Finding 1130401 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-04-03
Audit: 352614
Organization: City of Quincy, Illinois (IL)

AI Summary

  • Core Issue: A material restatement of Capital Assets and Accounts Payable was necessary due to inaccuracies in year-end financial reporting.
  • Impacted Requirements: Internal controls must ensure accurate recording of accruals and deferrals for reliable financial statements.
  • Recommended Follow-Up: Implement stronger internal controls and conduct monthly reviews of financial statements to prevent future discrepancies.

Finding Text

Finding 2024-001: Material Restatement to Capital Assets and Accounts Payable Condition: During our current year-end audit fieldwork, our testing resulted in a material restatement of Capital Assets and Accounts Payable. Criteria: A good system of internal controls would provide for accurate recording of accruals and deferrals on a regular basis to provide for accurate financial reporting. Cause: Year-end entries related to accounts payable and fixed asset balances were required to accurately present the City’s financial statements. Effect: Material adjustments to the City’s accounts payable and fixed asset balances were required to properly state the City’s prior year end balances. Recommendation: We recommend that the City implement effective internal controls in order to provide an accurate assessment of reporting requirements for year-end balances. This implementation of improved controls would result in the appropriate recognition of financial reporting requirements. Corrective Action Plan: The City should implement internal controls to properly record necessary accruals and deferrals on a timely basis prior to audit fieldwork. Additionally, the City Comptroller should provide monthly reviews of the financial statements.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 553959 2024-001
    Material Weakness Repeat
  • 553960 2024-002
    Significant Deficiency Repeat
  • 553961 2024-003
    Significant Deficiency Repeat
  • 553962 2024-004
    Significant Deficiency Repeat
  • 1130402 2024-002
    Significant Deficiency Repeat
  • 1130403 2024-003
    Significant Deficiency Repeat
  • 1130404 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds $919,566
21.027 Coronavirus State and Local Fiscal Recovery Funds $700,258
20.509 Formula Grants for Rural Areas and Tribal Transit Program $650,845
20.106 Airport Improvement Program $233,992
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $132,814
16.922 Equitable Sharing Program $39,692
16.710 Public Safety Partnership and Community Policing Grants $36,737
16.738 Edward Byrne Memorial Justice Assistance Grant Program $17,575
20.600 State and Community Highway Safety $14,728
16.607 Bulletproof Vest Partnership Program $11,623
97.067 Homeland Security Grant Program $9,342