FAC Explorer

Finding 521238 (2024-001)

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Requirement
L
Questioned Costs
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Year
2024
Accepted
2025-02-04
Audit: 341180
Organization: Southeast Kansas Regional Planning Commission (KS)
Auditor: Jarred Gilmore & Phillips PA

AI Summary

  • Core Issue: There was a discrepancy between reported and actual amounts in the annual report for the revolving loan fund.
  • Impacted Requirements: Compliance with 13 CFR section 307.14, which mandates accurate certification of information by loan fund recipients.
  • Recommended Follow-Up: Implement procedures to ensure proper classification of interest income and accurate reporting of late fees.

Finding Text

Federal Programs: U.S Department of Commerce Economic Development Cluster Economic Adjustment Assistance – CARES Act – COVID - 19 CFDA 11.307 Compliance requirement: 13 CFR section 307.14 states that the revolving loan fund recipients must certify that the information provided is complete and accurate. Condition: During our testing of reporting, we tested the annual report to ensure numbers were accurate and supported by amounts in the general ledger. During this testing, we noted a variance between what was reported and what the actual amounts were. Cause: The interest income for the bank was incorrectly recorded in the wrong class and certain late fees on loan payments were not reflected in the appropriate account. Effect: The breakdown of internal controls in this area could adversely affect accurately reporting income amounts for the revolving loan funds. Questioned Costs: None Context: Reporting is done by using the prior year’s reported amounts and then adding in the activity from the current year. By misclassifying income, amounts were not accurately reported in the Form ED-209 Revolving Loan Fund Financial Report. Recommendation: Procedures should be implemented to ensure that interest income is appropriately classified based on the funds that are earning those amounts and that late fees are accurately reflected as well. Views of responsible officials: Management is in agreement and will implement a corrective action plan on page 30.

Corrective Action Plan

Southeast Kansas Regional Planning Commission Corrective Action Plan January 30, 2025 Cognizant or Oversight Agency for Audit Southeast Kansas Regional Planning Commission respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Jarred, Gilmore & Phillips, PA, P.O. Box 779, 1815 S Santa Fe, Chanute, Kansas 66720. Audit period: Year ended June 30, 2024 The findings from the January 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2024-001 –Reporting Condition: During our testing of reporting, we tested the annual report to ensure numbers were accurate and supported by amounts in the general ledger. During this testing, we noted a variance between what was reported and what the actual accurate amounts were. Recommendation: Procedures should be implemented to ensure that interest income is appropriately classified based on the funds that are earning those amounts and that late fees are accurately reflected as well. Action Taken: We are in agreement with the recommendation and the Commission has worked on ensuring that amounts are accurately reflected in the proper classes and accounts. Anticipated Complete Date: January 31, 2025 Should the Oversight Agency for Audit have questions regarding this plan, please contact Jonni Duncan, Finance Manager, at (620) 431-0080. Sincerely Southeast Kansas Regional Planning Commission Southeast Kansas Regional Planning Commission

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $529,766
10.767 Intermediary Relending Program $389,000
10.433 Rural Housing Preservation Grants $147,645
11.302 Economic Development Support for Planning Organizations $70,000