FAC Explorer

Audit 28409

FY End
2022-06-30
Total Expended
$1.88M
Findings
2
Programs
4
Organization: City of Baker City, Oregon (OR)
Year: 2022 Accepted: 2023-03-15
Auditor: Dickey and Tremper LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31646 2022-007 Significant Deficiency - L
608088 2022-007 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $547,891 - 0
97.044 Assistance to Firefighters Grant $90,047 - 0
20.106 Airport Improvement Program $3,600 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $613 Yes 0

Contacts

Name Title Type
M1MKENB4PX54 Jennifer Spencer Auditee
5415242048 Robert F. Tremper Auditor
No contacts on file

Notes to SEFA

Title: Outstanding Loans Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baker City, Oregon (City) under programs of the federal government for the year ended June 30, 2022. The information is presented on the modified accrual basis of accounting. 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 the City, it is not intended to and does not present the net position and changes in net position of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City has the following net activity on loan balances payable as of June 30, 2022, of which at least a portion are Federal funds: DEQ R12600 Sewer Loan had $1,656,520 outstanding at June 30, 2021 and $5,157,154 outstanding at June 30, 2022.

Finding Details

Finding 2022-007
US DEPARTMENT OF THE TREASURY Coronavirus State and Local Fiscal Recovery Funds (ARPA) CFDA #21.027 Significant Deficiency 2022-007 Condition and criteria: The City is required to file and annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. Cause: The City relied on their interpretation of the regulations based on training they received when preparing the report, which differs from the auditor?s interpretation. Auditor?s recommendation: We recommend that the City only report funds actually incurred as expenditures in future reports and investigate whether an amended report should be filed. Management?s response: The city sent accounting staff to training regarding grant reporting, and the city in turn followed the documented training provided. This training specific to grant reporting appears to be incomplete. By June 30, 2022, American Rescue Plan Act funds allocated to the general fund were spent for qualified uses. ARPA funds that were transferred to the Enterprise funds were not spent by June 30, 2022 and is recorded as unearned revenue in the financial statements. The city will only report funds actually spent as expenditures and will investigate the possibility of filing an amended report.
Finding 2022-007
US DEPARTMENT OF THE TREASURY Coronavirus State and Local Fiscal Recovery Funds (ARPA) CFDA #21.027 Significant Deficiency 2022-007 Condition and criteria: The City is required to file and annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. Cause: The City relied on their interpretation of the regulations based on training they received when preparing the report, which differs from the auditor?s interpretation. Auditor?s recommendation: We recommend that the City only report funds actually incurred as expenditures in future reports and investigate whether an amended report should be filed. Management?s response: The city sent accounting staff to training regarding grant reporting, and the city in turn followed the documented training provided. This training specific to grant reporting appears to be incomplete. By June 30, 2022, American Rescue Plan Act funds allocated to the general fund were spent for qualified uses. ARPA funds that were transferred to the Enterprise funds were not spent by June 30, 2022 and is recorded as unearned revenue in the financial statements. The city will only report funds actually spent as expenditures and will investigate the possibility of filing an amended report.