Finding 1162648 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-18
Audit: 372311
Organization: City of Columbia Falls (MT)

AI Summary

  • Core Issue: The City failed to complete the audit for fiscal year 2024 by the March 31, 2025 deadline.
  • Impacted Requirements: This delay violates MT Administrative Rules 2.4.411 and Federal Uniform Guidance/A-133.
  • Recommended Follow-up: Ensure timely engagement of auditors to meet future audit deadlines.

Finding Text

2024-001 Audit Report Deadline (Repeated 2023-001) CFDA Title: Coronavirus State and Local Fiscal Recovery Funds CFDA Number: 21.027 Federal Agency: Department of the Treasury Pass-through Entity: State of Montana Department of Natural Resources Condition: Montana local governments with a June 30th fiscal year end must submit their audit report to the MT Department of Administration and the Federal Clearing house by March 31st, following the fiscal year end. The City audit was not completed until April 2025. Context: Per review of the audit compliance requirements for both the State of Montana and the Federal government. Criteria: The audit for the fiscal year ended June 30, 2024, was due to the State and the Federal government by March 31, 2025 as required by MT Administrative Rules 2.4.411 and the Federal Uniform Guidance/A-133 rules. Effect: The City is late in completing the audit for fiscal year 2024. Cause: The City was required to engage a new auditor for fiscal year 2024; however, the contract with the new auditor was not finalized until the end of July 2025. As a result, there was insufficient time to adequately plan and complete the audit by the required deadline. Recommendation: We recommend the City complete their annual audits in compliance with MT Administrative Rules 2.4.411 and federal rules described in the Uniform Guidance/A-133.

Corrective Action Plan

FINDING 2024-001: Audit Report Deadline (Repeated 2023-001) Response: Following turnover in the City Manager (June 2024) and Finance Director (November 2024) positions, city staff have been actively working to ensure compliance regarding the delayed audit submission. The Finance Director, who joined the city in November 2024, postponed issuing RFPs to audit firms until the new City Manager assumed the role in April 2025. By July 2025, the City Manager and Finance Director engaged Nexus to complete the 2024 audit in the fall of 2025. To ensure compliance, the city will work with Nexus to have the 2025 Audit completed by March of 2026.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1162646 2024-001
    Material Weakness Repeat
  • 1162647 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $755,461
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $5,390
10.664 COOPERATIVE FORESTRY ASSISTANCE $3,000
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $1,213