CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE
City of Davenport
January 1, 2022 through December 31, 2022
This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations ...
CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE
City of Davenport
January 1, 2022 through December 31, 2022
This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Finding ref number:
2022-001
Finding caption:
The City’s internal controls were not adequate to ensure compliance with the revenue diversion special test requirements.
Name, address, and telephone of City contact person:
Steve Goemmel, City Administrator
City of Davenport
P. O. Box 26
411 Morgan Street
Davenport, WA 99122
Corrective action the auditee plans to take in response to the finding:
The City’s airport fund balance was overstated due to a coding error by the Clerk/Treasurer in 2022. Every month the city pays the Washington State Department of Revenue excise tax for its utility funds, (Water/Sewer/Garbage funds) plus any revenue generated from the sale of graves at the cemetery, and leasehold tax on the airport hangar leases. The Clerk/Treasurer uses a spreadsheet template to calculate these liabilities. He inadvertently entered the calculated remittance into the airport fund rather than the garbage fund. The resulting error caused the city to overstate the expenditures in the airport fund and understated the expenditures in the garbage fund. The amount of the remittance that was paid to the Washington State Department of Revenue and the dollar amount remitted was correct and expended to the proper corresponding funds. This was also done on three small expenditures on the city’s credit card account. The expenditure amounts were paid but misassigned to the airport fund. All these expenditures were true and paid in a timely fashion. There was no misappropriation of funds. They were simply data entry mistakes to different funds numbers. No airport funds within any of our FAA grants were used to pay the Washington State Department of Revenue or other vendors.
Under my direction, the Clerk/Treasurer has amended his calculation worksheet so that it does not include any expenditure to the Airport Fund. Airport Leasehold Tax is now paid to the Special Leasehold account of the Washington Department of Revenue. The City will institute a revised financial policy for credit card use so this doesn’t happen in the future. All credit card expenditures will be reviewed for accuracy in earnest.
Anticipated date to complete the corrective action: June 1, 2024