Finding 41763 (2022-004)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-05-08
Audit: 38409
Organization: Village of Reedsville (WI)

AI Summary

  • Core Issue: A material journal entry was needed to correct a double payment of expenses, leading to misstated federal award reports.
  • Impacted Requirements: Internal controls failed to catch the double payment, violating Uniform Guidance standards.
  • Recommended Follow-Up: Enhance invoice processing controls and arrange repayment of $195,459.45 to the USDA; management will track claims to prevent future errors.

Finding Text

2022-004 ? Federal Award Finding Program: Water and Waste Disposal Systems for Rural Communities. Criteria: Uniform Guidance. Condition: A material journal entry was required to prevent the Schedule of Expenditures of Federal Awards from being misstated. Questioned Costs: $195,459.45. Context: Internal controls did not identify the double payment of expenses. Effect: This weakness resulted in double payment on some expenses. Information: Isolated instance. Prior Year Finding: This was not a prior year audit finding. Recommendation: Improve the Village?s invoice processing internal controls to prevent these types of double payments from occurring in the future. Arrange for repayment of overpaid grant funds to the USDA. Management?s Response: The Village will maintain a spreadsheet of individual amounts claimed and paid by category and vendor to prevent expense from being claimed more than once.

Corrective Action Plan

The Village will maintain a spreadsheet of individual amounts claimed and paid by category and vendor to prevent expense from being claimed more than once.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 618205 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $979,233
21.027 Coronavirus State and Local Fiscal Recovery Funds $42,043