FAC Explorer

Audit 333552

FY End
2024-06-30
Total Expended
$10.15M
Findings
8
Programs
10
Organization: City of Bettendorf, Iowa (IA)
Year: 2024 Accepted: 2024-12-18
Auditor: Bohnsack & Frommelt LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
515686 2024-001 Material Weakness - L
515687 2024-001 Material Weakness - L
515688 2024-002 - - L
515689 2024-002 - - L
1092128 2024-001 Material Weakness - L
1092129 2024-001 Material Weakness - L
1092130 2024-002 - - L
1092131 2024-002 - - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus Relief Fund $5.46M Yes 0
20.205 Highway Planning and Construction $1.78M - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $160,958 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $86,608 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $86,098 - 0
97.039 Hazard Mitigation Grant $49,769 Yes 2
16.922 Equitable Sharing Program $24,184 - 0
20.507 Federal Transit_formula Grants $3,600 - 0
16.607 Bulletproof Vest Partnership Program $2,792 - 0
20.600 State and Community Highway Safety $892 - 0

Contacts

Name Title Type
DV3KHH71FJD3 Jason Schadt Auditee
5633444116 Mia Frommelt Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting as applicable. 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. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and has met the eligibility criteria of the federal grant. Revenue from federal awards is recognized when the City has done everything necessary to establish its right to the revenue. In the governmental funds, revenue from federal grants is recognized when the revenue is both measurable and available. In proprietary funds, revenue from federal grants is recognized when it is earned. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of the City under programs of the federal government for the year ended June 30, 2024. 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 the 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 entity.
Title: Note 2 Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting as applicable. 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. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and has met the eligibility criteria of the federal grant. Revenue from federal awards is recognized when the City has done everything necessary to establish its right to the revenue. In the governmental funds, revenue from federal grants is recognized when the revenue is both measurable and available. In proprietary funds, revenue from federal grants is recognized when it is earned. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting as applicable. 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. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and has met the eligibility criteria of the federal grant. Revenue from federal awards is recognized when the City has done everything necessary to establish its right to the revenue. In the governmental funds, revenue from federal grants is recognized when the revenue is both measurable and available. In proprietary funds, revenue from federal grants is recognized when it is earned. Pass-through entity identifying numbers are presented where avail
Title: Note 3 Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual or accrual basis of accounting as applicable. 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. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and has met the eligibility criteria of the federal grant. Revenue from federal awards is recognized when the City has done everything necessary to establish its right to the revenue. In the governmental funds, revenue from federal grants is recognized when the revenue is both measurable and available. In proprietary funds, revenue from federal grants is recognized when it is earned. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The City has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Finding: The City has insufficient procedures over the process for identifying federal expenditures for reporting on the City’s Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Subpart F 200.510 states, “the audit must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with section 200.502.” Condition: Hazard Mitigation Grant Program expenditures of approximately $1.1 million were omitted from the Schedule of Expenditures of Federal Awards presented for the audit. Cause: Reimbursement for expenditures made under the federal grant had not yet been requested. The City prepared the Schedule of Expenditures of Federal Awards based on receipts rather than expenditures incurred. The expenditures are not coded to be specifically identified as federal. Effect: The Schedule of Expenditures of Federal Awards presented for the audit was misstated. Context: Federal expenditures of approximately $1.1 million were not included on the Schedule of Expenditures of Federal Awards presented for the audit. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City determine a process to identify federal expenditures for reporting including those not yet reimbursed by the grantor. We recommend the City submit reimbursement requests to grantors on a timely basis. Response and Corrective Action Plan: The City will review current processes and realign duties and processes to improve internal controls within the identification of federal award expenditures.
