FAC Explorer

Audit 320340

FY End
2023-12-31
Total Expended
$2.88M
Findings
4
Programs
5
Organization: Village of Blanchardville (WI)
Year: 2023 Accepted: 2024-09-23
Auditor: Johnson Block & Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497576 2023-001 Material Weakness - N
497577 2023-002 Material Weakness - N
1074018 2023-001 Material Weakness - N
1074019 2023-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $2.82M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,213 - 0
10.664 Cooperative Forestry Assistance $2,850 - 0
93.090 Guardianship Assistance $2,000 - 0
90.404 Hava Election Security Grants $83 - 0

Contacts

Name Title Type
G8WNMGSQVK85 Amy Scott Auditee
6085234521 Shawn Roelli Auditor
No contacts on file

Notes to SEFA

Title: Federal Loan Program Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Village of Blanchardville, Wisconsin and are presented on the accrual basis of accounting. The information in these schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines, issued by the Wisconsin Department of Administration. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The Village does not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. During 2023, the Village issued $1,188,000 of mortgage revenue bonds for water utility improvements. The mortgage revenue bonds were financed by a USDA loan program. The Village issued a line of credit for sewer utility improvements for $1,389,082 that will be refinanced with a mortgage revenue bond financed by a USDA loan program. The balance of loans outstanding at December 31, 2023 consist of: Assistance Listing Number: 10.760 Program Name: Water and Waste Disposal Systems for Rural Communities Outstanding Balance at December 31, 2023: $2,577,082
Title: Subrecipients Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Village of Blanchardville, Wisconsin and are presented on the accrual basis of accounting. The information in these schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines, issued by the Wisconsin Department of Administration. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The Village does not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no awards passed through to subrecipients.

Finding Details

Finding 2023-001
Finding #2023-001- Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or can both make and conceal an error, whether such error is intentional or unintentional. Cause: Limited number of personnel. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities because of the lack of segregation of duties. Recommendation: We recommend that the Village consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles. Response: We agree with the finding but do not believe it is cost-effective to increase the office staff in an attempt to bring about a more effective segregation of duties.
Finding 2023-002
Finding #2023-002 - Material Adjustments Condition: Johnson Block and Company, Inc. proposed adjusting journal entries during the audit process. We deem these entries to be material in relation to the financial statements. Since the Village did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the Village’s internal controls. Criteria: Material adjusting journal entries not prepared by the Village before the audit are considered an internal control weakness. Cause: The Village does not have policies and procedures in place to ensure that all transactions are properly recorded on the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The Village will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding 2023-001
Finding #2023-001- Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or can both make and conceal an error, whether such error is intentional or unintentional. Cause: Limited number of personnel. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities because of the lack of segregation of duties. Recommendation: We recommend that the Village consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles. Response: We agree with the finding but do not believe it is cost-effective to increase the office staff in an attempt to bring about a more effective segregation of duties.
Finding 2023-002
Finding #2023-002 - Material Adjustments Condition: Johnson Block and Company, Inc. proposed adjusting journal entries during the audit process. We deem these entries to be material in relation to the financial statements. Since the Village did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the Village’s internal controls. Criteria: Material adjusting journal entries not prepared by the Village before the audit are considered an internal control weakness. Cause: The Village does not have policies and procedures in place to ensure that all transactions are properly recorded on the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The Village will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.