FAC Explorer

Audit 362777

FY End
2024-12-31
Total Expended
$1.41M
Findings
6
Programs
2
Organization: City of Stillwater (MN)
Year: 2024 Accepted: 2025-07-22
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571758 2024-001 Material Weakness - I
571759 2024-002 Material Weakness - I
571760 2024-003 Material Weakness - I
1148200 2024-001 Material Weakness - I
1148201 2024-002 Material Weakness - I
1148202 2024-003 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.41M Yes 3
16.607 Bulletproof Vest Partnership Program $3,567 - 0

Contacts

Name Title Type
SNNNKS7NB4H1 Sharon Provos Auditee
6514308812 Christopher Knopik Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The expenditures on this schedule are on the basis of accounting used by the individual funds of City of Stillwater. Governmental funds use the modified accrual basis of accounting, and the enterprise fund uses the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has elected to not use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Stillwater 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 2 CFR 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 City of Stillwater, it is not intended to and does not present the financial position, changes in net assets, or cash flows of City of Stillwater.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619, 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024, through December 31, 2024. Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Procurement policy should be in place to ensure compliance with program requirements as stated in: UG §200.318 General procurement standards, UG §200.319 Competition, §200.320 Methods of procurement to be followed, and §200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. Condition: There is no procurement policy in place. Questioned costs: None noted. Context: The City does not have an adequate procurement policy Cause: No policy was created as the City has not had a single audit in prior years. Effect: Procurement could be out of compliance with program requirements. Repeat Finding: No. Recommendation: CLA recommends that the City implement a formal procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619, 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024, through December 31, 2024. Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The City should ensure Suspension & Debarment procedures are documented, followed and performed. Condition: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal 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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov | Home (click on Search Record, then click on Advanced Search-Exclusions) (Note: The OMB guidance at 2 CFR part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Questioned costs: None noted. Context: The City was unaware consultants also needed to be checked for suspension and debarment. Cause: Procedures not formalized when updated and one vendor was not properly verified. Effect: Lack of updated policies and suspension & debarment procedures being performed could lead to the vendor entering into a covered transaction with a suspended or debarred procedure or that incorrect procedures being performed. Repeat Finding: No. Recommendation: We recommend the City formalizes their suspension & debarment procedures in a policy and ensure they check suspension & debarment for all vendors prior to entering into a covered transaction. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619, 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024, through December 31, 2024. Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The City should retain all procurement documentation. Condition: The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Questioned costs: None noted. Context: The City did not retain procurement documentation as an outside consultant handled the procurement process. Cause: The City did not retain documentation. Effect: Procurement could be out of compliance with program requirements. Repeat Finding: No. Recommendation: CLA recommends that the City implement a formal procurement policy. Views of responsible officials: There is no disagreement with the audit finding. SECTION IV – MINNESOTA LEGAL COMPLIANCE Our audit did not disclose any matters required to be reported in accordance with Minnesota Legal Compliance Audit Guide for Counties, promulgated by the State Auditor.
Finding 2024-001
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619, 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024, through December 31, 2024. Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Procurement policy should be in place to ensure compliance with program requirements as stated in: UG §200.318 General procurement standards, UG §200.319 Competition, §200.320 Methods of procurement to be followed, and §200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. Condition: There is no procurement policy in place. Questioned costs: None noted. Context: The City does not have an adequate procurement policy Cause: No policy was created as the City has not had a single audit in prior years. Effect: Procurement could be out of compliance with program requirements. Repeat Finding: No. Recommendation: CLA recommends that the City implement a formal procurement policy. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619, 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024, through December 31, 2024. Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The City should ensure Suspension & Debarment procedures are documented, followed and performed. Condition: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal 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. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov | Home (click on Search Record, then click on Advanced Search-Exclusions) (Note: The OMB guidance at 2 CFR part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Questioned costs: None noted. Context: The City was unaware consultants also needed to be checked for suspension and debarment. Cause: Procedures not formalized when updated and one vendor was not properly verified. Effect: Lack of updated policies and suspension & debarment procedures being performed could lead to the vendor entering into a covered transaction with a suspended or debarred procedure or that incorrect procedures being performed. Repeat Finding: No. Recommendation: We recommend the City formalizes their suspension & debarment procedures in a policy and ensure they check suspension & debarment for all vendors prior to entering into a covered transaction. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619, 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024, through December 31, 2024. Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The City should retain all procurement documentation. Condition: The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Questioned costs: None noted. Context: The City did not retain procurement documentation as an outside consultant handled the procurement process. Cause: The City did not retain documentation. Effect: Procurement could be out of compliance with program requirements. Repeat Finding: No. Recommendation: CLA recommends that the City implement a formal procurement policy. Views of responsible officials: There is no disagreement with the audit finding. SECTION IV – MINNESOTA LEGAL COMPLIANCE Our audit did not disclose any matters required to be reported in accordance with Minnesota Legal Compliance Audit Guide for Counties, promulgated by the State Auditor.