FAC Explorer

Finding 575371 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-09-02
Audit: 365408
Organization: Renville County (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: Several significant audit adjustments were required due to incomplete year-end accounting entries.
  • Impacted Requirements: The County must ensure accurate financial statements to prevent material misstatements.
  • Recommended Follow-Up: Management should review all journal entries and improve procedures to minimize future adjustments.

Finding Text

Material Audit Adjustments Condition: During our audit, adjustments were needed to record a number of audit adjustments, including the follwing material entries: - To adjust beginning fund balances - To adjust capital asset activity and realted retainage - To adjust state and federal aid revenues and receivables - To adjust special assessment classifications - To adjust sales tax activity - To record additional receivable and payable accruals - To record accrued interest on investments - To record internal service fund activity Criteria: The financial statements are the responsibility of the County's management; therefore, the County must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures. Cause: County staff has not prepared a year-end trial balance reflecting all necessary accounting entries. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the County's system of internal control. The audit firm cannot serve as a compensating control over this deficiency. Recommendation: We recommend that mangement review each journal entry. obtain an understanding of why the entry was necessary and modify procedures to ensure that future corrections are not needed. Management Response: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necessary for future audits. The County Finance Coordinator plans to remedy this finding in future years. Updated Progress Since Prior Year: No changes have been made to address this finding.

Corrective Action Plan

Material Audit Adjustments 1. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necassary for future audits. The Conuty Finance Coordinator plans to remedy this finding in future years. 3. Official Responsible for Ensuring CAP: Lisa Herges, County Administrator, is the official responsible for ensuring corrective action of the material weakness. 4. Planning Compltion Date for CAP: December 31, 2025. 5. Plan to Monitor Completion of CAP: The County Board will be monitoring this corrective action plan. Sincerely, Lisa Herges County Administrator

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $912,577
93.778 Medical Assistance Program $678,549
93.563 Child Support Services $297,638
97.067 Homeland Security Grant Program $206,581
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $176,071
93.558 Temporary Assistance for Needy Families $144,399
20.205 Highway Planning and Construction $128,152
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $106,647
93.667 Social Services Block Grant $103,120
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $89,864
93.658 Foster Care Title IV-E $75,026
16.831 Children of Incarcerated Parents $66,587
20.600 State and Community Highway Safety $48,856
93.268 Immunization Cooperative Agreements $30,497
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $24,042
93.994 Maternal and Child Health Services Block Grant to the States $23,754
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $19,455
93.069 Public Health Emergency Preparedness $17,462
16.575 Crime Victim Assistance $13,020
93.645 Stephanie Tubbs Jones Child Welfare Services Program $4,608
93.590 Community-Based Child Abuse Prevention Grants $2,948
84.184 School Safely National Activities $2,684
93.556 Marylee Allen Promoting Safe and Stable Families Program $2,584
93.575 Child Care and Development Block Grant $2,416
93.959 Block Grants for Prevention and Treatment of Substance Abuse $950
93.747 Elder Abuse Prevention Interventions Program $571
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $502
93.767 Children's Health Insurance Program $131