Finding 527048 (2022-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2025-03-14
Audit: 346138
Organization: Village of La Valle (WI)

AI Summary

  • Core Issue: The Village lacks documented policies and procedures for managing federal and state grants.
  • Impacted Requirements: This absence increases the risk of errors in financial reporting for grant expenditures.
  • Recommended Follow-Up: The Village should collaborate with their auditor to create and implement written grant procedures that align with Uniform Guidance.

Finding Text

2022-004 – Federal Grant Procedure Manual Condition: Internal controls over federal and state grants should be in place to provide reasonable assurance that misstatements in the schedules of expenditures of federal and State of Wisconsin awards would be prevented or detected. Criteria: Villages who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The Village does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal and state grant is low, and the risk of misstatement in the schedules of expenditures of federal and State of Wisconsin awards is high. Auditor’s Recommendation: We recommend that the Village adopts written policies and procedures over grants and grant expenditures. Grantee’s Response: The Village will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.

Corrective Action Plan

2022-004 Federal Grant Procedure Manual Condition: Internal controls over federal and state grants should be in place to provide reasonable assurance that misstatement in the schedules of expenditures of federal and State of Wisconsin awards would be prevented or detected. Criteria: Villages who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The Village does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal and state grants is low, and the risk of misstatement in the schedules of expenditures offederal and State of Wisconsin awards is high. Auditor's Recommendation: We recommend that the Village adopts written policies and procedures over grants and grant expenditures. Grantee Response: The Village will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance. Contact Person: Deanna Copsey Anticipated Completion: December 31, 2023

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 527049 2022-005
    Material Weakness
  • 1103490 2022-004
    Material Weakness Repeat
  • 1103491 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.763 Emergency Community Water Assistance Grants $414,960
97.039 Hazard Mitigation Grant $389,114
21.027 Coronavirus State and Local Fiscal Recovery Funds $37,785
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $19,261