Audit 399545

FY End

2024-06-30

Total Expended

$879,669

Findings

Programs

Organization: TOWN OF LOCKHART (SC)

Year: 2024 Accepted: 2026-04-23

Auditor: MCKINLEY COOPER & CO LLC

Organization Exclusion Status:

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Findings

ID	Ref	Severity	Repeat	Requirement
1208581	2024-001	Material Weakness	Yes	P
1208582	2024-001	Material Weakness	Yes	P

Programs

ALN	Program	Spent	Major	Findings
14.228	COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII	$59,702	Yes	1
23.002	APPALACHIAN AREA DEVELOPMENT	$2,260	Yes	0

Contacts

Name	Title	Type
JN51NDD9DY83	Helen McFalls	Auditee
8645452103	Toni McKinley	Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Town of Lockhart under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented on the modified accrual basis of accounting for governmental fund types and the accrual basis of accounting for the proprietary fund types and in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Town of Lockhart, it is not intended to and does not present the financial position or changes in net position of the Town of Lockhart.

Expenditures are recognized following the cost principles contained in 2 CFR Part 200, Cost Principles for States, Local Governments, and Indian Tribes, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Matching costs, i.e., the non-federal share of certain program costs, are not included in the Schedule.

The Town of Lockhart has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

Significant Deficiency 2024-1 – Internal Control Over Financial Reporting Criteria: Statement on Auditing Standards No. 112, “Communicating Internal Control Related Matters Identified in an Audit” is applicable. The financial records revisions made during the audit process constitute a significant deficiency in internal control under auditing standards. Condition: Under current professional standards, the Town is responsible for the internal control process which includes the preparation of financial statements in accordance with generally accepted accounting principles. This preparation of materially accurate financial statements will help the Town to prevent, detect and correct potential misstatements in the financial statements or footnotes. During the audit process, material adjustments were made to the Town’s financial records. Cause: Management responsible for the accounting and recording function did not possess the proper training and experience. Effect: During the audit process, material audit adjusting entries were required so as to fairly state certain general ledger accounts. Questioned Costs: None Recommendation: The Town should seek to improve the review process for all entries to be reflected in the financial statements. The Town should employ individuals with the skill, knowledge, and experience to thoroughly review and accept responsibility for proposed journal entries and the financial statements. Views of Responsible Officials: The Town agrees with this finding.