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2025-004: Significant Deficiency/Non-Compliance - Audit Completion and Submission to the Federal Governmental Compliance Area: Reporting (L) Views of Responsible Officials and Planned Corrective Actions: The Campbell County Board of Commissioners (Board) concurs with this finding and the auditor's r...
2025-004: Significant Deficiency/Non-Compliance - Audit Completion and Submission to the Federal Governmental Compliance Area: Reporting (L) Views of Responsible Officials and Planned Corrective Actions: The Campbell County Board of Commissioners (Board) concurs with this finding and the auditor's recommendation to submit the required information in a timely manner in order to meet the nine-month submission deadline to the Federal Clearinghouse. The Board recognizes that failing to submit the audit to the Federal Clearinghouse violates federal grant terms, which may result in the withholdings of funds or the termination of awards, and will prioritize submitting the audit by the deadline to ensure compliance. Following the Fiscal Year Ended June 30, 2023, the following changes have been made to address factors that have contributed to the delays in audit submissions and improve operational efficiency: - The responsibility for coordinating audits has been assigned to the Office of the Commissioners to ensure that the audit remains on schedule. - The Chief Finance Executive position has been reinstated in the Office of Commissioners to provide guidance and support to department heads and financial personnel, ensuring the effective administration and implementation of fiscal policies, plans, and programs. - Training sessions are being offered to staff to improve their skills with the county's financial system. Training will enable them to use the system effectively and generate better reports for the audit process. - Implementation of cross-training for staff involved in the audit process to minimize the loss of institutional knowledge. The audit for the Fiscal Year Ended June 30, 2026, will be submitted prior to the federal deadline of March 31, 2027. The following individuals can be contacted for further information on the status of this corrective action: Clerk's Office: Cindy Lovelace, County Clerk Treasurer's Office: Rachael Knust, County Treasurer Commissioner's Office: Juli Pierce, Chief Finance Executive
Recommendation: The auditor recommends the District implement controls to ensure that the applications used to determine eligibility for participation within the program be retained for three years as required by the relevant grant requirements. Action Taken: The District will strengthen internal co...
Recommendation: The auditor recommends the District implement controls to ensure that the applications used to determine eligibility for participation within the program be retained for three years as required by the relevant grant requirements. Action Taken: The District will strengthen internal controls by implementing procedures, training and monitoring to ensure all eligibility applications and supporting documentation are properly maintained and retained for a minimum of three years in accordance with grant requirements and are available for audit review. Responsible Person: Madalyn Templeton, Student Nutrition Supervisor Anticipated Completion Date: June 30, 2026
Recommendation: The auditor recommends the District implement controls to ensure student files are complete and accurate and conduct training for Title I personnel and school sites over the appropriate level of written documentation required for different situations. Action Taken: The District will ...
Recommendation: The auditor recommends the District implement controls to ensure student files are complete and accurate and conduct training for Title I personnel and school sites over the appropriate level of written documentation required for different situations. Action Taken: The District will implement controls to ensure student files are complete and accurate and conduct training for Title I personnel and school sites over the appropriate level of written documentation required for different situations. Responsible Person: Michelle Hill, Student Information Coordinator Anticipated Completion Date: June 30, 2026
Segregation of Duties - Auditor’s recommendation: We recognize the Borough has attempted to segregate duties to the best of its ability. The Borough should continue to seek opportunities to segregate duties including involvement from Council Members. Borough’s Response: Because of the limited number...
Segregation of Duties - Auditor’s recommendation: We recognize the Borough has attempted to segregate duties to the best of its ability. The Borough should continue to seek opportunities to segregate duties including involvement from Council Members. Borough’s Response: Because of the limited number of personnel in the office, the Borough recognizes the limitations with regards to segregation of duties and therefore will consider mitigating controls. The Borough will continue to seek involvement from the Borough Council in terms of reviewing financial information.
