FAC Explorer

Audit 353561

FY End
2024-12-31
Total Expended
$3.23M
Findings
4
Programs
6
Organization: City of Fosston (MN)
Year: 2024 Accepted: 2025-04-14
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554954 2024-003 Significant Deficiency - L
554955 2024-004 Material Weakness Yes N
1131396 2024-003 Significant Deficiency - L
1131397 2024-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $3.01M Yes 2
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $56,355 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $52,728 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $43,392 - 0
20.600 State and Community Highway Safety $4,159 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $681 - 0

Contacts

Name Title Type
ENN1LSDJ1J95 Cassie Heide Auditee
2184351959 Amanda Scanson Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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 has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of City of Fosston, under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is 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). 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 position or cash flows of City of Fosston.
Title: PASS-THROUGH ENTITIES Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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 has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through entities listed above without a pass-through number use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.

Finding Details

Finding 2024-003
Federal Program Economic Adjustment Assistance Program (AL 11.307) U.S. Department of Commerce Reporting Criteria Reporting requirements require the City to submit the SF-425 report no later than 30 days following the end of the semi-annual period. Condition The City submitted one semi-annual SF-425 report two weeks after the deadline. Questioned Costs None Context The City did not file the report timely. Cause Management oversight. Effect The City was not in compliance with the reporting requirements of the grant. Repeat Finding No Recommendation The City should implement procedures to ensure all reporting deadlines are met. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2024-004
Federal Program Economic Adjustment Assistance Program (AL 11.307) U.S Department of Commerce Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition Contracts did not include Davis Bacon wage rate clauses in the contract and one payroll submitted was not properly signed. Questioned Costs None Context A sample of eight weeks during the construction period was selected for testing and all certified payrolls for these eight weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have signed payrolls for one subcontractor during the eight week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding Yes. Prior audit finding 2023-004. Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2024-003
Federal Program Economic Adjustment Assistance Program (AL 11.307) U.S. Department of Commerce Reporting Criteria Reporting requirements require the City to submit the SF-425 report no later than 30 days following the end of the semi-annual period. Condition The City submitted one semi-annual SF-425 report two weeks after the deadline. Questioned Costs None Context The City did not file the report timely. Cause Management oversight. Effect The City was not in compliance with the reporting requirements of the grant. Repeat Finding No Recommendation The City should implement procedures to ensure all reporting deadlines are met. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.
Finding 2024-004
Federal Program Economic Adjustment Assistance Program (AL 11.307) U.S Department of Commerce Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition Contracts did not include Davis Bacon wage rate clauses in the contract and one payroll submitted was not properly signed. Questioned Costs None Context A sample of eight weeks during the construction period was selected for testing and all certified payrolls for these eight weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have signed payrolls for one subcontractor during the eight week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding Yes. Prior audit finding 2023-004. Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.