FAC Explorer

Audit 376868

FY End
2025-06-30
Total Expended
$4.61M
Findings
2
Programs
2
Organization: Lakefront Management Authority (LA)
Year: 2025 Accepted: 2025-12-22
Auditor: ERICKSEN KRENTEL LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1166098 2025-002 Material Weakness Yes P
1166099 2025-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $66,398 Yes 1
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $64,516 Yes 0

Contacts

Name Title Type
ME4VZFCLAT67 Louis Capo Auditee
5043555990 Joshua Faubert Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the Lakefront Management Authority (the Authority) under programs of the federal government for the year ended June 30, 2025. The information in the 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Basis of Presentation The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when the Authority has met the qualifications for the respective grants. Accrued and Deferred Reimbursement Various reimbursement procedures are used for federal awards received by the Authority. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable expenditures over cash reimbursements and expenditures will be reversed in the remaining grant period. Pass-Through Entity Information Pass-through entity identifying numbers are presented where available. Payments to Subrecipients There were no payments to subrecipients for the fiscal year ended June 30, 2025.
The Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The FEMA federal grant expenditures are reported on the SEFA when (a) FEMA has approved the project worksheet (PW) and (b) eligible expenditures have been incurred. For the year ended June 30, 2025, FEMA approved $2,152,713 of eligible expenditures which were incurred during the year ended June 30, 2024.

Finding Details

Finding 2025-002
Criteria: According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity related to the federal award pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of Federal awards, such as expenditure/expense transactions associated with grants. For FEMA grants, non-federal entities must record expenditures on the SEFA when (1) FEMA has approved the nonfederal entity’s project, and (2) the non-federal entity has incurred the eligible expenditures. FEMA’s approval of a subaward is indicated when FEMA obligates the federal share of the eligible project cost to the recipient Federal awards expended in years subsequent to the fiscal year in which the project is approved are to be recorded on the non-federal entity’s SEFA in those subsequent years. Condition: The Authority's expenditures relating to FEMA awards obligated during the current fiscal year did not include expenditures incurred during previous fiscal years. Effect: The Authority's expenditures were understated which could have impaired proper major program determination for testing and caused a misstatement of the SEFA. Cause: The Authority experienced turnover in its grants administrator position, which led to a loss of institutional knowledge and reduced continuity in its grant management processes. As a result, the Authority faced increased difficulty complying with the unique reporting requirements applicable to FEMA awards. Recommendation: We recommend that the Authority enhance its grants administration processes by establishing formal, written procedures that address the unique reporting requirements of FEMA awards. The Authority should ensure that staff responsible for grant management receive sufficient training and that cross-training is in place to mitigate the effects of future turnover. These steps will help preserve institutional knowledge, promote consistent application of required procedures, and improve compliance with FEMA reporting standards. Views of Responsible Officials: Management agrees with the finding and will implement controls to ensure all awards are included, as well as correct going forward. See Management’s Corrective Action Plan for further details.