Finding Text
Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments in order to
present materially accurate financial statements.
Criteria: A good system of internal controls would provide for accurate representations of adjusted account
balances for all City accounts prior to audit fieldwork.
Cause: Year-end entries related to various accruals and other items were required in order to accurately
present the City’s financial statements.
Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork.
Recommendation: A vital process of effective internal controls is the review and subsequent adjustment
of general ledger balances. This review and adjustment will aid in the appropriate budgeting and
management of the City’s financial activities and resources.