Audit 308321

FY End
2023-09-30
Total Expended
$1.77M
Findings
2
Programs
5
Organization: City of Prichard (AL)
Year: 2023 Accepted: 2024-06-06
Auditor: Moody & Company

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
400184 2023-002 Significant Deficiency - B
976626 2023-002 Significant Deficiency - B

Contacts

Name Title Type
JPNCKA5KKUJ5 Kim Wilson Auditee
2514527800 James R. Moody 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 awards includes the federal grant activity of the City of Prichard, 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. Cose of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The Housing Authority did not elect to use the 10% De Minimus Cost Rate. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3: INDIRECT COST RATE - The City of Prichard, Alabama does not use a negotiated indirect cost rate and has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the deminimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Anniston, 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. Cose of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The Housing Authority did not elect to use the 10% De Minimus Cost Rate.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: NOTE 1: BASIS OF PRESENTATION -The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Prichard, 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. Cose of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The Housing Authority did not elect to use the 10% De Minimus Cost Rate. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3: INDIRECT COST RATE - The City of Prichard, Alabama does not use a negotiated indirect cost rate and has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the deminimis cost rate. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Cost Rate Accounting Policies: NOTE 1: BASIS OF PRESENTATION -The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Prichard, 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. Cose of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The Housing Authority did not elect to use the 10% De Minimus Cost Rate. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3: INDIRECT COST RATE - The City of Prichard, Alabama does not use a negotiated indirect cost rate and has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the deminimis cost rate. The City of Prichard, Alabama does not use a negotiated indirect cost rate and has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

2023-002: Duplicate Payment; CFDA Number: 21.027, American Rescue Plan; CONDITION AND CRITERIA: An adequate internal control system should include a system of checks and balances to ensure proper payment to vendors. During the current year audit, it was noted that a vendor inadvertently received a duplicate payment in the amount of $195,500. TYPE OF FINDING: Significant Deficiency CAUSE: The internal control structure was not adequate to prevent this deficiency. EFFECT: $195,500 was incorrectly paid to the vendor. AUDITORS' RECOMMENDATION: We recommend that the City strengthen its internal controls in relation to this issue. We also recommend that the vendor repay the money to the City.
2023-002: Duplicate Payment; CFDA Number: 21.027, American Rescue Plan; CONDITION AND CRITERIA: An adequate internal control system should include a system of checks and balances to ensure proper payment to vendors. During the current year audit, it was noted that a vendor inadvertently received a duplicate payment in the amount of $195,500. TYPE OF FINDING: Significant Deficiency CAUSE: The internal control structure was not adequate to prevent this deficiency. EFFECT: $195,500 was incorrectly paid to the vendor. AUDITORS' RECOMMENDATION: We recommend that the City strengthen its internal controls in relation to this issue. We also recommend that the vendor repay the money to the City.