FAC Explorer

Audit 360529

FY End
2024-09-30
Total Expended
$7.34M
Findings
6
Programs
20
Organization: Southeast Rural Community Assistance Project, Inc. (VA)
Year: 2024 Accepted: 2025-06-28
Auditor: Han Group

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
568814 2024-002 Significant Deficiency Yes L
568815 2024-002 Significant Deficiency Yes L
568816 2024-002 Significant Deficiency Yes L
1145256 2024-002 Significant Deficiency Yes L
1145257 2024-002 Significant Deficiency Yes L
1145258 2024-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
66.424 Surveys, Studies, Investigations, Demonstrations, and Training Grants - Section 1442 of the Safe Drinking Water Act $1.57M - 0
10.761 Water and Waste Technical Assistance and Training Grants $1.38M Yes 1
66.446 Technical Assistance for Treatment Works (clean Water Act [cwa] Section 104(b)(8)) $400,647 Yes 0
66.468 Drinking Water State Revolving Fund $391,811 - 0
21.020 Community Development Financial Institutions Program $325,950 - 0
10.862 Rural Decentralized Water Systems Grant Program $261,293 - 0
93.569 Community Services Block Grant $177,919 - 0
10.762 Solid Waste Management Grants $128,000 - 0
14.169 Housing Counseling Assistance Program $116,013 - 0
66.436 Surveys, Studies, Investigations, Demonstrations, and Training Grants and Cooperative Agreements - Section 104(b)(3) of the Clean Water Act $95,752 - 0
66.454 Water Quality Management Planning $82,098 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $59,813 - 0
10.446 Rural Community Development Initiative $57,778 - 0
66.203 Environmental Finance Center Grants $56,140 - 0
10.766 Community Facilities Loans and Grants $50,354 - 0
10.351 Rural Business Development Grant $45,055 - 0
14.218 Community Development Block Grants/entitlement Grants $44,742 - 0
93.570 Community Services Block Grant Discretionary Awards $31,818 Yes 1
11.032 State Digital Equity Planning and Capacity Grant $9,015 - 0
66.443 Reducing Lead in Drinking Water (sdwa 1459b) $6,820 - 0

Contacts

Name Title Type
HDWKGE2DJDV3 Charles Denny Auditee
5403451184 Jan McDaid Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either 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 Organization has elected not to use the 10-percent de-minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “schedule” or the “SEFA”) includes the federal grant activities of Southeast Rural Community Assistance Project, Inc. and subsidiary (collectively, the Organization) under programs of the federal government for the year ended September 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). 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 flow of the Organization.
Title: Summary of Significant Accounting Polices Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either 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 Organization has elected not to use the 10-percent de-minimus indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either 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 Organization has elected not to use the 10-percent de-minimus indirect cost rate as allowed under the Uniform Guidance. The Organization has elected not to use the 10-percent de-minimus indirect cost rate as allowed under the Uniform Guidance.
