Finding Text
Reporting Identification of federal programs: Water & Waste Disposal Systems for Rural Communities (ALN 10.760) Criteria: The City is required to submit Forms RD 442-2 Statement of Budget, Income and Equity and Form RD 442-3 Balance Sheet during the year. Furthermore, a system of internal controls requires the review and approval of all reports before they are submitted. Condition: During testing, we noted supporting documentation did not agree with the reports submitted. We also noted the reports are not reviewed and approved prior to submission. Questioned costs: None Effect: The City is not in compliance with federal reporting requirements Context: Of a population of 2, 1 report was selected for testing. In this test, we noted 2 instances where the report did not agree with the supporting documentation. We also noted that there is no formal review and approval of the report before being submitted. Cause: The City did not have adequate controls in place to ensure accurate reporting. Repeat finding: No Recommendation: We recommend the City implement policies and procedures to ensure all reports are completed correctly and reviewed prior to submission. Views of responsible officials of the auditee: The City will keep all work papers used to prepare the reports as it is not possible to recreate them later after adjusting entries due to limitations in the software. The reports will be provided for Council approval prior to sending vs after as an info item.