Audit 401268

Material Weakness: As identified in finding 2025-001, the City’s reconciliation of bank balances continues to contain unreconciled differences and unrecorded transactions. This has continued to be a material weakness regarding internal control over financial reporting for a number of years with the City not taking effective corrective actions to resolve the issues. Although the City’s classification and reporting of allowable costs with respects to the Federal grants tested continues to be reasonable and in compliance with grant terms, without proper control over reconciliation procedures, the control over allowable costs and the reporting of allowable costs could be compromised. The City must continue to improve their bank reconciliation procedures.