Audit 338448

FY End

2020-06-30

Total Expended

$873,547

Findings

2

Programs

2

Organization: City of Brandon (IA)

Year: 2020 Accepted: 2025-01-16

Auditor: Office of Auditor of State

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
519480	2020-008	Material Weakness	-	L
1095922	2020-008	Material Weakness	-	L

ALN	Program	Spent	Major	Findings
10.760	Water and Waste Disposal Systems for Rural Communities	$664,938	Yes	1
14.228	Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii	$208,609	-	0

Contacts

Name	Title	Type
TCCVMCKRBK59	Kandi Tesar	Auditee
3194742335	Suzanne Dahlstrom	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the basis of cash receipts and disbursements, which is a basis of accounting other than U.S. generally accepted accounting principles. 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. De Minimis Rate Used: Y Rate Explanation: the City of Brandon has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Brandon under programs of the federal government for the year ended June 30, 2020. 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 of Brandon, it is not intended to and does not present the financial position, changes in financial position or cash flows of the City of Brandon.

Finding Details

Finding 2020-008

Reporting Requirements Criteria – The Uniform Guidance, Part 200.303, requires the auditee establish and maintain effective internal control over the federal award which provides reasonable assurance the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms of the federal award. The City is required to submit a Statement of Budget, Income and Equity along with a Balance Sheet to the U.S. Department of Agriculture. In lieu of this, audited financial statements can be provided. Condition – The City of Brandon did not submit a Statement of Budget, Income and Equity as well as a Balance Sheet, to the U.S. Department of Agriculture. Nor did the City submit audited financial statements in lieu of this requirement. Cause – City procedures have not been established to ensure the report was submitted as required.Effect – The lack of established policies and procedures resulted in the City’s lack of timely submission of the required reports. Recommendation – The City should establish policies and procedures to ensure reports are submitted timely in accordance with reporting requirements. Response and Corrective Action Planned – City officials understand a previous clerk was supposed to have gotten this audit done right away. However, this was not done. As soon as current City officials received an email from the USDA, the process of trying to get the audit done was started. Now, finally, we are almost finished, and this will no longer be an issue. Conclusion – Response accepted.

Finding 2020-008

Reporting Requirements Criteria – The Uniform Guidance, Part 200.303, requires the auditee establish and maintain effective internal control over the federal award which provides reasonable assurance the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms of the federal award. The City is required to submit a Statement of Budget, Income and Equity along with a Balance Sheet to the U.S. Department of Agriculture. In lieu of this, audited financial statements can be provided. Condition – The City of Brandon did not submit a Statement of Budget, Income and Equity as well as a Balance Sheet, to the U.S. Department of Agriculture. Nor did the City submit audited financial statements in lieu of this requirement. Cause – City procedures have not been established to ensure the report was submitted as required.Effect – The lack of established policies and procedures resulted in the City’s lack of timely submission of the required reports. Recommendation – The City should establish policies and procedures to ensure reports are submitted timely in accordance with reporting requirements. Response and Corrective Action Planned – City officials understand a previous clerk was supposed to have gotten this audit done right away. However, this was not done. As soon as current City officials received an email from the USDA, the process of trying to get the audit done was started. Now, finally, we are almost finished, and this will no longer be an issue. Conclusion – Response accepted.