Audit 410498

2024-010 Single Audit Submission (Noncompliance and Material Weakness) Condition : The City has not met its single audit submission requirements. Criteria : Uniform Guidance under OMB single audit guidelines require for data collection forms to be submitted to the Federal Audit Clearinghouse within 9 months of fiscal year end. Cause : The City’s fiscal year 2023 audit was not completed until February 2025 which meant that their fiscal year 2024 audit could not be started until March 2025 causing delays in their Data Collection Form submission for fiscal year 2024. Effect : This reporting violation could mean that federal funding is restricted or suspended for future grants. Recommendation : We recommend that the City continue to work to complete their audits in a timely manner. Repeat Finding : This was a prior year finding. See Item 2023-001. View of Responsible Officials : See Corrective Action Plan.

2024-011 COVID-19 - Coronavirus State and Local Fiscal Recovery Fund – Assistance Listing #21.027, Procurement (Material Weakness) Condition : The City does not maintain a procurement policy with the exception of a small purchase policy which covers UG Requirement §200.320(a)(2). The City follows the state code for all other purchases. Criteria : Uniform Guidance requires non-Federal entities to have and use documented procurement procedures. Cause : The City does not maintain a procurement policy. Effect : There is a lack of control due to no procurement policy. Recommendation : We recommend that the city maintain and use a procurement policy for all purchases consistent with Federal and State laws and regulations. View of Responsible Officials : See Corrective Action Plan.

2024-012 COVID-19 - Coronavirus State and Local Fiscal Recovery Fund – Assistance Listing #21.027, Activities Allowed/Allowable Costs (Material Weakness) Condition : The City is not reviewing the disbursements paid to one of their vendors nor payroll timesheets of some of their employees prior to making payment to them. Criteria : Management should have processes and procedures in place that requires approval of expenditures prior to payment. Cause : At times the vendor was approving payments and their employee timesheets, however the City was not approving payment prior to reimbursement to the vendor and payment to employees. Effect : There is a lack of control due to a lack of review. Perspective Information : We detected this through sampling in one out of seven disbursements tested and in six out of six payroll timesheets tested. City of Emporia, Virginia Schedule of Findings and Questioned Costs June 30, 2024 14 Recommendation : We recommend that the City follow their expense approval process for all vendors and approve personnel timesheets for payroll expenditures to provide oversight. View of Responsible Officials : See Corrective Action Plan.

2024-013 COVID-19 - Coronavirus State and Local Fiscal Recovery Fund – Assistance Listing #21.027, Reporting (Noncompliance and Material Weakness) Condition : ARPA Project and Expenditure Report was not filed prior to the deadline date of 4/30/24. Criteria : All required reports should be filed timely and by the required deadline. Cause : The delay in filing the report was due to transition of duties among the current staff. Effect : The City is not in compliance with reporting requirements. Recommendation : We recommend that management implement procedures to ensure all required reports are completed and submitted timely. View of Responsible Officials : See Corrective Action Plan.

2024-014 SEFA Reconciliation (Material Weakness) Condition : The City’s Schedule of Expenditures of Federal Awards (SEFA) was not properly reconciled. Criteria : All federal expenditures from the current fiscal year should be reported on the SEFA. Cause : A review of the federal expenditures reported on the SEFA was not performed. Effect : Changes were made to the SEFA once a reconciliation was performed. Recommendation : We recommend that management implement procedures to review the SEFA to ensure it includes appropriate federal expenditures. View of Responsible Officials : See Corrective Action Plan.