FAC Explorer

Audit 366982

FY End
2024-12-31
Total Expended
$2.09M
Findings
2
Programs
3
Organization: Technology for Rural Enhancement of Communities (SD)
Year: 2024 Accepted: 2025-09-22
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1154096 2024-001 Material Weakness Yes A
1154097 2024-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
93.600 Head Start $1.18M Yes 1
10.766 Community Facilities Loans and Grants $128,149 Yes 0
10.555 National School Lunch Program $33,002 Yes 0

Contacts

Name Title Type
MXNAS3U9ULC7 Angela Vissia Auditee
6057238837 Jean Schroeder Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended December 31, 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 the operations of the Organization, it is not intended to and does not present the financial positions, changes in net assets, or cash flows of the Organization. The Schedule of Expenditures of Federal Awards is presented 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.
The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Community Facilities Loans and Grants balances outstanding at the end of the audit period were $124,189.
The amounts for the National School Lunch Program reflect cash received. Federal reimbursements are based on approved rates for services provided rather than reimbursement for specific expenditures.

Finding Details

Finding 2024-001
#2024-001 FINDING: Activities Allowed or Unallowed Federal Program Affected: Head Start (ALN 93.600) Compliance Requirement: Activities Allowed or Unallowed Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: The Program requires the Organization to accurately monitor and allocate administrative costs charged to the grant. During the year, the Organization allocated 15.4 percent of total grant costs to administrative expenses. This exceeds the allowable limit of 15 percent, as specified by the grant requirements. Criteria and Effect: These excess administrative costs were not identified as a result of the Organization’s existing internal controls, and therefore, resulted in noncompliance with the federal program. However, this did not result in a material misstatement of the Organization’s financial statements. Repeat Finding from Prior Year: N/A Recommendation: We recommend the Organization review and revise its current administrative cost allocations to ensure they reflect actual operations. Allocations should also be updated to account for any changes in employee responsibilities. Additionally, management should perform thorough reviews of administrative cost allocations throughout the grant period to ensure accuracy and compliance with program requirements. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.
Finding 2024-001
#2024-001 FINDING: Activities Allowed or Unallowed Federal Program Affected: Head Start (ALN 93.600) Compliance Requirement: Activities Allowed or Unallowed Questioned Costs: No known or likely questioned costs exceeding $25,000. Condition and Cause: The Program requires the Organization to accurately monitor and allocate administrative costs charged to the grant. During the year, the Organization allocated 15.4 percent of total grant costs to administrative expenses. This exceeds the allowable limit of 15 percent, as specified by the grant requirements. Criteria and Effect: These excess administrative costs were not identified as a result of the Organization’s existing internal controls, and therefore, resulted in noncompliance with the federal program. However, this did not result in a material misstatement of the Organization’s financial statements. Repeat Finding from Prior Year: N/A Recommendation: We recommend the Organization review and revise its current administrative cost allocations to ensure they reflect actual operations. Allocations should also be updated to account for any changes in employee responsibilities. Additionally, management should perform thorough reviews of administrative cost allocations throughout the grant period to ensure accuracy and compliance with program requirements. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.