Finding 1167395 (2024-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-12-31
Audit: 378442
Organization: Village of South Point (OH)

AI Summary

  • Core Issue: The Village did not submit the required Project and Expenditure Report for 2024 and reported expenditures that did not match supporting invoices.
  • Impacted Requirements: Noncompliance with 2 CFR 200.329(c)(1) and U.S. Department of Treasury reporting standards.
  • Recommended Follow-up: Implement additional procedures to ensure accurate reporting of federal expenditures and timely submission of required reports.

Finding Text

2 CFR 200.329(c)(1) states that non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, using a form or format authorized by the Office of Budget and Management (OBM). Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the Federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the Federal awarding agency. Entities are required to submit a Project and Expenditure Report annually. Reported expenditures on the draw down reports for 2024 did not agree with supporting invoices paid by the Village. The Village, on two occasions, received monies prior to the bills being paid. Therefore, draws were being completed prior to the expenditures happening. Additionally, the Project and Expenditure report for 2024 which was due by April 30, 2025, was not submitted. By not properly filing the required reports, the Village is in noncompliance with the requirements set forth by the U.S. Department of Treasury. This could result in the Treasury not fully being aware of how the Village is utilizing the funding in determining if the Village is following other requirements and using the funding properly. The Village should add additional procedures or controls to ensure all components of reporting federal expenditures are accurately reported.

Corrective Action Plan

The Village will add additional procedures or controls to ensure all components of reporting federal expenditures are accurately reported.

Categories

Cash Management Reporting Matching / Level of Effort / Earmarking Program Income

Other Findings in this Audit

  • 1167394 2024-005
    Material Weakness Repeat
  • 1167396 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $644,833
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $519,295