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Auditor’s Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the pronouncement, the Borough should continue to review and accept both proposed adjusting journal en...
Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Auditor’s Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the pronouncement, the Borough should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. Borough’s Response: The Borough has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the Borough believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the Borough considers such assistance provided by the auditors to be the most cost-effective manner to prepare such information. The Borough will also ensure that in the future all transactions will be properly reflected in the accounting software.
2025-001 Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.517 Recommendation: The auditor recommends that the Company continues to work with HUD to obtain access to the REAC system so that its annual filings can be submitted. Explanation of disagreement with audit finding: ...
2025-001 Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.517 Recommendation: The auditor recommends that the Company continues to work with HUD to obtain access to the REAC system so that its annual filings can be submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Company is continuing its efforts to gain access to the REAC system. Name(s) of the contact person(s) responsible for corrective action: Ryan Santarella If the United States Department of Housing and Urban Development has questions regarding this plan, please call Ryan Santarella at 518-567-5053.
2025-001 Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.517 Recommendation: The auditor recommends that the Company continues to work with HUD to obtain access to the REAC system so that its annual filings can be submitted. Explanation of disagreement with audit finding: ...
2025-001 Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.517 Recommendation: The auditor recommends that the Company continues to work with HUD to obtain access to the REAC system so that its annual filings can be submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Company is continuing its efforts to gain access to the REAC system. Name(s) of the contact person(s) responsible for corrective action: Ryan Santarella If the United States Department of Housing and Urban Development has questions regarding this plan, please call Ryan Santarella at 518-567-5053.
Corrective Action Plan - Finding 2025-01: Non-Compliance with Federal Filing Deadlines To prevent a recurrence, Saints Joachim & Anne Nursing & Rehabilitation Center has updated its internal financial reporting calendar to include a "Hard Close" date for all audit activities. Effective immediately, ...
Corrective Action Plan - Finding 2025-01: Non-Compliance with Federal Filing Deadlines To prevent a recurrence, Saints Joachim & Anne Nursing & Rehabilitation Center has updated its internal financial reporting calendar to include a "Hard Close" date for all audit activities. Effective immediately, the Controller is required to initiate the upload of the Data Collection Form and all related financial statements to the Federal Audit Clearinghouse no later than September 15th of each year. This 15-day buffer will ensure that any technical difficulties with the FAC portal or administrative delays do not impact our compliance with federal reporting deadlines. Contact: Christine D'Ottavio, CFO Saints Joachim & Anne Nursing and Rehabilitation Center, 2720 Surf Avenue, Brooklyn, New York 11224 Date: April 28, 2026
Finding 2025-006: Reporting and Expenditure Cutoff - Material Weakness Corrective Action Plan: A Federal grant spreadsheet for each grant year is completed for each award. In addition, the following policies will be implemented. • Implement a Grant Reporting and Period-of-Performance Review Procedur...
Finding 2025-006: Reporting and Expenditure Cutoff - Material Weakness Corrective Action Plan: A Federal grant spreadsheet for each grant year is completed for each award. In addition, the following policies will be implemented. • Implement a Grant Reporting and Period-of-Performance Review Procedure. • Maintain a reporting calendar for each Federal and State award. • Before submission, confirm the grant reporting period, reconcile expenditures to the general ledger, verify transaction dates and period of performance, review receipts/reimbursement activity, and remove subsequent-period activity. • Require documented supervisory review and approval before submission. • Set internal report preparation deadlines at least 10 business days before the external due date whenever possible. Responsible Official: Chief Executive Officer, Chief Financial Officer, Financial Coordinator, Grant Program Director and Grant Administrative Support Anticipated Completion Date: 09/25/2026
Finding 2025-005: Inadequate Controls Over Federal Reimbursement Draw Requests - Significant Deficiency Corrective Action Plan: For each SAMHSA draw request, budget, general ledger and payroll expenditures are reviewed prior to PMS funding requests and approved by CEO. To further document this proce...
