FAC Explorer

Audit 322387

FY End
2023-12-31
Total Expended
$10.40M
Findings
2
Programs
8
Organization: City of Worthington (MN)
Year: 2023 Accepted: 2024-09-30
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499523 2023-001 Significant Deficiency - L
1075965 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $5.52M - 0
20.205 Highway Planning and Construction $383,451 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $323,785 Yes 1
20.106 Airport Improvement Program $242,647 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $51,001 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $19,750 - 0
20.600 State and Community Highway Safety $15,777 - 0
20.616 National Priority Safety Programs $7,492 - 0

Contacts

Name Title Type
Y428V5122GD5 Debra Olsen Auditee
5076665014 Thomas Olinger Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023 the City did not elect to use the 10 percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Worthington, Minnesota (the City) under programs of the federal government for the year ended December 31, 2023. The City's reporting entity is defined in Note 1A to the City's financial statements. 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 operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.
Title: Pass-Through Entity Identifying Numbers Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023 the City did not elect to use the 10 percent de minimis indirect cost rate. Pass-through entity identifying numbers are presented where available.
Title: Subrecipients Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2023 the City did not elect to use the 10 percent de minimis indirect cost rate. There were no expenditures in the current year provided to subrecipients.

Finding Details

Finding 2023-001
2023-001 U.S. Department of Treasury Passed through State of Minnesota Coronavirus State and Local Fiscal Recovery Funds Reporting Deficiency in Internal Control over Compliance Condition: During the course of our engagement, we noted that the City did not perform control procedures over the reporting process. The Finance Director prepared and submitted required reports. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over reporting. Cause: The City did not have processes in place to ensure reports were reviewed by someone other than the preparer. Effect: The reports submitted had an increased risk of not being accurate. Recommendation: We recommend the City establish a specific procedure to have someone review federally required reports other than the preparer. Management Response: The City will establish procedures to ensure future reports are reviewed.
Finding 2023-001
2023-001 U.S. Department of Treasury Passed through State of Minnesota Coronavirus State and Local Fiscal Recovery Funds Reporting Deficiency in Internal Control over Compliance Condition: During the course of our engagement, we noted that the City did not perform control procedures over the reporting process. The Finance Director prepared and submitted required reports. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over reporting. Cause: The City did not have processes in place to ensure reports were reviewed by someone other than the preparer. Effect: The reports submitted had an increased risk of not being accurate. Recommendation: We recommend the City establish a specific procedure to have someone review federally required reports other than the preparer. Management Response: The City will establish procedures to ensure future reports are reviewed.