Finding 1166018 (2024-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-12-22

AI Summary

  • Issue: The Authority missed the deadline for submitting the Single Audit Report for FY 2024, violating federal requirements.
  • Impact: This delay could result in loss of federal funding and potential penalties due to weak internal controls over the audit process.
  • Next Steps: Implement a monitoring system for audit deadlines, assign clear roles, and maintain regular communication with the auditor to ensure timely submissions.

Finding Text

Untimely Single Audit Filing Condition and criteria: The Authority did not submit their Single Audit Report for the fiscal year ended September 30, 2024 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Authority should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Authority’s Response: Eldred Borough Water Authority was unable to contract a CPA to perform the single audit. The Authority has since contracted with a CPA firm to perform the single audit and do not anticipate it being delayed in submission in future years.

Corrective Action Plan

Untimely Single Audit Filing - Auditor’s Recommendations: The Authority should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Authority’s Response: Eldred Borough Water Authority was unable to contract a CPA to perform the single audit. The Authority has since contracted with a CPA firm to perform the single audit and do not anticipate it being delayed in submission in future years.

Categories

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1166019 2024-005
    Material Weakness Repeat
  • 1166020 2024-006
    Material Weakness Repeat
  • 1166021 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds - Water System Replacements $1.41M