FAC Explorer

Audit 174148

FY End
2022-12-31
Total Expended
$3.27M
Findings
4
Programs
2
Organization: City of Clinton (MN)
Year: 2022 Accepted: 2023-03-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
204829 2022-005 Material Weakness Yes I
204830 2022-006 Material Weakness Yes L
781271 2022-005 Material Weakness Yes I
781272 2022-006 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $3.09M Yes 2
97.044 Assistance to Firefighters Grant $186,095 - 0

Contacts

Name Title Type
J92DB7S1H7K4 Kari Wiegman Auditee
3203255580 Miranda Wendlandt Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of federal award programs expended by the City of Clinton. The City's reporting entity is defined in Note 1 to the basic financial statements.The expenditures on this schedule are on the basis of accounting used by the individual funds of the City. Governmental funds use the regulatory basis of accounting as prescribed by the Minnesota Office of the State Auditor. Such expenditures are recognized following the cost principles contained in the Uniform Guidance , wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-005
Federal Agency: U.S. Department of Agriculture Federal Program Name: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Number and Year: CPAP0000001243051 - 2022, CPAP0000001243052 ? 2022 Award Period: January 1, 2022 to December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Procurement Policy Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. In addition, Title 2 U.S. Code of Federal Regulations ? 200.318 states that the nonfederal entity must use its own documented procurement procedures which reflect applicable state, local and tribal laws and regulations, provided that the procurements conform with applicable federal law and the standards identified in this regulation. Condition: The City does not have a written procurement or conflict of interest policy that include components required by Title 2 U.S. Code of Federal Regulations ? 200.318. Questioned Costs: None. Context: The City does not have a federal procurement policy. Cause: The City has not approved a procurement policy that meets the requirements of the Uniform Guidance. Effect: Noncompliance with uniform grant guidance. Repeat Finding: Yes ? 2021-006. Recommendation: We recommend the City adopt a procurement policy that meets the requirements of the Uniform Guidance and implement controls to ensure it is being followed. View of Responsible Official: There is no disagreement with the finding.
Finding 2022-006
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Numbers and Year: CPAP0000001243051 - 2022, CPAP0000001243052 ? 2022 Award Period: January 1, 2022 to December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Reporting Procedures Criteria or Specific Requirement: The grant agreement specifies reporting requirements. Condition: The annual budget and projected cash flow statements required by the grant agreement were not completed timely. The City does not have procedures in place to ensure required reports under the Transparency Act are prepared and submitted. Questioned Costs: None. Context: The City does not have procedures to ensure the reports required are being completed timely. Cause: The City does not have experience with the requirements of the federal grant. Effect: Noncompliance with reporting requirements. Repeat Finding: Yes ? 2021-007. Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. View of Responsible Official: There is no disagreement with the finding.
Finding 2022-005
Federal Agency: U.S. Department of Agriculture Federal Program Name: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Number and Year: CPAP0000001243051 - 2022, CPAP0000001243052 ? 2022 Award Period: January 1, 2022 to December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Procurement Policy Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. In addition, Title 2 U.S. Code of Federal Regulations ? 200.318 states that the nonfederal entity must use its own documented procurement procedures which reflect applicable state, local and tribal laws and regulations, provided that the procurements conform with applicable federal law and the standards identified in this regulation. Condition: The City does not have a written procurement or conflict of interest policy that include components required by Title 2 U.S. Code of Federal Regulations ? 200.318. Questioned Costs: None. Context: The City does not have a federal procurement policy. Cause: The City has not approved a procurement policy that meets the requirements of the Uniform Guidance. Effect: Noncompliance with uniform grant guidance. Repeat Finding: Yes ? 2021-006. Recommendation: We recommend the City adopt a procurement policy that meets the requirements of the Uniform Guidance and implement controls to ensure it is being followed. View of Responsible Official: There is no disagreement with the finding.
Finding 2022-006
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Numbers and Year: CPAP0000001243051 - 2022, CPAP0000001243052 ? 2022 Award Period: January 1, 2022 to December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Reporting Procedures Criteria or Specific Requirement: The grant agreement specifies reporting requirements. Condition: The annual budget and projected cash flow statements required by the grant agreement were not completed timely. The City does not have procedures in place to ensure required reports under the Transparency Act are prepared and submitted. Questioned Costs: None. Context: The City does not have procedures to ensure the reports required are being completed timely. Cause: The City does not have experience with the requirements of the federal grant. Effect: Noncompliance with reporting requirements. Repeat Finding: Yes ? 2021-007. Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. View of Responsible Official: There is no disagreement with the finding.