Audit 358636

FY End
2024-06-30
Total Expended
$1.18M
Findings
2
Programs
7
Year: 2024 Accepted: 2025-06-11

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
564509 2024-001 Significant Deficiency Yes L
1140951 2024-001 Significant Deficiency Yes L

Contacts

Name Title Type
XV6VE6TL47B5 Robert Phillips Auditee
8604919884 David Cappelletti Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Funds used to cover other direct costs The accompanying schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Northwest Council of Governments 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 operations of the Northwest Council of Governments, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Northwest Council of Governments.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Funds used to cover other direct costs Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance and/or OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
Title: Note 3 – Indirect Cost Recovery Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Funds used to cover other direct costs The Northwest Council of Governments did not recover its indirect costs using the 10% de minimis direct cost rate provided under Section 200.41, of the Uniform Guidance rules.

Finding Details

2024-001 Grantor: Department of Commerce Federal Program Name: Highway Planning and Construction (FHWA) Pass-through Entity: State Department of Transportation CFDA: 20.205 Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria or specific requirement: The COG is required to submit quarterly reports for this program to receive reimbursement for expenditures. Condition: The 3rd and 4rth quarterly reports were filed well beyond the normal submission timeline. Submissions were re-submitted to correct errors which resulted in the funds being received several months after the year end. Effect: Significant delays in reimbursements can lead to the funds being unavailable to be recorded as the current year’s revenue in the General Fund. Any grant revenue can potentially be deferred if funds remain unavailable beyond the normal operation cycle. Cause: full staff turnover in the prior year. Repeat Finding: Yes Recommendations: We recommend that the client implements controls to ensure that errors that result in amended reimbursement submissions can be avoided or detected & correct in a timely manner to reduce any delays.
2024-001 Grantor: Department of Commerce Federal Program Name: Highway Planning and Construction (FHWA) Pass-through Entity: State Department of Transportation CFDA: 20.205 Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria or specific requirement: The COG is required to submit quarterly reports for this program to receive reimbursement for expenditures. Condition: The 3rd and 4rth quarterly reports were filed well beyond the normal submission timeline. Submissions were re-submitted to correct errors which resulted in the funds being received several months after the year end. Effect: Significant delays in reimbursements can lead to the funds being unavailable to be recorded as the current year’s revenue in the General Fund. Any grant revenue can potentially be deferred if funds remain unavailable beyond the normal operation cycle. Cause: full staff turnover in the prior year. Repeat Finding: Yes Recommendations: We recommend that the client implements controls to ensure that errors that result in amended reimbursement submissions can be avoided or detected & correct in a timely manner to reduce any delays.