FAC Explorer

Audit 365401

FY End
2024-06-30
Total Expended
$5.70M
Findings
6
Programs
2
Organization: City of McDonough (GA)
Year: 2024 Accepted: 2025-09-02
Auditor: James L Whitaker PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575350 2024-004 Material Weakness Yes L
575351 2024-004 Material Weakness Yes L
575352 2024-002 Material Weakness Yes L
1151792 2024-004 Material Weakness Yes L
1151793 2024-004 Material Weakness Yes L
1151794 2024-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
66.468 Drinking Water State Revolving Fund $3.74M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.96M Yes 1

Contacts

Name Title Type
R6ATNDUCEMH1 Deborah Upshaw Auditee
6787826247 James L. Whitaker Auditor
No contacts on file

Notes to SEFA

Title: NOTE A-BASIS OF PRESENTATION Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: Not applicable The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City of McDonough, Georgia under programs of the federal government for the year ended June 30, 2024. The infomrntion in the 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 (Unifo1m Guidance). Because the Schedule presents only a selected portion of the operations of City of McDonough, Georgia, it is not intended to and does not present the financial position, changes in net assets, or cash flows of City of McDonough, Georgia.
Title: NOTE A-BASIS OF PRESENTATION Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: Not applicable The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City of McDonough, Georgia under programs of the federal government for the year ended June 30, 2024. The infomrntion in the 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 (Unifo1m Guidance). Because the Schedule presents only a selected portion of the operations of City of McDonough, Georgia, it is not intended to and does not present the financial position, changes in net assets, or cash flows of City of McDonough, Georgia.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: Not applicable Expenditures repmted on the Schedule are repmted on the accrual basis of accow1ting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein ce1tain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE C - INDIRECT COST RATE Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: Not applicable The City elected not to utilize the 10% de minim us indirect cost rate.

