FAC Explorer

Audit 361947

FY End
2024-12-31
Total Expended
$3.65M
Findings
2
Programs
7
Organization: City of Brainerd (MN)
Year: 2024 Accepted: 2025-07-10
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571008 2024-002 Significant Deficiency - GL
1147450 2024-002 Significant Deficiency - GL

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $1.32M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.31M Yes 1
20.509 Formula Grants for Rural Areas and Tribal Transit Program $567,094 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $12,614 - 0
20.600 State and Community Highway Safety $8,477 - 0
16.607 Bulletproof Vest Partnership Program $4,941 - 0
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $1,064 - 0

Contacts

Name Title Type
HRDWXDBU3M54 Connie Hillman Auditee
2188282307 Mary Reedy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1. The Schedule of Expenditures of Federal Awards presents the activity of federal award programs expended by the City of Brainerd and its discretely presented component unit the Brainerd Lakes Regional Airport. This schedule does not include the federal expenditures of the Housing and Redevelopment Authority of Brainerd. The City's reporting entity is defined in Note 1 to the basic financial statements. 2. The expenditures on this schedule are on the modified accrual basis of accounting, which is described in Note 1 to the basic financial statements of the City. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2024-002
Federal Agency: U.S Department of Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Compliance Requirement Affected: Reporting & Earmarking Award Period: 2024 Type of Finding: Significant Deficiency Criteria or Specific Requirement: The City should have controls in place to ensure the accuracy of all reports required to be submitted. These controls should be formally documented to ensure they have been properly implemented. Condition: During reporting and earmarking testing, it was noted that the review process was not operating effectively. There was no review process completed for the reports required to be submitted. Questioned Costs: Not determinable Context: During reporting and earmarking testing, it was noted that there was no review over the Project and Expenditure Reports for both 2024 and 2025. Cause: Oversight Effect: Lack of proper documentation of controls over compliance with reporting and earmarking requirements could result in errors being reported and going undetected or not detected in a timely manner. This could ultimately result in questioned costs. Repeat Finding: No Recommendation: We recommend that the City implement procedures and controls to ensure the required reports are accurate before submitting. Viewed of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S Department of Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Compliance Requirement Affected: Reporting & Earmarking Award Period: 2024 Type of Finding: Significant Deficiency Criteria or Specific Requirement: The City should have controls in place to ensure the accuracy of all reports required to be submitted. These controls should be formally documented to ensure they have been properly implemented. Condition: During reporting and earmarking testing, it was noted that the review process was not operating effectively. There was no review process completed for the reports required to be submitted. Questioned Costs: Not determinable Context: During reporting and earmarking testing, it was noted that there was no review over the Project and Expenditure Reports for both 2024 and 2025. Cause: Oversight Effect: Lack of proper documentation of controls over compliance with reporting and earmarking requirements could result in errors being reported and going undetected or not detected in a timely manner. This could ultimately result in questioned costs. Repeat Finding: No Recommendation: We recommend that the City implement procedures and controls to ensure the required reports are accurate before submitting. Viewed of responsible officials: There is no disagreement with the audit finding.