Finding 2025-005: Inadequate Controls Over Federal Reimbursement Draw Requests - Significant Deficiency Corrective Action Plan: For each SAMHSA draw request, budget, general ledger and payroll expenditures are reviewed prior to PMS funding requests and approved by CEO. To further document this process, below actions will be implemented. • Implement a detailed Federal Reimbursement Draw Request Procedure. • Require a detailed expenditure schedule showing vendor/payee, invoice or payroll reference, expenditure date, payment date, amount, grant/program, general ledger account, and grant period. • Include only incurred, paid, allowable, and allocable expenditures in reimbursement requests. • Retain invoices, payroll records, proof of payment, general ledger support, and other documentation with each draw package. • Require preparer certification and an independent documented review before submission. • Verify payment status, allowability, grant coding, period of performance, and reconciliation to the accounting system before submission. Responsible Official: Chief Executive Officer, Chief Financial Officer, Financial Coordinator, Grant Program Director and Grant Administrative Support Anticipated Completion Date: 09/25/2026
Finding 2025-004: Inadequate Supporting Documentation and Review Controls Over Federal Expenditures and Payroll - Material Weakness Corrective Action Plan: • Require complete supporting documentation for federally funded expenditures, including invoices/receipts, authorization, contracts when applic...
Finding 2025-004: Inadequate Supporting Documentation and Review Controls Over Federal Expenditures and Payroll - Material Weakness Corrective Action Plan: • Require complete supporting documentation for federally funded expenditures, including invoices/receipts, authorization, contracts when applicable, proof of payment, grant and general ledger coding, allocation support, and supervisory approval. • Do not charge unsupported expenditures to Federal awards. • Require supervisor review of employee time records and grant payroll allocations. • Require CFO review of the payroll register and documented CEO approval of the final payroll summary when required by policy. • Designate an authorized alternate approver in writing when the CEO is unavailable, consistent with organizational policy. • Maintain centralized electronic records by fiscal year, funding source, grant, and transaction type. Responsible Official: Chief Executive Officer, Chief Financial Officer, Grant Program Director, HR Manager and Supervisors Anticipated Completion Date: 09/25/2026
Finding 2025-003: Matching Requirement Not Monitored - Material Weakness Coffective Action Plan: Grant matching requirements were reviewed; however, adequate documentation was not presented. A Federal grant spreadsheet for each grant year is completed for each award. Match details will be included i...
Finding 2025-003: Matching Requirement Not Monitored - Material Weakness Coffective Action Plan: Grant matching requirements were reviewed; however, adequate documentation was not presented. A Federal grant spreadsheet for each grant year is completed for each award. Match details will be included in this spreadsheet with necessary documentation. Responsible Official: Chief Financial Officer Anticipated Completion Date: 08/24/2026
The reports have been changed and filed accordingly reflecting that the funds are being used for the municipal office renovation project.
The reports have been changed and filed accordingly reflecting that the funds are being used for the municipal office renovation project.
CONDITION: During my review of the District’s compliance with the laws and regulations related to filing its federal grant program ‘Quarterly Cash On Hand Reconciliations’, and ‘Final Expenditure Reports (FER)’, I noted that the School District did not file the required Quarterly Cash on Hand Reconc...
