FAC Explorer

Audit 353758

FY End
2023-12-31
Total Expended
$10.70M
Findings
4
Programs
1
Organization: Sites Project Authority (CA)
Year: 2023 Accepted: 2025-04-15
Auditor: Fechter and Company Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555152 2023-001 Significant Deficiency - L
555153 2023-001 Significant Deficiency - L
1131594 2023-001 Significant Deficiency - L
1131595 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
15.574 Water Storage Enhancement $9.70M Yes 1

Contacts

Name Title Type
GMMMRFLNL656 Joe Trapasso Auditee
5303871102 Scott German Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: REPORTING ENTITY Accounting Policies: For purposes of this report, certain accounting procedures were followed which help illustrate the authorizations and expenditures of the individual programs. The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. All authorizations represent the total allotments or grant awards received. All expenses and capital outlays are reported as expenditures. 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. Any Federal funds expended in excess of Federal funds received are recorded as a receivable from the grantor agency and any Federal funds received in excess of Federal funds expended are recorded as a payable to the grantor agency. De Minimis Rate Used: N Rate Explanation: De minimis cost rate not used. No indirect costs reported. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the Authority. The Authority’s reporting entity is defined in Note 1 to the basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the schedule.
Title: NOTE 2: BASIS OF ACCOUNTING Accounting Policies: For purposes of this report, certain accounting procedures were followed which help illustrate the authorizations and expenditures of the individual programs. The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. All authorizations represent the total allotments or grant awards received. All expenses and capital outlays are reported as expenditures. 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. Any Federal funds expended in excess of Federal funds received are recorded as a receivable from the grantor agency and any Federal funds received in excess of Federal funds expended are recorded as a payable to the grantor agency. De Minimis Rate Used: N Rate Explanation: De minimis cost rate not used. No indirect costs reported. For purposes of this report, certain accounting procedures were followed which help illustrate the authorizations and expenditures of the individual programs. The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. All authorizations represent the total allotments or grant awards received. All expenses and capital outlays are reported as expenditures. 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. Any Federal funds expended in excess of Federal funds received are recorded as a receivable from the grantor agency and any Federal funds received in excess of Federal funds expended are recorded as a payable to the grantor agency.
Title: NOTE 3: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: For purposes of this report, certain accounting procedures were followed which help illustrate the authorizations and expenditures of the individual programs. The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. All authorizations represent the total allotments or grant awards received. All expenses and capital outlays are reported as expenditures. 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. Any Federal funds expended in excess of Federal funds received are recorded as a receivable from the grantor agency and any Federal funds received in excess of Federal funds expended are recorded as a payable to the grantor agency. De Minimis Rate Used: N Rate Explanation: De minimis cost rate not used. No indirect costs reported. The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the Authority’s financial statements. Federal award revenues and expenditures are reported principally in the Authority’s financial statements as Reservoir Fund.
Title: NOTE 4: INDIRECT COST RATE Accounting Policies: For purposes of this report, certain accounting procedures were followed which help illustrate the authorizations and expenditures of the individual programs. The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. All authorizations represent the total allotments or grant awards received. All expenses and capital outlays are reported as expenditures. 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. Any Federal funds expended in excess of Federal funds received are recorded as a receivable from the grantor agency and any Federal funds received in excess of Federal funds expended are recorded as a payable to the grantor agency. De Minimis Rate Used: N Rate Explanation: De minimis cost rate not used. No indirect costs reported. This program provides that the Authority shall receive direct administrative costs in accordance with 2 CFR 200.413 instead of indirect costs under 200.414(f). Since only direct administrative costs are allowable under this grant, the Authority is not eligible for the ten-percent de minimus indirect cost rate under the Uniform Guidance.

