FAC Explorer

Audit 372132

FY End
2021-12-31
Total Expended
$1.06M
Findings
1
Programs
1
Organization: Levee Road Water Association, Inc. (KY)
Year: 2021 Accepted: 2025-11-13
Auditor: STURGEON COLLINS CPAS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1162314 2021-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $1.06M Yes 1

Contacts

Name Title Type
LLK8D39NQDK5 Brenda Murphy Auditee
8594986980 Rita Morgan Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of Levee Road Water Association, Inc. under programs of the federal government for the year ended December 31, 2021. 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 Levee Road Water Association, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Levee Road Water Association, Inc.
Expenditures reported on the schedule are reported 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.
Levee Road Water Association, Inc. has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Levee Road Water Association, Inc.'s federal awards consist of grant and loan funds which were used for a construction project. As of December 31, 2021, the outstanding balance of the loan associated with the project was $1,050,000.

Finding Details

Finding 2021-003
Criteria: Per the United States Department of Agriculture (USDA) Rural Development (RD) Water and Waste Loans and Grants Rural Utilities Service (RUS) guidelines subsection 1780.47(a), "Borrowers are required to provide RUS an annual audit or financial statements." RD guidelines state that an annual audit under the Single Audit Act is required if you spend $750,000 or more in federal financial assistance per fiscal year. Further, per subsection 1780.47(d), "audits are to be submitted to the processing office as soon as possible after receipt of the auditor's report but no later than nine months after the end of the audit period." Condition: The Association's fiscal year in which more than $750,000 of federal funds were expended ended on December 31, 2021. Per the USDA RD RUS guidelines, the auditor's report should have been completed and submitted to USDA/RD by September 30, 2022. The audit report was not completed until October 2025. Cause: The Association did not have controls in place to ensure that the audit was completed and submitted in compliance with the USDA/RD requirement. Effect: This condition creates a weakness in internal controls which could result in noncompliance with loan and/or grant reporting compliance requirements. Views of responsible officials and planned corrective actions: The Association concurs with the finding. The Association has committed to ensuring that any future reporting compliance requirements related to the expenditure of federal funds are completed on a timely basis.