FAC Explorer

Audit 408959

FY End
2024-12-31
Total Expended
$0
Findings
2
Programs
1
Organization: City of Blackduck (MN)
Year: 2024 Accepted: 2026-08-12
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1226289 2024-009 Material Weakness Yes L
1226290 2024-009 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $0 Yes 1

Contacts

Name Title Type
HM6FWVA5BA89 Christina Regas Auditee
2188354810 Troy Gabler Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Blackduck (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 2 CFR 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 net position, or cash flows of the City. The entire amount shown on the schedule of expenditures of federal awards is the outstanding federal loan amount at December 31, 2024.
The City participates in federal loan programs administered by the United States Department of Agriculture. For purposes of the Schedule of Expenditures of Federal Awards, expenditures of federal awards include the beginning balance of loans for which the federal government imposes continuing compliance requirements, as well as any new loans received during the fiscal year. At December 31, 2024, the outstanding balance of loans subject to continuing compliance requirements totaled $1,934,059. These loans are included in the federal expenditures presented in the accompanying Schedule of Expenditures of Federal Awards 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.

Finding Details

Finding 2024-009
Prior Year Finding: N/A Federal Agency: U.S. Department of Agriculture Entity: City of Blackduck (the City) Federal Program: Community Facilities Loans and Grants Assistance Listing: 10.766 Federal Award Identification Number and Year: LB 8748260 2024 Pass-Through Entity: N/A Compliance Requirement: Reporting Type of Finding Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: There should be formally documented review of the management report prior to sending to the USDA by an individual other than the person preparing the report. Condition: The City was unable to provide a documented formal review process for the management report. Context: The City was unable to provide a documented formal review process for the management report. Cause: The City Administator prepares and sends the report and there is no formal review, as there are only two individuals working in finance at the City. There should be one individual preparing this report, and another individual reviewing this report to have adequate review over the management report. Effect: There is no way to verify the review process was completed and completed timely. Questioned Costs: None. Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Views of Responsible Officials: There is no disagreement with the audit finding, the City will implement a most robust internal control process.