FAC Explorer

Audit 349825

FY End
2024-06-30
Total Expended
$857,550
Findings
6
Programs
3
Organization: Wyoming Energy Authority (WY)
Year: 2024 Accepted: 2025-03-28
Auditor: McGee Hearne & Paiz LLP D/b/a Mhp Assurance Services LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
539136 2024-001 Significant Deficiency Yes P
539137 2024-001 Significant Deficiency Yes P
539138 2024-001 Significant Deficiency Yes P
1115578 2024-001 Significant Deficiency Yes P
1115579 2024-001 Significant Deficiency Yes P
1115580 2024-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
81.041 State Energy Program $609,846 Yes 1
11.307 Economic Adjustment Assistance $245,454 - 1
10.868 Rural Energy for America Program $2,250 - 1

Contacts

Name Title Type
FF45WXDCMWB8 Jami Blosmo Auditee
3077773521 Brandy Marrou Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Wyoming Energy Authority’s (the Authority) Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained either in Office of Management and Budget Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or Title 2 U.S. Code of Federal Regulations 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 Authority provided no Federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule includes the Federal award activity of the Authority under programs of the Federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Authority.
Title: State Energy Program Revolving Loan Fund (RLF) Accounting Policies: Expenditures reported on the Wyoming Energy Authority’s (the Authority) Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained either in Office of Management and Budget Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or Title 2 U.S. Code of Federal Regulations 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 Authority provided no Federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Authority administers an RLF that was originally funded pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA), the loans of which support activities eligible under the State Energy Program (SEP) (Assistance Listing #81.041). Based on guidance provided by the U.S. Department of Energy (DOE), after the first revolution of funds, the ARRA funds retain their Federal character in perpetuity, but subsequent disbursements of funds (i.e., recycled funds) are to be excluded from the Federal expenditures presented in the Schedule. In addition, the Authority may request to repurpose funds toward another eligible SEP activity upon approval from the DOE. All of the funds held by the Authority in the RLF have been recycled. As of July 1, 2023, the balance of the RLF totaled $1,216,935, inclusive of loans outstanding of $750,000. During the year ended June 30, 2024, no loans were made and the Authority did not repurpose any funds. As of June 30, 2024, the balance of the RLF totaled $1,231,543, inclusive of loans outstanding of $659,499.

Finding Details

Finding 2024-001
2024-001: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Wyoming Energy Authority (the Authority), there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Identification as a repeat finding: Yes; see prior-year finding 2023-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2024-001
2024-001: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Wyoming Energy Authority (the Authority), there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Identification as a repeat finding: Yes; see prior-year finding 2023-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2024-001
2024-001: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Wyoming Energy Authority (the Authority), there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Identification as a repeat finding: Yes; see prior-year finding 2023-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2024-001
2024-001: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Wyoming Energy Authority (the Authority), there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Identification as a repeat finding: Yes; see prior-year finding 2023-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2024-001
2024-001: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Wyoming Energy Authority (the Authority), there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Identification as a repeat finding: Yes; see prior-year finding 2023-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2024-001
2024-001: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Wyoming Energy Authority (the Authority), there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Identification as a repeat finding: Yes; see prior-year finding 2023-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.