FAC Explorer

Audit 352792

FY End
2024-12-31
Total Expended
$1.43M
Findings
2
Programs
1
Organization: Town of Burnett Sanitary District (WI)
Year: 2024 Accepted: 2025-04-06
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554200 2024-003 Material Weakness - I
1130642 2024-003 Material Weakness - I

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.43M Yes 1

Contacts

Name Title Type
V42WT9JTGQA5 Britt Feely Auditee
2622287023 Bryan Grunewald Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures in the Schedule are reported on the accrual basis of accounting and are generally in agreement with revenues and expenses reported in the District’s 2024 financial statements. Such expenses are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenses are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal program expenses scheduled for reimbursement to the District in the succeeding year. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. The accompanying Schedules of Expenditures of Federal Awards (the Schedule) for the District are 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). The Schedules include all federal awards of the District. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Oversight Agencies Accounting Policies: Expenditures in the Schedule are reported on the accrual basis of accounting and are generally in agreement with revenues and expenses reported in the District’s 2024 financial statements. Such expenses are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenses are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal program expenses scheduled for reimbursement to the District in the succeeding year. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. The federal agency for the District is as follows: • Federal – Department of Agriculture
Title: Pass-Through Entities Accounting Policies: Expenditures in the Schedule are reported on the accrual basis of accounting and are generally in agreement with revenues and expenses reported in the District’s 2024 financial statements. Such expenses are recognized following the cost principles contained in the Uniform Guidance. Under these principles, certain types of expenses are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal program expenses scheduled for reimbursement to the District in the succeeding year. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. All federal funding was received as a direct program.

Finding Details

Finding 2024-003
2024-003 Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Number and Year: Pass Through Agency: N/A Pass Through Numbers: N/A Award Period: May 13, 2024 – May 13, 2027 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirements 2 CFR 200 states that nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition District does not have a formal policy regarding suspension and debarment. The District did not document verification that a vendor was not suspended or debarred prior to entering into a covered transaction. Upon communication with the audit firm, the District did subsequently verify that the one vendor tested was in fact not a suspended or debarred vendor. Questioned Costs None Context While performing compliance procedures, it was noted that the District had one vendor that required documentation of suspension and debarment. The District did not verify suspension and debarment status of this one vendor prior to entering into the covered transaction. Cause District does not have a formal policy regarding suspension and debarment. Effect The District is not in compliance with suspension and debarment requirements. Vendors may be paid with federal funds that are suspended and debarred entities which would not be in compliance with uniform guidance. Section III – Findings and Questioned Costs – Federal Programs (Continued) 2024-003 (Continued) Suspension and Debarment (Continued) Recommendation We recommend that the District review the policies required by the Uniform Guidance and consider adopting appropriate policies related to procurement and suspension and debarment to ensure compliance. View of Responsible Officials There is no disagreement with the finding.
Finding 2024-003
2024-003 Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Number and Year: Pass Through Agency: N/A Pass Through Numbers: N/A Award Period: May 13, 2024 – May 13, 2027 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirements 2 CFR 200 states that nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220). All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition District does not have a formal policy regarding suspension and debarment. The District did not document verification that a vendor was not suspended or debarred prior to entering into a covered transaction. Upon communication with the audit firm, the District did subsequently verify that the one vendor tested was in fact not a suspended or debarred vendor. Questioned Costs None Context While performing compliance procedures, it was noted that the District had one vendor that required documentation of suspension and debarment. The District did not verify suspension and debarment status of this one vendor prior to entering into the covered transaction. Cause District does not have a formal policy regarding suspension and debarment. Effect The District is not in compliance with suspension and debarment requirements. Vendors may be paid with federal funds that are suspended and debarred entities which would not be in compliance with uniform guidance. Section III – Findings and Questioned Costs – Federal Programs (Continued) 2024-003 (Continued) Suspension and Debarment (Continued) Recommendation We recommend that the District review the policies required by the Uniform Guidance and consider adopting appropriate policies related to procurement and suspension and debarment to ensure compliance. View of Responsible Officials There is no disagreement with the finding.