CONDITION: During my review of the District’s compliance with the laws and regulations related to filing its federal grant program ‘Quarterly Cash On Hand Reconciliations’, and ‘Final Expenditure Reports (FER)’, I noted that the School District did not file the required Quarterly Cash on Hand Reconciliations and required Final Expenditure Report (FER) for the 2024-2025 fiscal year Title 1 grant program within the required reporting timeframes as specified by the Pennsylvania Department of Education and the Uniform Guidance. CRITERIA: The Department of Education requires the completion of the Quarterly Cash on Hand Reconciliation by the 10th working day after each quarter, and submission of a ‘Final Expenditure Report’ (FER) within 30 days of expending all grant funding. In addition, Section 2 CFR 200.344 of the Uniform Guidance requires the submission of financial reports no later than 90 calendar days after the end date of the grant period for performance (or an earlier date as agreed-upon by the pass-through entity and subrecipient, which in this case is 30 days as required by PDE). RECOMMENDATION: I recommend that the District develop fiscal procedures to ensure that ‘Quarterly Cash on Hand Reconciliations’ and ‘Final Expenditure Reports’ for future fiscal years are completed and filed in a timely manner based on supporting financial information obtained from the District’s business office, in order to 1) comply with PDE reporting requirements for the District’s applicable federal programs, and 2) to avoid any future sanctions such as suspension of grant payments by PDE as a result of not filing these reports in a timely manner. These procedures should include, at a minimum, cross-training of business office personnel with regard to the completion of these reports so that the absence of one individual would not result in these reports not being filed in a timely manner. MANAGEMENT’S PLANNED CORRECTIVE ACTION: The School District will implement procedures for timely and accurate reporting of the Quarterly Cash on Hand Reconciliation Reports and Final Expenditure Report (FER). The financial information in the Quarterly Cash on Hand Reconciliation Report and FER will accurately reflect internal reporting contained in the School District’s general ledger according to the Manual of Accounting and Financial Reporting for Pennsylvania Local Educational Agencies and the PA Chart of Accounts. The timeframe for completion will commence during the later part of the 2025-2026 fiscal year and continue into the first half of 2026-2027 fiscal year until completed. These procedures will be applied going forward to ensure the accurate and timely filing of the required federal program Quarterly Cash on Hand Reconciliation Reports and the Final Expenditure Report (FER) for submission to the Pennsylvania Department of Education.
Finding #2025-003 – Material Weakness and Material Noncompliance – Allowable Costs. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract periods: 10/01/23 – 09/30/24; 10/01/24 – 09/30/2...
Finding #2025-003 – Material Weakness and Material Noncompliance – Allowable Costs. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract periods: 10/01/23 – 09/30/24; 10/01/24 – 09/30/25. Condition and context: M-AAA failed to submit its indirect cost rate application in 2024, which resulted in a lapse in an approved rate. At the direction of the program officer at the National Endowment for the Arts, M-AAA was directed to use the 10% de minimus rate; however, the billings were not adjusted for the change in indirect rates resulting in overbilling to the federal grants. Recommendation: Re-emphasize internal procedures for review of allowable indirect costs based upon an approved indirect cost rate or election to use 10% de minimus rate. Planned corrective action: M-AAA has elected to use de minimus rate approved by the National Endowment for the Arts (NEA). We reported the overbilling to the NEA and resolved the difference in the indirect costs that had been applied. Responsible officer: Todd Stein, CEO and Charley Young, Finance Director. Estimated completion date: March 2026.
Finding #2025-002 – Material Weakness and Other Noncompliance – Cash Management. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract period: 10/01/22 – 09/30/27. Condition and context:...
Finding #2025-002 – Material Weakness and Other Noncompliance – Cash Management. Applicable federal program: National Endowment for the Arts, Promotion of the Arts Grants to Organizations and Individuals, Assistance Listing #45.024, Annual contract period: 10/01/22 – 09/30/27. Condition and context: The federal contract with M-AAA is a 5-year grant with annual budget periods that end September 30 of each of the years in the contract thru 2027. M-AAA requested advances in the Spring of 2025 when there was uncertainty in the timing of future grant payments. At June 30, 2025, M‑AAA held approximately $578,000 in refundable advances, approximately $368,000 which was spent subsequent to year end for the period of July 1, 2025 to September 30, 2025. Recommendation: Re-emphasize internal procedures to ensure federal funds are not being held for an excess period of time. Planned corrective action: M-AAA was uncertain about the timing of future grant payments and requested advances in April 2025. Because payments to subrecipients were delayed, excess funds remained on hand at fiscal year-end and were distributed in the following fiscal year. With a stronger cash position in the new fiscal year, we have shifted to a reimbursement-based approach for cash requests. Advances will be requested only when grant payments are expected within 30 days and closely monitored to ensure close out. Responsible officer: Todd Stein, CEO and Charley Young, Finance Director. Estimated completion date: December 2025.
Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year ...
Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year – 2022 and 2023 Condition: During testing, it was noted that the semiannual performance reports required to be submitted during calendar year 2025 were not submitted by the required deadlines. The reports, which were due in January 2025 and July 2025, were not submitted until September 2025. As a result, the Grantee did not submit required financial and performance reports within the timeframe prescribed by the grant agreement and 2 CFR §§ 200.328 and 200.329. Additionally, management could not provide evidence of review for one of the reports. Planned Corrective Action: Departments that administer grants will establish and maintain a grant tracking process to identify required reporting, due dates, and personnel responsible for the completion and review of the required reporting. This tracking process will be documented and shared with the Controller’s Office. In addition, Departments will maintain documentation of the review and approval of reports as part of the grant documentation. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Matthew Kipp, Manager of Business Services; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: March 31, 2027
Reporting – Special Reports for FFATA and Subrecipient Monitoring Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 Awa...
Reporting – Special Reports for FFATA and Subrecipient Monitoring Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 Award Year – 2022 Condition: During testing of FFATA reporting requirements, it was noted that the City had one applicable first-tier subrecipient; however, the City did not report the subaward information in SAM.gov. Additionally, during testing of subrecipient monitoring, it was noted that the City did not communicate required federal award information or increase in funding to its sole subrecipient as required by 2 CFR § 200.332(a). Planned Corrective Action: The City corrected the FFATA reporting in SAM.gov and the reporting now includes the subaward information for the subrecipient. In addition, the City provided a letter to its sole subrecipient to communicate the required federal award information. Additional procedures will be implemented for Departments to identify subrecipients during the grant set up process with the Controller’s Office to ensure that FAFTA reporting is completed for required grants and subrecipients. Finally, the City will continue to work with the Legal Department to create subrecipient agreements and ensure that federal award information is detailed in the executed agreements. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: December 31, 2026
CASE FILE REVIEWS Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2505MN5ADM and 2505MN5MAP Award P...
CASE FILE REVIEWS Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2505MN5ADM and 2505MN5MAP Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: It is recommended the County perform internal case file reviews and implement standard documentation that will formalize the performed reviews. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will add additional documentation and specific casefile reviews will be implemented. Name of the contact person responsible for corrective action plan: Anne Lindseth, Health and Human Services Director Planned completion date for corrective action plan: December 31, 2026
RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) and Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.778 and 93.558 Pass-Through Agency: Minneso...
RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Grants to States for Medicaid (Medicaid Cluster) and Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.778 and 93.558 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Health Pass-Through Numbers: 2505MN5ADM, 2505MN5MAP, and 2501MNTANF Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Recommendation: It is recommended the County implement a quarterly review and reconciliation procedure to ensure that the population of participating workers included in each RMS listing agrees to the population of participating workers whose salaries and wages were recorded to the corresponding payroll accounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will strive to implement quarterly review and reconciliation procedures over the RMS listing and corresponding payroll accounts. Name of the contact person responsible for corrective action plan: Anne Lindseth, Health and Human Services Director Planned completion date for corrective action plan: December 31, 2026
Grant Reporting (SF-425 Submissions) Federal Agency Name: Department of Agriculture / Forest Service Assistance Listing Number: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Federal expenditures reported on Line 10e of the quarterly Federal Financi...
