Audit 16126

FY End

2019-06-30

Total Expended

$1.07M

Findings

2

Programs

1

Organization: City of Shinnston (WV)

Year: 2019 Accepted: 2024-02-07

Auditor: Wv State Auditor's Office

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
366496	2019-017	Material Weakness	-	A
942938	2019-017	Material Weakness	-	A

ALN	Program	Spent	Major	Findings
10.760	Water and Waste Disposal Systems for Rural Communities	$1.07M	Yes	1

Contacts

Name	Title	Type
LHPPLL52CYJ1	Tori Drainer	Auditee
3046774199	Samantha Woods	Auditor
No contacts on file

Notes to SEFA

Title: Loans Outstanding Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The Municipality has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Municipality had the following loan balances outstanding at June 30, 2019. A portion of these loan balances outstanding are also included as federal expenditures presented in this schedule. Program Title Water and Waste Disposal Systems for Rural Communities Federal CFDA Number 10.760 Amount Outstanding $2,299,958

Finding Details

Finding 2019-017

Activities Allowed or Unallowed 2019-017 Grant Title: Water and Waste Disposal Systems for Rural Communities Federal Award Number and Year: 2019 CFDA#: 10.760 Federal Agency: US Department or Agriculture CONDITION: Invoices or other supporting documentation was not available for all expenditures. CONTEXT: There were twenty-seven expenditure transactions for the Water and Waste Disposal Systems for Rual Communities. Twelve expenditures, or 44% of the population size, did not have invoices or supporting documentation available. CRITERIA: Proper internal controls include maintaining an adequate filing systems in order to safeguard records and documents and procedures that ensure all invoices and supporting documentation are available. Additionally, Title 7 U.S. Code of Federal Regulations (CFR) Part 1780, Water and Waste Loans and Grants §1780.47 states, in part, that: (c) Record Retention. Each borrower shall retain all records, books, and supporting material for 3 years after the issuance of the audit or management reports. Upon request, this material will be made available to RUS, Office of the Inspector General (OIG), United States Department of Agriculture (USDA), the Comptroller General, or to their assignees. QUESTIONED COSTS: Unknown. CAUSE: Procedures were not in place to ensure that invoices and supporting documentation were maintained for all expenditures. EFFECT: Auditors were unable to determine the allowability of certain expenditures and controls over supporting documentation were not adequate to prevent and detect unauthorized disbursements. This issue contributed to the modified opinion on compliance for the Water and Waste Disposal Systems for Rural Communities program. REPEAT FINDING: No RECOMMENDATION: Municipal officials should establish procedures to require all expenditures be adequately documented and supporting documentation, be available for review. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: A correction plan will be put in place to ensure that all invoices are kept for the proper and legal amount of time.

Finding 2019-017

Activities Allowed or Unallowed 2019-017 Grant Title: Water and Waste Disposal Systems for Rural Communities Federal Award Number and Year: 2019 CFDA#: 10.760 Federal Agency: US Department or Agriculture CONDITION: Invoices or other supporting documentation was not available for all expenditures. CONTEXT: There were twenty-seven expenditure transactions for the Water and Waste Disposal Systems for Rual Communities. Twelve expenditures, or 44% of the population size, did not have invoices or supporting documentation available. CRITERIA: Proper internal controls include maintaining an adequate filing systems in order to safeguard records and documents and procedures that ensure all invoices and supporting documentation are available. Additionally, Title 7 U.S. Code of Federal Regulations (CFR) Part 1780, Water and Waste Loans and Grants §1780.47 states, in part, that: (c) Record Retention. Each borrower shall retain all records, books, and supporting material for 3 years after the issuance of the audit or management reports. Upon request, this material will be made available to RUS, Office of the Inspector General (OIG), United States Department of Agriculture (USDA), the Comptroller General, or to their assignees. QUESTIONED COSTS: Unknown. CAUSE: Procedures were not in place to ensure that invoices and supporting documentation were maintained for all expenditures. EFFECT: Auditors were unable to determine the allowability of certain expenditures and controls over supporting documentation were not adequate to prevent and detect unauthorized disbursements. This issue contributed to the modified opinion on compliance for the Water and Waste Disposal Systems for Rural Communities program. REPEAT FINDING: No RECOMMENDATION: Municipal officials should establish procedures to require all expenditures be adequately documented and supporting documentation, be available for review. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: A correction plan will be put in place to ensure that all invoices are kept for the proper and legal amount of time.