FAC Explorer

Finding 1163006 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-25
Audit: 372594
Organization: West Virginia Rural Water Association INC (WV)
Auditor: LOWE & ASSOCIATES PLLC

AI Summary

  • Core Issue: Lack of sufficient controls led to inaccurate financial reports for federal program expenditures.
  • Impacted Requirements: Inaccurate accruals for personnel benefits and improper recording of inter-program transfers.
  • Recommended Follow-up: Implement stronger controls to ensure accurate financial reporting and proper recording of transactions.

Finding Text

We determined during our engagement to audit the Association that there were not sufficient controls in place to ensure accurate financial reports were presented to National Rural Water Association, Inc. for federal program expenditures. The Association did not ensure all amounts being accrued for personnel benefits were accurate and correct. The Association also did not ensure inter-program transfers were properly recorded and completed.

Corrective Action Plan

The Association will work with their outside accountant to ensure all financial information is compiled and all necessary year-end closing and adjusting entries are properly completed. The Associaiton is also making changes to their accounting software to streamline the bookkeeping process and improve accuracy.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1163004 2024-004
    Material Weakness Repeat
  • 1163005 2024-004
    Material Weakness Repeat
  • 1163007 2024-005
    Material Weakness Repeat
  • 1163008 2024-005
    Material Weakness Repeat
  • 1163009 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $729,793
10.761 WATER AND WASTE TECHNICAL ASSISTANCE AND TRAINING GRANTS $555,993
66.424 SURVEYS, STUDIES, INVESTIGATIONS, DEMONSTRATIONS, AND TRAINING GRANTS - SECTION 1442 OF THE SAFE DRINKING WATER ACT $167,867
23.011 APPALACHIAN RESEARCH, TECHNICAL ASSISTANCE, AND DEMONSTRATION PROJECTS $129,573
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $75,194
66.436 SURVEYS, STUDIES, INVESTIGATIONS, DEMONSTRATIONS, AND TRAINING GRANTS AND COOPERATIVE AGREEMENTS - SECTION 104(B)(3) OF THE CLEAN WATER ACT $71,515
66.446 TECHNICAL ASSISTANCE FOR TREATMENT WORKS (CLEAN WATER ACT [CWA] SECTION 104(B)(8)) $44,290