FAC Explorer

Audit 360598

FY End
2024-09-30
Total Expended
$891,926
Findings
8
Programs
2
Organization: Town of Cleveland (AL)
Year: 2024 Accepted: 2025-06-30
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
568859 2024-002 Significant Deficiency - AB
568860 2024-002 Significant Deficiency - AB
568861 2024-003 Significant Deficiency - L
568862 2024-003 Significant Deficiency - L
1145301 2024-002 Significant Deficiency - AB
1145302 2024-002 Significant Deficiency - AB
1145303 2024-003 Significant Deficiency - L
1145304 2024-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $250,562 Yes 2
66.468 Drinking Water State Revolving Fund $152,506 - 0

Contacts

Name Title Type
T31VYGM8GUR7 Miranda Shirley Auditee
2052749640 Terri Faulkner Auditor
No contacts on file

Notes to SEFA

Title: Loans Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal spending of Town of Cleveland, Alabama, and is presented on the accrual basis of accounting. The amounts reported on the Schedule have been reconciled to and are in material agreement with amounts recorded in the Organization’s accounting records from which the general purpose financial statements have been reported. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Cleveland, Alabama, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Cleveland, Alabama. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimis indirect cost rate. For the year ended September 30, 2024, the Town of Cleveland, Alabama, did not elect to use this rate. The Town of Cleveland, Alabama, did not expend federal awards related to loans or loan guarantees during the year ended September 30, 2024.
Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal spending of Town of Cleveland, Alabama, and is presented on the accrual basis of accounting. The amounts reported on the Schedule have been reconciled to and are in material agreement with amounts recorded in the Organization’s accounting records from which the general purpose financial statements have been reported. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Cleveland, Alabama, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Cleveland, Alabama. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimis indirect cost rate. For the year ended September 30, 2024, the Town of Cleveland, Alabama, did not elect to use this rate. During the year ended September 30, 2024, the Town of Cleveland, Alabama, did not provide federal funds to subrecipients.
Title: Noncash Assistance and Other Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal spending of Town of Cleveland, Alabama, and is presented on the accrual basis of accounting. The amounts reported on the Schedule have been reconciled to and are in material agreement with amounts recorded in the Organization’s accounting records from which the general purpose financial statements have been reported. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Cleveland, Alabama, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Cleveland, Alabama. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimis indirect cost rate. For the year ended September 30, 2024, the Town of Cleveland, Alabama, did not elect to use this rate. The Town of Cleveland, Alabama, did not receive any noncash assistance or federally funded insurance during the year ended September 30, 2024.
Title: Contingencies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal spending of Town of Cleveland, Alabama, and is presented on the accrual basis of accounting. The amounts reported on the Schedule have been reconciled to and are in material agreement with amounts recorded in the Organization’s accounting records from which the general purpose financial statements have been reported. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Cleveland, Alabama, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Cleveland, Alabama. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimis indirect cost rate. For the year ended September 30, 2024, the Town of Cleveland, Alabama, did not elect to use this rate. Grant monies received and disbursed by the Town of Cleveland, Alabama, are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon experience, the Town of Cleveland, Alabama, does not believe that such disallowance, if any, would have a material effect on the financial position of the Town of Cleveland, Alabama.
Title: Federally Funded Insurance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal spending of Town of Cleveland, Alabama, and is presented on the accrual basis of accounting. The amounts reported on the Schedule have been reconciled to and are in material agreement with amounts recorded in the Organization’s accounting records from which the general purpose financial statements have been reported. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Cleveland, Alabama, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Cleveland, Alabama. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance allows an organization to elect a 10% de minimis indirect cost rate. For the year ended September 30, 2024, the Town of Cleveland, Alabama, did not elect to use this rate. The Town of Cleveland, Alabama, did not have any federally funded insurance required to be reported on the Schedule for the fiscal year ended September 30, 2024.

