FAC Explorer

Audit 363014

FY End
2024-12-31
Total Expended
$10.85M
Findings
2
Programs
6
Organization: City of Athens (OH)
Year: 2024 Accepted: 2025-07-25
Auditor: Clark Schaefer Hackett

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571927 2024-003 Significant Deficiency - M
1148369 2024-003 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.92M Yes 1
20.205 Highway Planning and Construction $2.98M Yes 0
97.044 Assistance to Firefighters Grant $106,955 - 0
16.588 Violence Against Women Formula Grants $48,563 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $16,486 - 0
16.607 Bulletproof Vest Partnership Program $8,584 - 0

Contacts

Name Title Type
M35KQ6832G54 Kathy Hecht Auditee
7405923336 Brian Mosier Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Athens has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of City of Athens under programs of the federal government for the year ended 2024. The information on this Schedule is prepared 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 City of Athens, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Athens.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Athens has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the cash basis of accounting Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
Title: NOTE C – INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Athens has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City of Athens has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE D - SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Athens has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City of Athens passes certain federal awards received from The Ohio Department of Development to other governments or not-for-profit agencies (subrecipients). As Note B describes the City of Athens reports expenditures of Federal awards to subrecipients when paid in cash.
Title: NOTE E - COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) and HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) GRANT PROGRAMS WITH REVOLVING LOAN CASH BALANCE Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Athens has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The current cash balance on the City of Athens local program income account as of 2024 is $578,920.

Finding Details

Finding 2024-003
Criteria: 2 CFR 200.332 establishes requirements for pass-through entities. Included in these requirements is to monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. Condition: The City did have procedures in place to monitor allowable costs and activities of its subrecipients. However, while conducting a review of expenditures through the monitoring of the Appalachia Community Grant (ACG), the Ohio Department of Development (ODOD), noted that a subrecipient of the City had made unallowable expenditures for the grant. This demonstrates a control weakness in the subrecipient monitoring controls conducted by the City. Context: The City, ODOD, and the subrecipient are working on a way to recover any questioned costs associated with this and these do not represent questioned costs of the City. Effect: There is a significant deficiency in the subrecipient monitoring controls of the City that could allow future unallowable costs or activities at subrecipients, if not improved. Recommendation: We recommend that the City implement stronger monitoring controls including vendor verification and review of invoices for the draw down requests that they receive from their subrecipients.
Finding 2024-003
Criteria: 2 CFR 200.332 establishes requirements for pass-through entities. Included in these requirements is to monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. Condition: The City did have procedures in place to monitor allowable costs and activities of its subrecipients. However, while conducting a review of expenditures through the monitoring of the Appalachia Community Grant (ACG), the Ohio Department of Development (ODOD), noted that a subrecipient of the City had made unallowable expenditures for the grant. This demonstrates a control weakness in the subrecipient monitoring controls conducted by the City. Context: The City, ODOD, and the subrecipient are working on a way to recover any questioned costs associated with this and these do not represent questioned costs of the City. Effect: There is a significant deficiency in the subrecipient monitoring controls of the City that could allow future unallowable costs or activities at subrecipients, if not improved. Recommendation: We recommend that the City implement stronger monitoring controls including vendor verification and review of invoices for the draw down requests that they receive from their subrecipients.