Finding Text
Condition: The annual compliance report excluded certain current period expenditures.
Criteria: The program requires an annual compliance report including a total of all current period expenditures.
Cause: Accounting’s records were not used as the data source for the report.
Effect: The current expenditures in the annual compliance report were understated.
Context: Only an annual report is required under the program for the City. The auditor selected the annual report for testing.
Recommendation: The annual compliance report should be reconciled to the general ledger and include all current period expenditures based on the date when goods and services were provided. Changes and revisions to the previously filed annual report will need to be reflected in the next annual report due April 30, 2024.