Finding Text
Criteria: Generally, a system of internal control includes the ability to understand and prepare the City's financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America. Condition: Due to the limited size of the City's business staff and related resources available, the City has relied upon the auditor to prepare the financial statements and related disclosures in accordance with GAAP. Questioned Costs: N/A Context: The City has informed us that the small size and resources of its business office staff precludes the City from preparing its own financial statements. Effect: The City is unable to prepare GAAP financial statements. Cause: Limited number and qualifications of staff in the business office. Recommendation: We recommend that the City continue to review the auditor prepared financial statements with the intention of understanding and acceptance of responsibility for reporting under GAAP.