FAC Explorer

Audit 414405

FY End
2025-06-30
Total Expended
$950,015
Findings
1
Programs
4
Organization: Region Nine Development Commission (MN)
Year: 2025 Accepted: 2026-10-01
Auditor: ABDO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1239705 2025-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $865,595 Yes 1
14.265 RURAL CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING GRANTS $48,167 Yes 0
10.182 PANDEMIC RELIEF ACTIVITIES: LOCAL FOOD PURCHASE AGREEMENTS WITH STATES, TRIBES, AND LOCAL GOVERNMENTS $22,412 Yes 0
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $13,841 Yes 0

Contacts

Name Title Type
FJPDL26NDNM5 Jessica Beyer Auditee
5076469631 Thomas Olinger Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all Federal award programs of the Region Nine Development Commission, (the Commission), Mankato, Minnesota. The Commission's reporting entity is defined in Note 1A to the Commission's financial statements. 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 Audit Requirements for Federal Awards (Uniform Guidance). All Federal awards received directly from Federal agencies as well as Federal awards passed through to other government agencies are included on the schedule.
Pass-through entity identifying numbers, if any, are presented where available.
Federal expenditures presented in this schedule were provided to subrecipients as noted.

Finding Details

Finding 2025-001
2025-001 Federal Awards Internal Control Federal Agency: U.S. Department of Commerce Program Name: Economic Adjustment Assistance Revolving Loan Fund ALN: 11.307 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303 requires recipients to establish and maintain effective internal controls over Federal awards that provide reasonable assurance the entity is managing the award in compliance with Federal statutes, regulations, and terms and conditions of the award. EDA grant agreements require periodic financial and performance reports to be complete, accurate, supported, and submitted timely. Condition: During testing of reporting requirements for the Economic Adjustment Assistance program, we noted that reports submitted to the federal agency were not adequately reviewed prior to submission. Specifically, information included in the report did not agree to the underlying accounting records and supporting documentation, resulting in errors in amounts reported to the federal awarding agency. Questioned Costs: None. Context: As part of our evaluation of internal controls over compliance and compliance with Uniform Guidance, we assessed whether the Commission had documented policies and procedures governing the administration of Federal awards. Cause: The entity lacked documented review procedures to ensure reports were reconciled to the general ledger and supporting schedules before submission. Management relied on a single individual to prepare and submit reports without an independent review. Effect: Federal reports may contain inaccurate information, increasing the risk that federal agencies make decisions based on erroneous data and resulting in noncompliance with federal reporting requirements. Recommendation: We recommend management establish formal review controls over federal reporting. Reports should be reconciled to the accounting records and supporting documentation prior to submission, and evidence of supervisory review should be retained. Repeat Finding: No. View of Responsible Officials: Acknowledged.