Finding 520225 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-01-24

AI Summary

  • Core Issue: The Authority failed to submit all required quarterly progress reports for the RW-22-077A award and did not follow the reporting guidelines for the Rural Development award.
  • Impacted Requirements: Quarterly reports were mandated by both awards, but only one report was submitted for RW-22-077A, and the Rural Development award lacked proper financial reports.
  • Recommended Follow-Up: The Authority should adhere to grant terms and ensure timely submission of all required reports, with support from the Project Administrator and outside accountant.

Finding Text

Reporting U.S. Department of Treasury, passed through from the Montana Department of Natural Resources and Conservation ALN: 21.027, Coronavirus State and Local Fiscal Recovery Funds U.S. Department of Agriculture ALN: 10.760, Water and Waste Disposal Systems for Rural Communities Criteria: The grant award RW-22-077A required quarterly progress reports for the periods ending March, June, September, and December be submitted to DNRC during the term of the award. The US Department of Agriculture, Rural Development award also requires quarterly income and expense reports. Condition: For the RW-22-077A award, the Authority only submitted one quarterly report. For the Rural Development award, the Authority submitted summaries, invoice copies, and other documentation, and Rural Development acknowledged each draw request that was submitted. Context: The information included in the reports and submitted to Rural Development provided agreed to the accounting records and supporting documents. Effect: The Authority did not comply with the reporting requirements outlined in the award agreements. Questioned Costs: None Cause: For the RW-22-077A award, only one was submitted because there were so few draws the information would have been redundant with no additional information included in the omitted reports. For both awards, with each draw request, the Authority includes copies of invoices and a summary of all expenses compared to the grant award balances. For the Rural Development award, the Authority gets a confirmation from Rural Development and they have accepted this method; the Authority has not prepared financial reports using the Rural Development 442-2 or 442-3 reports. Auditor Recommendation: We recommend that the Authority follow the terms of the grant awards and submit the reports required in the awards. Authority Response: The Project Administrator and the outside accountant will work with the grantor entities and submit reports as required, based on direction provided by the grantors.

Categories

Reporting

Other Findings in this Audit

  • 520223 2023-002
    Significant Deficiency
  • 520224 2023-003
    Significant Deficiency
  • 1096665 2023-002
    Significant Deficiency
  • 1096666 2023-003
    Significant Deficiency
  • 1096667 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $6.60M
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.57M