Audit 353554

FY End
2024-12-31
Total Expended
$940,473
Findings
2
Programs
1
Organization: Village of Richfield (WI)
Year: 2024 Accepted: 2025-04-14
Auditor: Kerberrose Sc

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
554953 2024-005 Material Weakness - I
1131395 2024-005 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $940,473 Yes 1

Contacts

Name Title Type
S8UPFRUNMFJ8 Jim Healy Auditee
2626282260 David Minch, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with expenditures reported in the Village’s 2024 fund financial statements. Accounts receivable at year-end consists of federal and state program expenditures scheduled for reimbursement to the Village in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded Village expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. 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: n/a The accompanying schedules of expenditures of federal and state awards for the Village 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) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration. The schedules of expenditures of federal and state awards include all federal and state awards of the Village. Because the schedules present only a selected portion of the operations of the Village, they are not intended to and do not present the financial position, changes in net position, or cash flows of the Village.
Title: Significant Accounting Policies Accounting Policies: Expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with expenditures reported in the Village’s 2024 fund financial statements. Accounts receivable at year-end consists of federal and state program expenditures scheduled for reimbursement to the Village in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded Village expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. 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: n/a Expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with expenditures reported in the Village’s 2024 fund financial statements. Accounts receivable at year-end consists of federal and state program expenditures scheduled for reimbursement to the Village in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded Village expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. 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 Village has not elected to charge a de minimis indirect cost rate of 10% of modified total costs.
Title: Oversight Agencies Accounting Policies: Expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with expenditures reported in the Village’s 2024 fund financial statements. Accounts receivable at year-end consists of federal and state program expenditures scheduled for reimbursement to the Village in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded Village expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. 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: n/a The Village’s federal oversight agency is the Department of Treasury.

Finding Details

2024-005 Coronavirus State and Local Fiscal Recovery Funds – Procurement, Suspended, Debarred Federal Agency: U.S Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Direct Program Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Condition: The Village has not implemented formal controls related to ensuring contractor vendors are not on the Federal suspended and debarred listing. Criteria: Having staff with expertise in federal award requirements review and verify eligibility of contractors ability to work on Federal contracts is an internal control intended to prevent, detect and correct potential noncompliance with Federal awards. Cause: The additional costs associated with hiring staff sufficiently experienced to prepare the Village’s single audit report, including the additional training time, outweigh the derived benefits. Effect: The procurement, suspended and debarred requirements applicable to the grant were not met. Recommendation: We recommend management and the Village Board establish procedures to verify that all vendors contracted for federally funding project are not on the suspended and debarred listing. Management’s Response: The Village is aware of the requirements and will attempt to verify all information in the future Responsible Official: James Healy – Administrator Anticipated Completion Date: The Village intends to establish a policy to work towards resolving this finding in the future.
2024-005 Coronavirus State and Local Fiscal Recovery Funds – Procurement, Suspended, Debarred Federal Agency: U.S Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Direct Program Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Condition: The Village has not implemented formal controls related to ensuring contractor vendors are not on the Federal suspended and debarred listing. Criteria: Having staff with expertise in federal award requirements review and verify eligibility of contractors ability to work on Federal contracts is an internal control intended to prevent, detect and correct potential noncompliance with Federal awards. Cause: The additional costs associated with hiring staff sufficiently experienced to prepare the Village’s single audit report, including the additional training time, outweigh the derived benefits. Effect: The procurement, suspended and debarred requirements applicable to the grant were not met. Recommendation: We recommend management and the Village Board establish procedures to verify that all vendors contracted for federally funding project are not on the suspended and debarred listing. Management’s Response: The Village is aware of the requirements and will attempt to verify all information in the future Responsible Official: James Healy – Administrator Anticipated Completion Date: The Village intends to establish a policy to work towards resolving this finding in the future.