RE: Finding 2025-002 Capital Assets Additions/Cutoff Errors In conjunction with our FY25 annual audit, please see the City's corrective action plan below: The City of Sand Springs will implement enhanced internal controls and review procedures concerning capital asset additions to ensure invoices and applications for payment are accurately processed and recorded in the proper fiscal year. Specific corrective actions will include: Formalized Cutoff Review Process o Establish a documented year-end cutoff checklist for capital projects. o Require verification of invoice dates, application-for-payment periods, and substantial completion dates prior to posting. o Ensure all invoices and applications for payment are reviewed for proper fiscal year classification before approval. Improved Review of Applications for Payment o Require secondary review and approval of all applications for payment related to capital projects. o Implement a control to ensure cancelled or corrected applications for payment are clearly documented and removed from processing prior to payment. o Maintain supporting documentation evidencing review and approval. Encumbrance and Fiscal Year Posting Controls o Strengthen procedures for tracking encumbrances at year-end, including reconciliation between open encumbrances, invoices received, and capital asset postings. o Require supervisory review of all capital asset additions posted during the year-end close process to confirm proper fiscal year posting. Training and Accountability o Provide targeted training to finance and project management staff on fiscal year cutoff requirements and capital asset accounting. o Clearly define roles and responsibilities for invoice review, posting, and approval to reduce reliance on informal manual adjustments. Expected completion date: Procedures will be implemented for the fiscal year ending June 30, 2026, and applied during interim processing and year-end close. Party Responsible: Finance Director and Finance Staff, in coordination with applicable Department Heads and Project Managers. Contact Information: Arlena Barnes 918-246-2646 arlena.barnes@sandspringsok.gov