Finding 576024 (2023-002)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-09-09
Audit: 365912
Organization: City of Hartwell, Georgia (GA)

AI Summary

  • Core Issue: The City did not accurately or completely present federal expenditures on the Schedule of Expenditures of Federal Awards, violating Uniform Guidance requirements.
  • Impacted Requirements: The failure to comply with 2 CFR §200.510(b) means the City is not meeting the necessary standards for federal expenditure reporting.
  • Recommended Follow-up: Implement a policy to ensure federal expenditures are recorded on the Schedule during drawdown requests, and review compliance with Title 2 U.S. Code of Regulations to avoid repeat findings.

Finding Text

Preparation of Schedule of Expenditures of Federal Awards Federal Agency and Pass-through Entity: U.S. Environmental Protection Agency – Georgia Environmental Finance Authority Program Title/Cluster: Clean Water State Revolving Fund Cluster (CWSRF) Criteria: The Schedule of Expenditures of Federal Awards is a supplemental schedule to the financial statements required to be produced when the entity is subject to a single audit. The single audit requirement is triggered when the federal expenditures reported on the Schedule of Expenditures of Federal Awards exceed $750,000 or more within an entity’s fiscal year. Uniform Guidance 2 CFR §200.510(b) states “The auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with §200.502.” Condition: For the year ended December 31, 2023, the City kept records of all expenditures and receipts of funding from drawdown requests together with support of payments and deposits of funds related to all federal expenditures but did not present those expenditures correctly or completely on a Schedule of Expenditure of Federal Awards that met minimum requirements as established by Uniform Guidance 2 CFR §200.510(b). Effect: An accurate representation of total federal expenditures for the fiscal year is required to clearly identify federal expenditures for the audit period. The absence of a complete and accurate Schedule of Expenditures of Federal Awards for the audit period is noncompliant with the requirements set forth under Uniform Guidance 2 CFR §200.510(b) but does not constitute a significant deficiency or material weakness in internal control over compliance. Questioned Costs: None reported. Recommendation: The City should implement a policy requiring entry of any federal expenditures to the Schedule of Expenditures of Federal Awards as part of the drawdown or pay request processes when submitting expenditures to the Federal Agency or Pass-through Entity providing funding. The procedures should be followed consistently to ensure that federal funds are appropriately accounted for and clearly identifiable for the period in which they occurred. The City of Hartwell should refer to the compliance requirements of Title 2 U.S. Code of Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, and ensure the City meets the minimum Schedule of Expenditures of Federal Awards requirements as described in 2 CFR §200.510(b). Status: This finding is a repeat from the prior year’s issue, indicating that the corrective actions recommended in the previous audit were not fully implemented.

Corrective Action Plan

Clean Water State Revolving Fund – ALN: 66.458 Finding: Schedule of Expenditures of Federal Awards Preparation Recommendation: Procedures should be implemented to ensure completion of an entry to the Schedule of Federal Expenditures of Federal Awards to achieve a reliable reporting of total expenditures for an audit period. Action Taken: The City of Hartwell recognizes its responsibility to prepare and present an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with Uniform Guidance. To address this finding, the City will implement formal written procedures for the preparation and review of the SEFA.

Categories

Subrecipient Monitoring Cash Management Material Weakness Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
66.458 Clean Water State Revolving Fund $7.73M