Audit 364126

FY End
2022-12-31
Total Expended
$16.64M
Findings
2
Programs
3
Organization: City of Wapakoneta (OH)
Year: 2022 Accepted: 2025-08-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
573320 2022-002 Material Weakness - P
1149762 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
66.468 Capitalization Grants for Drinking Water State Revolving Funds $15.06M Yes 0
20.205 Highway Planning and Construction - Aug Cr 25a 3.29 $1.48M Yes 1
21.019 Covid-19 - Coronavirus Relief Fund $104,548 - 0

Contacts

Name Title Type
CSR1XAMKNW64 Paula Anderson Auditee
4197383011 Tara Weaver Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 - MATCHING REQUIREMENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Wapakoneta (the “City”) under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared 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 Schedule presents 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. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain Federal programs require the City to contribute non-Federal funds (matching funds) to support the Federallyfunded programs. The City has met its matching requirements. The Schedule does not include the expenditure of non- Federal matching funds.
Title: NOTE 4 – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Wapakoneta (the “City”) under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared 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 Schedule presents 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. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. For the year ended December 31, 2022, it was determined that City did not identify certain expenditures of federal awards. Subsequent to the original issuance of the audit report on November 17, 2023, with the assistance of the passthrough entity, it was determined that the City omitted the following expenditures of federal awards from the originally provided Schedule: $1,484,064 of expenditures related to the Highway Planning and Construction Cluster (Highway Planning and Construction - AUG CR 25A 3.29), from the U.S. Department of Transportation and passed through the Ohio Department of Transportation, were omitted from the originally provided Schedule. Management has revised and reissued the Schedule.

Finding Details

Material Weakness/Noncompliance – Other 2 CFR §200.510(b) states, in part, that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a. List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b. For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c. Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d. Include the total amount provided to subrecipients from each Federal program. e. For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f. Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. Subsequent to the original issuance of the 2022 audit report dated November 17, 2023, with the assistance of the pass-through entity, it was determined that the City omitted a federally funded program under the Highway Planning and Construction Cluster (Highway Planning and Construction - AUG CR 25A 3.29 - ALN 20.205). The related expenditures of $1,484,064, were excluded from the City’s originally provided SEFA. The City failed to properly identify/communicate the federal designation of the project. Inaccurate completion of the SEFA could lead to inaccurate reporting of federal expenditures by the City and could jeopardize future federal funding. The City’s originally provided SEFA for 2022 was materially misstated by the exclusion of the Highway Planning and Construction Cluster (Highway Planning and Construction - AUG CR 25A 3.29 - ALN 20.205), in the amount of $1,484,064. We recommend that the City review the process for identifying federal awards to minimize the likelihood of errors in the reporting process. Officials Response: See Corrective Action Plan
Material Weakness/Noncompliance – Other 2 CFR §200.510(b) states, in part, that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a. List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b. For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c. Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d. Include the total amount provided to subrecipients from each Federal program. e. For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f. Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. Subsequent to the original issuance of the 2022 audit report dated November 17, 2023, with the assistance of the pass-through entity, it was determined that the City omitted a federally funded program under the Highway Planning and Construction Cluster (Highway Planning and Construction - AUG CR 25A 3.29 - ALN 20.205). The related expenditures of $1,484,064, were excluded from the City’s originally provided SEFA. The City failed to properly identify/communicate the federal designation of the project. Inaccurate completion of the SEFA could lead to inaccurate reporting of federal expenditures by the City and could jeopardize future federal funding. The City’s originally provided SEFA for 2022 was materially misstated by the exclusion of the Highway Planning and Construction Cluster (Highway Planning and Construction - AUG CR 25A 3.29 - ALN 20.205), in the amount of $1,484,064. We recommend that the City review the process for identifying federal awards to minimize the likelihood of errors in the reporting process. Officials Response: See Corrective Action Plan