Finding 30885 (2022-003)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2023-06-20

Audit: 34417

Organization: City of Caneyville Kentucky (KY)

Auditor: Drane & Company PLLC CPAS

AI Summary

Answer: The audit revealed that the City needed to make significant adjustments to the waterline project’s recorded balance.
Trend: There was a consistent issue with misclassifying revenues, specifically treating federal funds as local revenue.
List: Follow up on correcting the revenue classifications and ensure proper recording practices are implemented for future projects.

Finding Text

Material adjustments to the recorded balance of the City?s waterline project were required as part of the audit process and related revenues were misclassified as local rather than from federal sources.

Corrective Action Plan

This finding was the result of a misunderstanding of the source of county funding and of the actual progress of a related construction project. As the project is now complete and no further county assistance is anticipated, the issue is moot.

Other Findings in this Audit

30886 2022-003

Material Weakness
607327 2022-003

Material Weakness
607328 2022-003

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
10.760	Water and Waste Disposal Systems for Rural Communities	$818,000
14.228	Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii	$514,237
21.027	Coronavirus State and Local Fiscal Recovery Funds	$159,935
20.205	Highway Planning and Construction	$13,074
21.019	Coronavirus Relief Fund	$1,730