EIN: 726000607
UEI: EC1NUYTMV6M7
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 8, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 8, 2026 (142 days ago).
What is a management decision? →2024-014 Noncompliance with Suspension and Debarment Requirements Grantor Environmental Protection Agency – Assistance Listing 66.458 Clear Water State Revolving Fund Passed through Louisiana Department of Environmental Quality – Number CS-221732.01 Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town failed to establish a policy to outline procedures to be completed to identify contractors that are suspended or debarred. Additionally, the construction contract did not include a compliance clause in the contract, the Town did not obtain certifications from contractors regarding their suspension or debarment status, nor did it document searches conducted in the System for Award Management (SAM) Exclusions to verify contractor eligibility. We did search the list and did not find the contractor. Criteria According to the Uniform Guidance, nonfederal entities must verify that contractors are not suspended, debarred, or otherwise excluded from participating in federal programs. This can be achieved by checking the SAM Exclusions, obtaining a certification from the contractor, or including a compliance clause in the contract. Furthermore, entities must document the verification process. Cause The Town did not have adequate procedures in place to ensure compliance with federal suspension and debarment requirements. Effect The lack of proper verification and documentation could result in the Town engaging with ineligible contractors, potentially leading to noncompliance with federal regulations and jeopardizing federal funding. Questioned Costs None Recommendation It is recommended that the Town develop and implement a policy to verify the suspension and debarment status of contractors. This policy should include procedures for checking the SAM Exclusions, obtaining necessary certifications, and documenting the verification process. Additionally, training should be provided to staff responsible for procurement to ensure understanding and compliance with these requirements. Management Response See management’s corrective action plan.
Show full finding ▾Hide full finding ▴2024-014 Noncompliance with Suspension and Debarment Requirements Grantor Environmental Protection Agency – Assistance Listing 66.458 Clear Water State Revolving Fund Passed through Louisiana Department of Environmental Quality – Number CS-221732.01 Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town failed to establish a policy to outline procedures to be completed to identify contractors that are suspended or debarred. Additionally, the construction contract did not include a compliance clause in the contract, the Town did not obtain certifications from contractors regarding their suspension or debarment status, nor did it document searches conducted in the System for Award Management (SAM) Exclusions to verify contractor eligibility. We did search the list and did not find the contractor. Criteria According to the Uniform Guidance, nonfederal entities must verify that contractors are not suspended, debarred, or otherwise excluded from participating in federal programs. This can be achieved by checking the SAM Exclusions, obtaining a certification from the contractor, or including a compliance clause in the contract. Furthermore, entities must document the verification process. Cause The Town did not have adequate procedures in place to ensure compliance with federal suspension and debarment requirements. Effect The lack of proper verification and documentation could result in the Town engaging with ineligible contractors, potentially leading to noncompliance with federal regulations and jeopardizing federal funding. Questioned Costs None Recommendation It is recommended that the Town develop and implement a policy to verify the suspension and debarment status of contractors. This policy should include procedures for checking the SAM Exclusions, obtaining necessary certifications, and documenting the verification process. Additionally, training should be provided to staff responsible for procurement to ensure understanding and compliance with these requirements. Management Response See management’s corrective action plan.
Policy Implementation: The Town is developing and implementing a written internal policy and checklist to ensure full compliance with suspension and debarment requirements for all federally funded projects. This policy will include procedures for: o Conducting and documenting searches in the SAM.gov Exclusions system, o Requiring written certifications from all contractors and subcontractors, and o Ensuring that federal compliance clauses are incorporated in all future contracts funded with federal dollars. 2. Engineering Oversight Coordination: The Town acknowledges that coordination with its contracted engineering firm(s) is essential in maintaining federal compliance. Moving forward, we will work closely with our engineers to verify and document that all contractors and subcontractors meet federal eligibility requirements prior to award and contract execution. 3. Training and Compliance Awareness: The Town will ensure that applicable municipal personnel, as well as project managers working with federal grant funds, receive training or instruction on Uniform Guidance procurement standards, including suspension and debarment protocols.
