Finding 503819 (2024-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2024-10-28
Audit: 326106
Organization: City of Berea (KY)
Auditor: Rfh PLLC

AI Summary

  • Answer: The City lacks effective internal controls for managing federal reimbursement requests.
  • Trend: This issue may lead to repeated errors in identifying eligible expenditures and could result in financial losses.
  • List: Implement stronger internal controls, train staff on proper expenditure identification, and review past requests to avoid duplication.

Finding Text

The City failed to have internal controls to properly identify expenditures qualifying for federal reimbursement and to exclude expenditures previously requested.

Corrective Action Plan

The City has already made contact with the funding source to discuss next steps for remediation. The City has brought the issue to the attention of the third-party who prepares grant draw requests for the Owsley Fork Reservoir project. For future draw requests, the project manager will reconcile the costs included in the request with the financial accounting system prior to submission of the request. The project manager will ensure reimbursement requests are prepared and submitted at regular intervals. The finance department will match project expenditures to grant revenue received.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1080261 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.916 Watershed Rehabilitation Program $674,139
16.575 Crime Victim Assistance $66,463
21.019 Coronavirus Relief Fund $47,024
16.710 Public Safety Partnership and Community Policing Grants $2,378
11.307 Economic Adjustment Assistance $285