Finding Text
Failure to Maintain Complete Accounting Records for Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Section 200.303 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the Village establish and maintain internal control over federal awards that provide reasonable assurance that the Village is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal award. One of the objectives of internal control over compliance is to ensure that federal transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements, including the Schedule of Expenditures of Federal Awards. Condition: Expenditures from federal grant revenue were not recorded in the Village’s accounting records and there were several posting errors related to the recording of the federal grant revenue.Cause: Oversight. Effect: Federal award transactions could possibly be excluded from the financial statements and the Schedule of Expenditures of Federal Awards. Recommendation: All future federal award revenue and expenditures should be recorded as transactions of the Water System Enterprise Fund in the accounting software. Management’s Response: The accounting records for the federal award revenues and expenditures have been properly maintained for calendar year 2025.