FAC Explorer

Audit 395058

FY End
2025-06-30
Total Expended
$945,769
Findings
1
Programs
2
Organization: Town of Pittsville (MD)
Year: 2025 Accepted: 2026-03-27
Auditor: WIGGLESWORTH LAYTON MOYERS & CHANCE PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1190765 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.023 COMMUNITY DEVELOPMENT BLOCK GRANT- PRO HOUSING COMPETITION $800,000 Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $145,769 Yes 0

Contacts

Name Title Type
E4YLMJ23TCH5 Ana Ketterman Auditee
4108358872 Matthew P. Chance, CPA Auditor
No contacts on file

Notes to SEFA

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 and/or OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. A. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Pittsville, Maryland under programs of the federal government for the year ended June 30, 2025. 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, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The Town of Pittsville, Maryland has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Criteria: Proper segregation of the accounting function is a good system of internal control to provide reasonable assurance that a material misstatement to the financial statements is prevented. Condition: The basic premise is that no one employee has access to both physical assets, such as cash, and the related accounting records or to all phases of a transaction. The Town does not employ a sufficient number of people as part of its daily internal accounting function to eliminate people from performing incompatible accounting and finance duties. The Town does not have a system in place to properly record the transactions of the Town. Cause: A lack of a good system of internal control has created conflicts concerning assigned duties. Effect: A lack of segregation of duties does not allow employees in the normal course of performing assigned duties to prevent or detect fraud and correct intentional or unintentional errors in a timely basis. Recommendation: We recommend that Management continuously strive to achieve maximum segregation of duties as much as possible and hire new employees. It is also important for the Commissioners to continue to provide oversight of the financial accounting. Because of the inherent difficulty to achieve a proper segregation of duties, we recommend that the Commissioners develop and establish additional policies and controls in order to minimize the risk of material misstatement of fraud. Identification of Repeat Finding: Due to size of the Town, this is a repeat finding. View of Responsible Officials: Management is aware of this condition and has assessed the costs to achieve maximum segregation of duties. Management has determined that these costs exceed the potential benefit of hiring additional employees. Management continues to strive to achieve maximum segregation of duties possible with the current number of employees. The Commissioners will continue to provide oversight of the financial accounting.