Audit 398386

Criteria: In accordance with 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: For the year ended December 31, 2024, AEA did not maintain support for salary based on work performed. Salary and wages were charged based on a flat rate for all employees. Cause: The salaries and wages are not charged based on actual work performed. Effect: AEA is not in compliance with 2 CFR 200.430. Questioned Costs: None reported. Context: A random sampling of the federal expenditures. Repeat Finding: This finding was not corrected. See finding item 2023-101 in the prior year findings. Recommendation: We recommend that AEA establish a system to determine and document the time spent and amount charged to their programs. View of Responsible Officials: Refer to management’s corrective action plan.

Criteria: In accordance with 2 CFR 200.405, costs must be allocated to the projects based on the proportional benefit. If this cannot be determined, costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Condition: For the year ended December 31, 2024, AEA did not maintain support for their allocation methodology for 9 cash disbursement items selected. Allocations amounts were determined by the current year’s management. Cause: The expense allocations may not be appropriate. Effect: AEA is not in compliance with 2 CFR 200.405. Questioned Costs: None reported. Context: A random sampling of the federal expenditures. Repeat Finding: This finding was not corrected. See finding item 2023-102 in the prior year findings. Recommendation: We recommend that AEA review and reestablish their allocation methodology for allocated costs. View of Responsible Officials: See management’s corrective action plan.

Criteria: Uniform Guidance 2 CFR Part 200.318 require that AEA have documented procurement procedures for procurement transactions under a Federal award or subaward. Condition: AEA follows the Weather Assistance Program Policies and Procedures Manual which has a procurement and suspension and debarment policy; however, AEA did not formally adopt a written policy that complies with the Office of Management and Budget’s (the “OMB”) requirements for procurement suspension and debarment. Cause: AEA did not formally adopt a written policy that complies with OMB requirements for procurement suspension and debarment. Effect: AEA is not in compliance with 2 CFR Part 200.317–200.327 of the Uniform Guidance. Questioned Costs: None reported. Context: Not applicable. Repeat Finding: Not applicable. Recommendation: Although there were no purchases in the audit period meeting the threshold for competitive bidding, we recommend that the AEA formally adopt a written procurement and suspension and debarment policy in accordance with the requirements. View of Responsible Officials: See management’s corrective action plan.