FAC Explorer

Audit 315959

FY End
2023-12-31
Total Expended
$5.25M
Findings
2
Programs
3
Organization: City of Thorp Wisconsin (WI)
Year: 2023 Accepted: 2024-07-25
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479430 2023-004 Significant Deficiency - I
1055872 2023-004 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $5.10M Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $107,615 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $49,725 - 0

Contacts

Name Title Type
JHBTQGNAZYU5 Michele Pogodzinski Auditee
7156695371 Amber Danielski, CPA Cma Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures in the Schedules are reported on the accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the City’s 2023 financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis rate of 10% of modified total costs. The accompanying Schedules of Expenditures of Federal and State Awards (the Schedules) for the City are 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) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration. The Schedules include all federal and state awards of the City. Because the Schedules present only a selected portion of the 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: OVERSIGHT AGENCIES Accounting Policies: Expenditures in the Schedules are reported on the accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the City’s 2023 financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis rate of 10% of modified total costs. The federal and state oversight agencies for the City are as follows: Federal – Department of Agriculture State – Wisconsin Department of Natural Resources
Title: PASS-THROUGH ENTITIES Accounting Policies: Expenditures in the Schedules are reported on the accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the City’s 2023 financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis rate of 10% of modified total costs. Federal awards have been passed through the following entities: WI DOA – Wisconsin Department of Administration

Finding Details

Finding 2023-004
2023 – 004 Procurement Federal Agency: U.S. Department of Agriculture Federal Program Name: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Number and Year: CPAP1186083 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: September 1, 2022 – December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Section 320.318(i) requires the District to maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. CFR 200.320(c) states that noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Condition: The City did not maintain documentation of the justification for the noncompetitive procurement and that it was done in accordance with Uniform Guidance requirements. Questioned costs: None Context: The City entered into one noncompetitive proposal during the course of the grant and did not maintain documentation of the consideration of the procurement method. Cause: The City does not receive frequent federal awards and was unfamiliar with the documentation requirements surrounding procurement procedures. Effect: Procurement practices may not be in compliance with the Uniform Guidance. Repeat Finding: No Recommendation: City personnel should familiarize themselves with the documentation requirements required by the CFR related to procurement. In addition, City policies and procedures should be modified to ensure documentation is maintained on the justification for any noncompetitive procurement transactions that are entered into and that the justification is reviewed and approved by someone other than the one making that determination. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-004
2023 – 004 Procurement Federal Agency: U.S. Department of Agriculture Federal Program Name: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Number and Year: CPAP1186083 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: September 1, 2022 – December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Section 320.318(i) requires the District to maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. CFR 200.320(c) states that noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Condition: The City did not maintain documentation of the justification for the noncompetitive procurement and that it was done in accordance with Uniform Guidance requirements. Questioned costs: None Context: The City entered into one noncompetitive proposal during the course of the grant and did not maintain documentation of the consideration of the procurement method. Cause: The City does not receive frequent federal awards and was unfamiliar with the documentation requirements surrounding procurement procedures. Effect: Procurement practices may not be in compliance with the Uniform Guidance. Repeat Finding: No Recommendation: City personnel should familiarize themselves with the documentation requirements required by the CFR related to procurement. In addition, City policies and procedures should be modified to ensure documentation is maintained on the justification for any noncompetitive procurement transactions that are entered into and that the justification is reviewed and approved by someone other than the one making that determination. Views of responsible officials: There is no disagreement with the audit finding.