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Recommendation: We recommend the Hospital design controls to ensure documentation is completed timely and sufficiently on how costs are necessary to respond to COVID-19. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management has identified that th...
Recommendation: We recommend the Hospital design controls to ensure documentation is completed timely and sufficiently on how costs are necessary to respond to COVID-19. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management has identified that the Hospital has more than a sufficient amount of lost revenues related to COVID-19 to offset this difference. Action taken in response to finding: The Hospital will ensure that controls are put into place to capture Covid specific costs in accordance with HHS guidelines. Name of the contact person responsible for corrective action: Barry Mandell, VP Special Projects. Planned completion date for corrective action plan: April 1, 2022
View Audit 290693 Questioned Costs: $1
The Alliance will meet the annual filing requirements by implementing new procedures to the single Audit process. The Alliance will create a fiscal policy to construct a project timeline to have a completed Single Audit process. The Alliance will create a fiscal policy to construct a project timelin...
The Alliance will meet the annual filing requirements by implementing new procedures to the single Audit process. The Alliance will create a fiscal policy to construct a project timeline to have a completed Single Audit process. The Alliance will create a fiscal policy to construct a project timeline to have a completed Single Audit prior to the annual deadline. This detailed project timeline will ensure that the Alliance completes the necessary subtasks to complete the Single Audit on time in future years.
The finding was corrected. The payer of the Concessionaire, which has access to the system, was appointed. According to internal procedure, she does not issue payments until she is sure that the account has a budget.
The finding was corrected. The payer of the Concessionaire, which has access to the system, was appointed. According to internal procedure, she does not issue payments until she is sure that the account has a budget.
The Municipality's Finance Department staff will be instructed to safeguard properly, all the fiscal supporting documents related to the disbursement process. In addition, we will improve our procedures and internal control controls over the filing and safeguarding of documents, payment vouchers and...
The Municipality's Finance Department staff will be instructed to safeguard properly, all the fiscal supporting documents related to the disbursement process. In addition, we will improve our procedures and internal control controls over the filing and safeguarding of documents, payment vouchers and all related supporting documentation of the disbursement cycle.
Views of responsible officials and planned corrective action: The Authority experienced significant turnover in employees during the year and as a result certain processes were not followed and source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired ...
Views of responsible officials and planned corrective action: The Authority experienced significant turnover in employees during the year and as a result certain processes were not followed and source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Executive Director who will implement the required safeguards and ensure that the Authority follows it’s the Regulatory Agreements related to the Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects and the HUD compliance requirements to remedy the aforementioned deficiencies. Leonard Spicer, Executive Director, is responsible for implementing this corrective action by December 31, 2023.
View Audit 290411 Questioned Costs: $1
Views of responsible officials and planned corrective action: The Authority experienced significant turnover in employees during the year and as a result certain processes were not followed and source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired ...
Views of responsible officials and planned corrective action: The Authority experienced significant turnover in employees during the year and as a result certain processes were not followed and source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Executive Director who will implement the required safeguards and ensure that the Authority follows its Section 8 Administrative Plan and the HUD compliance requirements to remedy the aforementioned deficiencies. Leonard Spicer, Executive Director, is responsible for implementing this corrective action by December 31, 2023.
View Audit 290411 Questioned Costs: $1
Finding 367389 (2022-007)
Significant Deficiency 2022
Finding 2022-007 Inaccurate Information Entry Name of contact: Corrective Action: Proposed Completion Date: Finding 2022-008 Inadequate Request for Information Name of contact: Corrective Action: Proposed Completion Date: Finding 2022-009 Inaccurate Resources Entry Name of contact: Lisa Broady, Adul...
