Finding 1146996 (2024-005)

Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 Questioned Costs: $0 Condi􀆟on: The Single Audit was not completed by the deadline. Criteria: Single audit repor􀆟ng packages must have a report date no later than nine months a􀅌er the fiscal year‐end (2 CFR Part 200 Subpart F). Cause: The City con􀆟nued to experience delays in its financial repor􀆟ng and comple􀆟on of audits since 2020 when the City faced staffing difficul􀆟es. Effect: The City was not in compliance with federal regula􀆟ons and guidelines for the single audit submission. Recommenda􀆟on: The City should implement controls for filing federal financial reports in a 􀆟mely manner. Management’s Response and Planned Correc􀆟ve Ac􀆟on: The City has retained a consultant to clean up old data, and we are commi􀆩ed to closing the books by August 31, 2025. As a result of improving our processes and 􀆟ghtening internal controls, we can begin our audit process much sooner than in prior years and have all aspects of the audit completed 􀆟mely. This will be overseen by the Finance Director.