FAC Explorer

Audit 291301

FY End
2022-12-31
Total Expended
$935,129
Findings
12
Programs
5
Organization: City of Warren (MN)
Year: 2022 Accepted: 2024-02-20
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369773 2022-008 Significant Deficiency - I
369774 2022-008 Significant Deficiency - I
369775 2022-009 Significant Deficiency - AB
369776 2022-009 Significant Deficiency - AB
369777 2022-010 Material Weakness - L
369778 2022-010 Material Weakness - L
946215 2022-008 Significant Deficiency - I
946216 2022-008 Significant Deficiency - I
946217 2022-009 Significant Deficiency - AB
946218 2022-009 Significant Deficiency - AB
946219 2022-010 Material Weakness - L
946220 2022-010 Material Weakness - L

Programs

ALN Program Spent Major Findings
66.468 Capitalization Grants for Drinking Water State Revolving Funds $358,340 Yes 3
66.458 Capitalization Grants for Clean Water State Revolving Funds $344,448 Yes 3
93.498 Provider Relief Fund $85,536 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $84,803 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $62,002 - 0

Contacts

Name Title Type
EJLNYLBMVML7 Brent McMillan Auditee
2187455343 Tracee Bruggeman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal award activity of the City of Warren 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 the Schedule presents only a selected portion of the operations of the City of Warren, it is not intended to be and does not present the financial position or changes in net position of the City of Warren.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the year ended December 31, 2022, the City did not pass any federal money to subrecipients.

Finding Details

Finding 2022-008
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Procurement, Suspension, and Debarment Criteria Uniform Guidance states “Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220”. Condition We tested two vendors for whom the City entered into covered transactions with. We noted one of the vendors was not reviewed to ensure they were not suspended or debarred from receiving federal funds. We reviewed Sam.gov and noted this vendor was not listed as having an active exclusion. Questioned Costs None. Context 2 vendors were tested from a population of 2. Effect The City has in increased risk of entering into a covered transaction with a suspended or debarred vendor. Cause The City did not follow their procurement policy. Repeat Finding No. Recommendation The City should follow their procurement policy. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-008
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Procurement, Suspension, and Debarment Criteria Uniform Guidance states “Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220”. Condition We tested two vendors for whom the City entered into covered transactions with. We noted one of the vendors was not reviewed to ensure they were not suspended or debarred from receiving federal funds. We reviewed Sam.gov and noted this vendor was not listed as having an active exclusion. Questioned Costs None. Context 2 vendors were tested from a population of 2. Effect The City has in increased risk of entering into a covered transaction with a suspended or debarred vendor. Cause The City did not follow their procurement policy. Repeat Finding No. Recommendation The City should follow their procurement policy. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-009
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Allowable Activities/Costs Criteria An entity should have internal controls in place to ensure all federal expenditures are allowed. Condition We tested 15 transactions for internal controls and noted 2 transactions did not have the proper approval. Questioned Costs None. Context 15 transactions were selected from a population of 17. Effect The City has an increased risk in using federal dollars on an unallowable activity/cost. Cause The City does not have sufficient controls in place to ensure all federal expenditures are being approved. Repeat Finding No. Recommendation The City should implement policies and procedures to ensure all federal expenditures are being approved to ensure allowability with federal requirements. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-009
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Allowable Activities/Costs Criteria An entity should have internal controls in place to ensure all federal expenditures are allowed. Condition We tested 15 transactions for internal controls and noted 2 transactions did not have the proper approval. Questioned Costs None. Context 15 transactions were selected from a population of 17. Effect The City has an increased risk in using federal dollars on an unallowable activity/cost. Cause The City does not have sufficient controls in place to ensure all federal expenditures are being approved. Repeat Finding No. Recommendation The City should implement policies and procedures to ensure all federal expenditures are being approved to ensure allowability with federal requirements. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-010
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Reporting Criteria Single audit reports need to be submitted to the federal clearinghouse within 9 months after year end, or by 30 days after issuance of the entity’s audited financial statements. Condition We noted that the City’s single audit report was not submitted by the due date. Questioned Costs None. Context The City submitted their Data Collection Form late. Effect The City was late on submitting their single audit report. Cause Management oversight Repeat Finding No. Recommendation The City should implement policies and procedures to ensure their single audit report is submitted by the due date. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-010
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Reporting Criteria Single audit reports need to be submitted to the federal clearinghouse within 9 months after year end, or by 30 days after issuance of the entity’s audited financial statements. Condition We noted that the City’s single audit report was not submitted by the due date. Questioned Costs None. Context The City submitted their Data Collection Form late. Effect The City was late on submitting their single audit report. Cause Management oversight Repeat Finding No. Recommendation The City should implement policies and procedures to ensure their single audit report is submitted by the due date. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-008
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Procurement, Suspension, and Debarment Criteria Uniform Guidance states “Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220”. Condition We tested two vendors for whom the City entered into covered transactions with. We noted one of the vendors was not reviewed to ensure they were not suspended or debarred from receiving federal funds. We reviewed Sam.gov and noted this vendor was not listed as having an active exclusion. Questioned Costs None. Context 2 vendors were tested from a population of 2. Effect The City has in increased risk of entering into a covered transaction with a suspended or debarred vendor. Cause The City did not follow their procurement policy. Repeat Finding No. Recommendation The City should follow their procurement policy. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-008
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Procurement, Suspension, and Debarment Criteria Uniform Guidance states “Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220”. Condition We tested two vendors for whom the City entered into covered transactions with. We noted one of the vendors was not reviewed to ensure they were not suspended or debarred from receiving federal funds. We reviewed Sam.gov and noted this vendor was not listed as having an active exclusion. Questioned Costs None. Context 2 vendors were tested from a population of 2. Effect The City has in increased risk of entering into a covered transaction with a suspended or debarred vendor. Cause The City did not follow their procurement policy. Repeat Finding No. Recommendation The City should follow their procurement policy. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-009
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Allowable Activities/Costs Criteria An entity should have internal controls in place to ensure all federal expenditures are allowed. Condition We tested 15 transactions for internal controls and noted 2 transactions did not have the proper approval. Questioned Costs None. Context 15 transactions were selected from a population of 17. Effect The City has an increased risk in using federal dollars on an unallowable activity/cost. Cause The City does not have sufficient controls in place to ensure all federal expenditures are being approved. Repeat Finding No. Recommendation The City should implement policies and procedures to ensure all federal expenditures are being approved to ensure allowability with federal requirements. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-009
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Allowable Activities/Costs Criteria An entity should have internal controls in place to ensure all federal expenditures are allowed. Condition We tested 15 transactions for internal controls and noted 2 transactions did not have the proper approval. Questioned Costs None. Context 15 transactions were selected from a population of 17. Effect The City has an increased risk in using federal dollars on an unallowable activity/cost. Cause The City does not have sufficient controls in place to ensure all federal expenditures are being approved. Repeat Finding No. Recommendation The City should implement policies and procedures to ensure all federal expenditures are being approved to ensure allowability with federal requirements. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-010
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Reporting Criteria Single audit reports need to be submitted to the federal clearinghouse within 9 months after year end, or by 30 days after issuance of the entity’s audited financial statements. Condition We noted that the City’s single audit report was not submitted by the due date. Questioned Costs None. Context The City submitted their Data Collection Form late. Effect The City was late on submitting their single audit report. Cause Management oversight Repeat Finding No. Recommendation The City should implement policies and procedures to ensure their single audit report is submitted by the due date. Views of Responsible Officials The City agrees with the recommendation.
Finding 2022-010
Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Reporting Criteria Single audit reports need to be submitted to the federal clearinghouse within 9 months after year end, or by 30 days after issuance of the entity’s audited financial statements. Condition We noted that the City’s single audit report was not submitted by the due date. Questioned Costs None. Context The City submitted their Data Collection Form late. Effect The City was late on submitting their single audit report. Cause Management oversight Repeat Finding No. Recommendation The City should implement policies and procedures to ensure their single audit report is submitted by the due date. Views of Responsible Officials The City agrees with the recommendation.