Finding 628683 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-10-31
Audit: 49087
Organization: Village of Catlin (IL)

AI Summary

  • Core Issue: Monthly reconciliation of water/wastewater revenue bills is not being performed.
  • Impacted Requirements: GAAP mandates that internal controls and reconciliation procedures are in place to ensure accurate revenue recognition.
  • Recommended Follow-Up: Train new accounting personnel on established reconciliation procedures and ensure regular reviews are conducted.

Finding Text

FINDING 2022-003 Water and Wastewater Revenue Balancing Procedures Condition: Revenue from the water/wastewater bills were not reconciled on a monthly basis. Criteria: GAAP requires proper internal control and reconciliation procedures be implemented over revenue to insure revenue is recognized timely and accurately. Cause: Procedures were established in prior years, however, they were not being implemented or reviewed, possibly due to a change in accounting personnel. Effect: Without appropriate internal control, reconciliation, and review procedures, misstatement of revenue could go undetected. Repeat Finding: No Recommendation: Implement and review the reconciliation procedures that were established in prior years. Views of Responsible Officials: Shelley McLain is going to train the new personnel on the reconciliation and review procedures that have been implemented.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 52239 2022-001
    Significant Deficiency Repeat
  • 52240 2022-002
    Significant Deficiency Repeat
  • 52241 2022-003
    Significant Deficiency
  • 52242 2022-001
    Significant Deficiency Repeat
  • 52243 2022-002
    Significant Deficiency Repeat
  • 52244 2022-003
    Significant Deficiency
  • 628681 2022-001
    Significant Deficiency Repeat
  • 628682 2022-002
    Significant Deficiency Repeat
  • 628684 2022-001
    Significant Deficiency Repeat
  • 628685 2022-002
    Significant Deficiency Repeat
  • 628686 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $895,105