Audit 397519

Criteria: The Uniform Guidance 2 CFR 200.512(a) requires the City’s audit to be completed and submitted within nine months after the end of the audit period, or March 31, 2025. Condition: The reporting package was submitted after its due date of March 31, 2025. Cause: The audit was not completed due to resource constraints of the City. Effect: Potential suspension or delayed funding by federal agencies. Questioned Costs: None. Recommendation: We recommend the City file reporting packages in a timely manner. Views of Responsible Officials and Planned Corrective Actions: Management recognizes that the City’s audits have not been completed within the required statutory deadlines in recent years, including the reporting delay noted in this finding. These delays were primarily the result of turnover and transition in key financial staff positions, which impacted continuity and the timely completion of audit-related activities. At the same time, management would like to highlight the significant progress that has been made in addressing this issue. Over the past six months, the City has successfully completed two fiscal year audits, representing meaningful advancement toward eliminating the audit backlog. Management is committed to continuing this progress and has established a plan to return to full compliance with reporting deadlines. The City anticipates being fully current beginning with the FY-2027 audit cycle and will continue implementing process improvements and ensuring staffing stability to support timely audit completion. Management understands the importance of timely reporting, particularly as it relates to maintaining eligibility for federal funding and will prioritize adherence to all applicable deadlines moving forward.