Finding Text
Major Federal Program: The major federal program affected is Water and Waste Disposal Systems for Rural Communities - #10.760. Criteria: Internal control can help a City achieve its performance targets and prevent loss of resources. It can help ensure reliable financial reporting, and it can help ensure that the City complies with laws and regulations. Condition Found: A material weakness was reported for a lack of internal control for reporting for federal compliance. Cause: The City only has 3 employees in the finance department, so proper internal controls have not been achieved. Effect: Due to the lack of internal controls, reports that were required to be filed with Rural Development were not filed in a timely manner. Questioned Costs: There were no questioned costs. Repeat Finding: This finding has not previously been reported. Recommendation: We recommend the City implement compensating controls wherever and whenever possible and practical to prevent future reporting issues.