FAC Explorer

Audit 1899

FY End
2022-09-30
Total Expended
$13.57M
Findings
4
Programs
2
Organization: Town of Fort Mill (SC)
Year: 2022 Accepted: 2023-10-31
Auditor: Greene Finney Cauley LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
996 2022-003 Material Weakness - AB
997 2022-004 Material Weakness - L
577438 2022-003 Material Weakness - AB
577439 2022-004 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $10.52M Yes 2
66.458 Capitalization Grants for Clean Water State Revolving Funds $3.04M Yes 0

Contacts

Name Title Type
F122A6NCXU14 Eric Davis Auditee
8033960117 Larry Finney Auditor
No contacts on file

Notes to SEFA

Title: Outstanding Loan Balance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents the activity of all federal award programs of the Town of Fort Mill, South Carolina (the “Town”) for the year ended September 30, 2022. Expenditures for federal financial assistance awarded directly from the federal agencies, as well as those passed through other government agencies, are included on the Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting, which is described in the notes to the Town’s financial statements. Federal award expenditures are generally reported in the Town’s financial statements as expenditures in the General Fund and Special Revenue Funds and as expenses and/or capital assets additions in the Town’s enterprise funds. Matching costs, i.e., the non-federal share of certain program costs, are not included in the accompanying Schedule. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Capitalization Grants for Clean Water State Revolving Funds – Loan federal award amount as listed in the Schedule is comprised of a state revolving fund loan and has an outstanding balance of $33,610,437 at September 30, 2022, of which $11,514,289 is federal. Expenditures of $3,044,295 are reported in the accompany Schedule for the current year and are in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

Finding Details

Finding 2022-003
In our single audit testing a misstatement was identified related to the accounting of the Town’s Coronavirus State and Local Fiscal Recovery Fund (American Rescue Plan Act) revenues. The Town should have adequate internal controls in place to ensure that grants are properly accounted for. The Town did not initially record a receivable for the replacement of lost revenue claimed on the report to the US Department of Treasury during FY 2022. This misstatement was due to oversight by Town personnel. The Town was impacted in FY 2020 and FY 2021 by the COVID-19 pandemic which played a part in the delays as staff were stretched in performance of their job duties as they were assisting with the job duties of others who were unavailable to work; as well as additional duties brought on by federal assistance programs. The Town was also working toward better understanding and utilization of the new financial software. In FY 2022 the Town was working toward getting caught up from these delays. This error was corrected when we brought it to the Town’s attention. When transactions are not recorded properly or to the appropriate accounting period, there is a higher risk that material misstatements (due to error or fraud) will go undetected. The Town should develop a process to ensure that grants are properly recorded. The Town agrees with this finding and will adhere to the corrective action plan on page 88 in this audit report.
Finding 2022-004
In our single audit testing it was identified that the quarterly Project and Expenditure Report for quarter 1 of 2022 for the Coronavirus State and Local Fiscal Recovery Fund (American Rescue Plan Act) was not timely submitted to the US Department of Treasury. The Town should have adequate internal controls in place to ensure that grant reports are timely submitted. The Town did not timely submit the quarter 1 of 2022 Project and Expenditure Report to the US Department of Treasury during FY 2022. This was due to oversight by Town personnel. The Town was impacted in FY 2020 and FY 2021 by the COVID-19 pandemic which played a part in the delays as staff were stretched in performance of their job duties as they were assisting with the job duties of others who were unavailable to work; as well as additional duties brought on by federal assistance programs. The Town was also working toward better understanding and utilization of the new financial software. In FY 2022 the Town was working toward getting caught up from these delays. When reports for grant programs are not timely filed the Town is not in compliance with grant requirements. The Town should develop a process to ensure that grant reports are submitted timely. The Town agrees with this finding and will adhere to the corrective action plan on page 88 in this audit report.
Finding 2022-003
In our single audit testing a misstatement was identified related to the accounting of the Town’s Coronavirus State and Local Fiscal Recovery Fund (American Rescue Plan Act) revenues. The Town should have adequate internal controls in place to ensure that grants are properly accounted for. The Town did not initially record a receivable for the replacement of lost revenue claimed on the report to the US Department of Treasury during FY 2022. This misstatement was due to oversight by Town personnel. The Town was impacted in FY 2020 and FY 2021 by the COVID-19 pandemic which played a part in the delays as staff were stretched in performance of their job duties as they were assisting with the job duties of others who were unavailable to work; as well as additional duties brought on by federal assistance programs. The Town was also working toward better understanding and utilization of the new financial software. In FY 2022 the Town was working toward getting caught up from these delays. This error was corrected when we brought it to the Town’s attention. When transactions are not recorded properly or to the appropriate accounting period, there is a higher risk that material misstatements (due to error or fraud) will go undetected. The Town should develop a process to ensure that grants are properly recorded. The Town agrees with this finding and will adhere to the corrective action plan on page 88 in this audit report.
Finding 2022-004
In our single audit testing it was identified that the quarterly Project and Expenditure Report for quarter 1 of 2022 for the Coronavirus State and Local Fiscal Recovery Fund (American Rescue Plan Act) was not timely submitted to the US Department of Treasury. The Town should have adequate internal controls in place to ensure that grant reports are timely submitted. The Town did not timely submit the quarter 1 of 2022 Project and Expenditure Report to the US Department of Treasury during FY 2022. This was due to oversight by Town personnel. The Town was impacted in FY 2020 and FY 2021 by the COVID-19 pandemic which played a part in the delays as staff were stretched in performance of their job duties as they were assisting with the job duties of others who were unavailable to work; as well as additional duties brought on by federal assistance programs. The Town was also working toward better understanding and utilization of the new financial software. In FY 2022 the Town was working toward getting caught up from these delays. When reports for grant programs are not timely filed the Town is not in compliance with grant requirements. The Town should develop a process to ensure that grant reports are submitted timely. The Town agrees with this finding and will adhere to the corrective action plan on page 88 in this audit report.