Finding 1229022 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-09-08
Audit: 410495
Organization: CITY OF DALTON (MN)
Auditor: CARLSONSV LLP

AI Summary

  • Answer: Management acknowledges a significant deficiency in financial reporting.
  • Trend: Smaller entities often lack the internal expertise for comprehensive external financial reporting.
  • List: Management plans to continue reviewing and approving financial statements while distributing them to users.

Finding Text

Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.

Corrective Action Plan

The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1229017 2025-001
    Material Weakness Repeat
  • 1229018 2025-002
    Material Weakness Repeat
  • 1229019 2025-003
    Material Weakness Repeat
  • 1229020 2025-001
    Material Weakness Repeat
  • 1229021 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $903,742
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $471,271