Audit 319792

FY End
2023-12-31
Total Expended
$1.39M
Findings
40
Programs
2
Organization: City of Henning (MN)
Year: 2023 Accepted: 2024-09-17
Auditor: Carlsonsv LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
497200 2023-001 Material Weakness Yes P
497201 2023-002 Material Weakness Yes P
497202 2023-003 Significant Deficiency Yes P
497203 2023-004 Significant Deficiency Yes P
497204 2023-001 Material Weakness Yes P
497205 2023-002 Material Weakness Yes P
497206 2023-003 Significant Deficiency Yes P
497207 2023-004 Significant Deficiency Yes P
497208 2023-001 Material Weakness Yes P
497209 2023-002 Material Weakness Yes P
497210 2023-003 Significant Deficiency Yes P
497211 2023-004 Significant Deficiency Yes P
497212 2023-001 Material Weakness Yes P
497213 2023-002 Material Weakness Yes P
497214 2023-003 Significant Deficiency Yes P
497215 2023-004 Significant Deficiency Yes P
497216 2023-001 Material Weakness Yes P
497217 2023-002 Material Weakness Yes P
497218 2023-003 Significant Deficiency Yes P
497219 2023-004 Significant Deficiency Yes P
1073642 2023-001 Material Weakness Yes P
1073643 2023-002 Material Weakness Yes P
1073644 2023-003 Significant Deficiency Yes P
1073645 2023-004 Significant Deficiency Yes P
1073646 2023-001 Material Weakness Yes P
1073647 2023-002 Material Weakness Yes P
1073648 2023-003 Significant Deficiency Yes P
1073649 2023-004 Significant Deficiency Yes P
1073650 2023-001 Material Weakness Yes P
1073651 2023-002 Material Weakness Yes P
1073652 2023-003 Significant Deficiency Yes P
1073653 2023-004 Significant Deficiency Yes P
1073654 2023-001 Material Weakness Yes P
1073655 2023-002 Material Weakness Yes P
1073656 2023-003 Significant Deficiency Yes P
1073657 2023-004 Significant Deficiency Yes P
1073658 2023-001 Material Weakness Yes P
1073659 2023-002 Material Weakness Yes P
1073660 2023-003 Significant Deficiency Yes P
1073661 2023-004 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
66.468 Drinking Water State Revolving Fund $455,292 - 4
66.458 Clean Water State Revolving Fund $185,475 Yes 4

Contacts

Name Title Type
U6RLFNM7SSL3 Jenna Kovarik Auditee
2185832402 Dean Birkeland Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City elected not to us the de minimis cost rate The accompanying schedule of expenditures of federal awards includes the federal award activity of City of Henning for programs of the federal government for the year ended December 31, 2023. The reporting entity is defined in Note 1 to the City’s basic 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, it is not intended to and does not present the net position, changes in net position, or cash flows of the City of Henning.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City elected not to us the de minimis cost rate Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City elected not to us the de minimis cost rate The City has elected not to use the 10% de minimus indirect cost rate allowed under Uniform Guidance.

Finding Details

Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed monthly.
Management’s Response and Actions Planned: The city clerk-treasurer plans to assume full responsibility for all bank reconciliations and ensure they are completed accurately.
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
3.      Using the knowledge of management and the Council to review accounting records and reports.