FAC Explorer

Audit 381838

FY End
2025-06-30
Total Expended
$1.57M
Findings
2
Programs
2
Organization: City of Forest City (IA)
Year: 2025 Accepted: 2026-01-15
Auditor: TP ANDERSON & COMPANY PC CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1169088 2025-004 Material Weakness Yes P
1169089 2025-005 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $1.45M Yes 2
15.685 NATIONAL FISH PASSAGE $118,952 Yes 0

Contacts

Name Title Type
XLLKCXBLGKB7 Betty Burress Auditee
6415853574 Tim McCartan Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Forest City under programs of the federal government for the year ended June 30, 2025. 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 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 financial position or cash flows of the City.
The City of Forest City did not pass through any federal funds to sub-recipients for the year ended June 30, 2025.

Finding Details

Finding 2025-004
Single Audit Process Criteria – Title 2, U.S. Code of Federal Regulations §200.501 states that an entity that expends $750,000 or more during the non-Federal entity’s fiscal year in Federal awards, must have a single audit or program-specific audit conducted for that year in accordance with the provision in §200.501. Condition – The City did not provide an accurate listing of federal awards expended even though they were aware of the single audit requirement. Cause – The City’s management did not track expenditures of federal awards for the year ended June 30, 2025 to determine what federal audit requirements applied if any. Effect – The City’s internal control over compliance with federal audit requirements was inadequate. Recommendation – The City should establish a process to track the dollar amount of federal expenditures that were spent during the year to determine if an audit in accordance with uniform guidance is required. This should be done and communicated with the auditors before audit work begins. Response and Corrective Action Planned – The City will work on a formal process for tracking all federal grants. Conclusion – Response accepted.
Finding 2025-005
Special Tests and Provision Criteria – The basic requirement for use of airport revenue is that all revenues generated by a public airport must be expended for the capital or operating costs of the airport and the local airport system. The City should have a proper written policy in regards to how airport revenue is to be spent. Condition – The City did not establish a written policy for the use of airport revenue. However, the City has established a separate set of general ledger accounts specifically to segregate airport revenues and expenses. While no written policy exists, the City has maintained proper tracking to ensure revenue is spent according to the terms and conditions of the grant. Cause – The City’s management was not aware that they needed to have a written policy regarding airport revenue. Effect – The City is not in compliance with Federal regulations pertaining special tests and provisions as required by the Uniform Guidance. Recommendation – The City should establish a written policy for the use of airport revenue. Corrective Action – The City will establish a written policy for the use of airport revenue. Conclusion – Response accepted.