FAC Explorer

Audit 413272

FY End
2025-12-31
Total Expended
$3.90M
Findings
2
Programs
1
Organization: Hancock Rural Telephone Corporation (IN)
Year: 2025 Accepted: 2026-09-29
Auditor: ALDRICH CPAS + ADVISORS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1238406 2025-001 Material Weakness Yes B
1238407 2025-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.90M Yes 2

Contacts

Name Title Type
NJMNZEV887R3 Dana Drew Auditee
3173232233 Scott Daniels Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of NineStar Connect and Subsidiaries under programs of the federal government for the year ended December 31, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 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 NineStar Connect and Subsidiaries, it is not intended to and does not present the consolidated balance sheet, consolidated statements of operations and comprehensive income, changes in member’s equity, or cash flows of NineStar Connect and Subsidiaries.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NineStar Connect and Subsidiaries did not elect to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Finding 2025-001 Identification of the federal program: 21.027 - Coronavirus State and Local Fiscal Recovery Funds Noncompliance over policies Criteria: 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition: The Cooperative has not developed written procedures for determining the allowability of costs. Cause: Management did not have written procedures for determining the allowability of costs. Effect: Unallowable costs could be charged to the program. Questioned costs: None Recommendations: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of responsible officials: Management understands and agrees with the finding and has developed written procedures to be used for any future grants.
Finding 2025-002
Finding 2025-002 Identification of the federal program: 21.027 - Coronavirus State and Local Fiscal Recovery Funds Noncompliance and Significant Deficiency in internal controls over cutoff of expenditures reported on the schedule of expenditures and federal awards Criteria: 2 CFR 200.510(b) requires that the Schedule of Expenditures of Federal Awards (SEFA) present total Federal awards expended in the fiscal year. Condition: The Cooperative’s SEFA for the fiscal year ended December 31, 2025 included federal award expenditures related to the prior fiscal year, resulting in improper cut-off of expenditures reported. Cause: The entity did not have adequate controls in place to ensure that only expenditures incurred within the current fiscal year were included in the SEFA. Effect: The current year SEFA included prior year expenditures, resulting in an overstatement of the expenditures reported on the SEFA in the current year. Questioned costs: None Recommendations: The entity should implement and document procedures to ensure proper cut-off of federal award expenditures, including a review of supporting documentation to verify expenditures are recorded in the correct fiscal period prior to preparation of the SEFA. Additionally, management should perform a detailed review of the SEFA before submission to ensure completeness and accuracy. Views of responsible officials: Management understands and agrees with the finding. Management will ensure that appropriate controls surrounding cut-off of federal award expenditures are in place to comply with any future grants.