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.