FAC Explorer

Audit 314758

FY End
2023-06-30
Total Expended
$3.71M
Findings
2
Programs
2
Organization: Village of Clemmons (NC)
Year: 2023 Accepted: 2024-07-10
Auditor: Gibson & Company P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478054 2023-001 Material Weakness Yes P
1054496 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.68M Yes 1
20.205 Highway Planning and Construction $16,674 - 0

Contacts

Name Title Type
L44NFHLKM8H6 K. Ann Stroud Auditee
3367667511 Monty R. Pendry Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Used Direct Cost. The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of the Village of Clemmons under the programs of the federal government and the State of North Carolina for the year ended June 30, 2023. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of the Village of Clemmons, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Village of Clemmons.
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Used Direct Cost. Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3: Indirect Cost Rate Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Used Direct Cost. The Village of Clemmons has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
MATERIAL WEAKNESS 2023-1 Segregation of Duties Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled properly. Condition: There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2022-1. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor ProTem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk.
Finding 2023-001
MATERIAL WEAKNESS 2023-1 Segregation of Duties Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled properly. Condition: There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2022-1. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor ProTem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk.