FAC Explorer

Audit 322710

FY End
2023-12-31
Total Expended
$3.98M
Findings
2
Programs
7
Organization: City of Mishawaka (IN)
Year: 2023 Accepted: 2024-09-30
Auditor: Katz Sapper & Miller LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499849 2023-002 Significant Deficiency Yes L
1076291 2023-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.27M Yes 1
14.218 Community Development Block Grants/entitlement Grants $452,201 - 0
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $131,000 - 0
20.600 State and Community Highway Safety $87,480 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $26,579 - 0
20.616 National Priority Safety Programs $6,118 - 0
16.607 Bulletproof Vest Partnership Program $5,653 - 0

Contacts

Name Title Type
VPPGNWW6S2M7 Rebecca Maguire Auditee
5742581622 Justin Hayes Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Mishawaka, Indiana (City). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administration 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 financial position, changes in net position/fund balance, or cash flows of the City. In addition, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or federal award guidance, when such cost principles are not applicable to the specific federal award. Under the cost principles contained in the Uniform Guidance and federal award guidance, certain types of expenditures are not allowed or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expended when the reimbursement is received. Amount Provided to Subrecipients represents the actual expenditures incurred by subrecipients. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Mishawaka, Indiana (City). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administration 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 financial position, changes in net position/fund balance, or cash flows of the City. In addition, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or federal award guidance, when such cost principles are not applicable to the specific federal award. Under the cost principles contained in the Uniform Guidance and federal award guidance, certain types of expenditures are not allowed or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expended when the reimbursement is received. Amount Provided to Subrecipients represents the actual expenditures incurred by subrecipients.
Title: NOTE 2 - INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Mishawaka, Indiana (City). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administration 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 financial position, changes in net position/fund balance, or cash flows of the City. In addition, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or federal award guidance, when such cost principles are not applicable to the specific federal award. Under the cost principles contained in the Uniform Guidance and federal award guidance, certain types of expenditures are not allowed or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expended when the reimbursement is received. Amount Provided to Subrecipients represents the actual expenditures incurred by subrecipients. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Subject: 2023-002 Coronavirus State and Local Fiscal Recovery Funds – Reporting Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Audit Finding: Significant Deficiency and Noncompliance Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Agency must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award 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 and Context: We noted the City submitted a report required under the Coronavirus State and Local Fiscal Recovery Funds which did not have adequate review of the report for accuracy of the information or inclusion of the appropriate key line items. This finding is a repeat finding of 2021-003 and 2022-002. Cause and Effect: We noted lack of internal controls surrounding the reporting process resulted in key line items to be misstated and the errors were identified subsequent to the initial submission. There were no questioned costs related to this issue. Recommendation: We recommend the City implement procedures to ensure reports are being reviewed by an individual or third-party familiar with the program prior to submission. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the recommendation and plans to implement the recommendation during 2024.
Finding 2023-002
Subject: 2023-002 Coronavirus State and Local Fiscal Recovery Funds – Reporting Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Audit Finding: Significant Deficiency and Noncompliance Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Agency must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award 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 and Context: We noted the City submitted a report required under the Coronavirus State and Local Fiscal Recovery Funds which did not have adequate review of the report for accuracy of the information or inclusion of the appropriate key line items. This finding is a repeat finding of 2021-003 and 2022-002. Cause and Effect: We noted lack of internal controls surrounding the reporting process resulted in key line items to be misstated and the errors were identified subsequent to the initial submission. There were no questioned costs related to this issue. Recommendation: We recommend the City implement procedures to ensure reports are being reviewed by an individual or third-party familiar with the program prior to submission. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the recommendation and plans to implement the recommendation during 2024.