FAC Explorer

Audit 5705

FY End
2022-12-31
Total Expended
$2.12M
Findings
4
Programs
3
Organization: City of Eagle River (WI)
Year: 2022 Accepted: 2023-12-07
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3655 2022-004 Significant Deficiency - P
3656 2022-004 Significant Deficiency - P
580097 2022-004 Significant Deficiency - P
580098 2022-004 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.24M Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $747,874 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $130,178 - 0

Contacts

Name Title Type
ELMLFME92HL9 Robin Ginner Auditee
7154798682 Scott Sternhagen, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Revenues and expenditures in the schedule is presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the City’s 2022 fund financial statements. 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. Accrued revenue at year-end consists of federal program expenditures scheduled for reimbursement to the City in the succeeding year while unearned revenue represents advances for federal programs that exceed recorded City expenditures. Because of the subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis rate of 10% of modified total costs. The accompanying schedules of expenditures of federal awards for the City are presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The schedule of expenditures of federal awards include all federal awards of the City. 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.
Title: Oversight Agencies Accounting Policies: Revenues and expenditures in the schedule is presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the City’s 2022 fund financial statements. 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. Accrued revenue at year-end consists of federal program expenditures scheduled for reimbursement to the City in the succeeding year while unearned revenue represents advances for federal programs that exceed recorded City expenditures. Because of the subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis rate of 10% of modified total costs. The federal oversight agencies for the City are as follows: U.S. Department of Agriculture

Finding Details

Finding 2022-004
Uniform Grant Guidance Implementation Federal Agency: All Federal Program Name: All Assistance Listing Number: All Pass-Through Agency: All Pass-Through Numbers: All Award Period: 01/01/2022 – 12/31/2022 Type of Finding Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement Uniform Guidance requires the City to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition The City has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the City are managed through these city-wide policies and procedures; however, the policies and procedures have not been evaluated to ensure compliance with the requirements of Uniform Guidance. As an example, the City is required to have an allowable cost policy which establishes the responsible officials who are able to determine if a cost is allowable. While expenditures tested had documentation of approval, implementing a formal policy in accordance with Uniform Guidance would improve transparency and effectiveness of the City’s documentation. Questioned Costs None. Context While performing audit procedures, it was noted the City does not have policies in place that conform to Uniform Grant Guidance requirements. Cause The City has not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end.Effect They City could become noncompliant with requirements of Uniform Guidance, resulting in future findings and questioned cost related to federal awards administered by the City. The City’s 2022 audit in accordance with the requirements of Uniform Guidance did not identify any instances of noncompliance with respect to direct and material compliance requirements of its major federal award programs. Recommendation We recommend the City finalized the assessment of its financial management system and related internal controls over federal awards during the 2023 fiscal year. This assessment should include an evaluation of existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to City employees, and procedures to periodically review and update, as considered necessary. Views of Responsible Officials There is no disagreement with the audit finding. Refer to the management response per the corrective action plan.
Finding 2022-004
Uniform Grant Guidance Implementation Federal Agency: All Federal Program Name: All Assistance Listing Number: All Pass-Through Agency: All Pass-Through Numbers: All Award Period: 01/01/2022 – 12/31/2022 Type of Finding Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement Uniform Guidance requires the City to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition The City has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the City are managed through these city-wide policies and procedures; however, the policies and procedures have not been evaluated to ensure compliance with the requirements of Uniform Guidance. As an example, the City is required to have an allowable cost policy which establishes the responsible officials who are able to determine if a cost is allowable. While expenditures tested had documentation of approval, implementing a formal policy in accordance with Uniform Guidance would improve transparency and effectiveness of the City’s documentation. Questioned Costs None. Context While performing audit procedures, it was noted the City does not have policies in place that conform to Uniform Grant Guidance requirements. Cause The City has not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end.Effect They City could become noncompliant with requirements of Uniform Guidance, resulting in future findings and questioned cost related to federal awards administered by the City. The City’s 2022 audit in accordance with the requirements of Uniform Guidance did not identify any instances of noncompliance with respect to direct and material compliance requirements of its major federal award programs. Recommendation We recommend the City finalized the assessment of its financial management system and related internal controls over federal awards during the 2023 fiscal year. This assessment should include an evaluation of existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to City employees, and procedures to periodically review and update, as considered necessary. Views of Responsible Officials There is no disagreement with the audit finding. Refer to the management response per the corrective action plan.
Finding 2022-004
Uniform Grant Guidance Implementation Federal Agency: All Federal Program Name: All Assistance Listing Number: All Pass-Through Agency: All Pass-Through Numbers: All Award Period: 01/01/2022 – 12/31/2022 Type of Finding Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement Uniform Guidance requires the City to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition The City has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the City are managed through these city-wide policies and procedures; however, the policies and procedures have not been evaluated to ensure compliance with the requirements of Uniform Guidance. As an example, the City is required to have an allowable cost policy which establishes the responsible officials who are able to determine if a cost is allowable. While expenditures tested had documentation of approval, implementing a formal policy in accordance with Uniform Guidance would improve transparency and effectiveness of the City’s documentation. Questioned Costs None. Context While performing audit procedures, it was noted the City does not have policies in place that conform to Uniform Grant Guidance requirements. Cause The City has not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end.Effect They City could become noncompliant with requirements of Uniform Guidance, resulting in future findings and questioned cost related to federal awards administered by the City. The City’s 2022 audit in accordance with the requirements of Uniform Guidance did not identify any instances of noncompliance with respect to direct and material compliance requirements of its major federal award programs. Recommendation We recommend the City finalized the assessment of its financial management system and related internal controls over federal awards during the 2023 fiscal year. This assessment should include an evaluation of existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to City employees, and procedures to periodically review and update, as considered necessary. Views of Responsible Officials There is no disagreement with the audit finding. Refer to the management response per the corrective action plan.
Finding 2022-004
Uniform Grant Guidance Implementation Federal Agency: All Federal Program Name: All Assistance Listing Number: All Pass-Through Agency: All Pass-Through Numbers: All Award Period: 01/01/2022 – 12/31/2022 Type of Finding Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement Uniform Guidance requires the City to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition The City has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the City are managed through these city-wide policies and procedures; however, the policies and procedures have not been evaluated to ensure compliance with the requirements of Uniform Guidance. As an example, the City is required to have an allowable cost policy which establishes the responsible officials who are able to determine if a cost is allowable. While expenditures tested had documentation of approval, implementing a formal policy in accordance with Uniform Guidance would improve transparency and effectiveness of the City’s documentation. Questioned Costs None. Context While performing audit procedures, it was noted the City does not have policies in place that conform to Uniform Grant Guidance requirements. Cause The City has not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end.Effect They City could become noncompliant with requirements of Uniform Guidance, resulting in future findings and questioned cost related to federal awards administered by the City. The City’s 2022 audit in accordance with the requirements of Uniform Guidance did not identify any instances of noncompliance with respect to direct and material compliance requirements of its major federal award programs. Recommendation We recommend the City finalized the assessment of its financial management system and related internal controls over federal awards during the 2023 fiscal year. This assessment should include an evaluation of existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to City employees, and procedures to periodically review and update, as considered necessary. Views of Responsible Officials There is no disagreement with the audit finding. Refer to the management response per the corrective action plan.