Audit 407885

FY End

2023-06-30

Total Expended

$1.26M

Findings

Programs

Organization: City of Echo (OR)

Year: 2023 Accepted: 2026-07-24

Auditor: REBECCA PRICE CPA

Organization Exclusion Status:

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Findings

ID	Ref	Severity	Repeat	Requirement
1224625	2023-001	Material Weakness	Yes	ABGHIL
1224626	2023-001	Material Weakness	Yes	ABGHIL

Programs

ALN	Program	Spent	Major	Findings
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$1.18M	Yes	1
21.019	CORONAVIRUS RELIEF FUND	$78,850	Yes	1

Contacts

Name	Title	Type
MHGFLFFC3Y33	David Slaght	Auditee
5413768411	Rebecca Price	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the City of Echo, Oregon under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented 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 of Echo, Oregon, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City of Echo, Oregon.

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.

The City of Echo has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001

Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial position, results of operations and disclosures in the financial statements, in conformity with generally accepted accounting principles. Condition: The City does not have a system of internal controls that would enable management to conclude the financial statements and related disclosures are complete and presented in accordance with the generally accepted accounting principles which could lead to material errors that may not be identified and corrected by the City. As such, management requested me to prepare a draft of the financial statements, including the related footnote disclosures. Cause: Due to cost and other considerations, the City requested we draft the financial statements. Effect: The control deficiency could result in a misstatement of the financial statements that would not be prevented or detected. Recommendation: The outsourcing of these services is not unusual in entities of your size and is a result of management's cost benefit decision to rely on my accounting expertise rather than incurring this internal resource cost. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost of other considerations. Views of Responsible Officials: The City has elected to have the auditors draft the financial statements and related notes, as they do not believe the risk of material misstatement outweighs the cost of implementing additional controls.