Audit 19463

FY End
2022-12-31
Total Expended
$2.66M
Findings
8
Programs
6
Organization: City of Ely, Minnesota (MN)
Year: 2022 Accepted: 2023-08-10

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
22506 2022-001 Significant Deficiency Yes P
22507 2022-001 Significant Deficiency Yes P
22508 2022-001 Significant Deficiency Yes P
22509 2022-001 Significant Deficiency Yes P
598948 2022-001 Significant Deficiency Yes P
598949 2022-001 Significant Deficiency Yes P
598950 2022-001 Significant Deficiency Yes P
598951 2022-001 Significant Deficiency Yes P

Contacts

Name Title Type
YVXQT4EF7NRS Harold Langowski Auditee
2182265474 Thomas B. Kelly Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - PASS-THROUGH ENTITIES Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City of Ely, Minnesota, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of City of Ely, Minnesota, it is not intended to and does not present the financial position, changes in net position, or cash flows of City of Ely, Minnesota. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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 of Ely, Minnesota has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no pass-through entities.

Finding Details

2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? Assistance Listing No. 20.106 ? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City?s staffing limitations and funding constraints. Proposed Completion Date: The City?s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.