Audit 6296

FY End
2022-12-31
Total Expended
$2.08M
Findings
2
Programs
9
Organization: City of Depere (WI)
Year: 2022 Accepted: 2023-12-12

Organization Exclusion Status:

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Contacts

Name Title Type
NETWXQK1LN95 Pamela R. Manley Auditee
9203394041 Scott Sternhagen, 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 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. Expenditures for CFDA 21.019 follow criteria determined by the Department of the Treasury for allowability of costs. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the City in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded City expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Negative amounts shown on the Schedule represent adjustments or credits made in the nrmal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis indirect cost rate of 10% allowed under the Uniform Guidance The accompanying Schedules of Expenditures of Federal and State Awards for the City of De Pere, Wisconsin, 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), the State Single Audit Guidlines issued by the Wisconsin Department of Administration. The Schedules of Expenditures of Federal and State Awards include all federal and state awards of the primary government of the City of De Pere, Wisconsin and are not intended to and do not present the financial position, changes in financial position or cash flows of the City of De Pere, Wisconsin
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 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. Expenditures for CFDA 21.019 follow criteria determined by the Department of the Treasury for allowability of costs. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the City in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded City expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Negative amounts shown on the Schedule represent adjustments or credits made in the nrmal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis indirect cost rate of 10% allowed under the Uniform Guidance The federal and state oversight agencies for the City are as follows: Federal - U.S. Department of Treasury, State - Wisconsin Department of Natural Resources
Title: State Direct Payments 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 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. Expenditures for CFDA 21.019 follow criteria determined by the Department of the Treasury for allowability of costs. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the City in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded City expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Negative amounts shown on the Schedule represent adjustments or credits made in the nrmal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis indirect cost rate of 10% allowed under the Uniform Guidance Payments made directly to recipients and vendors by the State of Wisconsin under the FoodShare Wisconsin program on behalf of the County are not included in the Schedules of Expenditures of Federal and State Awards.
Title: State of Wisconsin Community Aids Reporting System 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 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. Expenditures for CFDA 21.019 follow criteria determined by the Department of the Treasury for allowability of costs. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the City in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded City expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Negative amounts shown on the Schedule represent adjustments or credits made in the nrmal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The City has not elected to charge a de minimis indirect cost rate of 10% allowed under the Uniform Guidance The Wisconsin Departments of Health Services (DHS) utilizes the Community Aids Reporting System (CARS) for reimbursing the City for various federal and state program expenditures. The expenditures reported on the Schedules of Expenditures of Federal and State Awards for various DHS & DCF programs agree with the expenditures reported on the March 2023 CARS for the Public Health Department.

Finding Details

2022-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Names: Community Development Block Grant Assistance Listing Numbers: 14.228 Pass-Through Agency: Wisconsin Department of Administration Pass-Through Numbers: CDBG SP 21-02 Federal Award Identification Number and Year: B-21-DC-55-0001; 2021 Award Periods: September 10, 2021 – March 1, 2023 Type of Finding Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement Uniform Guidance requires the reporting of costs or activities as the basis for making payments to providers. The City should have control activities for ensuring accurate reporting. Condition It was noted that there was a lack of independent review of the Community Development Block Grant reports submitted by someone who did not prepare the report. Questioned Costs None. Context While performing audit procedures, it was noted that the City does not have policies in place to ensure there is an independent review of reports. Cause The City does not have a system of internal controls in place to ensure reports are reviewed by an independent person who did not prepare the report. Effect Grant expenditures could be over or under-reported and not detected by City personnel. Repeat Finding No Recommendation We recommend the City implement procedures to ensure that someone knowledgeable of the grant requirements reviews the prepared report prior to submission. View of Responsible Officials There is no disagreement with the finding.
2022-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Names: Community Development Block Grant Assistance Listing Numbers: 14.228 Pass-Through Agency: Wisconsin Department of Administration Pass-Through Numbers: CDBG SP 21-02 Federal Award Identification Number and Year: B-21-DC-55-0001; 2021 Award Periods: September 10, 2021 – March 1, 2023 Type of Finding Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement Uniform Guidance requires the reporting of costs or activities as the basis for making payments to providers. The City should have control activities for ensuring accurate reporting. Condition It was noted that there was a lack of independent review of the Community Development Block Grant reports submitted by someone who did not prepare the report. Questioned Costs None. Context While performing audit procedures, it was noted that the City does not have policies in place to ensure there is an independent review of reports. Cause The City does not have a system of internal controls in place to ensure reports are reviewed by an independent person who did not prepare the report. Effect Grant expenditures could be over or under-reported and not detected by City personnel. Repeat Finding No Recommendation We recommend the City implement procedures to ensure that someone knowledgeable of the grant requirements reviews the prepared report prior to submission. View of Responsible Officials There is no disagreement with the finding.