EIN: 626000432
UEI: KSAUCZFSBQD7
Data as of August 24, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 3, 2020. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by February 3, 2021 (2029 days ago).
What is a management decision? →Condition and Criteria- The City Water & Sewer Fund continues to show a significant water loss of 56%, which is up from the preceding year amount of although this is an improvement over the prior year's loss of 43%. Effect - As in prior years, City management has expressed their concern over the magnitude of the loss and have indicated they are continuing to make all practical attempts to locate the source and / or reasons for the loss. Recommendation: Even though the City produces its own water supply, the resolution of the matter could have positive benefits to the system and we strongly encourage the City to continue its effort in resolving the matter
Show full finding ▾Hide full finding ▴Condition and Criteria- The City Water & Sewer Fund continues to show a significant water loss of 56%, which is up from the preceding year amount of although this is an improvement over the prior year's loss of 43%. Effect - As in prior years, City management has expressed their concern over the magnitude of the loss and have indicated they are continuing to make all practical attempts to locate the source and / or reasons for the loss. Recommendation: Even though the City produces its own water supply, the resolution of the matter could have positive benefits to the system and we strongly encourage the City to continue its effort in resolving the matter
Significant Deficiency: Finding 2019-001 Water Loss Action Taken The Waverly Water System has made significant progress in reducing the amount of water lost through its system since FYE 2016. Historically, the System has experienced chronic issues with water loss due to the size and configuration of its distribution network. Although infrastructure replacement is recognized as the long-term solution, it is not economically possible in the short-term. During 2019, management primarily focused on developing alternative solutions to address significant contributors to water loss. A system evaluation identified faulty water meters as a likely source of high-water loss due to their average age, as meter reading accuracy degrades over time. Funding was sought and obtained through a combination of sources in order to finance the replacement of all faulty meters in the system with an automated/smart meter system. This project will not only enhance consumption accuracy, but will provide valuable data for analysis and support the longer-term Smart Management initiative aimed at system optimization. The City is still evaluating the effectiveness of the meter replacement project and complying data. The project has not been completed long enough to know the long-term effects at this time. The City has plans of doing annual leak surveys to rule out water leaks. Future plans for other water system improvements are being developed.
Finding 2019-002 - Late Filing of Financial Statements for 2019 with the Comptroller of The Treasury State of Tennessee and Applicable Government Authorities Condition and Criteria The Finance Director resigned his position in June 2019 prior to closing prior to the completion of closing out the City financial records for the year ended June 30, 2019. The City's chief accountant along with accounting personnel of an independent local accounting firm completed the close out procedures for the City for the fiscal year 2018-19 with the process being completed in May, 2020. Effect Due to the unforeseen departure of the City Finance Director, the City was unable to meet the contract due date specified in its contract with the State of Tennessee of December 31, 2019. Further, as a result of the Finance Director's departure from the City, the Finance Office, did not prepare and provide for audit the SEF A for the fiscal year ending June 30, 2019 until June 2020. Recommendation We recommend the City take whatever measures that are available to insure the completion of its annual audit and related matters in a timely manner.
Show full finding ▾Hide full finding ▴Finding 2019-002 - Late Filing of Financial Statements for 2019 with the Comptroller of The Treasury State of Tennessee and Applicable Government Authorities Condition and Criteria The Finance Director resigned his position in June 2019 prior to closing prior to the completion of closing out the City financial records for the year ended June 30, 2019. The City's chief accountant along with accounting personnel of an independent local accounting firm completed the close out procedures for the City for the fiscal year 2018-19 with the process being completed in May, 2020. Effect Due to the unforeseen departure of the City Finance Director, the City was unable to meet the contract due date specified in its contract with the State of Tennessee of December 31, 2019. Further, as a result of the Finance Director's departure from the City, the Finance Office, did not prepare and provide for audit the SEF A for the fiscal year ending June 30, 2019 until June 2020. Recommendation We recommend the City take whatever measures that are available to insure the completion of its annual audit and related matters in a timely manner.
Finding 2019-002 Action Taken City management explored various actions in its attempts to close out its books and records necessary to enable the annual audit to be completed in a timely manner for its year ended June 30, 2019. The City decided to employ the services of an independent public accounting firm to assist the City accountant in the close out of its records for the fiscal year 2018-19. During the process it was discovered that necessary month end reconciliation procedures had not been completed for a number of months during the fiscal year requiring considerable time and effort to complete and ultimately extending the completion date until May 2020. City management now believes that, with the experience gained by the City accountant and by utilizing the services of the external accounting firm it will be in the position to close out the City's accounting records for the fiscal year 2019-20 in a timely manner enabling the annual audit to be completed in compliance audit contract.
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