FAC Explorer

Audit 356167

FY End
2024-12-31
Total Expended
$2.43M
Findings
2
Programs
3
Organization: Appalachian Community Capital Corporation (VA)
Year: 2024 Accepted: 2025-05-13
Auditor: Brown Edwards & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560262 2024-001 Significant Deficiency - P
1136704 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
66.960 Greenhouse Gas Reduction Fund: Clean Communities Investment Accelerator $1.56M Yes 1
23.002 Appalachian Area Development $540,755 - 0
21.033 Community Development Financial Institutions Fund Equitable Recovery Program (cdfi Erp) $327,096 - 0

Contacts

Name Title Type
PH2LMVJXK7K6 Donna Gambrell Auditee
2025475155 Susan Chapman Auditor
No contacts on file

Notes to SEFA

Title: AWARDS EXPENDED IN THE FORM OF LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Appalachian Community Capital Corporation and its subsidiaries (the "Company") under programs of the federal government for the year ended December 31, 2024. The information presented in this Schedule is presented in accordance with the requirement 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 Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Company. Expenditures reported on the Schedule are report 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: Y Rate Explanation: The Company has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal awards from the U.S. Department of Treasury were used to originate $327,096 in loans for 2024.

Finding Details

Finding 2024-001
2024-001: Environmental Protection Agency – Assistance Listing No. 66.960, Greenhouse Gas Reduction Fund: Clean Communities Investment Accelerator, Significant Deficiency Criteria and Condition: Recipients of federal funds are required to prepare a complete and accurate Schedule of Expenditures of Federal Awards. Additionally, recipients must establish and maintain effective internal controls over federal awards to provide reasonable assurance of accurate financial reporting Context: The Company updated the 2024 Schedule of Expenditures of Federal Awards by a material amount, a result of issues identified during review of subsequent disbursements in the financial statement audit. Cause: The error occurred due to insufficient controls over the process for capturing and reconciling all expenditures incurred during the period to be included on the SEFA. Effect: The SEFA initially provided understated total federal expenditures and excluded a material portion of major program activity. Recommendation: We recommend that the Company implement enhanced SEFA preparation and review procedures, including a reconciliation of SEFA amounts to general ledger activity and verification that all applicable federal awards are included. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and have established a process to ensure all expenditures are properly included in the SEFA.
Finding 2024-001
2024-001: Environmental Protection Agency – Assistance Listing No. 66.960, Greenhouse Gas Reduction Fund: Clean Communities Investment Accelerator, Significant Deficiency Criteria and Condition: Recipients of federal funds are required to prepare a complete and accurate Schedule of Expenditures of Federal Awards. Additionally, recipients must establish and maintain effective internal controls over federal awards to provide reasonable assurance of accurate financial reporting Context: The Company updated the 2024 Schedule of Expenditures of Federal Awards by a material amount, a result of issues identified during review of subsequent disbursements in the financial statement audit. Cause: The error occurred due to insufficient controls over the process for capturing and reconciling all expenditures incurred during the period to be included on the SEFA. Effect: The SEFA initially provided understated total federal expenditures and excluded a material portion of major program activity. Recommendation: We recommend that the Company implement enhanced SEFA preparation and review procedures, including a reconciliation of SEFA amounts to general ledger activity and verification that all applicable federal awards are included. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and have established a process to ensure all expenditures are properly included in the SEFA.