Audit 48411

FY End
2022-12-31
Total Expended
$7.66M
Findings
6
Programs
10
Organization: City of Wausau (WI)
Year: 2022 Accepted: 2023-09-27

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
50685 2022-001 Significant Deficiency Yes LN
50686 2022-001 Significant Deficiency Yes LN
50687 2022-002 Significant Deficiency - I
627127 2022-001 Significant Deficiency Yes LN
627128 2022-001 Significant Deficiency Yes LN
627129 2022-002 Significant Deficiency - I

Programs

Contacts

Name Title Type
NNCHJ5RB3Y67 Maryanne Groat Auditee
7152616645 Jon Trautman, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Citys 2022 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying Schedules of Expenditures of Federal and State Awards for the City are 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) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration.The Schedules of Expenditures of Federal and State Awards include all federal and state awards of the City. Because the schedules present 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.
Title: OVERSIGHT AGENCIES Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Citys 2022 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The federal and state oversight agencies for the City are as follows:Federal U.S. Department of the Treasury State Wisconsin Department of Transportation

Finding Details

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B-19-MC-55-0017, 2019; B-20-MC-55-0017, 2020; B-20-MW-55-0017, 2020; B-21-MC-55-0017, 2021; B-22MC-55-0017, 2022 Award Period: 1/1/2019 ? 9/1/2029 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires the City to implement and maintain a system of internal controls over federal grants. Condition: The City has not formally designated an individual to review and approve the reports or the environmental reviews nor clarify how the review and approval was to be documented, to ensure the compliance requirements are completed in accordance with the grant requirements. Questioned costs: None Context: The City did not have procedures requiring documentation of the review and approval by an individual other than the preparer of all required annual reports and the environmental review determination form. Cause: The City had not performed a periodic evaluation of the internal controls surrounding the grant program to identify the lack of documentation indicating a review of the annual reporting and environmental review forms had been performed. Effect: Without documenting the review, there is a risk that the reports were not reviewed prior to submission by the City and could contain an error. Repeat Finding: Repeat of Finding 2021-002 Recommendation: We recommend the City review the various requirements of the CDBG grant program and identify individuals who can act as a reviewer and approver of the environmental review requirements. We also recommend the City document these procedures and internal controls as required by Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B-19-MC-55-0017, 2019; B-20-MC-55-0017, 2020; B-20-MW-55-0017, 2020; B-21-MC-55-0017, 2021; B-22MC-55-0017, 2022 Award Period: 1/1/2019 ? 9/1/2029 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires the City to implement and maintain a system of internal controls over federal grants. Condition: The City has not formally designated an individual to review and approve the reports or the environmental reviews nor clarify how the review and approval was to be documented, to ensure the compliance requirements are completed in accordance with the grant requirements. Questioned costs: None Context: The City did not have procedures requiring documentation of the review and approval by an individual other than the preparer of all required annual reports and the environmental review determination form. Cause: The City had not performed a periodic evaluation of the internal controls surrounding the grant program to identify the lack of documentation indicating a review of the annual reporting and environmental review forms had been performed. Effect: Without documenting the review, there is a risk that the reports were not reviewed prior to submission by the City and could contain an error. Repeat Finding: Repeat of Finding 2021-002 Recommendation: We recommend the City review the various requirements of the CDBG grant program and identify individuals who can act as a reviewer and approver of the environmental review requirements. We also recommend the City document these procedures and internal controls as required by Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 3/3/2021 ? 12/31/2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The City did not maintain documentation to support that the required search for suspension and debarment was performed. Questioned Costs: None Context: While performing audit procedures, it was noted that City management did not maintain documentation that a search for suspension and debarment prior to finalizing the procurement was performed. Cause: The City did not have a procedure in place to require documentation be maintained that a search for suspension and department associated with procurement transactions in excess of the $25,000 threshold had been performed. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the City review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B-19-MC-55-0017, 2019; B-20-MC-55-0017, 2020; B-20-MW-55-0017, 2020; B-21-MC-55-0017, 2021; B-22MC-55-0017, 2022 Award Period: 1/1/2019 ? 9/1/2029 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires the City to implement and maintain a system of internal controls over federal grants. Condition: The City has not formally designated an individual to review and approve the reports or the environmental reviews nor clarify how the review and approval was to be documented, to ensure the compliance requirements are completed in accordance with the grant requirements. Questioned costs: None Context: The City did not have procedures requiring documentation of the review and approval by an individual other than the preparer of all required annual reports and the environmental review determination form. Cause: The City had not performed a periodic evaluation of the internal controls surrounding the grant program to identify the lack of documentation indicating a review of the annual reporting and environmental review forms had been performed. Effect: Without documenting the review, there is a risk that the reports were not reviewed prior to submission by the City and could contain an error. Repeat Finding: Repeat of Finding 2021-002 Recommendation: We recommend the City review the various requirements of the CDBG grant program and identify individuals who can act as a reviewer and approver of the environmental review requirements. We also recommend the City document these procedures and internal controls as required by Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B-19-MC-55-0017, 2019; B-20-MC-55-0017, 2020; B-20-MW-55-0017, 2020; B-21-MC-55-0017, 2021; B-22MC-55-0017, 2022 Award Period: 1/1/2019 ? 9/1/2029 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires the City to implement and maintain a system of internal controls over federal grants. Condition: The City has not formally designated an individual to review and approve the reports or the environmental reviews nor clarify how the review and approval was to be documented, to ensure the compliance requirements are completed in accordance with the grant requirements. Questioned costs: None Context: The City did not have procedures requiring documentation of the review and approval by an individual other than the preparer of all required annual reports and the environmental review determination form. Cause: The City had not performed a periodic evaluation of the internal controls surrounding the grant program to identify the lack of documentation indicating a review of the annual reporting and environmental review forms had been performed. Effect: Without documenting the review, there is a risk that the reports were not reviewed prior to submission by the City and could contain an error. Repeat Finding: Repeat of Finding 2021-002 Recommendation: We recommend the City review the various requirements of the CDBG grant program and identify individuals who can act as a reviewer and approver of the environmental review requirements. We also recommend the City document these procedures and internal controls as required by Uniform Guidance. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of the Treasury Federal Program Name: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 3/3/2021 ? 12/31/2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The City did not maintain documentation to support that the required search for suspension and debarment was performed. Questioned Costs: None Context: While performing audit procedures, it was noted that City management did not maintain documentation that a search for suspension and debarment prior to finalizing the procurement was performed. Cause: The City did not have a procedure in place to require documentation be maintained that a search for suspension and department associated with procurement transactions in excess of the $25,000 threshold had been performed. Effect: Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Repeat Finding: No Recommendation: We recommend that the City review its policies over suspension and debarment review to ensure they are maintaining compliance and controls over verifying or contracting with vendors that are allowable. Views of Responsible Officials: There is no disagreement with the audit finding.