FAC Explorer

Audit 412041

FY End
2025-12-31
Total Expended
$1.96M
Findings
2
Programs
3
Organization: City of Whitewater (WI)
Year: 2025 Accepted: 2026-09-24
Auditor: JOHNSON BLOCK & COMPANY INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1236510 2025-001 Material Weakness Yes B
1236511 2025-001 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
66.468 DRINKING WATER STATE REVOLVING FUND $786,833 Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $203,800 Yes 0
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $117,434 Yes 0

Contacts

Name Title Type
L1BAVJAH5J25 Rachelle Blitch Auditee
2624731380 Kevin Krysinski Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Whitewater, Wisconsin.
In accordance with the Uniform Guidance, the determination of when federal awards are expended for loan programs is based on the requirements of 2 CFR 200.502(b). Under this provision, the value of federal awards expended for loan and loan guarantee programs includes: • The value of new loans made or received during the audit period, • The beginning-of-period loan balance for loans from prior years for which the Federal Government imposes continuing compliance requirements, and • Any interest subsidy, cash, or administrative cost allowance received during the fiscal year. For the year ended December 31, 2025, the following amounts were included in the schedule of expenditures of federal awards for the Capitalization Grants for Drinking Water State Revolving Loan Fund, Assistance Listing Number #66.468: • New Loans Received During the Year: $454,920 • Beginning Loan Balance Subject to Federal Compliance Requirements: No balance • Interest Subsidies / Administrative Cost Allowances Received: None The total federal awards expended for this loan program, as included on the schedule of expenditures of federal awards, were therefore $454,920, representing the sum of the components listed above. Additionally, $331,913 in federal expenditures were incurred and accrued as of December 31, 2025, which are also included on the schedule of expenditures of federal awards. However, loan proceeds related to these additional expenditures were not received until after year-end. For loan programs where the entity does not originate loans—such as certain student loan programs at institutions of higher education—only the value of loans made during the audit period is reported as federal awards expended, and prior-year loan balances are not included in accordance with 2 CFR 200.502(c). The City was approved by the Environmental Protection Agency, the Wisconsin Department of Natural Resources, and the Wisconsin Department of Administration to receive a loan totaling $1,506,107 to replace lead service lines through the Safe Drinking Water Loan Program. The amount listed above ($454,920) for this loan includes the proceeds used during the year. The outstanding loan balance as of December 31, 2025 was $454,920.
No amounts were passed through to subrecipients.

Finding Details

Finding 2025-001
Assistance Listing Number/Program Title: #66.468/Capitalization Grants for Drinking Water State Revolving Loan Fund Federal Agency/Pass-Through Entity: Environmental Protection Agency/Wisconsin Department of Administration Award Number/Year: 5650-02/2025 Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated. Condition: The auditors proposed audit adjustments that, if not made, would have resulted in the financial statements being materially misstated. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Effect: The City’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Financial reports generated by the accounting system may not provide an accurate reflection of the City’s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Recommendation: The auditors recommend that policies and procedures should be implemented to ensure account balances are properly recorded and reconciled in a timely manner. Response: The City acknowledges their responsibility for the financial statements and recording of the current year activity. Going forward, the City will work toward verifying that all activity is completely and accurately recorded in the financial records and reflected on the financial statements.