Finding 1170264 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-01-22

AI Summary

  • Core Issue: The accounts receivable general ledger was not reconciled with the billing software's aging report.
  • Impacted Requirements: Proper internal controls over accounts receivable were not followed, leading to a significant deficiency.
  • Recommended Follow-Up: The Treasurer should ensure monthly reconciliations between the billing software and general ledger are performed to maintain accuracy.

Finding Text

Criteria: Proper internal controls over accounts receivable would include reconciling the accounts receivable balance between the general ledger and billing software. Statement of Condition: Significant Deficiency - The District’s accounts receivable general ledger was not reconciled with the accounts receivable aging report that is maintain in a separate billing software. Cause: The Treasurer was correctly recording the monthly activity from the billing software but was not reconciling the accounts receivable balance in the general ledger to the aging report from the billing software. Effect: The results of our tests revealed no questioned costs or material misstatements. Recommendation: Tara Volesky, Treasurer should reconcile the accounts receivable balance from the billing software with the accounts receivable general ledger balance monthly to insure an accurate accounts receivable balance on the general ledger. Views of Responsible Officials and Corrective Action: The District has added reconciling the accounts receivable balance from the billing software to the general ledger accounts receivable balance, to their monthly closing process.

Corrective Action Plan

Views of Responsible Officials and Corrective Action: The District has added reconciling the accounts receivable balance from the billing software to the general ledger accounts receivable balance, to their monthly closing process.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1170262 2025-001
    Material Weakness Repeat
  • 1170263 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.442 WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATION SMALL AND UNDERSERVED COMMUNITIES EMERGING CONTAMINANTS GRANT PROGRAM $929,072
66.468 DRINKING WATER STATE REVOLVING FUND $27,276