Finding Text
Finding - Item 2021-01 Reporting under Government Auditing Standards
Finding - Item 2021-01 Major Federal Award Program Audit
Annual Audits
U.S. Department of Homeland Security
Disaster Grants Public Assistance - CFDA Number 97.036
U.S Department of Transportation
Highway Planning and Construction - CFDA Number 20.205Statement of Condition: The required annual audits of the financial statements for the years
ended June 30, 2021 and 2022 were not completed and submitted to the federal and state
governments within the time frames required by Federal Regulations and the State of Georgia.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) require that grant
recipients that expend $750,000 or more in federal awards in a fiscal year must have a single audit
conducted in accordance with 45 CFR Part 75, Subpart F and submit the related audit reports
electronically to the Federal Audit Clearinghouse within the specified time frame. The Official Code
of Georgia, Annotated (O.C.G.A) §36-81-7 requires an annual audit of the financial affairs,
transactions of all funds and activities of the local government for each fiscal year of the local
government. The audit report must contain financial statements prepared in conformity with
generally accepted governmental accounting principles.· The annual audit report of the local
government shall be completed and a copy forwarded to the state auditor within 189 days after the
close of the local government's fiscal year end.
Effect of Condition: The City is not in compliance with federal and state reporting requirements.
Cause of Condition: During the years in question, the City experienced disruption in normal
business operation due to personnel affected by the COVID 19 pandemic. Regular meetings and
communications were limited. During this time, the City did not have an assigned coordinator to
insure that the audit contracts were awarded, completed and submitted timely.
Recommendation: We recommend that all financial reporting and submission requirements and
deadlines required by federal and state regulation be adhered to for future periods.
Management's Response: The City concurs with the finding.
The City engaged a public accounting firm to audit the financial statements for fiscal years ended
June 30, 2021 and 2022. The audit of the financial statements for the fiscal year ended June 30,
2021 has been completed and will be submitted, as required, in the next 30 days. The audit of the
financial statements of the fiscal year ended June 30, 2022 is in process.