Finding 44456 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-19
Audit: 50297
Organization: Village of Pleasant Prairie (WI)

AI Summary

  • Core Issue: Reports submitted by the Village lacked independent review, increasing the risk of errors.
  • Impacted Requirements: Internal controls for compliance with federal program requirements were not established as per Uniform Guidance.
  • Recommended Follow-Up: Ensure that all reports are reviewed by someone other than the preparer before submission to grantors.

Finding Text

Federal Assistance Listing Number and Program Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Number(s): 1505-0271 Federal Agency: Department of the Treasury Pass-Through Agency: N/A Criteria: The Uniform Guidance requires that local entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance further requires auditors to obtain an understanding of the local entity's internal control over federal programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: Two of two reports were sampled. Neither report was reviewed and approved by someone other than the report preparer prior to submission. The sample was not statistically valid. Cause: The Village did not have internal control procedures in place requiring an independent person to review the reports before submission to ensure accuracy and timeliness. Effect: Reports submitted by the Village could contain errors. Questioned Costs: None noted. Recommendation: We recommend that an employee other than the preparer review all reports before they are submitted to grantors. Management's Response: All future reports will be reviewed by another employee prior to being submitted.

Corrective Action Plan

Federal Assistance Listing and Program Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Number(s): 1505-0271 Federal Agency: Department of the Treasury Pass-Through Agency: N/A Criteria: The Uniform Guidance requires that local entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. The Uniform Guidance further requires auditors to obtain an understanding of the local entity's internal control over federal programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: Tow of two reports were sampled. Neither report was reviewed and approved by someone other than the report preparer prior to submission. The sample was not statistically valid. Cause: The Village did not have internal control procedures in place requiring an independent person to review the reports before submission to ensure accuracy and timeliness. Effect: Reports submitted by the Village could contain errors. Questioned Costs: None noted. Recommendation: We recommend that an employee other than the preparer review all reports before they are submitted to grantors. Corrective Action Planned: All future reports will be reviewed by another employee prior to being submitted. Official Responsible for Ensuring the Corrective Action Plan: Kathy Goessl, Finance Director / Treasurer Planned Completion Date for the Corrective Action Plan: December 31, 2023

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 620898 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.84M
21.027 Coronavirus State and Local Fiscal Recovery Funds $56,945
97.067 Homeland Security Grant Program $2,750