FAC Explorer

Audit 34423

FY End
2022-12-31
Total Expended
$3.51M
Findings
2
Programs
2
Organization: City of Isle (MN)
Year: 2022 Accepted: 2023-06-27
Auditor: Schlenner Wenner & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37116 2022-005 Significant Deficiency - BI
613558 2022-005 Significant Deficiency - BI

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $3.51M Yes 1
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $638 - 0

Contacts

Name Title Type
Y751DJW574W3 Jamie Hubbell Auditee
3206763641 Molly Thompson Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Isle under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 assets, or cash flows of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Isle under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 assets, or cash flows of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City did not pass any federal funds to subrecipients during the year ended December 31, 2022.
Title: Pass-Through Identifier Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Isle under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 assets, or cash flows of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City's pass-through identifying number is unknown.

Finding Details

Finding 2022-005
Finding 2022-005 Internal Controls Over Compliance for Cash Management, Allowable Costs, and Procurement Federal Program: 10.760 Water and Waste Disposal Systems for Rural Communities Condition: The City does not have formally documented written controls to ensure compliance with the U.S. Office of Management and Budget?s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), in regards to determining allowable costs, procurement procedures, and cash management. Criteria: 2 CFR ? 200.302(b) requires the City to have written procedures related to managing cash from federal awards, including determining the allowability of costs in accordance with 2 CFR 200 Subpart E ? Cost Principles. Additionally, 2 CFR ? 318(a) and (c), requires the City to formally document procedures used for procurements made within federal programs, to demonstrate compliance with Uniform Guidance, which includes written standards of conduct that cover conflicts of interest and govern the performance of individuals engaged in procurement. Cause: The City?s policies and procedures have not been formally drafted and updated in written form. Effect: Failure to have written policies and procedures resulted in the City?s noncompliance with the requirements of the Uniform Guidance. Context: This is a general requirement that pertains to most federal grants. This was not identified via sampling procedures. Questioned Costs: None identified. Recommendation: We recommend that management adopt the referenced policies in order to comply with Uniform Guidance. Views of Responsible Officials And Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.
Finding 2022-005
Finding 2022-005 Internal Controls Over Compliance for Cash Management, Allowable Costs, and Procurement Federal Program: 10.760 Water and Waste Disposal Systems for Rural Communities Condition: The City does not have formally documented written controls to ensure compliance with the U.S. Office of Management and Budget?s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), in regards to determining allowable costs, procurement procedures, and cash management. Criteria: 2 CFR ? 200.302(b) requires the City to have written procedures related to managing cash from federal awards, including determining the allowability of costs in accordance with 2 CFR 200 Subpart E ? Cost Principles. Additionally, 2 CFR ? 318(a) and (c), requires the City to formally document procedures used for procurements made within federal programs, to demonstrate compliance with Uniform Guidance, which includes written standards of conduct that cover conflicts of interest and govern the performance of individuals engaged in procurement. Cause: The City?s policies and procedures have not been formally drafted and updated in written form. Effect: Failure to have written policies and procedures resulted in the City?s noncompliance with the requirements of the Uniform Guidance. Context: This is a general requirement that pertains to most federal grants. This was not identified via sampling procedures. Questioned Costs: None identified. Recommendation: We recommend that management adopt the referenced policies in order to comply with Uniform Guidance. Views of Responsible Officials And Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.