Audit 352447

FY End
2022-12-31
Total Expended
$3.23M
Findings
6
Programs
7
Year: 2022 Accepted: 2025-04-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
553806 2022-001 Material Weakness - L
553807 2022-002 Material Weakness - L
553808 2022-003 Material Weakness - L
1130248 2022-001 Material Weakness - L
1130249 2022-002 Material Weakness - L
1130250 2022-003 Material Weakness - L

Contacts

Name Title Type
C1GTBVNZH234 Stephen M McCoy Auditee
8314556478 Samantha Vickery Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF ACCOUNTING: Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Organization utilizes indirect cost rates that are included in their cost allocation plan which is reviewed and approved by the board of directors and is allowed under the grants. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is the same basis used for the financial statements of the Organization. Such expenditures are recognized following the cost principles contained in Office of Management and Budget (OMB) Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: NOTE 2 – PROGRAM COSTS: Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Organization utilizes indirect cost rates that are included in their cost allocation plan which is reviewed and approved by the board of directors and is allowed under the grants. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Rural Community Development Resources (the Organization) under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of OMB Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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, changes in net assets, or cash flows of the Organization.
Title: NOTE 3 – REVOLVING LOAN FUNDS: Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Organization utilizes indirect cost rates that are included in their cost allocation plan which is reviewed and approved by the board of directors and is allowed under the grants. EDA revolving loan fund – Expenditures of EDA revolving loan funds are based on the following calculation:
Title: NOTE 3 – REVOLVING LOAN FUNDS: Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Organization utilizes indirect cost rates that are included in their cost allocation plan which is reviewed and approved by the board of directors and is allowed under the grants. DescriptionAmountEDA loans outstanding at December 31, 2022 $ 497,129 EDA loan funds on hand in bank accounts at December 31, 2022 432,536 Administrative expenses for the year ended December 31, 2022 48,654 Total 978,319 Federal participation rate78%Expenditures of federal funds $ 763,089
Title: NOTE 3 – REVOLVING LOAN FUNDS: Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Organization utilizes indirect cost rates that are included in their cost allocation plan which is reviewed and approved by the board of directors and is allowed under the grants. Other revolving loan funds – Expenditures from other revolving loan funds are reported at the value of new loans made to borrowers during the year and any allowable expenses covered using program income.
Title: NOTE 4 – INDIRECT COST RATE: Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Organization utilizes indirect cost rates that are included in their cost allocation plan which is reviewed and approved by the board of directors and is allowed under the grants. The Organization has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the Organization utilizes indirect cost rates that are included in their cost allocation plan which is reviewed and approved by the board of directors and is allowed under the grants.

Finding Details

Criteria: Submission of data collection form to the Federal Audit Clearinghouse for 11.307 US Department of Commerce, Economic Development Administration Grant, 21.024 US Department of Treasury, Community Development Financial Institutions Rapid Response Grant, and 93.570 US Department of Health and Human Services, Office of Community Services Grant by nine months after year end. Condition: The September 30, 2023, deadline for the data collection form to be filed was not met. Cause: Due to a shortage of staffing and lack of follow-up on contracted accounting services, the Organization was not able to respond to audit document requests in a timely manner. Effect: Noncompliance with the reporting requirement of the granting agencies. Recommendation: Reevaluate reporting practices and carefully monitor due dates and submissions related to federal awards. Additionally, reallocate current staff to ensure important tasks take priority and incorporate verification procedures for critical tasks.
Criteria: Filing of the Forms ED-209 required for 11.307 US Department of Commerce, Economic Development Administration Grants for each semi-annual performance period ending March 31, 2022, and September 30, 2022. Condition: The semi-annual required reports were not filed. Cause: Due to a shortage of staffing and oversight, the Organization did not complete reports required by grant/granting agency. Effect: Noncompliance with the reporting requirement of the granting agency.
Criteria: Filing the annual required CDFI Certification and reports, for 21.024 US Department of Treasury, Community Development Financial Institutions Rapid Response Grant covering the performance period June 15, 2021, through December 31, 2022, by their appropriate due dates. Condition: Financial statements for the years ended December 31, 2021 and 2022, were due June 30, 2022 and 2023, respectively. Performance Progress Reports, Uses of Award Reports, and documentation of annual CDFI Certification for the years ended December 31, 2021 and 2022, were due March 31, 2022 and 2023, respectively. None of the above reports were filed. Cause: Due to a shortage of staffing and oversight, the Organization did not complete reports required by grant/granting agency. Effect: Noncompliance with the reporting requirements of the granting agency.
Criteria: Submission of data collection form to the Federal Audit Clearinghouse for 11.307 US Department of Commerce, Economic Development Administration Grant, 21.024 US Department of Treasury, Community Development Financial Institutions Rapid Response Grant, and 93.570 US Department of Health and Human Services, Office of Community Services Grant by nine months after year end. Condition: The September 30, 2023, deadline for the data collection form to be filed was not met. Cause: Due to a shortage of staffing and lack of follow-up on contracted accounting services, the Organization was not able to respond to audit document requests in a timely manner. Effect: Noncompliance with the reporting requirement of the granting agencies. Recommendation: Reevaluate reporting practices and carefully monitor due dates and submissions related to federal awards. Additionally, reallocate current staff to ensure important tasks take priority and incorporate verification procedures for critical tasks.
Criteria: Filing of the Forms ED-209 required for 11.307 US Department of Commerce, Economic Development Administration Grants for each semi-annual performance period ending March 31, 2022, and September 30, 2022. Condition: The semi-annual required reports were not filed. Cause: Due to a shortage of staffing and oversight, the Organization did not complete reports required by grant/granting agency. Effect: Noncompliance with the reporting requirement of the granting agency.
Criteria: Filing the annual required CDFI Certification and reports, for 21.024 US Department of Treasury, Community Development Financial Institutions Rapid Response Grant covering the performance period June 15, 2021, through December 31, 2022, by their appropriate due dates. Condition: Financial statements for the years ended December 31, 2021 and 2022, were due June 30, 2022 and 2023, respectively. Performance Progress Reports, Uses of Award Reports, and documentation of annual CDFI Certification for the years ended December 31, 2021 and 2022, were due March 31, 2022 and 2023, respectively. None of the above reports were filed. Cause: Due to a shortage of staffing and oversight, the Organization did not complete reports required by grant/granting agency. Effect: Noncompliance with the reporting requirements of the granting agency.