FAC Explorer

Audit 321321

FY End
2023-12-31
Total Expended
$2.82M
Findings
2
Programs
2
Organization: City of Chisholm (MN)
Year: 2023 Accepted: 2024-09-26
Auditor: Sterle & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498579 2023-001 Significant Deficiency - P
1075021 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $2.81M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $5,654 - 0

Contacts

Name Title Type
NRL1ZVFVQ3R7 Devin Ceglar Auditee
2182542700 Jeffrey Sterle Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: SEE ATTACHED De Minimis Rate Used: N Rate Explanation: SEE ATTACHED The accompanying schedule of expenditures of federal awards includes the federal award activity of the City under programs of the federal government for the year ended December 31, 2023. The information in this scheule 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 this schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, chnages in net position, or cash flows of the City.
Title: Summary of Significant Accounting Policies Accounting Policies: SEE ATTACHED De Minimis Rate Used: N Rate Explanation: SEE ATTACHED Expenditures reported on the schedule are reported on the accrual basis of accunting. 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.
Title: Indirect Cost Rate Accounting Policies: SEE ATTACHED De Minimis Rate Used: N Rate Explanation: SEE ATTACHED The City has elected not to use the 10% de minimis indirect cost rate allowe under the Uniform Guidance.
Title: COVID 19 - Coronovirus State and Local Fiscal Recovery Funds Accounting Policies: SEE ATTACHED De Minimis Rate Used: N Rate Explanation: SEE ATTACHED The City received $529,910 in funds in prior years. During the current year, the City expended $5,654 of thses funds as reflected in the accompanying Schedulle of Federal Awards Expended. The City has $512,134 of the funds remaining of which are restricted in the City's special revenue CARES fund in the accompanying financial statements.

Finding Details

Finding 2023-001
Lack of segregation of duties - significant deficiency Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. No one individual should have more than one duty related to approval, custody of assets, record keeping, and reconciliation functions. Condition: The City does not have enough staff to adequately separate duties over some financial transactions. Context: The lack of segregation of duties exits within the City as a whole over some of its accounting and reporting functions. This is a common circumstance in governments of similar size. Cause: Limited number of staff available to appropriately divide duties. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Recommendation: The City be cognizant of the situation and provide appropriate oversight as deemed necessary. Views of Responsible Officials and Corrective Actions: The City agress with the recommendations and continues to provide oversight as needed.
Finding 2023-001
Lack of segregation of duties - significant deficiency Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. No one individual should have more than one duty related to approval, custody of assets, record keeping, and reconciliation functions. Condition: The City does not have enough staff to adequately separate duties over some financial transactions. Context: The lack of segregation of duties exits within the City as a whole over some of its accounting and reporting functions. This is a common circumstance in governments of similar size. Cause: Limited number of staff available to appropriately divide duties. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Recommendation: The City be cognizant of the situation and provide appropriate oversight as deemed necessary. Views of Responsible Officials and Corrective Actions: The City agress with the recommendations and continues to provide oversight as needed.