Finding 2022-007 Inaccurate Information Entry Name of contact: Corrective Action: Proposed Completion Date: Finding 2022-008 Inadequate Request for Information Name of contact: Corrective Action: Proposed Completion Date: Finding 2022-009 Inaccurate Resources Entry Name of contact: Lisa Broady, Adult Medicaid Supervisor Corrective Action: Proposed Completion Date: Meetings were held with staff on documenting the information received, requesting required information to determine eligibility, properly requesting online data and WorkNumber in NCFAST and entering the correct supporting information. The week of March 20, 2023 with implementation effective immediately. Meetings were held with staff to ensure that they are counting and imputing all information that are verified through AVS on all applications/recerts. Supervisor will continue to review 10 cases each month to assure correct information has been keyed. The week of March 20, 2023 with implementation effective immediately. Corrective Action Plan For the Year Ended June 30, 2022 Section III - Federal Award Findings and Question Costs (continued) Meetings were held with staff to ensure that OVS, AVS, WorkNumber and property checks are being run in NCFAST and that all supporting information has been entered correctly into NCFAST. Also, training included proper use of the 1/3 reduction budgeting procedures. The week of March 20, 2023 with implementation effective immediately. Lisa Broady, Adult Medicaid Supervisor and Felicia Bullock, Family and Children's Medicaid Supervisor
Statement of Condition: The Department of Health and Human Services Appropriations Act 2022 restricts the amount of salary to Executive Level II of the Federal Executive pay scale for a full time 12 months total compensation for the grant period from March 2022 to February 2023. Correction Action P...
Statement of Condition: The Department of Health and Human Services Appropriations Act 2022 restricts the amount of salary to Executive Level II of the Federal Executive pay scale for a full time 12 months total compensation for the grant period from March 2022 to February 2023. Correction Action Planned for 2022-006: The salary of our executive director has consistently adhered to established limits, and our Program and Director of Finance, underscoring the effectiveness of our internal controls, swiftly identified any anomaly. Anticipated Completion Date June 2023
View Audit 290336 Questioned Costs: $1
Program: U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Eligibility Material Weakness in Internal Control over Compliance Finding Number: 22-059 Finding: Individuals were deemed eligible but were placed in an incorrect aid category or did not have sup...
Program: U.S. Department of Health and Human Services Children’s Health Insurance Program (CHIP), 93.767 Eligibility Material Weakness in Internal Control over Compliance Finding Number: 22-059 Finding: Individuals were deemed eligible but were placed in an incorrect aid category or did not have supporting documentation available for review. Individuals may receive benefits that they are not entitled to or not receive benefits for which they are entitled to. The Division did not have adequate internal controls to ensure aid categories were accurate or applications for CHIP were maintained. Prior year finding 2021-056. Corrective Action Taken: HOH UPI XXXXX2000/CHILD UPI XXXXX9100 – Worker failed to complete re-evaluation for higher aid code (REHA function) to obtain correct eligibility. Corrective Action: REHA function was completed on 9/27/2021 to obtain correct eligibility. HOH UPI XXXXX6100/CHILD UPI XXXXX6100 – The Division of Welfare and Supportive Services (Division) did not have adequate internal controls to maintain supporting documentation available for review. Corrective Action: The Division has revised scanning procedures across the state, which includes routing more documents to our vendor for scanning, rather than being retained in each district office. The Division also utilizes an internal team, Records Management Unit (RMU), that assists with Quality Assurance of all scanned documents. HOH UPI XXXXX8000/CHILD UPI XXXXX3200 – The Division did not have adequate internal controls to maintain supporting documentation available for review. Corrective Action: The Division has revised scanning procedures across the state, which includes routing more documents to our vendor for scanning, rather than being retained in each district office. The Division also utilizes an internal team, Records Management Unit (RMU), that assists with Quality Assurance of all scanned documents. Future Corrective Action: The Division will collaborate with all appropriate parties to move from an annual mandatory REHA training to a semiannual mandatory REHA training (every 6 months), for field staff. A new Quality Assurance tip to field staff was provided on 11/10/2022 and an updated mandatory REHA training was administered with a required completion date for all field staff of 02/2023. The next REHA training is scheduled for January/February of 2024. The Division will also continue to follow the updated process for scanning of documents and utilize the RMU for increased Quality Assurance of documents. The Eligibility and Payments (E&P) and Program Operations, Support & Targeted Outreach (POST) teams will work closely with the Internal Controls and Audit team within the Division to ensure internal controls are strengthened. The Division anticipates the internal controls to be updated within two months to reflect the release of a semi-annual REHA training, along with a new annual Quality Assurance REHA tip. Agency Response Does the Agency agree With the findings: Yes If No or Partial, please explain reason(s) why: N/A Individual Responsible for Corrective Action Plan: Name, Title: Tonya Stevens, Social Services Chief III, Eligibility and Payments Phone Number: 775-684-0553 Email: tstevens@dwss.nv.gov Name, Title: Shelly Aguilar, Social Services Chief III, Program Operations, Support & Targeted Outreach Phone Number: 702-631-2337 Email: saguilar@dwss.nv.gov Reviewed and Approved Tonya Stevens, Chief III, Eligibility and Payments
Finding 367164 (2022-049)
Significant Deficiency 2022
U.S. Department of Health and Human Services Low Income Home Energy Assistance, 93.568 Finding Number: 2022-049 – Eligibility Significant Deficiency in Internal Control over Compliance Finding: The amount of assistance to provide was not calculated correctly as it related to social security cost-of-...
