Finding Text
Criteria: The internal controls of the City of Antelope are insufficient to identify and correct material differences. Condition: The City of Antelope did not properly split the amount of funds received between loans and grants. Context: The testing of cash receipts identified that the allocation of funds received between loans and revenue wasnt performed according to the contract guidelines . The finding is specifically for funds received on contracts S19008 and Y20001. The amount of the adjustment during the fiscal year was $343,870. Cause: The City of Antelope received funds through agreements that included terms that 50% be allocated to grants/forgivable loans and the other 50% to the non-forgivable loan. City of Antelope indicentally mis-allocated the amounts received. Effect or potential effect: The effect of the finding was that revenue had been overstated by $343,870 and loand were underreported by the same amount. The difference was corrected through the audit process , instead of City of Antelope identifying and correcting. Recommendation: City of Antelope should contract with a consultant to review or assist incomplex transactions that are beyond the ability of City of Antelope volunteers.