FAC Explorer

Audit 353467

FY End
2024-06-30
Total Expended
$2.10M
Findings
2
Programs
5
Organization: Pocomoke City, Maryland (MD)
Year: 2024 Accepted: 2025-04-11
Auditor: Pks & Company P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554904 2024-001 Significant Deficiency - P
1131346 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $823,405 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $584,694 Yes 1
10.766 Community Facilities Loans and Grants $271,000 - 0
14.218 Community Development Block Grants/entitlement Grants $16,558 - 0
93.366 State Actions to Improve Oral Health Outcomes and Partner Actions to Improve Oral Health Outcomes $5,839 - 0

Contacts

Name Title Type
SAHHX46L56J6 Brandy Matthews Auditee
4109571333 Lindsay Jester Auditor
No contacts on file

Notes to SEFA

Title: LOANS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Pocomoke City, Maryland under programs of the federal government for the year ended June 30, 2024. The information presented in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in assets, or cash flows of the Town. 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. Pass-through entity identifying numbers are presented where available. The City provided no federal funds to subrecipients during the year.The City has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Not applicable For purposes of the schedule of expenditures of federal awards, the value of federal expenditures in the form of loans is calculated as the sum of the balance of loans from previous years for which the Federal Government imposes continuing compliance requirements plus the value of new loans received during the fiscal year. The Town has been awarded a loan of $1,056,000 from the U.S. Department of Agriculture (USDA) for upgrades to the pump station. As of June 30, 2024, outstanding Federal loans with continuing compliance requirements were $862,869.

Finding Details

Finding 2024-001
Finding: 2024-001 – The City lacked proper documentation to support certain financial transactions and decisions. Criteria: Proper documentation should be maintained for all financial transactions. In addition, minutes should be taken and kept on file for all meetings of the Mayor and Council and City commissions. Condition: City personnel were unable to locate copies of minutes for all Mayor and Council meeting held during the year and through the completion of our audit work. In addition, the minutes posted to the City’s website were not up-to-date. They were also unable to obtain proper supporting documentation for certain expenditures and employee expense reimbursements. Cause: During the year, the City had numerous changes in accounting and other personnel including the finance director, City manager, and accounts payable clerk. Effect or potential effect: Lack of policies and procedures for filing and document retention may result in lost records, failure to comply with laws, contracts, or grants, and operational inefficiency. Recommendation: The City should establish clear policies and procedures for document retention and ensure all employees are trained on these policies. In addition, a checklist can be developed for required documents for each type of transaction. Responsible Official’s Response: Management will review its procedures and policies related to documentation.
Finding 2024-001
Finding: 2024-001 – The City lacked proper documentation to support certain financial transactions and decisions. Criteria: Proper documentation should be maintained for all financial transactions. In addition, minutes should be taken and kept on file for all meetings of the Mayor and Council and City commissions. Condition: City personnel were unable to locate copies of minutes for all Mayor and Council meeting held during the year and through the completion of our audit work. In addition, the minutes posted to the City’s website were not up-to-date. They were also unable to obtain proper supporting documentation for certain expenditures and employee expense reimbursements. Cause: During the year, the City had numerous changes in accounting and other personnel including the finance director, City manager, and accounts payable clerk. Effect or potential effect: Lack of policies and procedures for filing and document retention may result in lost records, failure to comply with laws, contracts, or grants, and operational inefficiency. Recommendation: The City should establish clear policies and procedures for document retention and ensure all employees are trained on these policies. In addition, a checklist can be developed for required documents for each type of transaction. Responsible Official’s Response: Management will review its procedures and policies related to documentation.