U.S. Department of Health and Human Services Low Income Home Energy Assistance, 93.568 Finding Number: 2022-049 – Eligibility Significant Deficiency in Internal Control over Compliance Finding: The amount of assistance to provide was not calculated correctly as it related to social security cost-of-living increases. Corrective Action Taken or To Be Taken: The EAP supervisory staff will discuss the Social Security cost of living increase policy with the case management staff. The Division will ensure the internal control of supervisory case reviews are completed to identify cases where information is not accurate which may cause a payment to be incorrectly calculated. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Maria Wortman-Meshberger, Chief Employment and Support Services Phone Number: 775-684-0506 Email: mrwortman@dwss.nv.gov Reviewed and Approved Robert H. Thompson, Administrator Date December 19, 2023
U.S. Department of Health and Human Services Low Income Home Energy Assistance, 93.568 Finding Number: 2022-048 – Eligibility Material Weakness in Internal Control over Compliance Finding: Supervisor case reviews were not performed in accordance with the State Plan. Corrective Action Taken or To Be ...
U.S. Department of Health and Human Services Low Income Home Energy Assistance, 93.568 Finding Number: 2022-048 – Eligibility Material Weakness in Internal Control over Compliance Finding: Supervisor case reviews were not performed in accordance with the State Plan. Corrective Action Taken or To Be Taken: During the review period there were vacancies in both supervisory positions in the Energy Assistance Program. The Division filled these positions during the review period. The supervisory case reviews began for July 2022. In addition, the LIHEAP State Plan has been amended to allow additional staff members to review case work for new staff. The changes were approved at the June 29, 2023, Public Hearing. These changes have been included in the FFY 2024 LIHEAP State Plan to address staff shortages if they arise again. If to be taken, estimated date of completion Corrective Actions are already in place. Agency Response Does the Agency agree with finding: Yes X No Partially Individual Responsible for Corrective Action Plan: Name, Title: Maria Wortman-Meshberger, Chief Employment and Support Services Phone Number: 775-684-0506 Email: mrwortman@dwss.nv.gov Reviewed and Approved Robert H. Thompson, Administrator Date December 19, 2023
Finding #2022-043 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required informati...
Finding #2022-043 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Efforts to ensure consistent business practices within the Student Investment Division are underway. Corrective Action NDE shall develop a comprehensive Policy and Procedure (1.9 Title I ESEA MOE) documenting the process for the development, review, and finalization of the MOE report. Supplemental to the Policy and Procedure, NDE shall develop a Business Rule which clearly crosswalks source data to reporting outcomes. This business rule shall integrate principles from NDE’s Records Management Program, to include clear file architecture for supporting documentation. A checklist detailing the chain of review shall also be implemented to track the review and approval process of federal reports prior to submission. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with the Office of District Support Services to develop and finalize these documents. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of District Support Services and Division Compliance; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
Finding #2022-041 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Significant Deficiency in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal contr...
