Audit 330638

FY End
2024-06-30
Total Expended
$2.22M
Findings
4
Programs
5
Year: 2024 Accepted: 2024-12-03
Auditor: Solutions CPAS

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
512874 2024-004 Material Weakness - B
512875 2024-005 Significant Deficiency - L
1089316 2024-004 Material Weakness - B
1089317 2024-005 Significant Deficiency - L

Contacts

Name Title Type
WBN7MFNQMCJ3 Pat Holliday Auditee
5415750135 Anna Bass Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Grant SWCD has a NICRA rate of 15.79% The SEFA includes the federal grant activity for the district and is presented on the modified cash basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements.
Title: Federal financial assistance Accounting Policies: The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Grant SWCD has a NICRA rate of 15.79% Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Accordingly, non-monetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. The district has entered into several contracts that have been determined to be a contract that have been excluded from the SEFA in accordance with these requirements.
Title: Major programs Accounting Policies: The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Grant SWCD has a NICRA rate of 15.79% The Uniform Guidance establishes criteria to be used in defining major federal financial assistance programs. Major programs for the district are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes.
Title: Reporting entity Accounting Policies: The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Grant SWCD has a NICRA rate of 15.79% The reporting entity is fully described in the notes to financial statements. The schedule includes all federal programs administered by the district for the year ended June 30, 2024.
Title: Indirect Cost Rate Accounting Policies: The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Grant SWCD has a NICRA rate of 15.79% The district has not elected to use the 10% de minimis indirect cost rate.

Finding Details

Condition and Context: Internal controls failed to prevent, detect, or correct noncompliance. During testing, the following were identified: The district charged the federal program chemical inventory priced above cost. Certain employee timecards had no supporting documentation or rational behind the allocation of specific activities and did not appropriately document time charged directly to the program. The indirect cost rate agreed to within the grant agreement was not used consistently across the indirect cost pool and indirect costs were charged to the program as direct costs.
During testing, it was identified that an SF-425 for the grant 23-DG-11062752- 069 submitted contained incorrect allocations of indirect and direct costs.
Condition and Context: Internal controls failed to prevent, detect, or correct noncompliance. During testing, the following were identified: The district charged the federal program chemical inventory priced above cost. Certain employee timecards had no supporting documentation or rational behind the allocation of specific activities and did not appropriately document time charged directly to the program. The indirect cost rate agreed to within the grant agreement was not used consistently across the indirect cost pool and indirect costs were charged to the program as direct costs.
During testing, it was identified that an SF-425 for the grant 23-DG-11062752- 069 submitted contained incorrect allocations of indirect and direct costs.