Audit 304379

FY End
2022-12-31
Total Expended
$10.24M
Findings
10
Programs
16
Year: 2022 Accepted: 2024-04-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
394372 2022-003 Significant Deficiency - I
394373 2022-003 Significant Deficiency - I
394374 2022-003 Significant Deficiency - I
394375 2022-003 Significant Deficiency - I
394376 2022-003 Significant Deficiency - I
970814 2022-003 Significant Deficiency - I
970815 2022-003 Significant Deficiency - I
970816 2022-003 Significant Deficiency - I
970817 2022-003 Significant Deficiency - I
970818 2022-003 Significant Deficiency - I

Contacts

Name Title Type
PKJJTZ4A5ME8 Carol Stancato Auditee
2626534184 Shannon D. Small Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accounting records for the grant programs are maintained on the modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The City of Kenosha has not elected to apply the 10% de minimis cost rate to awards for the year ended December 31, 2022. The Schedules of Expenditures of Federal and State Awards includes all of the funds of the City of Kenosha, Wisconsin (the City). The reporting entity for the City is based upon criteria established by the Governmental Accounting Standards Board. The Housing Authority is audited separately, in accordance with Government Auditing Standards, Uniform Guidance, and the Wisconsin State Single Audit Guidelines. A separate report on federal and state awards is prepared for the Housing Authority and, accordingly, those federal and state funds are not included in this report. State programs reported include only those programs required to be included by the State Single Audit Guidelines.
Title: FEDERALLY FUNDED LOAN PROGRAMS Accounting Policies: The accounting records for the grant programs are maintained on the modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The City of Kenosha has not elected to apply the 10% de minimis cost rate to awards for the year ended December 31, 2022. Loan balances of federally funded loan programs at December 31, 2022 included the following: Outstanding Loans as CFDA # Program of December 31, 2022 14.218 Community Development Block Grant $ 119,017 14.239 Home Investment Partnership Program 2,428,062 14.228 Neighborhood Stabilization Program 100,065

Finding Details

Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Federal and State Agencies: Federal Transit Administration and Wisconsin Department of Transportation Federal and State Program Names: Federal Transit Cluster and Transit Operating Aids/Transit Operating Aids – Chapter 85.205 Assistance Listing Number and State Program Number: 20.507, 20.525, and 395.104 Federal and State Award Identification Numbers and Year: WI-2017-004(03) – 2017; WI-2020-016 (01 CARES) – 2020; WI-2020-041(Oper) – 2020; WI-2021-003 (Cap) – 2021; WI-2022-008 (Oper) – 2022; 2022 WI Operating Award Periods: January 3, 2017 – December 31, 2022; June 12, 2020 – March 30, 2026; July 7, 2020 – March 30, 2024; December 21, 2020 – March 30, 2025; December 14, 2021 – March 30, 2025; January 1, 2022 – December 31, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 3 of the 13 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect for the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, but did not update it’s written procurement policy. Cause: The City did not review and update the procurement policy in effect to comply with updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.