FAC Explorer

Audit 355934

FY End
2023-06-30
Total Expended
$786,815
Findings
2
Programs
1
Organization: City of Shepherdsville (KY)
Year: 2023 Accepted: 2025-05-09
Auditor: Lbmc PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560017 2023-005 Material Weakness - L
1136459 2023-005 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $786,815 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”) under programs of the federal grant for the year ended June 30, 2023. 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 Accoun􀆟ng 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 2023-005
Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date no later than nine months after the fiscal year‐end (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the deadline. Cause: The City continued to experience delays in its financial reporting and completion of audits since 2020 when the City faced staffing difficulties. 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 2023-005
Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date no later than nine months after the fiscal year‐end (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the deadline. Cause: The City continued to experience delays in its financial reporting and completion of audits since 2020 when the City faced staffing difficulties. 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.