FAC Explorer

Audit 18000

FY End
2022-06-30
Total Expended
$3.01M
Findings
4
Programs
5
Organization: City of Beaveron (MI)
Year: 2022 Accepted: 2022-12-21
Auditor: Quast Janke & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
23162 2022-004 Material Weakness - P
23163 2022-004 Material Weakness - P
599604 2022-004 Material Weakness - P
599605 2022-004 Material Weakness - P

Programs

ALN Program Spent Major Findings
11.003 Census Geography $451,905 - 0
10.760 Water and Waste Disposal Systems for Rural Communities $326,032 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $123,900 - 0
10.766 Community Facilities Loans and Grants $61,950 Yes 1
16.710 Public Safety Partnership and Community Policing Grants $58,902 - 0

Contacts

Name Title Type
H9XMAJZUC247 Kimberly Hines Auditee
9894353511 Robert Friske Auditor
No contacts on file

Notes to SEFA

Title: Loans Outstanding Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of City of Beaverton under programs of the federal government for the year ended June 30, 2022. Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. In addition, expenditures reported on the Schedule 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. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Because the Schedule presents only a selected portion of the operations of the City of Beaverton, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows, if applicable, of the City of Beaverton. Pass through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amount expended under AL 10.760, Water and Waste Disposal Systems for Rural Communities, includes advances on loans during the year totaling $374,394. The loans had beginning outstanding principal balances totaling $3,666,606 and ending total principal balances of $3,829,000, as of June 30, 2022.The amount expended under AL 10.766, Communities Facilities Loans and Grants, includes beginning loan balances of $532,000 and advances on loans during the year totaling $1,081,000. The loans had outstanding principal balances totaling $1,602,000 as of June 30, 2022.
Title: Reconciliation of Schedule of Expenditures of Federal Awards to Financial S Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of City of Beaverton under programs of the federal government for the year ended June 30, 2022. Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. In addition, expenditures reported on the Schedule 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. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Because the Schedule presents only a selected portion of the operations of the City of Beaverton, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows, if applicable, of the City of Beaverton. Pass through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Reported in the City's financial statements for the year ended June 30, 2022:Enterprise funds (Sewer Fund) increase in long-term debt $146,000 Enterprise funds (Water) increase in long-term debt 228,394 Enterprise funds (Sewer) other revenues 355,424 Enterprise funds (B.A.) beginning loan balance 532,000 Governmental funds (General Fund) federal sources 182,803 Governmental funds (Major Streets) federal sources 32,557 Capital projects fund bond proceeds 1,081,000 Capital projects funds 451,905 $3,010,083

Finding Details

Finding 2022-004
2022-004 AL# 10.766 Community Facilities Loans and Grants - Written Policies Required by the Uniform Guidance Material Weakness in Internal Control over Compliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to allowability of costs charged to federal programs, cash management, financial management, procurement, compensation/payroll, and travel costs (?200.300 - 328). Condition: Although the City has processes in place to cover these areas, the City lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the City did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials: We agree with the finding. The City is currently working on updating all current procedures and policies to ensure that they are compliant with Uniform Guidance for all current and future Federal Awards.
Finding 2022-004
2022-004 AL# 10.766 Community Facilities Loans and Grants - Written Policies Required by the Uniform Guidance Material Weakness in Internal Control over Compliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to allowability of costs charged to federal programs, cash management, financial management, procurement, compensation/payroll, and travel costs (?200.300 - 328). Condition: Although the City has processes in place to cover these areas, the City lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the City did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials: We agree with the finding. The City is currently working on updating all current procedures and policies to ensure that they are compliant with Uniform Guidance for all current and future Federal Awards.
Finding 2022-004
2022-004 AL# 10.766 Community Facilities Loans and Grants - Written Policies Required by the Uniform Guidance Material Weakness in Internal Control over Compliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to allowability of costs charged to federal programs, cash management, financial management, procurement, compensation/payroll, and travel costs (?200.300 - 328). Condition: Although the City has processes in place to cover these areas, the City lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the City did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials: We agree with the finding. The City is currently working on updating all current procedures and policies to ensure that they are compliant with Uniform Guidance for all current and future Federal Awards.
Finding 2022-004
2022-004 AL# 10.766 Community Facilities Loans and Grants - Written Policies Required by the Uniform Guidance Material Weakness in Internal Control over Compliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to allowability of costs charged to federal programs, cash management, financial management, procurement, compensation/payroll, and travel costs (?200.300 - 328). Condition: Although the City has processes in place to cover these areas, the City lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the City did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials: We agree with the finding. The City is currently working on updating all current procedures and policies to ensure that they are compliant with Uniform Guidance for all current and future Federal Awards.