FAC Explorer

Audit 400760

FY End
2025-07-31
Total Expended
$1.90M
Findings
3
Programs
1
Organization: Moore County Development, Inc. (TX)
Year: 2025 Accepted: 2026-05-06
Auditor: JOHNSON & SHELDON PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1213917 2025-001 Material Weakness Yes N
1213918 2025-002 Material Weakness Yes N
1213919 2025-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $1.90M Yes 3

Contacts

Name Title Type
SJ1GUKZSQ8S1 Lisa Underwood Auditee
8069356866 Chris Pace Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Moore County Development, Inc. (the Organization) under programs of the federal government for the year ended July 31, 2025 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 position, changes in financial position or cash flows of the Organization. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The United States Department of Commerce guidelines provide the criteria for the reporting of federal expenditures. The value of the CARES Revolving Loan Fund (RLF) is calculated as follows: Outstanding balance of the CARES RLF loans $ 1,235,982 Plus: Net of Cash and Investments Cash and cash equivalents 637,196 Less: Economic Development Administration (EDA) note payable ( -) Plus: Total Expenses 34,140 Less: Bad Debt Expense ( -) Value of the CARES Revolving Loan Fund $ 1,907,318

Finding Details

Finding 2025-001
2025-001 - Internal Controls surrounding Reporting compliance requirement Criteria: The Uniform Guidance requires that management of Moore County Development, Inc. (the Organization) implement a system of internal controls over compliance for the direct and material program compliance requirements. Condition and Context: During our audit, we noted that management of the Organization had not implemented a system of internal controls applicable to the Organization’s compliance with the Reporting requirement. Cause: Management of the Organization has not implemented internal controls surrounding the Organization’s compliance with reporting requirements. Effect of Potential Effect: Without implementation of a properly operating system of internal controls over compliance, the Organization could become noncompliant with grant requirements. Recommendation: We recommend management of the Organization implement a system of internal controls over compliance, to specifically include the Board of Director’s review and documentation of review of compliance reports submitted by management. Responsible Official’s Response: In progress. Management of the Organization will present compliance reports to the Board of Directors for review and approval prior to submission.
Finding 2025-002
2025-002 - Internal Controls surrounding Special Tests and Provisions compliance requirement Criteria: The Uniform Guidance requires that management of Moore County Development, Inc. (the Organization) implement a system of internal controls over compliance for the direct and material program compliance requirements. Condition and Context: During our audit, we noted that management of the Organization had not implemented a system of internal controls applicable to the Organization’s compliance with the Special Tests and Provisions requirement. Cause: Management of the Organization has not implemented internal controls surrounding the Organization’s compliance with special tests and provisions requirements. Effect of Potential Effect: Without implementation of a properly operating system of internal controls over compliance, the Organization could become noncompliant with grant requirements. Recommendation: We recommend management of the Organization implement a system of internal controls over compliance, to specifically include the Board of Director’s review and documentation of review of GAAP accounting requirements for allowance for expected credit loss provisions. Responsible Official’s Response: Management of the Organization has elected not to adopt GAAP accounting requirements for allowance for expected credit loss provisions.
Finding 2025-003
2025-003 - Noncompliance with Special Tests and Provisions compliance requirement Criteria: The Uniform Guidance requires that management of Moore County Development, Inc. (the Organization) to follow compliance requirements for GAAP accounting, including specific requirements for accounting for credit loss provisions. Condition and Context: During our audit, we noted that management of the Organization had not adopted GAAP accounting requirements for credit loss provisions. Cause: Management of the Organization has not adopted GAAP accounting requirements for credit loss provisions. Effect of Potential Effect: The Organization is not following GAAP accounting requirements for credit loss provisions. Recommendation: We recommend management of the Organization evaluate the GAAP requirements for accounting for credit loss provisions. Responsible Official’s Response: Management of the Organization has elected not to adopt GAAP accounting requirements for allowance for credit loss provisions.