Finding Details

Finding 2023-001
Description: Preparation of the schedule of expenditures of Federal awards Criteria: Title 2, CFR, Part 200, Subpart F - Audit Requirements, section 200.510, Financial Statements. states in part (b)(3) "Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available." Condition: During the course of the audit, management presented the auditor with three drafts of the schedule of expenditures of Federal awards which were all materially misstated. Management corrected all such misstatements during the course of the single audit. Cause: Management did not have proper controls in place to ensure that the individuals responsible for preparing the schedule of Federal awards were properly trained on the preparation requirements. Effect: The lack of proper training over the preparation of the schedule of expenditures of Federal awards resulted in material adjustments to the schedule of expenditures of Federal awards during the course of the audit. Recommendation: We recommend that management implement internal controls such that individuals preparing the schedule of expenditures of Federal awards are properly trained on the preparation requirements. Management’s Response: Sites Authority staff did not understand the requirements that expenditures included in the Schedule of Expenditures of Federal Awards (SEFA) be provided on an accrual basis. As such, the first SEFA submittal was based on actuals. Staff was informed by the auditor that the SEFA submittal should be based on an accrual basis. The team submitted a SEFA based on an accrual basis. Staff made a mistake of not including in the SEFA 25% of a $180,000 ($45,000) payment. This $45,000 omission was less than 0.4% of the total expenditures of $10,697,736 included in the SEFA. There were 634 invoices processed with thousands of expense items used to prepare the SEFA. Staff will document in its internal SEFA procedure the appropriate federal CFR sections for SEFAs to ensure such sections and requirements are met. The recommended training will occur before end of FY24 to avoid this recurring in the Dec 31, 2024 audit report.
Finding 2023-001
Description: Preparation of the schedule of expenditures of Federal awards Criteria: Title 2, CFR, Part 200, Subpart F - Audit Requirements, section 200.510, Financial Statements. states in part (b)(3) "Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available." Condition: During the course of the audit, management presented the auditor with three drafts of the schedule of expenditures of Federal awards which were all materially misstated. Management corrected all such misstatements during the course of the single audit. Cause: Management did not have proper controls in place to ensure that the individuals responsible for preparing the schedule of Federal awards were properly trained on the preparation requirements. Effect: The lack of proper training over the preparation of the schedule of expenditures of Federal awards resulted in material adjustments to the schedule of expenditures of Federal awards during the course of the audit. Recommendation: We recommend that management implement internal controls such that individuals preparing the schedule of expenditures of Federal awards are properly trained on the preparation requirements. Management’s Response: Sites Authority staff did not understand the requirements that expenditures included in the Schedule of Expenditures of Federal Awards (SEFA) be provided on an accrual basis. As such, the first SEFA submittal was based on actuals. Staff was informed by the auditor that the SEFA submittal should be based on an accrual basis. The team submitted a SEFA based on an accrual basis. Staff made a mistake of not including in the SEFA 25% of a $180,000 ($45,000) payment. This $45,000 omission was less than 0.4% of the total expenditures of $10,697,736 included in the SEFA. There were 634 invoices processed with thousands of expense items used to prepare the SEFA. Staff will document in its internal SEFA procedure the appropriate federal CFR sections for SEFAs to ensure such sections and requirements are met. The recommended training will occur before end of FY24 to avoid this recurring in the Dec 31, 2024 audit report.
Finding 2023-001
Description: Preparation of the schedule of expenditures of Federal awards Criteria: Title 2, CFR, Part 200, Subpart F - Audit Requirements, section 200.510, Financial Statements. states in part (b)(3) "Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available." Condition: During the course of the audit, management presented the auditor with three drafts of the schedule of expenditures of Federal awards which were all materially misstated. Management corrected all such misstatements during the course of the single audit. Cause: Management did not have proper controls in place to ensure that the individuals responsible for preparing the schedule of Federal awards were properly trained on the preparation requirements. Effect: The lack of proper training over the preparation of the schedule of expenditures of Federal awards resulted in material adjustments to the schedule of expenditures of Federal awards during the course of the audit. Recommendation: We recommend that management implement internal controls such that individuals preparing the schedule of expenditures of Federal awards are properly trained on the preparation requirements. Management’s Response: Sites Authority staff did not understand the requirements that expenditures included in the Schedule of Expenditures of Federal Awards (SEFA) be provided on an accrual basis. As such, the first SEFA submittal was based on actuals. Staff was informed by the auditor that the SEFA submittal should be based on an accrual basis. The team submitted a SEFA based on an accrual basis. Staff made a mistake of not including in the SEFA 25% of a $180,000 ($45,000) payment. This $45,000 omission was less than 0.4% of the total expenditures of $10,697,736 included in the SEFA. There were 634 invoices processed with thousands of expense items used to prepare the SEFA. Staff will document in its internal SEFA procedure the appropriate federal CFR sections for SEFAs to ensure such sections and requirements are met. The recommended training will occur before end of FY24 to avoid this recurring in the Dec 31, 2024 audit report.
Finding 2023-001
Description: Preparation of the schedule of expenditures of Federal awards Criteria: Title 2, CFR, Part 200, Subpart F - Audit Requirements, section 200.510, Financial Statements. states in part (b)(3) "Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available." Condition: During the course of the audit, management presented the auditor with three drafts of the schedule of expenditures of Federal awards which were all materially misstated. Management corrected all such misstatements during the course of the single audit. Cause: Management did not have proper controls in place to ensure that the individuals responsible for preparing the schedule of Federal awards were properly trained on the preparation requirements. Effect: The lack of proper training over the preparation of the schedule of expenditures of Federal awards resulted in material adjustments to the schedule of expenditures of Federal awards during the course of the audit. Recommendation: We recommend that management implement internal controls such that individuals preparing the schedule of expenditures of Federal awards are properly trained on the preparation requirements. Management’s Response: Sites Authority staff did not understand the requirements that expenditures included in the Schedule of Expenditures of Federal Awards (SEFA) be provided on an accrual basis. As such, the first SEFA submittal was based on actuals. Staff was informed by the auditor that the SEFA submittal should be based on an accrual basis. The team submitted a SEFA based on an accrual basis. Staff made a mistake of not including in the SEFA 25% of a $180,000 ($45,000) payment. This $45,000 omission was less than 0.4% of the total expenditures of $10,697,736 included in the SEFA. There were 634 invoices processed with thousands of expense items used to prepare the SEFA. Staff will document in its internal SEFA procedure the appropriate federal CFR sections for SEFAs to ensure such sections and requirements are met. The recommended training will occur before end of FY24 to avoid this recurring in the Dec 31, 2024 audit report.