Audit 20163

FY End
2022-12-31
Total Expended
$18.80M
Findings
2
Programs
31
Organization: City of Grand Forks (ND)
Year: 2022 Accepted: 2023-07-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
20510 2022-002 Significant Deficiency - I
596952 2022-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.26M Yes 1
11.307 Economic Adjustment Assistance $1.44M - 0
20.507 Federal Transit_formula Grants $1.12M - 0
11.300 Investments for Public Works and Economic Development Facilities $666,605 - 0
14.218 Community Development Block Grants/entitlement Grants $352,759 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $283,777 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $241,915 - 0
20.205 Highway Planning and Construction $232,085 Yes 0
93.283 Centers for Disease Control and Prevention_investigations and Technical Assistance $98,245 - 0
93.U03 Opiod Str Community Grant $74,941 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $60,365 - 0
93.069 Public Health Emergency Preparedness $28,186 - 0
93.917 Hiv Care Formula Grants $25,791 - 0
20.600 State and Community Highway Safety $24,019 - 0
93.268 Immunization Cooperative Agreements $19,961 Yes 0
97.067 Homeland Security Grant Program $17,696 - 0
16.607 Bulletproof Vest Partnership Program $15,402 - 0
95.001 High Intensity Drug Trafficking Areas Program $14,020 - 0
16.588 Violence Against Women Formula Grants $13,273 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $12,023 - 0
93.U01 Tobacco Youth Compliance Checks $10,395 - 0
20.616 National Priority Safety Programs $10,026 - 0
93.758 Preventive Health and Health Services Block Grant Funded Solely with Prevention and Public Health Funds (pphf) $9,976 - 0
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $9,556 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $8,854 - 0
15.904 Historic Preservation Fund Grants-in-Aid $5,324 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $5,200 - 0
93.940 Hiv Prevention Activities_health Department Based $3,932 - 0
93.994 Maternal and Child Health Services Block Grant to the States $3,162 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $2,775 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $1,489 - 0

Contacts

Name Title Type
L2SLA7WWD7M1 Maureen Storstad Auditee
7017462622 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures 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.Negative amounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the City of Grand Forks under programs of the federal government for theyear ended December 31, 2022. The information in this schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of operations of the City of Grand Forks itis not intended to and does not present the financial position, change in net position, or cash flowsof the City of Grand Forks.
Title: Loans Outstanding Accounting Policies: Expenditures 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.Negative amounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City of Grand Forks had the following loan balances outstanding at December 31, 2022.These loan balances outstanding, except for the current year loan expenditures for the EPACapitalization Grant, are not included in the federal expenditures presented in the schedule, asthey are not considered to have continuing compliance requirements:Federal AL AmountProgram Title Number OutstandingNorth Dakota Public Finance AuthorityState Revolving Fund 66.468 $ 72,750,000
Title: Program Income Accounting Policies: Expenditures 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.Negative amounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. As of December 31, 2022, the City of Grand Forks earned $378,918 in program income from itsCDBG Emergency Supplemental Appropriation and Revolving Loan Fund Grants.
Title: Matching Costs Accounting Policies: Expenditures 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.Negative amounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards does not include matchingexpenditures.
Title: EDA Revolving Loan Funds (RLF) Grant Accounting Policies: Expenditures 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.Negative amounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes $1,441,507 reported forAL 11.307. This amount does not represent current year expenditures. See calculation below:Balance of RLF loans outstanding at end of recipients fiscal year $ 1,309,129Cash available for lending 123,438Admin expenses paid out of RLF income during recipients fiscal year 8 ,9401,441,507Federal share of RLF as specified in the grant award 100.00%Schedule of expenditures of federal awards amount $ 1,441,507

Finding Details

2022-002 Significant Deficiency Federal Program Coronavirus State and Local Fiscal Recovery Funds (21.027) Procurement, Suspension, and Debarment Criteria Uniform Guidance states an entity needs to have procedures in place to ensure they do not enter into a covered transaction with a vendor that is suspended or disbarred from federal funds. Condition During testing of the City?s Procurement Policy, we noted that suspension and debarment verbiage was missing. Question Costs None ? This was a test based on the City?s Procurement Policy and this policy does not show financial information. Context Uniform Guidance states ?Review the non-federal entity?s procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.2096)?. During this review, we noted that the city does not have procedures in place for verifying that they don?t enter into a covered transaction with a debarred or suspended vendor. Effect The City is not in compliance with requirements set by Uniform Guidance. Repeat Finding No Views of Responsible Officials The finance department experienced a significant turnover of experienced employees and in their absence the suspension and disbarment requirement was not reviewed prior to bids being awarded in some cases. The City is in the process of updating its procurement policy to include the suspension and debarment requirement.
2022-002 Significant Deficiency Federal Program Coronavirus State and Local Fiscal Recovery Funds (21.027) Procurement, Suspension, and Debarment Criteria Uniform Guidance states an entity needs to have procedures in place to ensure they do not enter into a covered transaction with a vendor that is suspended or disbarred from federal funds. Condition During testing of the City?s Procurement Policy, we noted that suspension and debarment verbiage was missing. Question Costs None ? This was a test based on the City?s Procurement Policy and this policy does not show financial information. Context Uniform Guidance states ?Review the non-federal entity?s procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.2096)?. During this review, we noted that the city does not have procedures in place for verifying that they don?t enter into a covered transaction with a debarred or suspended vendor. Effect The City is not in compliance with requirements set by Uniform Guidance. Repeat Finding No Views of Responsible Officials The finance department experienced a significant turnover of experienced employees and in their absence the suspension and disbarment requirement was not reviewed prior to bids being awarded in some cases. The City is in the process of updating its procurement policy to include the suspension and debarment requirement.