CORRECTIVE ACTION PLAN
October 21, 2024
Berkeley County Public Service Water District respectfully submits the following corrective action plan for the year ended June 30, 2024.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P. 1909 Financial Drive
Harrisonburg, VA 2280l Audit period: June 30, 2024
The findings from the June 30, 2024 Schedule of Findings and Questioned Costs (the "Schedule”) are discussed below. The findings are numbered consistently with the number assigned in the Schedule.
FINDINGS- FINANCIAL STATEMENT AUDIT
2024-001: Material Audit Adjustments (Material Weakness)
Condition:
During the audit, we detected material misstatements in the trial balance. Generally accepted auditing standards dictate that detection of errors in an audit is a strong indicator of a significant deficiency or material weakness. Accordingly, we are required to communicate this finding as such.
Recommendation:
Material audit adjustments indicate that financial information presented to us for the audit was missing or inaccurate. We recommend that management implement processes to ensure accuracy of a accounts. Additionally, all adjustments that were made as a result of our current year audit should be reviewed during the next year as a reminder of matters needing accounting attention in preparing for the 2025 audit.
Corrective Action:
The District uses outside parties to oversee grant management and lease calculations, both items that required material adjustments. District management will review work performed by outside parties to ensure completeness and accuracy.
FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT
2024-002: Single Audit Performance -Assistance Listing #66.468 and Reporting
Condition:
A single audit was not performed for a major program for the fiscal year ended June 30, 2023.
Criteria:
A single audit in accordance with the requirements set forth in the Uniform Guidance is required if total federal expenditures exceed $750,000 in a fiscal year. Federal expenditures exceeded
$750,000 and the major program was a high-risk Type A program for the year ended June 30, 2023.
Cause:
The program required revolving loan fund drawdowns, which did not occur within the fiscal year funds were expended.
Effect:
The identified Type A high risk program was not tested as major.
Questioned Costs:
N/A
Recommendation:
Ensure management considers federal award compliance requirement and ensures that such requirements are satisfied each year.
Corrective Action:
Management will monitor major programs and ensure that they are tested when necessary. The grant in question was tested during 2024.
2024-003: Controls Over Cutoff - COVID-19 Coronavirus State and Local Fiscal Recovery Funds -
Assistance Listing #21.027 and Compliance- Material Weakness
Condition:
During our review of CSLFRF expenditures, we noted approximately $2,577,622 of allowable costs that were recorded in the wrong period.
Criteria:
The expenditures must be reported in the proper period for accurate reporting on the Schedule of Expenditures of Federal Awards.
Cause:
Procedures in place to ensure all expenditures are recorded in the proper period were not followed.
Effect:
Approximately $2,577,622 of allowable costs were recorded in fiscal year 2025 instead of fiscal year 2024.
Questioned Costs:
N/ A - the expenditures in question are allowable costs that were reported in the wrong fiscal year.
Perspective Information:
Five invoices were recorded in the wrong fiscal year.
Recommendation:
We recommend continued communications with all individuals involved in the grant process to ensure activity is recorded in the proper reporting period.
Corrective Action:
The District uses an outside party to oversee grant management. District management will review work performed by outside parties to ensure completeness and accuracy.
If the Federal Audit Clearinghouse has questions regarding this plan, please call Jim Ouellet, Executive Director, at 304 262 3371.