Finding Details

Finding 2024-004
2023.002 NEED FOR A FULL-TIME ACCOUNTING SUPERVISOR/ CONTROLLER - REPEAT FINDING Condition: Criteria: Effect: Cause: For 2023, the City did not have an accounting supervisor/ controller with the necessary skill-set to provide the City with accurate and timely financial reports or over-sight of the accounting staff. The City did hire a full-time accounting supervisor in October 2024 which resulted in the audit for the year ended June 30, 2024 also being filed late. An accounting supervisor/ controller should be able to provide the City with I) accurate and timely financial reports; 2) oversight of the accounting staff including implementation and monitoring of the accounting control system; 3) timely in1plementation of new accounting standards; and 4) recommendations for any new accounting policies and procedures. The audit was significantly late in being issued due to the City not being able to implement a new accounting standard in a timely manner. The late issue date could cause compliance issues with granting agencies, including single audit submissions and the Georgia Department of Audits and Accounts. The City has not been able to hire a full-time accounting supervisor/ controller for the last two years. Recommendation: Management needs to hire a qualified / experienced controller for the City. View of responsible officials and planned corrective action: Management agrees with the finding. Management has attempted to hire an accounting supervisor/ controller with the skill set that would allow for the oversight and proper managing of the accounting department. The City did accomplish this task in October 2024.
Finding 2024-004
2023.002 NEED FOR A FULL-TIME ACCOUNTING SUPERVISOR/ CONTROLLER - REPEAT FINDING Condition: Criteria: Effect: Cause: For 2023, the City did not have an accounting supervisor/ controller with the necessary skill-set to provide the City with accurate and timely financial reports or over-sight of the accounting staff. The City did hire a full-time accounting supervisor in October 2024 which resulted in the audit for the year ended June 30, 2024 also being filed late. An accounting supervisor/ controller should be able to provide the City with I) accurate and timely financial reports; 2) oversight of the accounting staff including implementation and monitoring of the accounting control system; 3) timely in1plementation of new accounting standards; and 4) recommendations for any new accounting policies and procedures. The audit was significantly late in being issued due to the City not being able to implement a new accounting standard in a timely manner. The late issue date could cause compliance issues with granting agencies, including single audit submissions and the Georgia Department of Audits and Accounts. The City has not been able to hire a full-time accounting supervisor/ controller for the last two years. Recommendation: Management needs to hire a qualified / experienced controller for the City. View of responsible officials and planned corrective action: Management agrees with the finding. Management has attempted to hire an accounting supervisor/ controller with the skill set that would allow for the oversight and proper managing of the accounting department. The City did accomplish this task in October 2024.
Finding 2024-002
2022.004 RECORDING OF ACCOUNTS PAYABLE-REPEAT FINDING Condition: Criteria: Effect: Cause: The City under-reported accounts payable as of June 30, 2022, 2023 and 2024 in the amounts of$673,150, $886,252 and $1,919,207 which are material to the City's financial statements. In addition, $1,200,327 of the $1,919,207 was costs related to a major federal awards program with reporting requirements under the single audit act. All expenditures / expenses should be recorded in the period the corresponding purchase/ service is incurred. The City's liabilities and expenditures I expenses for 2022 tlu·ough 2024 were understated by the above-mentioned amounts. The lack of training and over-sight of employees responsible for recording expenditures / expenses is the main reason for the under-repo1ting of accounts payable. Recommendation: Management should provide the necessary training and over-sight of employees responsible for recording accounts payable. View of responsible officials and planned corrective action: Management agrees with the finding. Management will ensure the employees with the responsibility over the recording of accounts payable are properly trained and supervised so that accounts payable and expenditures/ expenses are properly stated on the financial statements.
Finding 2024-004
2023.002 NEED FOR A FULL-TIME ACCOUNTING SUPERVISOR/ CONTROLLER - REPEAT FINDING Condition: Criteria: Effect: Cause: For 2023, the City did not have an accounting supervisor/ controller with the necessary skill-set to provide the City with accurate and timely financial reports or over-sight of the accounting staff. The City did hire a full-time accounting supervisor in October 2024 which resulted in the audit for the year ended June 30, 2024 also being filed late. An accounting supervisor/ controller should be able to provide the City with I) accurate and timely financial reports; 2) oversight of the accounting staff including implementation and monitoring of the accounting control system; 3) timely in1plementation of new accounting standards; and 4) recommendations for any new accounting policies and procedures. The audit was significantly late in being issued due to the City not being able to implement a new accounting standard in a timely manner. The late issue date could cause compliance issues with granting agencies, including single audit submissions and the Georgia Department of Audits and Accounts. The City has not been able to hire a full-time accounting supervisor/ controller for the last two years. Recommendation: Management needs to hire a qualified / experienced controller for the City. View of responsible officials and planned corrective action: Management agrees with the finding. Management has attempted to hire an accounting supervisor/ controller with the skill set that would allow for the oversight and proper managing of the accounting department. The City did accomplish this task in October 2024.
Finding 2024-004
2023.002 NEED FOR A FULL-TIME ACCOUNTING SUPERVISOR/ CONTROLLER - REPEAT FINDING Condition: Criteria: Effect: Cause: For 2023, the City did not have an accounting supervisor/ controller with the necessary skill-set to provide the City with accurate and timely financial reports or over-sight of the accounting staff. The City did hire a full-time accounting supervisor in October 2024 which resulted in the audit for the year ended June 30, 2024 also being filed late. An accounting supervisor/ controller should be able to provide the City with I) accurate and timely financial reports; 2) oversight of the accounting staff including implementation and monitoring of the accounting control system; 3) timely in1plementation of new accounting standards; and 4) recommendations for any new accounting policies and procedures. The audit was significantly late in being issued due to the City not being able to implement a new accounting standard in a timely manner. The late issue date could cause compliance issues with granting agencies, including single audit submissions and the Georgia Department of Audits and Accounts. The City has not been able to hire a full-time accounting supervisor/ controller for the last two years. Recommendation: Management needs to hire a qualified / experienced controller for the City. View of responsible officials and planned corrective action: Management agrees with the finding. Management has attempted to hire an accounting supervisor/ controller with the skill set that would allow for the oversight and proper managing of the accounting department. The City did accomplish this task in October 2024.
Finding 2024-002
2022.004 RECORDING OF ACCOUNTS PAYABLE-REPEAT FINDING Condition: Criteria: Effect: Cause: The City under-reported accounts payable as of June 30, 2022, 2023 and 2024 in the amounts of$673,150, $886,252 and $1,919,207 which are material to the City's financial statements. In addition, $1,200,327 of the $1,919,207 was costs related to a major federal awards program with reporting requirements under the single audit act. All expenditures / expenses should be recorded in the period the corresponding purchase/ service is incurred. The City's liabilities and expenditures I expenses for 2022 tlu·ough 2024 were understated by the above-mentioned amounts. The lack of training and over-sight of employees responsible for recording expenditures / expenses is the main reason for the under-repo1ting of accounts payable. Recommendation: Management should provide the necessary training and over-sight of employees responsible for recording accounts payable. View of responsible officials and planned corrective action: Management agrees with the finding. Management will ensure the employees with the responsibility over the recording of accounts payable are properly trained and supervised so that accounts payable and expenditures/ expenses are properly stated on the financial statements.