FAC Explorer

Audit 319516

FY End
2023-09-30
Total Expended
$8.87M
Findings
2
Programs
12
Organization: City of Gadsden, Alabama (AL)
Year: 2023 Accepted: 2024-09-13
Auditor: Borland Benefield PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496754 2023-002 Material Weakness - L
1073196 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.09M Yes 0
14.218 Community Development Block Grants/entitlement Grants $1.74M Yes 1
20.507 Federal Transit_formula Grants $1.19M - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $400,000 - 0
20.219 Recreational Trails Program $168,845 - 0
20.205 Highway Planning and Construction $114,510 - 0
45.310 Grants to States $62,356 - 0
97.042 Emergency Management Performance Grants $55,804 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $25,995 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $16,089 - 0
16.607 Bulletproof Vest Partnership Program $10,934 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $2,544 - 0

Contacts

Name Title Type
GBKLQFKKMNL5 Brandon Phillips Auditee
2565494715 Charles Polmatier Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the City has met the qualifications for the respective grants. Encumbrances for purchase orders and contracts are not recorded as expenditures because the liability has not been incurred for goods received or services rendered; however, these encumbrances (if any) are reserved in the fund balances of the governmental funds. Costs incurred in programs partially funded by Federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below. De Minimis Rate Used: N Rate Explanation: n/a

Finding Details

Finding 2023-002
Criteria: Under 2 CFR 200.303, the City is required to establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Our audit procedures found that the City submitted drawdown requests to HUD for certain expenditures twice totaling $31,296. Cause: The City’s Community Development and Finance offices have experienced turnover in key positions responsible for reconciling and requesting the drawdowns during the fiscal year 2023. Training was needed for program and finance employees to fully understand the drawdown process. Effect: The City received excess funds totaling $31,296 for duplicate drawdown requests. Recommendation: We recommend that the City return the duplicate drawn funds to HUD. We recommend all drawdown requests are completed by appropriately trained employees and that all drawdowns are reviewed and approved by an appropriately personnel prior to submission to HUD. Views of Responsible Officials and Planned Corrective Action: The City agrees with this finding. The City will work with HUD to repay the duplicated funds and implement additional review and approval procedures for drawdown requests.
Finding 2023-002
Criteria: Under 2 CFR 200.303, the City is required to establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Our audit procedures found that the City submitted drawdown requests to HUD for certain expenditures twice totaling $31,296. Cause: The City’s Community Development and Finance offices have experienced turnover in key positions responsible for reconciling and requesting the drawdowns during the fiscal year 2023. Training was needed for program and finance employees to fully understand the drawdown process. Effect: The City received excess funds totaling $31,296 for duplicate drawdown requests. Recommendation: We recommend that the City return the duplicate drawn funds to HUD. We recommend all drawdown requests are completed by appropriately trained employees and that all drawdowns are reviewed and approved by an appropriately personnel prior to submission to HUD. Views of Responsible Officials and Planned Corrective Action: The City agrees with this finding. The City will work with HUD to repay the duplicated funds and implement additional review and approval procedures for drawdown requests.