Finding Text
Major Federal Program: The major federal program affected is Water and Waste Disposal Systems for Rural Communities - #10.760. Criteria: Internal control can help a City achieve its performance targets and prevent loss of resources. It can help ensure reliable financial reporting, and it can help ensure that the City complies with laws and regulations. Condition Found: A material weakness was reported for a lack of internal control for reporting for federal compliance. Cause: The City only has 3 employees in the finance department, so reports are not verified by anyone other than the individual preparing the report. Effect: Due to the lack of internal controls, reports could potentially have inaccuracies due to a lack of oversight. Questioned Costs: There were no questioned costs. Repeat Finding: This is the second audit this finding has been reported. Recommendation: We recommend the City implement compensating controls wherever and whenever possible and practical to prevent future reporting issues.