FAC Explorer

Audit 364067

FY End
2023-06-30
Total Expended
$2.05M
Findings
2
Programs
3
Organization: City of Sapulpa (OK)
Year: 2023 Accepted: 2025-08-11
Auditor: Arledge & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573276 2023-002 Significant Deficiency - N
1149718 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.02M Yes 1
20.600 State and Community Highway Safety $22,747 - 0
14.218 Community Development Block Grants/entitlement Grants $253 - 0

Contacts

Name Title Type
MJLKRLM8M9G5 Ella Fast Auditee
9182243040 Jake Winkler Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Program does not have an indirect cost rate and had no indirect costs charged to the federal grants during the year ended June 30, 2024. The Program has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the City under programs of the federal government for the year ended June 30, 2023. The information in this SEFA 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 SEFA presents only a selected portion of the operations of City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Program does not have an indirect cost rate and had no indirect costs charged to the federal grants during the year ended June 30, 2024. The Program has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the SEFA are reported on the accrual basis of accounting. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Program does not have an indirect cost rate and had no indirect costs charged to the federal grants during the year ended June 30, 2024. The Program has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. The City did not pass through any funding to subrecipients during the year ended June 30, 2023.
Title: SUBSEQUENT EVENTS Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Expenditures of federal awards are recognized in the accounting period when the liability is incurred. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Program does not have an indirect cost rate and had no indirect costs charged to the federal grants during the year ended June 30, 2024. The Program has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. The City has evaluated the effects of all subsequent events from June 30, 2023, through the date on which the SEFA was available to be issued, for potential recognition or disclosure in this SEFA. The City is not aware of any subsequent events which would require recognition or disclosure in the SEFA.

Finding Details

Finding 2023-002
Criteria: Federal funds expended throughout the City must be reported to the finance department for proper reporting on the schedule of expenditures of federal awards (“SEFA”). Condition: Funding related to the American Rescue Plan Act (“ARPA”) was omitted from the SEFA and was not reported to the finance department as part of the year end closing process related to the Sapulpa Basin 4 improvements and repairs to the wastewater treatment plant intake line. Cause and Effect: During FY23, projects approved for funding under ARPA were started by the City and were paid for using ARPA funding. However, the expenditures were not reported to the finance department as being funded by federal grant dollars and were not tracked against compliance requirements by the finance department to ensure allowability of costs. Additionally, since these expenditures were not properly reported to finance, the total amount spent on the ARPA grants was omitted from the original SEFA that was prepared by management and provided to the auditors. Recommendation: Management should implement processes and procedures to properly monitor federal awards expended in various departments of the City to ensure that they are properly reported to the finance department so that the expenditures are included on the SEFA each year.
Finding 2023-002
Criteria: Federal funds expended throughout the City must be reported to the finance department for proper reporting on the schedule of expenditures of federal awards (“SEFA”). Condition: Funding related to the American Rescue Plan Act (“ARPA”) was omitted from the SEFA and was not reported to the finance department as part of the year end closing process related to the Sapulpa Basin 4 improvements and repairs to the wastewater treatment plant intake line. Cause and Effect: During FY23, projects approved for funding under ARPA were started by the City and were paid for using ARPA funding. However, the expenditures were not reported to the finance department as being funded by federal grant dollars and were not tracked against compliance requirements by the finance department to ensure allowability of costs. Additionally, since these expenditures were not properly reported to finance, the total amount spent on the ARPA grants was omitted from the original SEFA that was prepared by management and provided to the auditors. Recommendation: Management should implement processes and procedures to properly monitor federal awards expended in various departments of the City to ensure that they are properly reported to the finance department so that the expenditures are included on the SEFA each year.