FAC Explorer

Audit 356520

FY End
2024-12-31
Total Expended
$2.29M
Findings
2
Programs
2
Organization: Spencer Municipal Utilities (IA)
Year: 2024 Accepted: 2025-05-19
Auditor: Tp Anderson & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560620 2024-001 Significant Deficiency - N
1137062 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.99M Yes 1
10.854 Rural Economic Development Loans and Grants $300,000 - 0

Contacts

Name Title Type
Q9J5XTMM9CT3 Travis Edwards Auditee
7125805862 Tim McCartan Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in 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. De Minimis Rate Used: N Rate Explanation: The Utility has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Spencer Municipal Utilities 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 Utility, it is not intended to and does not present the financial position, changes in financial position or cash flows of the Utility.
Title: Sub-recipients Accounting Policies: Expenditures reported in 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. De Minimis Rate Used: N Rate Explanation: The Utility has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Spencer Municipal Utility did not pass through any federal funds to sub-recipients for the year ended December 31, 2024.

Finding Details

Finding 2024-001
Procurement Suspension & Debarment Criteria – Title 2, U.S. Code of Federal Regulations Part 180.300 When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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 – The Utility’s management did not verify that the vendor was not suspended or disbarred. Cause –The Utility’s management were not aware that they needed to verify that the entity was not suspended or debarred. Effect – The Utility did not have a process to indicate that the vendor was not suspended or disbarred from doing business with federal funds. The Utility is not in compliance with Federal regulations pertaining to procurement suspension & debarment as required by the Uniform Guidance. Recommendation – The Utility should verify that each vendor or contracts paid with federal awards, are not suspended by checking the System for Awards Management (SAM) Exclusion available at SAM.gov. Corrective Action – The Utility was unable to check to make sure the contractor was not disbarred from federal grants. The Utility is working through a process to ensure all contractors are not on the disbarred list. The Utility will check SAMS numbers and do more work on the front end for each contractor. Conclusion – Response accepted.
Finding 2024-001
Procurement Suspension & Debarment Criteria – Title 2, U.S. Code of Federal Regulations Part 180.300 When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal 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 – The Utility’s management did not verify that the vendor was not suspended or disbarred. Cause –The Utility’s management were not aware that they needed to verify that the entity was not suspended or debarred. Effect – The Utility did not have a process to indicate that the vendor was not suspended or disbarred from doing business with federal funds. The Utility is not in compliance with Federal regulations pertaining to procurement suspension & debarment as required by the Uniform Guidance. Recommendation – The Utility should verify that each vendor or contracts paid with federal awards, are not suspended by checking the System for Awards Management (SAM) Exclusion available at SAM.gov. Corrective Action – The Utility was unable to check to make sure the contractor was not disbarred from federal grants. The Utility is working through a process to ensure all contractors are not on the disbarred list. The Utility will check SAMS numbers and do more work on the front end for each contractor. Conclusion – Response accepted.