Finding 1205763 (2024-002)

Corrective Action Plan In the audit schedule of findings for the year ended June 30, 2024, the auditors identified the following item in the financial statements. The County’s corrective action plan for this item is addressed below. Finding 2024-001 – Internal Control Over Financial Reporting and Account Adjustments including the Schedule of Expenditures of Federal Awards Missoula County will begin with FY25 year-end financial reporting to provide additional training to all staff related to Financial Statement reporting. Due to staffing issues, an accounting firm will continue to support Missoula County staff in meeting deadlines with accurate information. A thorough review of all practices, policies and procedures will continue over the next fiscal year to ensure key control activities are in place. Each staff person involved with Financial Reporting will be trained on the key control activities and their importance. This information has been used in implementing a new Financial Software application which allows for business process workflows to aid departments in completing financial transactions accurately. The business process workflows include appropriate internal controls and review steps to ensure accuracy of entries. In addition, a new process for tracking monthly, quarterly and year end adjustments will be implemented. This process includes a second individual to review the year end reports for completeness, adherence to GAAP and monitoring of information reported on the Schedule of Expenditures of Federal Awards. Contact Person Responsible for Corrective Action: Michelle Denman, Financial Services Director Anticipated Completion Date of the Corrective Action: June 30, 2026 Finding 2024-002 – U.S. Department of Treasury COVID 19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)-ALN 21.027 Reporting Missoula County has implemented a dual control process over CSLFRF reporting. Prior to quarterly reporting, the accountant in finance will review all expenditures related to obligated ARPA programs and reconcile this activity with each department expenditures. At the end of the quarter, after all months have closed and prior to Treasury reporting, an additional review of prior quarter activity will occur to ensure any reclassification journals have been noted to ensure prior quarter reports can be updated. Contact Person Responsible for Corrective Action: Michelle Denman, Financial Services Director Anticipated Completion Date of the Corrective Action: June 30, 2026