Grant Reporting (SF-425 Submissions) Federal Agency Name: Department of Agriculture / Forest Service Assistance Listing Number: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Federal expenditures reported on Line 10e of the quarterly Federal Financial Reports (SF-425) did not reconcile directly to the Cooperative’s general ledger records for the applicable reporting period, resulting in an understatement of reportable expenditures for that period. Views of Responsible Officials & Management Response: Management disagrees with the finding as a Material Noncompliance and Material Weakness. Management acknowledges a timing discrepancy existed between quarterly filings and standard accrual rules, but maintains this matter does not constitute material noncompliance or a material weakness for the following reasons: 1. Reliance on Explicit Federal Directives: While management acknowledges Uniform Guidance under 2 CFR 200 requires financial reporting to align directly with accounting records, the Cooperative prepared and submitted the SF-425 reports in strict good-faith compliance with explicit, written instructions provided by the Forest Service’s Grant Department. See Exhibit B. Seeking out, receiving, and adhering to written directives from the federal oversight agency demonstrates a strong culture of compliance and an active effort to align with funder expectations, rather than a disregard for federal reporting statutes. 2. No Financial Risk or Loss of Funds: All underlying grant expenditures were valid, allowable, and verified. No questioned costs were identified. Because the reporting timing discrepancy was a direct result of following the awarding agency’s specific written guidance, management maintains this does not constitute a systemic control failure. The understatement in expenditures is directly related to a timing issue, resulting in zero financial risk to the federal government. Corrective Action Planned: Management has implemented formal control enhancements covering both grant reporting schedules and contract administration: o Revised Report Timing & Reconciliation Controls: To resolve the conflict between agency-specific guidance and independent audit standards, management has updated the operational timing and preparation method for Form SF-425. All future quarterly reports will be generated directly from general ledger accrual records strictly as of the quarter-end date. The SF425 and SF270 forms will be submitted separately in an effort to mitigate the timing issue. This updated timeline satisfies requirements for accrual reporting while providing an auditable submission trail for the granting agency. Responsible Person(s): Stacie Dellamano, Chief Financial Officer Anticipated Completion Date: December 31, 2026 Exhibit B From: Fusselman, Sarah - FS, ID Sarah.Fusselman@usda.gov Sent: Friday, July 17, 2026 10:09 AM To: Katie Dalton Subject: Re: [External Email]SF 425 Question for Grant 24-DG-11010013-052 Attachments: Grant Reminders for State, Private & Tribal Forestry R1 R4.pdf; POST AWARD Training2025.pptx Hi Katie, Please review the attached documents that outline how to properly complete the SF-425. I’m also including a helpful training video provided by the U.S. Fish and Wildlife Service: Please keep in mind that in the past, as the GMS for this award, I was able to piece together Flathead Electric’s reporting approach and document why certain entries were allowable on earlier SF-425 submissions. Going forward, because some quarters are busier than others, additional Forest Service administrative staff help manage the reporting inbox. They review SF-425s closely, and since fewer than three cooperators out of more than 500 awards submit the SF-425 and SF-270 simultaneously, these submissions will continue to be questioned. When the SF-425 shows an expenditure as “received” during the same period in which the SF-270 was just submitted, FS staff will request corrections from Flathead Electric each time. Additionally, with the upcoming FS reorganization, I may not remain the point of contact for this award. Future reviewers will need Flathead Electric to clearly explain its accounting methodology every reporting cycle. Please have Flathead Electric’s auditor reach out to my supervisor, Kamie Vaux, at kami.vaux@usda.gov so that the Forest Service can better understand what clarification the auditor is seeking. Thank you, and please let me know if you need anything additional. Sarah Fusselman Grants Management Specialist Forest Service State, Private & Tribal Forestry, Region 1 & 4 c: 208-479-3095 sarah.fusselman@usda.gov Exhibit B Continued From: Vaux, Kamie - FS, UT <kamie.vaux@usda.gov> Sent: