MUNICIPALITY OF NEW HAVEN

Section III - Federal Award Findings and Questioned Costs Check Signatures 2021-024 GENERAL INFORMATION: The Municipal officials of New Haven obtained a federal loan along with state grants to construct and improve the Municipality's water system. Grant Title: Capitalization Grants for Drinking Water State Revolving Funds CFDA #: 66.468 Federal Agency: Environmental Protection Agency Pass-through Entity Number: 2014W-1540 Pass through Agency: West Virginia Water Development Authority CONDITION: We determined during our engagement to audit that the Municipal officials did not have controls in place requiring at least two signatures be on all checks. Specifically, checks only had one signature. CRITERIA: Proper internal controls dictate that checks should have at least two signatures. QUESTIONED COSTS: Unknown CONTEXT: From the seventeen expenditures, ten checks contained only one signature. CAUSE: The Municipal officials did not have adequate control procedures in place to assure there were at least two signatures on all checks. EFFECT: There is an increased risk of errors or misuse of funds in the expenditure cycle of the federal loan program. REPEAT FINDING: No RECOMMENDATION: Municipal officials should ensure that checks have at least two signatures. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Refer to Corrective Action Plan.

Appendix A Correction Action Plan Federal Award Findings Finding # 2021-024 Title of Finding Check Signatures Contact Person Monica Mitchell Anticipated Completion Date 06/30/2023 Corrective Action planned to be taken: Municipal officials will ensure checks have all required signatures.

Check Preparation 2020-027 GENERAL INFORMATION: The Municipal officials of New Haven obtained a federal loan along with state grants to construct and improve the Municipality's water system. Grant Title: Capitalization Grants for Clean Water State Revolving Funds CFDA #: 66.468 Federal Agency: Environmental Protection Agency Pass-through Entity Number: 2014W-1540 Pass through Agency: West Virginia Department of Health and Human Resources CONDITION: We determined during our engagement to audit that the Municipal officials pre-filled out checks prior to requesting the draw-downs of federal funding to pay invoices. Specifically, checks were filled out with the month and year of expenditure, but did not include the actual day. CRITERIA: Proper internal controls dictate that checks are not pre-filled prior to obtaining all the necessary information needed to write out the check. QUESTIONED COSTS: Unknown CONTEXT: From the thirty-eight expenditures tested, eight checks were pre-filled without inserting the actual date the check was written. CAUSE: The Municipal officials failed to ensure that checks were properly completed with all the required and appropriate information. EFFECT: The Municipal officials lost control over the expenditure cycle regarding the federal loan program. REPEAT FINDING: No RECOMMENDATION: Municipal officials should ensure that checks are not pre-filled in any circumstance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Refer to Corrective Action Plan.

Finding # Title of Finding Contact Person Anticipated Completion Date 2020-027 Check Preparation Kelly Gilland CORRECTED Corrective Action planned to be taken: Municipal officials will ensure checks are not pre-filled prior to obtaining the necessary information to complete the disbursement.