Finding 29996 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 36603
Organization: County of Stanton (NE)
Auditor: Mdt LLC

AI Summary

  • Core Issue: The County lacks effective internal controls to ensure the accuracy and completeness of its federal awards expenditures schedule.
  • Impacted Requirements: Management is responsible for maintaining internal controls and ensuring compliance with the cash basis of accounting, which is currently not being met.
  • Recommended Follow-Up: The County should review and approve auditor-proposed adjustments and ensure the adequacy of the disclosures related to federal awards expenditures.

Finding Text

The County does not have a system of internal control that would provide management with reasonable assurance that the County?s schedule of expenditures of federal awards and related disclosures are complete and presented in accordance with the cash basis of accounting. As such, management requested us to compile the trial balance from the general ledger and prepare a draft of the schedule of expenditure of federal awards, including the related note disclosures. As described in our engagement letter, management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation of the schedule of expenditures of federal awards, in conformity with the cash basis of accounting. Management does not prepare the schedule of expenditures of federal awards in accordance with the cash basis of accounting. The potential exists that a material misstatement of the schedule of expenditures of federal awards could occur and not be prevented or detected by the County?s internal control. We recommend that the County review and approve the proposed auditor adjusting entries and the adequacy of the schedule of the expenditures of federal awards disclosures prepared by the auditors among other procedures as considered necessary by management. The County relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal awards including the related note disclosures. The County reviews schedule of expenditures of federal awards and approves all adjustments.

Corrective Action Plan

The County relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal awards including the related note disclosures. The County reviews schedule of expenditures of federal awards and approves all adjustment. The County will create a spreadsheet of expenditures as reference to assist the auditor.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 606438 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $1.04M
21.027 Coronavirus State and Local Fiscal Recovery Funds $360,496
97.042 Emergency Management Performance Grants $35,835
93.563 Child Support Enforcement $8,647