Finding 2024-001
Finding: The City has insufficient procedures over the process for identifying federal expenditures for reporting on the City’s Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Subpart F 200.510 states, “the audit must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with section 200.502.” Condition: Hazard Mitigation Grant Program expenditures of approximately $1.1 million were omitted from the Schedule of Expenditures of Federal Awards presented for the audit. Cause: Reimbursement for expenditures made under the federal grant had not yet been requested. The City prepared the Schedule of Expenditures of Federal Awards based on receipts rather than expenditures incurred. The expenditures are not coded to be specifically identified as federal. Effect: The Schedule of Expenditures of Federal Awards presented for the audit was misstated. Context: Federal expenditures of approximately $1.1 million were not included on the Schedule of Expenditures of Federal Awards presented for the audit. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City determine a process to identify federal expenditures for reporting including those not yet reimbursed by the grantor. We recommend the City submit reimbursement requests to grantors on a timely basis. Response and Corrective Action Plan: The City will review current processes and realign duties and processes to improve internal controls within the identification of federal award expenditures.
Finding 2024-002
Finding: The financial reports required for the program were not reconciled with the City’s general ledger records relating to the Hazard Mitigation Grant Program. Criteria: The Office of Management and Budget (OMB) 2024 Compliance Supplement specifically states the Hazard Mitigation Grant federal program is required to submit SF-270, Request for Advance or Reimbursement and SF-425, Federal Financial Report. Condition: The City could not reconcile general ledger detail with amounts submitted in SF- 270 and SF – 425 reports. Reimbursement requests have not been submitted for all eligible expenditures. Cause: General ledger coding does not match grant expenditure eligibility and there is no reconciliation between general ledger reporting and grant reporting. Effect: Reporting does not match City records and reimbursement requests have not been made for eligible grant expenditures. Questioned costs: $0 Context: The reports submitted during the fiscal year 2024 to the state as part of the program do not reconcile to the City’s records. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City code program direct costs separately from non program costs. We recommend the City reconcile grant eligible expenditures to general ledger reports prior to submitting for reimbursement every quarter. Response and Corrective Action Plan: The City will ensure charges to federal programs are properly documented by maintaining supporting general ledger documentation and reconcile to reimbursement reports. Reimbursement will be submitted timely.
Finding 2024-002
Finding: The financial reports required for the program were not reconciled with the City’s general ledger records relating to the Hazard Mitigation Grant Program. Criteria: The Office of Management and Budget (OMB) 2024 Compliance Supplement specifically states the Hazard Mitigation Grant federal program is required to submit SF-270, Request for Advance or Reimbursement and SF-425, Federal Financial Report. Condition: The City could not reconcile general ledger detail with amounts submitted in SF- 270 and SF – 425 reports. Reimbursement requests have not been submitted for all eligible expenditures. Cause: General ledger coding does not match grant expenditure eligibility and there is no reconciliation between general ledger reporting and grant reporting. Effect: Reporting does not match City records and reimbursement requests have not been made for eligible grant expenditures. Questioned costs: $0 Context: The reports submitted during the fiscal year 2024 to the state as part of the program do not reconcile to the City’s records. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City code program direct costs separately from non program costs. We recommend the City reconcile grant eligible expenditures to general ledger reports prior to submitting for reimbursement every quarter. Response and Corrective Action Plan: The City will ensure charges to federal programs are properly documented by maintaining supporting general ledger documentation and reconcile to reimbursement reports. Reimbursement will be submitted timely.
Finding 2024-001
Finding: The City has insufficient procedures over the process for identifying federal expenditures for reporting on the City’s Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Subpart F 200.510 states, “the audit must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with section 200.502.” Condition: Hazard Mitigation Grant Program expenditures of approximately $1.1 million were omitted from the Schedule of Expenditures of Federal Awards presented for the audit. Cause: Reimbursement for expenditures made under the federal grant had not yet been requested. The City prepared the Schedule of Expenditures of Federal Awards based on receipts rather than expenditures incurred. The expenditures are not coded to be specifically identified as federal. Effect: The Schedule of Expenditures of Federal Awards presented for the audit was misstated. Context: Federal expenditures of approximately $1.1 million were not included on the Schedule of Expenditures of Federal Awards presented for the audit. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City determine a process to identify federal expenditures for reporting including those not yet reimbursed by the grantor. We recommend the City submit reimbursement requests to grantors on a timely basis. Response and Corrective Action Plan: The City will review current processes and realign duties and processes to improve internal controls within the identification of federal award expenditures.
