FAC Explorer

Audit 307437

FY End
2022-12-31
Total Expended
$1.07M
Findings
4
Programs
3
Organization: Village of Wonewoc, Wisconsin (WI)
Year: 2022 Accepted: 2024-05-29
Auditor: Johnson Block & Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398689 2022-003 Material Weakness - P
398690 2022-004 Material Weakness - P
975131 2022-003 Material Weakness - P
975132 2022-004 Material Weakness - P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.01M Yes 2
97.039 Hazard Mitigation Grant $42,426 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $18,342 - 0

Contacts

Name Title Type
RGC4FCZMAPK5 Lee Kucher Auditee
6084643114 Tara Bast Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: The accounting records for the grant program are maintained on the modified accrual basis of accounting. The information in these schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance), and the State Single Audit Guidelines. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The Village did not elect to use the 10% de minimis indirect cost rate. The accompanying Schedules of Expenditures of Federal and State Awards include the federal and state grant activity of the Village of Wonewoc.
Title: Federal Awards in the Form of Loans Accounting Policies: The accounting records for the grant program are maintained on the modified accrual basis of accounting. The information in these schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and the Audit Requirements for Federal Awards (Uniform Guidance), and the State Single Audit Guidelines. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The Village did not elect to use the 10% de minimis indirect cost rate. The Village is currently making draws on interim financing that when the project is complete, will be refinanced by a USDA mortgage. Interim financing through December 31, 2022, in the form of debt obligations outstanding were $871,997. This is equal to the amount of receipts reported on the schedule of federal awards for the year ended December 31, 2022.

Finding Details

Finding 2022-003
2022-003 Drafting Schedule of Expenditures of Federal Awards and Related Notes Condition: Like other entities of similar size, the Village requires the assistance of the auditor to prepare the schedule of expenditures of federal awards in accordance with the Uniform Guidance. Criteria: Internal controls over preparation of the schedule of expenditures of federal awards should be in place to provide reasonable assurance that a misstatement in the schedule of expenditures of federal awards would be prevented or detected. Cause: Management relies on the auditor to assist with the preparation of the schedule of expenditures of federal awards. Effect: The Village’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Auditor’s Recommendation: The auditor will continue to work with the Village, providing information and training when necessary, to make the Village’s personnel more knowledgeable about its responsibility for the schedule of expenditures of federal awards. Management Response: The control deficiency has been discussed with management and they acknowledge their responsibility for the schedule of expenditures of federal awards. The Village accepts responsibility for the schedule of expenditures of federal awards. Due to the technical nature of preparing the schedule of expenditures of federal awards, and due to limited resources, the Village does not anticipate the need for this assistance to change in the foreseeable future.
Finding 2022-004
2022-004 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The Village does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedule of expenditures of federal and state awards is high. Auditor’s Recommendation: We recommend that the Village works on written policies and procedures over grants and grant expenditures. Management Response: The Village will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.
Finding 2022-003
2022-003 Drafting Schedule of Expenditures of Federal Awards and Related Notes Condition: Like other entities of similar size, the Village requires the assistance of the auditor to prepare the schedule of expenditures of federal awards in accordance with the Uniform Guidance. Criteria: Internal controls over preparation of the schedule of expenditures of federal awards should be in place to provide reasonable assurance that a misstatement in the schedule of expenditures of federal awards would be prevented or detected. Cause: Management relies on the auditor to assist with the preparation of the schedule of expenditures of federal awards. Effect: The Village’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Auditor’s Recommendation: The auditor will continue to work with the Village, providing information and training when necessary, to make the Village’s personnel more knowledgeable about its responsibility for the schedule of expenditures of federal awards. Management Response: The control deficiency has been discussed with management and they acknowledge their responsibility for the schedule of expenditures of federal awards. The Village accepts responsibility for the schedule of expenditures of federal awards. Due to the technical nature of preparing the schedule of expenditures of federal awards, and due to limited resources, the Village does not anticipate the need for this assistance to change in the foreseeable future.
Finding 2022-004
2022-004 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The Village does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedule of expenditures of federal and state awards is high. Auditor’s Recommendation: We recommend that the Village works on written policies and procedures over grants and grant expenditures. Management Response: The Village will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.