FAC Explorer

Audit 412700

FY End
2025-12-31
Total Expended
$4.30M
Findings
2
Programs
1
Organization: Town of North Liberty (IN)
Year: 2025 Accepted: 2026-09-29
Auditor: CROWE LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1237928 2025-002 Material Weakness Yes L
1237929 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $256,731 Yes 1

Contacts

Name Title Type
W92RJT9KBY76 Vicki Kitchen Auditee
5746564447 Scott Nickerson Auditor
No contacts on file

Notes to SEFA

A. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Town of North Liberty (the “Town”) under programs of the federal government for the year ended December 31, 2025. The information in the 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 select portion of the operations of the Town, it is not intended to and does not present the receipts, disbursements, and cash and investment balances – regulatory basis of the Town. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. When federal grants are received on a reimbursement basis, the federal awards are considered expended when the reimbursement is received.
The Town has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The Town did not have any subrecipient activity for the year ended December 31, 2025.

Finding Details

Finding 2025-002
Information on the federal program: Federal Agency: Department of the Treasury – Internal Controls Pass-Through Entity: N/A – Direct Grant Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Compliance Requirement: Reporting Audit Findings: Significant Deficiency Criteria: The US Department of Treasury’s Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds requires NEUs allocated less than $10 million in SLFRF funding to submit annual project expenditure reports to be completed with the key line items: 1) Obligations and Expenditures 2) Subawards 3) Detailed information of any loans issued; contracts and grants awarded; transfers made to other government entities; and direct payments made by the recipient that are greater than $50,000. For amounts less than $50,000, the recipient must report in the aggregate for these same categories of loans issued; contracts and grants awarded; transfers made to other government entities; and direct payments made by the recipient. Condition: The Town of North Liberty completed annual performance reporting. However, the report incorrectly classified a construction contractor a subrecipient of relief funding from the Town. Cause: The Town does not have an effective system of internal controls in place to effectively review CSLFRF reporting data prior to submission to the US Department of Treasury. Effect: Report contained incorrect information related to subrecipients. Questioned costs: There are no questioned costs. Context: During our testing procedures over CSLFRF reporting, we noted that segregation of duties is not present in the Federal reporting process. The Clerk Treasurer prepared and submitted the reports without a secondary review taking place. As a result, the report contained inaccurate information as it incorrectly identified a subrecipient. Identification as a repeat finding, if applicable: No. Recommendation: We recommend that the Town implement a consistent multi-stage review process for federal data reports, which includes a proper segregation of duties. Views of responsible officials and planned corrective actions: Management acknowledges the finding. See management’s corrective action plan attached to this audit report.