Finding 1205797 (2024-017)

Cash Management and Reporting (Significant Deficiency) ALN No. 15.916 – Outdoor Recreation Acquisition, Development and Planning Criteria: Effective internal controls over cash management and reporting include a review and approval of reimbursement requests before they are submitted. This review and approval are important to ensure reports being submitted are accurate, include only costs that are allowable and eligible for reimbursement. The review and approval should be documented and retained as evidence the internal control occurred and being followed. Condition: The City did not have documented evidence to show that reports submitted for reimbursement were reviewed and approved before they were submitted. As a result, we were unable to verify whether the control was in place or was followed. Effect: The lack of a review and approval may result in errors on reports submitted. Cause: The City did not have a formal process in place to ensure reimbursement requests are reviewed and approved prior to being submitted. Recommendation: We recommend the City strengthen internal controls by implementing a process where all reports, including reimbursement requests, are reviewed and approved and that evidence of such review be documented with a signature and date and retained as part of the City’s records. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.