Finding 1152242 (2024-003)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-08

AI Summary

  • Core Issue: 25% of tested deposits were not made within the required three working days.
  • Impacted Requirements: This violates Tennessee Code Annotated Section 6-56-111(a) regarding timely deposit of public funds.
  • Recommended Follow-Up: Assess staffing needs and implement a system to ensure timely deposits to prevent misuse and maintain accurate revenue reporting.

Finding Text

Condition: Three of the twelve (25%) deposits tested had receipts that were not deposited within the three working day requirement. Criteria: Section 6-56-111(a). Tennessee Code Annotated, states: Every municipal official handling public funds shall be required to, as soon as practical, but no later than (3) working days after the receipt by such municipal official of any public funds, deposit the funds to the credit of such municipality’s office bank account, or bank accounts. Cause: The District is a small entity with limited resources including an office manager with no other office staff. Effect: This creates the possibility of misuse or loss of collections. Effect: Revenue figures may be inaccurate if receipts are not posted in a timely manner. This leads to discrepancies in reported revenue and impacts the reliability of financial reports, potentially resulting in misinformed business decisions.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 575798 2024-001
    Significant Deficiency Repeat
  • 575799 2024-002
    Significant Deficiency Repeat
  • 575800 2024-003
    Significant Deficiency
  • 1152240 2024-001
    Significant Deficiency Repeat
  • 1152241 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $1.88M