Finding 606397 (2022-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 31776
Organization: County of Accomack, Virginia (VA)

AI Summary

  • Core Issue: Significant errors were found in financial statements and procurement policies, indicating a lack of compliance with GAAP and federal standards.
  • Impacted Requirements: Financial reporting processes need improvement, and procurement policies must align with 2 CFR regulations to ensure compliance.
  • Recommended Follow-Up: Management should assess staffing levels and update procurement policies to meet necessary standards and prevent future issues.

Finding Text

B. FINDINGS - FINANCIAL STATEMENT AUDIT IC-2022-001: Financial Reporting (Material Weakness) Condition: Material misstatements within the financial statements were identified throughout the audit. Criteria: Management should have processes and procedures in place so as to be able to generate financial statements and reports that are complete and accurate on a timely basis and in accordance with generally accepted accounting principles (GAAP). Cause: The current size of the finance staffing of the County and School Board may not be sufficient to detect and prevent material errors. Effect: Financial statements and reports prepared in accordance with GAAP were not able to be generated accurately on a timely basis. Recommendation: We recommend that management re-evaluate the current staff structure and assignment of responsibilities in order to re-align roles and responsibilities with appropriate personnel or otherwise bolster their resource base so as to be able to meet the criteria. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan. C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT FA-2022-001: Procurement (Material Weakness) Condition: The School Board?s written procurement policies do not include policies that cover CFR ?200.318e, ?200.318f, ?200.318i, ?200.319b, ?200.319c, ?200.319d, ?200.319e, ?200.320a1, ?200,322, ?200.324b, ?200.326 and ?200.327. Criteria: Non-federal entities must follow the procurement standards set out at 2 CFR (Uniform Guidance) ?200.318 through ?200.327. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Cause: The procurement policies for the School Board do not include the policies stated above, required by Uniform Guidance. Effect: The School Board?s policies do not comply with procurement requirements for federal awards (Uniform Guidance). Questioned Cost Amount: n/a Perspective Information: n/a Context: n/a Recommendation: Procurement policies should be reviewed and updated to be in compliance with the requirements identified in 2 CFR Part 200. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.

Categories

Procurement, Suspension & Debarment Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 29955 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $3.97M
10.555 National School Lunch Program $2.20M
84.010 Title I Grants to Local Educational Agencies $2.06M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.32M
10.553 School Breakfast Program $962,500
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $640,795
93.558 Temporary Assistance for Needy Families $363,788
93.778 Medical Assistance Program $333,874
21.027 Coronavirus State and Local Fiscal Recovery Funds $333,420
93.667 Social Services Block Grant $323,064
21.019 Coronavirus Relief Fund $284,244
84.367 Improving Teacher Quality State Grants $268,873
84.424 Student Support and Academic Enrichment Program $265,678
84.011 Migrant Education_state Grant Program $221,541
93.659 Adoption Assistance $219,261
84.358 Rural Education $178,685
93.658 Foster Care_title IV-E $170,714
97.039 Hazard Mitigation Grant $170,354
84.048 Career and Technical Education -- Basic Grants to States $148,405
32.009 Emergency Connectivity Fund Program $95,458
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $81,700
15.000 Chincoteague Wildlife Refuge $74,770
84.365 English Language Acquisition State Grants $68,622
93.568 Low-Income Home Energy Assistance $67,060
84.027 Special Education_grants to States $52,545
16.575 Crime Victim Assistance $51,481
97.042 Emergency Management Performance Grants $48,152
10.559 Summer Food Service Program for Children $44,033
84.173 Special Education_preschool Grants $37,199
20.106 Airport Improvement Program $32,000
97.067 Homeland Security Grant Program $28,011
93.556 Promoting Safe and Stable Families $19,395
20.600 State and Community Highway Safety $17,627
10.649 Pandemic Ebt Administrative Costs $5,814
16.000 Inmate Social Security Bounty $5,100
93.472 Title IV-E Prevention and Family Services and Programs (a) $4,691
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $4,077
93.767 Children's Health Insurance Program $3,442
16.034 Coronavirus Emergency Supplemental Funding Program $2,059
93.566 Refugee and Entrant Assistance_state Administered Programs $1,759
93.645 Stephanie Tubbs Jones Child Welfare Services Program $897
93.599 Chafee Education and Training Vouchers Program (etv) $442
93.090 Guardianship Assistance $357