FAC Explorer

Audit 335419

FY End
2023-12-31
Total Expended
$2.53M
Findings
4
Programs
2
Organization: Powder House Pass Community Improvement District (SD)
Year: 2023 Accepted: 2025-01-02
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517454 2023-001 Material Weakness - L
517455 2023-004 Significant Deficiency - BCIL
1093896 2023-001 Material Weakness - L
1093897 2023-004 Significant Deficiency - BCIL

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $2.19M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $337,500 - 0

Contacts

Name Title Type
EHK2BW1WWPQ9 Jay Headley Auditee
6054441623 Traci Hanson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation and Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District 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 operatons of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost of principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District 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 District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District 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 operatons of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost of principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding No. 2023-001: Financial Statement and Schedule of Expenditures of Federal Awards Preparation Federal Program Affected: Capitalization Grants for Clean Water State Revolving Funds (ALN 66.458) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for us to do this with districts of your size. Additionally, we prepared the Schedule of Expenditures of Federal Awards (SEFA). Criteria and Effect: It is our responsibility to inform the Board of Supervisors that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding #2022-001. Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy, we have answered any questions they might have, and we have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in your statements. We are satisfied the appropriate steps have been taken to provide the District with the completed financial statements. It is the responsibility of management and the District Board of Supervisors to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: See District’s Corrective Action Plan.
Finding 2023-004
Finding No. 2023-004: Uniform Guidance Requirements Federal Program Affected: Capitalization Grants for Clean Water State Revolving Funds (ALN 66.458) Compliance Requirement: Allowable Costs/Cost Principles, Cash Management, Procurement, Reporting Questioned Costs: None Condition and Cause: The District does not have written policies for allowable costs/cost principles. The District did not submit the data collection form within nine months of year-end. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies for allowable costs/cost principles. Not properly maintaining such policies leads to noncompliance and potential unallowable costs. The District properly planned to complete the data collection form timely but accounting activity unrelated to the compliance audit prevented timely filing. Repeat Finding from Prior Year: No. Recommendation: The District should create written policies for allowable costs/cost principles. No expected future concerns with filing date collection form timely. Response/Corrective Action Plan: See District’s Corrective Action Plan.
Finding 2023-001
Finding No. 2023-001: Financial Statement and Schedule of Expenditures of Federal Awards Preparation Federal Program Affected: Capitalization Grants for Clean Water State Revolving Funds (ALN 66.458) Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for us to do this with districts of your size. Additionally, we prepared the Schedule of Expenditures of Federal Awards (SEFA). Criteria and Effect: It is our responsibility to inform the Board of Supervisors that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding #2022-001. Recommendation: We have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy, we have answered any questions they might have, and we have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in your statements. We are satisfied the appropriate steps have been taken to provide the District with the completed financial statements. It is the responsibility of management and the District Board of Supervisors to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: See District’s Corrective Action Plan.
Finding 2023-004
Finding No. 2023-004: Uniform Guidance Requirements Federal Program Affected: Capitalization Grants for Clean Water State Revolving Funds (ALN 66.458) Compliance Requirement: Allowable Costs/Cost Principles, Cash Management, Procurement, Reporting Questioned Costs: None Condition and Cause: The District does not have written policies for allowable costs/cost principles. The District did not submit the data collection form within nine months of year-end. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies for allowable costs/cost principles. Not properly maintaining such policies leads to noncompliance and potential unallowable costs. The District properly planned to complete the data collection form timely but accounting activity unrelated to the compliance audit prevented timely filing. Repeat Finding from Prior Year: No. Recommendation: The District should create written policies for allowable costs/cost principles. No expected future concerns with filing date collection form timely. Response/Corrective Action Plan: See District’s Corrective Action Plan.