Finding Text
Condition: During audit fieldwork, it was noted the City does not have a centralized reporting system for
all grants obtained by the City. In addition, it was noted the City does not have a process for accurately
identifying grant revenues and expenses recorded in the City’s general ledger.
Criteria: Grant administration procedures should be performed to verify all payments are properly
received, all expenditures are eligible under the grant, and the grant compliance occurs.
Cause: Lack of oversight by the City and inadequate controls over reconciliation of grant revenues and
expenditures.
Effect: Inaccurate reporting of grant revenues and expenditures.
Recommendation: We recommend all departments provide the original grant agreements to the finance
department. In addition, we recommend that the City adopt a policy and process for reconciling grant
revenues and expenditures to the general ledger, grant agreements and financial reports submitted to the
granting agencies. Such reconciliation should be done on a regular basis to ensure proper identification of
all grant revenues and expenditures and to prevent inaccurate reporting or duplicate requests for
reimbursements.