FAC Explorer

Audit 353167

FY End
2021-06-30
Total Expended
$1.17M
Findings
4
Programs
1
Organization: City of Shepherdsville (KY)
Year: 2021 Accepted: 2025-04-09
Auditor: Strothman & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554503 2021-006 Material Weakness - L
554504 2021-006 Material Weakness - L
1130945 2021-006 Material Weakness - L
1130946 2021-006 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $280,124 Yes 1

Contacts

Name Title Type
VPNAF1SC5DE7 Tonya Taylor Auditee
5022151529 Jim Stevison Auditor
No contacts on file

Notes to SEFA

Title: Note A--Basis of Presentation Accounting Policies: Expenditures reported on the SEFA 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. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (“SEFA”) includes the federal grant activity of the City of Shepherdsville, Kentucky (the “City”). The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in the SEFA differ from amounts presented in, or used in the preparation, of the financial statements.
Title: Note B--Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the SEFA 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. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the SEFA 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 C--Indirect Cost Rate Accounting Policies: Expenditures reported on the SEFA 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. De Minimis Rate Used: N Rate Explanation: The City 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.

Finding Details

Finding 2021-006
2021-006 Reporting Noncompliance Federal Program: 21.019 – COVID-19 - Coronavirus Relief Fund Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 and PON21122100001304 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date nine months after the fiscal year-end. Due to COVID-19 this was extended by an additional six months (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the extended deadline. Cause: Staffing difficulties, the COVID-19 pandemic, and the lack of controls in place to ensure complete and accurate information could be provided timely delayed the single audit reporting package. Effect: The City was not in compliance with federal regulations and guidelines for the single audit submission. Recommendation: The City should implement controls for filing federal financial reports in a timely manner. Management’s Response and Planned Corrective Action: In the past few years, the city has experienced turnover in management from the City Clerk, Finance Director, and the HR Director along with being significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate procedures, and clear job duties this should no longer be an issue. The Mayor and City clerk have sent out instructions to all department heads that the documentation for all grants must be sent to the Admin Department.
Finding 2021-006
2021-006 Reporting Noncompliance Federal Program: 21.019 – COVID-19 - Coronavirus Relief Fund Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 and PON21122100001304 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date nine months after the fiscal year-end. Due to COVID-19 this was extended by an additional six months (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the extended deadline. Cause: Staffing difficulties, the COVID-19 pandemic, and the lack of controls in place to ensure complete and accurate information could be provided timely delayed the single audit reporting package. Effect: The City was not in compliance with federal regulations and guidelines for the single audit submission. Recommendation: The City should implement controls for filing federal financial reports in a timely manner. Management’s Response and Planned Corrective Action: In the past few years, the city has experienced turnover in management from the City Clerk, Finance Director, and the HR Director along with being significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate procedures, and clear job duties this should no longer be an issue. The Mayor and City clerk have sent out instructions to all department heads that the documentation for all grants must be sent to the Admin Department.
Finding 2021-006
2021-006 Reporting Noncompliance Federal Program: 21.019 – COVID-19 - Coronavirus Relief Fund Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 and PON21122100001304 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date nine months after the fiscal year-end. Due to COVID-19 this was extended by an additional six months (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the extended deadline. Cause: Staffing difficulties, the COVID-19 pandemic, and the lack of controls in place to ensure complete and accurate information could be provided timely delayed the single audit reporting package. Effect: The City was not in compliance with federal regulations and guidelines for the single audit submission. Recommendation: The City should implement controls for filing federal financial reports in a timely manner. Management’s Response and Planned Corrective Action: In the past few years, the city has experienced turnover in management from the City Clerk, Finance Director, and the HR Director along with being significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate procedures, and clear job duties this should no longer be an issue. The Mayor and City clerk have sent out instructions to all department heads that the documentation for all grants must be sent to the Admin Department.
Finding 2021-006
2021-006 Reporting Noncompliance Federal Program: 21.019 – COVID-19 - Coronavirus Relief Fund Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 and PON21122100001304 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date nine months after the fiscal year-end. Due to COVID-19 this was extended by an additional six months (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the extended deadline. Cause: Staffing difficulties, the COVID-19 pandemic, and the lack of controls in place to ensure complete and accurate information could be provided timely delayed the single audit reporting package. Effect: The City was not in compliance with federal regulations and guidelines for the single audit submission. Recommendation: The City should implement controls for filing federal financial reports in a timely manner. Management’s Response and Planned Corrective Action: In the past few years, the city has experienced turnover in management from the City Clerk, Finance Director, and the HR Director along with being significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate procedures, and clear job duties this should no longer be an issue. The Mayor and City clerk have sent out instructions to all department heads that the documentation for all grants must be sent to the Admin Department.