Audit 409234

FY End

2024-12-31

Total Expended

$9.03M

Findings

1

Programs

1

Organization: GREAT NORTHWEST WHOLESALE WATER COMMISSION (MO)

Year: 2024 Accepted: 2026-08-17

Auditor: HOOD AND ASSOCIATES CPAS PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1227059	2024-001	Material Weakness	Yes	P

ALN	Program	Spent	Major	Findings
10.760	WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES	$9.03M	Yes	1

Contacts

Name	Title	Type
ML93E1HKXES7	Jerri Dearmont	Auditee
6605825121	Michael Keenan	Auditor
No contacts on file

Notes to SEFA

The Great Northwest Wholesale Water Commission (the Commission) is the recipient of one federal award. The interim financing is a pass through from the Missouri Public Utilities Commission which is secured by a commitment of permanent financing by the United States Department of Agriculture Rural Department (the Rural Department). The Commission also has a conditional letter of commitment for $7,027,210 of additional grants from the Rural Department.

The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Commission and is presented on the accrual basis of accounting. The information presented in this schedule is in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Local cost sharing, as defined by Title 2 CFR Part 200, Subpart D, Section 200.306 is required by certain federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditure is presented in the Schedule of Expenditures of Federal Awards.

Grantor agencies reserve the right to conduct additional audits of the Commission’s grant program for economy and efficiency and program results that may result in disallowed costs to the Commission. However, management does not believe such audits would result in any disallowed costs that would be material to the Commission’s financial position at December 31, 2024.

The Commission does not allocate indirect costs and therefore has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

As of December 31, 2024, the Commission has an outstanding interim loan balance of $39,918,000 with the Missouri Public Utilities Commission.

Finding Details

Finding 2024-001

Federal Program: Direct - USDA Rural Utilities Service award; ALN 10.760, 'Water and Waste Disposal Systems for Rural Communities' (Single Audit / Uniform Guidance) Condition: The Great Northwest Wholesale Water Commission did not complete and submit its reporting package, including the SEFA and the single audit report, to the Federal Audit Clearinghouse within nine months of the fiscal year end. Questioned Costs: None. Criteria: Under 2 CFR §200.512, the audit must be completed, and the data collection form and reporting package must be submitted within 30 calendar days after receipt of the auditor's report, or nine months after the fiscal year end, whichever is earlier. Context / Cause: The Commission was not aware that its federal award expenditures exceeded the $750,000 single audit threshold under 2 CFR §200.501 and did not engage auditors until November 2025. As a result, the single audits for the years ended December 31, 2022, 2023, and 2024 are being performed concurrently and will be submitted to the Federal Audit Clearinghouse upon completion. Effect: Non-compliance with federal filing deadlines, which can place the entity on a federal risk-status list or jeopardize future grant funding eligibility. Recommendation: Management should implement a strict year-end financial closing schedule and engage external auditors early to ensure the SEFA is compiled, reconciled, and audited on time. Views of Responsible Officials: Management agrees with the finding and has established a timeline to complete future filings prior to the statutory deadline.