Finding 2023-002 – Material Weakness Program: Federal Highway Works Administration -
Highway Planning and Construction Cluster
The delays in the commencement and completion of the audit, as well as the material
misstatements and excessive year-end closing journal entries, were primarily due to signi...
Finding 2023-002 – Material Weakness Program: Federal Highway Works Administration -
Highway Planning and Construction Cluster
The delays in the commencement and completion of the audit, as well as the material
misstatements and excessive year-end closing journal entries, were primarily due to significant
turnover in our finance department during the fiscal year and the financial closing process.
Effect of Condition: We acknowledge that these issues led to material adjustments identified
through the audit procedures, which significantly delayed the audit process
Corrective Action Plan:
1. Enhanced Accounting Processes:
o StanCOG is in the process of reviewing and strengthening internal controls to
ensure that all assets, liabilities, revenues, and expenses are properly recorded
and reported in a timely manner.
o StanCOG is implementing a more robust financial closing process, ensuring
proper application of accounting principles to all financial closing accounts
and processes.
2. Staffing and Training:
o StanCOG has brought in new staff with an education and background in
accounting principles.
o StanCOG has begun the recruitment process to fill the vacancies in the
finance department with qualified personnel.
o StanCOG has retained experts in Financial Metropolitan Planning that will assist
with cross-training staff.
o StanCOG will continue to provide finance team members with training, tools,
and resources to continue to educate the finance team to help mitigate
material weaknesses in the department going forward.
3. Internal Review and Monitoring:
o StanCOG will institute a monthly internal review process to identify and correct
any discrepancies promptly.
o StanCOG will monitor the financial closing process closely to ensure timely
and accurate completion.
o StanCOG will review and revise existing accounting policies and procedures to
reflect updates as necessary.
Timeline for Implementation:
• Recruitment and onboarding of new finance staff: By in-progress - Ongoing
• Completion of cross-training programs: By August 2024 - Ongoing
• Full implementation of enhanced accounting processes: By October 31, 2024