Finding Details

Finding 2024-002
No written procedures for advance receipt of federal award payments Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – 2 CFR Section 200.303(a) requires nonfederal entities receiving federal awards to establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. 2 CFR 200.305 Federal Payment requires nonfederal entities to establish written procedures to implement the requirements of cash management of federal funding. Condition – The Organization received federal funds prior to paying contractors and had no written procedures in place for appropriately handling those funds. Cause – The Organization has not developed or implemented written procedures for appropriately handling advance federal funds. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop, implement and comply with written procedures to meet the requirements of 2 CFR Section 200.303(a) and 2 CFR 200.305 Federal Payment. Views of responsible officials – The Mayor has implemented policies to no longer hold contractor invoices until ARPA funding is received but will follow the reimbursement guidelines per the grant agreements.
Finding 2024-002
No written procedures for advance receipt of federal award payments Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – 2 CFR Section 200.303(a) requires nonfederal entities receiving federal awards to establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. 2 CFR 200.305 Federal Payment requires nonfederal entities to establish written procedures to implement the requirements of cash management of federal funding. Condition – The Organization received federal funds prior to paying contractors and had no written procedures in place for appropriately handling those funds. Cause – The Organization has not developed or implemented written procedures for appropriately handling advance federal funds. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop, implement and comply with written procedures to meet the requirements of 2 CFR Section 200.303(a) and 2 CFR 200.305 Federal Payment. Views of responsible officials – The Mayor has implemented policies to no longer hold contractor invoices until ARPA funding is received but will follow the reimbursement guidelines per the grant agreements.
Finding 2024-003
Fiscal Sustainability Plans Not Developed and Implemented Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – ADEM award requires the Organization to develop and implement a fiscal sustainability plan (FSP) as required by the Federal Water Pollution Control Act (FWPCA) Section 603(d)(1)(E). Prior to receiving disbursement of funds from the award, the Town must submit certification that a FSP has been developed and implemented to the standards required by ADEM. The certification can be submitted upon completion or with the first request for reimbursement. Condition – The Organization did not develop and implement fiscal sustainability plans for the federal awards. Cause – The Organization has not developed or implemented policies and procedures for fiscal sustainability. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop and implement fiscal sustainability plans to comply with the requirements of the federal award. Views of responsible officials – The Mayor has committed to developing and implementing a fiscal sustainability plan.
Finding 2024-003
Fiscal Sustainability Plans Not Developed and Implemented Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – ADEM award requires the Organization to develop and implement a fiscal sustainability plan (FSP) as required by the Federal Water Pollution Control Act (FWPCA) Section 603(d)(1)(E). Prior to receiving disbursement of funds from the award, the Town must submit certification that a FSP has been developed and implemented to the standards required by ADEM. The certification can be submitted upon completion or with the first request for reimbursement. Condition – The Organization did not develop and implement fiscal sustainability plans for the federal awards. Cause – The Organization has not developed or implemented policies and procedures for fiscal sustainability. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop and implement fiscal sustainability plans to comply with the requirements of the federal award. Views of responsible officials – The Mayor has committed to developing and implementing a fiscal sustainability plan.
Finding 2024-002
No written procedures for advance receipt of federal award payments Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – 2 CFR Section 200.303(a) requires nonfederal entities receiving federal awards to establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. 2 CFR 200.305 Federal Payment requires nonfederal entities to establish written procedures to implement the requirements of cash management of federal funding. Condition – The Organization received federal funds prior to paying contractors and had no written procedures in place for appropriately handling those funds. Cause – The Organization has not developed or implemented written procedures for appropriately handling advance federal funds. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop, implement and comply with written procedures to meet the requirements of 2 CFR Section 200.303(a) and 2 CFR 200.305 Federal Payment. Views of responsible officials – The Mayor has implemented policies to no longer hold contractor invoices until ARPA funding is received but will follow the reimbursement guidelines per the grant agreements.
Finding 2024-002
No written procedures for advance receipt of federal award payments Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – 2 CFR Section 200.303(a) requires nonfederal entities receiving federal awards to establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. 2 CFR 200.305 Federal Payment requires nonfederal entities to establish written procedures to implement the requirements of cash management of federal funding. Condition – The Organization received federal funds prior to paying contractors and had no written procedures in place for appropriately handling those funds. Cause – The Organization has not developed or implemented written procedures for appropriately handling advance federal funds. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop, implement and comply with written procedures to meet the requirements of 2 CFR Section 200.303(a) and 2 CFR 200.305 Federal Payment. Views of responsible officials – The Mayor has implemented policies to no longer hold contractor invoices until ARPA funding is received but will follow the reimbursement guidelines per the grant agreements.
Finding 2024-003
Fiscal Sustainability Plans Not Developed and Implemented Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – ADEM award requires the Organization to develop and implement a fiscal sustainability plan (FSP) as required by the Federal Water Pollution Control Act (FWPCA) Section 603(d)(1)(E). Prior to receiving disbursement of funds from the award, the Town must submit certification that a FSP has been developed and implemented to the standards required by ADEM. The certification can be submitted upon completion or with the first request for reimbursement. Condition – The Organization did not develop and implement fiscal sustainability plans for the federal awards. Cause – The Organization has not developed or implemented policies and procedures for fiscal sustainability. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop and implement fiscal sustainability plans to comply with the requirements of the federal award. Views of responsible officials – The Mayor has committed to developing and implementing a fiscal sustainability plan.
Finding 2024-003
Fiscal Sustainability Plans Not Developed and Implemented Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS-10269-02 and CS010896-01 2023 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria – ADEM award requires the Organization to develop and implement a fiscal sustainability plan (FSP) as required by the Federal Water Pollution Control Act (FWPCA) Section 603(d)(1)(E). Prior to receiving disbursement of funds from the award, the Town must submit certification that a FSP has been developed and implemented to the standards required by ADEM. The certification can be submitted upon completion or with the first request for reimbursement. Condition – The Organization did not develop and implement fiscal sustainability plans for the federal awards. Cause – The Organization has not developed or implemented policies and procedures for fiscal sustainability. Effect – Possible noncompliance with requirements of the program. Recommendation – The Organization should develop and implement fiscal sustainability plans to comply with the requirements of the federal award. Views of responsible officials – The Mayor has committed to developing and implementing a fiscal sustainability plan.