Audit 341192

FY End

2023-12-31

Total Expended

$932,036

Findings

2

Programs

1

Organization: The Island Water Association, Inc. (FL)

Year: 2023 Accepted: 2025-02-04

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
521247	2023-001	Material Weakness	-	P
1097689	2023-001	Material Weakness	-	P

ALN	Program	Spent	Major	Findings
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$932,036	Yes	1

Contacts

Name	Title	Type
H2BYY2KZV5B5	Diana Wilson	Auditee
2394721502	Amy Cooper	Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of Presentation Accounting Policies: 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Island Water Association, Inc. has elected to not use the 10 percent de minimus cost rate as covered in 2CFR Section 200.414. De Minimis Rate Used: N Rate Explanation: The Island Water Association, Inc. has elected to not use the 10 percent de minimus cost rate as covered in 2CFR Section 200.414. The accompanying schedule of expenditures of federal awards and state granting activity of The Island Water Association, Inc., under programs of the federal and state governments for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 2CFR 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 Island Water Association, Inc., it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of The Island Water Association, Inc.

Title: Note 2 Summary of Significant Policies Accounting Policies: 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Island Water Association, Inc. has elected to not use the 10 percent de minimus cost rate as covered in 2CFR Section 200.414. De Minimis Rate Used: N Rate Explanation: The Island Water Association, Inc. has elected to not use the 10 percent de minimus cost rate as covered in 2CFR Section 200.414. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Island Water Association, Inc. has elected to not use the 10 percent de minimus cost rate as covered in 2CFR Section 200.414.

Finding Details

Finding 2023-001

2023 – 001 Type of Finding: • Material Weakness in Internal Control Over Financial Reporting Condition: Multiple audit entries were necessary to properly state account balances including a prior period adjustment to beginning net assets. Account reconciliations were not performed timely and accurately. Therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the organization’s internal controls. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The investments and related earnings lacked a proper reconciliation and review. This resulted in a material misstatement of cash equivalents and the related earnings on the investments as well as beginning net assets. Repeat finding : This is not a repeat finding. Recommendation: The organization should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over investments can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials and planned corrective actions : Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

Finding 2023-001

2023 – 001 Type of Finding: • Material Weakness in Internal Control Over Financial Reporting Condition: Multiple audit entries were necessary to properly state account balances including a prior period adjustment to beginning net assets. Account reconciliations were not performed timely and accurately. Therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the organization’s internal controls. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The investments and related earnings lacked a proper reconciliation and review. This resulted in a material misstatement of cash equivalents and the related earnings on the investments as well as beginning net assets. Repeat finding : This is not a repeat finding. Recommendation: The organization should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over investments can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials and planned corrective actions : Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.