Audit 348513

FY End
2024-06-30
Total Expended
$1.95M
Findings
2
Programs
1
Organization: Town of Beverly, West Virginia (WV)
Year: 2024 Accepted: 2025-03-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
537278 2024-006 Material Weakness - F
1113720 2024-006 Material Weakness - F

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $1.95M Yes 1

Contacts

Name Title Type
WCKBF7L4DGB5 Mellanie Dilley Auditee
3046365360 David A. Shriver Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - 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 AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: TOWN OF BEVERLY, WEST VIRGINIA HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER UNIFORM GUIDANCE. THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (THE SCHEDULE) INCLUDES THE FEDERAL AWARD ACTIVITY OF TOWN OF BEVERLY, WEST VIRGINIA UNDER PROGRAMS OF THE FEDERAL GOVERNMENT FOR THE FISCAL YEAR ENDED JUNE 30, 2024. THE INFORMATION IN THE SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 U.S. CODE OF FEDERAL REGULATIONS PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COS PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE). BECAUSE THE SCHEDULE PRESENTS ONLY A SELECTED PORTION OF THE OPERATIONS OF TOWN OF BEVERLY, WEST VIRGINIA, IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET POSITION, OR CASH FLOWS OF TOWN OF BEVERLY, WEST VIRGINIA.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING 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 AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: TOWN OF BEVERLY, WEST VIRGINIA HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER UNIFORM GUIDANCE. EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE ACCRUAL BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN UNIFORM GUIDANCE AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENTS.
Title: NOTE C - INDIRECT COST RATE 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 AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: TOWN OF BEVERLY, WEST VIRGINIA HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER UNIFORM GUIDANCE. TOWN OF BEVERLY, WEST VIRGINIA HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER THE UNIFORM GUIDANCE.
Title: NOTE D - PASS-THROUGH TO SUBRECIPIENTS 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 AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: TOWN OF BEVERLY, WEST VIRGINIA HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER UNIFORM GUIDANCE. THERE WERE NO AWARDS PASSED THROUGH TO SUBRECIPIENTS.
Title: NOTE E - ASSISTANCE LISTING (CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA)) 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 AND OMB CIRCULAR A-87, COST PRINCIPLES FOR STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. De Minimis Rate Used: N Rate Explanation: TOWN OF BEVERLY, WEST VIRGINIA HAS ELECTED NOT TO USE THE 10 PERCENT DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER UNIFORM GUIDANCE. ASSISTANCE LISTING (AL) HAS REPLACED THE CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) FOR IDENTIFYING FEDERAL PROGRAMS.

Finding Details

CAPITAL ASSET DETAIL - CRITERIA: STRONG INTERNAL CONTROL REQUIRES THAT A DETAILED LISTING OF CAPITAL ASSETS BE MAINTAINED. A DETAILED LSITING OF CAPITAL ASSETS WITH ORIGINAL COST AMOUNTS IS ESSENTIAL TO THE ACCURATE COMPUTATION OF DEPRECIATION EXPENSE. CONDITION: THE TOWN AND UTILITY BOARDS FAILED TO MAINTAIN A DETAILED LISTING OF CAPITAL ASSETS THAT HAVE HSITORICAL COST AMOUNTS. CAUSE: HISTORICAL RECORDS OF THE TOWN AND UTILITY BOARDS ARE INSUFFICIENT TO REGENERATE A DETAILED LISTING OF CAPITAL ASSETS THAT CORRESPOND TO THE ACCOUNT BALANCES CARRIED BY THE TOWN AN DUTILITY BOARDS IN THE GENERAL LEDGER. EFFECT: THE EFFECT OF THIS CONDITION IS THAT INTERNAL CONTROL OVER CAPITAL ASSETS IS WEAKENED. RECOMMENDATION: THE TOWN AND UTILITY BOARDS SHOULD CONDUCT A THOROUGH INVENTORY OF ALL CAPITAL ASSETS. ONCE COMPLETED, THE INVENTORY SHOULD BE USED TO COMPLETE A DETAILED LISTING OF ALL CAPITAL ASSETS AND THIS LISTING AGREED TO THE APPROPRIATE GENERAL LEDGER ACCOUNTS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: MANAGEMENT HAS STATED THAT THEY WILL CREAE A COMPLETE DETAILED LISTING OF ALL CAPITAL ASSETS AND DEPRECIATION SCHEDULES; HOWEVER, RECORDS OF THE TOWN AND UTILITY BOARDS ARE INSUFFICIENT TO ALLOW MANAGEMENT TO COMPARE IT TO EXISTING INFORMATION IN THE ACCOUNTING RECORDS.
CAPITAL ASSET DETAIL - CRITERIA: STRONG INTERNAL CONTROL REQUIRES THAT A DETAILED LISTING OF CAPITAL ASSETS BE MAINTAINED. A DETAILED LSITING OF CAPITAL ASSETS WITH ORIGINAL COST AMOUNTS IS ESSENTIAL TO THE ACCURATE COMPUTATION OF DEPRECIATION EXPENSE. CONDITION: THE TOWN AND UTILITY BOARDS FAILED TO MAINTAIN A DETAILED LISTING OF CAPITAL ASSETS THAT HAVE HSITORICAL COST AMOUNTS. CAUSE: HISTORICAL RECORDS OF THE TOWN AND UTILITY BOARDS ARE INSUFFICIENT TO REGENERATE A DETAILED LISTING OF CAPITAL ASSETS THAT CORRESPOND TO THE ACCOUNT BALANCES CARRIED BY THE TOWN AN DUTILITY BOARDS IN THE GENERAL LEDGER. EFFECT: THE EFFECT OF THIS CONDITION IS THAT INTERNAL CONTROL OVER CAPITAL ASSETS IS WEAKENED. RECOMMENDATION: THE TOWN AND UTILITY BOARDS SHOULD CONDUCT A THOROUGH INVENTORY OF ALL CAPITAL ASSETS. ONCE COMPLETED, THE INVENTORY SHOULD BE USED TO COMPLETE A DETAILED LISTING OF ALL CAPITAL ASSETS AND THIS LISTING AGREED TO THE APPROPRIATE GENERAL LEDGER ACCOUNTS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: MANAGEMENT HAS STATED THAT THEY WILL CREAE A COMPLETE DETAILED LISTING OF ALL CAPITAL ASSETS AND DEPRECIATION SCHEDULES; HOWEVER, RECORDS OF THE TOWN AND UTILITY BOARDS ARE INSUFFICIENT TO ALLOW MANAGEMENT TO COMPARE IT TO EXISTING INFORMATION IN THE ACCOUNTING RECORDS.