Finding 1089696 (2022-001)

Part III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SECTION Finding 2022-001: Federal Reporting Federal Agency - U.S. Department of Transportation Federal Program - Highway Planning and Construction (20.205) Federal Award Year - 2022 State Agency - Not Applicable Criteria - Management is responsible for establishing and maintaining effective internal controls and accounting policies to complete accounting records timely to allow correction of audited financial statements to facilitate timely filing of the Data Collection Form. Condition - The Data Collection Form for the year ended December 31, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Cause - The late filing resulted from significant delays in management providing required information leading to late completion of the audited financial statements and timely submission of the Data Collection Form with the Federal Audit Clearing House. Effect - The Data Collection Form for the year ended December 31, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - None identified. Recommendation - The City should establish accounting procedures to complete the timely submission of the Data Collection Form. Views of Responsible Officials and Planned Corrective Actions - Management’s Response - The City was behind in reporting due to lack of adequate staffing during the pandemic. We have appropriate staffing now and have been making strides in reporting timely. Estimated Completion Date - September 30, 2025 Person Responsible for Implementation - Susan Tucker, CPA, Director of Finance