FAC Explorer

Audit 341444

FY End
2023-12-31
Total Expended
$810,976
Findings
2
Programs
1
Organization: City of Clinton (MN)
Year: 2023 Accepted: 2025-02-06
Auditor: Bauman Associates LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522214 2023-005 Material Weakness Yes L
1098656 2023-005 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $810,976 Yes 1

Contacts

Name Title Type
J92DB7S1H7K4 Kristi Lillehaug Auditee
3203255580 Joe Harrison Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of federal award programs expended by the City of Clinton. The City's reporting entity is defined in Note 1 to the basic financial statements.The expenditures on this schedule are on the basis of accounting used by the individual funds of the City. Governmental funds use the regulatory basis of accounting as prescribed by the Minnesota Office of the State Auditor. 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. The City has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: This City has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance The Schedule of Expenditures of Federal Awards presents the activity of federal award programs expended by the City of Clinton. The City's reporting entity is defined in Note 1 to the basic financial statements.
Title: Note 2 Accounting Policies: The Schedule of Expenditures of Federal Awards presents the activity of federal award programs expended by the City of Clinton. The City's reporting entity is defined in Note 1 to the basic financial statements.The expenditures on this schedule are on the basis of accounting used by the individual funds of the City. Governmental funds use the regulatory basis of accounting as prescribed by the Minnesota Office of the State Auditor. 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. The City has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: This City has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance The expenditures on this schedule are on the basis of accounting used by the individual funds of the City. Governmental funds use the regulatory basis of accounting as prescribed by the Minnesota Office of the State Auditor. 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. The City has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-005
2023-005 Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Numbers and Year: CPAP0000001243051 - 2023, CPAP0000001243052 - 2023 Award Period: January 1, 2023 to December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Reporting Procedures Criteria or Specific Requirement: The grant agreement specifies reporting requirements. Condition: The annual budget and projected cash flow statements required by the grant agreement were not completed timely. The City does not have procedures in place to ensure required reports under the Transparency Act are prepared and submitted. Questioned Costs: None. Context: The City does not have procedures to ensure the reports required are being completed timely. Cause: The City does not have experience with the requirements of the federal grant. Effect: Noncompliance with reporting requirements. Repeat Finding: Yes - 2022-006. Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. View of Responsible Official: There is no disagreement with the finding. We will work with our USDA contacts and engineer to better understand the required reporting and ensure these budget and other reports are properly and timely filed in 2025.
Finding 2023-005
2023-005 Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Numbers and Year: CPAP0000001243051 - 2023, CPAP0000001243052 - 2023 Award Period: January 1, 2023 to December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Reporting Procedures Criteria or Specific Requirement: The grant agreement specifies reporting requirements. Condition: The annual budget and projected cash flow statements required by the grant agreement were not completed timely. The City does not have procedures in place to ensure required reports under the Transparency Act are prepared and submitted. Questioned Costs: None. Context: The City does not have procedures to ensure the reports required are being completed timely. Cause: The City does not have experience with the requirements of the federal grant. Effect: Noncompliance with reporting requirements. Repeat Finding: Yes - 2022-006. Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. View of Responsible Official: There is no disagreement with the finding. We will work with our USDA contacts and engineer to better understand the required reporting and ensure these budget and other reports are properly and timely filed in 2025.