Audit 321095

FY End
2023-12-31
Total Expended
$1.10M
Findings
2
Programs
3
Organization: City of Omro (WI)
Year: 2023 Accepted: 2024-09-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
498367 2023-003 Significant Deficiency Yes L
1074809 2023-003 Significant Deficiency Yes L

Contacts

Name Title Type
NYLAHE8RFQG7 Brandon Hennes Auditee
9206857000 Andrea Jansen Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or 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. 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. De Minimis Rate Used: N Rate Explanation: The City of Omro 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 Omro 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 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 of Omro, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Omro.
Title: Pass Through Agencies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or 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. 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. De Minimis Rate Used: N Rate Explanation: The City of Omro has not elected to use the 10% de minimis indirect cost rate. The City of Omro received federal awards from the following pass-through agencies: WI DOA Wisconsin Department of Administration WEC Wisconsin Elections Commission

Finding Details

Finding 2023-003 Assistance Listing Number: 14.228 Program Title: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Federal Grantor: U.S. Department of Housing and Urban Development Pass-Through Agency: Wisconsin Department of Adminstration Award Number / Year: 20-27 / 2023 Repeat Finding: 2022-003 Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition/Context: One of the two reports selected for testing were not independently reviewed before submission. The sample is not statistically valid. Cause: The City did not have internal control procedures in place requiring an independent person to review all reports before submission to ensure accuracy and timeliness. Questioned Costs: None noted. Effect: Reports submitted could contain errors. Recommendation: The City should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports before submissions to federal agencies Management's Response: Upon start of employment of a new City Administrator/Treasurer on October 9, 2023, that position employee will be reviewing such reports and financial documents on a regular basis as part of his job duties.
Finding 2023-003 Assistance Listing Number: 14.228 Program Title: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Federal Grantor: U.S. Department of Housing and Urban Development Pass-Through Agency: Wisconsin Department of Adminstration Award Number / Year: 20-27 / 2023 Repeat Finding: 2022-003 Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition/Context: One of the two reports selected for testing were not independently reviewed before submission. The sample is not statistically valid. Cause: The City did not have internal control procedures in place requiring an independent person to review all reports before submission to ensure accuracy and timeliness. Questioned Costs: None noted. Effect: Reports submitted could contain errors. Recommendation: The City should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports before submissions to federal agencies Management's Response: Upon start of employment of a new City Administrator/Treasurer on October 9, 2023, that position employee will be reviewing such reports and financial documents on a regular basis as part of his job duties.