, 2023. Cause: Internal controls over the preparation of the Federal Financial Report (SF-425) were not properly designed to identify which expenditures were paid during which reporting period. Effect: None Recommendation: We recommend improving the reconciliation of federal financial reports with supporting accounting records process. View of Responsible Officials: Management agrees with the finding and has provided the accompanying corrective action plan.