FAC Explorer

Audit 25628

FY End
2022-10-31
Total Expended
$2.14M
Findings
4
Programs
1
Organization: City of Smithville (MO)
Year: 2022 Accepted: 2023-04-18
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30635 2022-004 Significant Deficiency - I
30636 2022-004 Significant Deficiency - I
607077 2022-004 Significant Deficiency - I
607078 2022-004 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $805,495 Yes 1

Contacts

Name Title Type
VDV8G3L3H9V7 Cynthia Wagner Auditee
8165323897 Douglas P. Host Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 ORGANIZATION City of Smithville, Missouri, (the City) is the recipient of several federal awards. All federal awards received directly from federal agencies as well as those awards that are passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards. NOTE 2 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City under programs of the federal government for the year ended October 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) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for all awards with the exception of Assistance Listing Number 21.019, which follows criteria determined by the Department of Treasury for allowability costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 4 LOCAL GOVERNMENT CONTRIBUTIONS Local cost sharing, as defined by the Uniform Guidance is required by certain federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards. NOTE 5 ADDITIONAL AUDITS Grantor agencies reserve the right to conduct additional audits of the City's grant programs for economy and efficiency and program results that may result in disallowed costs to the City. However, management does not believe such audits would result in any disallowed costs that would be material to the City's financial position at October 31, 2022. NOTE 6 INDIRECT COST RATE The City did not charge indirect costs to their federal programs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-004
2022-004 Documentation of Suspension and Debarment Checks Type of Finding Significant Deficiency in Internal Control over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State of Missouri and Clay County, Missouri Pass-Through Number: MO1298 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended October 31, 2022 Criteria or Specific Requirement: The City must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context: One bid process was completed in order to select the construction contractor. The City did not have their own procedures in place in order to ensure bidder responders were not debarred or suspended. The contractor was not suspended or debarred. Questioned Costs: Not applicable. Cause: This was an oversight by City staff. Effect: A suspended or debarred contractor could be considered in the bid awarding process. Repeat Finding: No. Recommendation: We recommend that the City check bid responders to the suspended and debarred list, and document this review. Views of Responsible Officials: As recommended, the City will check bid responders in the System for Award Management (SAMS) website to ensure responders are not suspended or debarred from performing work. This review and confirmation of responders using the SAM website will be documented going forward.
Finding 2022-004
2022-004 Documentation of Suspension and Debarment Checks Type of Finding Significant Deficiency in Internal Control over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State of Missouri and Clay County, Missouri Pass-Through Number: MO1298 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended October 31, 2022 Criteria or Specific Requirement: The City must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context: One bid process was completed in order to select the construction contractor. The City did not have their own procedures in place in order to ensure bidder responders were not debarred or suspended. The contractor was not suspended or debarred. Questioned Costs: Not applicable. Cause: This was an oversight by City staff. Effect: A suspended or debarred contractor could be considered in the bid awarding process. Repeat Finding: No. Recommendation: We recommend that the City check bid responders to the suspended and debarred list, and document this review. Views of Responsible Officials: As recommended, the City will check bid responders in the System for Award Management (SAMS) website to ensure responders are not suspended or debarred from performing work. This review and confirmation of responders using the SAM website will be documented going forward.
Finding 2022-004
2022-004 Documentation of Suspension and Debarment Checks Type of Finding Significant Deficiency in Internal Control over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State of Missouri and Clay County, Missouri Pass-Through Number: MO1298 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended October 31, 2022 Criteria or Specific Requirement: The City must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context: One bid process was completed in order to select the construction contractor. The City did not have their own procedures in place in order to ensure bidder responders were not debarred or suspended. The contractor was not suspended or debarred. Questioned Costs: Not applicable. Cause: This was an oversight by City staff. Effect: A suspended or debarred contractor could be considered in the bid awarding process. Repeat Finding: No. Recommendation: We recommend that the City check bid responders to the suspended and debarred list, and document this review. Views of Responsible Officials: As recommended, the City will check bid responders in the System for Award Management (SAMS) website to ensure responders are not suspended or debarred from performing work. This review and confirmation of responders using the SAM website will be documented going forward.
Finding 2022-004
2022-004 Documentation of Suspension and Debarment Checks Type of Finding Significant Deficiency in Internal Control over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: State of Missouri and Clay County, Missouri Pass-Through Number: MO1298 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended October 31, 2022 Criteria or Specific Requirement: The City must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context: One bid process was completed in order to select the construction contractor. The City did not have their own procedures in place in order to ensure bidder responders were not debarred or suspended. The contractor was not suspended or debarred. Questioned Costs: Not applicable. Cause: This was an oversight by City staff. Effect: A suspended or debarred contractor could be considered in the bid awarding process. Repeat Finding: No. Recommendation: We recommend that the City check bid responders to the suspended and debarred list, and document this review. Views of Responsible Officials: As recommended, the City will check bid responders in the System for Award Management (SAMS) website to ensure responders are not suspended or debarred from performing work. This review and confirmation of responders using the SAM website will be documented going forward.