FAC Explorer

Audit 290376

FY End
2023-06-30
Total Expended
$5.53M
Findings
2
Programs
5
Organization: City of Belmont (NC)
Year: 2023 Accepted: 2024-02-14
Auditor: Martin Starnes & Associates CPAS P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
367381 2023-006 Significant Deficiency - L
943823 2023-006 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $4.24M Yes 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.22M Yes 1
20.600 State and Community Highway Safety $41,834 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $23,652 - 0
10.675 Urban and Community Forestry Program $5,592 - 0

Contacts

Name Title Type
MRNRV4L4N7Z3 Jared Pyles Auditee
7049012061 Erica Brown Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. De Minimis Rate Used: N Rate Explanation: City of Belmont has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal and State grant activity of the City of Belmont under the programs of the federal government and the State of North Carolina for the year ended June 30, 2023.  The information in this SEFSA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act.  Because the Schedule presents only a selected portion of the operations of the City of Belmont, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Belmont.
Title: Summary of Significant Accounting Policies Accounting Policies: Presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. De Minimis Rate Used: N Rate Explanation: City of Belmont has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting.  Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. City of Belmont has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Loans Outstanding Accounting Policies: Presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. De Minimis Rate Used: N Rate Explanation: City of Belmont has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City of Belmont had the following loan balances outstanding at June 30, 2023 for loans that the grantor/pass-passthrough grantor has still imposed continuing compliance requirements. Loans outstanding at the beginning of the year and loans made during the year are included in the SEFSA. The balance of loans outstanding at June 30, 2023 consist of:

Finding Details

Finding 2023-006
3. Federal Award Findings and Questioned Costs Significant Deficiency, Nonmaterial Non-Compliance Reporting U.S. Department of Treasury Program name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Finding 2023-006 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that federal funds expended are properly reported to grantor. According to Part 2: Reporting Requirements of the U.S. Department of Treasury Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds, expenditures that are charged to the program should be adequately reported. Condition: Incurred expenditures were incorrectly reported at total budgeted costs for the program, instead of actual expenditures incurred for reporting period. Effect: Expenditures incurred were reported at total budgeted project cost, therefore reported expenditures were more than what was incurred by the City during reporting period. Cause: An error was made and the City reported budgeted costs for project. City internal control procedures did not catch the reporting error. Questioned Cost: The City reported more expenditures than were incurred. The reporting will be updated with the next report on or before the due date. This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: The City’s reporting should be reviewed and approved by management prior to submission to ensure accuracy of information. Name of Contact Person: Jared Pyles, Finance Director Views of Responsible Officials and Planned Corrective Actions: The City agrees with this finding and will adhere to the Corrective Action Plan in this audit report.
Finding 2023-006
3. Federal Award Findings and Questioned Costs Significant Deficiency, Nonmaterial Non-Compliance Reporting U.S. Department of Treasury Program name: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Finding 2023-006 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that federal funds expended are properly reported to grantor. According to Part 2: Reporting Requirements of the U.S. Department of Treasury Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds, expenditures that are charged to the program should be adequately reported. Condition: Incurred expenditures were incorrectly reported at total budgeted costs for the program, instead of actual expenditures incurred for reporting period. Effect: Expenditures incurred were reported at total budgeted project cost, therefore reported expenditures were more than what was incurred by the City during reporting period. Cause: An error was made and the City reported budgeted costs for project. City internal control procedures did not catch the reporting error. Questioned Cost: The City reported more expenditures than were incurred. The reporting will be updated with the next report on or before the due date. This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: The City’s reporting should be reviewed and approved by management prior to submission to ensure accuracy of information. Name of Contact Person: Jared Pyles, Finance Director Views of Responsible Officials and Planned Corrective Actions: The City agrees with this finding and will adhere to the Corrective Action Plan in this audit report.