Finding 508419 (2023-002)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2024-11-20

Audit: 329047

Organization: Fremont County Association of Governments (WY)

Auditor: Summit West CPA Group PC

AI Summary

Core Issue: The transition to three accounting systems led to duplicate records, complicating the audit process.
Impacted Requirements: Accurate and consistent accounting records are essential for reliable financial reporting.
Recommended Follow-up: Review and streamline accounting practices to eliminate duplication and enhance data reconciliation.

Finding Text

MATERIAL WEAKNESS Finding 2023-002: DUPLICATE OF ACCOUNTING RECORDS Repeat Finding from Prior Year No Condition The entity changed its accounting practices by transitioning from a single system to three separate systems. During this conversion, much of the accounting data was duplicated, making it challenging to audit the records effectively. Criteria Accounting records should be maintained accurately and consistently to facilitate reliable financial reporting and auditing processes Cause The transition to multiple accounting systems resulted in the duplication of entries, which has compromised the integrity of the financial records. Effect The duplication of accounting records increases the complexity of the audit process, creating a higher risk of errors and misstatements in the financial statements. This condition can hinder the entity’s ability to provide a clear and accurate representation of its financial position. Questioned Costs Not applicable Sampling Method Not applicable Recommendation The entity should review and streamline its accounting practices to eliminate duplication during the transition to the new systems. Implementing a more robust data reconciliation process will help ensure the accuracy of the financial records and facilitate a smoother audit process. Response and Views of Responsible Officials See Corrective Action Plan and Response to Findings.

Corrective Action Plan

ITEM 2023-002: DUPLICATE ACCOUNTING RECORDS In response to Finding 2023-002, we clarify that the duplication of accounting records originated from the implementation of an FY22 audit recommendation. The auditing firm was designated to address and reconcile these duplicate entries; however, this task was not completed, leading to a backlog that impacted the timely completion of the FY23 audit. We have since undertaken a comprehensive reconciliation of all duplicate entries, ensuring accurate and complete financial records moving forward. With this corrective action finalized, we are now positioned to prevent reoccurrence and maintain a streamlined, efficient accounting process. Contact person: Tim Nichols Anticipated completion date: November 29, 2024

Other Findings in this Audit

508418 2023-001

Significant Deficiency Repeat
508420 2023-001

Significant Deficiency Repeat
508421 2023-002

Material Weakness
508422 2023-001

Significant Deficiency Repeat
508423 2023-002

Material Weakness
508424 2023-001

Significant Deficiency Repeat
508425 2023-002

Material Weakness
1084860 2023-001

Significant Deficiency Repeat
1084861 2023-002

Material Weakness
1084862 2023-001

Significant Deficiency Repeat
1084863 2023-002

Material Weakness
1084864 2023-001

Significant Deficiency Repeat
1084865 2023-002

Material Weakness
1084866 2023-001

Significant Deficiency Repeat
1084867 2023-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
20.509	Formula Grants for Rural Areas and Tribal Transit Program	$741,903
93.569	Community Services Block Grant	$467,529
20.526	Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs	$288,150
20.600	State and Community Highway Safety	$2,145