Audit 12179

#2023-001 – Material Weakness – Inadequate Controls over Year End Accrual Process - Reporting Criteria The Commission’s controls over expenses should operate in a way to ensure its financial statements are in accordance with accounting principles generally accepted in the United States of America applicable to governmental entities (GAAP). Condition The Commission’s controls over expenses did not operate as intended to record the expenses in the correct fiscal period and on the schedule of expenditures of federal awards. Cause Adjustments were needed to record expenses are in accordance with accounting principles generally accepted in the United States of America applicable to governmental entities. Effect During the audit process, various material adjustments were proposed to the Commission’s records by the auditors. Questioned Costs None Perspective Information The finding is related only to the Abandoned Mine Land Reclamation Program. Identification as a Repeat Finding There was no similar finding in the prior year. Recommendation We recommend that the Commission evaluate their current internal controls over financial reporting and identify areas for improvement that are most important for consistent and accurate financial reporting. View of Responsible Officials and Planned Corrective Action The Commission will review its control procedures over accounts payable to verify that invoices are properly recorded in the correct fiscal year.

#2023-002 – Material Weakness – Compliance Requirement Activities - Allowed or Unallowed Abandoned Mine Land Reclamation Program 15.252 Criteria Proper internal control procedures include review and approval of expenditure documentation such as purchase orders and invoices prior to entering expenditures into the system for payment processing. Invoices should also be reviewed for mathematical accuracy to ensure that the Commission and the grant are properly charged. Condition For one of the six payments examined, there was no approval of the supporting invoice or purchase order. Approval occurred with the check signature of the Director of Administration and Finance. In addition, for two of the six payments, the invoices had mathematical errors. Cause Due to oversight, one payment was not approved in accordance with the Commission’s internal control procedures, prior to submission for payment. Additionally, the Commission does not have procedures in place to review invoices for mathematical accuracy prior to payment. Effect Lack of review and approval of invoices can result in unallowable costs charged to the grant program. Questioned Costs None Perspective Information The Commission recalculated all invoices from the vendor and noted four invoices with errors during the year ended June 30, 2023, resulting in an overcharge to the grant of $1,001. Identification as a Repeat Finding There was no similar finding in the prior year. Recommendation We recommend that the Commission approve all invoices in accordance with the Commission’s internal control procedures. We also recommend that the Commission review invoices for mathematical accuracy prior to payment. View of Responsible Officials and Planned Corrective Action The Commission has contacted the vendor to resolve the billing errors and will implement procedures internally to oversee the verification of the accuracy of invoices going forward.

#2023-001 – Material Weakness – Inadequate Controls over Year End Accrual Process - Reporting Criteria The Commission’s controls over expenses should operate in a way to ensure its financial statements are in accordance with accounting principles generally accepted in the United States of America applicable to governmental entities (GAAP). Condition The Commission’s controls over expenses did not operate as intended to record the expenses in the correct fiscal period and on the schedule of expenditures of federal awards. Cause Adjustments were needed to record expenses are in accordance with accounting principles generally accepted in the United States of America applicable to governmental entities. Effect During the audit process, various material adjustments were proposed to the Commission’s records by the auditors. Questioned Costs None Perspective Information The finding is related only to the Abandoned Mine Land Reclamation Program. Identification as a Repeat Finding There was no similar finding in the prior year. Recommendation We recommend that the Commission evaluate their current internal controls over financial reporting and identify areas for improvement that are most important for consistent and accurate financial reporting. View of Responsible Officials and Planned Corrective Action The Commission will review its control procedures over accounts payable to verify that invoices are properly recorded in the correct fiscal year.

#2023-002 – Material Weakness – Compliance Requirement Activities - Allowed or Unallowed Abandoned Mine Land Reclamation Program 15.252 Criteria Proper internal control procedures include review and approval of expenditure documentation such as purchase orders and invoices prior to entering expenditures into the system for payment processing. Invoices should also be reviewed for mathematical accuracy to ensure that the Commission and the grant are properly charged. Condition For one of the six payments examined, there was no approval of the supporting invoice or purchase order. Approval occurred with the check signature of the Director of Administration and Finance. In addition, for two of the six payments, the invoices had mathematical errors. Cause Due to oversight, one payment was not approved in accordance with the Commission’s internal control procedures, prior to submission for payment. Additionally, the Commission does not have procedures in place to review invoices for mathematical accuracy prior to payment. Effect Lack of review and approval of invoices can result in unallowable costs charged to the grant program. Questioned Costs None Perspective Information The Commission recalculated all invoices from the vendor and noted four invoices with errors during the year ended June 30, 2023, resulting in an overcharge to the grant of $1,001. Identification as a Repeat Finding There was no similar finding in the prior year. Recommendation We recommend that the Commission approve all invoices in accordance with the Commission’s internal control procedures. We also recommend that the Commission review invoices for mathematical accuracy prior to payment. View of Responsible Officials and Planned Corrective Action The Commission has contacted the vendor to resolve the billing errors and will implement procedures internally to oversee the verification of the accuracy of invoices going forward.