Audit 357221

FY End
2023-12-31
Total Expended
$1.89M
Findings
10
Programs
1

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
561607 2023-001 Significant Deficiency - P
561608 2023-002 Significant Deficiency - P
561609 2023-003 Significant Deficiency - P
561610 2023-004 - - L
561611 2023-005 - - P
1138049 2023-001 Significant Deficiency - P
1138050 2023-002 Significant Deficiency - P
1138051 2023-003 Significant Deficiency - P
1138052 2023-004 - - L
1138053 2023-005 - - P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.89M Yes 5

Contacts

Name Title Type
RY4ABYH8MZM8 Debbie Campbell Auditee
6607271411 Susan Reed Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF ACCOUNTING Accounting Policies: This Schedule is prepared on the same basis of accounting as the Consolidated Public Water Supply District No. 1 of Clark County, Missouri’s financial statements and is presented in accordance with the Uniform Guidance (2CFR Part 200). The District’s basic financial statements are presented on the full accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: No indirect costs were allocated to the project This Schedule is prepared on the same basis of accounting as the Consolidated Public Water Supply District No. 1 of Clark County, Missouri’s financial statements and is presented in accordance with the Uniform Guidance (2CFR Part 200). The District’s basic financial statements are presented on the full accrual basis of accounting and conform to accounting principles generally accepted in the United States of America.
Title: NOTE 2 INDIRECT COST RATE Accounting Policies: This Schedule is prepared on the same basis of accounting as the Consolidated Public Water Supply District No. 1 of Clark County, Missouri’s financial statements and is presented in accordance with the Uniform Guidance (2CFR Part 200). The District’s basic financial statements are presented on the full accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: No indirect costs were allocated to the project The District has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance as no indirect costs were allocated to the project.
Title: NOTE 3 FEDERAL LOANS Accounting Policies: This Schedule is prepared on the same basis of accounting as the Consolidated Public Water Supply District No. 1 of Clark County, Missouri’s financial statements and is presented in accordance with the Uniform Guidance (2CFR Part 200). The District’s basic financial statements are presented on the full accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: No indirect costs were allocated to the project The District was approved by the USDA Rural Development to receive loans totaling $2,453,000 to build a 75,000 gallon elevated tank, install a water main, improvements to a booster pump station and install a generator. Interim loan financing was received for the construction period. The loan amount includes proceeds of $1,886,301 expended during the year. The balance owing at December 31, 2023, is $1,886,301.

Finding Details

Auditing standards require us to inform you that Consolidated Public Water Supply District No. 1 of Clark County, Missouri, does not have personnel with capable expertise to prepare financial statements and related footnote disclosures in accordance with generally accepted accounting principles, particularly the adjustments and disclosures for the defined benefit net pension asset and deferred outflows and deferred inflows related to pensions.
The District reports on the cash basis during the year as preferred by management and the Board for monitoring the District’s operations. The adjustments to convert to the accrual basis at year end are material amounts, but are not considered to be misstatements in financial accounting.
One of the most critical areas of a District's internal control structure is the separation of accounting duties. The District has inadequate separation of accounting duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction, including the capability to prepare the billings, receive the cash, deposit the cash, prepare the cash receipts journal, and reconcile the bank accounts. Although the small size of the District's office staff limits the extent of separation of duties, consideration should be made to separate incompatible duties.
The District was unable to complete the audit report and file the data collection form in a timely manner.
The District did not have a written policy on internal controls over grant funds.
Auditing standards require us to inform you that Consolidated Public Water Supply District No. 1 of Clark County, Missouri, does not have personnel with capable expertise to prepare financial statements and related footnote disclosures in accordance with generally accepted accounting principles, particularly the adjustments and disclosures for the defined benefit net pension asset and deferred outflows and deferred inflows related to pensions.
The District reports on the cash basis during the year as preferred by management and the Board for monitoring the District’s operations. The adjustments to convert to the accrual basis at year end are material amounts, but are not considered to be misstatements in financial accounting.
One of the most critical areas of a District's internal control structure is the separation of accounting duties. The District has inadequate separation of accounting duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction, including the capability to prepare the billings, receive the cash, deposit the cash, prepare the cash receipts journal, and reconcile the bank accounts. Although the small size of the District's office staff limits the extent of separation of duties, consideration should be made to separate incompatible duties.
The District was unable to complete the audit report and file the data collection form in a timely manner.
The District did not have a written policy on internal controls over grant funds.