FAC Explorer

Audit 40957

FY End
2022-08-31
Total Expended
$10.23M
Findings
2
Programs
1
Organization: Village Cooperative of Greeley (CO)
Year: 2022 Accepted: 2023-02-05
Auditor: Mahoney Ulbrich Christiansen & Russ PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46088 2022-001 Significant Deficiency Yes P
622530 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.126 Mortgage Insurance_cooperative Projects $10.23M Yes 1

Contacts

Name Title Type
DKTHSKP8BUF3 Mark Millard Auditee
6517285041 Lance Brock Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of the Cooperative under programs of the federal government for the year ended August 31,2022. 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 AuditRequirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the Cooperative, it is not intended to and does not present the financialposition, results of operations, or cash flows of the Cooperative. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal expenditures for the mortgage insurance program represent the principal balance of the insured loan as of August 31, 2021. The loan is outstanding from a previous period. The federal government imposes continuing compliance requirements on this loan. The loan balance at August 31, 2022 was $10,104,243.

Finding Details

Finding 2022-001
2022-001 ? Significant deficiency ? segregation of duties Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The Cooperative has one employee that performs day to day management and accounting functions. Cause - The size of the Cooperative?s accounting and administrative staff precludes certain internal controls that would be preferred if the office staff were large enough to provide optimum segregation of duties. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of Cooperative assets. Repeat Finding - This finding was reported in the prior period as finding 2021-001. Recommendation - The Board of Directors should remain involved in the financial affairs of the Cooperative on a regular ongoing basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation. Auditee?s comment - The Board of Directors is and will remain involved in the financial affairs of the Cooperative. Status - Outstanding Auditor?s non-compliance code - S - Internal Control Deficiencies SECTION III ? FINDINGS AND QUESTIONED COSTS ?MAJOR FEDERAL AWARD PROGRAM AUDIT No matters were reported.
Finding 2022-001
2022-001 ? Significant deficiency ? segregation of duties Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The Cooperative has one employee that performs day to day management and accounting functions. Cause - The size of the Cooperative?s accounting and administrative staff precludes certain internal controls that would be preferred if the office staff were large enough to provide optimum segregation of duties. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of Cooperative assets. Repeat Finding - This finding was reported in the prior period as finding 2021-001. Recommendation - The Board of Directors should remain involved in the financial affairs of the Cooperative on a regular ongoing basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation. Auditee?s comment - The Board of Directors is and will remain involved in the financial affairs of the Cooperative. Status - Outstanding Auditor?s non-compliance code - S - Internal Control Deficiencies SECTION III ? FINDINGS AND QUESTIONED COSTS ?MAJOR FEDERAL AWARD PROGRAM AUDIT No matters were reported.