Finding 1095922 (2020-008)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2020
Accepted
2025-01-16
Audit: 338448
Organization: City of Brandon (IA)

AI Summary

  • Core Issue: The City of Brandon failed to submit required financial reports to the U.S. Department of Agriculture.
  • Impacted Requirements: Compliance with Uniform Guidance, Part 200.303, which mandates effective internal controls and timely reporting.
  • Recommended Follow-up: Establish clear policies and procedures to ensure timely submission of all required reports.

Finding Text

Reporting Requirements Criteria – The Uniform Guidance, Part 200.303, requires the auditee establish and maintain effective internal control over the federal award which provides reasonable assurance the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms of the federal award. The City is required to submit a Statement of Budget, Income and Equity along with a Balance Sheet to the U.S. Department of Agriculture. In lieu of this, audited financial statements can be provided. Condition – The City of Brandon did not submit a Statement of Budget, Income and Equity as well as a Balance Sheet, to the U.S. Department of Agriculture. Nor did the City submit audited financial statements in lieu of this requirement. Cause – City procedures have not been established to ensure the report was submitted as required.Effect – The lack of established policies and procedures resulted in the City’s lack of timely submission of the required reports. Recommendation – The City should establish policies and procedures to ensure reports are submitted timely in accordance with reporting requirements. Response and Corrective Action Planned – City officials understand a previous clerk was supposed to have gotten this audit done right away. However, this was not done. As soon as current City officials received an email from the USDA, the process of trying to get the audit done was started. Now, finally, we are almost finished, and this will no longer be an issue. Conclusion – Response accepted.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519480 2020-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $664,938
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $208,609