Audit 296327

FY End
2023-08-31
Total Expended
$7.27M
Findings
6
Programs
7
Organization: City of Mandeville, Louisiana (LA)
Year: 2023 Accepted: 2024-03-21
Auditor: Eisneramper LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
382736 2023-007 Material Weakness - P
382737 2023-007 Material Weakness - P
382738 2023-007 Material Weakness - P
959178 2023-007 Material Weakness - P
959179 2023-007 Material Weakness - P
959180 2023-007 Material Weakness - P

Contacts

Name Title Type
RMAMN9B8MXS7 Kathleen Sides Auditee
9856243101 Don McLean Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - General Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards. De Minimis Rate Used: N Rate Explanation: During the year ended August 31, 2023, the City did not elect to use the 10% de minimus cost rate as covered in §200.414 of the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the City of Mandeville (the "City"). The City reporting entity is defined in Note 1 to the City's financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, is included on the schedule.
Title: Note 2 - Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards. De Minimis Rate Used: N Rate Explanation: During the year ended August 31, 2023, the City did not elect to use the 10% de minimus cost rate as covered in §200.414 of the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards.
Title: Note 3 - Relationship to Financial Statements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards. De Minimis Rate Used: N Rate Explanation: During the year ended August 31, 2023, the City did not elect to use the 10% de minimus cost rate as covered in §200.414 of the Uniform Guidance. Federal awards expenditures are reported in the City's financial statements as follows: Governmental funds intergovernmental revenue $ 620,856 Proprietary funds intergovernmental revenue 95,424 Total intergovernmental revenues $ 716,280 Less: State and local intergovernmental revenue (411,500) FEMA Disaster - revenues since expenditures are reported once approved / obligated 613,429 Miscellaneous recorded as revenue in current year with expenditures in the prior year (52,976) Plus: Disaster fund - Project DR-4611 expenditures 6,408,789 Total adjustments 6,557,742 Total Schedule of Expenditures of Federal Awards $ 7,274,022. See the notes to the SEFA for chart/table
Title: Note 4 - Relationship to Federal Financial Reports Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards. De Minimis Rate Used: N Rate Explanation: During the year ended August 31, 2023, the City did not elect to use the 10% de minimus cost rate as covered in §200.414 of the Uniform Guidance. Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with accounting principles generally accepted in the United States of America.
Title: Note 5 - Matching Revenues Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards. De Minimis Rate Used: N Rate Explanation: During the year ended August 31, 2023, the City did not elect to use the 10% de minimus cost rate as covered in §200.414 of the Uniform Guidance. For those funds that have matching revenues and state funding, federal expenditures were determined by deducting matching revenues from total expenditures.
Title: Note 7 - Amounts passed through to Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards. De Minimis Rate Used: N Rate Explanation: During the year ended August 31, 2023, the City did not elect to use the 10% de minimus cost rate as covered in §200.414 of the Uniform Guidance. During the year ended August 31, 2023, the City did not pass through any federal funding to subrecipients.
Title: Note 8 - Disaster Grants - Public Assistance Listing 97.036 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City's financial statements or under specific reporting methods required by certain awards. De Minimis Rate Used: N Rate Explanation: During the year ended August 31, 2023, the City did not elect to use the 10% de minimus cost rate as covered in §200.414 of the Uniform Guidance. The FEMA grant expenditures are reported on the SEFA when 1) FEMA has approved the project worksheet (PW), and 2) eligible expenditures have been incurred. At August 31, 2023, FEMA approved $6,408,789 of eligible expenditures with $6,408,789 incurred at August 31, 2022.

