FAC Explorer

Audit 409971

FY End
2025-06-30
Total Expended
$1.59M
Findings
2
Programs
1
Organization: City of Nicholasville, Kentucky (KY)
Year: 2025 Accepted: 2026-08-28
Auditor: BALDWIN CPA'S PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1228224 2025-001 Material Weakness Yes L
1228225 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.59M Yes 2

Contacts

Name Title Type
UANSEJ6PBYP7 Melissa Wood Auditee
6065642710 Josh Carey Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the City 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 City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
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.
The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance

Finding Details

Finding 2025-001
Criteria: The City is required under KRS 91A.040 to file the annual audit report to the Department for Local Government by no later than April 1 immediately following the fiscal year being audited. Condition: Deficiencies in the City’s internal controls prevented the timely completion and submission of the annual audit report to the Department for Local Government. Cause: The City failed to provide proper oversight over period-end financial reporting which resulted in delays in issuing the annual audit report for the year ended June 30, 2025. Effect: The City did not file the annual audit report for the fiscal year ended June 30, 2025, to the Department of Local Government by April 1, 2026. Recommendation: We recommend management review the period end financial reporting process and implement changes to allow for timely completion of accurate financial reports. This will allow them to be in compliance with KRS 91A.040. Response: The City agrees with the finding and recommendation. Management will review and strengthen the year-end financial reporting process to improve the timeliness of the audit and financial statement preparation. The City will work with its auditors to establish and monitor reporting deadlines and will evaluate staffing and training needs to help ensure compliance with the reporting requirements of KRS 91A.040 in future periods.
Finding 2025-002
Criteria: The City is required under CFR 200.512(a) to file the annual audit, data collection form, and reporting package within nine months after the end of the audit period. Condition: Deficiencies in the City’s internal controls prevented the timely completion and submission of the annual audit, data collection form, and reporting package to the Federal Audit Clearinghouse. Cause: The City failed to provide proper oversight over period-end financial reporting which resulted in delays in issuing the annual audit report for the year ended June 30, 2025. Effect: The City did not file the annual audit, data collection form, and reporting package for the fiscal year ended June 30, 2025, to the Federal Audit Clearinghouse by March 31, 2026. Recommendation: We recommend management review the period end financial reporting process and implement changes to allow for timely completion of accurate financial reports. This will allow them to be in compliance with CFR 200.512(a). Response: The City agrees with the finding and recommendation. Management will review and strengthen the year-end financial reporting process to improve the timeliness of the audit and financial statement preparation. The City will work with its auditors to establish and monitor reporting deadlines and will evaluate staffing and training needs to help ensure compliance with the filing requirements of 2 CFR 200.512(a) in future periods.