Audit 291427

FY End
2023-06-30
Total Expended
$2.87M
Findings
4
Programs
4
Organization: City of Nicholasville, Kentucky (KY)
Year: 2023 Accepted: 2024-02-21

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
369960 2023-002 - - L
369961 2023-003 Significant Deficiency - L
946402 2023-002 - - L
946403 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.77M Yes 2
97.083 Staffing for Adequate Fire and Emergency Response (safer) $39,600 - 0
20.205 Highway Planning and Construction $28,884 - 0
97.044 Assistance to Firefighters Grant $9,764 - 0

Contacts

Name Title Type
UANSEJ6PBYP7 Laurie Young Auditee
8598859473 Ryan Adams Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Note 1: Basis of Presentation The accompanying schedule of expenditures of federal aw ards includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance w ith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Aw ards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the basic financial statements may differ from these numbers. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10 percent de minimis cost rate as allow ed under the Uniform Guidance. The accompanying schedule of expenditures of federal aw ards includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance w ith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Aw ards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the basic financial statements may differ from these numbers.
Title: Note 2: Indirect Cost Rates Accounting Policies: Note 1: Basis of Presentation The accompanying schedule of expenditures of federal aw ards includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance w ith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Aw ards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the basic financial statements may differ from these numbers. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10 percent de minimis cost rate as allow ed under the Uniform Guidance. The City did not elect to use the 10 percent de minimis cost rate as allow ed under the Uniform Guidance.
Title: Note 3: Subrecipients Accounting Policies: Note 1: Basis of Presentation The accompanying schedule of expenditures of federal aw ards includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance w ith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Aw ards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the basic financial statements may differ from these numbers. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10 percent de minimis cost rate as allow ed under the Uniform Guidance. The City did not pass through any funds to subrecipients.
Title: Note 4: Contingencies Accounting Policies: Note 1: Basis of Presentation The accompanying schedule of expenditures of federal aw ards includes the federal grant activity of the City and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance w ith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Aw ards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of, the basic financial statements may differ from these numbers. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10 percent de minimis cost rate as allow ed under the Uniform Guidance. The aw ard revenues received and expended are subject to audit and adjustment. If any expenditures are disallow ed by the grantor as a result of such an audit, any claimfor reimbursement to the grantor w ould become a liability of the City. In the opinion of management, all grant expenditures are in compliance w ith the terms of the grant agreements and applicable federal law s and regulations.

Finding Details

Condition: The annual compliance report excluded certain current period expenditures. Criteria: The program requires an annual compliance report including a total of all current period expenditures. Cause: Accounting’s records were not used as the data source for the report. Effect: The current expenditures in the annual compliance report were understated. Context: Only an annual report is required under the program for the City. The auditor selected the annual report for testing. Recommendation: The annual compliance report should be reconciled to the general ledger and include all current period expenditures based on the date when goods and services were provided. Changes and revisions to the previously filed annual report will need to be reflected in the next annual report due April 30, 2024.
Condition: The annual compliance report was not reviewed and approved by someone with sufficient knowledge to correct any errors. Criteria: The annual report should be reviewed by someone prior to submission to correct any errors. Cause: The control was not in place during the fiscal year ended June 30, 2023. Effect: Errors in the annual report submitted during the year ended June 30, 2023, were undetected prior to submission. Context: Only an annual report is required under the program for the City. The auditor selected the annual report for testing. Recommendation: The annual report should be reviewed and approved by someone who can ensure that the report has been accurately prepared. Evidence of review and approval should be documented.
Condition: The annual compliance report excluded certain current period expenditures. Criteria: The program requires an annual compliance report including a total of all current period expenditures. Cause: Accounting’s records were not used as the data source for the report. Effect: The current expenditures in the annual compliance report were understated. Context: Only an annual report is required under the program for the City. The auditor selected the annual report for testing. Recommendation: The annual compliance report should be reconciled to the general ledger and include all current period expenditures based on the date when goods and services were provided. Changes and revisions to the previously filed annual report will need to be reflected in the next annual report due April 30, 2024.
Condition: The annual compliance report was not reviewed and approved by someone with sufficient knowledge to correct any errors. Criteria: The annual report should be reviewed by someone prior to submission to correct any errors. Cause: The control was not in place during the fiscal year ended June 30, 2023. Effect: Errors in the annual report submitted during the year ended June 30, 2023, were undetected prior to submission. Context: Only an annual report is required under the program for the City. The auditor selected the annual report for testing. Recommendation: The annual report should be reviewed and approved by someone who can ensure that the report has been accurately prepared. Evidence of review and approval should be documented.