FAC Explorer

Audit 334090

FY End
2023-12-31
Total Expended
$1.50M
Findings
4
Programs
1
Organization: Blackbelt Unincorporated Wastewater Program (AL)
Year: 2023 Accepted: 2024-12-20
Auditor: Aldridge Borden & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516270 2023-001 Significant Deficiency - I
516271 2023-002 Significant Deficiency - L
1092712 2023-001 Significant Deficiency - I
1092713 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.50M Yes 2

Contacts

Name Title Type
CTGEZMEUJ1M8 Sherry Bradley Auditee
3343246430 Amanda Hines Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Reporting Entity Accounting Policies: Expenditures reported on the schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. This method is consistent with the preparation of the Program's financial statements. De Minimis Rate Used: N Rate Explanation: The Program has elected not to use the 10% de minimis cost rate allowed under Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Program under programs of the federal government 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). Because the Schedule presents only a selected portion of the operations of the Program, it is not intended to and does not present the financial position, activities, or cash flows of the Program.
Title: Note 2 - Basis of Accounting Accounting Policies: Expenditures reported on the schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. This method is consistent with the preparation of the Program's financial statements. De Minimis Rate Used: N Rate Explanation: The Program has elected not to use the 10% de minimis cost rate allowed under Uniform Guidance Expenditures reported on the schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. This method is consistent with the preparation of the Program's financial statements.
Title: Note 3 - Indirect Cost Rates Accounting Policies: Expenditures reported on the schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. This method is consistent with the preparation of the Program's financial statements. De Minimis Rate Used: N Rate Explanation: The Program has elected not to use the 10% de minimis cost rate allowed under Uniform Guidance The Program has elected not to use the 10% de minimis cost rate allowed under Uniform Guidance

Finding Details

Finding 2023-001
Criteria An entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must conform to the procurement standards identified in CFR 200.317 through 200.327. Condition The Program made two large purchases using grant funds exceeding the micro-purchase threshold without obtaining price or rate quotations from an adequate number of qualified sources. Cause The Program was not fully educated on procurement policies when it came to grant funds, so they were not aware that bids or price comparisons were necessary for the purchases. Effect Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in cost with other vendors. Recommendation We recommend management adhere to the Federal, State, and local regulations for all procurements using Federally sourced funds. Management's Response Management agrees with our recommendation and finding and will work to adhere to all applicable procurement policies.
Finding 2023-002
Criteria An entity expending more than $750,000 of Federal funds during a year are required to obtain and submit a Single Audit to the Federal Clearinghouse either 30 days after issuance of audit report ot 9 months after the entity's year end. Condition The Program failed to submit the required Single Audit reporting package for the year ended December 31, 2023 by the required deadline of September 30, 2024. Cause The Program struggled to find a qualified CPA firm in a reasonable time frame to complete the Single Audit. Effect Grant funding could be reduced or withheld altogether due to not submitting the reporting package by the required deadline. Recommendation We recommend management develop internal control procedures to ensure required reporting is submitted on time. Management's Response Management agrees with the finding and will implement our recommendation.
Finding 2023-001
Criteria An entity must have and use documented procurement policies consistent with Federal, State, and local laws, regulations, and standards for the acquisition of property or services required under a Federal award or subaward. The procedures must conform to the procurement standards identified in CFR 200.317 through 200.327. Condition The Program made two large purchases using grant funds exceeding the micro-purchase threshold without obtaining price or rate quotations from an adequate number of qualified sources. Cause The Program was not fully educated on procurement policies when it came to grant funds, so they were not aware that bids or price comparisons were necessary for the purchases. Effect Failure to follow appropriate procurement procedures could result in excess procurement costs being disallowed or subject the entity to possible claims. It was determined that the items procured were reasonable in cost with other vendors. Recommendation We recommend management adhere to the Federal, State, and local regulations for all procurements using Federally sourced funds. Management's Response Management agrees with our recommendation and finding and will work to adhere to all applicable procurement policies.
Finding 2023-002
Criteria An entity expending more than $750,000 of Federal funds during a year are required to obtain and submit a Single Audit to the Federal Clearinghouse either 30 days after issuance of audit report ot 9 months after the entity's year end. Condition The Program failed to submit the required Single Audit reporting package for the year ended December 31, 2023 by the required deadline of September 30, 2024. Cause The Program struggled to find a qualified CPA firm in a reasonable time frame to complete the Single Audit. Effect Grant funding could be reduced or withheld altogether due to not submitting the reporting package by the required deadline. Recommendation We recommend management develop internal control procedures to ensure required reporting is submitted on time. Management's Response Management agrees with the finding and will implement our recommendation.