EIN: 936002121
UEI: M1MKENB4PX54
Data as of August 26, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 6, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 6, 2025 (355 days ago).
What is a management decision? →Condition and criteria: The City is required to file and annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. The reporting discussed tranche 2 funds received in some of the narratives but not in the obligations or revenue loss sections, which should be included in the reports. Cause: There were several changes in staff during the year and the staff that filed the March 2023 report was new to the process. Staff relied on the prior year reporting, which was also did not meet regulatory requirements. The grant has a wide latitude on allowable costs and management changed their decision on costs charged to the grant causing further difficulties in reporting.
Show full finding ▾Hide full finding ▴Condition and criteria: The City is required to file and annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. The reporting discussed tranche 2 funds received in some of the narratives but not in the obligations or revenue loss sections, which should be included in the reports. Cause: There were several changes in staff during the year and the staff that filed the March 2023 report was new to the process. Staff relied on the prior year reporting, which was also did not meet regulatory requirements. The grant has a wide latitude on allowable costs and management changed their decision on costs charged to the grant causing further difficulties in reporting.
Major Federal Award Programs Audit Material Weakness #2023-006 Condition and criteria: The City is required to file an annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. The reporting discussed tranche two funds received in some of the narratives but not in the obligations or revenue loss sections, which should be included in the reports. Cause: There were several changes in staff during the year and the staff that filed the March 2023 report was new to the process. Staff relied on the prior year’s reporting, which also did not meet regulatory requirements. The grant has a wide latitude on allowable costs and management changed their decision on costs charged to the grant causing further difficulties in reporting. Auditor’s recommendation: We recommend that the City only report funds actually incurred as expenditures in future reports, and we recommend additional training for staff reporting under this grant. We also recommend that the City review the intended spending of the remaining funds and to have an updated spending plan approved by Council. Management’s Plan of Action Management concurs with the auditor’s recommendations and future CSLFRF reports will be based on the amounts actually expended. The City has committed all the remaining funds as required by the ARPA deadlines. Anticipated Completion Date: December 31, 2024 Name and Title of Responsible Person: Jeanie Dexter, Finance Director Prepared by: Jeanie Dexter, Finance Director Dated 2/20/25
2022-007
FAC accepted this audit on March 15, 2023 — management decision was due September 15, 2023.
US DEPARTMENT OF THE TREASURY Coronavirus State and Local Fiscal Recovery Funds (ARPA) CFDA #21.027 Significant Deficiency 2022-007 Condition and criteria: The City is required to file and annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. Cause: The City relied on their interpretation of the regulations based on training they received when preparing the report, which differs from the auditor?s interpretation. Auditor?s recommendation: We recommend that the City only report funds actually incurred as expenditures in future reports and investigate whether an amended report should be filed. Management?s response: The city sent accounting staff to training regarding grant reporting, and the city in turn followed the documented training provided. This training specific to grant reporting appears to be incomplete. By June 30, 2022, American Rescue Plan Act funds allocated to the general fund were spent for qualified uses. ARPA funds that were transferred to the Enterprise funds were not spent by June 30, 2022 and is recorded as unearned revenue in the financial statements. The city will only report funds actually spent as expenditures and will investigate the possibility of filing an amended report.
Show full finding ▾Hide full finding ▴US DEPARTMENT OF THE TREASURY Coronavirus State and Local Fiscal Recovery Funds (ARPA) CFDA #21.027 Significant Deficiency 2022-007 Condition and criteria: The City is required to file and annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. Cause: The City relied on their interpretation of the regulations based on training they received when preparing the report, which differs from the auditor?s interpretation. Auditor?s recommendation: We recommend that the City only report funds actually incurred as expenditures in future reports and investigate whether an amended report should be filed. Management?s response: The city sent accounting staff to training regarding grant reporting, and the city in turn followed the documented training provided. This training specific to grant reporting appears to be incomplete. By June 30, 2022, American Rescue Plan Act funds allocated to the general fund were spent for qualified uses. ARPA funds that were transferred to the Enterprise funds were not spent by June 30, 2022 and is recorded as unearned revenue in the financial statements. The city will only report funds actually spent as expenditures and will investigate the possibility of filing an amended report.
Management will report only expended grant funds on all future reporting. Furthermore, management is pursuing the possibility of amending the initial filing report of April 2022 for Coronavirus State and Local Fiscal Recovery Funds (ARPA) CFDA #21.027. Baker City has an upcoming second reporting to CSLFRF as of April 30, 2023, and will report only expended funds at that time.
FAC accepted this audit on May 27, 2021 — management decision was due November 27, 2021.
The City?s financial reporting process is heavily dependent on the Finance Director, who we believe has the requisite skill, knowledge and expertise to prepare the City?s financial statements. However, the City does not have additional personnel who also have sufficient requisite expertise to participate in the financial close and reporting process and therefore provide a proper internal control structure of review for the timely completion of the financial statement close and reporting process. Criteria: The City should have accounting staff with the necessary skills, knowledge, and expertise to facilitate a control structure where there is adequate review of the financial close and reporting process. The result of this environment would be the timely preparation of financial statements in compliance with Generally Accepted Accounting Principles (GAAP). Effect: As a result of the above finding, several changes were made to the draft financial statements during the course of audit work and the City does not have a fully functioning internal control environment.Recommendation: We recommend that the City evaluate the desired output of the accounting department and match the structure, staffing and technology to meet that output. At a minimum, the City needs to identify a resource, either internally or outsourced, with requisite expertise to allow for the separation of the preparation and review process with regard to financial close and reporting. We also recommend that the City ensure the proper staffing of the accounting department to ensure the timely preparation of those financial statements. Cause: The City has not maintained an accounting department, which includes staff, structure and technology, that meets the needs of the City?s complexity and regulatory compliance requirements.
Show full finding ▾Hide full finding ▴Finding 2020-001: Significant Deficiency ? Financial Close and Reporting Process: Condition: The City?s financial reporting process is heavily dependent on the Finance Director, who we believe has the requisite skill, knowledge and expertise to prepare the City?s financial statements. However, the City does not have additional personnel who also have sufficient requisite expertise to participate in the financial close and reporting process and therefore provide a proper internal control structure of review for the timely completion of the financial statement close and reporting process. Criteria: The City should have accounting staff with the necessary skills, knowledge, and expertise to facilitate a control structure where there is adequate review of the financial close and reporting process. The result of this environment would be the timely preparation of financial statements in compliance with Generally Accepted Accounting Principles (GAAP). Effect: As a result of the above finding, several changes were made to the draft financial statements during the course of audit work and the City does not have a fully functioning internal control environment.Recommendation: We recommend that the City evaluate the desired output of the accounting department and match the structure, staffing and technology to meet that output. At a minimum, the City needs to identify a resource, either internally or outsourced, with requisite expertise to allow for the separation of the preparation and review process with regard to financial close and reporting. We also recommend that the City ensure the proper staffing of the accounting department to ensure the timely preparation of those financial statements. Cause: The City has not maintained an accounting department, which includes staff, structure and technology, that meets the needs of the City?s complexity and regulatory compliance requirements.
City?s Response: We concur with the auditor?s finding. During the fiscal year starting July 1, 2021, there will be a new City Finance Director. Additionally, we plan to emphasis training our current staff to use appropriate outsourcing with the goal of completing the annual financial close and annual financial reporting in a timely manner.
FAC accepted this audit on April 22, 2019 — management decision was due October 22, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2017-001
FAC accepted this audit on March 15, 2018 — management decision was due September 15, 2018.
GSA_MIGRATION
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