TOWN OF MANY, LOUISIANALocal Government

Criteria: The objectives of internal controls are to provide management with reasonable assurance that transactions are executed in accordance with management?s authorization and recorded properly to permit the preparation of financial statements in accordance with accounting principles generally accepted in the United States of America. In addition, internal controls are essential to ensure that management properly complies with all provisions of grants and that recordkeeping is complete and sufficient to demonstrate such compliance. Condition and Context: No comprehensive schedule of grant awards and expenditures was maintained. Recordkeeping for various grants was difficult to follow and not readily available. The sources of funding for various grants were not readily identified by Town personnel and provided to the auditors. Cause and Effect: During the period under audit, there was no specified individual responsible for summarizing and overseeing compliance with all grant provisions, including recordkeeping, determining funding sources, and ensuring compliance with all provisions. As a result, management could not affirm compliance with all provisions of grants or provide the auditors with a comprehensive list of grant awards and expenditures during the year. In addition, certain expenditures related to storm clean up were not reimbursed by FEMA because sufficient documentation was not obtained from the vendor. Recommendation: The auditors recommend that management develop and implement procedures to ensure that recordkeeping and oversight of all grant awards and expenditures are sufficiently and timely maintained. Procedures should include regular reporting of awards, expenditures, funding sources, and compliance requirements to management and those charged with governance in detail sufficient to ensure that the Town is in full compliance with laws and provisions related to grants.