VILLAGE OF SPENCER

2022-004 - Control Deficiency on Identifying the Award and Applicable Requirements Program: Building Resilient Infrastructure and Communities Criteria: The pass-through entity (the Village) must identify the award and applicable requirements to the subrecipient at the time of the subaward. Condition: The pass-through entity did not provide a signed agreement to the subrecipient detailing the information required by the Uniform Guidance. Questioned Costs: Not applicable. Context: The State agency awarding the grant to the pass-through entity was in direct contact with the subrecipient. The subrecipient was aware of the grant requirements. Effect: The absence of an agreement between the pass-through entity and the subrecipient could create confusion on who is responsible for other grant requirements. This could lead to noncompliance. Information: Isolated instance. Prior Year Finding: This was a prior year audit finding numbered 2021-004. Recommendation: The pass-through entity should obtain a signed agreement with the subrecipient detailing the information required by the Uniform Guidance. Management?s Response: At the time of this audit report, the grant period is nearly over and obtaining a signed agreement at this point would not be productive. This was a one-time grant for a large construction project and the subrecipient worked directly with the State agency on grant compliance. In the future, the Village will obtain signed agreements for pass-through grants.

2022-004 - Control Deficiency on Identifying the Award and Applicable Requirements - Contact: Paul Hensch, Administrator-Clerk-Treasurer. Completion date: N/A. The Village will considering entering into a formal control for any future pass-through grants.

2021-004

Program: Building Resilient Infrastructure and Communities Criteria: The pass-through entity must verify that the subrecipient net the Single Audit requirements of 2 CFR part 200, Subpart F, of the Uniform Guidance. Condition: The subrecipients Schedule of Expenditure of Federal Awards listed this grant under the incorrect Federal Assistance Listing Number. The pass-through entity did not identify this error. Questioned Costs: Not applicable. Context: The subrecipient complied with the single audit requirements but Schedule of Expenditures of Federal Awards and Data Collection form were filed using 97.039 rather than 97.047. Effect: The expenditures of federal awards were reported to the federal government under the wrong grant number. Information: Isolated instance. Prior Year Finding: This was a prior year audit finding numbered 2021-005. Recommendation: The pass-through entity should notify the subrecipient of the error. Management?s Response: The Village will notify the subrecipient of the error.

2022-005 - Significant Control Deficiency on Monitoring Subrecipients - Contact: Paul Hensch, Administrator-Clerk-Treasurer. Completion date: December 31, 2023. The Village will notify the subrecipient of the reporting error.

2021-005

2021-004 - Control Deficiency on Identifying the Award and Applicable Requirements Program: Building Resilient Infrastructure and Communities Criteria: The pass-through entity (the Village) must identify the award and applicable requirements to the subrecipient at the time of the subaward. Condition: The pass-through entity did not provide a signed agreement to the subrecipient detailing the information required by the Uniform Guidance. Questioned Costs: Not applicable. Context: The State agency awarding the grant to the pass-through entity was in direct contact with the subrecipient. The subrecipient was aware of the grant requirements. Effect: The absence of an agreement between the pass-through entity and the subrecipient could create confusion on who is responsible for other grant requirements. This could lead to noncompliance. Information: Isolated instance. Prior Year Finding: This was not a prior year finding. Recommendation: The pass-through entity should obtain a signed agreement with the subrecipient detailing the information required by the Uniform Guidance. Management?s Response: At the time of this audit report, the grant period is nearly over and obtaining a signed agreement at this point would not be productive. This was a one-time grant for a large construction project and the subrecipient worked directly with the State agency on grant compliance. In the future, the Village will obtain signed agreements for pass-through grants.

2021-004 - Control Deficiency on Identifying the Award and Applicable Requirements - Contact: Paul Hensch, Administrator-Clerk-Treasurer. Completion date: N/A. The Village will considering entering into a formal control for any future pass-through grants.

2021-005 - Control Deficiency on Monitoring Subrecipients Program: Building Resilient Infrastructure and Communities Criteria: The pass-through entity must verify that the subrecipient net the Single Audit requirements of 2 CFR part 200, Subpart F, of the Uniform Guidance. Condition: The subrecipients Schedule of Expenditure of Federal Awards listed this grant under the incorrect Federal Assistance Listing Number. The pass-through entity did not identify this error. Questioned Costs: Not applicable. Context: The subrecipient complied with the single audit requirements but Schedule of Expenditures of Federal Awards and Data Collection form were filed using 97.039 rather than 97.047. Effect: The expenditures of federal awards were reported to the federal government under the wrong grant number. Information: Isolated instance. Prior Year Finding: This was not a prior year finding. Recommendation: The pass-through entity should notify the subrecipient of the error. Management?s Response: The Village will notify the subrecipient of the error.

2021-005 - Significant Control Deficiency on Monitoring Subrecipients - Contact: Paul Hensch, Administrator-Clerk-Treasurer. Completion date: December 31, 2022. The Village will notify the subrecipient of the reporting error.