Audit 372690

FY End
2024-06-30
Total Expended
$11.85M
Findings
1
Programs
1
Organization: City of Clarksville Gas & Water (TN)
Year: 2024 Accepted: 2025-12-01
Auditor: CROSSLIN PLLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1163192 2024-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $11.85M Yes 1

Contacts

Name Title Type
EGT7FJZ6CAH1 Dawn Thomack Auditee
9316452565 Erica Saeger Auditor
No contacts on file

Notes to SEFA

This schedule of expenditures of federal awards and state financial assistance includes the grant activity of the City of Clarksville, Tennessee, related to the Gas, Water and Wastewater Departments and is presented on the accrual basis of accounting. 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 City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
The information in the schedule of expenditures of federal awards and state financial assistance is presented in accordance with accounting principles generally accepted in the United States of America which is the same basis of accounting as the basic financials statements. The schedule of expenditures of federal awards and state financial assistance has been provided only to comply with the State of Tennessee reporting requirements. The Independent Auditor’s Report on Compliance for Each Major Program and on Internal Controls over Compliance required by the Uniform Guidance will be issued in conjunction with the audit of the City of Clarksville and will encompass federal/state funds received by the Departments as applicable.
Expenditures reported on the Schedule are reported on the modified 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Departments have elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Federal Expenditures Not Reported in the Schedule of Federal Expenditures of Federal Awards and State Financial Assistance (“SEFA”) Federal Program: Coronavirus State and Local Fiscal Recovery Funds CFDA / Assistance Listing Number: 21.027 Federal Agency: U. S. Department of Treasury Pass-Through Entity: Tennessee Department of Environment and Conservation Fiscal Year Ended June 30, 2024 Criteria Per 2 CFR §200.510(b) and 2 CFR §200.502, entities expending federal awards must accurately identify all federal awards expended during the period and prepare a complete and accurate SEFA that is consistent with amounts recorded in the financial statements. Condition and Context During a subsequent audit, it was identified that federal expenditures totaling $867,515 were not recorded as federal grant revenue or accounts receivable in the financial statements and were also omitted from the SEFA. The amounts were material to total federal expenditures reported under the Uniform Guidance. Cause The omission occurred due to oversight in year-end closing and grant reconciliation procedures, which did not capture the unrecorded federal expenditures at fiscal year-end. Effect The SEFA originally issued was incomplete and understated total federal expenditures by $867,515. As a result, the fiscal year 2024 financial statements were reissued to include the omitted federal expenditures and to present an accurate SEFA in accordance with the Uniform Guidance. Questioned Costs None. Recommendation Management should strengthen year-end grant reconciliation and review procedures to ensure that all federal expenditures are properly recorded and included in the SEFA prior to issuance. Views of Responsible Officials and Planned Corrective Actions See management’s corrective action plan.