Finding 1152531 (2024-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-10
Audit: 365992
Organization: City of Lewes, Delaware (DE)

AI Summary

  • Core Issue: The City submitted an inaccurate SLFRF Compliance P&E Annual Report, with totals not matching actual expenditures.
  • Impacted Requirements: The report must be filed within 30 days after the fiscal year ends, reflecting the City’s own expenditures, not those of subrecipients.
  • Recommended Follow-Up: The City should establish controls to ensure accurate reporting and will issue an amended report to correct the discrepancies.

Finding Text

Type of finding – Material Weakness in Internal Control over Compliance and Noncompliance Criteria – SLFRF Compliance P&E Annual Report should be submitted in accordance with the requirements of this report 30 days following the end of each fiscal year ending March 31. Condition – The totals submitted on the annual report did not match the expenditures incurred by the City. The City passed through funds to three subrecipients during the year to be used for preapproved projects allowed under the award. The City reported funds expended by the subrecipients to date, rather than the funds spent by the City. Cause – The City did not have a process in place to ensure an accurate SLFRF Compliance P&E Annual Report was filed. Effect – Required reporting and filing of the SLFRF Compliance P&E Report with accurate information will not be performed. Recommendation – The City should implement controls to be able to accurately report required reports, based on requirements of a Federal agreement. Management response and Corrective Action Plan: The City will issue an amended report to reflect the accurate totals.

Categories

Subrecipient Monitoring Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 576089 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.42M
16.738 Edward Byrne Memorial Justice Assistance Grant Program $14,900
20.616 National Priority Safety Programs $7,663