FAC Explorer

Audit 365546

FY End
2024-12-31
Total Expended
$882,632
Findings
2
Programs
1
Organization: City of Grafton (ND)
Year: 2024 Accepted: 2025-09-04
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575557 2024-002 Material Weakness - L
1151999 2024-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $882,632 Yes 1

Contacts

Name Title Type
VUXDMHBQLLX6 Wanda Ensrude Auditee
7013521561 Matt Laughlin Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the federal award activity of City of Grafton, North Dakota, 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 the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of City of Grafton, North Dakota, it is not intended to and does not present the financial position, changes in net position or cash flows of City of Grafton, North Dakota.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During 2024, the City did not pass any federal money to subrecipients.

Finding Details

Finding 2024-002
Federal Program: Airport Improvement Program (AL 20.106) Reporting Criteria: Uniform Guidance deems SF-425 reports as direct and material. Through review of grant agreements, we noted that these are required to be submitted yearly by December 31 until the grant is completed. Condition: Through testing, we noted that the City had not prepared and submitted 2 of the 3 required SF- 425 reports by the December 31 deadline. Questioned Costs: None Context: In a population of 4, we selected 3 reports to test. We noted that 2 reports were not prepared and submitted by the due date. Cause: The City does not have the controls in place to ensure reports are being prepared and submitted. Effect: The City is in not in compliance with Uniform Guidance. Repeat Finding: No Recommendation: The City should implement procedures to ensure all required reports are prepared and submitted by their due dates. View of Responsible Officials and Planned Corrective Actions: The City agrees with the recommendation and will review its procedures.
Finding 2024-002
Federal Program: Airport Improvement Program (AL 20.106) Reporting Criteria: Uniform Guidance deems SF-425 reports as direct and material. Through review of grant agreements, we noted that these are required to be submitted yearly by December 31 until the grant is completed. Condition: Through testing, we noted that the City had not prepared and submitted 2 of the 3 required SF- 425 reports by the December 31 deadline. Questioned Costs: None Context: In a population of 4, we selected 3 reports to test. We noted that 2 reports were not prepared and submitted by the due date. Cause: The City does not have the controls in place to ensure reports are being prepared and submitted. Effect: The City is in not in compliance with Uniform Guidance. Repeat Finding: No Recommendation: The City should implement procedures to ensure all required reports are prepared and submitted by their due dates. View of Responsible Officials and Planned Corrective Actions: The City agrees with the recommendation and will review its procedures.