FAC Explorer

Audit 406640

FY End
2025-12-31
Total Expended
$1.25M
Findings
1
Programs
8
Organization: City of Ely, Minnesota (MN)
Year: 2025 Accepted: 2026-07-07
Auditor: WALKER GIROUX & HAHNE LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1223064 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $810,774 Yes 1
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $231,747 Yes 0
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $102,417 Yes 0
20.219 RECREATIONAL TRAILS PROGRAM $75,000 Yes 0
10.698 STATE & PRIVATE FORESTRY COOPERATIVE FIRE ASSISTANCE $5,000 Yes 0
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $1,098 Yes 0
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1,073 Yes 0
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $500 Yes 0

Contacts

Name Title Type
YVXQT4EF7NRS Harold Langowski Auditee
2183653224 Thomas B. Kelly Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City of Ely, Minnesota, under programs of the federal government for the year ended December 31, 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 City of Ely, Minnesota, it is not intended to and does not present the financial position, changes in net position, or cash flows of City of Ely, Minnesota.
Expenditures reported on the Schedule are reported on the modified accrual 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. The City of Ely, Minnesota has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Clusters of programs are groupings of closely related programs that share common compliance requirements. Total expenditures by cluster are: CDBG/Entitlement Grants Cluster $ 231,747 Economic Development Cluster 810,774 $ 1,042,521
There were no pass-through entities.

Finding Details

Finding 2025-001
2025-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City’s administration office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control over transactions. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations Officials and management of the City should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor transactions and the City’s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City’s staffing limitations and funding constraints.