Audit 17296

FY End
2022-06-30
Total Expended
$7.05M
Findings
10
Programs
2
Year: 2022 Accepted: 2023-02-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
12580 2022-003 Material Weakness Yes P
12581 2022-003 Material Weakness Yes P
12582 2022-003 Material Weakness Yes P
12583 2022-003 Material Weakness Yes P
12584 2022-003 Material Weakness Yes P
589022 2022-003 Material Weakness Yes P
589023 2022-003 Material Weakness Yes P
589024 2022-003 Material Weakness Yes P
589025 2022-003 Material Weakness Yes P
589026 2022-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $2.99M Yes 1
66.458 Capitalization Grants for Clean Water State Revolving Funds $372,993 Yes 1

Contacts

Name Title Type
QSLNU9TVTJE5 Zackery D Dobbins Auditee
3043664295 David A Shriver Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATION - THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (THE SCHEDULE) INCLUDES THE FEDERAL AWARD ACTIVITY OF THE GREATER HARRISON COUNTY PUBLIC SERVICE DISTRICT UNDER PROGRAMS OF THE FEDERAL GOVERNMENT FOR THE YEAR ENDED JUNE 30, 2022. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 U.S. CODE OF FEDERAL REGULATIONS PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE). BECAUSE THE SCHEDULE PRESENTS ONLY A SELECTED PORTION OF THE OPERATIONS OF THE GREATER HARRISON COUNTY PUBLIC SERVICE DISTRICT, IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET POSITION, OR CASH FLOWS OF GREATER HARRISON COUNTY PUBLIC SERVICE DISTRICT. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE ACCRUAL BASIS OF ACCOUNITNG. SUCH EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN THE UNIFORM GUIDANCE AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBE GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. NOTE D - PASS THROUGH TO SUBRECIPIENTS - THERE WERE NO AWARDS PASSED THROUGH TO SUBRECIPIENTS. NOTE E - ASSISTANCE LISTING (CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA)) - ASSISTANCE LISTING HAS REPLACED THE CATALOG OF FEDERAL DOMESTIC ASSISANCE (CFDA) FOR IDENTIFYING FEDERAL PROGRAMS. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. CAPITALIZATION GRANTS FOR CLEAN WATER STATE REVOLVING FUNDS (66.458) - Balances outstanding at the end of the audit period were 9854170. CAPITALIZATION GRANTS FOR CLEAN WATER STATE REVOLVING FUNDS (66.458) - Balances outstanding at the end of the audit period were 7318190. WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES (10.760) - Balances outstanding at the end of the audit period were 9245659.
Title: OUTSTANDING LOAN BALANCE Accounting Policies: NOTE A - BASIS OF PRESENTATION - THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (THE SCHEDULE) INCLUDES THE FEDERAL AWARD ACTIVITY OF THE GREATER HARRISON COUNTY PUBLIC SERVICE DISTRICT UNDER PROGRAMS OF THE FEDERAL GOVERNMENT FOR THE YEAR ENDED JUNE 30, 2022. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 U.S. CODE OF FEDERAL REGULATIONS PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE). BECAUSE THE SCHEDULE PRESENTS ONLY A SELECTED PORTION OF THE OPERATIONS OF THE GREATER HARRISON COUNTY PUBLIC SERVICE DISTRICT, IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET POSITION, OR CASH FLOWS OF GREATER HARRISON COUNTY PUBLIC SERVICE DISTRICT. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE ACCRUAL BASIS OF ACCOUNITNG. SUCH EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN THE UNIFORM GUIDANCE AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBE GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. NOTE D - PASS THROUGH TO SUBRECIPIENTS - THERE WERE NO AWARDS PASSED THROUGH TO SUBRECIPIENTS. NOTE E - ASSISTANCE LISTING (CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA)) - ASSISTANCE LISTING HAS REPLACED THE CATALOG OF FEDERAL DOMESTIC ASSISANCE (CFDA) FOR IDENTIFYING FEDERAL PROGRAMS. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY - STATE REVOLVING LOAN FUNDS - SRF LOAN - 2019C REVENUE BOND(AL 66.458) TOTAL OUTSTANDING LOAN BALANCE AT JUNE 30, 2022 WAS $9,854,170. OF THIS BALANCE $7,564,549 WAS CONSIDERED TO BE FROM FEDERAL SOURCES AND $2,289,621 FROM NONFEDERAL SOURCES. THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY - STATE REVOLVING LOAN FUNDS - SRF LOAN - 2020A REVENUE BOND (AL 66.458) TOTAL OUTSTANDING LOAN BALANCE AT JUNE 30, 2022 WAS $7,318,190. OF THIS BALANCE $5,700,856 WAS CONSIDERED TO BE FROM FEDERAL SOURCES AND $1,617,334 FROM NONFEDERAL SOURCES. THE UNITED STATES DEPARTMENT OF AGRICULTURE - WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES (AL 10.700) TOTAL OUTSTANDING LOAN BALANCE AT JUNE 30, 2022 WAS $9,245,659. THE ENTIRE OUTSTANDING LOAN BALANCE WAS CONSIDERED TO BE FROM FEDERAL SOURCES.

Finding Details

#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-