Finding 1181624 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-19

AI Summary

  • Core Issue: Reported expenses for the Coronavirus State and Local Fiscal Recovery Funds were inaccurate, leading to discrepancies with financial records.
  • Impacted Requirements: Compliance with federal grant reporting requirements was compromised, risking noncompliance and potential funding adjustments.
  • Recommended Follow-Up: The Town should enhance review and approval processes to ensure all expenses are accurately reported and documented.

Finding Text

Assistance Listing: 21.027 Federal Program: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of the Treasury Award Year: 2025 Criteria: According to federal grant reporting requirements, all expenses on the Project & Expenditure Report submission must be complete, accurate, and properly supported by documentation. Accurate reporting is essential to comply with federal regulations and to ensure transparency in financial reporting. Condition: The reported expenses did not accurately reflect the underlying financial records resulting in discrepancies between the submission and the financial statements. Cause: The Town did not have proper controls in place to detect and correct errors in the federal submission process. Effect: Misstated expenses could lead to noncompliance with federal award requirements, potential funding adjustments, and increased risk of audit findings. Inaccurate reporting may also impact financial decision-making and reduce confidence in the Town’s financial statements. Questioned Cost Amount: Not Applicable. Context: During the year, the Town reported the grant as fully expended on its annual Project & Expenditure Report submission , however $104,345 of grant funds remained to be spent. Recommendation: We recommend the Town implement strengthened review and approval procedures to ensure all reported expenses are complete and accurate. Management’s Response: The Town of West Point’s Management has received and reviewed the Schedule of Findings provided by Robinson, Farmer, Cox Associates and has developed a corrective action plan in response to those findings. A copy of our detailed plan has been made available to the Town Council and the auditors.

Corrective Action Plan

The audit finding regarding the ARPA reporting has been reviewed & acknowledged. In the future, the report will be carefully inspected to make sure all figures are correct at the time of the filing. In addition, this reporting for ARPA will be wrapping up shortly since the program is nearing completion.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $430,686
10.555 NATIONAL SCHOOL LUNCH PROGRAM $243,057
84.027 SPECIAL EDUCATION GRANTS TO STATES $169,706
10.553 SCHOOL BREAKFAST PROGRAM $108,598
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $83,080
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $20,000
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $17,908
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $15,960
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $6,001
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $4,393