Audit 14010

FY End

2020-06-30

Total Expended

$1.33M

Findings

4

Programs

2

Organization: City of Antelope (OR)

Year: 2020 Accepted: 2024-01-26

Auditor: Molatore Scroggin Peterson & CO LLP

Organization Exclusion Status:

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ID	Ref	Severity	Repeat	Requirement
10357	2020-001	Material Weakness	-	L
10358	2020-002	-	-	I
586799	2020-001	Material Weakness	-	L
586800	2020-002	-	-	I

ALN	Program	Spent	Major	Findings
14.228	Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii	$881,091	Yes	1
66.468	Capitalization Grants for Drinking Water State Revolving Funds	$448,745	-	1

Contacts

Name	Title	Type
E1LXYNX771Q9	Liz Jamison	Auditee
5414893201	Gerrin Degroot	Auditor
No contacts on file

Notes to SEFA

Title: Federal Financial Assistance Accounting Policies: The Schedule of Expenditures of Federal Awards is presented on the modified cash basis of accounting. The information in the schedule is presented in accordance with the requirements of the Uniform Guidance; therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City of Antelope does not use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. The City of Antelope has no indirect cost rate. This is because the City of Antelope has no employees or other indirect costs to allocate. Pursuant to Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance of direct appropriations. Accordingly, non-monetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the schedule of expenditures of federal awards, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between the state and federal govermment for which the federal government procures tangible goods or services are not considered to be federal financial assistance.

Title: Major Programs Accounting Policies: The Schedule of Expenditures of Federal Awards is presented on the modified cash basis of accounting. The information in the schedule is presented in accordance with the requirements of the Uniform Guidance; therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City of Antelope does not use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. The City of Antelope has no indirect cost rate. This is because the City of Antelope has no employees or other indirect costs to allocate. Uniform Guidance establishes criteria to be used in defining major federal financial assistance programs. Major programs for City of Antelope are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes.

Title: Reporting Entity Accounting Policies: The Schedule of Expenditures of Federal Awards is presented on the modified cash basis of accounting. The information in the schedule is presented in accordance with the requirements of the Uniform Guidance; therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City of Antelope does not use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. The City of Antelope has no indirect cost rate. This is because the City of Antelope has no employees or other indirect costs to allocate. The reporting entity is fully described in notes to the financial statements. The schedule includes all federal programs administered by City of Antelope for the year ended June 30, 2020.

Finding Details

Finding 2020-001

Criteria: The internal controls of the City of Antelope are insufficient to identify and correct material differences. Condition: The City of Antelope did not properly split the amount of funds received between loans and grants. Context: The testing of cash receipts identified that the allocation of funds received between loans and revenue wasnt performed according to the contract guidelines . The finding is specifically for funds received on contracts S19008 and Y20001. The amount of the adjustment during the fiscal year was $343,870. Cause: The City of Antelope received funds through agreements that included terms that 50% be allocated to grants/forgivable loans and the other 50% to the non-forgivable loan. City of Antelope indicentally mis-allocated the amounts received. Effect or potential effect: The effect of the finding was that revenue had been overstated by $343,870 and loand were underreported by the same amount. The difference was corrected through the audit process , instead of City of Antelope identifying and correcting. Recommendation: City of Antelope should contract with a consultant to review or assist incomplex transactions that are beyond the ability of City of Antelope volunteers.

Finding 2020-002

Criteria: Contract requires City of Antelope to comply with procurement regulations. Condition: The City of Antelope was unable to obtain documentation to support that procurement procedures were followed that aligned with Oregon procurement regulations and Uniform Guidance. Minutes were received that report 7 bids received, to support some procurement process was attempted. Cause: City of Antelope water project required procurement procedures to be performed according to Uniform Guidance and State standards when more restrictive. Effect or potential effect: City of Antelope appears to have received multiple proposals and performed a procurement process to comply with the contract requirements; however, documentation was not available in enough detail to confirm the procurement process was performed according to the requirements. Cotext: This was the only project that required procurement and therefore it is considered an isolated incident.Recommendation: City of Antelope should perform better recordkeeping with limitataions on where documents may be stored to avoid any loss of records that may have been created.

Finding 2020-001

Criteria: The internal controls of the City of Antelope are insufficient to identify and correct material differences. Condition: The City of Antelope did not properly split the amount of funds received between loans and grants. Context: The testing of cash receipts identified that the allocation of funds received between loans and revenue wasnt performed according to the contract guidelines . The finding is specifically for funds received on contracts S19008 and Y20001. The amount of the adjustment during the fiscal year was $343,870. Cause: The City of Antelope received funds through agreements that included terms that 50% be allocated to grants/forgivable loans and the other 50% to the non-forgivable loan. City of Antelope indicentally mis-allocated the amounts received. Effect or potential effect: The effect of the finding was that revenue had been overstated by $343,870 and loand were underreported by the same amount. The difference was corrected through the audit process , instead of City of Antelope identifying and correcting. Recommendation: City of Antelope should contract with a consultant to review or assist incomplex transactions that are beyond the ability of City of Antelope volunteers.

Finding 2020-002

Criteria: Contract requires City of Antelope to comply with procurement regulations. Condition: The City of Antelope was unable to obtain documentation to support that procurement procedures were followed that aligned with Oregon procurement regulations and Uniform Guidance. Minutes were received that report 7 bids received, to support some procurement process was attempted. Cause: City of Antelope water project required procurement procedures to be performed according to Uniform Guidance and State standards when more restrictive. Effect or potential effect: City of Antelope appears to have received multiple proposals and performed a procurement process to comply with the contract requirements; however, documentation was not available in enough detail to confirm the procurement process was performed according to the requirements. Cotext: This was the only project that required procurement and therefore it is considered an isolated incident.Recommendation: City of Antelope should perform better recordkeeping with limitataions on where documents may be stored to avoid any loss of records that may have been created.