2024-015 Noncompliance with Cash Management Requirements Grantor Environmental Protection Agency – Assistance Listing 66.458 Clear Water State Revolving Fund Passed through Louisiana Department of Environmental Quality – Number CS-221732.01 Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town allowed an excessive number of days to lapse between the receipt of federal funds and the subsequent payment to the engineer and contractor. This delay in disbursement is not in compliance with the cash management requirements. During the year ended June 30, 2024, the Town received funds three times as follows: Criteria According to the Uniform Guidance, nonfederal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and the disbursement by the nonfederal entity for direct program or project costs and the proportionate share of allowable indirect costs. Cause The Town did not have adequate procedures in place to ensure timely disbursement of federal funds upon receipt. Effect The delay in disbursement could result in inefficient use of federal funds and potential noncompliance with federal cash management requirements, which may lead to financial penalties or interest liabilities. Questioned Costs $311,159 Recommendation It is recommended that the Town develop and implement procedures to ensure that federal funds are disbursed promptly upon receipt. This may include setting specific timelines for processing payments and monitoring compliance with these timelines. Additionally, training should be provided to staff responsible for cash management to ensure understanding and adherence to these requirements. Management Response See management’s corrective action plan.
Show full finding ▾Hide full finding ▴2024-015 Noncompliance with Cash Management Requirements Grantor Environmental Protection Agency – Assistance Listing 66.458 Clear Water State Revolving Fund Passed through Louisiana Department of Environmental Quality – Number CS-221732.01 Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town allowed an excessive number of days to lapse between the receipt of federal funds and the subsequent payment to the engineer and contractor. This delay in disbursement is not in compliance with the cash management requirements. During the year ended June 30, 2024, the Town received funds three times as follows: Criteria According to the Uniform Guidance, nonfederal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and the disbursement by the nonfederal entity for direct program or project costs and the proportionate share of allowable indirect costs. Cause The Town did not have adequate procedures in place to ensure timely disbursement of federal funds upon receipt. Effect The delay in disbursement could result in inefficient use of federal funds and potential noncompliance with federal cash management requirements, which may lead to financial penalties or interest liabilities. Questioned Costs $311,159 Recommendation It is recommended that the Town develop and implement procedures to ensure that federal funds are disbursed promptly upon receipt. This may include setting specific timelines for processing payments and monitoring compliance with these timelines. Additionally, training should be provided to staff responsible for cash management to ensure understanding and adherence to these requirements. Management Response See management’s corrective action plan.
The Town of Jonesboro respectfully disagrees with this finding as presented. While the audit notes delays between the receipt of federal funds and their disbursement, the Town asserts that it is not responsible for managing or operating the federal financial system that governs the authorization, disbursement, or scheduling of funds related to the referenced grant. The Louisiana Department of Environmental Quality (LDEQ) and other relevant governmental entities manage the disbursement platform used for this grant, and Town personnel do not have direct administrative control over its structure or scheduling capabilities. Furthermore, Town staff have not received adequate training or guidance from state or federal administrators regarding the procedural requirements or compliance timelines for the Clear Water State Revolving Fund (CWSRF) program. Despite these limitations, the Town remains fully committed to compliance with federal cash management standards and the Uniform Guidance (2 CFR § 200.305), which requires recipients to minimize the time elapsing between the receipt and disbursement of federal funds. To that end, the Town will take the following corrective actions: 1. Formal Communication with Program Administrators: The Town will engage the appropriate contacts at the Louisiana Department of Environmental Quality and relevant federal partners to clarify disbursement protocols, timelines, and responsibilities under the CWSRF program. 2. Staff Training and Coordination: The Town will coordinate with the LDEQ and/or EPA to request or arrange formal training for municipal staff involved in the administration of federal grant funds, with a focus on cash management and financial compliance procedures. 3. Procedure Development: Following training and clarification from the funding agencies, the Town will develop internal procedures and documentation protocols to ensure that federal funds are disbursed as promptly as administratively possible upon receipt. The Town of Jonesboro affirms its commitment to fiscal transparency, accountability, and compliance with all applicable state and federal grant management requirements. We look forward to working collaboratively with our state and federal partners to improve administrative performance in all future program years.
