FAC Explorer

Finding 1167426 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-12-31
Audit: 378515
Organization: MUNICIPALITY OF PARKSTON (SD)
Auditor: SCHOENFISH & CO INC

AI Summary

  • Core Issue: The entity lacks sufficient internal controls for accurate and timely SLFRF expenditure reporting.
  • Impacted Requirements: Failed to file the March 31, 2023 P&E Report and submitted the 2024 report late, with inaccuracies in categorizing expenditures.
  • Recommended Follow-Up: Implement stronger internal controls and ensure compliance with federal reporting deadlines and guidelines.

Finding Text

The entity did not have adequate internal controls to ensure the timely and accurate reporting of SLFRF expenditures and did not fully comply with federal reporting requirements. Specifically: • The required Annual March 31, 2023 P&E Report was not filed. • The Annual March 31, 2024 P&E Report was submitted after the deadline established by the U.S. Department of the Treasury. • The Annual March 2024 and March 2025 P&E Reports also inaccurately reported SLFRF expenditures, with the same funds classified under both the "Revenue Replacement" category and as being associated with specific capital or infrastructure projects, which are mutually exclusive reporting categories under SLFRF guidance.

Corrective Action Plan

Implement an internal reporting calendar for all SLFRF reporting deadlines, including automated reminders for preparers and approvers. Establish a formal internal control process for P&E Report preparation. Train all relevant staff on SLFRF reporting guidance. Correct prior inaccurate filings by submitting amended P&E Reports for fiscal year 2024 and fiscal year 2025 to ensure proper classification of expenditures. Conduct quarterly internal reviews of SLFRF expenditures to ensure correct categorization and timely reporting, with findings documented.

Categories

Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.22M
97.039 HAZARD MITIGATION GRANT $91,040
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $40,682
39.003 DONATION OF FEDERAL SURPLUS PERSONAL PROPERTY $4,687
21.019 CORONAVIRUS RELIEF FUND $2,196
45.310 GRANTS TO STATES $2,064