FAC Explorer

Audit 36672

FY End
2022-12-31
Total Expended
$2.37M
Findings
2
Programs
4
Organization: Metropolitan Economic Development Association (MN)
Year: 2022 Accepted: 2023-06-27
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33550 2022-004 Significant Deficiency - L
609992 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.08M Yes 1
59.062 Intermediary Loan Program $636,032 - 0
11.805 Mbda Business Center $217,808 - 0
59.005 Small Business Development Center Program $60,000 - 0

Contacts

Name Title Type
D4AEJBK74GM5 Nelly Chick Auditee
6122596593 Stacey Nelson Auditor
No contacts on file

Notes to SEFA

Title: Loan Programs Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance, plus advances made on the loan during the year. The outstanding balance at December 31, 2022, was $0.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Metropolitan Economic Development Association (Meda) under programs of the Federal Government for the year ended December 31, 2022. The information 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 the operations of Meda, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Meda.

Finding Details

Finding 2022-004
2022-004 Department of Treasury Federal Financial Assistance Listing 21.024, Award 21RRP056335 COVID-19 Community Development Financial Institutions Rapid Response Program (CDFI RRP) Reporting Significant Deficiency in Internal Control over Compliance Criteria : CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There was no formal documentation of review prior to submission for two reports selected for testing. Cause: Meda has designed internal controls over these areas; however, the controls were not formally documented. Effect: Failure to perform an independent review of reporting could result in a reasonable possibility that Meda would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context: Three reporting submissions out of six total reports were selected for testing for the program. Repeat Finding From Prior Years: No Recommendation: We recommend the procedures related to reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
2022-004 Department of Treasury Federal Financial Assistance Listing 21.024, Award 21RRP056335 COVID-19 Community Development Financial Institutions Rapid Response Program (CDFI RRP) Reporting Significant Deficiency in Internal Control over Compliance Criteria : CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There was no formal documentation of review prior to submission for two reports selected for testing. Cause: Meda has designed internal controls over these areas; however, the controls were not formally documented. Effect: Failure to perform an independent review of reporting could result in a reasonable possibility that Meda would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context: Three reporting submissions out of six total reports were selected for testing for the program. Repeat Finding From Prior Years: No Recommendation: We recommend the procedures related to reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.