Finding 1094234 (2023-001)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2025-01-06

Audit: 335907

Organization: Rural Water District No. 4, Neosho-Labette County, Ks (KS)

Auditor: Jennifer L Eichinger CPA LLC

AI Summary

Core Issue: The entity's small size leads to insufficient separation of responsibilities, increasing the risk of errors or fraud.
Impacted Requirements: Key internal controls are compromised, which may violate compliance standards and best practices.
Recommended Follow-Up: Consider implementing cross-training or outsourcing certain functions to enhance oversight and accountability.

Due to the small size of the entity, there is a lack of segregation of duties.

ALN	Program Name	Expenditures
10.760	Water and Waste Disposal Systems for Rural Communities	$1.04M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$65,393
20.205	Highway Planning and Construction	$47,572