FAC Explorer

Audit 321171

FY End
2023-12-31
Total Expended
$999,860
Findings
4
Programs
6
Organization: City of Union City (IN)
Year: 2023 Accepted: 2024-09-26
Auditor: Crowe LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498471 2023-001 Significant Deficiency - L
498472 2023-002 Significant Deficiency - N
1074913 2023-001 Significant Deficiency - L
1074914 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $464,011 Yes 2
10.760 Water and Waste Disposal Systems for Rural Communities $273,653 - 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $165,664 - 0
10.351 Rural Business Development Grant $84,798 - 0
20.205 Highway Planning and Construction $11,014 - 0
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $720 - 0

Contacts

Name Title Type
FUHUMC7LRAF3 Amy Richards Auditee
7659646534 Scott Nickerson Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expensed when the reimbursement is received. De Minimis Rate Used: Y Rate Explanation: The City has 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 Union City (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 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 receipts, disbursements, and cash and investment balances – regulatory basis of the City. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expensed when the reimbursement is received.
Title: NOTE 2 - INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expensed when the reimbursement is received. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
FINDING 2023-001 Information on the federal program: Subject: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii - Internal Controls Federal Agency: Department of Housing and Urban Development Assistance Listing Number: 14.228 Compliance Requirement: Reporting Audit Finding: Significant Deficiency Criteria: 2 CFR section 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Condition: An effective internal control system was not in place at the City in order to ensure compliance with requirements related to the grant agreement and the reporting compliance requirement. Cause: The City's management had not developed a system of internal controls to ensure compliance with the reporting requirements. Effect: The failure to establish an effective internal control system placed the City at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that for the two semi-annual reports selected for testing, the City did not perform a documented review and approval of the reporting package prepared by the City’s consultant before the submission of the report. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the City implement a documented, formal review of the semi-annual reports before they are submitted for reimbursement. Views of Responsible Officials and Planned Corrective Actions: For the views of the responsible officials, refer to the Corrective Action Plan that is part of this report.
Finding 2023-002
FINDING 2023-002 Information on the federal program: Subject: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii - Internal Controls Federal Agency: Department of Housing and Urban Development Assistance Listing Number: 14.228 Compliance Requirement: Special Tests and Provisions - Wage Rate Requirements Audit Finding: Significant Deficiency Criteria: 2 CFR section 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Condition: An effective internal control system was not in place at the City in order to ensure compliance with requirements related to the grant agreement and the reporting compliance requirement. Cause: The City's management had not developed a system of internal controls to ensure compliance with the reporting requirements. Effect: The failure to establish an effective internal control system placed the City at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that for the payroll periods sampled for wage-rate testing, the City did not perform a periodic, documented review and approval of the performance and results of wage rate testing performed by the City’s consultant. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the City implement a documented, formal review of the wage-rate testing done by the contracted consulting company. Views of Responsible Officials and Planned Corrective Actions: For the views of the responsible officials, refer to the Corrective Action Plan that is part of this report.
Finding 2023-001
FINDING 2023-001 Information on the federal program: Subject: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii - Internal Controls Federal Agency: Department of Housing and Urban Development Assistance Listing Number: 14.228 Compliance Requirement: Reporting Audit Finding: Significant Deficiency Criteria: 2 CFR section 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Condition: An effective internal control system was not in place at the City in order to ensure compliance with requirements related to the grant agreement and the reporting compliance requirement. Cause: The City's management had not developed a system of internal controls to ensure compliance with the reporting requirements. Effect: The failure to establish an effective internal control system placed the City at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that for the two semi-annual reports selected for testing, the City did not perform a documented review and approval of the reporting package prepared by the City’s consultant before the submission of the report. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the City implement a documented, formal review of the semi-annual reports before they are submitted for reimbursement. Views of Responsible Officials and Planned Corrective Actions: For the views of the responsible officials, refer to the Corrective Action Plan that is part of this report.
Finding 2023-002
FINDING 2023-002 Information on the federal program: Subject: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii - Internal Controls Federal Agency: Department of Housing and Urban Development Assistance Listing Number: 14.228 Compliance Requirement: Special Tests and Provisions - Wage Rate Requirements Audit Finding: Significant Deficiency Criteria: 2 CFR section 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Condition: An effective internal control system was not in place at the City in order to ensure compliance with requirements related to the grant agreement and the reporting compliance requirement. Cause: The City's management had not developed a system of internal controls to ensure compliance with the reporting requirements. Effect: The failure to establish an effective internal control system placed the City at risk of noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirements and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the programs. Questioned Costs: There were no questioned costs identified. Context: We noted that for the payroll periods sampled for wage-rate testing, the City did not perform a periodic, documented review and approval of the performance and results of wage rate testing performed by the City’s consultant. Identification as a repeat finding, if applicable: No. Recommendation: We recommended that the City implement a documented, formal review of the wage-rate testing done by the contracted consulting company. Views of Responsible Officials and Planned Corrective Actions: For the views of the responsible officials, refer to the Corrective Action Plan that is part of this report.