Audit 365179

FY End
2022-09-30
Total Expended
$930,408
Findings
42
Programs
3
Organization: City of Ganado, Texas (TX)
Year: 2022 Accepted: 2025-08-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
574955 2022-002 Material Weakness - P
574956 2022-002 Material Weakness - P
574957 2022-002 Material Weakness - P
574958 2022-002 Material Weakness - P
574959 2022-002 Material Weakness - P
574960 2022-002 Material Weakness - P
574961 2022-002 Material Weakness - P
574962 2022-004 Significant Deficiency - P
574963 2022-004 Significant Deficiency - P
574964 2022-004 Significant Deficiency - P
574965 2022-004 Significant Deficiency - P
574966 2022-004 Significant Deficiency - P
574967 2022-004 Significant Deficiency - P
574968 2022-004 Significant Deficiency - P
574969 2022-006 Material Weakness - P
574970 2022-006 Material Weakness - P
574971 2022-006 Material Weakness - P
574972 2022-006 Material Weakness - P
574973 2022-006 Material Weakness - P
574974 2022-006 Material Weakness - P
574975 2022-006 Material Weakness - P
1151397 2022-002 Material Weakness - P
1151398 2022-002 Material Weakness - P
1151399 2022-002 Material Weakness - P
1151400 2022-002 Material Weakness - P
1151401 2022-002 Material Weakness - P
1151402 2022-002 Material Weakness - P
1151403 2022-002 Material Weakness - P
1151404 2022-004 Significant Deficiency - P
1151405 2022-004 Significant Deficiency - P
1151406 2022-004 Significant Deficiency - P
1151407 2022-004 Significant Deficiency - P
1151408 2022-004 Significant Deficiency - P
1151409 2022-004 Significant Deficiency - P
1151410 2022-004 Significant Deficiency - P
1151411 2022-006 Material Weakness - P
1151412 2022-006 Material Weakness - P
1151413 2022-006 Material Weakness - P
1151414 2022-006 Material Weakness - P
1151415 2022-006 Material Weakness - P
1151416 2022-006 Material Weakness - P
1151417 2022-006 Material Weakness - P

Contacts

Name Title Type
DMK4KF19LYW5 Perri Raz Auditee
3617712232 Melissa Terry Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e. both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable; except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally unused balances are returned to the grantor at the close of specified project periods. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the City, under programs of the federal government for the year ended September 30, 2022 in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

Finding Details

Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City Secretary records all accounting transactions in the general ledger and makes general ledger adjustments. The City Secretary is responsible for depositing receipts, preparing checks, and processing ACH disbursements and payroll, and also has signature authority. Bank accounts are also reconciled by the City Secretary. The City Secretary is also responsible for filing required state, payroll, grant, and various other reports. As offsetting controls, dual signatures are required on all check disbursements and quarterly bank transactions are reviewed by the Mayor and Mayor Pro-Tem. Also, profit and loss budget performance reports are presented and reviewed at each Council meeting.Criteria: Proper segregation of duties is a key internal control to prevent errors or fraud by ensuring that no single individual has control over all aspects of a financial transaction.Cause: There is insufficient staffing to implement adequate segregation of duties. Effect: The lack of segregation of duties increases the risk of misstatements, fraud, or unauthorized transactions going undetected. Material journal entries were required for the financial statements to be free of material misstatement. In addition, it was noted that wages reported to TMRS were understated in two months of the fiscal year.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City did not submit the required Single Audit package to the FAC in the required time period.Criteria: Management is responsible for providing timely and accurate financial information. Because the City expended over $750,000 in federal awards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), requires non-federal entities to submit their financial statements and single audit reports to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.Cause: The delay was a result of Findings 2022-001 and 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit. Effect: The effect of the late FAC submission could cause a delay in the award and funding of future grant programs. The late submission also results in noncompliance with the Uniform Guidance, and increases the risk of fraud, waste, and abuse of federal funds.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.
Condition: The City was unable to provide a reconciled SEFA for the year ending September 30, 2022.Questioned Costs: None noted.Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.Cause: The City was unable to provide a reconciled SEFA as a result of Finding 2022-002 in which controls should be in place to ensure accurate and timely financial information is available for audit.Effect: Material journal entries were required to be able to accurately report federal expenditures on the SEFA.