Audit 359169

FY End
2024-09-30
Total Expended
$2.74M
Findings
2
Programs
3
Organization: City of Thomasville Alabama (AL)
Year: 2024 Accepted: 2025-06-18
Auditor: Jackson Thornton

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
565350 2024-009 Material Weakness - I
1141792 2024-009 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.13M Yes 0
14.218 Community Development Block Grants/entitlement Grants $414,403 - 0
16.607 Bulletproof Vest Partnership Program $544 - 0

Contacts

Name Title Type
R2AUG42TZ6M8 Deborah Ballard Auditee
3346373351 Katie Schmidt Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Accounting Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Thomasville, Alabama (the City) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in this schedule 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 (the Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to charge a de minimis rate of 10% for all federal awards. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Thomasville, Alabama (the City) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in this schedule 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 (the Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financial statements.
Title: Note 2 - Reporting Entity Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Thomasville, Alabama (the City) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in this schedule 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 (the Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to charge a de minimis rate of 10% for all federal awards. The basic financial statements and the schedule of expenditures of federal awards reflects the activity of the City (the primary government), and do not include all of the financial activities of the Thomasville Industrial Development Board and the Health Care Authority Corporation of the City of Thomasville, Alabama as required by accounting principles generally accepted in the United States of America. The City does not issue separate reports for these component units. Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. Southwest Alabama RSVP, Inc. and the Public Park and Recreation Board of the City of Thomasville, Alabama are considered blended components of the City due to their fiscal dependence on the City. The Water Works and Sewer Board of the City of Thomasville, Alabama is considered a blended component unit of the City because it functions, for all practical purposes, as a department of the City.
Title: Note 3 - Indirect Cost Rates Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Thomasville, Alabama (the City) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in this schedule 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 (the Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to charge a de minimis rate of 10% for all federal awards. The City did not elect to charge a de minimis rate of 10% for all federal awards.
Title: Note 4 - Prior Year Expenditures Included in the Schedule of Expenditures of Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Thomasville, Alabama (the City) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. The information in this schedule 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 (the Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to charge a de minimis rate of 10% for all federal awards. During fiscal year 2021 and 2022, the City was awarded Coronavirus State and Local Fiscal Recovery Funds grant money from the Department of Treasury (Assistance Listing No. 21.027). This grant was created as the Federal government’s response to the COVID-19 pandemic. This amount was allowed to be used as revenue replacement and the provision of government services. During fiscal year 2023, a street resurfacing project was started but no revenue was recognized as the City had not determined what the grant funds would be used for. During fiscal year 2024, the City determined that it would use all of the CSLFRF grant money for the street resurfacing project. This means that $362,872 of expenditures were incurred in the prior year. These expenditures are included on the schedule of expenditures of federal awards for the year ended September 30, 2024.

Finding Details

Identification of the Federal Program - Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027. Criteria - According to 2 CFR 200.318, recipients under a Federal award or subaward must maintain and use documented procedures for procurement transactions. These procedures must ensure full and open competition, proper oversight, and compliance with applicable regulations. The City’s procurement policy requires that all contracts exceeding $15,000 be subjected to competitive bidding and approved by the City Council before execution. This requirement ensures transparency, accountability, and proper oversight of public funds. Furthermore, the Code of Alabama § 11-43C-28 (2023) states that a record of the proceedings of every meeting of the council shall be kept, and every resolution or ordinance passed by the council must be recorded, and the record of the proceedings of the meeting shall, when approved by the council, be signed by the president of the council and the City Clerk. Condition - During the audit, a contract in the amount of $1,338,870 was identified that had undergone competitive bidding; however, there was no documentation in the City Council meeting minutes indicating that the contract had been approved by the City Council. It is unclear whether the City Council approved the contract, or if the approval was not properly documented. Cause - The is a lack of procedural oversight and inadequate documentation practices. Effect - Failure to obtain and/or document City Council approval for contracts over $15,000 increases the risk of unauthorized expenditures, potential noncompliance with procurement policies, and reduced transparency in financial decision making. This could also undermine public trust and limit oversight of municipal contracts. Additionally, noncompliance with 2 CFR 200.318 could place federal funding at risk or result in audit findings that require corrective action. Failure to follow record-keeping guidelines outlined in the Code of Alabama § 11-43C-28 (2023) further weakens transparency and accountability in municipal governance. Recommendation - The City should ensure that all contracts exceeding $15,000 are formally approved by the City Council and that such approvals are properly documented in the official meeting minutes. Additionally, the City should implement stronger controls to verify and maintain documentation of contract approvals to ensure compliance with both local procurement policies and federal regulations under 2 CFR 200.318. The City should also adhere to Code of Alabama § 11-43C-28 (2023) by maintaining complete and accurate records of City Council proceedings, including approvals of contracts, to promote transparency and accountability.
Identification of the Federal Program - Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027. Criteria - According to 2 CFR 200.318, recipients under a Federal award or subaward must maintain and use documented procedures for procurement transactions. These procedures must ensure full and open competition, proper oversight, and compliance with applicable regulations. The City’s procurement policy requires that all contracts exceeding $15,000 be subjected to competitive bidding and approved by the City Council before execution. This requirement ensures transparency, accountability, and proper oversight of public funds. Furthermore, the Code of Alabama § 11-43C-28 (2023) states that a record of the proceedings of every meeting of the council shall be kept, and every resolution or ordinance passed by the council must be recorded, and the record of the proceedings of the meeting shall, when approved by the council, be signed by the president of the council and the City Clerk. Condition - During the audit, a contract in the amount of $1,338,870 was identified that had undergone competitive bidding; however, there was no documentation in the City Council meeting minutes indicating that the contract had been approved by the City Council. It is unclear whether the City Council approved the contract, or if the approval was not properly documented. Cause - The is a lack of procedural oversight and inadequate documentation practices. Effect - Failure to obtain and/or document City Council approval for contracts over $15,000 increases the risk of unauthorized expenditures, potential noncompliance with procurement policies, and reduced transparency in financial decision making. This could also undermine public trust and limit oversight of municipal contracts. Additionally, noncompliance with 2 CFR 200.318 could place federal funding at risk or result in audit findings that require corrective action. Failure to follow record-keeping guidelines outlined in the Code of Alabama § 11-43C-28 (2023) further weakens transparency and accountability in municipal governance. Recommendation - The City should ensure that all contracts exceeding $15,000 are formally approved by the City Council and that such approvals are properly documented in the official meeting minutes. Additionally, the City should implement stronger controls to verify and maintain documentation of contract approvals to ensure compliance with both local procurement policies and federal regulations under 2 CFR 200.318. The City should also adhere to Code of Alabama § 11-43C-28 (2023) by maintaining complete and accurate records of City Council proceedings, including approvals of contracts, to promote transparency and accountability.