FAC Explorer

Audit 51068

FY End
2022-09-30
Total Expended
$1.33M
Findings
2
Programs
8
Organization: City of Thomasville Alabama (AL)
Year: 2022 Accepted: 2023-05-29
Auditor: Jackson Thornton

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51108 2022-008 Material Weakness Yes L
627550 2022-008 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $1.04M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $78,827 - 0
90.201 Delta Area Economic Development $75,513 - 0
94.002 Retired and Senior Volunteer Program $72,277 - 0
10.766 Community Facilities Loans and Grants $47,000 - 0
20.600 State and Community Highway Safety $12,491 - 0
16.607 Bulletproof Vest Partnership Program $2,591 - 0
20.616 National Priority Safety Programs $1,717 - 0

Contacts

Name Title Type
R2AUG42TZ6M8 Deborah Ballard Auditee
3346373351 Katie Schmidt Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 - REPORTING ENTITY Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Thomasville, Alabama (the City) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. 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 (the Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The basic financial statements and the schedule of expenditures of federal awards reflects the activity of the City (the primary government), and do not include all of the financial activities of the Thomasville Industrial Development Board and the Health Care Authority Corporation of the City of Thomasville, Alabama as required by accounting principles generally accepted in the United States of America. The City does not issue separate reports for these component units. Blended component units are, in substance, part of the primary governments operations, even though they are legally separate entities. Southwest Alabama RSVP, Inc. and the Public Park and Recreation Board of the City of Thomasville, Alabama are considered blended components of the City due to their fiscal dependence on the City. The Water Works and Sewer Board of the City of Thomasville, Alabama is considered a blended component unit of the City because it functions, for all practical purposes, as a department of the City.
Title: NOTE 4 - PRIOR YEAR EXPENDITURES INCLUDED IN THE SEFA Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Thomasville, Alabama (the City) and is presented on the accrual basis of accounting. Under this basis of accounting, revenues are recognized when earned and expenses are recognized when the related liability is incurred. 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 (the Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. After a presidentially declared disaster, the Federal Emergency Management Agency (FEMA), an agency of the U.S. Department of Homeland Security, provide Disaster Grants - Public Assistance (Presidentially Declared Disasters) (Assistance Listing No. 97.036) to reimburse eligible costs associated with repair, replacement, or restoration of disaster-damaged facilities. In fiscal year 2022, FEMA approved funding in the amount of $78,827 to reimburse eligible expenditures that were incurred in a prior year. These expenditures are included on the schedule of expenditures of federal awards for the year ended September 30, 2022.

Finding Details

Finding 2022-008
Criteria - Recipients must specify whether a cash or accrual basis was used for preparing the Federal Financial Report (SF-425). Financial reports should be prepared in accordance with the specified accounting basis. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - The City indicated the cash basis of accounting was used to prepare the Federal Financial Report (SF-425). For the reporting period ended March 31, 2022, the Federal share of expenditures, the Federal share of unliquidated obligations, and the recipient share of expenditures were improperly reported. For the reporting period ended September 30, 2022, the Federal share of expenditures and the Federal share of unliquidated obligations were improperly reported. In these instances, instructions attached to the Federal Financial Report (SF-425) were not properly followed. In addition, the City failed to comply with certain reporting requirements included in the U.S. Department of Commerce - Economic Development Administration Standard Terms and Conditions for Construction Projects. Effect - The City did not report accurate amounts on the Federal Financial Reports (SF-425) due to errors in compiling amounts from accounting records. For the reporting period ended March 31, 2022, the Federal share of expenditures was understated by approximately $875,000, the Federal share of unliquidated obligations was overstated by approximately $113,000, and the recipient share of expenditures was understated by approximately $52,000. For the reporting period ended September 30, 2022, the Federal share of expenditures was understated by approximately $320,000 and the Federal share of expenditures was overstated by approximately $320,000. Cause - The City?s policies and procedures and internal controls over federal award reporting were not adequate. There is a lack of monitoring and appropriate review by the City of the reports prepared by the external grant administrator. Recommendation - The City should strengthen its policies and procedures and internal controls related to federal award reporting and should implement policies and procedures to monitor and review all reports prepared and submitted by the external grant administrator on behalf of the City. Views of responsible officials - The City agrees with the finding. The City will implement additional review procedures over grant reporting requirements, including more adequate review of reports prepared by third party grant administrators. Identification of repeat finding - This is a repeat finding of prior year finding 2021-007.
Finding 2022-008
Criteria - Recipients must specify whether a cash or accrual basis was used for preparing the Federal Financial Report (SF-425). Financial reports should be prepared in accordance with the specified accounting basis. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - The City indicated the cash basis of accounting was used to prepare the Federal Financial Report (SF-425). For the reporting period ended March 31, 2022, the Federal share of expenditures, the Federal share of unliquidated obligations, and the recipient share of expenditures were improperly reported. For the reporting period ended September 30, 2022, the Federal share of expenditures and the Federal share of unliquidated obligations were improperly reported. In these instances, instructions attached to the Federal Financial Report (SF-425) were not properly followed. In addition, the City failed to comply with certain reporting requirements included in the U.S. Department of Commerce - Economic Development Administration Standard Terms and Conditions for Construction Projects. Effect - The City did not report accurate amounts on the Federal Financial Reports (SF-425) due to errors in compiling amounts from accounting records. For the reporting period ended March 31, 2022, the Federal share of expenditures was understated by approximately $875,000, the Federal share of unliquidated obligations was overstated by approximately $113,000, and the recipient share of expenditures was understated by approximately $52,000. For the reporting period ended September 30, 2022, the Federal share of expenditures was understated by approximately $320,000 and the Federal share of expenditures was overstated by approximately $320,000. Cause - The City?s policies and procedures and internal controls over federal award reporting were not adequate. There is a lack of monitoring and appropriate review by the City of the reports prepared by the external grant administrator. Recommendation - The City should strengthen its policies and procedures and internal controls related to federal award reporting and should implement policies and procedures to monitor and review all reports prepared and submitted by the external grant administrator on behalf of the City. Views of responsible officials - The City agrees with the finding. The City will implement additional review procedures over grant reporting requirements, including more adequate review of reports prepared by third party grant administrators. Identification of repeat finding - This is a repeat finding of prior year finding 2021-007.