Audit 359855

FY End
2024-12-31
Total Expended
$6.69M
Findings
4
Programs
7
Organization: City of Wentzville, Missouri (MO)
Year: 2024 Accepted: 2025-06-25
Auditor: Uhy LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
566992 2024-001 Material Weakness - L
566993 2024-002 Material Weakness - L
1143434 2024-001 Material Weakness - L
1143435 2024-002 Material Weakness - L

Programs

Contacts

Name Title Type
NM8FMMC4M7M9 Jeff Lenk Auditee
6366275101 Michele Graham Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The City of Wentzville, Missouri has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. City does not expense indirect costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City of Wentzville, Missouri under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with the requirement 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 of Wentzville, Missouri, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City of Wentzville, Missouri.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The City of Wentzville, Missouri has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. City does not expense indirect costs. 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 reimbursements.
Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The City of Wentzville, Missouri has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. City does not expense indirect costs. The City of Wentzveille, Missouri has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 4 – SUB-RECIPIENTS Accounting Policies: 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The City of Wentzville, Missouri has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. City does not expense indirect costs. There were no awards passed through to sub-recipients.

Finding Details

Reporting NONCOMPLIANCE Condition: Controls in place did not provide for the accuracy of the Project and Expenditure (P&E) reports submitted annually. Annual reports are not being prepared using the defined reporting period, in addition to other errors in the information reported. As a result, expenditure amounts reported were not accurate per Department’s Annual Project and Expenditure Report Timeline. Criteria: Effective controls over grants ensures allowable grant expenses are accurately captured and documented to support reporting requirements. Internal worksheets and other documents prepared for annual reporting should be reviewed for accuracy, prior to preparation and submission. Cause: The City lacked adequate procedures over the preparation and review of the P&E reports. Effect: The City prepared and submitted the annual P&E reports for 2025 and 2024 for the calendar year ending December 31, 2024 and 2023, versus the required 12 months ending March 31st. This resulted in inaccurate totals for the reporting period. For the 12 months ended March 31, 2024, the P&E reports current expenditures were under-reported by $47,388 and should have been $793,388 for the period April 1, 2023 to March 31, 2024. For the 12 months ended March 31, 2025. The P&E report’s current expenditures were under-reported by $933,692 and should have been $6,725,932 for the period April 1, 2024 to March 31, 2025. Other identified errors included not accurately reporting the City’s total federal awards expended for the most recent fiscal year on both the 2025 and 2024 P&E reports. Project status and description was not updated for current period activity. Recommendation: Management should continue to evaluate procedures for preparing and reviewing grant reports prior to submission to Department of Treasury. Procedures should include verifying grant period reporting requirements, reconciling report information to general ledger activity, and additional oversight and monitoring over submission of reports. Grantee’s Response: Management concurs. The City will continue to evaluate their controls with respect to current federal awards and requirements to ensure accurate information captured and reported.
Reporting MATERIAL WEAKNESS Condition: Controls in place did not provide for the accuracy of the Project and Expenditure (P&E) reports submitted annually. Annual reports are not being prepared using the defined reporting period, in addition to other errors in the information reported. As a result, expenditure amounts reported were not accurate per Department’s Annual Project and Expenditure Report Timeline. Criteria: Effective controls over grants ensures allowable grant expenses are accurately captured and documented to support reporting requirements. Internal worksheets and other documents prepared for annual reporting should be reviewed for accuracy, prior to preparation and submission. Cause: The City lacked adequate procedures over the preparation and review of the P&E reports. Effect: The City prepared and submitted the annual P&E reports for 2025 and 2024 for the calendar year ending December 31, 2024 and 2023, versus the required 12 months ending March 31st. This resulted in inaccurate totals for the reporting period. For the 12 months ended March 31, 2024, the P&E reports current expenditures were under-reported by $47,388 and should have been $793,388 for the period April 1, 2023 to March 31, 2024. For the 12 months ended March 31, 2025. The P&E report’s current expenditures were under-reported by $933,692 and should have been $6,725,932 for the period April 1, 2024 to March 31, 2025. Other identified errors included not accurately reporting the City’s total federal awards expended for the most recent fiscal year on both the 2025 and 2024 P&E reports. Project status and description was not updated for current period activity. Recommendation: Management should continue to evaluate procedures for preparing and reviewing grant reports prior to submission to Department of Treasury. Procedures should include verifying grant period reporting requirements, reconciling report information to general ledger activity, and additional oversight and monitoring over submission of reports. Grantee’s Response: Management concurs. The City will continue to evaluate their controls with respect to current federal awards and requirements to ensure accurate information captured and reported.
Reporting NONCOMPLIANCE Condition: Controls in place did not provide for the accuracy of the Project and Expenditure (P&E) reports submitted annually. Annual reports are not being prepared using the defined reporting period, in addition to other errors in the information reported. As a result, expenditure amounts reported were not accurate per Department’s Annual Project and Expenditure Report Timeline. Criteria: Effective controls over grants ensures allowable grant expenses are accurately captured and documented to support reporting requirements. Internal worksheets and other documents prepared for annual reporting should be reviewed for accuracy, prior to preparation and submission. Cause: The City lacked adequate procedures over the preparation and review of the P&E reports. Effect: The City prepared and submitted the annual P&E reports for 2025 and 2024 for the calendar year ending December 31, 2024 and 2023, versus the required 12 months ending March 31st. This resulted in inaccurate totals for the reporting period. For the 12 months ended March 31, 2024, the P&E reports current expenditures were under-reported by $47,388 and should have been $793,388 for the period April 1, 2023 to March 31, 2024. For the 12 months ended March 31, 2025. The P&E report’s current expenditures were under-reported by $933,692 and should have been $6,725,932 for the period April 1, 2024 to March 31, 2025. Other identified errors included not accurately reporting the City’s total federal awards expended for the most recent fiscal year on both the 2025 and 2024 P&E reports. Project status and description was not updated for current period activity. Recommendation: Management should continue to evaluate procedures for preparing and reviewing grant reports prior to submission to Department of Treasury. Procedures should include verifying grant period reporting requirements, reconciling report information to general ledger activity, and additional oversight and monitoring over submission of reports. Grantee’s Response: Management concurs. The City will continue to evaluate their controls with respect to current federal awards and requirements to ensure accurate information captured and reported.
Reporting MATERIAL WEAKNESS Condition: Controls in place did not provide for the accuracy of the Project and Expenditure (P&E) reports submitted annually. Annual reports are not being prepared using the defined reporting period, in addition to other errors in the information reported. As a result, expenditure amounts reported were not accurate per Department’s Annual Project and Expenditure Report Timeline. Criteria: Effective controls over grants ensures allowable grant expenses are accurately captured and documented to support reporting requirements. Internal worksheets and other documents prepared for annual reporting should be reviewed for accuracy, prior to preparation and submission. Cause: The City lacked adequate procedures over the preparation and review of the P&E reports. Effect: The City prepared and submitted the annual P&E reports for 2025 and 2024 for the calendar year ending December 31, 2024 and 2023, versus the required 12 months ending March 31st. This resulted in inaccurate totals for the reporting period. For the 12 months ended March 31, 2024, the P&E reports current expenditures were under-reported by $47,388 and should have been $793,388 for the period April 1, 2023 to March 31, 2024. For the 12 months ended March 31, 2025. The P&E report’s current expenditures were under-reported by $933,692 and should have been $6,725,932 for the period April 1, 2024 to March 31, 2025. Other identified errors included not accurately reporting the City’s total federal awards expended for the most recent fiscal year on both the 2025 and 2024 P&E reports. Project status and description was not updated for current period activity. Recommendation: Management should continue to evaluate procedures for preparing and reviewing grant reports prior to submission to Department of Treasury. Procedures should include verifying grant period reporting requirements, reconciling report information to general ledger activity, and additional oversight and monitoring over submission of reports. Grantee’s Response: Management concurs. The City will continue to evaluate their controls with respect to current federal awards and requirements to ensure accurate information captured and reported.