Finding Details

PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Condition: The City did not have adequate policies and procedures in place to prepare an accurate and complete SEFA on a timely basis. Universe /Population: None Sample size: None Questioned Cost: Not applicable Cause: The City does not have adequate policies and procedures in place for SEFA preparation. Effect: The lack of completing a detailed review over the SEFA created delays in the audit and significant adjustments necessary to correct the balances to the reconciliations and other support. This created delays with completing the audit process. Adjustments of $2,998,397 were required to decrease the federal expenditure balance in the original SEFA provided by the City for the audit. Recommendation: The City should strengthen its controls including its review and approval processes over the identification of federal programs and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. View of Responsible Official: The City concurs with the finding and will comply with the recommendation
PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Condition: The City did not have adequate policies and procedures in place to prepare an accurate and complete SEFA on a timely basis. Universe /Population: None Sample size: None Questioned Cost: Not applicable Cause: The City does not have adequate policies and procedures in place for SEFA preparation. Effect: The lack of completing a detailed review over the SEFA created delays in the audit and significant adjustments necessary to correct the balances to the reconciliations and other support. This created delays with completing the audit process. Adjustments of $2,998,397 were required to decrease the federal expenditure balance in the original SEFA provided by the City for the audit. Recommendation: The City should strengthen its controls including its review and approval processes over the identification of federal programs and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. View of Responsible Official: The City concurs with the finding and will comply with the recommendation
PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Condition: The City did not have adequate policies and procedures in place to prepare an accurate and complete SEFA on a timely basis. Universe /Population: None Sample size: None Questioned Cost: Not applicable Cause: The City does not have adequate policies and procedures in place for SEFA preparation. Effect: The lack of completing a detailed review over the SEFA created delays in the audit and significant adjustments necessary to correct the balances to the reconciliations and other support. This created delays with completing the audit process. Adjustments of $2,998,397 were required to decrease the federal expenditure balance in the original SEFA provided by the City for the audit. Recommendation: The City should strengthen its controls including its review and approval processes over the identification of federal programs and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. View of Responsible Official: The City concurs with the finding and will comply with the recommendation
PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Condition: The City did not have adequate policies and procedures in place to prepare an accurate and complete SEFA on a timely basis. Universe /Population: None Sample size: None Questioned Cost: Not applicable Cause: The City does not have adequate policies and procedures in place for SEFA preparation. Effect: The lack of completing a detailed review over the SEFA created delays in the audit and significant adjustments necessary to correct the balances to the reconciliations and other support. This created delays with completing the audit process. Adjustments of $2,998,397 were required to decrease the federal expenditure balance in the original SEFA provided by the City for the audit. Recommendation: The City should strengthen its controls including its review and approval processes over the identification of federal programs and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. View of Responsible Official: The City concurs with the finding and will comply with the recommendation
PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Condition: The City did not have adequate policies and procedures in place to prepare an accurate and complete SEFA on a timely basis. Universe /Population: None Sample size: None Questioned Cost: Not applicable Cause: The City does not have adequate policies and procedures in place for SEFA preparation. Effect: The lack of completing a detailed review over the SEFA created delays in the audit and significant adjustments necessary to correct the balances to the reconciliations and other support. This created delays with completing the audit process. Adjustments of $2,998,397 were required to decrease the federal expenditure balance in the original SEFA provided by the City for the audit. Recommendation: The City should strengthen its controls including its review and approval processes over the identification of federal programs and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. View of Responsible Official: The City concurs with the finding and will comply with the recommendation
PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Condition: The City did not have adequate policies and procedures in place to prepare an accurate and complete SEFA on a timely basis. Universe /Population: None Sample size: None Questioned Cost: Not applicable Cause: The City does not have adequate policies and procedures in place for SEFA preparation. Effect: The lack of completing a detailed review over the SEFA created delays in the audit and significant adjustments necessary to correct the balances to the reconciliations and other support. This created delays with completing the audit process. Adjustments of $2,998,397 were required to decrease the federal expenditure balance in the original SEFA provided by the City for the audit. Recommendation: The City should strengthen its controls including its review and approval processes over the identification of federal programs and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. View of Responsible Official: The City concurs with the finding and will comply with the recommendation