Audit 322162

FY End

2023-12-31

Total Expended

$2.03M

Findings

4

Programs

6

Organization: City of Hartford (WI)

Year: 2023 Accepted: 2024-09-30

Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
499323	2023-002	Significant Deficiency	-	I
499324	2023-003	Significant Deficiency	-	L
1075765	2023-002	Significant Deficiency	-	I
1075766	2023-003	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
21.027	Coronavirus State and Local Fiscal Recovery Funds	$893,344	Yes	2
81.042	Weatherization Assistance for Low-Income Persons	$524,315	Yes	0
93.568	Low-Income Home Energy Assistance	$248,759	Yes	0
20.507	Federal Transit Formula Grants	$89,119	-	0
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$86,700	-	0
90.404	Hava Election Security Grants	$1,548	-	0

Contacts

Name	Title	Type
QEUNZBQMQ2Q4	Jeralyn Multhauf	Auditee
2626738203	Wendi Unger	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedules 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. Program income is reported as revenue in the year that it is received. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate of the Uniform Guidance. The accompanying schedules of expenditures of federal and state awards, the schedule of low-income weatherization programs - January 1, 2023 to December 31, 2023 and the schedule of emergency furnace activity (the Schedules) of the City of Hartford (the City) includes the federal and state grant activity under programs of the federal and state government for the year ended December 31, 2023. The information in these 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) and the State Single Audit Guidelines. Because the Schedules present only a selected portion of the operations of the City, they are not intended to and do not present the financial position, changes in net position or cash flows of the City.

Finding Details

Finding 2023-002

Finding 2023-002: Significant Deficiency - Procurement and Suspension and Debarment Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass Through Entity: N/A Criteria: The City should have procedures for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Condition/Context: During our testing of this program, we noted that the City does not have a control or process to review and document that vendors are not suspended or debarred. Cause: The City’s purchasing policy does not address suspension or debarment. Questioned Costs: Unknown Effect: The City could transact with vendors who are suspended or debarred. Recommendation: We recommend that the City update its purchase policy to cover review of vendors for suspension and debarment prior to contracting with them. City Response and Corrective Action Plan: The City immediately took corrective action and updated its processes to ensure new vendors are reviewed for suspension and debarment. The updated process was effective as of May 2024. All current vendors have also since been reviewed.

Finding 2023-003

Finding No. 2023-003 Significant Deficiency - Reporting Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass Through Entity: N/A Criteria: The City is required to submit an annual Project and Expenditure Report which lists project current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures. Condition/Context: The Project and Expenditure Report submitted by the City for fiscal year 2023 expenditures did not report the current year expenditures on the projects matching the amount expended during fiscal year 2023. The same project expenditures were reported as current year expenditures on both the fiscal year 2022 and fiscal year 2023 report. Cumulative expenditures did not total the amounts reported as current year expenditures during the prior year and current year. Cause: The City was unaware of all the specific requirements. Questioned Costs: Unknown Effect: The Project and Expenditure Report does not properly report the current period expenditures on the City's projects which Coronavirus State and Local Fiscal Recovery awards were used to fund. Recommendation: We recommend that the City perform an additional review of reporting requirements for the award. City Response and Corrective Action Plan: We reviewed how we entered the information regarding both CSLFR expenditures for Centennial Park and S. Main Street. We identified that it should have shown: 2023 Report – Nothing for Centennial Park as a part of a total budget of $400,000 2024 Report - $400,000 for Centennial Park as a part of a total budget of $1,812,697. 2023 Report – Nothing for South Main 2024 Report - $585,884 for South Main as a part of a total budget of $$860,665 If it is deemed that an amended report needs to be submitted, we will do that.

Finding 2023-002

Finding 2023-002: Significant Deficiency - Procurement and Suspension and Debarment Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass Through Entity: N/A Criteria: The City should have procedures for verifying that an entity with which it plans to enter into a covered transaction is not suspended, debarred or otherwise excluded. Condition/Context: During our testing of this program, we noted that the City does not have a control or process to review and document that vendors are not suspended or debarred. Cause: The City’s purchasing policy does not address suspension or debarment. Questioned Costs: Unknown Effect: The City could transact with vendors who are suspended or debarred. Recommendation: We recommend that the City update its purchase policy to cover review of vendors for suspension and debarment prior to contracting with them. City Response and Corrective Action Plan: The City immediately took corrective action and updated its processes to ensure new vendors are reviewed for suspension and debarment. The updated process was effective as of May 2024. All current vendors have also since been reviewed.

Finding 2023-003

Finding No. 2023-003 Significant Deficiency - Reporting Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass Through Entity: N/A Criteria: The City is required to submit an annual Project and Expenditure Report which lists project current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures. Condition/Context: The Project and Expenditure Report submitted by the City for fiscal year 2023 expenditures did not report the current year expenditures on the projects matching the amount expended during fiscal year 2023. The same project expenditures were reported as current year expenditures on both the fiscal year 2022 and fiscal year 2023 report. Cumulative expenditures did not total the amounts reported as current year expenditures during the prior year and current year. Cause: The City was unaware of all the specific requirements. Questioned Costs: Unknown Effect: The Project and Expenditure Report does not properly report the current period expenditures on the City's projects which Coronavirus State and Local Fiscal Recovery awards were used to fund. Recommendation: We recommend that the City perform an additional review of reporting requirements for the award. City Response and Corrective Action Plan: We reviewed how we entered the information regarding both CSLFR expenditures for Centennial Park and S. Main Street. We identified that it should have shown: 2023 Report – Nothing for Centennial Park as a part of a total budget of $400,000 2024 Report - $400,000 for Centennial Park as a part of a total budget of $1,812,697. 2023 Report – Nothing for South Main 2024 Report - $585,884 for South Main as a part of a total budget of $$860,665 If it is deemed that an amended report needs to be submitted, we will do that.