FAC Explorer

Audit 302016

FY End
2023-06-30
Total Expended
$3.44M
Findings
6
Programs
2
Organization: City of Tucker, Georgia (GA)
Year: 2023 Accepted: 2024-04-01
Auditor: Nichols Cauley & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391538 2023-001 - - I
391539 2023-002 - - L
391540 2023-003 Material Weakness - P
967980 2023-001 - - I
967981 2023-002 - - L
967982 2023-003 Material Weakness - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.29M Yes 3
20.205 Highway Planning and Construction $157,680 - 0

Contacts

Name Title Type
ZBUQAN3GD2C1 Beverly Hilton Auditee
4704810206 Tammy Galvis Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures on Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the Board's financial statements. The schedule has been prepared in conformity with the accounting prescribed or permitted by Georgia Department of Public Health (DPH). Expenditures are recognized following the applicable cost principles contained in either Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) or the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Board has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting which is described in Note 1C to the City’s basic financial statements. Expenditures are recognized following the applicable cost principles contained in either Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) or the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rates Accounting Policies: The accompanying Schedule of Expenditures on Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the Board's financial statements. The schedule has been prepared in conformity with the accounting prescribed or permitted by Georgia Department of Public Health (DPH). Expenditures are recognized following the applicable cost principles contained in either Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) or the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Board has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Relationship to Federal Financial Reports Accounting Policies: The accompanying Schedule of Expenditures on Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1C to the Board's financial statements. The schedule has been prepared in conformity with the accounting prescribed or permitted by Georgia Department of Public Health (DPH). Expenditures are recognized following the applicable cost principles contained in either Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) or the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Board has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports.

Finding Details

Finding 2023-001
Criteria: Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition/Effect: The City did not have documentation verifying that the contractor associated with one material contract tested, was not suspended or debarred. Costs totaling $306,186 related to this contract were charged to the program for the fiscal year. Auditor's Recommendation: The City should review requirements relating to contract awards where federal funding will be used and implement procedures to retain acceptable documentation of verification that the contractor has not been suspended or debarred. Views of Responsible Officials and Planned Corrective Actions: The Finance Department personnel will carefully review vendor status in the System for Award Management and produce documentation of eligibility for use of Federal Funds before procurement of goods and services.
Finding 2023-002
Criteria: The State and Local Fiscal Recovery Funds reporting guidance requires program and performance reporting to build public awareness, increase accountability, and monitor compliance of eligible uses. Condition: Costs reported on the 3/31/2023 and 6/30/2023 quarterly Project and Expenditure report submissions did not reconcile with amounts charged to the program for the period. Cause/Effect: Key line item amounts do not reconcile to amounts reported for the period. Auditor's Recommendation: The City should develop procedures to ensure that financial information relating to the program is identified timely and reported appropriately. Views of Responsible Officials and Planned Corrective Actions: The City disagrees with the finding. A project was determined to be ineligible and was adjusted accordingly in the third quarter report due October 30, 2023. The original first quarter submission report did not tie to the balance after the entries were made to reclass the expenditures. Staff was not able to recreate the report from the first quarter to tie to the ending balances charged to the fund as of June 30, 2023. When the original first quarter report was filed, the financial system expenditure reports reconciled to what was submitted. Finance Department personnel have established procedures to prevent the need for corrections and resubmissions to prior period quarterly Project and Expenditure submissions and will properly document the changes for verification if corrections occur.
Finding 2023-003
Criteria: The City has internal control procedures that require specific approvals of pay rates and timesheets that will be used in generating payroll. Condition/Effect: The City did not follow it’s internal policies for 7 of 25 payroll transactions selected for testing. Certain payroll transactions processed had not been approved properly. Auditor's Recommendation: The City should review internal control procedures with those responsible for the approval of pay rates and timesheets. Views of Responsible Officials and Planned Corrective Actions: The Finance Department has implemented the use of electronic timekeeping that has established supervisory approvals that must occur before timesheets are submitted.
Finding 2023-001
Criteria: Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition/Effect: The City did not have documentation verifying that the contractor associated with one material contract tested, was not suspended or debarred. Costs totaling $306,186 related to this contract were charged to the program for the fiscal year. Auditor's Recommendation: The City should review requirements relating to contract awards where federal funding will be used and implement procedures to retain acceptable documentation of verification that the contractor has not been suspended or debarred. Views of Responsible Officials and Planned Corrective Actions: The Finance Department personnel will carefully review vendor status in the System for Award Management and produce documentation of eligibility for use of Federal Funds before procurement of goods and services.
Finding 2023-002
Criteria: The State and Local Fiscal Recovery Funds reporting guidance requires program and performance reporting to build public awareness, increase accountability, and monitor compliance of eligible uses. Condition: Costs reported on the 3/31/2023 and 6/30/2023 quarterly Project and Expenditure report submissions did not reconcile with amounts charged to the program for the period. Cause/Effect: Key line item amounts do not reconcile to amounts reported for the period. Auditor's Recommendation: The City should develop procedures to ensure that financial information relating to the program is identified timely and reported appropriately. Views of Responsible Officials and Planned Corrective Actions: The City disagrees with the finding. A project was determined to be ineligible and was adjusted accordingly in the third quarter report due October 30, 2023. The original first quarter submission report did not tie to the balance after the entries were made to reclass the expenditures. Staff was not able to recreate the report from the first quarter to tie to the ending balances charged to the fund as of June 30, 2023. When the original first quarter report was filed, the financial system expenditure reports reconciled to what was submitted. Finance Department personnel have established procedures to prevent the need for corrections and resubmissions to prior period quarterly Project and Expenditure submissions and will properly document the changes for verification if corrections occur.
Finding 2023-003
Criteria: The City has internal control procedures that require specific approvals of pay rates and timesheets that will be used in generating payroll. Condition/Effect: The City did not follow it’s internal policies for 7 of 25 payroll transactions selected for testing. Certain payroll transactions processed had not been approved properly. Auditor's Recommendation: The City should review internal control procedures with those responsible for the approval of pay rates and timesheets. Views of Responsible Officials and Planned Corrective Actions: The Finance Department has implemented the use of electronic timekeeping that has established supervisory approvals that must occur before timesheets are submitted.