FAC Explorer

Audit 27627

FY End
2022-12-31
Total Expended
$2.48M
Findings
2
Programs
9
Organization: City of Columbia Heights, Minnesota (MN)
Year: 2022 Accepted: 2023-07-11
Auditor: Redpath and Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28323 2022-002 Significant Deficiency - L
604765 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $2.21M Yes 1
14.218 Community Development Block Grants/entitlement Grants $83,720 - 0
84.287 Twenty-First Century Community Learning Centers $66,270 - 0
20.205 Covid-19 Highway Planning and Construction $57,713 - 0
16.710 Public Safety Partnership and Community Policing Grants $53,877 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $2,756 - 0
20.616 National Priority Safety Programs $1,559 - 0
20.600 State and Community Highway Safety $1,175 - 0
16.610 Regional Information Sharing Systems $692 - 0

Contacts

Name Title Type
MAG1KTGJCKD4 Andrew Splinter Auditee
7637063621 Rebecca Petersen Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Subrecipients Accounting Policies: Note 1. Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Columbia Heights and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized when incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Columbia Heights did not elect to use the 10% de minimis cost rate for indirect (F&A) costs. The City of Columbia Heights did not pass any federal funds to subrecipients during 2022.
Title: Note 4. Reporting Entity Accounting Policies: Note 1. Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Columbia Heights and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized when incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Columbia Heights did not elect to use the 10% de minimis cost rate for indirect (F&A) costs. For the purposes of this schedule, the reporting entity includes all funds of the City of Columbia Heights, Minnesota. Also included in the reporting entity, as blended component units, are the Columbia Heights Economic Development Authority and the Columbia Heights Housing and Redevelopment Authority, as the governing boards are substantively the same as the City Council, and the City is in a relationship of benefit/burden with the Authorities.

Finding Details

Finding 2022-002
2022-002 Significant Deficiency in Internal Controls over Compliance and Noncompliance with Reporting Requirements; U.S. Department of Treasury; COVID-19 Coronavirus State and Local Fiscal Recovery Funds?Assistance Listing No. 21.027; Grant period?Year ended December 31, 2022 Criteria: The major program requires the City of Columbia Heights, Minnesota to provide a Project and Expenditure Report on an annual basis, reporting on financial data, projects funded, expenditures, and other information. Condition: During our audit, we noted that the City did not have sufficient controls in place to ensure proper reporting of total expenditures incurred by project through December 31, 2022. Questioned Costs: $0 Context: One of the projects using ARPA funding (Manhole Replacement, Pipe Repairs; pipe upsizing on TH 65) was overstated by approximately $84,000 and the other project using ARPA funding (Structural lining of 4,000 lineal feet of water main) was understated by the same amount. Repeat Finding: No Cause: This reporting error was caused by the significant deficiency in financial reporting described in Finding 2022-001 above. Effect: The amounts reported by project were incorrect for the year ending December 31, 2022. Recommendation: Refer to the recommendation in Finding No. 2022-001 above. Additionally, we recommend that the City continue efforts to thoroughly review the ARPA reporting before submission. City Response: The City concurs with the finding and the recommendation. The City notes that the misclassification between water project costs and sewer project costs in the interim grant progress report referred to above will be corrected in the next interim grant progress report filed by the City. Refer also to the City?s related response in 2022-001 above.
Finding 2022-002
2022-002 Significant Deficiency in Internal Controls over Compliance and Noncompliance with Reporting Requirements; U.S. Department of Treasury; COVID-19 Coronavirus State and Local Fiscal Recovery Funds?Assistance Listing No. 21.027; Grant period?Year ended December 31, 2022 Criteria: The major program requires the City of Columbia Heights, Minnesota to provide a Project and Expenditure Report on an annual basis, reporting on financial data, projects funded, expenditures, and other information. Condition: During our audit, we noted that the City did not have sufficient controls in place to ensure proper reporting of total expenditures incurred by project through December 31, 2022. Questioned Costs: $0 Context: One of the projects using ARPA funding (Manhole Replacement, Pipe Repairs; pipe upsizing on TH 65) was overstated by approximately $84,000 and the other project using ARPA funding (Structural lining of 4,000 lineal feet of water main) was understated by the same amount. Repeat Finding: No Cause: This reporting error was caused by the significant deficiency in financial reporting described in Finding 2022-001 above. Effect: The amounts reported by project were incorrect for the year ending December 31, 2022. Recommendation: Refer to the recommendation in Finding No. 2022-001 above. Additionally, we recommend that the City continue efforts to thoroughly review the ARPA reporting before submission. City Response: The City concurs with the finding and the recommendation. The City notes that the misclassification between water project costs and sewer project costs in the interim grant progress report referred to above will be corrected in the next interim grant progress report filed by the City. Refer also to the City?s related response in 2022-001 above.