FAC Explorer

Audit 396484

FY End
2025-06-30
Total Expended
$1.91M
Findings
2
Programs
1
Organization: City of Sumner (IA)
Year: 2025 Accepted: 2026-03-30
Auditor: RACHELLE K THOMPSON CPA PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1204850 2025-001 Material Weakness Yes P
1204851 2025-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
97.039 HAZARD MITIGATION GRANT $1.91M Yes 2

Contacts

Name Title Type
LB21A6MJPUT9 Lisa Oberbroeckling Auditee
5635783242 Rachelle Thompson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of the City of Sumner 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 of Sumner, it is not intended to and does not present the financial position or changes in financial position of the City of Sumner.
Expenditures reported in the schedule are reported on the basis of cash receipts and disbursements which is a basis of accounting other than U.S. generally accepted accounting principles. 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.
The City of Sumner has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Segregation of Duties - Criteria - Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the City's financial statements. Condition - One individual in the City has control over the cash receipts listing, bank deposits and the posting of cash receipts to the cash receipts journal. Cause - The City has a limited number of employees and procedures have not been designed to adequately segregate duties or provide compensating controls through additional oversight of transactions and processes. Effect - Inadequate segregation of duties could adversely affect the City's ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Auditor's Recommendation - The City should review its control activities to obtain the maximum internal control possible under the circumstances utilizing currently available staff, including elected officials. City's Response - We will consider this and attempt to segregate duties where possible. Auditor's Conclusion - Response accepted.
Finding 2025-002
Segregation of Duties - Adequate control procedures through the segregation of employee duties is difficult to achieve due to the limited number of staff administering grants and performing accounting functions. See finding 2025-001 for additional information.