FAC Explorer

Audit 311562

FY End
2023-12-31
Total Expended
$2.33M
Findings
10
Programs
5
Organization: City of Hutchinson (MN)
Year: 2023 Accepted: 2024-07-02
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
406000 2023-001 Significant Deficiency - P
406001 2023-001 Significant Deficiency - P
406002 2023-001 Significant Deficiency - P
406003 2023-001 Significant Deficiency - P
406004 2023-001 Significant Deficiency - P
982442 2023-001 Significant Deficiency - P
982443 2023-001 Significant Deficiency - P
982444 2023-001 Significant Deficiency - P
982445 2023-001 Significant Deficiency - P
982446 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.06M Yes 1
97.039 Hazard Mitigation Grant $661,626 - 1
20.106 Airport Improvement Program $606,709 - 1
16.607 Bulletproof Vest Partnership Program $3,586 - 1
93.959 Block Grants for Prevention and Treatment of Substance Abuse $400 - 1

Contacts

Name Title Type
KK2YKNNARYY8 Andy Reid Auditee
3202344244 Andrew Berg Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023, the City did not elect to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Hutchinson, Minnesota (the City) under programs of the federal government for the year ended December 31, 2023. The City's reporting entity is defined in Note 1A to the City's financial statements. 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 operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.
Title: Pass-Through Entity Identifying Numbers Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023, the City did not elect to use the 10% de minimis indirect cost rate. Pass-through entity identifying numbers are presented where available.
Title: Subrecipients Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023, the City did not elect to use the 10% de minimis indirect cost rate. There were no expenditures in the current year provided to subrecipients.

Finding Details

Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.
Finding 2023-001
2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.