Finding 2024-001
Finding: The City has insufficient procedures over the process for identifying federal expenditures for reporting on the City’s Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Subpart F 200.510 states, “the audit must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with section 200.502.” Condition: Hazard Mitigation Grant Program expenditures of approximately $1.1 million were omitted from the Schedule of Expenditures of Federal Awards presented for the audit. Cause: Reimbursement for expenditures made under the federal grant had not yet been requested. The City prepared the Schedule of Expenditures of Federal Awards based on receipts rather than expenditures incurred. The expenditures are not coded to be specifically identified as federal. Effect: The Schedule of Expenditures of Federal Awards presented for the audit was misstated. Context: Federal expenditures of approximately $1.1 million were not included on the Schedule of Expenditures of Federal Awards presented for the audit. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City determine a process to identify federal expenditures for reporting including those not yet reimbursed by the grantor. We recommend the City submit reimbursement requests to grantors on a timely basis. Response and Corrective Action Plan: The City will review current processes and realign duties and processes to improve internal controls within the identification of federal award expenditures.
Finding 2024-002
Finding: The financial reports required for the program were not reconciled with the City’s general ledger records relating to the Hazard Mitigation Grant Program. Criteria: The Office of Management and Budget (OMB) 2024 Compliance Supplement specifically states the Hazard Mitigation Grant federal program is required to submit SF-270, Request for Advance or Reimbursement and SF-425, Federal Financial Report. Condition: The City could not reconcile general ledger detail with amounts submitted in SF- 270 and SF – 425 reports. Reimbursement requests have not been submitted for all eligible expenditures. Cause: General ledger coding does not match grant expenditure eligibility and there is no reconciliation between general ledger reporting and grant reporting. Effect: Reporting does not match City records and reimbursement requests have not been made for eligible grant expenditures. Questioned costs: $0 Context: The reports submitted during the fiscal year 2024 to the state as part of the program do not reconcile to the City’s records. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City code program direct costs separately from non program costs. We recommend the City reconcile grant eligible expenditures to general ledger reports prior to submitting for reimbursement every quarter. Response and Corrective Action Plan: The City will ensure charges to federal programs are properly documented by maintaining supporting general ledger documentation and reconcile to reimbursement reports. Reimbursement will be submitted timely.
Finding 2024-002
Finding: The financial reports required for the program were not reconciled with the City’s general ledger records relating to the Hazard Mitigation Grant Program. Criteria: The Office of Management and Budget (OMB) 2024 Compliance Supplement specifically states the Hazard Mitigation Grant federal program is required to submit SF-270, Request for Advance or Reimbursement and SF-425, Federal Financial Report. Condition: The City could not reconcile general ledger detail with amounts submitted in SF- 270 and SF – 425 reports. Reimbursement requests have not been submitted for all eligible expenditures. Cause: General ledger coding does not match grant expenditure eligibility and there is no reconciliation between general ledger reporting and grant reporting. Effect: Reporting does not match City records and reimbursement requests have not been made for eligible grant expenditures. Questioned costs: $0 Context: The reports submitted during the fiscal year 2024 to the state as part of the program do not reconcile to the City’s records. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend the City code program direct costs separately from non program costs. We recommend the City reconcile grant eligible expenditures to general ledger reports prior to submitting for reimbursement every quarter. Response and Corrective Action Plan: The City will ensure charges to federal programs are properly documented by maintaining supporting general ledger documentation and reconcile to reimbursement reports. Reimbursement will be submitted timely.