Audit 354676

FY End
2024-12-31
Total Expended
$1.93M
Findings
6
Programs
3
Year: 2024 Accepted: 2025-04-25

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
555963 2024-001 Significant Deficiency - N
555964 2024-001 Significant Deficiency - N
555965 2024-001 Significant Deficiency - N
1132405 2024-001 Significant Deficiency - N
1132406 2024-001 Significant Deficiency - N
1132407 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.58M Yes 1
10.427 Rural Rental Assistance Payments $282,896 - 1
10.437 Interest Assistance Programs $67,056 - 1

Contacts

Name Title Type
HGDNH24QNL83 Cameo Townzen Auditee
5308232477 Debbi Christensen Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Lone Pine Economic Development Corporation, Case No. 953661244 01-6, under programs of the federal government for the year ended December 31, 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 the selected portion of the operations of Lone Pine Economic Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Lone Pine Economic Development Corporation.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. Expenditures reported on 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.
Title: NOTE C - INDIRECT COST REIMBURSEMENTS Accounting Policies: Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate.
Title: NOTE D - MORTGAGE PAYABLE Accounting Policies: Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. The mortgage payable represents a permanent building loan provided by Rural Rental Housing. The balance outstanding on the mortgage as of December 31, 2024 totaled $1,566,209.

Finding Details

Statement of Condition The Corporation did not make enough cash transfers during the year to fully fund the replacement reserve account. As a result, the replacement reserve account was underfunded by $30,528 at December 31, 2024. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $30,528 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $30,528 to the replacement reserve cash account.
Statement of Condition The Corporation did not make enough cash transfers during the year to fully fund the replacement reserve account. As a result, the replacement reserve account was underfunded by $30,528 at December 31, 2024. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $30,528 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $30,528 to the replacement reserve cash account.
Statement of Condition The Corporation did not make enough cash transfers during the year to fully fund the replacement reserve account. As a result, the replacement reserve account was underfunded by $30,528 at December 31, 2024. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $30,528 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $30,528 to the replacement reserve cash account.
Statement of Condition The Corporation did not make enough cash transfers during the year to fully fund the replacement reserve account. As a result, the replacement reserve account was underfunded by $30,528 at December 31, 2024. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $30,528 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $30,528 to the replacement reserve cash account.
Statement of Condition The Corporation did not make enough cash transfers during the year to fully fund the replacement reserve account. As a result, the replacement reserve account was underfunded by $30,528 at December 31, 2024. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $30,528 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $30,528 to the replacement reserve cash account.
Statement of Condition The Corporation did not make enough cash transfers during the year to fully fund the replacement reserve account. As a result, the replacement reserve account was underfunded by $30,528 at December 31, 2024. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $30,528 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $30,528 to the replacement reserve cash account.