Title: Reconciliation of SEFA Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either 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 Organization has elected not to use the 10-percent de-minimus indirect cost rate as allowed under the Uniform Guidance. The Organization records revenue adjustments to conform to U.S. generally accepted accounting principles which are not required to be recorded within the schedule. Year ended September 30, 2024 Total federal expenditures per the SEFA $ 7,344,892 Revenue and subrecipient adjustments to conform to U.S. GAAP 346,622 Total revenue from federal government sources per the consolidated statement of activities $ 7,691,514

Finding Details

Finding 2024-002
Criteria or Specific Requirements: In accordance with 2 CFR §170, prime awardees awarded a federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. Further, the Organization is subject to reporting requirements for both financial and progress reporting. In accordance with 2 CFR §200.328, Federal Financial Reports (FFR) should be submitted based on frequency required by the terms and conditions. Under grant agreements, program 10.761 and 66.446 require both financial and performance reports to be submitted quarterly within 12 days after quarter-end, while ALN program 93.570 requires semiannual financial and performance reports within 30 days after period-end. Condition: During the review of reporting compliance for the major programs, it was determined that the Organization did not file the FFATA report for program 93.570 within the required 30-day period, and did not submit quarterly financial reports for program 10.761 within the required 12-day deadline after quarter-end. Cause: Internal controls over financial reporting were not operating effectively to file the FFATA report a timely manner. Management was not aware of the FFATA requirements for prime awards. Further, internal controls over financial reporting were not operating effectively to file financial reports in a timely manner. Effect: Failure to submit the FFATA report by the end of the month following award of a subgrant over $30,000 results in noncompliance with 2 CFR § 170. Additionally, failure to submit quarterly financial reports for program 10.761 within the required deadline constitutes noncompliance with the Federal Financial Reporting requirement under 2 CFR § 200.328. Questioned Costs: Questioned costs were not identified. Perspective information: It is noted that the Organization has not established policies and procedures that will ensure that FFATA reports are submitted within the required timeline and therefore one out of one samples tested for this compliance requirement were not completed. Further, for program 10.761 quarterly financial reports, one out of two samples tested – drawn from a population of 10 – was not submitted within the required 12-day time frame. Noncompliance surrounding reporting was identified for the following awards during the fiscal 2024: Federal Agency Pass-Through Entity ALN Federal Award Name Award Year Department of Health and Human Services Direct 93.570 HHS RCD 9/30/2023 – 9/29/2024 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Technitrain 2023 – 2024 9/1/2023 – 9/30/2026 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Tribal 2023 - 2024 9/1/2023 – 9/30/2026 Repeat Finding: Yes – Repeat of FY 2024 Finding 2023-005. Recommendations: We recommend that management and relevant staff participate in comprehensive training on federal grant compliance—emphasizing FFATA obligations and financial reporting deadlines—to ensure a clear understanding of requirements. Management should then formalize and document procedures for FFATA reporting, including a calendar-driven workflow with designated preparers and approvers, mandatory sign-off checklists, and automated reminders. Finally, the Organization should implement a centralized reporting-tracking system that monitors all federal award deadlines and captures evidence of timely preparation, review, and submission for both financial and performance reports.
Finding 2024-002
Criteria or Specific Requirements: In accordance with 2 CFR §170, prime awardees awarded a federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. Further, the Organization is subject to reporting requirements for both financial and progress reporting. In accordance with 2 CFR §200.328, Federal Financial Reports (FFR) should be submitted based on frequency required by the terms and conditions. Under grant agreements, program 10.761 and 66.446 require both financial and performance reports to be submitted quarterly within 12 days after quarter-end, while ALN program 93.570 requires semiannual financial and performance reports within 30 days after period-end. Condition: During the review of reporting compliance for the major programs, it was determined that the Organization did not file the FFATA report for program 93.570 within the required 30-day period, and did not submit quarterly financial reports for program 10.761 within the required 12-day deadline after quarter-end. Cause: Internal controls over financial reporting were not operating effectively to file the FFATA report a timely manner. Management was not aware of the FFATA requirements for prime awards. Further, internal controls over financial reporting were not operating effectively to file financial reports in a timely manner. Effect: Failure to submit the FFATA report by the end of the month following award of a subgrant over $30,000 results in noncompliance with 2 CFR § 170. Additionally, failure to submit quarterly financial reports for program 10.761 within the required deadline constitutes noncompliance with the Federal Financial Reporting requirement under 2 CFR § 200.328. Questioned Costs: Questioned costs were not identified. Perspective information: It is noted that the Organization has not established policies and procedures that will ensure that FFATA reports are submitted within the required timeline and therefore one out of one samples tested for this compliance requirement were not completed. Further, for program 10.761 quarterly financial reports, one out of two samples tested – drawn from a population of 10 – was not submitted within the required 12-day time frame. Noncompliance surrounding reporting was identified for the following awards during the fiscal 2024: Federal Agency Pass-Through Entity ALN Federal Award Name Award Year Department of Health and Human Services Direct 93.570 HHS RCD 9/30/2023 – 9/29/2024 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Technitrain 2023 – 2024 9/1/2023 – 9/30/2026 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Tribal 2023 - 2024 9/1/2023 – 9/30/2026 Repeat Finding: Yes – Repeat of FY 2024 Finding 2023-005. Recommendations: We recommend that management and relevant staff participate in comprehensive training on federal grant compliance—emphasizing FFATA obligations and financial reporting deadlines—to ensure a clear understanding of requirements. Management should then formalize and document procedures for FFATA reporting, including a calendar-driven workflow with designated preparers and approvers, mandatory sign-off checklists, and automated reminders. Finally, the Organization should implement a centralized reporting-tracking system that monitors all federal award deadlines and captures evidence of timely preparation, review, and submission for both financial and performance reports.
