Finding 1175328 (2025-005)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-02-25
Audit: 389039
Organization: City of Newcastle (WY)

AI Summary

  • Core Issue: The program was overdrawn by $228,613 due to duplicate expenditures in drawdown requests.
  • Impacted Requirements: Compliance with activities allowed and allowable costs was not met due to errors in expenditure reconciliation.
  • Recommended Follow-up: The City should verify actual expenditures against the general ledger before submitting drawdown requests for reimbursement.

Finding Text

#2025-005: Grant Tracking Federal Program Affected: Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Questioned Costs: None following audit adjustments. Condition and Cause: Due to an error when reconciling expenditures when preparing drawdown requests, the above noted program was over-drawn by $228,613 of duplicate expenditures. Criteria and Effect: The current internal control structure did not identify the errors in drawdown request for reimbursement-based federal programs during the year. This could have resulted in material noncompliance. Repeat Finding from Prior Year: No. Recommendation: The City should agree actual expenditures reporting from the general ledger to reports used to prepare drawdown requests prior to requesting reimbursement. Response/Corrective Action Plan: The City agrees with the above finding. See Corrective Action Plan.

Corrective Action Plan

#2025-005: Grant Tracking Responsible Individuals: Stacy Haggerty, Clerk/Treasurer Corrective Action Plan: The City will develop a process to agree actual expenditures incurred to the general ledger before requesting reimbursement. Anticipated Completion Date: Fiscal year 2026.

Categories

Allowable Costs / Cost Principles Cash Management Reporting

Other Findings in this Audit

  • 1175324 2025-001
    Material Weakness Repeat
  • 1175325 2025-005
    Material Weakness Repeat
  • 1175326 2025-006
    Material Weakness Repeat
  • 1175327 2025-001
    Material Weakness Repeat
  • 1175329 2025-006
    Material Weakness Repeat
  • 1175330 2025-002
    Material Weakness Repeat
  • 1175331 2025-002
    Material Weakness Repeat
  • 1175332 2025-001
    Material Weakness Repeat
  • 1175333 2025-002
    Material Weakness Repeat
  • 1175334 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $336,464
20.205 HIGHWAY PLANNING AND CONSTRUCTION $28,278