Finding #2022-041 – Education Stabilization Fund, CFDA 84.425 Level of Effort, Maintenance of Effort – Significant Deficiency in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to level of effort is tracked and supporting documents are maintained. NDE Response NDE maintains that the Governor’s Finance Office was responsible for the maintenance of effort for higher education. Evidence of the review process was lost following the departure of a former employee; however, upon becoming aware of the issue, NDE has worked to identify and mitigate the situation to the best of our ability. Corrective Action NDE shall develop a comprehensive Business Rule documenting the process for the development, review, and finalization of the ESF MOE report, to include clear crosswalks between source data and reporting outcomes. This business rule shall integrate principles from NDE’s Records Management Program, to include clear file architecture for supporting documentation. A checklist detailing the chain of review shall also be implemented to track the review and approval process of federal reports prior to submission. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with offices across the Student Investment Division to develop this documentation. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
Finding #2022-040 – Title I Grants to Local Education Agencies, CFDA 84.010 Special Tests and Provisions – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal contro...
Finding #2022-040 – Title I Grants to Local Education Agencies, CFDA 84.010 Special Tests and Provisions – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to ensure appropriate documentation of compliance with section 4306(c) of the ESEA is maintained. NDE Response Due to rapid turnover at NDE and unclear policies related to the digital retention of employee files, NDE lost access to the historical records of ESEA 4306(c) reports from FY18-FY23 following the departure of a former employee. Upon becoming aware of the issue, NDE has worked to identify and mitigate the situation to the best of our ability. Corrective Action NDE shall develop a comprehensive Policy and Procedure (2.2 Title I Earmarking and Hold Harmless Reporting) documenting the process for the development, review, and finalization of the ESEA 4306(c) report. Supplemental to the Policy and Procedure, NDE shall develop a Business Rule which clearly crosswalks source data to reporting outcomes. This business rule shall integrate principles from NDE’s Records Management Program, to include clear file architecture for supporting documentation. A checklist detailing the chain of review shall also be implemented to track the review and approval process of federal reports prior to submission. Finally, NDE shall implement internal control monitoring specific to this report upon completion of an internal monitoring assessment. NDE will further review existing internal controls to determine if further support is necessary. The Office of Division Compliance will collaborate with the Office of School and Student Supports to develop and finalize these documents. In addition, NDE shall review its Policies and Procedures related to email and file retention (4.7 Telecommunications, 4.8 Devices, and 6.6 Records Retention) to ensure that this issue is prevented in future. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management and other applicable NDE Offices to facilitate this process. Responsible Parties and Anticipated Completion Date Student Investment Division, Offices of Division Compliance; Student Achievement Division, Offices of Student and School Supports and Assessment, Data, and Accountability Management; May 1, 2024. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.
Audit Finding 2022-033: U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: The maximum allowable expenditures to be spent on government services pursuant to lost public sector revenue was inaccurate. Recommendation: Recommend the Nevada Governor’s Finance...
Audit Finding 2022-033: U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: The maximum allowable expenditures to be spent on government services pursuant to lost public sector revenue was inaccurate. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure the revenue loss calculation is prepared in accordance with the governing requirements. Agency Response: Does the agency Agree with Finding: Yes Additional Comments: Lost revenue was calculated under the Interim Final Rule, which was the guidance available at the time, and was not calculated using the Final Rule’s definition of State revenue. Corrective Action: The GFO will re-calculate revenue loss on a fund-by-fund basis rather than relying on the Census Bureau's Annual Survey of State and Local Government Finances. The Interim Final Rule requested that data used in the calculation must come from the Census Bureau's Annual Survey of State and Local Government Finances, and the revenue used in the calculation must come from the State's own sources. The auditor's recalculation used a microdata file from the State Controller's Office, re-calculating revenue on a fund-by-fund basis rather than relying on the Census Bureau's Annual Survey of State and Local Government Finances. Additionally, the Final Rule's definition of revenue from own sources is more expansive of revenue sources than the Interim Final Rule’s guidance. Date of Completion: Estimated to be completed by January of 2024 Department or Agency Responsible for Corrective Action Plan: Agency: Nevada Governor’s Finance Office Contract: Brenda Berry 200 Musser Street, Ste 200 Carson City, NV 89703 Signature: Amy Stephenson, Director
Finding 367104 (2022-026)
Significant Deficiency 2022
Audit Finding: 2022-026 Emergency Rental Assistance Program: 21.023 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no review of the SF-425 reports or Quarterly Reports by an individual independent of the preparation of the reports. Recommendation: Implement i...
Audit Finding: 2022-026 Emergency Rental Assistance Program: 21.023 Reporting Significant Deficiency in Internal Control over Compliance Summary: There was no review of the SF-425 reports or Quarterly Reports by an individual independent of the preparation of the reports. Recommendation: Implement internal controls to ensure reports are reviewed prior to submission. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division would like to note, and be given consideration for, the substantive fact of the context of the time period in a pandemic, a once in a lifetime crisis that was impacting daily work and personal lives of all Nevadans, including Division staff. Corrective Action: The Division will establish an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business. The internal audit and compliance committee will be responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. This will include ensuring policies and procedures are followed in which reports submitted to federal funders are reviewed by an individual independent of the preparation of the reports. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov
Finding 2022-021 Investigations performed by the UI BAM supervisor or senior investigator are not reviewed by someone other than the investigator. In addition, completion of cases and timely data entry requirements were not met. A nonstatistical sample of 60 completed BAM cases out of a population ...
Finding 2022-021 Investigations performed by the UI BAM supervisor or senior investigator are not reviewed by someone other than the investigator. In addition, completion of cases and timely data entry requirements were not met. A nonstatistical sample of 60 completed BAM cases out of a population of 734 was selected for testing. The investigator and reviewer were the same person for 17 of the cases tested. In addition, a time lapse report of case completion was examined for paid claims accuracy. Of these investigations, 85.19% of the cases were completed within 90 days, rather than the 95% required. In addition, the total completion was 92.12% complete, rather than the 98% completion required. Recommendation We recommend the Department implement internal controls to ensure appropriate segregation of duties on all BAM investigations and to ensure timeliness requirements are met. Nevada DETR’s Response The Employment Security Division’s Unemployment Insurance Support Services (UISS) recognizes the importance of internal controls for a system of checks and balances to ensure no one person has control over all parts of BAM investigations, and to ensure investigation timeliness. Background: BAM timeliness has been impacted since 2020 due to many factors that include but are not limited to significant staff turnover (i.e., retirement, promotions, and recruitment/retainment of qualified staff). Historically, the BAM supervisor PCN 5089 has been tasked with training and reviewing new staff work and activities, which resulted in experienced investigators’ work not being reviewed in attempts to meet timeliness on other BAM cases. Nevada DETR ESD UISS’ Corrective Action Plan: Attached (ATTACHMENT A) is DETR’s Benefit Accuracy Measurement (BAM) Segregation of Duties Internal Control. Estimated Date of Completion: COMPLETED Contact Person: Kristine K. Nelson, ESD Administrator, DETR/ESD (775)684-3828, kknelson@detr.nv.gov
The District remains committed to segregating duties as much as possible with our limited staff. District personnel recently attended continuing education regarding segregation of duties and anticipates revisions to current procedures. The District will continue to review internal control procedur...
The District remains committed to segregating duties as much as possible with our limited staff. District personnel recently attended continuing education regarding segregation of duties and anticipates revisions to current procedures. The District will continue to review internal control procedures, including the segregation of duties, in an effort to obtain the maximum internal control possible.
Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the single audit not being completed and submitted to the Federal Audit Clearinghouse be the due date. As of the audit report date, the Council has engaged an outside accounting firm to ...
Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the single audit not being completed and submitted to the Federal Audit Clearinghouse be the due date. As of the audit report date, the Council has engaged an outside accounting firm to provide financial oversight. Action: Develop procedures to ensure required single audits are completed and submitted to the Federal Audit Clearinghouse by the 9-month due date. Due Date: 3/1/23 Staff: Don Reynolds, contracted CFO Mike Michelon, Interim Executive
Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the cost allocation formulas and leadsheet account reconciliations not being updated on a continuing basis as reimbursement requests were being to the California Department of Social Ser...
