2022-001 Significant Deficiency ? Segregation of Duties Condition: Responsibility for approving, executing, and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals.Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Cause: Responsibilities of approval, execution, recording, and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the Authority to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the Authority?s financial operations. Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with that had been approved by the board.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
2022-001 Significant Deficiency ? Segregation of Duties Condition: Responsibility for approving, executing, and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals.Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Cause: Responsibilities of approval, execution, recording, and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the Authority to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the Authority?s financial operations. Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with that had been approved by the board.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
2022-001 Significant Deficiency ? Segregation of Duties Condition: Responsibility for approving, executing, and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals.Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Cause: Responsibilities of approval, execution, recording, and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the Authority to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the Authority?s financial operations. Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with that had been approved by the board.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
2022-001 Significant Deficiency ? Segregation of Duties Condition: Responsibility for approving, executing, and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals.Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Cause: Responsibilities of approval, execution, recording, and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the Authority to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the Authority?s financial operations. Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with that had been approved by the board.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
2022-001 Significant Deficiency ? Segregation of Duties Condition: Responsibility for approving, executing, and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals.Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Cause: Responsibilities of approval, execution, recording, and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the Authority to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the Authority?s financial operations. Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with that had been approved by the board.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.
2022-001 Significant Deficiency ? Segregation of Duties Condition: Responsibility for approving, executing, and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals.Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Cause: Responsibilities of approval, execution, recording, and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the Authority to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the Authority?s financial operations. Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with that had been approved by the board.
2022-002 Material Weakness - Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee?s responsibility to prepare the Schedule of Expenditures of Federal Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate schedule of expenditures of federal awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate schedule of expenditures of federal awards financial statement for major program compliance. For CFDA #66.458, the SEFA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFA. Uniform Guidance states that SEFA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2022. Recommendation: Procedures should be implemented to create a materially accurate schedule of expenditures of federal award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate schedule of expenditures of federal award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFA.