Finding 504748 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-05

AI Summary

  • Core Issue: The Authority failed to submit the September 30, 2023 quarterly report to the U.S. Department of Agriculture on time.
  • Impacted Requirements: Compliance with the reporting requirement mandates quarterly reports, including income and expense statements, be filed within 30 days after each quarter.
  • Recommended Follow-Up: The Authority should review all compliance requirements and ensure timely submission of future reports to avoid funding issues.

Finding Text

Reference Number: 2023-002 Reporting Federal Agency: U.S. Department of Agriculture Federal Program: Water and Waste Disposal Systems for Rural Communities - ALN 10.760 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance Criteria: The Water and Waste Disposal Systems for Rural Communities program requires quarterly repors to be filed with the U.S. Department of Agriculture within 30 days of quarter-end. Reports should include quarterly income and expense statements and be signed by the appropriate official at the Authority. Statement of Condition: The Authority did not file the September 30, 2023 quarterly report with the U.S. Department of Agriculture within the required timeframe. Statement of Cause: The Authority was unacquainted with the requirement noted in the U.S. Department of Agriculture's letter of conditions. Possible Asserted Effect: The Authority is not in compliance with the reporting requirements established by the U.S. Department of Agriculture and may not receive additional funding until this noncomplinace is corrected. Questioned Costs: No questioned costs relating to this reporting finding. Context: Inquired of the Authority and U.S. Department of Agriculture regarding the September 30, 2023 quarterly report, noting one had not been prepared and submitted. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Authority review all applicable compliance requirements for the federal funding including the reporting requirement. Views of responsible officials and planned corrective actions: The Authority did not realize quarterly reports were required and was never asked by USDA for these. USDA was contacted and the Authority has been informed that a quarterly Balance Sheet and Profit and Loss Statement will fulfill this requirement. The past due reports will be sent to USDA this month and going forward, quarterly reports will be forwarded to USDA within 30 days of the end of each quarter.

Corrective Action Plan

The Authority did not realize quarterly reports were required and was never asked by USDA for these. USDA was contacted and the Authority has been informed that a quarterly Balance Sheet and Profit and Loss Statement will fulfill this requirement. The past due reports will be sent to USDA this month and going forward, quarterly reports will be forwarded to USDA within 30 days of the end of each quarter.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1081190 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $4.09M