Finding 1214481 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-05-12
Audit: 401190
Organization: City of Lake City (SC)

AI Summary

  • Issue: The City missed the deadline for the 2024 compliance report for the Coronavirus State and Local Fiscal Recovery Funds.
  • Requirements Impacted: Adequate internal controls are needed to ensure compliance with all grant requirements.
  • Recommended Follow-Up: Strengthen internal controls related to grants to ensure timely compliance with all reporting requirements.

Finding Text

CONDITION: the City failed to file its compliance report by the due date for the 2024 Coronavirus State and Local Fiscal Recovery Funds reporting requirement. CRITERIA: The City should have adequate internal controls in place to ensure that compliance requirements are met for all grants received. CONTEXT, CAUSE, AND EFFECT: The City has undergone significant staffing changes and did not submit its Coronavirus State and Local Fiscal Recovery Funds compliance report by the deadline. RECOMMENDATION: We would recommend that the City strengthen its internal controls related to grants to ensure all grant compliance requirements have been met for each grant received. RESPONSE: The City agrees with this finding and will adhere to the corrective action plan included in this audit report.

Corrective Action Plan

CONTACT PERSON: A. Nicole Verner, Finance Director, averner@cityoflakecity.org CORRECTIVE ACTION: The City acknowledges the finding regarding the failure to submit the required Coronavirus State and Local Fiscal Recovery Funds compliance report by the established deadline. Management recognizes that staffing changes contributed to a breakdown in tracking and fulfilling grant reporting requirements. To address this finding, the City is implementing enhanced grant management and compliance procedures to ensure all reporting requirements are met in a timely manner. The City will develop and maintain a centralized grants management schedule that identifies all reporting requirements, including due dates, responsible parties, and submission procedures for each grant. This schedule will be monitored regularly by management to ensure compliance. Responsibility for grant reporting will be clearly assigned to qualified personnel, and a secondary reviewer will be designated to verify that all required reports are completed accurately and submitted on time. The City will implement a formal review and approval process for all grant reports prior to submission to ensure completeness and compliance with applicable requirements. In addition, the City will establish reminder and tracking mechanisms, including calendar alerts and periodic status reviews, to prevent missed deadlines. The City will also provide training to staff responsible for grant administration to ensure a clear understanding of compliance and reporting requirements associated with federal and state funding. Management will monitor compliance with all grant reporting requirements and will take corrective action promptly if any issues are identified. PROPOSED COMPLETION DATE: June 30, 2027

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1214482 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.29M
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $1.45M
66.458 CLEAN WATER STATE REVOLVING FUND $101,328
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $70,181
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $38,300
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $28,195
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $3,687