Finding 371046 (2022-006)

Significant Deficiency Repeat Finding
Requirement
ABIL
Questioned Costs
-
Year
2022
Accepted
2024-02-28
Audit: 292707
Organization: City of Clearbrook (MN)

AI Summary

  • Core Issue: The City could not provide a signed grant agreement with USDA for the water and waste project.
  • Impacted Requirements: This raises concerns about compliance with grant requirements and increases the risk of non-compliance.
  • Recommended Follow-Up: The City should ensure all grant agreements are properly retained and filed to avoid future issues.

Finding Text

Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Activities Allowed and Unallowed, Allowable Costs/Cost Principles, Procurement, Suspension, and Debarment, Reporting; Criteria - To provide reasonable assurance that an entity is in compliance with grant requirements, an entity shoudl retain and file grant agreements.; Condition - The City was unable to produce a signed grant agreement between the City and USDA for their water and waste project.; Questioned Costs - None; Context - The City entered into a grant agreement with the USDA to fund their water and waste project but was not able to provide this documentation during audit.; Effect - There is an increased risk of non-compliance with grant requirements.; Cause - The City was unable to locate the signed grant.; Repeat finding - Yes. Prior audit finding 2021-007.; Recommendation - The City should retain and file all grant agreements.; Views of Responsible Officials - The City agrees with the recommendation.

Corrective Action Plan

Contact Person - Dylan Goudge, Mayor; Corrective Action Plan - The City will retain all signed grant agreements.; Completion Date - April 30, 2024

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 371044 2022-004
    Significant Deficiency Repeat
  • 371045 2022-005
    Material Weakness Repeat
  • 947486 2022-004
    Significant Deficiency Repeat
  • 947487 2022-005
    Material Weakness Repeat
  • 947488 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $3.15M
21.027 Coronavirus State and Local Fiscal Recovery Funds $28,468
20.205 Highway Planning and Construction $18,647
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $11,851