Finding 1229918 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-09-16

AI Summary

  • Core Issue: The Town failed to submit the single audit reporting package and data collection form to the Federal Audit Clearinghouse on time.
  • Impacted Requirements: This noncompliance violates the Uniform Guidance, which mandates submission within 30 days of report receipt or nine months after the audit period ends.
  • Recommended Follow-Up: Ensure timely completion of audits and submissions by working with a third-party CPA to meet reporting deadlines.

Finding Text

Finding 2025-002 Federal Audit Clearinghouse Reporting Name of Federal Agency: U. S. Department of the Treasury Pass-through Entity: South Carolina Rural Infrastructure Authority (RIA) COVID-19 Program: Yes Assistance Federal Listing Award Number Number Program Title 21.027 A-23-C185, R-13-C185 Covid-19 - Wastewater System Improvements Criteria or specific requirement: In accordance with the Uniform Guidance, the single audit reporting package and data collection form are to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after these reports are received or nine months after the end of the audit period (June 30, 2026). Condition: The single audit reporting package and data collection form were not submitted to the Federal Audit Clearinghouse within the required time frame. Cause of condition: The previous accountant hired by the Town did not perform all activities required by the agreement, and was replaced. At the time the accountant was replaced, the time period had passed for submission to the Federal Audit Clearinghouse. Potential effect of condition: This condition results in a noncompliance finding for the period under audit. Questioned Costs: None Repeat finding: No Recommendation: We recommend the Town complete required audits and submit the single audit reporting package and data collection form in accordance with the Uniform Guidance requirements. Response of responsible Town official: Town Management has obtained a third-party Certified Public Accountant, who will monitor and assist with bookkeeping for Federal awards, and in complying with the required reporting submission dates to the Federal Audit Clearinghouse. Auditor Response: Auditor concurs.

Corrective Action Plan

Finding 2025-002 Federal Audit Clearinghouse Reporting Finding: The single audit reporting package and data collection form were not submitted to the Federal Audit Clearinghouse within the required timeframe established by the Uniform Guidance. Corrective Action The Town will implement procedures to ensure timely completion of audits, and submission of future Single Audit reporting requirements by: 1. Assigning responsibility for monitoring federal reporting deadlines to the Town Administrator. 2. Utilizing the services of the Town's contracted CPA to assist management in monitoring audit progress and ensuring all required reports are submitted within the timeframe required by 2 CFR §200.512. 3. Providing periodic updates to Town Council regarding the status of federal compliance requirements and reporting deadlines. Responsible Official Town Administrator Anticipated Completion Date Immediately implemented and fully operational by December 31, 2026. Current Status The Town has retained a third-party Certified Public Accountant to assist with bookkeeping, compliance monitoring, and timely submission of required reports to the Federal Audit Clearinghouse.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1229917 2025-001
    Material Weakness Repeat
  • 1229919 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.91M