2024-016 Noncompliance with Build America, Buy America Act (BABA) Requirements Grantor Environmental Protection Agency – Assistance Listing 66.458 Clear Water State Revolving Fund Passed through Louisiana Department of Environmental Quality – Number CS-221732.01 Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town failed to include any provisions or policies related to the Build America, Buy America Act (BABA) in their procurement policies. Additionally, the Town did not document any procedures performed to ensure compliance with BABA requirements for federally funded infrastructure projects. Criteria The BABA Act requires that all iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects be produced in the United States. These requirements must be incorporated into the terms and conditions of each award with an infrastructure project. Cause The Town did not update its procurement policies and procedures to reflect the requirements of the BABA Act, possibly due to a lack of awareness or understanding of the new regulations. Effect The absence of BABA-related policies and procedures could result in noncompliance with federal requirements, potentially leading to the use of non-domestic materials in infrastructure projects and jeopardizing federal funding. Questioned Costs None Recommendation It is recommended that the Town revise its procurement policies to include the requirements of the BABA Act. This should involve developing and documenting procedures to ensure that all materials used in federally funded infrastructure projects comply with BABA requirements. Training should also be provided to relevant staff to ensure understanding and compliance with these requirements. Management Response See management’s corrective action plan.
Show full finding ▾Hide full finding ▴2024-016 Noncompliance with Build America, Buy America Act (BABA) Requirements Grantor Environmental Protection Agency – Assistance Listing 66.458 Clear Water State Revolving Fund Passed through Louisiana Department of Environmental Quality – Number CS-221732.01 Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town failed to include any provisions or policies related to the Build America, Buy America Act (BABA) in their procurement policies. Additionally, the Town did not document any procedures performed to ensure compliance with BABA requirements for federally funded infrastructure projects. Criteria The BABA Act requires that all iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects be produced in the United States. These requirements must be incorporated into the terms and conditions of each award with an infrastructure project. Cause The Town did not update its procurement policies and procedures to reflect the requirements of the BABA Act, possibly due to a lack of awareness or understanding of the new regulations. Effect The absence of BABA-related policies and procedures could result in noncompliance with federal requirements, potentially leading to the use of non-domestic materials in infrastructure projects and jeopardizing federal funding. Questioned Costs None Recommendation It is recommended that the Town revise its procurement policies to include the requirements of the BABA Act. This should involve developing and documenting procedures to ensure that all materials used in federally funded infrastructure projects comply with BABA requirements. Training should also be provided to relevant staff to ensure understanding and compliance with these requirements. Management Response See management’s corrective action plan.
The Town of Jonesboro respectfully disagrees with the characterization of this finding. While the Build America, Buy America Act (BABA) has been in effect since November 2021, the Town has not received any prior audit findings or notices of noncompliance related to BABA in previous grant cycles or during past administrations. To date, there has been no formal 113 notification or technical assistance provided by federal or state agencies to guide the Town in implementing these requirements in its procurement policies. Nevertheless, the Town fully understands the intent and importance of the BABA provisions, which aim to promote domestic manufacturing and ensure compliance in the use of materials for federally funded infrastructure projects. In light of this finding, the Town will take the following corrective actions: 1. Policy and Procedure Updates: The Town will revise its existing procurement policies to explicitly include compliance requirements for the Build America, Buy America Act, including the use of U.S.-produced iron, steel, manufactured products, and construction materials in all federally funded infrastructure projects. 2. Training and Awareness: Staff involved in procurement, grant administration, and capital infrastructure will undergo appropriate training to ensure a clear understanding of BABA regulations and documentation requirements. The Town will also coordinate with the Louisiana Department of Environmental Quality and the Environmental Protection Agency to obtain relevant training materials and compliance tools. 3. Future Audit Integration: Although the Town has not previously received findings related to BABA, this issue will now be incorporated into internal compliance checklists and future audit procedures to ensure consistent adherence going forward. The Town of Jonesboro is committed to full compliance with federal funding regulations and will implement all necessary improvements to ensure that future federally funded projects align with BABA requirements.
