Finding 973004 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-05-13
Audit: 306137
Organization: City of Lake Worth Beach (FL)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The City failed to submit its annual audit package and data collection form on time for fiscal years 2022 and 2021.
  • Impacted Requirements: This delay violates Uniform Guidance, which mandates submission within 30 days of receiving auditor reports or 9 months after the fiscal year ends.
  • Recommended Follow-Up: Implement internal controls to ensure timely submissions in the future, and monitor progress with new personnel in the finance department.

Finding Text

IC 2022-002 – Data Collection Form Criteria: Uniform Guidance requires that the City’s annual audit package and data collection form are required to be submitted to the federal audit clearinghouse within 30 days after receipt of the auditor’s reports or 9 months after the end of the City’s fiscal year, whichever comes first. Condition: The City’s audit package and data collection form for the years ended September 30, 2022 and 2021, were not submitted timely to the federal audit clearinghouse. Context: See “Condition” above. Cause: Employee turnover at the City delayed the completion of the City’s annual audits. Effect: Failure to submit the annual audit package and data collection form to the federal audit clearinghouse in a timely manner resulted in the auditee being a high-risk auditee for fiscal years 2023 and 2024. This could also result in a loss of future grant funding. Recommendation: We recommend that the City establish internal control policies and procedures to allow for the timely submission of the City’s annual audit package and data collection form to the federal audit clearinghouse on an ongoing basis. Views of Responsible Officials and Planned Corrective Action: Management accepts the finding and recommendation. During fiscal year 2023, the finance department hired additional personnel to assist with the completion of the year-end closing processes and procedures. We have discussed with employees the importance of timely submission of the City’s annual audit package and data collection form to the federal audit clearinghouse on an ongoing basis.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 396562 2022-002
    Significant Deficiency
  • 396563 2022-002
    Significant Deficiency
  • 396564 2022-002
    Significant Deficiency
  • 396565 2022-002
    Significant Deficiency
  • 396566 2022-002
    Significant Deficiency
  • 396567 2022-002
    Significant Deficiency
  • 396568 2022-002
    Significant Deficiency
  • 973005 2022-002
    Significant Deficiency
  • 973006 2022-002
    Significant Deficiency
  • 973007 2022-002
    Significant Deficiency
  • 973008 2022-002
    Significant Deficiency
  • 973009 2022-002
    Significant Deficiency
  • 973010 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $3.02M
21.027 Coronavirus State and Local Fiscal Recovery Funds $908,950
20.205 Highway Planning and Construction $432,657
14.218 Community Development Block Grants/entitlement Grants $310,596
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $173,159
16.738 Edward Byrne Memorial Justice Assistance Grant Program $16,664
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $562