Finding 1115437 (2024-003)

INTERNAL CONTROL OVER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS PREPARATION AND REVIEW Condition: The County does not have a system of internal control that would provide management with reasonable assurance that the County’s schedule of expenditures of federal awards and related disclosures are complete and presented in accordance with the cash basis of accounting. As such, management requested us to compile the trial balance from the general ledger and prepare a draft of the schedule of expenditure of federal awards, including the related note disclosures. Criteria: As described in our engagement letter, management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation of the schedule of expenditures of federal awards, in conformity with the cash basis of accounting. Cause: Management does not prepare the schedule of expenditures of federal awards in accordance with the cash basis of accounting. Questioned Costs: None Repeat Finding: Yes Potential Effect: The potential exists that a material misstatement of the schedule of expenditures of federal awards could occur and not be prevented or detected by the County’s internal control. Recommendation: We recommend that the County review and approve the proposed auditor adjusting entries and the adequacy of the schedule of the expenditures of federal awards disclosures prepared by the auditors among other procedures as considered necessary by management. Views of Officials: The County relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal awards including the related note disclosures. The County reviews schedule of expenditures of federal awards and approves all adjustments.