FAC Explorer

Finding 561608 (2023-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-05-27
Audit: 357221
Organization: Consolidated Public Water Supply District No 1 of Clark County Mo (MO)
Auditor: Harden Cummins Moss & Miller LLC

AI Summary

  • Answer: The District uses a cash basis for reporting, which is preferred by management and the Board.
  • Trend: Adjustments needed to switch to accrual basis at year-end are significant but not classified as misstatements.
  • List: Consider reviewing the impact of cash vs. accrual reporting on financial analysis and decision-making.

Finding Text

The District reports on the cash basis during the year as preferred by management and the Board for monitoring the District’s operations. The adjustments to convert to the accrual basis at year end are material amounts, but are not considered to be misstatements in financial accounting.

Corrective Action Plan

Management is aware that significant year-end adjustments are required for accrual basis financial statement presentation and does not believe the adjustments indicate a misstatement or error in financial reporting although material in amount. Management has the skill, knowledge and experience regarding the District operations to understand and take responsibility for the adjusting journal entries. The District has also engaged an external CPA to come to the office on a monthly basis to assist with monthly reconciliations and adjustments

Categories

Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $1.89M