FAC Explorer

Finding 1165213 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-12-17
Audit: 375508
Organization: City of Sumter (SC)
Auditor: THE BRITTINGHAM GROUP LLP

AI Summary

  • Core Issue: The City failed to report all federal award expenditures from pass-through entities on the Schedule of Expenditures of Federal Awards.
  • Impacted Requirements: This oversight resulted in non-compliance with Uniform Guidance for federal award reporting.
  • Recommended Follow-Up: Management should establish procedures to ensure complete and accurate reporting of all federal award expenditures in future fiscal years.

Finding Text

Criteria: The City was required to include all expenditures of federal awards received directly from federal agencies and indirectly from pass-through entities on the Schedule of Expenditures of Federal Awards. Condition: The City did not include all expenditures of federal awards received indirectly from pass-through entities on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2024 report issued on December 9, 2024 . The June 30, 2024 single audit had to be re-issued and an additional major program was tested. Cause: The City did not have procedures in place to ensure that all expenditures of federal awards were reported. Effect: The City was not in compliance with the Uniform Guidance compliance requirements for the Schedule of Expenditures of Federal Awards. Auditor's Recommendation: The City's management should implement procedures to ensure that expenditures for all federal awards are reported on the Schedule of Expenditures of Federal Awards for the applicable fiscal year.

Corrective Action Plan

Management concurs with the auditor's finding. The omission of certain federal expenditures from the orginally issued Schedule of Expenditures of Federal Awards (SEFA) was identified by management while reconciling federal expenditures for fiscal year 2025 to previously reported balances. It was determined that the fiscal year 2024 SEFA did not fully capture all grant-related transactions recorded in the general ledger. The SEFA has been corrected and reissued to include all qualifying expenditures, and updated procedures have been implemented to strengthen controls over SEFA preparation. Specifically, the Finance Department has designated certain expenditure accounts to be used only in conjunction with grant related expenditures and implemented a new procedure to identify any grant related transactions not recorded to those specified accounts.

Categories

Reporting

Other Findings in this Audit

  • 1165212 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.72M
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $558,545
20.205 HIGHWAY PLANNING AND CONSTRUCTION $418,589
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $297,268
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $68,728
93.366 STATE ACTIONS TO IMPROVE ORAL HEALTH OUTCOMES AND PARTNER ACTIONS TO IMPROVE ORAL HEALTH OUTCOMES $40,690
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $38,312
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $33,271
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $5,737
16.575 CRIME VICTIM ASSISTANCE $218