Audit 363266

FY End
2024-06-30
Total Expended
$3.08M
Findings
2
Programs
1
Year: 2024 Accepted: 2025-07-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
572136 2024-001 Significant Deficiency - G
1148578 2024-001 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.08M Yes 1

Contacts

Name Title Type
R96YCJ4NQF15 Betty Buckley Auditee
5096900530 Ashlee Lent Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Association and Grant Activity Accounting Policies: Note 3 - Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principle contained in Title 48 CFR Part 31.2, Contract Cost Principles and Procedures—Contracts with Commercial Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Washington Independent Telecommunications Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Washington Independent Telecommunications Association (WITA or Association) is a nonprofit trade association established in 1915, dedicated to advocating for and supporting independent telecommunications providers in Washington State. With over a century of experience, WITA plays a pivotal role in shaping the state's telecommunications landscape. WITA's mission is to advance and promote an environment that enables its members to provide highquality services in response to the evolving needs of their customers in the telecommunications marketplace. The association serves as a forum for members to share industry trends, educate legislators and regulators, provide training opportunities, and connect vendors with members to build state-of-the-art networks across Washington. WITA was awarded a Coronavirus State and Local Fiscal Recovery Funds Grant from Washington State Department of Commerce to extend broadband services to residents and businesses in several lowdensity population pockets of Mason and Island Counties. The grant will result in fiber-to-the-home and offer broadband internet up to 1,000 Mbps (gigabit) with synchronous upload and download speeds. The availability of high-speed internet service will also significantly enhance the capabilities of state and local emergency responders in these areas.
Title: Note 2 - Basis of Presentation Accounting Policies: Note 3 - Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principle contained in Title 48 CFR Part 31.2, Contract Cost Principles and Procedures—Contracts with Commercial Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Washington Independent Telecommunications Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) for the U.S. Department of the Treasury State and Local Fiscal Recovery Funds includes the federal grant activity of Washington Independent Telecommunications Association 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 (CFR) 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 Washington Independent Telecommunications Association, it is not intended to, and does not, present the financial position, results of operations, or cash flows of the Association.
Title: Note 4 - Commitments and Contingencies Accounting Policies: Note 3 - Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principle contained in Title 48 CFR Part 31.2, Contract Cost Principles and Procedures—Contracts with Commercial Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Washington Independent Telecommunications Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Association receives a portion of its funding from this Program, which is subject to audit. The ultimate determination of amounts received under this Program is generally based upon allowable costs reported to and subject to audit by supporting federal agencies. There is a contingency to refund any amounts received in excess of allowable costs. Management believes that disallowed costs, if any, will be immaterial to the schedule of the Program.
Title: Note 5 - Management’s Evaluation of Subsequent Events Accounting Policies: Note 3 - Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principle contained in Title 48 CFR Part 31.2, Contract Cost Principles and Procedures—Contracts with Commercial Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Washington Independent Telecommunications Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Association has evaluated subsequent events through June 30, 2025, the date on which the schedule was available for issuance.

Finding Details

FINDING 2024‐001 – Matching, Level of Effort, Earmarking; Significant Deficiency in Internal Control over Compliance U.S. Department of the Treasury Assistance Listing Numbers: 21.027 Federal Program Names: Coronavirus State and Local Fiscal Recovery Funds Program Award Year: Fiscal Year 2022 Criteria: Per 2 CFR § 200.306, the non-federal entity must provide required matching contributions in accordance with the terms and conditions of the federal award. Contributions must be verifiable from the recipient’s records, not be included as contributions for any other federal award, be necessary, and reasonable. Condition and context: During our testing of matching, level of effort, and earmarking, one reimbursement request included all expenditures for reimbursement on the A-19, though the 10% match should have been excluded in accordance with the grant agreement. This was caught by the State of Washington Department of Commerce and subsequently corrected prior to disbursement of the reimbursement request. This was the only instance of noncompliance noted within the sample of 28, of which 25 were randomly selected and 3 were supplemented as they were material to the program. Questioned costs: None. Effect: Without internal controls that are designed and implemented appropriately, an error could occur and result in questioned costs or the need to repay a portion of the federal award. Cause: This was very early in the process of managing federal funding for the Association. Internal controls were not adequate to catch the error, which occurred because of a lack of experience relating to grant management within the Association. Repeat finding: No. Recommendation: We recommend that management implement procedures to ensure the matching expenditures are appropriately excluded from the reimbursement requests prior to submission, and in compliance with 2 CFR § 200.306 prior to being reported. Additional training could benefit the Association’s understanding of grant management and improve internal control processes as a result. Views of responsible officials and planned corrective actions: Management has implemented a formalized checklist for preparing reimbursement requests, which includes a step to verify exclusion of the 10% match. Manual calculations are performed on each match submittal form to verify the requested amount excludes the 10% match. All reimbursement requests are now subject to a dual review and approval process before submission to the granting agency. This was implemented March 2024. Contacts: Betty Buckley, Executive Director Maranda Davis, Grant Management Assistant
FINDING 2024‐001 – Matching, Level of Effort, Earmarking; Significant Deficiency in Internal Control over Compliance U.S. Department of the Treasury Assistance Listing Numbers: 21.027 Federal Program Names: Coronavirus State and Local Fiscal Recovery Funds Program Award Year: Fiscal Year 2022 Criteria: Per 2 CFR § 200.306, the non-federal entity must provide required matching contributions in accordance with the terms and conditions of the federal award. Contributions must be verifiable from the recipient’s records, not be included as contributions for any other federal award, be necessary, and reasonable. Condition and context: During our testing of matching, level of effort, and earmarking, one reimbursement request included all expenditures for reimbursement on the A-19, though the 10% match should have been excluded in accordance with the grant agreement. This was caught by the State of Washington Department of Commerce and subsequently corrected prior to disbursement of the reimbursement request. This was the only instance of noncompliance noted within the sample of 28, of which 25 were randomly selected and 3 were supplemented as they were material to the program. Questioned costs: None. Effect: Without internal controls that are designed and implemented appropriately, an error could occur and result in questioned costs or the need to repay a portion of the federal award. Cause: This was very early in the process of managing federal funding for the Association. Internal controls were not adequate to catch the error, which occurred because of a lack of experience relating to grant management within the Association. Repeat finding: No. Recommendation: We recommend that management implement procedures to ensure the matching expenditures are appropriately excluded from the reimbursement requests prior to submission, and in compliance with 2 CFR § 200.306 prior to being reported. Additional training could benefit the Association’s understanding of grant management and improve internal control processes as a result. Views of responsible officials and planned corrective actions: Management has implemented a formalized checklist for preparing reimbursement requests, which includes a step to verify exclusion of the 10% match. Manual calculations are performed on each match submittal form to verify the requested amount excludes the 10% match. All reimbursement requests are now subject to a dual review and approval process before submission to the granting agency. This was implemented March 2024. Contacts: Betty Buckley, Executive Director Maranda Davis, Grant Management Assistant