FAC Explorer

Finding 485639 (2023-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-03
Audit: 318434
Organization: City of Dell Rapids (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls, leading to inaccuracies in the City’s project and expenditure report.
  • Impacted Requirements: The City must ensure that all reports are accurate and align with the general ledger.
  • Recommended Follow-Up: Management should implement procedures to guarantee the accuracy of quarterly construction reports and timely submissions.

Finding Text

Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed accurately by the City. Condition – During the course of our engagement, we noted that the annual project and expenditure report submitted for the year ended December 31, 2023, had amounts reported that did not agree to the general ledger system of the City. Cause – The City does not have an internal control system designed to ensure that the project and expenditure report is submitted accurately. Effect – The control deficiency could result in the City’s project and expenditure report is not being completed accurately. Questioned Costs – None reported Context/Sampling – The entirety of the annual reporting requirement was tested. Repeat Finding from Prior Years – No Recommendation – Management should put procedures in place to ensure that all quarterly construction reports are accurate and submitted by the required due dates. View of responsible officials – Management is in agreement with the finding.

Corrective Action Plan

Finding 2023-004 Reporting Material Noncompliance and Material Weakness in Internal Control over Compliance Finding Summary: The annual project and expenditure report submitted for the year ended December 31, 2023 for Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds, had amounts reported that did not agree to the general ledger of the City. Responsible Individuals: Steve McFarland, City Administrator Corrective Action Plan: The City will establish controls to follow all applicable reporting requirements under Uniform Guidance and applicable CFR sections. Anticipated Completion Date: December 31, 2024

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 485640 2023-004
    Material Weakness
  • 485641 2023-005
    Material Weakness
  • 485642 2023-005
    Material Weakness
  • 1062081 2023-004
    Material Weakness
  • 1062082 2023-004
    Material Weakness
  • 1062083 2023-005
    Material Weakness
  • 1062084 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.22M
97.039 Hazard Mitigation Grant $62,886