FAC Explorer

Audit 304069

FY End
2023-09-30
Total Expended
$4.03M
Findings
2
Programs
4
Organization: City of Madison Alabama (AL)
Year: 2023 Accepted: 2024-04-22
Auditor: Warren Averett LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393862 2023-001 Significant Deficiency - L
970304 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.02M Yes 1
95.001 High Intensity Drug Trafficking Areas Program $10,766 - 0
16.607 Bulletproof Vest Partnership Program $3,065 - 0
20.600 State and Community Highway Safety $2,167 - 0

Contacts

Name Title Type
DZDHC5KEM4D7 Jonathan Howard Auditee
2562261040 Lee Parks Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Madison, Alabama and is presented on the accrual basis of accounting. The information in this schedule 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: CHOSE NOT TO. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Madison, Alabama and is presented on the accrual basis of accounting. The information in this schedule 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: REPORTING ENTITY Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Madison, Alabama and is presented on the accrual basis of accounting. The information in this schedule 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: CHOSE NOT TO. The City’s reporting entity is fully described in Note 1 to the basic financial statements.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Madison, Alabama and is presented on the accrual basis of accounting. The information in this schedule 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: CHOSE NOT TO. The City did not provide federal awards to any subrecipients during the year ended September 30, 2023.
Title: PROGRAM INCOME Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Madison, Alabama and is presented on the accrual basis of accounting. The information in this schedule 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: CHOSE NOT TO. The City did not have program income during the year ended September 30, 2023
Title: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Madison, Alabama and is presented on the accrual basis of accounting. The information in this schedule 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: CHOSE NOT TO. The City did not elect to charge a de minimis rate of 10% for federal awards.

Finding Details

Finding 2023-001
Information on the federal program: U.S. Department of the Treasury, Assistance listing # 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Criteria: 2 CFR 200.328-300 establish requirements for designing and monitoring internal controls over reporting requirements of a non-federal entity. Controls should be implemented to ensure accurate and complete reporting compliance. The Coronavirus State and Local Fiscal Recovery Funds: Overview of the Final Rule establishes the specific requirements for ARPA fund reporting. Condition: We examined the annual Project and Expenditure report required. It was not filed within 30 days of specified year end as required. Cause: There had been no fund expenditures prior to December of 2022. Annual reporting requirements for ARPA funds is at March 30 year end. The City’s controls around reporting focus on fiscal quarter end and fiscal and calendar year end. This reporting period is not in the City’s normal reporting schedule and therefore was not addressed through the controls in place. Effect: The City did not timely fulfill the related reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures surrounding grant reporting to include (at inception of each award) documentation of a schedule of reporting requirements, review, and approvals to ensure documentation is retained to support compliance requirements. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.
Finding 2023-001
Information on the federal program: U.S. Department of the Treasury, Assistance listing # 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Criteria: 2 CFR 200.328-300 establish requirements for designing and monitoring internal controls over reporting requirements of a non-federal entity. Controls should be implemented to ensure accurate and complete reporting compliance. The Coronavirus State and Local Fiscal Recovery Funds: Overview of the Final Rule establishes the specific requirements for ARPA fund reporting. Condition: We examined the annual Project and Expenditure report required. It was not filed within 30 days of specified year end as required. Cause: There had been no fund expenditures prior to December of 2022. Annual reporting requirements for ARPA funds is at March 30 year end. The City’s controls around reporting focus on fiscal quarter end and fiscal and calendar year end. This reporting period is not in the City’s normal reporting schedule and therefore was not addressed through the controls in place. Effect: The City did not timely fulfill the related reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures surrounding grant reporting to include (at inception of each award) documentation of a schedule of reporting requirements, review, and approvals to ensure documentation is retained to support compliance requirements. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.