Finding 2024-002
Criteria or Specific Requirements: In accordance with 2 CFR §170, prime awardees awarded a federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. Further, the Organization is subject to reporting requirements for both financial and progress reporting. In accordance with 2 CFR §200.328, Federal Financial Reports (FFR) should be submitted based on frequency required by the terms and conditions. Under grant agreements, program 10.761 and 66.446 require both financial and performance reports to be submitted quarterly within 12 days after quarter-end, while ALN program 93.570 requires semiannual financial and performance reports within 30 days after period-end. Condition: During the review of reporting compliance for the major programs, it was determined that the Organization did not file the FFATA report for program 93.570 within the required 30-day period, and did not submit quarterly financial reports for program 10.761 within the required 12-day deadline after quarter-end. Cause: Internal controls over financial reporting were not operating effectively to file the FFATA report a timely manner. Management was not aware of the FFATA requirements for prime awards. Further, internal controls over financial reporting were not operating effectively to file financial reports in a timely manner. Effect: Failure to submit the FFATA report by the end of the month following award of a subgrant over $30,000 results in noncompliance with 2 CFR § 170. Additionally, failure to submit quarterly financial reports for program 10.761 within the required deadline constitutes noncompliance with the Federal Financial Reporting requirement under 2 CFR § 200.328. Questioned Costs: Questioned costs were not identified. Perspective information: It is noted that the Organization has not established policies and procedures that will ensure that FFATA reports are submitted within the required timeline and therefore one out of one samples tested for this compliance requirement were not completed. Further, for program 10.761 quarterly financial reports, one out of two samples tested – drawn from a population of 10 – was not submitted within the required 12-day time frame. Noncompliance surrounding reporting was identified for the following awards during the fiscal 2024: Federal Agency Pass-Through Entity ALN Federal Award Name Award Year Department of Health and Human Services Direct 93.570 HHS RCD 9/30/2023 – 9/29/2024 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Technitrain 2023 – 2024 9/1/2023 – 9/30/2026 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Tribal 2023 - 2024 9/1/2023 – 9/30/2026 Repeat Finding: Yes – Repeat of FY 2024 Finding 2023-005. Recommendations: We recommend that management and relevant staff participate in comprehensive training on federal grant compliance—emphasizing FFATA obligations and financial reporting deadlines—to ensure a clear understanding of requirements. Management should then formalize and document procedures for FFATA reporting, including a calendar-driven workflow with designated preparers and approvers, mandatory sign-off checklists, and automated reminders. Finally, the Organization should implement a centralized reporting-tracking system that monitors all federal award deadlines and captures evidence of timely preparation, review, and submission for both financial and performance reports.
