FAC Explorer

Audit 365757

FY End
2024-12-31
Total Expended
$1.27M
Findings
2
Programs
3
Organization: City of Chisholm (MN)
Year: 2024 Accepted: 2025-09-08
Auditor: Sterle & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575781 2024-001 Significant Deficiency Yes P
1152223 2024-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $686,411 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $512,134 - 0
14.218 Community Development Block Grants/entitlement Grants $70,000 - 0

Contacts

Name Title Type
NRL1ZVFVQ3R7 Devin Ceglar Auditee
2182542700 Jeffrey Sterle Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: See attached De Minimis Rate Used: N Rate Explanation: See attached The accompanying schedule of expenditures of federal awards includes the federal award activity of the City 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 Title 2 U.S code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because this 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.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: See attached De Minimis Rate Used: N Rate Explanation: See attached Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are regognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Cost Rate Accounting Policies: See attached De Minimis Rate Used: N Rate Explanation: See attached The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4- COVID 19 - Coronavirus State and Local Fiscal Recovery Funds Accounting Policies: See attached De Minimis Rate Used: N Rate Explanation: See attached The City received $529,910 in funds in prior years. During the current year, the City expended the final $512,134 of these funds as reflected in the accompanying Schedule of Expenditures of Federal Awards. The City expended $17,776 in previous years as allowed under the funding provisions.

Finding Details

Finding 2024-001
Lack of segregation of duties - Significant Deficiency Criteria: For an effective control system division of accounting, duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. No one individual should have more than one duty related to approval, custody of assets, record keeping, and reconciliation functions. Condition: The City does not have enough staff to adequately separate duties over some financial transactions. Context: The lack of segregation of duties exits within the City as a whole over some of its accounting and reporting functions. This is a common circumstance in governments of similar size. Cause: LImited number of staff available to appropriately divide duties. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Recommendation: The City be cognizant of the situation and provide appropriate oversight as deemed necesary. Views of Responsible Officials and Corrective Actions: The City agrees with the recommendations and continues to provide oversight as needed.
Finding 2024-001
Lack of segregation of duties - Significant Deficiency Criteria: For an effective control system division of accounting, duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. No one individual should have more than one duty related to approval, custody of assets, record keeping, and reconciliation functions. Condition: The City does not have enough staff to adequately separate duties over some financial transactions. Context: The lack of segregation of duties exits within the City as a whole over some of its accounting and reporting functions. This is a common circumstance in governments of similar size. Cause: LImited number of staff available to appropriately divide duties. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Recommendation: The City be cognizant of the situation and provide appropriate oversight as deemed necesary. Views of Responsible Officials and Corrective Actions: The City agrees with the recommendations and continues to provide oversight as needed.