Finding Text
Type of Finding: Fiduciary Fund Reporting (material weakness) Repeat Finding: Yes - 2018-002
Condition:
During the year ended December 31, 2020, the City did not reconcile its pension activity to the pension trial balances.
Criteria:
The City’s internal controls over financial reporting should result in the accurate preparation of financial statements in accordance with accounting principles generally accepted in the United States of America.
Cause:
The City did not have the controls in place to ensure timely reconciliation of pension activity to the trial balances.
Effect:
Material adjustments were made to the pension funds.
Questioned Costs:
None.
Recommendation:
The City should implement proper accounting and policies for the pension funds, inclusive of recordation and reconciliation of pension fund activity.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. The city will begin to record and reconcile pension statements in internal accounting software and reporting.
Auditor’s Conclusion:
This finding remains as stated.