FAC Explorer

Audit 411727

FY End
2025-12-31
Total Expended
$2.69M
Findings
2
Programs
1
Organization: MARCO RURAL WATER COMPANY, INC. (SC)
Year: 2025 Accepted: 2026-09-23
Auditor: KENNETH COBB & COMPANY PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1236103 2025-001 Material Weakness Yes P
1236104 2025-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.69M Yes 2

Contacts

Name Title Type
E8JRHMZY2XM7 Brenda G. Jackson Auditee
8434649563 Brenda G Jackson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Marco Rural Water Company, Inc. under programs of the federal government for the year ended December 31, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 Code of Federal Regulations Part 200, Uniform Administrative Rquirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Company it is not intended to and does not present the financial position or changes in net position of the Company.
The Company owed $5,740,597 to Rural Development as of 12/31/25.

Finding Details

Finding 2025-001
The Company does not prepare its annual financial statements and footnote disclosures. The Company staff work with the auditing firm in the preparation and subsequently reviews and approves all statements and disclosures before issuance. The Company relies on the auditing firm to prepare the financial statements and disclosures and reviews the final product. Caution must be exercised so that the auditor is not deemed to be part of the control system. The Company can accept this condition and concentrate on the review and approval process or prepare all financial statements and disclosures in house or hire an outside source to prepare the financial statements and disclosures. The Company accepts this condition and will concentrate on the review and approval process.
Finding 2025-002
Due to a small staff size, the Company does not have complete segregation of duties. An error in financial reporting may not be detected in a timely manner or the misappropriation of assets could be concealed. We recommend that the Board and management continue to use supervisory reviews such as monitoring financial statements and budget reports, and segregate duties where cost beneficial to do so. The Company will continue to use supervisory reviews usch as monitoring financial reports and budget reports and will use other secondary reviews where possible.