FAC Explorer

Audit 347767

FY End
2024-06-30
Total Expended
$2.37M
Findings
2
Programs
2
Organization: Stuart Municipal Utilities (IA)
Year: 2024 Accepted: 2025-03-24
Auditor: Roof Gerdes Erlbacher Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529773 2024-007 Material Weakness - N
1106215 2024-007 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $2.21M Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $153,283 - 0

Contacts

Name Title Type
Q9H2LFM5D7N3 Ashraf Ashour Auditee
5155231455 Steve Gerdes Auditor
No contacts on file

Notes to SEFA

Accounting Policies: EXPENDITURES REPORTED IN THE SCHEDULE ARE REPORTED ON THE BASIS OF CASH RECEIPTS AND DISBURSEMENTS, WHICH IS A BASIS OF ACCOUNTING OTHER THAN U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. 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. De Minimis Rate Used: N Rate Explanation: AUDITEE DID NOT USE THE DE MINIMUS COST RATE

Finding Details

Finding 2024-007
United States Department of Agriculture Loan Agreement Criteria - The provisions of the USDA lan agreement require the Utilities to establish and maintain a reserve account, a sinking account and a short-lived asset account. Condition - A sinking account, rexerve account and a short-lived asset account were not established and maintained by the Utilities. Cause - The Utilites did not adequately review the USDA laon agreement requirements. Effect - The Utilities is not in compliance with the provisions of the USDA loan agreement. Recommendation - The Utilities should ensure complianc with the provisions of the USDA loan agreement. Specifically, the USDA should establish and maintain a simking account, rexerve account and a short-lived asset account in accordance with the USDA loan agreement. Response and Corrective Action Planned - We will attempt to implement the various aspects of this recommendation. Conclusion - Response acknowledged.
Finding 2024-007
United States Department of Agriculture Loan Agreement Criteria - The provisions of the USDA lan agreement require the Utilities to establish and maintain a reserve account, a sinking account and a short-lived asset account. Condition - A sinking account, rexerve account and a short-lived asset account were not established and maintained by the Utilities. Cause - The Utilites did not adequately review the USDA laon agreement requirements. Effect - The Utilities is not in compliance with the provisions of the USDA loan agreement. Recommendation - The Utilities should ensure complianc with the provisions of the USDA loan agreement. Specifically, the USDA should establish and maintain a simking account, rexerve account and a short-lived asset account in accordance with the USDA loan agreement. Response and Corrective Action Planned - We will attempt to implement the various aspects of this recommendation. Conclusion - Response acknowledged.