FAC Explorer

Audit 316036

FY End
2023-12-31
Total Expended
$1.90M
Findings
2
Programs
2
Organization: City of Hermantown (MN)
Year: 2023 Accepted: 2024-07-26
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479512 2023-001 Significant Deficiency - I
1055954 2023-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $1.48M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $424,666 - 0

Contacts

Name Title Type
J4HLEYLJLVY5 Kevin Orme Auditee
2187293600 Christopher Knopik Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Hermantown has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Hermantown (the City) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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, changes in net position, or cash flows of the City.

Finding Details

Finding 2023-001
Federal agency: Department of Transportation Federal program name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 202-101-014, 2023 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Agency Number: SP 202-101-014 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Uniform Guidance requires the City to have a procurement policy per §200.319. The Uniform Guidance also requires the City procedures for suspension and debarment per §200.214. Condition: The City does not have a procurement policy which includes all required aspects under the Uniform Guidance including suspension and debarment. Questioned Costs: None Context: The City does not have a procurement policy which includes all required aspects under the Uniform Guidance including suspension and debarment. Cause: The City was unaware of the requirement. Effect: The City is not in compliance with the Uniform Guidance procurement policy requirement. This may lead to the payment of contracts that do not comply with federal regulations and guidelines, which could result in the inappropriate use of federal funds or expending funds to suspended or debarred entities. Recommendation: We recommend the City implement a procurement, suspension, and debarment policy that complies with the Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal agency: Department of Transportation Federal program name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 202-101-014, 2023 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Agency Number: SP 202-101-014 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Uniform Guidance requires the City to have a procurement policy per §200.319. The Uniform Guidance also requires the City procedures for suspension and debarment per §200.214. Condition: The City does not have a procurement policy which includes all required aspects under the Uniform Guidance including suspension and debarment. Questioned Costs: None Context: The City does not have a procurement policy which includes all required aspects under the Uniform Guidance including suspension and debarment. Cause: The City was unaware of the requirement. Effect: The City is not in compliance with the Uniform Guidance procurement policy requirement. This may lead to the payment of contracts that do not comply with federal regulations and guidelines, which could result in the inappropriate use of federal funds or expending funds to suspended or debarred entities. Recommendation: We recommend the City implement a procurement, suspension, and debarment policy that complies with the Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.