Finding Text
2023-003 – Delinquent and Inaccurate Quarterly Reporting to Lenders – Material Weakness in
Internal Controls over Compliance/Material Noncompliance
ALN and Title: 10.760, Water and Waste Disposal Systems for Rural Communities
Award Year: 2018
Criteria – Grant requires submission of quarterly financial reports within 30 days of quarter end.
Condition – The System did not submit quarterly reports for 2 quarters in 2023 and submitted 2 quarters
after the due date. Additionally, the information that was submitted was not complete and accurate.
Cause – There is no control to ensure reports are accurately and timely filed.
Effect – The grantor could cancel the grant and any future awards due to lack of compliance.
Auditor’s Recommendation – We recommend management implement a control to ensure that
reports related to their grant funding are accurately and timely filed.
Views of Responsible Officials and Planned Corrective Action – The System agrees with the finding and
the Business Manager and the Board of Directors will work together to implement a control that
sufficiently addresses the reporting requirements of federal awards and agreements.
Responsible Officials – Business Manager, Marinda Turner.
Timeline and Estimated Completion Date – February 28, 2025