CORRECTIVE ACTION PLAN
December 13, 2023
Department of Local Government
The City of Muldraugh respectfully submits the following corrective action plan for the year ended June 30, 2022.
SK LEE CPAS, P.S.C
P.O. Box 958
Berea, KY 40403
The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule.
FINDINGS-FINANCIAL STATEMENT AUDIT
MATERIAL WEAKNESS
2022 - 001 Financial Statement Preparation
Recommendation:
Management should continue to engage the audit firm to prepare a draft of the financial statements including the notes to the financial statements, or hire an accountant to perform these services.
Action taken:
Management concurs with the finding, however, due to limited economic resources cannot hire an accountant at this time and will continue to engage the audit firm to draft the financial statements including the notes to the financial statements.
2022- 002 Segregation of Duties
Recommendation:
The lack of segregation of duties is a common deficiency in cities the size of Muldraugh
Action taken:
Management concurs with the finding, however, due to limited economic resources cannot hire staff to properly segregate the duties required of the City.
NON - COMPLIANCE
2022 - 003 Late Audit Report
Recommendation:
The City should engage audits with sufficient time to complete the engagement by the required date.
Action taken: Management concurs with the finding and will have the audit completed by the required date.
2022 - 004 Late Submission of Data Collection Form
Recommendation:
The City should complete their DCF by the required date.
Action taken:
Management concurs with the finding and will have the data collection form completed by the required date.
If the Department of Local Government has questions regarding this plan, please call Anthony Lee at (502) 942-2824.
Sincerely yours,
_____________________________________________________________
Anthony Lee, Mayor of Muldraugh, Kentucky