FAC Explorer

Audit 297324

FY End
2023-06-30
Total Expended
$3.38M
Findings
2
Programs
1
Organization: Electric Division - Bowling Green Municipal Utilities (KY)
Year: 2023 Accepted: 2024-03-25
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384220 2023-001 Significant Deficiency - P
960662 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.38M Yes 1

Contacts

Name Title Type
R8KBCEWD5S54 Holly Vaughn Auditee
2707824362 Chad Moore Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Electric Division (Division), a division of Bowling Green Municipal Utilities (BGMU), a component unit of the City of Bowling Green, Kentucky under programs of the federal government for the year ended June 30, 2023. 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 Division, it is not intended to and does not present the financial position, changes in patronage capital and other equities, or cash flows of the Division. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Division has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2023-001
Criteria or specific requirement: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Management is responsible for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition: During the 2023 audit, we identified adjusting entries relating to grants received by certain divisions of BGMU, which were proposed, and management recorded. Effect: Potentially material misstatements in the financial statements and disclosures. Cause: Adjustments were made primarily as a result of audit procedures performed. Recommendation: Management should continue to review these areas throughout the year. Views of responsible officials and planned corrective actions: BGMU management will review and record all adjusting journal entries throughout the year, including fiscal year-end journal entries, prior to the beginning of the audit engagement.
Finding 2023-001
Criteria or specific requirement: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Management is responsible for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition: During the 2023 audit, we identified adjusting entries relating to grants received by certain divisions of BGMU, which were proposed, and management recorded. Effect: Potentially material misstatements in the financial statements and disclosures. Cause: Adjustments were made primarily as a result of audit procedures performed. Recommendation: Management should continue to review these areas throughout the year. Views of responsible officials and planned corrective actions: BGMU management will review and record all adjusting journal entries throughout the year, including fiscal year-end journal entries, prior to the beginning of the audit engagement.