AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
FEDERAL PROCUREMENT Criteria: 2 CFR sections 200.318 through 200.327 govern procurement standards for federal programs. Per these standards, a non-federal entity (the city) must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Also, no employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Condition: The city does not have a formal, written conflict of interest policy or procurement manual as required by 2 CFR section 200.318. Cause: Responsible officials were unaware of the requirement. Effect: Noncompliance with federal procurement standards. Recommendation: The city should develop a formal procurement manual that contains all elements necessary to comply with 2 CFR sections 200.318 through 200.327. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
FEDERAL PROCUREMENT Criteria: 2 CFR sections 200.318 through 200.327 govern procurement standards for federal programs. Per these standards, a non-federal entity (the city) must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Also, no employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Condition: The city does not have a formal, written conflict of interest policy or procurement manual as required by 2 CFR section 200.318. Cause: Responsible officials were unaware of the requirement. Effect: Noncompliance with federal procurement standards. Recommendation: The city should develop a formal procurement manual that contains all elements necessary to comply with 2 CFR sections 200.318 through 200.327. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
FEDERAL PROCUREMENT Criteria: 2 CFR sections 200.318 through 200.327 govern procurement standards for federal programs. Per these standards, a non-federal entity (the city) must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Also, no employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Condition: The city does not have a formal, written conflict of interest policy or procurement manual as required by 2 CFR section 200.318. Cause: Responsible officials were unaware of the requirement. Effect: Noncompliance with federal procurement standards. Recommendation: The city should develop a formal procurement manual that contains all elements necessary to comply with 2 CFR sections 200.318 through 200.327. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
AUDITOR PREPARED FINANCIAL STATEMENTS Criteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP). Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements. Cause: The government is a small organization with limited resources. Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material. Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
FEDERAL PROCUREMENT Criteria: 2 CFR sections 200.318 through 200.327 govern procurement standards for federal programs. Per these standards, a non-federal entity (the city) must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Also, no employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Condition: The city does not have a formal, written conflict of interest policy or procurement manual as required by 2 CFR section 200.318. Cause: Responsible officials were unaware of the requirement. Effect: Noncompliance with federal procurement standards. Recommendation: The city should develop a formal procurement manual that contains all elements necessary to comply with 2 CFR sections 200.318 through 200.327. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.