Tuesday, July 28, 2026 9:18 AM To: Katie Dalton; Kathryn Eigenberg Cc: Stacey Nelson; Stacie Dellamano Subject: RE: [External Email]RE: Form 425 Reporting Good morning, Thank you for the detailed explanation. Yes—your understanding is correct, and the information you outlined aligns with Forest Service expectations. As we discussed, the timing differences between the quarterly SF-270 and SF-425 submissions naturally affect line 10e, and the values you’ve reported previously are exactly what we would expect to see. Adjusting the submission timing as you described may help reduce the variance, but we recognize that invoice timing will not always allow for that approach. And you’re also right that lines 10a, 10b, and 10c are generally not required for this program, and when they are included, they are not reviewed by the Forest Service. Please let me know if any additional clarification would be helpful—I’m happy to assist further. Thank you, Kamie Kamie Vaux Supervisory Grants Specialist Forest Service State, Private & Tribal Forestry Region 1 and Region 4 c: 385-278-3255 kamie.vaux@usda.gov 324 25th Street Ogden, UT 84401
Preparation of Schedule of Expenditures of Federal Awards (SEFA) Federal Agency Name: Department of Agriculture / Forest Service / Rural Business- Cooperative Service Assistance Listing Numbers: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Audit a...
Preparation of Schedule of Expenditures of Federal Awards (SEFA) Federal Agency Name: Department of Agriculture / Forest Service / Rural Business- Cooperative Service Assistance Listing Numbers: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Audit adjustments were made to reportable expenditure amounts on two of the four programs listed on the draft Schedule of Expenditures of Federal Awards (SEFA), and there was no formally documented review or approval process over the client prepared schedule. Views of Responsible Officials & Management Response: Management partially agrees with the finding. Management acknowledges the SEFA preparation requires improvement. However, management respectfully disagrees with the classification of this deficiency as a Material Weakness and maintains that it is more accurately characterized as a Significant Deficiency based on the following facts: 1. Accuracy of General Ledger & Cost Record Integrity: The underlying project expenditures were completely accurate, fully recorded in the Cooperative's accounting records, and immediately available for review and audit. No unrecorded, unsupported, or unallowable expenditures occurred, and no questioned costs were identified. 2. Active Internal Control & Proactive Consultation: Management actively sought to ensure accurate reporting by reaching out via email for technical advice regarding reportable fiscal year expenditures prior to SEFA finalization (see Exhibit A). Eide Bailly offers SEFA preparation as an allowable non-attest service without impairing independence; however, Management prepared the draft schedule internally in good-faith reliance on the technical direction provided. Seeking expert technical advice reflects an active internal control process focused on compliance, rather than a failure of internal controls. 3. Isolated Allocation & Presentation Error: The general ledger was completely accurate and all underlying grant expenditures were valid; the core financial data and grant funds were never at risk. The variance was strictly limited to the post accounting allocation required for SEFA presentation. Under the CWDG grant structure, project invoices contained co-mingled expenses covering both federal and non-federal lands. While 100% of these valid project costs were properly recorded in the accounting system, the initial SEFA draft did not apply the required percentage allocation to isolate the federal portion. This represents an isolated technical reporting calculation rather than a fundamental breakdown in the Cooperative’s internal controls over financial reporting or grant administration. Corrective Action Planned: Management has refined its SEFA preparation methodology to distinguish general ledger project accounting from reportable federal expenditures. Rather than utilizing total GL account balances, internal review controls now ensure SEFA reporting is strictly derived from verified, net federally reimbursable costs after applying all applicable grant allocation formulas. Additionally, management has documented the preparation and review process for the SEFA to ensure appropriate documentation and oversight. Responsible Person(s): Stacie Dellamano, Chief Financial Officer Anticipated Completion Date: Immediately and for December 