Audit 410845

COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Federal Agency: U.S. Department of Treasury Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds ALN# 21.027 Criteria: Quarterly reports are required to be accurate and include all activity of the reporting period, supported by the applicable accounting records and fairly presented in accordance with the U.S. Department of Treasury (Treasury) requirements. Condition: The City did not have an effective process implemented to reconcile amounts reported to the Treasury to the City’s accounting records prior to submission. Cause: Management has not fully corrected and implemented formal procedures to ensure that all financial information reported to the Treasury is reconciled to the underlying accounting records prior to submission. Effect: Without an effective reconciliation process, there is an increased risk that amounts reported to the Treasury may be inaccurate, incomplete, or not supported by the City’s accounting records. During the audit, additional effort was required by management to reconcile the quarterly reports submitted to Treasury to the City’s accounting records. Repeat Finding: This is a repeat finding of 2024-002. Questioned Costs: None Recommendation: Upon discussion with management, the City has reviewed and adjusted its supporting documentation which has been reflected in subsequent reporting periods. However, we recommend the City implement procedures requiring that all reports submitted be formally reconciled to the general ledger and other supporting documentation prior to submission. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See attached corrective action plan.