Finding 554503 (2021-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2025-04-09
Audit: 353167
Organization: City of Shepherdsville (KY)

AI Summary

  • Core Issue: The City missed the extended deadline for the single audit reporting package due to staffing challenges and inadequate controls.
  • Impacted Requirements: Noncompliance with federal regulations regarding timely submission of audit reports for the COVID-19 relief fund.
  • Recommended Follow-Up: Implement stronger controls and clear procedures for timely filing of federal financial reports to prevent future delays.

Finding Text

2021-006 Reporting Noncompliance Federal Program: 21.019 – COVID-19 - Coronavirus Relief Fund Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 and PON21122100001304 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date nine months after the fiscal year-end. Due to COVID-19 this was extended by an additional six months (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the extended deadline. Cause: Staffing difficulties, the COVID-19 pandemic, and the lack of controls in place to ensure complete and accurate information could be provided timely delayed the single audit reporting package. 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 Corrective Action: In the past few years, the city has experienced turnover in management from the City Clerk, Finance Director, and the HR Director along with being significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate procedures, and clear job duties this should no longer be an issue. The Mayor and City clerk have sent out instructions to all department heads that the documentation for all grants must be sent to the Admin Department.

Corrective Action Plan

Recommendation: The City should implement controls for filing federal financial reports in a timely manner. Management’s Response and Planned Corrective Action: In the past few years, the city has experienced turnover in management from the City Clerk, Finance Director, and the HR Director along with being significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate procedures, and clear job duties this should no longer be an issue. The Mayor and City clerk have sent out instructions to all department heads that the documentation for all grants must be sent to the Admin Department.

Categories

Reporting

Other Findings in this Audit

  • 554504 2021-006
    Material Weakness
  • 1130945 2021-006
    Material Weakness
  • 1130946 2021-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $280,124