FAC Explorer

Audit 27867

FY End
2022-12-31
Total Expended
$2.52M
Findings
8
Programs
1
Organization: Chisholm-Hibbing Airport Authority (MN)
Year: 2022 Accepted: 2023-07-12
Auditor: Sterle & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35400 2022-001 Significant Deficiency Yes P
35401 2022-001 Significant Deficiency Yes P
35402 2022-001 Significant Deficiency Yes P
35403 2022-001 Significant Deficiency Yes P
611842 2022-001 Significant Deficiency Yes P
611843 2022-001 Significant Deficiency Yes P
611844 2022-001 Significant Deficiency Yes P
611845 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $1.09M Yes 1

Contacts

Name Title Type
FQSCWFYE9177 Barrett Ziemer Auditee
2184405407 Jeff Sterle Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of the Authority 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 this schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the 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. NOTE 3 INDIRECT COST RATE The Authority charges direct costs to federal programs and does not use indirect cost rates allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.
Finding 2022-001
2022-001 Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations.