FAC Explorer

Audit 303628

FY End
2023-12-31
Total Expended
$3.92M
Findings
12
Programs
2
Organization: City of Fosston (MN)
Year: 2023 Accepted: 2024-04-16
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393367 2023-003 Significant Deficiency - N
393368 2023-003 Significant Deficiency - N
393369 2023-003 Significant Deficiency - N
393370 2023-004 Significant Deficiency - N
393371 2023-004 Significant Deficiency - N
393372 2023-004 Significant Deficiency - N
969809 2023-003 Significant Deficiency - N
969810 2023-003 Significant Deficiency - N
969811 2023-003 Significant Deficiency - N
969812 2023-004 Significant Deficiency - N
969813 2023-004 Significant Deficiency - N
969814 2023-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $75,945 Yes 2
20.509 Formula Grants for Rural Areas and Tribal Transit Program $68,500 - 0

Contacts

Name Title Type
ENN1LSDJ1J95 Cassie Heide Auditee
2184351959 Tracee Bruggeman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). 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 (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 accompanying schedule of expenditures of federal awards includes the federal award activity of City of Fosston, under programs of the federal government for the year ended December 31, 2023. 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 financial position, changes in net position or cash flows of City of Fosston.
Title: PASS-THROUGH ENTITIES Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). 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 (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. Pass-through entities listed above without a pass-through number use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.

Finding Details

Finding 2023-003
2023-003 FINDING Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria Per the Policies and Procedures Concerning the Generation and Use of Airport Revenue (64 FR 7696) issued by the Federal Aviation Administration, all airport revenues need to be accounted for and properly documented. Condition The City did not have agreements in place for two hangar rentals for the year under audit and did not have sufficient supporting documentation for an aviation fuel sale transaction. Questioned Costs None Context The City did not have support for airport revenue. Cause Management oversight. Effect Airport revenues may not be reported accurately. Repeat Finding No Recommendation The City should implement procedures to ensure active agreements are in place for all airport revenues and all supporting documentation is maintained to account for airport revenues. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-003
2023-003 FINDING Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria Per the Policies and Procedures Concerning the Generation and Use of Airport Revenue (64 FR 7696) issued by the Federal Aviation Administration, all airport revenues need to be accounted for and properly documented. Condition The City did not have agreements in place for two hangar rentals for the year under audit and did not have sufficient supporting documentation for an aviation fuel sale transaction. Questioned Costs None Context The City did not have support for airport revenue. Cause Management oversight. Effect Airport revenues may not be reported accurately. Repeat Finding No Recommendation The City should implement procedures to ensure active agreements are in place for all airport revenues and all supporting documentation is maintained to account for airport revenues. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-003
2023-003 FINDING Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria Per the Policies and Procedures Concerning the Generation and Use of Airport Revenue (64 FR 7696) issued by the Federal Aviation Administration, all airport revenues need to be accounted for and properly documented. Condition The City did not have agreements in place for two hangar rentals for the year under audit and did not have sufficient supporting documentation for an aviation fuel sale transaction. Questioned Costs None Context The City did not have support for airport revenue. Cause Management oversight. Effect Airport revenues may not be reported accurately. Repeat Finding No Recommendation The City should implement procedures to ensure active agreements are in place for all airport revenues and all supporting documentation is maintained to account for airport revenues. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition For two subcontractors, the required certified payrolls were not submitted to the City or the City’s Engineer for the project. Questioned Costs None Context A sample of five weeks during the construction period was selected for testing and all certified payrolls for these five weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have the certified payrolls for two subcontractors who performed work during this five-week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding No Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition For two subcontractors, the required certified payrolls were not submitted to the City or the City’s Engineer for the project. Questioned Costs None Context A sample of five weeks during the construction period was selected for testing and all certified payrolls for these five weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have the certified payrolls for two subcontractors who performed work during this five-week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding No Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition For two subcontractors, the required certified payrolls were not submitted to the City or the City’s Engineer for the project. Questioned Costs None Context A sample of five weeks during the construction period was selected for testing and all certified payrolls for these five weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have the certified payrolls for two subcontractors who performed work during this five-week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding No Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-003
2023-003 FINDING Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria Per the Policies and Procedures Concerning the Generation and Use of Airport Revenue (64 FR 7696) issued by the Federal Aviation Administration, all airport revenues need to be accounted for and properly documented. Condition The City did not have agreements in place for two hangar rentals for the year under audit and did not have sufficient supporting documentation for an aviation fuel sale transaction. Questioned Costs None Context The City did not have support for airport revenue. Cause Management oversight. Effect Airport revenues may not be reported accurately. Repeat Finding No Recommendation The City should implement procedures to ensure active agreements are in place for all airport revenues and all supporting documentation is maintained to account for airport revenues. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-003
2023-003 FINDING Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria Per the Policies and Procedures Concerning the Generation and Use of Airport Revenue (64 FR 7696) issued by the Federal Aviation Administration, all airport revenues need to be accounted for and properly documented. Condition The City did not have agreements in place for two hangar rentals for the year under audit and did not have sufficient supporting documentation for an aviation fuel sale transaction. Questioned Costs None Context The City did not have support for airport revenue. Cause Management oversight. Effect Airport revenues may not be reported accurately. Repeat Finding No Recommendation The City should implement procedures to ensure active agreements are in place for all airport revenues and all supporting documentation is maintained to account for airport revenues. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-003
2023-003 FINDING Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria Per the Policies and Procedures Concerning the Generation and Use of Airport Revenue (64 FR 7696) issued by the Federal Aviation Administration, all airport revenues need to be accounted for and properly documented. Condition The City did not have agreements in place for two hangar rentals for the year under audit and did not have sufficient supporting documentation for an aviation fuel sale transaction. Questioned Costs None Context The City did not have support for airport revenue. Cause Management oversight. Effect Airport revenues may not be reported accurately. Repeat Finding No Recommendation The City should implement procedures to ensure active agreements are in place for all airport revenues and all supporting documentation is maintained to account for airport revenues. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition For two subcontractors, the required certified payrolls were not submitted to the City or the City’s Engineer for the project. Questioned Costs None Context A sample of five weeks during the construction period was selected for testing and all certified payrolls for these five weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have the certified payrolls for two subcontractors who performed work during this five-week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding No Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition For two subcontractors, the required certified payrolls were not submitted to the City or the City’s Engineer for the project. Questioned Costs None Context A sample of five weeks during the construction period was selected for testing and all certified payrolls for these five weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have the certified payrolls for two subcontractors who performed work during this five-week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding No Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program Airport Improvement Program (AL 20.106) U.S Department of Transportation Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23 Federal Award Year: 2023, 2024 Passed Through Minnesota Department of Transportation Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition For two subcontractors, the required certified payrolls were not submitted to the City or the City’s Engineer for the project. Questioned Costs None Context A sample of five weeks during the construction period was selected for testing and all certified payrolls for these five weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have the certified payrolls for two subcontractors who performed work during this five-week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding No Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.