Audit 411616

Department of Homeland Security, State of Wyoming Federal Emergency Management Agency, Federal Financial Assistance Listing 97.036, 4845-DR-WY-P1SWY500, 2025 Disaster Grants – Public Assistance Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule. Condition: The Corporation does not have an internal control system designed to provide for a complete and accurate schedule being audited. As auditors, we were requested to assist with the preparation of the schedule and accompanying notes to the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Corporation meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Corporation would not be able to draft a complete and accurate schedule. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding from Prior Year: No Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Corporation is aware of this condition for financial reporting requirements relating to the Corporation’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Department of Homeland Security, State of Wyoming Federal Emergency Management Agency, Federal Financial Assistance Listing 97.036, 4845-DR-WY-P1SWY500, 2025 Disaster Grants – Public Assistance Activities Allowed or Unallowed, Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Materials were charged out of inventory in the general ledger at a later date than when the items were actually pulled from inventory for the work order. Management did not detect or correct the differences in average cost. Cause: There was a lag in timing causing the average cost used for materials to be different. Effect: Lack of identification of differences in average costs used could result in material errors. Questioned Costs: None reported. Context/Sampling: Nonstatistical sampling was used. Sample size of 60 material transactions which accounted for $48,975 out of $292,905 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend the Corporation review the process for materials expenses to ensure that charge outs are timely recorded. Views of Responsible Officials: Management agrees with the finding.