FAC Explorer

Finding 621960 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-25
Audit: 51160
Organization: Vilas County (WI)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The County lacks sufficient internal control over financial reporting, relying on external auditors for expertise in preparing the annual financial report.
  • Impacted Requirements: The County's financial statements may not meet GAAP standards without proper internal review by knowledgeable staff.
  • Recommended Follow-Up: Ensure a thorough review of the annual financial report by someone with strong accounting knowledge, like the finance director, to maintain accuracy and compliance.

Finding Text

2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 45514 2022-001
    Significant Deficiency Repeat
  • 45515 2022-002
    Significant Deficiency Repeat
  • 45516 2022-001
    Significant Deficiency Repeat
  • 45517 2022-002
    Significant Deficiency Repeat
  • 45518 2022-001
    Significant Deficiency Repeat
  • 45519 2022-002
    Significant Deficiency Repeat
  • 45520 2022-001
    Significant Deficiency Repeat
  • 45521 2022-002
    Significant Deficiency Repeat
  • 621956 2022-001
    Significant Deficiency Repeat
  • 621957 2022-002
    Significant Deficiency Repeat
  • 621958 2022-001
    Significant Deficiency Repeat
  • 621959 2022-002
    Significant Deficiency Repeat
  • 621961 2022-002
    Significant Deficiency Repeat
  • 621962 2022-001
    Significant Deficiency Repeat
  • 621963 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $192,294
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $90,643
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,584
93.778 Medical Assistance Program $72,218
97.042 Emergency Management Performance Grants $49,697
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $43,408
16.835 Body Worn Camera Policy and Implementation $42,890
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $41,559
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $34,990
93.090 Guardianship Assistance $34,398
93.052 National Family Caregiver Support, Title Iii, Part E $19,515
20.219 Recreational Trails Program $18,773
93.323 Flexible Alternatives for State Transformation Model $15,825
93.069 Public Health Emergency Preparedness $14,099
93.053 Nutrition Services Incentive Program $12,615
93.658 Foster Care_title IV-E $12,158
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $11,094
93.994 Maternal and Child Health Services Block Grant to the States $8,439
93.667 Social Services Block Grant $8,242
93.958 Block Grants for Community Mental Health Services $8,068
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $7,234
16.710 Public Safety Partnership and Community Policing Grants $6,850
93.991 Preventive Health and Health Services Block Grant $6,059
93.767 Children's Health Insurance Program $5,792
93.558 Temporary Assistance for Needy Families $4,866
93.556 Promoting Safe and Stable Families $3,801
93.747 Elder Abuse Prevention Interventions Program $3,768
93.324 State Health Insurance Assistance Program $3,500
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $2,335
93.268 Immunization Cooperative Agreements $2,186
93.071 Medicare Enrollment Assistance Program $2,078
16.551 Cooperative Law Enforcement Operating Plan $1,350
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1,309
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1,293
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1,273
93.645 Stephanie Tubbs Jones Child Welfare Services Program $740
93.575 Child Care and Development Block Grant $160
93.659 Adoption Assistance $58
93.563 Child Support Enforcement $-19,721