Finding 2024-002
Criteria or Specific Requirements: In accordance with 2 CFR §170, prime awardees awarded a federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. Further, the Organization is subject to reporting requirements for both financial and progress reporting. In accordance with 2 CFR §200.328, Federal Financial Reports (FFR) should be submitted based on frequency required by the terms and conditions. Under grant agreements, program 10.761 and 66.446 require both financial and performance reports to be submitted quarterly within 12 days after quarter-end, while ALN program 93.570 requires semiannual financial and performance reports within 30 days after period-end. Condition: During the review of reporting compliance for the major programs, it was determined that the Organization did not file the FFATA report for program 93.570 within the required 30-day period, and did not submit quarterly financial reports for program 10.761 within the required 12-day deadline after quarter-end. Cause: Internal controls over financial reporting were not operating effectively to file the FFATA report a timely manner. Management was not aware of the FFATA requirements for prime awards. Further, internal controls over financial reporting were not operating effectively to file financial reports in a timely manner. Effect: Failure to submit the FFATA report by the end of the month following award of a subgrant over $30,000 results in noncompliance with 2 CFR § 170. Additionally, failure to submit quarterly financial reports for program 10.761 within the required deadline constitutes noncompliance with the Federal Financial Reporting requirement under 2 CFR § 200.328. Questioned Costs: Questioned costs were not identified. Perspective information: It is noted that the Organization has not established policies and procedures that will ensure that FFATA reports are submitted within the required timeline and therefore one out of one samples tested for this compliance requirement were not completed. Further, for program 10.761 quarterly financial reports, one out of two samples tested – drawn from a population of 10 – was not submitted within the required 12-day time frame. Noncompliance surrounding reporting was identified for the following awards during the fiscal 2024: Federal Agency Pass-Through Entity ALN Federal Award Name Award Year Department of Health and Human Services Direct 93.570 HHS RCD 9/30/2023 – 9/29/2024 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Technitrain 2023 – 2024 9/1/2023 – 9/30/2026 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Tribal 2023 - 2024 9/1/2023 – 9/30/2026 Repeat Finding: Yes – Repeat of FY 2024 Finding 2023-005. Recommendations: We recommend that management and relevant staff participate in comprehensive training on federal grant compliance—emphasizing FFATA obligations and financial reporting deadlines—to ensure a clear understanding of requirements. Management should then formalize and document procedures for FFATA reporting, including a calendar-driven workflow with designated preparers and approvers, mandatory sign-off checklists, and automated reminders. Finally, the Organization should implement a centralized reporting-tracking system that monitors all federal award deadlines and captures evidence of timely preparation, review, and submission for both financial and performance reports.
Finding 2024-002
Criteria or Specific Requirements: In accordance with 2 CFR §170, prime awardees awarded a federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. Further, the Organization is subject to reporting requirements for both financial and progress reporting. In accordance with 2 CFR §200.328, Federal Financial Reports (FFR) should be submitted based on frequency required by the terms and conditions. Under grant agreements, program 10.761 and 66.446 require both financial and performance reports to be submitted quarterly within 12 days after quarter-end, while ALN program 93.570 requires semiannual financial and performance reports within 30 days after period-end. Condition: During the review of reporting compliance for the major programs, it was determined that the Organization did not file the FFATA report for program 93.570 within the required 30-day period, and did not submit quarterly financial reports for program 10.761 within the required 12-day deadline after quarter-end. Cause: Internal controls over financial reporting were not operating effectively to file the FFATA report a timely manner. Management was not aware of the FFATA requirements for prime awards. Further, internal controls over financial reporting were not operating effectively to file financial reports in a timely manner. Effect: Failure to submit the FFATA report by the end of the month following award of a subgrant over $30,000 results in noncompliance with 2 CFR § 170. Additionally, failure to submit quarterly financial reports for program 10.761 within the required deadline constitutes noncompliance with the Federal Financial Reporting requirement under 2 CFR § 200.328. Questioned Costs: Questioned costs were not identified. Perspective information: It is noted that the Organization has not established policies and procedures that will ensure that FFATA reports are submitted within the required timeline and therefore one out of one samples tested for this compliance requirement were not completed. Further, for program 10.761 quarterly financial reports, one out of two samples tested – drawn from a population of 10 – was not submitted within the required 12-day time frame. Noncompliance surrounding reporting was identified for the following awards during the fiscal 2024: Federal Agency Pass-Through Entity ALN Federal Award Name Award Year Department of Health and Human Services Direct 93.570 HHS RCD 9/30/2023 – 9/29/2024 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Technitrain 2023 – 2024 9/1/2023 – 9/30/2026 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Tribal 2023 - 2024 9/1/2023 – 9/30/2026 Repeat Finding: Yes – Repeat of FY 2024 Finding 2023-005. Recommendations: We recommend that management and relevant staff participate in comprehensive training on federal grant compliance—emphasizing FFATA obligations and financial reporting deadlines—to ensure a clear understanding of requirements. Management should then formalize and document procedures for FFATA reporting, including a calendar-driven workflow with designated preparers and approvers, mandatory sign-off checklists, and automated reminders. Finally, the Organization should implement a centralized reporting-tracking system that monitors all federal award deadlines and captures evidence of timely preparation, review, and submission for both financial and performance reports.
