FAC Explorer

Finding 946217 (2022-009)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2024-02-20
Audit: 291301
Organization: City of Warren (MN)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: The City lacks proper internal controls for approving federal expenditures.
  • Impacted Requirements: All federal expenditures must be approved to ensure they are allowable under federal guidelines.
  • Recommended Follow-Up: Implement policies and procedures to strengthen approval processes for federal spending.

Finding Text

Federal Program Capitalization Grants for Clean Water State Revolving Funds (AL 66.458) Capitalization Grants for Drinking Water State Revolving Funds (AL 66.468) Allowable Activities/Costs Criteria An entity should have internal controls in place to ensure all federal expenditures are allowed. Condition We tested 15 transactions for internal controls and noted 2 transactions did not have the proper approval. Questioned Costs None. Context 15 transactions were selected from a population of 17. Effect The City has an increased risk in using federal dollars on an unallowable activity/cost. Cause The City does not have sufficient controls in place to ensure all federal expenditures are being approved. Repeat Finding No. Recommendation The City should implement policies and procedures to ensure all federal expenditures are being approved to ensure allowability with federal requirements. Views of Responsible Officials The City agrees with the recommendation.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 369773 2022-008
    Significant Deficiency
  • 369774 2022-008
    Significant Deficiency
  • 369775 2022-009
    Significant Deficiency
  • 369776 2022-009
    Significant Deficiency
  • 369777 2022-010
    Material Weakness
  • 369778 2022-010
    Material Weakness
  • 946215 2022-008
    Significant Deficiency
  • 946216 2022-008
    Significant Deficiency
  • 946218 2022-009
    Significant Deficiency
  • 946219 2022-010
    Material Weakness
  • 946220 2022-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $358,340
66.458 Capitalization Grants for Clean Water State Revolving Funds $344,448
93.498 Provider Relief Fund $85,536
21.027 Coronavirus State and Local Fiscal Recovery Funds $84,803
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $62,002