FAC Explorer

Finding 1162173 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-10
Audit: 371980
Organization: Middle Peninsula Planning District Commission (VA)
Auditor: DUNHAM AUKAMP & RHODES PLC

AI Summary

  • Core Issue: The Commission failed to provide an accurate schedule of expenditures for federal awards due to insufficient controls.
  • Impacted Requirements: Lack of timely accounting functions and proper identification of federal awards led to errors in financial reporting.
  • Recommended Follow-Up: Implement a new policy for revenue recording in the general ledger, ensuring clarity on funding sources and continuity during staff changes.

Finding Text

Criteria: The Commission is required to provide a schedule of expenditures of federal awards (SEFA) to the auditor. Condition: The Commission did not have sufficient controls to ensure the SEFA accurately reflected each award’s federal expenditures. Cause: The Commission had staff turnover in the finance position and did not have sufficient controls and redundancies to allow all accounting functions to be performed on a timely basis. Effect: The errors were corrected through adjustments proposed as part of the audit, and the final version of the SEFA reconciles to the Commission’s general ledger. Recommendation: The Commission should implement controls to ensure that all revenue is properly recorded in the general ledger and all federal awards are properly identified. Views of responsible officials and planned corrective actions: The CFO will develop a policy for how revenue is to be accrued into the general ledger with a designation of funding source. The policy shall be memorialized as an MPPDC financial operations document and jointly signed by the CFO and the Executive Director. The policy shall state why the preferred method was selected to ensure continuity of operations in the event of future staff turnover.

Corrective Action Plan

Description of Finding: The Commission is required to provide a schedule of expenditures of federal awards (SEFA) to the auditor. The Commission did not have sufficient controls to ensure the SEFA accurately reflected each award's federal expenditures. Statement of Concurrence or Nonconcurrence: The auditee agrees with these recommendations and has taken the necessary steps to prevent a re-occurrence as of October of 2025. Corrective Action: The CFO will develop a policy for how revenue is to be accrued into the general ledger with a designation of funding source. The policy shall be memorialized as an MPPDC financial operations document and jointly signed by the CFO and the Executive Director. The policy shall state why the preferred method was selected to ensure continuity of operations in the event of future staff turnover. Name of Contact Person: Candace Harris, Chief Financial Officer Projected Completion Date: November 30, 2025

Categories

Reporting

Other Findings in this Audit

  • 1162169 2024-001
    Material Weakness Repeat
  • 1162170 2024-002
    Material Weakness Repeat
  • 1162171 2024-003
    Material Weakness Repeat
  • 1162172 2024-001
    Material Weakness Repeat
  • 1162174 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $455,942
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $274,899
11.419 COASTAL ZONE MANAGEMENT ADMINISTRATION AWARDS $250,316
11.303 ECONOMIC DEVELOPMENT_TECHNICAL ASSISTANCE $64,004
66.419 WATER POLLUTION CONTROL STATE, INTERSTATE, AND TRIBAL PROGRAM SUPPORT $57,080
20.505 METROPOLITAN TRANSPORTATION PLANNING AND STATE AND NON-METROPOLITAN PLANNING AND RESEARCH $54,304
66.466 CHESAPEAKE BAY PROGRAM $45,230
97.047 PRE-DISASTER MITIGATION $24,940
97.039 HAZARD MITIGATION GRANT $16,831
90.705 LDD CAPACITY BUILDING $1,701