Finding 1224558 (2025-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-23
Audit: 407810
Organization: City of Shepherdsville (KY)
Auditor: LBMC PC

AI Summary

  • Issue: The City missed the deadline for completing the Single Audit.
  • Requirements Impacted: Reports must be submitted within nine months after the fiscal year-end as per federal regulations.
  • Follow-Up: The City needs to establish better controls to ensure timely filing of federal financial reports.

Finding Text

Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 Questioned Costs: $0 Condi􀆟on: The Single Audit was not completed by the deadline. Criteria: Single audit reporting packages must have a report date no later than nine months after the fiscal year‐end (2 CFR Part 200 Subpart F). Cause: The City continued to experience delays in its financial reporting and completion of audits since 2020 when the City faced staffing difficulties. Effect: The City was not in compliance with federal regulations and guidelines for the single audit submission. Recommendation: The City should implement controls for filing federal financial reports in a timely manner. Management’s Response and Planned Correc􀆟ve Action: Timeliness and accuracy of financial information should improve as other recommendations are implemented.

Corrective Action Plan

The Single Audit was not completed and submitted within the required timeframe due to a combination of factors, including delays in submitting supporting documentation, and staffing constraints due to implementing new payroll software during the audit. Management has completed the FY2025 audit and issued the financial statements. To prevent recurrence the city has established earlier deadlines for the completion of year end close, federal award schedules, and supporting documentation along with periodic progress reviews with external auditors. Effectiveness will be measured by timely issuance of audited financial statements in accordance with all regulatory and stakeholder requirements beginning with the FY2026 audit cycle. Angela Middaugh, the Director of Finance of the City, will be responsible for monitoring progress and allocating the necessary resources for timely issuance.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.22M
97.083 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) $1.27M