CORRECTIVE ACTION PLAN
January 27, 2025
The Industrial Development Authority of Danville, Virginia, respectfully submits the following corrective action plan for the year ended June 30, 2024.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P.
828 Main Street; Su...
CORRECTIVE ACTION PLAN
January 27, 2025
The Industrial Development Authority of Danville, Virginia, respectfully submits the following corrective action plan for the year ended June 30, 2024.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P.
828 Main Street; Suite 1401
Lynchburg, Virginia 24504
Audit period: June 30, 2024
The findings from the June 30, 2024, 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
2014-001: Segregation of Duties - Material Weakness
Condition: An important aspect of any internal control system is the segregation of duties. Not all duties at the Authority have been adequately segregated. In an ideal system, no individual would perform more than one duty in connection with any transaction or series of transactions. With limited staff, sufficiently separating duties can be difficult or even impossible. As with all areas of internal control, management and those charged with governance should make careful decisions about the cost versus benefit of any control.
Criteria: Segregation of duties should be maintained for financial transactions or series of transactions.
Cause: The Authority has limited staff and is unable to adequately separate duties.
Effect: The lack of adequate separation of duties results in creating the opportunity of the Authority to inappropriately process and record transactions.
Recommendation: Management should continue to take steps to eliminate performance of conflicting duties where possible or to implement effective compensating controls.
Views of Responsible Officials and Planned Corrective Action: The Authority’s management will continue to evaluate possible actions and take steps where feasible.
2024-002: Commonwealth of Virginia Disclosure Statements
Condition: One Industrial Development Authority board member filed a statement of economic interest
as requires by the Code of Virginia after the February 1, 2024 deadline.
Recommendation: Steps should be taken to ensure that these statements are filed and done so in a
timely manner.
Views of Responsible Officials and Planned Corrective Action: The Authority concurs with the
recommendation and has discussed the importance of a timely filing with the related board member.
2024-003: Coronavirus State and Local Fiscal Recovery Fund – ALN #21.027, Reporting
Condition: The Authority did not file the required reports by the due date.
Criteria: Under the requirements in the contract with the pass-through entity, the Authority is required
to provide quarterly progress reports.
Cause: The Authority does not have a process in place to ensure reports are filed timely.
Effect: The lack of timely reports results in the Authority being out of compliance with reporting
requirements of the pass-through entity.
Recommendation: Steps should be taken to ensure that these reports are filed and in a timely manner.
Views of Responsible Officials and Planned Corrective Action: The Authority concurs with the
recommendation and has discussed the matter with those responsible for filing the quarterly progress
reports. All progress reports were filed, just not by the prescribed due date. This will likely be a finding
in the next fiscal year audit as corrective measures were not implemented early enough to ensure timely
filings of the first reports for the new year.
If the Federal Audit Clearinghouse has questions regarding this plan, please call Michael Adkins, Chief
Financial Officer at 434.799.5185.
Sincerely yours,
Michael L. Adkins Chief Financial Officer