FAC Explorer

Audit 314939

FY End
2023-12-31
Total Expended
$25.47M
Findings
2
Programs
6
Organization: City of Owatonna (MN)
Year: 2023 Accepted: 2024-07-11
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478270 2023-002 Significant Deficiency - I
1054712 2023-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $25.01M Yes 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $196,842 - 0
20.106 Airport Improvement Program $134,238 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $118,242 Yes 1
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $5,217 - 0
16.607 Bulletproof Vest Partnership Program $5,104 - 0

Contacts

Name Title Type
DFLCVDJ91TM7 Rhonda Moen Auditee
5077747350 Mary Reedy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 The accompanying schedule of expenditures of federal awards presents the activities of the federal awards (the Schedule) programs expended by the City of Owatonna. The City’s reporting entity is defined in Note 1 to the 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 the operations of the City, it is not intended to and does not present the financial position or changes in net position of the City. The Schedule does not include the operations of the Owatonna Public Utilities Commission. NOTE 2 The expenditures on this schedule are on the modified accrual basis of accounting, which is described in Note 1 to the basic financial statements of the City. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. NOTE 3 N/A – The pass-through entity identifying number is unknown or doesn’t have one because of direct funding. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-002
Finding: 2023-002 Lack of Procurement Policy – Procurement, Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: The City is required to have controls in place to ensure vendors are not federally suspended or debarred prior to payment. Condition: There is a lack of an official procurement, suspension and debarment policy as required by Uniform Grant Guidance. Questioned Costs: None Context: During testing, it was noted that the City does not have a Uniform Grant Guidance Procurement Policy designating controls of procurement, suspension & debarment procedures. Cause: Oversight Effect: There is potential for vendors to be paid with federal dollars without receiving proper approval or while being federally suspended. Repeat Finding: No. Recommendation: We recommend the City adopt a Procurement Policy in line with Uniform Grant Guidance. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-002
Finding: 2023-002 Lack of Procurement Policy – Procurement, Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: The City is required to have controls in place to ensure vendors are not federally suspended or debarred prior to payment. Condition: There is a lack of an official procurement, suspension and debarment policy as required by Uniform Grant Guidance. Questioned Costs: None Context: During testing, it was noted that the City does not have a Uniform Grant Guidance Procurement Policy designating controls of procurement, suspension & debarment procedures. Cause: Oversight Effect: There is potential for vendors to be paid with federal dollars without receiving proper approval or while being federally suspended. Repeat Finding: No. Recommendation: We recommend the City adopt a Procurement Policy in line with Uniform Grant Guidance. Views of Responsible Officials: There is no disagreement with the audit finding.