2024-017 Noncompliance with Allowable Costs Requirements - Duplicate Payments Grantor Department of Treasury - Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town used $53,786 from the 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program to match expenditures in another federal program that is not a major program. This amount was subsequently reimbursed by the other federal program, resulting in a duplicate payment. Criteria According to the cost principles outlined in 2 CFR part 200, subpart E, costs charged to federal awards must be necessary, reasonable, and allocable to the federal award. Costs must not include improper payments, such as duplicate payments, which are payments made more than once for the same good or service. Cause The Town did not have adequate controls in place to prevent the use of SLFRF funds for expenditures that were subsequently reimbursed by another federal program, leading to a duplicate payment. Effect The Town's use of SLFRF funds for expenditures that were reimbursed by another federal program resulted in noncompliance with the allowable costs requirements, specifically the prohibition of duplicate payments. The Town may be required to return the funds. Questioned Costs $53,786 Recommendation The Town should implement stronger internal controls to ensure that costs charged to federal awards do not include duplicate payments. This includes verifying that expenditures reimbursed by other federal programs are not also charged to the SLFRF program. Management's Response See management’s corrective action plan.
Show full finding ▾Hide full finding ▴2024-017 Noncompliance with Allowable Costs Requirements - Duplicate Payments Grantor Department of Treasury - Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town used $53,786 from the 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program to match expenditures in another federal program that is not a major program. This amount was subsequently reimbursed by the other federal program, resulting in a duplicate payment. Criteria According to the cost principles outlined in 2 CFR part 200, subpart E, costs charged to federal awards must be necessary, reasonable, and allocable to the federal award. Costs must not include improper payments, such as duplicate payments, which are payments made more than once for the same good or service. Cause The Town did not have adequate controls in place to prevent the use of SLFRF funds for expenditures that were subsequently reimbursed by another federal program, leading to a duplicate payment. Effect The Town's use of SLFRF funds for expenditures that were reimbursed by another federal program resulted in noncompliance with the allowable costs requirements, specifically the prohibition of duplicate payments. The Town may be required to return the funds. Questioned Costs $53,786 Recommendation The Town should implement stronger internal controls to ensure that costs charged to federal awards do not include duplicate payments. This includes verifying that expenditures reimbursed by other federal programs are not also charged to the SLFRF program. Management's Response See management’s corrective action plan.
The Town of Jonesboro acknowledges this audit finding and concurs with the conclusion that a duplicate payment occurred in connection with the use of $53,786 in funds from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The duplicate payment resulted from the same expenditure being reimbursed by a second federal program that was not designated as a major program. While this incident was unintentional and due to a lack of centralized grant tracking at the time, the Town has taken corrective action to prevent such issues from occurring in the future. Specifically: 1. Implementation of a Grant Award Management System: The Town is currently deploying a formal grant tracking and reconciliation system that will provide centralized oversight of all grant awards, expenditures, and reimbursements. This system is designed to prevent overlapping or duplicative claims across funding sources and will be supported by enhanced documentation and review protocols. 2. Internal Controls and Policy Enhancements: In response to this finding, the Town has updated its grant management policies and internal accounting procedures to include specific verification steps prior to submitting reimbursement requests. These policies now require: o Cross-checking all grant reimbursements against prior or pending claims, o Documenting funding source allocation for each expenditure, o Requiring dual review by finance and grants administration staff. 3. Staff Training and Grant Oversight: Personnel involved in grant administration and finance have received and will continue to receive training on federal allowable cost principles under 2 CFR Part 200, Subpart E. The Town is committed to maintaining compliance with all federal funding requirements and is actively working to reinforce accountability and transparency in its use of public funds. The Town will coordinate with the appropriate federal and state authorities to resolve any remaining discrepancies and, if necessary, return funds that have been deemed ineligible or duplicated.
2024-018 Noncompliance with Procurement Requirements Grantor Department of Treasury - Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition During the audit of the procurement processes, it was identified that the Town may not have fully complied with the federal regulations governing procurement. During the year ended December 31, 2024, the Town paid one contractor a sum of $85,476 for water and sewer system repairs as necessary. The Town did not provide a contract for audit or evidence that it obtained price or rate quotations from an adequate number of qualified sources. Criteria Federal regulations generally require procurement transactions to be conducted in a manner that provides full and open competition, unless specific exceptions apply. Contracts are typically necessary to formalize the procurement relationship and ensure compliance with federal statutes, regulations, and the terms and conditions of a federal award. According to 2 CFR section 200.320, the micro-purchase method allows for procurements where the aggregate dollar amount does not exceed $10,000, and these purchases may be awarded without soliciting competitive quotations if the nonfederal entity considers the price to be reasonable. For small purchase procedures, which apply to purchases exceeding the micro-purchase amount but not exceeding the simplified acquisition threshold of $250,000, price or rate quotations must be obtained from an adequate number of qualified sources. Cause Management believed the requirement for small purchases did not apply to routine water and sewer system repairs since the individual invoices did not exceed $10,000 in most cases. Effect Noncompliance may lead to the disallowance of costs, where the federal agency may refuse to reimburse noncompliant costs or require refunds. Questioned Costs $85,476 Recommendation To ensure compliance with federal procurement standards, it is recommended that the Town implement procedures to ensure that price or rate quotations are obtained from an adequate number of qualified sources for all small purchases, thereby promoting full and open competition. Management's Response See management’s corrective action plan.
