FAC Explorer

Audit 310429

FY End
2021-06-30
Total Expended
$2.35M
Findings
2
Programs
1
Organization: City of Pacific Junction (NE)
Year: 2021 Accepted: 2024-06-27
Auditor: Lengemann & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403257 2021-001 Material Weakness - C
979699 2021-001 Material Weakness - C

Programs

ALN Program Spent Major Findings
97.039 Hazard Mitigation Grant $2.35M Yes 1

Contacts

Name Title Type
YV5JK99P3EW3 Korrena Neppl Auditee
7126228157 Randy Hood Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Accounting Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the cash basis of accounting. Most federal grants received by the City are funded on a cost-reimbursement basis whereby expenditures are subject to audit by various government agencies prior to submitting reimbursement. Under such circumstances and in a manner consistent with the basis of accounting described above. This treatment results in timing differences, which are resolved over the term of the grant. 2. Reporting Entity The City, for purposes of the Schedule of Expenditures of Federal Awards, includes all funds for which the City is financially accountable. 3. Pass-Through Awards The City receives certain federal awards in the form of pass-through awards from the Iowa Department of Homeland Security and Emergency Management and State of Iowa and other various agencies. Such amounts received as pass-through awards are specifically identified on Schedule of Expenditures of Federal Awards. 4. Contingencies The City receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have a material financial impact. 5. Indirect Costs The City has not elected to use the 10% de minimus cost rate on grants that allow for it. De Minimis Rate Used: N Rate Explanation: No indirect cost was used. The Schedule of Expenditures of Federal Awards is prepared on the cash basis of accounting.Most federal grants received by the City are funded on a cost-reimbursement basis whereby expenditures are subject to audit by various government agencies prior to submitting reimbursement. Under such circumstances and in a manner consistent with the basis of accounting described above. This treatment results in timing differences, which are resolved over the term of the grant.
Title: 2. Reporting Entity Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the cash basis of accounting. Most federal grants received by the City are funded on a cost-reimbursement basis whereby expenditures are subject to audit by various government agencies prior to submitting reimbursement. Under such circumstances and in a manner consistent with the basis of accounting described above. This treatment results in timing differences, which are resolved over the term of the grant. 2. Reporting Entity The City, for purposes of the Schedule of Expenditures of Federal Awards, includes all funds for which the City is financially accountable. 3. Pass-Through Awards The City receives certain federal awards in the form of pass-through awards from the Iowa Department of Homeland Security and Emergency Management and State of Iowa and other various agencies. Such amounts received as pass-through awards are specifically identified on Schedule of Expenditures of Federal Awards. 4. Contingencies The City receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have a material financial impact. 5. Indirect Costs The City has not elected to use the 10% de minimus cost rate on grants that allow for it. De Minimis Rate Used: N Rate Explanation: No indirect cost was used. The City, for purposes of the Schedule of Expenditures of Federal Awards, includes all funds for which the City is financially accountable
Title: 3. Pass-through Awards Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the cash basis of accounting. Most federal grants received by the City are funded on a cost-reimbursement basis whereby expenditures are subject to audit by various government agencies prior to submitting reimbursement. Under such circumstances and in a manner consistent with the basis of accounting described above. This treatment results in timing differences, which are resolved over the term of the grant. 2. Reporting Entity The City, for purposes of the Schedule of Expenditures of Federal Awards, includes all funds for which the City is financially accountable. 3. Pass-Through Awards The City receives certain federal awards in the form of pass-through awards from the Iowa Department of Homeland Security and Emergency Management and State of Iowa and other various agencies. Such amounts received as pass-through awards are specifically identified on Schedule of Expenditures of Federal Awards. 4. Contingencies The City receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have a material financial impact. 5. Indirect Costs The City has not elected to use the 10% de minimus cost rate on grants that allow for it. De Minimis Rate Used: N Rate Explanation: No indirect cost was used. The City receives certain federal awards in the form of pass-through awards from the Iowa Department of Homeland Security and Emergency Management and State of Iowa and other various agencies. Such amounts received as pass-through awards are specifically identified on Schedule of Expenditures of Federal Awards.
Title: 4. Contingencies Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the cash basis of accounting. Most federal grants received by the City are funded on a cost-reimbursement basis whereby expenditures are subject to audit by various government agencies prior to submitting reimbursement. Under such circumstances and in a manner consistent with the basis of accounting described above. This treatment results in timing differences, which are resolved over the term of the grant. 2. Reporting Entity The City, for purposes of the Schedule of Expenditures of Federal Awards, includes all funds for which the City is financially accountable. 3. Pass-Through Awards The City receives certain federal awards in the form of pass-through awards from the Iowa Department of Homeland Security and Emergency Management and State of Iowa and other various agencies. Such amounts received as pass-through awards are specifically identified on Schedule of Expenditures of Federal Awards. 4. Contingencies The City receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have a material financial impact. 5. Indirect Costs The City has not elected to use the 10% de minimus cost rate on grants that allow for it. De Minimis Rate Used: N Rate Explanation: No indirect cost was used. The City receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have a material financial impact.
Title: 5. Indirect costs Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the cash basis of accounting. Most federal grants received by the City are funded on a cost-reimbursement basis whereby expenditures are subject to audit by various government agencies prior to submitting reimbursement. Under such circumstances and in a manner consistent with the basis of accounting described above. This treatment results in timing differences, which are resolved over the term of the grant. 2. Reporting Entity The City, for purposes of the Schedule of Expenditures of Federal Awards, includes all funds for which the City is financially accountable. 3. Pass-Through Awards The City receives certain federal awards in the form of pass-through awards from the Iowa Department of Homeland Security and Emergency Management and State of Iowa and other various agencies. Such amounts received as pass-through awards are specifically identified on Schedule of Expenditures of Federal Awards. 4. Contingencies The City receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have a material financial impact. 5. Indirect Costs The City has not elected to use the 10% de minimus cost rate on grants that allow for it. De Minimis Rate Used: N Rate Explanation: No indirect cost was used. The City has not elected to use the 10% de minimus cost rate on grants that allow for it.

Finding Details

Finding 2021-001
Internal Control over Major Programs Finding 2021-001 Type: Material weakness Condition: There is a requirement for any advance in reimbursement to be fully expended within 30 days of it becoming available for use. Criteria: Cash management section of the 2 CFR section 200.305. Cause: A failure in the design of internal controls over compliance resulted in the City not abiding by this requirement. Effect: There were instances where the agreements made to purchase property and other associated costs were altered or not followed through with. The advance in reimbursement was not completely used within 30 days of it becoming available for use. Compliance Finding 2021-001 Type: Noncompliance Condition: The compliance requirement for the cash management 2 CFR section 200.305 states that any advanced reimbursement should be used within 30 days of receiving the payment. An advanced payment was received under the Hazard Mitigation Grant that was not completely expended within this period. Criteria: Cash management section of the 2 CFR section 200.305. Cause: The nature of these transactions cause timing discrepancies, which result in internal controls over compliance to be deficient, but were not considered to cause any material misstatements. Effect: There were instances where the agreements made to purchase property and other associated costs were altered or not followed through with. The advance in reimbursement was not completely used within 30 days of it becoming available for use. Recommendation: We recommend the Clerk work more closely with the award agencies to ensure the eligibility of all claims for reimbursement is understood by both parties.
Finding 2021-001
Internal Control over Major Programs Finding 2021-001 Type: Material weakness Condition: There is a requirement for any advance in reimbursement to be fully expended within 30 days of it becoming available for use. Criteria: Cash management section of the 2 CFR section 200.305. Cause: A failure in the design of internal controls over compliance resulted in the City not abiding by this requirement. Effect: There were instances where the agreements made to purchase property and other associated costs were altered or not followed through with. The advance in reimbursement was not completely used within 30 days of it becoming available for use. Compliance Finding 2021-001 Type: Noncompliance Condition: The compliance requirement for the cash management 2 CFR section 200.305 states that any advanced reimbursement should be used within 30 days of receiving the payment. An advanced payment was received under the Hazard Mitigation Grant that was not completely expended within this period. Criteria: Cash management section of the 2 CFR section 200.305. Cause: The nature of these transactions cause timing discrepancies, which result in internal controls over compliance to be deficient, but were not considered to cause any material misstatements. Effect: There were instances where the agreements made to purchase property and other associated costs were altered or not followed through with. The advance in reimbursement was not completely used within 30 days of it becoming available for use. Recommendation: We recommend the Clerk work more closely with the award agencies to ensure the eligibility of all claims for reimbursement is understood by both parties.