Finding 2024-002
Criteria or Specific Requirements: In accordance with 2 CFR §170, prime awardees awarded a federal grant are required to file a Federal Funding Accountability and Transparency Act (FFATA) sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $30,000. Further, the Organization is subject to reporting requirements for both financial and progress reporting. In accordance with 2 CFR §200.328, Federal Financial Reports (FFR) should be submitted based on frequency required by the terms and conditions. Under grant agreements, program 10.761 and 66.446 require both financial and performance reports to be submitted quarterly within 12 days after quarter-end, while ALN program 93.570 requires semiannual financial and performance reports within 30 days after period-end. Condition: During the review of reporting compliance for the major programs, it was determined that the Organization did not file the FFATA report for program 93.570 within the required 30-day period, and did not submit quarterly financial reports for program 10.761 within the required 12-day deadline after quarter-end. Cause: Internal controls over financial reporting were not operating effectively to file the FFATA report a timely manner. Management was not aware of the FFATA requirements for prime awards. Further, internal controls over financial reporting were not operating effectively to file financial reports in a timely manner. Effect: Failure to submit the FFATA report by the end of the month following award of a subgrant over $30,000 results in noncompliance with 2 CFR § 170. Additionally, failure to submit quarterly financial reports for program 10.761 within the required deadline constitutes noncompliance with the Federal Financial Reporting requirement under 2 CFR § 200.328. Questioned Costs: Questioned costs were not identified. Perspective information: It is noted that the Organization has not established policies and procedures that will ensure that FFATA reports are submitted within the required timeline and therefore one out of one samples tested for this compliance requirement were not completed. Further, for program 10.761 quarterly financial reports, one out of two samples tested – drawn from a population of 10 – was not submitted within the required 12-day time frame. Noncompliance surrounding reporting was identified for the following awards during the fiscal 2024: Federal Agency Pass-Through Entity ALN Federal Award Name Award Year Department of Health and Human Services Direct 93.570 HHS RCD 9/30/2023 – 9/29/2024 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Technitrain 2023 – 2024 9/1/2023 – 9/30/2026 United States Department of Agriculture Rural Community Assistance Partnership Inc. 10.761 Tribal 2023 - 2024 9/1/2023 – 9/30/2026 Repeat Finding: Yes – Repeat of FY 2024 Finding 2023-005. Recommendations: We recommend that management and relevant staff participate in comprehensive training on federal grant compliance—emphasizing FFATA obligations and financial reporting deadlines—to ensure a clear understanding of requirements. Management should then formalize and document procedures for FFATA reporting, including a calendar-driven workflow with designated preparers and approvers, mandatory sign-off checklists, and automated reminders. Finally, the Organization should implement a centralized reporting-tracking system that monitors all federal award deadlines and captures evidence of timely preparation, review, and submission for both financial and performance reports.