Show full finding ▾Hide full finding ▴2024-018 Noncompliance with Procurement Requirements Grantor Department of Treasury - Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition During the audit of the procurement processes, it was identified that the Town may not have fully complied with the federal regulations governing procurement. During the year ended December 31, 2024, the Town paid one contractor a sum of $85,476 for water and sewer system repairs as necessary. The Town did not provide a contract for audit or evidence that it obtained price or rate quotations from an adequate number of qualified sources. Criteria Federal regulations generally require procurement transactions to be conducted in a manner that provides full and open competition, unless specific exceptions apply. Contracts are typically necessary to formalize the procurement relationship and ensure compliance with federal statutes, regulations, and the terms and conditions of a federal award. According to 2 CFR section 200.320, the micro-purchase method allows for procurements where the aggregate dollar amount does not exceed $10,000, and these purchases may be awarded without soliciting competitive quotations if the nonfederal entity considers the price to be reasonable. For small purchase procedures, which apply to purchases exceeding the micro-purchase amount but not exceeding the simplified acquisition threshold of $250,000, price or rate quotations must be obtained from an adequate number of qualified sources. Cause Management believed the requirement for small purchases did not apply to routine water and sewer system repairs since the individual invoices did not exceed $10,000 in most cases. Effect Noncompliance may lead to the disallowance of costs, where the federal agency may refuse to reimburse noncompliant costs or require refunds. Questioned Costs $85,476 Recommendation To ensure compliance with federal procurement standards, it is recommended that the Town implement procedures to ensure that price or rate quotations are obtained from an adequate number of qualified sources for all small purchases, thereby promoting full and open competition. Management's Response See management’s corrective action plan.
The Town of Jonesboro acknowledges the audit finding and appreciates the opportunity to provide clarification regarding the cited payment of $85,476 to a contractor for water and sewer system repairs. This particular contractor had a long-standing relationship with the previous administration and continued to submit invoices for services claimed to have been performed under prior authorizations. Upon assuming office, the current administration encountered a backlog of such invoices and, in many cases, limited to no documentation supporting the scope, schedule, or verification of the work that was allegedly completed. Due to the lack of transparency, inconsistent billing, and insufficient oversight, the current administration determined that it was not in the best financial or operational interest of the Town to continue any further engagement with this contractor. It became clear that the pattern of invoicing presented a risk of noncompliance and potentially unsupported expenditures. As a corrective measure, the Town took the following actions: 1. Final Settlement and Termination of Relationship: The Town made a one-time payment to settle the outstanding invoice history. This was done to clear any disputed or lingering financial obligations associated with the contractor’s services under the previous administration. 2. Legal Closure with Notarized Certification: The Town required and obtained a notarized letter from the contractor affirming that no additional payments are owed and that all contractual or informal claims have been resolved in full. This was done to ensure finality and mitigate any future risk or liability. 115 3. Policy Reaffirmation: The Town affirms its commitment to federal procurement regulations, specifically those set forth under 2 CFR § 200.320. Current procedures now mandate that all purchases exceeding the micro-purchase threshold undergo proper procurement documentation, including solicitation of price or rate quotations from multiple qualified vendors. Moving forward, the Town has ensured all vendors and contractors are engaged under transparent, documented, and compliant procurement procedures. This administration remains dedicated to restoring public trust and operating under full compliance with federal, state, and local purchasing regulations.
