Finding Text
#2025-001: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards Federal Program Affected: All Compliance Requirement: Reporting Questioned Costs: None. Condition and Cause: As a matter of practicality and efficiency, we have assisted in drafting the financial statements as applicable and schedule of expenditures of federal awards, in both form and content, based on information provided by management during the audit. Criteria and Effect: Management and those charged with governance are ultimately responsible for preparing and presenting the financial statements in accordance with the applicable financial reporting framework. The auditor’s responsibility for the financial statements is to express an opinion on them based on the audit evidence obtained. Repeat Finding from Prior Year: Yes, prior year finding #2024-001. Recommendation: Management, and if applicable, governance, should review the financial statements for accuracy of account balances and context of note disclosures. Management and governance should inquire of the auditors about any balances or disclosures which management does not understand or cannot reconcile to internal records prior to signing the management representation letter. Response/Corrective Action Plan: The City agrees with the above finding. See Corrective Action Plan