FAC Explorer

Audit 343240

FY End
2024-06-30
Total Expended
$4.53M
Findings
4
Programs
5
Organization: City of Newton (NC)
Year: 2024 Accepted: 2025-02-20
Auditor: Martin Starnes & Associates CPAS P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524086 2024-002 Significant Deficiency - P
524087 2024-002 Significant Deficiency - P
1100528 2024-002 Significant Deficiency - P
1100529 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $820,103 Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $14,549 - 0
66.458 Clean Water State Revolving Fund $4,916 - 0
16.922 Equitable Sharing Program $1,562 - 0
16.607 Bulletproof Vest Partnership Program $606 - 0

Contacts

Name Title Type
URNLAP5QJZ43 Kimberley Robinson Auditee
8286954270 Marcie Spivey Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the SEFSA are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: The City of Newton has elected not to use the 10% de minimums indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal and state grant activity of the City of Newton under the programs of the federal government and the state of North Carolina for the year ended June 30, 2024. The information in this SEFSA 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, and the State Single Audit Implementation Act. Because the schedule presents only a selected portion of the operations of the City of Newton, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Newton.
Title: Loans Outstanding Accounting Policies: Expenditures reported in the SEFSA are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: The City of Newton has elected not to use the 10% de minimums indirect cost rate as allowed under the Uniform Guidance. The City had the following loan balances outstanding at June 30, 2024 for loans that the grantor/pass-passthrough grantor has still imposed continuing Compliance requirements. Loans outstanding at the beginning of the year and loans made during the year are included in the SEFSA. The balance of loans outstanding at June 30, 2024 consist of:

Finding Details

Finding 2024-002
US Department of Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal AL # 21.027 Significant Deficiency Finding 2024-002 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include all required documentation and proper signatures. Condition: During our internal control test over payroll reimbursed using ARPA funds, we noted employee timesheets were not signed off by the supervisor. Effect: Controls were not functioning to ensure that documentation of timesheet review is in place. Cause: Controls were not functioning as designed. Recommendation: We recommend that management put additional controls in place to ensure that review of timesheets is documented. Name of Contact Person: Kimberley Robinson, Finance Director Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding 2024-002
US Department of Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal AL # 21.027 Significant Deficiency Finding 2024-002 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include all required documentation and proper signatures. Condition: During our internal control test over payroll reimbursed using ARPA funds, we noted employee timesheets were not signed off by the supervisor. Effect: Controls were not functioning to ensure that documentation of timesheet review is in place. Cause: Controls were not functioning as designed. Recommendation: We recommend that management put additional controls in place to ensure that review of timesheets is documented. Name of Contact Person: Kimberley Robinson, Finance Director Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding 2024-002
US Department of Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal AL # 21.027 Significant Deficiency Finding 2024-002 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include all required documentation and proper signatures. Condition: During our internal control test over payroll reimbursed using ARPA funds, we noted employee timesheets were not signed off by the supervisor. Effect: Controls were not functioning to ensure that documentation of timesheet review is in place. Cause: Controls were not functioning as designed. Recommendation: We recommend that management put additional controls in place to ensure that review of timesheets is documented. Name of Contact Person: Kimberley Robinson, Finance Director Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding 2024-002
US Department of Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal AL # 21.027 Significant Deficiency Finding 2024-002 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include all required documentation and proper signatures. Condition: During our internal control test over payroll reimbursed using ARPA funds, we noted employee timesheets were not signed off by the supervisor. Effect: Controls were not functioning to ensure that documentation of timesheet review is in place. Cause: Controls were not functioning as designed. Recommendation: We recommend that management put additional controls in place to ensure that review of timesheets is documented. Name of Contact Person: Kimberley Robinson, Finance Director Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.