Finding 1228079 (2023-005)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2026-08-27
Audit: 409909
Organization: Town of Vinton, Va (VA)

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) was prepared without proper supervisor review, leading to significant auditor corrections.
  • Impacted Requirements: There is a lack of effective internal controls and segregation of duties related to federal awards, risking inaccuracies in the SEFA.
  • Recommended Follow-Up: Management should create and implement a written policy to establish internal controls for federal awards.

Finding Text

Schedule of Expenditures of Federal Awards (Material Weakness) Condition The Schedule of Expenditures of Federal Awards (SEFA) was prepared without supervisor review, resulting in several auditor corrections. Criteria Segregation of duties and review procedures should be applied to federal award workpapers. Cause The Town has not designed effective internal controls with regard to federal awards. Effect Risk that the Town’s information in the SEFA is not accurate, complete, or appropriately presented in accordance with Uniform Guidance. Perspective Information Audit adjustments of $661,299 were necessary to correct the Schedule of Expenditures of Federal Awards. Recommendation Management should establish and implement internal controls with regard to federal awards. Views of Responsible Officials and Planned Corrective Action We agree with the finding and we’re working towards developing a written policy.

Corrective Action Plan

Management acknowledges the auditors’ findings and will develop and implement a formal internal control over the preparation and review of the Schedule of Expenditures of Federal Awards to ensure accuracy and compliance with Uniform Guidance. SEFA preparation will be assigned to designated staff, with a separate supervisory review to verify completeness, proper classification, and reconciliation to the general ledger. Written procedures, checklists, and documented reviews will be established, along with staff training on federal award requirements. These actions will reduce the risk of errors and strengthen the reliability of the Town’s federal award reporting

Categories

Reporting Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 1228068 2023-004
    Material Weakness Repeat
  • 1228069 2023-004
    Material Weakness Repeat
  • 1228070 2023-004
    Material Weakness Repeat
  • 1228071 2023-004
    Material Weakness Repeat
  • 1228072 2023-004
    Material Weakness Repeat
  • 1228073 2023-004
    Material Weakness Repeat
  • 1228074 2023-005
    Material Weakness Repeat
  • 1228075 2023-005
    Material Weakness Repeat
  • 1228076 2023-005
    Material Weakness Repeat
  • 1228077 2023-005
    Material Weakness Repeat
  • 1228078 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $7.96M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $129,631
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $46,005
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $19,898
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $10,170
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $1,220
16.034 CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM $450