Finding Text
Finding: 2024-001 – The City lacked proper documentation to support certain financial
transactions and decisions.
Criteria: Proper documentation should be maintained for all financial transactions. In addition, minutes
should be taken and kept on file for all meetings of the Mayor and Council and City commissions.
Condition: City personnel were unable to locate copies of minutes for all Mayor and Council meeting
held during the year and through the completion of our audit work. In addition, the minutes posted to
the City’s website were not up-to-date. They were also unable to obtain proper supporting
documentation for certain expenditures and employee expense reimbursements.
Cause: During the year, the City had numerous changes in accounting and other personnel including the
finance director, City manager, and accounts payable clerk.
Effect or potential effect: Lack of policies and procedures for filing and document retention may result in
lost records, failure to comply with laws, contracts, or grants, and operational inefficiency.
Recommendation: The City should establish clear policies and procedures for document retention and
ensure all employees are trained on these policies. In addition, a checklist can be developed for required
documents for each type of transaction.
Responsible Official’s Response: Management will review its procedures and policies related to
documentation.