Audit 393553

2025-001 Improve Controls Over Reporting (Significant Deficiency) Federal Agency: U.S. Department of the Treasury Program: COVID-19 - State and Local Fiscal Recovery Fund AL Number: 21.027 Award Year: 2025 Type of Finding Internal Control over Compliance – Significant Deficiency Criteria In accordance with 2 CFR 200.303 Internal controls, management of the City is responsible for establishing, documenting, and maintaining effective internal control over the Federal award that provides reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Reports submitted to grantors were not independently reviewed by a person other than the preparer. Cause Weaknesses in the design of internal controls. Effect or Potential Effect There are no questioned costs as a result of this finding as there are no costs directly associated with the finding. Recommendation The City should implement formal policies and procedures regarding separation of duties and the requirement of a second individual being involved in the reporting process. Views of Responsible Official and Planned Corrective Action Management’s views and Corrective Action Plan are included at the end of this report.