Management agrees that due to turnover in staff during 2022 and 2023, there were gaps in communication leading to the cost allocation formulas and leadsheet account reconciliations not being updated on a continuing basis as reimbursement requests were being to the California Department of Social Services. Management believes that all key accounting positions have since been filled by qualified personnel. A formal close process and reconciliation of all balance sheet accounts and indirect cost allocations each month will ensure reimbursement requests are complete and accurate. Process documentation is also being prepared to help personnel in the accounting department follow proper control procedures. Action: Develop and document process for drawdown calculation and year end reconciliation to accounting records. Due Date: 3/1/23 Staff: Don Reynolds, contracted CFO
Finding #2022-003- Material Adjustments Condition: Johnson Block and Company, Inc. proposed adjusting journal entries during the audit process. We deem these entries to be material in relation to the financial statements. Since the Village did not make these adjustments in its accounting system pri...
Finding #2022-003- Material Adjustments Condition: Johnson Block and Company, Inc. proposed adjusting journal entries during the audit process. We deem these entries to be material in relation to the financial statements. Since the Village did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the Village’s internal controls. Criteria: Material adjusting journal entries not prepared by the Village before the audit are considered an internal control weakness. Cause: The Village does not have policies and procedures in place to ensure that all transactions are properly recorded on the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The Village will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor. Contact Person: Lynn Yager, Clerk/Treasurer Anticipated Completion: Not Applicable
Preparation of Financial Statements and Schedules of Expenditures of Federal and State Awards Condition: Village staff does not prepare the financial statements and schedules of federal and state awards. The Village has designated an individual responsible for reviewing and accepting the financial ...
Preparation of Financial Statements and Schedules of Expenditures of Federal and State Awards Condition: Village staff does not prepare the financial statements and schedules of federal and state awards. The Village has designated an individual responsible for reviewing and accepting the financial statements and schedules of federal and state awards. Criteria: Internal controls over preparation of the financial statements and schedules of federal and state awards, should be in place to provide reasonable assurance that a misstatement would be prevented or detected. Cause: The Village does not prepare the financial statements and full schedules of federal and state awards. Effect: Because management relies on the auditor to assist with the preparation of the financial statements and schedules of federal and state awards, the Village’s system of internal control may not prevent, detect, or correct misstatements in the financial statements and schedules of federal and state awards. Recommendation: The auditors will work with the Village to make personnel more knowledgeable about its responsibility for the financial statements and schedules of federal and state awards. Response: The auditors prepare the financial statements and schedules of federal and state awards, but we review and accept prior to issuance. We prepare financial reports that are reviewed by the Village Board monthly. Any concerns or questions are addressed throughout the year. Contact Person: Lynn Yager, Clerk/Treasurer Anticipated Completion: Not Applicable
Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Dutie...
Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or can both make and conceal an error, whether such error is intentional or unintentional. Cause: Limited number of personnel. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities because of the lack of segregation of duties. Recommendation: We recommend that the Village consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles as noted. Response: We agree with the finding but do not believe it is cost-effective to increase the office staff in an attempt to bring about a more effective segregation of duties. Contact Person: Lynn Yager, Clerk/Treasurer Anticipated Completion: Not Applicable
For any construction or building improvements requiring the use of contractors in the future, management will discuss adherence to the Davis Bacon Act regarding prevailing wages with the contractors and obtain documentation from the contractors demonstrating compliance with the Act.
For any construction or building improvements requiring the use of contractors in the future, management will discuss adherence to the Davis Bacon Act regarding prevailing wages with the contractors and obtain documentation from the contractors demonstrating compliance with the Act.
View Audit 289901 Questioned Costs: $1
Agree with the finding. We will implement the segregation of duties matrix as part of SOPs. We will ensure that authorization and review of cash draws of fedral funds are done by some one other than the individual who initiates and records the transaction . We have implemented the same and Dr EIli (...
Agree with the finding. We will implement the segregation of duties matrix as part of SOPs. We will ensure that authorization and review of cash draws of fedral funds are done by some one other than the individual who initiates and records the transaction . We have implemented the same and Dr EIli (pi) is reviewing and approving the report before each withdrawal. The Finance Head ( Nafih) is withdrawing the fund .Anticipated Completion Date : 12/31/2022 Actual date of implementation :01/24/2023
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