FAC Explorer

Finding 1175157 (2025-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-02-24
Audit: 388777
Organization: Town of Manteo (NC)
Auditor: THOMPSON PRICE SCOTT ADAMS & CO P A

AI Summary

  • Core Issue: The Town failed to follow the grant agreement's cash management policy by not spending received funds within three business days.
  • Impacted Requirements: Timely expenditure of funds is crucial to avoid potential interest loss and ensure compliance with grant terms.
  • Recommended Follow-Up: The Town should establish and enforce internal controls to prevent future noncompliance and ensure timely fund management.

Finding Text

Capitalization Grants for Clean Water State Revolving SIGNIFICANT DEFICIENCY/NONCOMPLIANCE 2025 - 001 Cash Management Criteria: The Town did not adhere to the grant agreement cash management policy. Condition: The Town did not expend requisitioned funds within three business days following the receipt of the funds from the State. Effect: Monies receipted by the Town were not paid out in a timely manner and were not expended within three business days and could have been accruing interest from the bank. Cause: The Town did not have proper internal controls in place to safeguard against this type of policy. Identification of a repeat finding: This is not a repeat finding. Recommendation: The Town should implement internal controls to safeguard against these types of policies to ensure that they are not repeat or future findings. Views of responsible officials and planned corrective actions: The Town agrees to this recommendation and will implement proper controls immediately.

Corrective Action Plan

Capitalization Grants for Clean Water State Revolving Funds SIGNIFICANT DEFICIENCY/NONCOMPLIANCE 2025 - 001 Cash Management Name of contact person: Heather Doughtie, Finance Director Corrective Action: Management will install measures to ensure future grant funds are expended with the required Cash Management time limits. Proposed Completion Date: The Board will implement the above procedure immediately.

Categories

Cash Management Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
66.458 CLEAN WATER STATE REVOLVING FUND $1.61M
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $24,465