Finding 1239796 (2025-001)

SECTION 5 – CORRECTIVE ACTION PLAN Finding 2025-001: Grant Reporting Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Corrective Action Plan: Management should implement a documented SEFA cutoff review to verify that expenditures are reported in the correct fiscal year and supported by the general ledger and grant records. Anticipated Date of Completion: Fiscal Year 2026 Name of Contact Person: Tawanda Joyner, Comptroller Management Response: The City will strengthen its revenue posting process by ensuring fiscal year placement at the point of entry. Specifically, all revenue transactions that arrive at the beginning or end of the fiscal year will be reviewed by the Comptroller prior to posting to the general ledger to confirm the correct fiscal year coding and that the revenue is allocated to the appropriate period based on established cutoff and supporting documentation. After the Comptroller’s review and approval, Accounting will post the revenue to the correct fiscal year and update the related records to ensure tie-outs and reconciliation support reflect the corrected period.