FAC Explorer

Audit 320339

FY End
2022-12-31
Total Expended
$2.05M
Findings
2
Programs
3
Organization: City of Owen (WI)
Year: 2022 Accepted: 2024-09-23
Auditor: Bauman Associates LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497575 2022-002 Material Weakness - P
1074017 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
97.047 Bric: Building Resilient Infrastructure and Communities $1.62M Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $428,550 - 0
90.404 Hava Election Security Grants $1,770 - 0

Contacts

Name Title Type
Z4ZXN37L5243 Tracy Rau Auditee
7152292404 Joe Harrison Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of Presentation Accounting Policies: See Note 1 De Minimis Rate Used: N Rate Explanation: Cost rate used was approved by pass-through entity for benefits for the major program tested The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal grant activity of the City of Owen 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 fund balances/net position, or cash flows of the City.
Title: Note 2 Summary of Significant Accounting Policies Accounting Policies: See Note 1 De Minimis Rate Used: N Rate Explanation: Cost rate used was approved by pass-through entity for benefits for the major program tested Expenditures reported on the Schedule are reported on the modified 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual; i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis; i.e., when the revenue has been earned and the liability is incurred.
Title: Note 3 10 Percent De Minimis Indirect Cost Rate Accounting Policies: See Note 1 De Minimis Rate Used: N Rate Explanation: Cost rate used was approved by pass-through entity for benefits for the major program tested The City of Owen has not elected to use the 10 percent de minimis indirect cost rate.

Finding Details

Finding 2022-002
Material Weakness – Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The City is responsible for establishing and maintaining internal control and for the fair presentation of the City’s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the City’s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the City’s internal control. Management has the requisite skills and knowledge to accept responsibility for these statements, however a stronger knowledge of GAAP on the part of management would be ideal. Cause: The City does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance.View of Responsible Official: We feel that the costs involved in educating staff to be adequately trained in GAAP would outweigh the benefit of possessing this knowledge. The financial statements, disclosures, supplemental information, schedule of expenditure of federal awards and schedule of state financial assistance are reviewed by management prior to issuance and we feel we possess enough financial knowledge to accept responsibility for these statements and we will continue to engage the auditing firm to prepare drafts of the financial statements, disclosures, supplemental information, schedule of expenditure of federal awards and schedule of state financial assistance. Questioned Costs: None. Effect: The City engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the City. Recommendation: The City should consider providing some basic financial statement training for accounting personnel.
Finding 2022-002
Material Weakness – Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The City is responsible for establishing and maintaining internal control and for the fair presentation of the City’s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the City’s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the City’s internal control. Management has the requisite skills and knowledge to accept responsibility for these statements, however a stronger knowledge of GAAP on the part of management would be ideal. Cause: The City does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance.View of Responsible Official: We feel that the costs involved in educating staff to be adequately trained in GAAP would outweigh the benefit of possessing this knowledge. The financial statements, disclosures, supplemental information, schedule of expenditure of federal awards and schedule of state financial assistance are reviewed by management prior to issuance and we feel we possess enough financial knowledge to accept responsibility for these statements and we will continue to engage the auditing firm to prepare drafts of the financial statements, disclosures, supplemental information, schedule of expenditure of federal awards and schedule of state financial assistance. Questioned Costs: None. Effect: The City engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the City. Recommendation: The City should consider providing some basic financial statement training for accounting personnel.