FAC Explorer

Audit 338502

FY End
2024-06-30
Total Expended
$2.85M
Findings
2
Programs
3
Organization: City of Shenandoah (IA)
Year: 2024 Accepted: 2025-01-16
Auditor: Iowa Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519509 2024-002 Significant Deficiency - L
1095951 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $1.50M Yes 0
20.205 Highway Planning and Construction $720,677 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $626,030 Yes 1

Contacts

Name Title Type
HMQJHVL9HJ16 Karla Gray Auditee
7122461213 Lesley Geary Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies 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: N Rate Explanation: The City of Shenandoah has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: Indirect Cost Rate 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: N Rate Explanation: The City of Shenandoah has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The City of Shenandoah has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Project and Expenditure Report 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 an annual project and expenditures report. The Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds, requires the annual report be submitted to the U.S. Treasury by April 30, each year. Condition – The required report was submitted timely however there was no evidence of independent review of the report. Cause – City procedures have not been established to ensure the report is independently reviewed. Effect – The lack of established policies and procedures for independent review could result in inaccurate information in the required report. Recommendation – The City should establish policies and procedures to ensure reports are independently reviewed in accordance with the Compliance and Reporting Guidance. Independent review of the annual report should be documented by the signature or initials of the reviewer and the date of the review. Response and Corrective Action Planned – A policy and procedure will be established to ensure the City documents independent review on future reports. Conclusion – Response accepted.
Finding 2024-002
Project and Expenditure Report 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 an annual project and expenditures report. The Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds, requires the annual report be submitted to the U.S. Treasury by April 30, each year. Condition – The required report was submitted timely however there was no evidence of independent review of the report. Cause – City procedures have not been established to ensure the report is independently reviewed. Effect – The lack of established policies and procedures for independent review could result in inaccurate information in the required report. Recommendation – The City should establish policies and procedures to ensure reports are independently reviewed in accordance with the Compliance and Reporting Guidance. Independent review of the annual report should be documented by the signature or initials of the reviewer and the date of the review. Response and Corrective Action Planned – A policy and procedure will be established to ensure the City documents independent review on future reports. Conclusion – Response accepted.