Finding 1172855 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-02-09

Audit: 386230

Organization: Snowy Mountain Development Corporation (MT)

Auditor: CARVER FLOREK & JAMES CPA'S

AI Summary

Core Issue: SMDC submitted the annual SF-425 report late, violating compliance requirements.
Impacted Requirements: Timely submission of financial reports is essential for program compliance.
Recommended Follow-Up: SMDC should create a system to track report deadlines and ensure changes in funding requirements are communicated effectively.

Finding Text

2025 – 001 SF-425 FINANCIAL REPORT LATE SUBMISSION – NONCOMPLIANCE Criteria: All reports must be submitted prior to the allowable date to be in compliance with program requirements. Condition: During our testing of the Brownfields Revolving Loan Fund, we found that SMDC did not submit the annual SF-425 within the submission date required. Cause: The annual requirement of the SF-425 was just established during the fiscal year and SMDC was unaware of change. Effect: SMDC did not follow the applicable compliance filing requirement. Recommendation: We recommend that SMDC develop a method of ensuring all reports meet the required deadlines, and that any funding requirements that change are communicated through the management structure.

Corrective Action Plan

FINDING #2025-001 (SF-425 Financial report – Late Submission) Responsible Party: Sara Hudson & Tonya Garber Anticipated Completion Date: November 1, 2025 (Implemented) Corrective Action Planned: Snowy Mountain Development Corporation has implemented updated procedures to ensure timely preparation, review, and submission of SF-425 Federal Financial Reports. Management reviewed current HRSA reporting requirements and established internal reporting deadlines that precede federal due dates. Reporting responsibilities and deadlines have been formally communicated to applicable staff, and management now monitors compliance with submission timelines to ensure reports are filed in accordance with federal requirements. This corrective action has been implemented for the current fiscal year ending June 30, 2026, and management anticipates compliance with SF-425 reporting requirements for future audits.

Other Findings in this Audit

1172856 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
66.818	BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS	$912,253
10.767	INTERMEDIARY RELENDING PROGRAM	$464,514
11.307	ECONOMIC ADJUSTMENT ASSISTANCE	$275,690
12.002	PROCUREMENT TECHNICAL ASSISTANCE FOR BUSINESS FIRMS	$159,330
11.302	ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS	$70,000
10.170	SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL	$25,603
15.228	BLM FUELS MANAGEMENT AND COMMUNITY FIRE ASSISTANCE PROGRAM ACTIVITIES	$21,128