Finding 204830 (2022-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 174148
Organization: City of Clinton (MN)

AI Summary

  • Core Issue: The City failed to submit required annual budget and cash flow statements on time, leading to noncompliance with federal grant reporting requirements.
  • Impacted Requirements: The grant agreement mandates timely completion of reports, which the City did not meet due to a lack of procedures and experience.
  • Recommended Follow-Up: Implement procedures to ensure all required reports are prepared and submitted accurately and on time.

Finding Text

2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Numbers and Year: CPAP0000001243051 - 2022, CPAP0000001243052 ? 2022 Award Period: January 1, 2022 to December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Reporting Procedures Criteria or Specific Requirement: The grant agreement specifies reporting requirements. Condition: The annual budget and projected cash flow statements required by the grant agreement were not completed timely. The City does not have procedures in place to ensure required reports under the Transparency Act are prepared and submitted. Questioned Costs: None. Context: The City does not have procedures to ensure the reports required are being completed timely. Cause: The City does not have experience with the requirements of the federal grant. Effect: Noncompliance with reporting requirements. Repeat Finding: Yes ? 2021-007. Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. View of Responsible Official: There is no disagreement with the finding.

Corrective Action Plan

Water and Waste Disposal Systems for Rural Communities ? Assistance Listing No. 10.760 Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to the Finding: The City will adopt procedures and work with federal agencies to ensure accurate and timely reporting. Official Responsible for Corrective Action: Kari Wiegman, City Clerk/Treasurer. Planned Completion Date for Corrective Action Plan: December 31, 2023.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 204829 2022-005
    Material Weakness Repeat
  • 781271 2022-005
    Material Weakness Repeat
  • 781272 2022-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $3.09M
97.044 Assistance to Firefighters Grant $186,095