FAC Explorer

Audit 352194

FY End
2024-06-30
Total Expended
$7.83M
Findings
4
Programs
3
Organization: Des Moines Area Metropolitan Planning Organization (IA)
Year: 2024 Accepted: 2025-04-01
Auditor: Denman CPA LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553613 2024-001 Material Weakness Yes A
553614 2024-002 Material Weakness Yes A
1130055 2024-001 Material Weakness Yes A
1130056 2024-002 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
20.933 National Infrastructure Investments $6.56M Yes 2
20.205 Highway Planning and Construction $976,138 Yes 0
20.939 Safe Streets and Roads for All $301,317 - 0

Contacts

Name Title Type
DEJPWW7JLFQ7 Dylan Mullenix Auditee
5153340075 David Ellis Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: Expenditures reported in 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. The Organization has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Organization 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 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 Organization it is not intended to and does not present the financial position, change in net position, or cash flows of the Organization.
Title: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in 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. The Organization has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. Expenditures reported in 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. The Organization has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
2024-001 FINANCIAL REPORTING Prior Year Finding Number 2023-002 Criteria A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements of the financial statement of a timely basis. Properly designed policies and procedures and implementation of the policies and procedures are an integral part of ensuring the reliability and accuracy of the Organization’s financial statements. Condition Significant year-end adjusting entries were not properly recorded in the Organization’s financial statements primarily related to the receivables and payables for the Water Trails Project. Adjustments were subsequently made by the Organization to properly include these amounts in the financial statements. Cause Reporting financial data reliably in accordance with generally accepted accounting principles requires management to possess sufficient knowledge and training to select and apply accounting principles and prepare financial statements including footnote disclosures. Management presently lacks the proper procedures to identify year-end accruals for receivables and payables. Effect Lack of proper procedures for preparing financial statements resulted in Organization employees not detecting the errors in the normal course of performing their assigned functions. As a result, material adjustments to the Organization’s financial statements were necessary. Recommendation Management should continue to work on year-end closing procedures to properly identify receivables and payables at June 30. The Organization should continue to utilize accounting staff to assist with the financial accounting system entries and bank reconciliations. Response We will implement financial reporting procedures for the federal program to be consistent with our reporting of other federal awards and to ensure accounting system entries are posted timely. Conclusion Response accepted.
Finding 2024-002
2024-002 FINANCIAL REPORTING Prior Year Finding Number 2023-004 Assistance Listing Number 20.933 – National Infrastructure Investments See page 44, Finding 2024-001 for details regarding this finding.
Finding 2024-001
2024-001 FINANCIAL REPORTING Prior Year Finding Number 2023-002 Criteria A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements of the financial statement of a timely basis. Properly designed policies and procedures and implementation of the policies and procedures are an integral part of ensuring the reliability and accuracy of the Organization’s financial statements. Condition Significant year-end adjusting entries were not properly recorded in the Organization’s financial statements primarily related to the receivables and payables for the Water Trails Project. Adjustments were subsequently made by the Organization to properly include these amounts in the financial statements. Cause Reporting financial data reliably in accordance with generally accepted accounting principles requires management to possess sufficient knowledge and training to select and apply accounting principles and prepare financial statements including footnote disclosures. Management presently lacks the proper procedures to identify year-end accruals for receivables and payables. Effect Lack of proper procedures for preparing financial statements resulted in Organization employees not detecting the errors in the normal course of performing their assigned functions. As a result, material adjustments to the Organization’s financial statements were necessary. Recommendation Management should continue to work on year-end closing procedures to properly identify receivables and payables at June 30. The Organization should continue to utilize accounting staff to assist with the financial accounting system entries and bank reconciliations. Response We will implement financial reporting procedures for the federal program to be consistent with our reporting of other federal awards and to ensure accounting system entries are posted timely. Conclusion Response accepted.
Finding 2024-002
2024-002 FINANCIAL REPORTING Prior Year Finding Number 2023-004 Assistance Listing Number 20.933 – National Infrastructure Investments See page 44, Finding 2024-001 for details regarding this finding.