FAC Explorer

Finding 1235862 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-09-21
Audit: 411493
Organization: CITY OF ROSHOLT (SD)
Auditor: INDEPENDENT AUDIT SERVICES PC

AI Summary

  • Core Issue: 2024 federal expenditures exceeded the $750,000 threshold due to a 2023 expense being reported in 2024.
  • Impacted Requirements: This situation triggers the need for a Single Audit because of the cash basis accounting method used.
  • Recommended Follow-Up: Review accounting practices to ensure proper reporting and avoid exceeding thresholds in future periods.

Finding Text

Of the $752,500 federal expenditures reported in 2024 for this grant $273,420 of that amount was actually expended in 2023 but was not reimbursed until 2024. Because the Town is on a cash basis of accounting, this reimbursement required the 2023 expenditure to be reported in 2024, which then caused 2024 federal expenditures to exceed the $750,000, the threshold for a Single Audit.

Corrective Action Plan

The Town will develop internal controls sufficient to ensure that compliance with future Single Audit report filing deadlines are met.

Categories

Cash Management

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $752,500