FAC Explorer

Audit 320112

FY End
2022-12-31
Total Expended
$996,562
Findings
2
Programs
1
Organization: City of Waterloo (WI)
Year: 2022 Accepted: 2024-09-19
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497366 2022-003 Significant Deficiency - L
1073808 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $996,562 Yes 1

Contacts

Name Title Type
WJHLS5H92UM5 Joy Bisco Auditee
9204782260 Jodi Dobson 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. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Waterloo (the City) under programs of the federal government for the year ended December 31, 2022. 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, changes in net position or cash flows of the City.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 accounting records for the grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate. The City has not elected to use the 10% de minimis indirect cost rate.

Finding Details

Finding 2022-003
Criteria: Per the Single Audit Act and terms of the Wastewater Treatment Facility (WWTF) upgrades agreement between the United States Department of Agriculture (USDA) and the City of Waterloo (the City), dated as of June 23, 2021, Section 33, an annual audit is required if the City expended $750,000 or more in Federal financial assistance per fiscal year. The audit prepared by an independent licensed Certified Public Accountant or a State or Federal auditor, if allowed by the State, must be submitted within 9 months of the City fiscal year. Condition: For the fiscal year ending December 31, 2022, the City did not submit an annual single audit report within nine months of year-end. Cause: The City did not have a process in place to track all Federal financial assistance by fiscal year and identify and track reporting provisions of the agreement, resulting in the annual single audit not being prepared within the specified deadline. Effect: Non-compliance with the Single Audit Act and agreement provisions could result in a delay in the single audit. Questioned Costs: None noted Recommendation: The City should develop a compliance checklist for each federal grant agreement that outlines the various requirements and the applicable deadlines. The compliance checklist should be reviewed by a second individual for accuracy. Management Response: Estimated project costs called for not meeting the single audit spend threshold for 2022, requirements were not reassessed until the 2023 single audit where it was recognized that we did meet the spend threshold for single audit in 2022. Management has better knowledge of the requirements of the single audit requirements and proper procedure should be followed in the future years. Anticipated Completion Date: End of 2023 fiscal year.
Finding 2022-003
Criteria: Per the Single Audit Act and terms of the Wastewater Treatment Facility (WWTF) upgrades agreement between the United States Department of Agriculture (USDA) and the City of Waterloo (the City), dated as of June 23, 2021, Section 33, an annual audit is required if the City expended $750,000 or more in Federal financial assistance per fiscal year. The audit prepared by an independent licensed Certified Public Accountant or a State or Federal auditor, if allowed by the State, must be submitted within 9 months of the City fiscal year. Condition: For the fiscal year ending December 31, 2022, the City did not submit an annual single audit report within nine months of year-end. Cause: The City did not have a process in place to track all Federal financial assistance by fiscal year and identify and track reporting provisions of the agreement, resulting in the annual single audit not being prepared within the specified deadline. Effect: Non-compliance with the Single Audit Act and agreement provisions could result in a delay in the single audit. Questioned Costs: None noted Recommendation: The City should develop a compliance checklist for each federal grant agreement that outlines the various requirements and the applicable deadlines. The compliance checklist should be reviewed by a second individual for accuracy. Management Response: Estimated project costs called for not meeting the single audit spend threshold for 2022, requirements were not reassessed until the 2023 single audit where it was recognized that we did meet the spend threshold for single audit in 2022. Management has better knowledge of the requirements of the single audit requirements and proper procedure should be followed in the future years. Anticipated Completion Date: End of 2023 fiscal year.