Finding 1226461 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-08-13
Audit: 409088
Organization: City of Marion (SC)

AI Summary

  • Core Issue: The City does not prepare its own annual financial statements and footnote disclosures.
  • Impacted Requirements: There is a risk that the auditor may be seen as part of the control system, which could compromise independence.
  • Recommended Follow-Up: The City should focus on improving its review and approval process or consider preparing financial statements in-house or hiring an external source.

Finding Text

The City does not prepare its annual financial statements and footnote disclosures. The City staff work with the auditor in the preparation and subsequently reviews and approves all statements and disclosures before issuance. The City relies on the audit firm to prepare the financial statements and disclosures and reviews the final product. Caution must be exercised so that the auditor is not deemed to be part of the control system The City can accept this condition and concentrate on the review and approval process or prepare all financial statements and disclosures in house or hire an outside source to prepare the financial statements and disclosures. The City accepts the condition and will concentrate on the review and approval process.

Corrective Action Plan

The City staff work with the auditor in the preparation and subsequently reviews and approves all statements and footnote disclosures.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1226453 2025-001
    Material Weakness Repeat
  • 1226454 2025-002
    Material Weakness Repeat
  • 1226455 2025-001
    Material Weakness Repeat
  • 1226456 2025-002
    Material Weakness Repeat
  • 1226457 2025-001
    Material Weakness Repeat
  • 1226458 2025-002
    Material Weakness Repeat
  • 1226459 2025-001
    Material Weakness Repeat
  • 1226460 2025-002
    Material Weakness Repeat
  • 1226462 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.02M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $177,975
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $11,683
10.698 STATE & PRIVATE FORESTRY COOPERATIVE FIRE ASSISTANCE $5,000
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $500