Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-002
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Allowable Costs and Cost Principles
Repeat Findings: Yes
Criteria:
Except where otherwise authorized by statute, a cost must be adequately documented in order to be allowable under Federal awards.
Condition and Context:
The allocation rate of the employees to the Housing Choice Voucher program was unsubstantiated. The City has no documentation, time study, or time sheets to prove that the 80% allocation is accurate. The rate being used was based on a discussion with the employee once they were hired and has not been updated since then.
Cause:
The City does not have an official policy to document or determine allocation rates of employees to funds other than informal discussions. The City also does not complete time studies of employees.
Effect or Potential Effect:
Payroll costs could be charged to the program at an improper allocation rate.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City does annual time studies or an annual review of timesheets to determine accurate allocation rates and then document this within employee personnel files.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-002
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Allowable Costs and Cost Principles
Repeat Findings: Yes
Criteria:
Except where otherwise authorized by statute, a cost must be adequately documented in order to be allowable under Federal awards.
Condition and Context:
The allocation rate of the employees to the Housing Choice Voucher program was unsubstantiated. The City has no documentation, time study, or time sheets to prove that the 80% allocation is accurate. The rate being used was based on a discussion with the employee once they were hired and has not been updated since then.
Cause:
The City does not have an official policy to document or determine allocation rates of employees to funds other than informal discussions. The City also does not complete time studies of employees.
Effect or Potential Effect:
Payroll costs could be charged to the program at an improper allocation rate.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City does annual time studies or an annual review of timesheets to determine accurate allocation rates and then document this within employee personnel files.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-003
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Depository Agreement Requirement
Repeat Findings: No
Criteria:
Public Housing Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156).
Condition and Context:
The City has not entered into a depository agreement with their financial institution since January 2020 which expired in January 2021. There was no depository agreement active for fiscal year 2023.
Cause:
The City does not have an effective policy in place to track their HUD depository agreement expiration.
Effect or Potential Effect:
HUD funds are not properly deposited or safeguarded.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City enters into a depository agreement with their HUD funds financial institution immediately and implements a system to track the expiration of the agreement to avoid lapses in HUD requirements.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-003
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Depository Agreement Requirement
Repeat Findings: No
Criteria:
Public Housing Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156).
Condition and Context:
The City has not entered into a depository agreement with their financial institution since January 2020 which expired in January 2021. There was no depository agreement active for fiscal year 2023.
Cause:
The City does not have an effective policy in place to track their HUD depository agreement expiration.
Effect or Potential Effect:
HUD funds are not properly deposited or safeguarded.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City enters into a depository agreement with their HUD funds financial institution immediately and implements a system to track the expiration of the agreement to avoid lapses in HUD requirements.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-001
Significant Deficiency in Internal Controls Over Financial Reporting - Fiscal Year End Reporting
Repeat Findings: Yes, 2022-001
Criteria:
The City’s fiscal year end account balances should include all significant transactions from the reporting period and should be reconciled at fiscal year end.
Condition and Context:
While management informed us that adjustments would be required after the trial balances were provided to us for audit, adjustments took longer than expected. These adjustments were crucial to ensure the financial statements were complete and accurate.
Effect or Potential Effect:
The City’s account balances were misstated as and for the year ended June 30, 2023 prior to adjustments being made to correct such misstatements. The potential effect is that accurate information might not be available timely to make management decisions throughout the year as well as at year end.
Questioned Costs:
None.
Recommendation:
We recommend that the City review their internal controls processes and procedures over financial reporting to ensure all transactions are recorded in the City’s financial statements, and that their accounting and finance department is fully staffed to ensure timeliness of reporting.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-002
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Allowable Costs and Cost Principles
Repeat Findings: Yes
Criteria:
Except where otherwise authorized by statute, a cost must be adequately documented in order to be allowable under Federal awards.
Condition and Context:
The allocation rate of the employees to the Housing Choice Voucher program was unsubstantiated. The City has no documentation, time study, or time sheets to prove that the 80% allocation is accurate. The rate being used was based on a discussion with the employee once they were hired and has not been updated since then.
Cause:
The City does not have an official policy to document or determine allocation rates of employees to funds other than informal discussions. The City also does not complete time studies of employees.
Effect or Potential Effect:
Payroll costs could be charged to the program at an improper allocation rate.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City does annual time studies or an annual review of timesheets to determine accurate allocation rates and then document this within employee personnel files.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-002
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Allowable Costs and Cost Principles
Repeat Findings: Yes
Criteria:
Except where otherwise authorized by statute, a cost must be adequately documented in order to be allowable under Federal awards.
Condition and Context:
The allocation rate of the employees to the Housing Choice Voucher program was unsubstantiated. The City has no documentation, time study, or time sheets to prove that the 80% allocation is accurate. The rate being used was based on a discussion with the employee once they were hired and has not been updated since then.
Cause:
The City does not have an official policy to document or determine allocation rates of employees to funds other than informal discussions. The City also does not complete time studies of employees.
Effect or Potential Effect:
Payroll costs could be charged to the program at an improper allocation rate.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City does annual time studies or an annual review of timesheets to determine accurate allocation rates and then document this within employee personnel files.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-003
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Depository Agreement Requirement
Repeat Findings: No
Criteria:
Public Housing Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156).
Condition and Context:
The City has not entered into a depository agreement with their financial institution since January 2020 which expired in January 2021. There was no depository agreement active for fiscal year 2023.
Cause:
The City does not have an effective policy in place to track their HUD depository agreement expiration.
Effect or Potential Effect:
HUD funds are not properly deposited or safeguarded.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City enters into a depository agreement with their HUD funds financial institution immediately and implements a system to track the expiration of the agreement to avoid lapses in HUD requirements.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.
Finding 2023-003
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Non-compliance with Depository Agreement Requirement
Repeat Findings: No
Criteria:
Public Housing Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156).
Condition and Context:
The City has not entered into a depository agreement with their financial institution since January 2020 which expired in January 2021. There was no depository agreement active for fiscal year 2023.
Cause:
The City does not have an effective policy in place to track their HUD depository agreement expiration.
Effect or Potential Effect:
HUD funds are not properly deposited or safeguarded.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City enters into a depository agreement with their HUD funds financial institution immediately and implements a system to track the expiration of the agreement to avoid lapses in HUD requirements.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.