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St. Peter council adopts federal-award administration policy after auditors flagged reporting gaps
Summary
Council approved a policy and procedures document intended to ensure compliance with federal award reporting and single-audit requirements after city auditors flagged incomplete reporting for the 2023 audit cycle.
The St. Peter City Council on Jan. 13 approved a resolution adopting a policy and procedures manual for federal award administration aimed at ensuring compliance with federal reporting and single-audit requirements.
City finance and accounting staff told the council that auditors found the city was not in compliance during the 2023 audit completed in July 2024 and recommended improved internal controls and verification of federal-expenditure reporting. The packet and staff presentation tie the need for the policy to those audit findings.
Staff explained the practical effect: the city must prepare financial statements and schedules that show expenditures of federal awards and maintain internal controls over that reporting. The manual aligns the city’s purchasing thresholds with federal spending rules and adds federal-specific procedures so the city can accept federal funds and comply with audit requirements. City staff also noted that when a municipality receives more than $750,000 in federal awards in a year it triggers a single audit; staff cited a recent award associated with the Highway 169 interchange that placed the city under the federal audit policy for 2024.
Sally, who presented the item, told the council that adopting the policy would position the city to accept federal funds for future projects and that not adopting it could jeopardize eligibility for federal funds.
The resolution is included on page 90 of the packet; the council approved the motion by roll call.