31, 2026, SEFA presentation Exhibit A From: Stacie Dellamano <s.dellamano@flathead.coop> Sent: Friday, December 12, 2025 10:32 AM To: Stacey Nelson <smnelson@eidebailly.com>; Julie Urban J.Urban@flathead.coop Cc: Parker Van Zee <pvanzee@eidebailly.com> Subject: Re: Flathead Electric - Single Audit Discussion Stacey, I'm working on updating a SEFA. This will be the first year for a single audit on some of these grants, BUT there were quite a few expenditures in 2024. My question is on the SEFA, what number do I enter under the "expenditure" column? Do I enter 2025 related expenditures only or "Grant-To- Date" expenditures? Stacie Dellamano Chief Financial Officer Flathead Electric Cooperative s.dellamano@flathead.coop | Direct (406) 751-4463 | Cell (406) 871--8993 Toll Free (800) 735-8489 2510 US Highway 2 East, Kalispell, MT 59901 www.flatheadelectric.com Exhibit A Continued From: Stacey Nelson <smnelson@eidebailly.com> Sent: Friday, December 12, 2025 11:12 AM To: Stacie Dellamano <s.dellamano@flathead.coop>; Julie Urban <J.Urban@flathead.coop> Cc: Parker Van Zee <pvanzee@eidebailly.com> Subject: RE: Flathead Electric - Single Audit Discussion It should be the expenditures under your fiscal year only. Do not include expenditures from a prior year. Do you have any FEMA Disaster funds? As those have a little different process. If so, we can set up a call to discuss. If not applicable, you can ignore. Thanks! Stacey Nelson Assurance Partner Sioux Falls, SD T 605.367.6746
Management has strengthened its procedures and internal controls to ensure all required suspension and debarment verifications are documented and retained for expenditures under federal award programs. Effective immediately, the Vermont Bond Bank has revised its loan application and closing processe...
Management has strengthened its procedures and internal controls to ensure all required suspension and debarment verifications are documented and retained for expenditures under federal award programs. Effective immediately, the Vermont Bond Bank has revised its loan application and closing processes to require the inclusion of the applicant's Unique Entity Identifier (UEI), as well as identification of key personnel associated with the borrower. In addition, management has developed and implemented a standardized SAM.gov Verification Form that documents the completion of suspension and debarment reviews in SAM.gov for the borrower's UEI, municipality or organizational name, and key personnel. The form records the date of the review, the individual performing the verification, and the results of the search. The SAM.gov Verification Form has been incorporated into the program closing checklist and will be maintained as part of each loan file. All supporting documentation will be retained in a centralized electronic location to ensure completeness, accessibility, and compliance with federal requirements. Management believes these enhancements will provide adequate documentation and evidence of compliance with federal suspension and debarment requirements for all future program transactions.
Finding 2025-003 Procurement, Suspension and Debarment Programs: ALN 66.458 Clean Water State Revolving Fund Condition: The City’s procurement procedures do not conform to Uniform Guidance requirements. Corrective Action Planned: The City will update procurement procedures to conform with Minnesota ...
Finding 2025-003 Procurement, Suspension and Debarment Programs: ALN 66.458 Clean Water State Revolving Fund Condition: The City’s procurement procedures do not conform to Uniform Guidance requirements. Corrective Action Planned: The City will update procurement procedures to conform with Minnesota statutes and Uniform Guidance. Officer Responsible for Ensuring CAP: Stacy Kass, Clerk/Treasurer Planned Completion Date: 12/31/2026 49
2025-001 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. The Authority has begun taking corrective action to address the matter. Th...
2025-001 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. The Authority has begun taking corrective action to address the matter. The Authority has contacted HUD to obtain guidance on the appropriate method for resolving the balance and ensuring compliance with applicable requirements. Upon receiving HUD's direction, the Authority will implement the necessary corrective measures and take steps to prevent similar issues from occurring in the future. Person Responsible for Correction of Finding: Bonita Schatz, Chief Executive Officer Projected Completion Date: Ongoing work in progress. No completion date can currently be determined.
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