Finding 1228695 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-03
Audit: 410373
Organization: City of Milton, Florida (FL)

AI Summary

  • Core Issue: The City failed to submit the Single Audit reporting package on time, violating federal requirements.
  • Impacted Requirements: Noncompliance with 2 CFR Section 200.512(a) regarding timely filing with the Federal Audit Clearinghouse.
  • Recommended Follow-Up: Improve financial reporting processes and ensure timely completion of key reconciliations to meet deadlines.

Finding Text

FINDING 2025-005 TIMELY SUBMISSION OF SINGLE AUDIT REPORTING PACKAGE - NONCOMPLIANCE Federal Program: All Programs Criteria 2 CFR Section 200.512(a) requires the reporting package and Data Collection Form (DCF) to be submitted to the Federal Audit Clearinghouse (FAC) by the earlier of 30 calendar days after the reports are received from the auditor or nine months after fiscal year end. Condition The City did not meet this filing requirement related to timely submission of the Single Audit reporting package for the fiscal year ended September 30, 2025. Cause Although the City had established policies and procedures requiring the preparation and review of key account reconciliations and financial reporting activities, those controls were not consistently performed during the fiscal year. Effect The City is not in compliance with the Uniform Guidance requirements regarding the filing of the Single Audit reporting package. Questioned Costs None Repeat Finding This is not a repeat finding. Recommendation The City should strengthen its financial reporting processes and ensure key reconciliations are completed and reviewed on a timely basis throughout the year. Timely completion of these reconciliations will assist the City in maintaining accurate accounting records, preparing reliable financial information, and meeting all statutory financial reporting deadlines. Views of Responsible Officials See management's view and corrective action plan at the end of this report.

Corrective Action Plan

FINDING 2025-005 TIMELY SUBMISSION OF SINGLE AUDIT REPORTING PACKAGE - NONCOMPLIANCE Management acknowledges the finding that City did not comply with established policies and procedures that requires the preparation and review of key account reconciliations and financial reporting activities and recognizes the importance of submitting the Single Audit reporting package and Data Collection Form within the timeframe required by 2 CFR Section 200.512(a). The delay in submitting the fiscal year 2025 Single Audit reporting package was primarily attributable to delays in completing account reconciliations and related financial reporting activities necessary to finalize the City's financial records and complete the annual audit process. As discussed in Management's responses to the related findings regarding the timeliness of reconciliations, grant revenue recognition, and annual financial report filings, the City is implementing strengthened financial reporting and grant management procedures. These corrective actions include establishing defined reconciliation procedures and completion timeframes, implementing a period-end closing checklist, strengthening grant reconciliation and reporting procedures, and providing additional oversight and training for Finance Department personnel. The new Finance Director and Comptroller will monitor the year-end closing, grant reporting, and audit preparation processes to ensure that required financial information is completed and provided to the City's independent auditors in a timely manner. Management will also monitor the submission of the Single Audit reporting package and Data Collection Form to ensure compliance with the applicable federal filing deadline. The City is committed to implementing these corrective actions to ensure that future Single Audit reporting packages are submitted to the Federal Audit Clearinghouse within the timeframe required by the Uniform Guidance.

Categories

Reporting

Other Findings in this Audit

  • 1228693 2025-004
    Material Weakness Repeat
  • 1228694 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.49M
20.708 NATURAL GAS DISTRIBUTION INFRASTRUCTURE SAFETY AND MODERNIZATION GRANT PROGRAM $1.22M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $102,337
10.664 COOPERATIVE FORESTRY ASSISTANCE $17,953
97.039 HAZARD MITIGATION GRANT $17,109