2024-019 Non-Compliance with Reporting Requirements for SLFRF Program Grantor Department of Treasury - Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town did not provide the auditor with any reports for the State and Local Fiscal Recovery Funds (SLFRF) program for the year ended June 30, 2024. Criteria Entities receiving funds under the State and Local Fiscal Recovery Funds (SLFRF) program are required to submit performance reports at least annually. These reports must be prepared in a format authorized by the Office of Management and Budget (OMB). Cause The failure may be due to a lack of understanding of the reporting requirements or inadequate internal controls over financial reporting. Effect The absence of the required reports impedes the auditor's ability to verify the proper use of SLFRF funds and assess compliance with federal requirements. This non-compliance could result in questioned costs and potential repercussions from federal oversight bodies. Questioned Costs None Recommendation In the immediate future, we recommend the following: 1. Seek an Extension: Contact the cognizant or oversight agency for audit to request an extension. Extensions may be granted if the original deadline imposes an undue burden on the Town. 2. Communicate with the Agency: Explain the reasons for the delay to the relevant agency and seek guidance on corrective actions. This communication can help in obtaining an extension or understanding any penalties. 3. Submit the Report Promptly: Even if the deadline has been missed, submit the report as soon as possible to minimize negative consequences and demonstrate a commitment to compliance. In the future, the Town should establish and implement procedures to ensure compliance with grant reporting requirements. Management's Response See management’s corrective action plan.
Show full finding ▾Hide full finding ▴2024-019 Non-Compliance with Reporting Requirements for SLFRF Program Grantor Department of Treasury - Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town did not provide the auditor with any reports for the State and Local Fiscal Recovery Funds (SLFRF) program for the year ended June 30, 2024. Criteria Entities receiving funds under the State and Local Fiscal Recovery Funds (SLFRF) program are required to submit performance reports at least annually. These reports must be prepared in a format authorized by the Office of Management and Budget (OMB). Cause The failure may be due to a lack of understanding of the reporting requirements or inadequate internal controls over financial reporting. Effect The absence of the required reports impedes the auditor's ability to verify the proper use of SLFRF funds and assess compliance with federal requirements. This non-compliance could result in questioned costs and potential repercussions from federal oversight bodies. Questioned Costs None Recommendation In the immediate future, we recommend the following: 1. Seek an Extension: Contact the cognizant or oversight agency for audit to request an extension. Extensions may be granted if the original deadline imposes an undue burden on the Town. 2. Communicate with the Agency: Explain the reasons for the delay to the relevant agency and seek guidance on corrective actions. This communication can help in obtaining an extension or understanding any penalties. 3. Submit the Report Promptly: Even if the deadline has been missed, submit the report as soon as possible to minimize negative consequences and demonstrate a commitment to compliance. In the future, the Town should establish and implement procedures to ensure compliance with grant reporting requirements. Management's Response See management’s corrective action plan.
The Town of Jonesboro acknowledges this audit finding and concurs that, for the reporting period ending June 30, 2024, performance and financial reports required under the State and Local Fiscal Recovery Funds (SLFRF) program were not submitted to the appropriate oversight authorities nor made available to the audit team. This lapse was due in part to a lack of understanding of the federal reporting requirements and the absence of internal procedures to track and manage SLFRF reporting obligations. The Town acknowledges that this noncompliance impeded the auditor’s ability to verify program expenditures and compliance with the applicable provisions of 2 CFR Part 200 and guidance issued by the U.S. Department of the Treasury and the Office of Management and Budget (OMB). To correct and prevent future occurrences of this issue, the Town will implement the following corrective action plan: 1. Immediate Remedial Action: The Town will submit any required SLFRF reports for the 2024 program year as soon as possible, even if past the original deadline. We will also reach out to the U.S. Department of the Treasury or its designated agency to formally communicate the reason for the delay and request guidance on next steps, including potential extensions or waivers. 2. Establishment of Formal Reporting Procedures: The Town is developing internal procedures and deadlines to ensure timely submission of all future federal grant reports. These procedures will include: o A reporting calendar with submission deadlines aligned to OMB and Treasury guidance; o Assigned personnel responsibilities for data collection, performance metrics, and narrative preparation; and o Review protocols by finance and grants administration officials prior to submission. 3. Staff Training and Capacity Building: The Town will seek appropriate training from federal or state agencies or through official SLFRF guidance webinars and 116 documentation to ensure staff are fully informed of compliance and reporting responsibilities under the program.
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