FAC Explorer

Audit 390438

FY End
2025-09-30
Total Expended
$2.28M
Findings
1
Programs
1
Organization: Village of Fairmont (NE)
Year: 2025 Accepted: 2026-03-05
Auditor: GBE CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1176614 2025-002 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
66.468 CAPITALIZATION GRANTS FOR DRINKING WATER STATE REVOLVING FUNDS $2.28M Yes 1

Contacts

Name Title Type
M2G5MZU78EB7 Karen Margheim Auditee
4022683341 Ryan Burger Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of Federal awards (Schedule) includes the Federal award activity of the Village of Fairmont (Village) under programs of the Federal government for the year ended September 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 Village, it is not intended to and does not present the financial position or changes in net assets of the Village. The Village’s reporting entity is defined in Note 1.A. to the Village’s financial statements. Federal awards received directly from Federal agencies, as well as those passed through other government agencies, are included in the Schedule. Unless otherwise noted on the Schedule, all programs are received directly from the respective Federal agency. The Village of Fairmont has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.

Finding Details

Finding 2025-002
Criteria: Good internal control includes a plan of organization, procedures, and records designed to safeguard assets and provide reliable financial records. A system of internal control should include proper segregation of duties so no one individual is capable of handling all phases of a transaction from beginning to end. Condition: The limited number of administrative employees results in an inadequate internal control structure. We noted the Village had a lack of segregation of duties as one person was capable of handling all aspects of processing transactions from beginning to end. Effect: A lack of segregation of duties increases the risk of possible errors or irregularities. Recommendation: We recommend the Village review the situation to determine whether the cost of properly segregating duties is worth the benefit. We further recommend the Village consider implementing certain compensating controls to reduce risk in this area. Response: The Village has reviewed the situation and determined that the cost to segregate duties outweighs the benefits. The Village is looking into ways to implement compensating controls to reduce the risk of lack of segregation of duties to a lower level.