Audit 364010

FY End
2024-06-30
Total Expended
$1.11M
Findings
2
Programs
2
Organization: Town of Edinburg (VA)
Year: 2024 Accepted: 2025-08-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
573193 2024-003 Material Weakness Yes L
1149635 2024-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.01M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $102,176 - 0

Contacts

Name Title Type
F9LNP55NM8X9 Mandy Roberts Auditee
5409848521 James Kelly 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 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 identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Town of Edinburg, Virginia 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 the Town of Edinburg, Virginia under programs of the federal government for the year ended June 30, 2024. 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 Edinburg, Virginia, it is not intended to and does not present the financial position, change in net position, or cash flows of the Town of Edinburg, Virginia.
Title: NOTE C - SUBRECIPIENTS 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 identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Town of Edinburg, Virginia has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. No awards were passed through to subrecipients.
Title: NOTE D - LOANS 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 identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Town of Edinburg, Virginia has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. At June 30, 2024, the Town had outstanding water and waste disposal systems loans of $2,490,186 and $480,660 from Rural Development.
Title: NOTE E - RELATIONSHIP TO FINANCIAL STATEMENTS 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 identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Town of Edinburg, Virginia has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal expenditures, revenues, and debt issuances are reported in the Town's basic financial statements as follows: Intergovernmental federal revenues per the basic financial statements: Primary government: Governmental funds: General fund $ 12,000 Enterprise funds: Water and Sewer fund 860,264 Water and waste disposal systems for rural communities current year debt issuance reported as long-term debt in the Water and Sewer fund 238,731 Total primary government $ 1,110,995 Total federal expenditures per the Schedule of Expenditures of Federal Awards $ 1,110,995

Finding Details

Finding 2024-003 Federal Procurement Policies Criteria: Federal awards recipients must have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D and E. Condition: There are no written procurement policies specific to federal awards cost principle requirements under Uniform Guidance. Existing procurement policies are minimal and do not meet federal requirements. Cause: Certain required policies under 2 CFR 200, Subparts D and E are not present. Effect: Lack of required policies may create noncompliance with regulations as stated requirements may not be followed. Recommendation: The Town should develop procurement policies and financial policies that meet federal standards. Management's Response: A. Comments on Findings and Recommendations: The Town concurs with the finding. B. Actions Planned or Taken: As of October 2024, the Town has adopted a Federal Procurement Policy.
Finding 2024-003 Federal Procurement Policies Criteria: Federal awards recipients must have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D and E. Condition: There are no written procurement policies specific to federal awards cost principle requirements under Uniform Guidance. Existing procurement policies are minimal and do not meet federal requirements. Cause: Certain required policies under 2 CFR 200, Subparts D and E are not present. Effect: Lack of required policies may create noncompliance with regulations as stated requirements may not be followed. Recommendation: The Town should develop procurement policies and financial policies that meet federal standards. Management's Response: A. Comments on Findings and Recommendations: The Town concurs with the finding. B. Actions Planned or Taken: As of October 2024, the Town has adopted a Federal Procurement Policy.