Finding 1073808 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-09-19
Audit: 320112
Organization: City of Waterloo (WI)

AI Summary

  • Core Issue: The City of Waterloo failed to submit its annual single audit report on time for the fiscal year ending December 31, 2022.
  • Impacted Requirements: This non-compliance with the Single Audit Act and the USDA agreement could lead to delays in future audits.
  • Recommended Follow-Up: The City should create a compliance checklist for federal grants, ensuring all requirements and deadlines are tracked and verified by a second individual.

Finding Text

Criteria: Per the Single Audit Act and terms of the Wastewater Treatment Facility (WWTF) upgrades agreement between the United States Department of Agriculture (USDA) and the City of Waterloo (the City), dated as of June 23, 2021, Section 33, an annual audit is required if the City expended $750,000 or more in Federal financial assistance per fiscal year. The audit prepared by an independent licensed Certified Public Accountant or a State or Federal auditor, if allowed by the State, must be submitted within 9 months of the City fiscal year. Condition: For the fiscal year ending December 31, 2022, the City did not submit an annual single audit report within nine months of year-end. Cause: The City did not have a process in place to track all Federal financial assistance by fiscal year and identify and track reporting provisions of the agreement, resulting in the annual single audit not being prepared within the specified deadline. Effect: Non-compliance with the Single Audit Act and agreement provisions could result in a delay in the single audit. Questioned Costs: None noted Recommendation: The City should develop a compliance checklist for each federal grant agreement that outlines the various requirements and the applicable deadlines. The compliance checklist should be reviewed by a second individual for accuracy. Management Response: Estimated project costs called for not meeting the single audit spend threshold for 2022, requirements were not reassessed until the 2023 single audit where it was recognized that we did meet the spend threshold for single audit in 2022. Management has better knowledge of the requirements of the single audit requirements and proper procedure should be followed in the future years. Anticipated Completion Date: End of 2023 fiscal year.

Categories

Reporting Special Tests & Provisions

Other Findings in this Audit

  • 497366 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $996,562