Finding 1181713 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-20
Audit: 392973
Organization: City of Nicholasville, Kentucky (KY)

AI Summary

  • Core Issue: The annual compliance report inaccurately overstated expenditures due to incorrect data sources.
  • Impacted Requirements: The report must include a total of all current period ARPA expenditures as per program guidelines.
  • Recommended Follow-Up: Reconcile the annual report with the general ledger and ensure all current expenditures are accurately reflected by April 30, 2026.

Finding Text

Condition: The annual compliance report included certain general fund expenditures. Criteria: The program requires an annual compliance report including a total of all current period ARPA expenditures. Cause: Accounting's records were not used as the data source for the report. Effect: The current expenditures in the annual compliance report were overstated. Context: Only an annual report is required under the program for the City. The auditor selected the annual report for testing. Recommendation: The annual compliance report should be reconciled to the general ledger and include all current period expenditures based on the date when goods and services were provided. Changes and revisions to previously filed annual reports will need to be reflected in the next annual report due April 30, 2026.

Corrective Action Plan

The records maintained by the accounting department, including the general ledger, will be used to prepare future reports.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
16.922 EQUITABLE SHARING PROGRAM $256,887
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $248,065
21.016 EQUITABLE SHARING $95,591
20.205 HIGHWAY PLANNING AND CONSTRUCTION $29,135
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $2,163
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $190