CORRECTIVE ACTION PLAN March 29, 2023 Montgomery County, VA respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: Jun...
CORRECTIVE ACTION PLAN March 29, 2023 Montgomery County, VA respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: June 30, 2022 The findings from the June 30, 2022 Schedule of Findings and Questioned Costs (the ?Schedule?) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS ? FINANCIAL STATEMENT AUDIT 2022-001: Segregation of Duties (Material Weakness) Condition: A proper segregation of duties has not been established in functions related to payroll, accounts payable, accounts receivable, cash disbursements, and financial reporting. Criteria: A fundamental concept of internal controls is the separation of duties. No one employee should have access to both physical assets and the related accounting records, or to all phases of a transaction. Cause: The size of the County?s account staff and cost/benefit to minimize conflicting duties prohibits complete adherence to segregation of duties. Effect: A lack of segregation of duties exposes the County and School Board to a heightened risk of misappropriation. Recommendation: Steps should be taken to eliminate performance of conflicting duties, where possible, or to implement effective compensating controls. Corrective Action: The County and School Board have taken all steps deemed practical and cost beneficial to minimize conflicting duties. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-002: SNAP Cluster ? State Administrative Matching Grants for the Supplemental Nutrition Assistant Program ? ALN #10.561, Eligibility Compliance Requirement impacted ? Eligibility Condition: Social Services did not verify the social security number for a household member in one out of twenty five applications selected for testing which were used to determine eligibility and benefit levels. Criteria: Under the requirements in the Uniform Guidance, social security numbers for all household members are required to be verified when applying for SNAP benefits. Cause: Social Services typically verifies all social security numbers for all household members included in the application for benefits, however, one household member was overlooked during the verification process. Effect: The lack of proper social security number verification could result in improper use of on an ineligible individual. Questioned Costs: None Perspective Information: One individual was not verified on one application out of twenty-five household applications selected. Repeat Finding: No Recommendation: Management should implement a procedure to ensure that social security numbers for all household members are properly verified. Corrective Action: Social Services will put into place a procedure to ensure that all social security numbers are verified during the eligibility determination process. If the Federal Audit Clearinghouse has questions regarding this plan, please call Lisa Rayne, Finance Director at (540) 382-6960 for finding 2022-001 and Kelly Edmonson, Social Services Director at (540) 382-6990 for finding 2022-002. Sincerely yours, Lisa Rayne Finance Director Kelly Edmonson Social Services Director