Finding Text
Prior Year Finding: N/A Federal Agency: U.S. Department of Agriculture Entity: City of Blackduck (the City) Federal Program: Community Facilities Loans and Grants Assistance Listing: 10.766 Federal Award Identification Number and Year: LB 8748260 2024 Pass-Through Entity: N/A Compliance Requirement: Reporting Type of Finding Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: There should be formally documented review of the management report prior to sending to the USDA by an individual other than the person preparing the report. Condition: The City was unable to provide a documented formal review process for the management report. Context: The City was unable to provide a documented formal review process for the management report. Cause: The City Administator prepares and sends the report and there is no formal review, as there are only two individuals working in finance at the City. There should be one individual preparing this report, and another individual reviewing this report to have adequate review over the management report. Effect: There is no way to verify the review process was completed and completed timely. Questioned Costs: None. Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Views of Responsible Officials: There is no disagreement with the audit finding, the City will implement a most robust internal control process.