Finding 1164321 (2023-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2025-12-10

Audit: 373746

Organization: Consolidated Public Water Supply District No 1 of Clark County Mo (MO)

Auditor: HARDEN CUMMINS MOSS & MILLER LLC

AI Summary

Answer: The District uses a cash basis for reporting, which is preferred by management and the Board.
Trend: There are significant adjustments needed to switch to the accrual basis at year-end.
List: These adjustments are material but are not classified as misstatements in financial accounting.

Finding Text

The District reports on the cash basis during the year as preferred by management and the Board for monitoring the District’s operations. The adjustments to convert to the accrual basis at year end are material amounts, but are not considered to be misstatements in financial accounting.

Corrective Action Plan

Management is aware that significant year-end adjustments are required for accrual basis financial statement presentation and does not believe the adjustments indicate a misstatement or error in financial reporting although material in amount. Management has the skill, knowledge and experience regarding the District operations to understand and take responsibility for the adjusting journal entries. The District has also engaged an external CPA to come to the office on a monthly basis to assist with monthly reconciliations and adjustments

Other Findings in this Audit

1164320 2023-001

Material Weakness Repeat
1164322 2023-003

Material Weakness Repeat
1164323 2023-004

Material Weakness Repeat
1164324 2023-005

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.760	WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES	$1.89M