Audit 361517

FY End
2024-12-31
Total Expended
$15.05M
Findings
2
Programs
13
Organization: City of Beloit (WI)
Year: 2024 Accepted: 2025-07-07

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
570533 2024-003 Significant Deficiency - I
1146975 2024-003 Significant Deficiency - I

Programs

Contacts

Name Title Type
GWBPLNMWLVB6 Eric Miller Auditee
6083646676 Justin Hoagland Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedules are reported on the modified 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. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual; i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis; i.e., when the revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate The accompanying schedules of expenditures of federal and state awards (the Schedules) includes the federal and state grant activity of the City of Beloit (the City) under programs of the federal and state government for the year ended December 31, 2024. The information in these Schedules 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. Because the Schedules present 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 the City. The reporting entity for the City is based upon criteria established by the Governmental Accounting Standards Board. The City is the primary government according to GASB criteria, while the Beloit Community Development Authority (CDA) is a component unit. Federal and state awards received directly by the CDA are included in this report.
Title: Pass-Through Agencies Accounting Policies: Expenditures reported on the Schedules are reported on the modified 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. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual; i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis; i.e., when the revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate The following identifies the pass-through agency acronyms used on the schedule of expenditures of federal awards: C/ Janesville City of Janesville, Wisconsin WI DOT Wisconsin Department of Transportation WI DOJ Wisconsin Department of Justice IL DOT Illinois Department of Transportation

Finding Details

Program Assistance Listing Number/State ID Number: 21.027 COVID-19 Coronavirus State & Local Fiscal Recovery Funds, 370.TA1 Knowles-Nelson Stewardship Program, 370.658 Municipal Flood Control Federal/State Grantor: U.S. Department of Treasury, Wisconsin Department of Natural Resources Criteria: The Uniform Guidance and state statutes require that entities receiving federal or state awards verify the suspension and debarment status of vendors before procurement takes place. Condition/Context: During testing, it was noted that the City did not check for suspension and debarment for one out of the two vendors tested for the federal program and two out of the two vendors tested for the state programs. Our sample was not statistically valid. Cause: The City does not have procedures in place requiring a review of suspension and debarment for all types of vendors. Effect: If transactions occur with a suspended or debarred vendor, the funding agency may disallow the costs associated with the transaction. Questioned Costs: None noted. Recommendation: We recommend that the City implement procedures requiring the verification of suspension and debarred status for all vendors that involve the use of federal or state funds. Management's Response: The City will add the process of verifying vendors to the check list for all projects using State and Federal funds, to verify no vendor is suspended or disbarred. This will ensure that no vendor is missed during the process.
Program Assistance Listing Number/State ID Number: 21.027 COVID-19 Coronavirus State & Local Fiscal Recovery Funds, 370.TA1 Knowles-Nelson Stewardship Program, 370.658 Municipal Flood Control Federal/State Grantor: U.S. Department of Treasury, Wisconsin Department of Natural Resources Criteria: The Uniform Guidance and state statutes require that entities receiving federal or state awards verify the suspension and debarment status of vendors before procurement takes place. Condition/Context: During testing, it was noted that the City did not check for suspension and debarment for one out of the two vendors tested for the federal program and two out of the two vendors tested for the state programs. Our sample was not statistically valid. Cause: The City does not have procedures in place requiring a review of suspension and debarment for all types of vendors. Effect: If transactions occur with a suspended or debarred vendor, the funding agency may disallow the costs associated with the transaction. Questioned Costs: None noted. Recommendation: We recommend that the City implement procedures requiring the verification of suspension and debarred status for all vendors that involve the use of federal or state funds. Management's Response: The City will add the process of verifying vendors to the check list for all projects using State and Federal funds, to verify no vendor is suspended or disbarred. This will ensure that no vendor is missed during the process.