Finding 976626 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-06-06
Audit: 308321
Organization: City of Prichard (AL)
Auditor: Moody & Company

AI Summary

  • Issue: A vendor received a duplicate payment of $195,500 due to inadequate internal controls.
  • Impact: This significant deficiency resulted in an incorrect payment that needs to be addressed.
  • Follow-up: Strengthen internal controls and request the vendor to repay the amount to the City.

Finding Text

2023-002: Duplicate Payment; CFDA Number: 21.027, American Rescue Plan; CONDITION AND CRITERIA: An adequate internal control system should include a system of checks and balances to ensure proper payment to vendors. During the current year audit, it was noted that a vendor inadvertently received a duplicate payment in the amount of $195,500. TYPE OF FINDING: Significant Deficiency CAUSE: The internal control structure was not adequate to prevent this deficiency. EFFECT: $195,500 was incorrectly paid to the vendor. AUDITORS' RECOMMENDATION: We recommend that the City strengthen its internal controls in relation to this issue. We also recommend that the vendor repay the money to the City.

Categories

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 400184 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.58M
14.218 Community Development Block Grants/entitlement Grants $133,303
20.205 Highway Planning and Construction $24,704
16.738 Edward Byrne Memorial Justice Assistance Grant Program $19,770
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $15,361