Audit 321862

FY End
2023-12-31
Total Expended
$3.62M
Findings
2
Programs
4
Organization: Village of Belleville (WI)
Year: 2023 Accepted: 2024-09-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
499075 2023-003 Significant Deficiency - N
1075517 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $3.58M Yes 1
20.600 State and Community Highway Safety $15,202 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $6,010 - 0
90.404 2018 Hava Election Security Grants $247 - 0

Contacts

Name Title Type
JQS7XD15EW14 Ian Haas Auditee
6084243341 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. Negative amounts shown on the Schedule represents 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. De Minimis Rate Used: N Rate Explanation: The Village of Belleville has not elected to use the 10 percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) include the federal award activity of the Village of Belleville, Wisconsin under programs of the federal government for the year ended December 31, 2023. The information in the Schedules 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 Village of Belleville, it is not intended to and does not present the financial position, changes in net position or cash flows of the Village of Belleville.
Title: Loan and Loan Guarantee Programs 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. Negative amounts shown on the Schedule represents 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. De Minimis Rate Used: N Rate Explanation: The Village of Belleville has not elected to use the 10 percent de minimis indirect cost rate. The Community Facilities Loan is administered by the Village of Belleville and outstanding balances owed relating to the program are included in the Village of Belleville's basic financial statements. The balance of the loan outstanding at December 31, 2023 consists of: Assistance Listing Number Program Name Outstanding Balance at December 31, 2023 10.766 Community Facilities Loan and Grants $3,575,177
Title: Pass-Through Entities 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. Negative amounts shown on the Schedule represents 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. De Minimis Rate Used: N Rate Explanation: The Village of Belleville has not elected to use the 10 percent de minimis indirect cost rate. The Village of Belleville received federal awards from the following pass-through agencies: DOJ Wisconsin Department of Justice DOT Wisconsin Department of Transportation City of Brodhead City of Brodhead, Wisconsin WEC Wisconsin Election Commission

Finding Details

Finding 2023-003 Program Assistance Listing Number and Title: 10.766 Community Facilities Loans and Grants Federal Agency: U.S. Department of Agriculture (USDA) Pass-Through Agency: Not applicable Award Number/Year: Not applicable / 2019, 2022 Criteria: According to the debt covenants of the USDA loan, the Village is required to fund its Reserve Account in the amount of $13,603, annually by March 1, beginning on March 1, 2023, until the Reserve Account is fully funded. Condition: The annual deposit to the Reserve Account was tested and found to have been made on March 14, 2023, which is after the required deposit date. This (1 of 1) sample was not statistically valid. Cause: Due to staffing limitations, controls to ensure a timely deposit to the Reserve Account were not in place. Effects: Without proper controls in place, the Village may not be in compliance with required debt covenants. Recommendation: We recommend enhancing internal controls to ensure that annual deposits to the Reserve Account are made timely and in accordance with the debt covenants in future periods. Management Response: The Village staff was new and not aware of the deadline. The transfer was made as soon as possible after the error was discovered and a shared calendar event has now been added to ensure this entry is made in a timely manner moving forward.
Finding 2023-003 Program Assistance Listing Number and Title: 10.766 Community Facilities Loans and Grants Federal Agency: U.S. Department of Agriculture (USDA) Pass-Through Agency: Not applicable Award Number/Year: Not applicable / 2019, 2022 Criteria: According to the debt covenants of the USDA loan, the Village is required to fund its Reserve Account in the amount of $13,603, annually by March 1, beginning on March 1, 2023, until the Reserve Account is fully funded. Condition: The annual deposit to the Reserve Account was tested and found to have been made on March 14, 2023, which is after the required deposit date. This (1 of 1) sample was not statistically valid. Cause: Due to staffing limitations, controls to ensure a timely deposit to the Reserve Account were not in place. Effects: Without proper controls in place, the Village may not be in compliance with required debt covenants. Recommendation: We recommend enhancing internal controls to ensure that annual deposits to the Reserve Account are made timely and in accordance with the debt covenants in future periods. Management Response: The Village staff was new and not aware of the deadline. The transfer was made as soon as possible after the error was discovered and a shared calendar event has now been added to ensure this entry is made in a timely manner moving forward.