FAC Explorer

Audit 365992

FY End
2024-03-31
Total Expended
$1.44M
Findings
2
Programs
3
Organization: City of Lewes, Delaware (DE)
Year: 2024 Accepted: 2025-09-10
Auditor: Pks & Company P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
576089 2024-002 Material Weakness - L
1152531 2024-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.42M Yes 1
16.738 Edward Byrne Memorial Justice Assistance Grant Program $14,900 - 0
20.616 National Priority Safety Programs $7,663 - 0

Contacts

Name Title Type
NLLKQ3HFGQ28 Ellen Lorraine McCabe Auditee
3026457777 Andrew Haynie Auditor
No contacts on file

Notes to SEFA

Title: 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 entity identifying numbers are presented where available. The City has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The entity did not choose to elect the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Lewes, Delaware under programs of the federal government for the year ended March 31, 2024. The information presented in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in assets, or cash flows of the City.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 entity identifying numbers are presented where available. The City has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The entity did not choose to elect the 10% de minimis cost rate. 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 entity identifying numbers are presented where available. The City has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Type of finding – Material Weakness in Internal Control over Compliance and Noncompliance Criteria – SLFRF Compliance P&E Annual Report should be submitted in accordance with the requirements of this report 30 days following the end of each fiscal year ending March 31. Condition – The totals submitted on the annual report did not match the expenditures incurred by the City. The City passed through funds to three subrecipients during the year to be used for preapproved projects allowed under the award. The City reported funds expended by the subrecipients to date, rather than the funds spent by the City. Cause – The City did not have a process in place to ensure an accurate SLFRF Compliance P&E Annual Report was filed. Effect – Required reporting and filing of the SLFRF Compliance P&E Report with accurate information will not be performed. Recommendation – The City should implement controls to be able to accurately report required reports, based on requirements of a Federal agreement. Management response and Corrective Action Plan: The City will issue an amended report to reflect the accurate totals.
Finding 2024-002
Type of finding – Material Weakness in Internal Control over Compliance and Noncompliance Criteria – SLFRF Compliance P&E Annual Report should be submitted in accordance with the requirements of this report 30 days following the end of each fiscal year ending March 31. Condition – The totals submitted on the annual report did not match the expenditures incurred by the City. The City passed through funds to three subrecipients during the year to be used for preapproved projects allowed under the award. The City reported funds expended by the subrecipients to date, rather than the funds spent by the City. Cause – The City did not have a process in place to ensure an accurate SLFRF Compliance P&E Annual Report was filed. Effect – Required reporting and filing of the SLFRF Compliance P&E Report with accurate information will not be performed. Recommendation – The City should implement controls to be able to accurately report required reports, based on requirements of a Federal agreement. Management response and Corrective Action Plan: The City will issue an amended report to reflect the accurate totals.