FAC Explorer

Audit 354487

FY End
2024-06-30
Total Expended
$2.26M
Findings
4
Programs
4
Organization: Cheyenne County, Nebraska (NE)
Year: 2024 Accepted: 2025-04-24
Auditor: Dana F Cole & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555798 2024-001 Material Weakness - P
555799 2024-001 Material Weakness - P
1132240 2024-001 Material Weakness - P
1132241 2024-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.05M Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.00M Yes 1
93.563 Child Support Services $124,206 - 0
97.067 Homeland Security Grant Program $88,451 - 0

Contacts

Name Title Type
JA2LPMD7CWE8 Beth Fiegenschuh Auditee
3082542141 Kevin Sylvester Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The schedule of expenditures of federal awards is prepared on the cash basis of accounting which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Accordingly, disbursements are recognized when cash is disbursed. This basis of accounting is consistent with the method utilized for the basic financial statements of Cheyenne County, Nebraska. Cash Disbursements For certain federal programs, the County makes cash disbursements under the federal program specifically identified as federal program costs. For these federal programs, the County reports federal expenditures in the amount of cash disbursed and indirect costs claimed under the federal program. Cash Receipts For certain federal programs, the County receives payment at specified rates per unit of service rendered or product distributed. For these federal programs, the County reports federal expenditures in the amount of cash received under the federal program. De Minimis Rate Used: N Rate Explanation: Cheyenne County, Nebraska has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The information in this schedule is 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: CONTINGENCIES Accounting Policies: The schedule of expenditures of federal awards is prepared on the cash basis of accounting which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Accordingly, disbursements are recognized when cash is disbursed. This basis of accounting is consistent with the method utilized for the basic financial statements of Cheyenne County, Nebraska. Cash Disbursements For certain federal programs, the County makes cash disbursements under the federal program specifically identified as federal program costs. For these federal programs, the County reports federal expenditures in the amount of cash disbursed and indirect costs claimed under the federal program. Cash Receipts For certain federal programs, the County receives payment at specified rates per unit of service rendered or product distributed. For these federal programs, the County reports federal expenditures in the amount of cash received under the federal program. De Minimis Rate Used: N Rate Explanation: Cheyenne County, Nebraska has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The County receives funds under various federal grant programs and such assistance is to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have any material financial impact.

Finding Details

Finding 2024-001
Criteria An adequate internal control system design should be designed to adequately segregate responsibilities of performing control functions sufficient to prevent circumvention of those controls by any one individual. Condition and Context The County has not employed an internal control system that sufficiently segregates accounting functions to a degree that reasonably reduces the risk that fraud could occur and not be detected. Cause of the Condition It appears that the County currently employs an insufficient number of financial personnel required to sufficiently segregate accounting functions. Effect of the Condition Internal controls may be circumvented to reduce the ability of those internal controls to detect fraud. Recommendation Although this condition is a serious defect in the design of the internal control system, we believe the financial and personnel resources necessary to adequately segregate accounting functions would outweigh the assurance provided. However, we also recommend that management and the Board of Commissioners be continuously aware of this condition, segregate high-risk functions when possible, implement alternative mitigating procedures, and rigorously investigate unusual transactions when discovered. Views of Responsible Officials and Planned Corrective Action We understand that an internal control system is inadequate without sufficient segregation of accounting functions. However, we believe that the required resources necessary to properly segregate accounting functions are beyond reasonable expectations, given the size and current resources of the County. We are aware of the risks of fraud associated with insufficient segregation of accounting functions and the County implements mitigating controls, when possible, and investigates unusual circumstances and transactions when encountered.
Finding 2024-001
Criteria An adequate internal control system design should be designed to adequately segregate responsibilities of performing control functions sufficient to prevent circumvention of those controls by any one individual. Condition and Context The County has not employed an internal control system that sufficiently segregates accounting functions to a degree that reasonably reduces the risk that fraud could occur and not be detected. Cause of the Condition It appears that the County currently employs an insufficient number of financial personnel required to sufficiently segregate accounting functions. Effect of the Condition Internal controls may be circumvented to reduce the ability of those internal controls to detect fraud. Recommendation Although this condition is a serious defect in the design of the internal control system, we believe the financial and personnel resources necessary to adequately segregate accounting functions would outweigh the assurance provided. However, we also recommend that management and the Board of Commissioners be continuously aware of this condition, segregate high-risk functions when possible, implement alternative mitigating procedures, and rigorously investigate unusual transactions when discovered. Views of Responsible Officials and Planned Corrective Action We understand that an internal control system is inadequate without sufficient segregation of accounting functions. However, we believe that the required resources necessary to properly segregate accounting functions are beyond reasonable expectations, given the size and current resources of the County. We are aware of the risks of fraud associated with insufficient segregation of accounting functions and the County implements mitigating controls, when possible, and investigates unusual circumstances and transactions when encountered.
Finding 2024-001
Criteria An adequate internal control system design should be designed to adequately segregate responsibilities of performing control functions sufficient to prevent circumvention of those controls by any one individual. Condition and Context The County has not employed an internal control system that sufficiently segregates accounting functions to a degree that reasonably reduces the risk that fraud could occur and not be detected. Cause of the Condition It appears that the County currently employs an insufficient number of financial personnel required to sufficiently segregate accounting functions. Effect of the Condition Internal controls may be circumvented to reduce the ability of those internal controls to detect fraud. Recommendation Although this condition is a serious defect in the design of the internal control system, we believe the financial and personnel resources necessary to adequately segregate accounting functions would outweigh the assurance provided. However, we also recommend that management and the Board of Commissioners be continuously aware of this condition, segregate high-risk functions when possible, implement alternative mitigating procedures, and rigorously investigate unusual transactions when discovered. Views of Responsible Officials and Planned Corrective Action We understand that an internal control system is inadequate without sufficient segregation of accounting functions. However, we believe that the required resources necessary to properly segregate accounting functions are beyond reasonable expectations, given the size and current resources of the County. We are aware of the risks of fraud associated with insufficient segregation of accounting functions and the County implements mitigating controls, when possible, and investigates unusual circumstances and transactions when encountered.
Finding 2024-001
Criteria An adequate internal control system design should be designed to adequately segregate responsibilities of performing control functions sufficient to prevent circumvention of those controls by any one individual. Condition and Context The County has not employed an internal control system that sufficiently segregates accounting functions to a degree that reasonably reduces the risk that fraud could occur and not be detected. Cause of the Condition It appears that the County currently employs an insufficient number of financial personnel required to sufficiently segregate accounting functions. Effect of the Condition Internal controls may be circumvented to reduce the ability of those internal controls to detect fraud. Recommendation Although this condition is a serious defect in the design of the internal control system, we believe the financial and personnel resources necessary to adequately segregate accounting functions would outweigh the assurance provided. However, we also recommend that management and the Board of Commissioners be continuously aware of this condition, segregate high-risk functions when possible, implement alternative mitigating procedures, and rigorously investigate unusual transactions when discovered. Views of Responsible Officials and Planned Corrective Action We understand that an internal control system is inadequate without sufficient segregation of accounting functions. However, we believe that the required resources necessary to properly segregate accounting functions are beyond reasonable expectations, given the size and current resources of the County. We are aware of the risks of fraud associated with insufficient segregation of accounting functions and the County implements mitigating controls, when possible, and investigates unusual circumstances and transactions when encountered.