EIN: 263836207
UEI: HYCJM317GXW8
Audited by: Hess, Stewart & Campbell, PLLC.
Oversight agency: 11 [Department of Commerce]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 29, 2026 (153 days ago).
What is a management decision? →FAC accepted this audit on September 30, 2024 — management decision was due March 30, 2025.
FAC accepted this audit on September 28, 2023 — management decision was due March 28, 2024.
FAC accepted this audit on September 28, 2022 — management decision was due March 28, 2023.
The Organization failed to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Our testing results are as follows: "See Schedule of Findings and Questioned Costs for chart/table" Criteria: 2 CFR Part 170 Reporting Subawards and Executive Compensation requires grant recipients to report first-tier subawards resulting in an obligation of $30,000 or more in federal funds to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Cause: The Organization was unaware of the requirement to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Effect: Two awards totaling $233,000, both of which were greater than $30,000, were not reported in accordance with the criteria. Recommendation: Establish policies and procedures to ensure reporting of first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) on a timely basis. Question Cost None Views of Responsible Officials and Planned Corrective Action: The organization agrees with the finding and will establish policies and procedures to ensure reporting of first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Show full finding ▾Hide full finding ▴CFDA Number and Name: 17.280 WIOA Dislocated Worker National Reserve Demonstration Grants Award Number and Year: MI-34039-19-60-A-54, 09/30/19 ? 09/30/23 Federal Agency: U.S. Department of Labor Condition: The Organization failed to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Our testing results are as follows: "See Schedule of Findings and Questioned Costs for chart/table" Criteria: 2 CFR Part 170 Reporting Subawards and Executive Compensation requires grant recipients to report first-tier subawards resulting in an obligation of $30,000 or more in federal funds to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Cause: The Organization was unaware of the requirement to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Effect: Two awards totaling $233,000, both of which were greater than $30,000, were not reported in accordance with the criteria. Recommendation: Establish policies and procedures to ensure reporting of first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) on a timely basis. Question Cost None Views of Responsible Officials and Planned Corrective Action: The organization agrees with the finding and will establish policies and procedures to ensure reporting of first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Finding: 2021-001 Reporting Contact Person: Sam Sarcone, Chief Financial Officer Anticipated Completion: December 31, 2022 Cause: The Organization was unaware of the requirement to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Reporting System (FSRS). Response: This finding was a surprise to the Organization because our Chief Executive Officer, Chief Financial Officer, and Chief Program Officer worked together with our Department of Labor (DOL) Federal Project Officer to justify and implement our subawards over the life of the grant. The DOL also administered a formal electronic desk monitoring review during the audited year, including a review of our subaward agreements and their compliance status. The monitoring review was concluded without raising FSRS reporting as a finding or area of concern. We assumed the monitoring review was indicative of our compliance in how we handled our subawards. We are pleased to report this finding will be resolved in a timely manner. We are now aware of the requirement and will complete the reporting.
FAC accepted this audit on November 3, 2021 — management decision was due May 3, 2022.
Coalfield Development Corporation and affiliates? did not meet the reserve account funding requirements of its loan agreement with the U.S. Department of Agriculture, Rural Development. Criteria: Section 5b of the loan agreement with the U.S. Department of Agriculture, Rural Development and Section 3, Chapter 4 of the USDA Rural Development Handbook requires the funding of a reserve account to meet the major capital expense needs of the project. According to the Fin2100 report, the required reserve funding level as of 12/31/20 should be $53,011. The balance in the Organization?s reserve account as of 12/31/20 totaled $48,141 for a shortage of $4,870. Cause: Policies and procedures were not operating effectively to ensure the reserve account was funded to the required level. Effect: The reserve account was underfunded by $4,870 as of December 31, 2020. Recommendation: Strengthen internal controls over the funding of the reserve account to ensure the funding levels established by the U.S. Department of Agriculture, Rural Development are met. Views of the responsible officials and planned corrective action: The Organization agrees with this finding and will strengthen internal controls to ensure the funding levels established by the U.S. Department of Agriculture, Rural Development are met. See current year corrective action plan.
Show full finding ▾Hide full finding ▴The findings identified in 2020-001-Reserve account funding of Section II-Financial Statement findings also applies to this federal program. 2020-001 Reserve Account Funding Condition: Coalfield Development Corporation and affiliates? did not meet the reserve account funding requirements of its loan agreement with the U.S. Department of Agriculture, Rural Development. Criteria: Section 5b of the loan agreement with the U.S. Department of Agriculture, Rural Development and Section 3, Chapter 4 of the USDA Rural Development Handbook requires the funding of a reserve account to meet the major capital expense needs of the project. According to the Fin2100 report, the required reserve funding level as of 12/31/20 should be $53,011. The balance in the Organization?s reserve account as of 12/31/20 totaled $48,141 for a shortage of $4,870. Cause: Policies and procedures were not operating effectively to ensure the reserve account was funded to the required level. Effect: The reserve account was underfunded by $4,870 as of December 31, 2020. Recommendation: Strengthen internal controls over the funding of the reserve account to ensure the funding levels established by the U.S. Department of Agriculture, Rural Development are met. Views of the responsible officials and planned corrective action: The Organization agrees with this finding and will strengthen internal controls to ensure the funding levels established by the U.S. Department of Agriculture, Rural Development are met. See current year corrective action plan.
Finding 2020-002 Reserve Account Funding Contact person: Sam Sarcone, Chief Financial Officer Anticipated completion: December 31, 2021 Cause: See cause for finding 2020-001 Response: See response for finding 2020-001.
FAC accepted this audit on January 10, 2021 — management decision was due July 10, 2021.
FAC accepted this audit on March 18, 2020 — management decision was due September 18, 2020.
FAC accepted this audit on March 25, 2019 — management decision was due September 25, 2019.
FAC accepted this audit on June 17, 2018 — management decision was due December 17, 2018.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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