Finding Text
FINDING 2023-008 Information on the federal program: Community Program to Improve Minority Health, Assistance Listing #93.137 Criteria or specific requirement: The City is required to ensure that financial records, such as quarterly financial reports, are accurate, consistent, and supported by appropriate documentation in accordance with the grant agreement. Condition: Supporting documentation provided did not agree with the quarterly reports submitted. Questioned costs: Unable to be determined. Context: The inconsistencies between supporting documentation and the submitted reports raise concern regarding the reliability of the City’s records. Effect: Failure to ensure that supporting documentation aligns with the reported amounts submitted increases the risk of error, misstatement, and potential noncompliance with financial reporting requirements. Cause: The City does not have adequate review procedures in place to verify that quarterly reports are fully supported by underlying documentation before submission. Recommendation: The City should implement a review process to ensure that all financial reports are reconciled with supporting documentation before submission. Management’s response: Procedures will be implemented to ensure all supporting documentation is reconciled with quarterly reports prior to submission.