Finding 1162026 (2023-012)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-11-06
Audit: 371892
Organization: Town of Louisburg (NC)
Auditor: PBMARES LLP

AI Summary

  • Core Issue: The Town failed to file the required annual report for the 2023 fiscal year and submitted incorrect project expenditures in the June 2024 report.
  • Impacted Requirements: Annual reporting obligations were not met, and the reported expenditures did not align with those approved by the Town Board.
  • Recommended Follow-Up: The Town should file a corrected report before the program ends to address the inaccuracies in reported expenditures.

Finding Text

The Town was required to file annual reports detailing the expenditure projects which made up the reimbursable costs of the program. This was required even though the Town correctly elected to use the revenue replacement alternative of up to $10,000,000. The Town only filed one report in June of 2024, and accordingly, it did not file a report for the 2023 fiscal year resulting in the Town missing the reporting requirement for that year. Additionally, while the report filed in June 2024 had the correct category of revenue replacement elected on the report, the expenditures on the report were not the correct project expenditures approved by the Town Board Instead, the project expenditures reported had not been approved by the Town Board and should not have been used for reporting. Thus, the expenditures originally elected to be used by the Town were not correctly reported. As this effects only the reporting of the expenditures and not the election of the revenue replacement alternative, the Town, under the applicable criteria noted above, can file a corrected report prior to the end of the program.

Corrective Action Plan

The Town will amend the COVID-19 Coronavirus State and Local Fiscal Recovery Act, PRA 1505-0271 Project and Expenditure Report to reflect the actual expenditures used to satisfy the requirements of the grant.

Categories

Reporting

Other Findings in this Audit

  • 1162025 2023-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $200,000
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $105,253
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $89,250
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $50,741
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $23,488
20.205 HIGHWAY PLANNING AND CONSTRUCTION $22,523