Answer: The City needs to improve its internal controls for handling cash and recording receipts.
Trend: Current procedures may lead to inaccuracies in recording federal receipts.
List: Recommended actions include investigating existing processes and implementing necessary corrections.
Finding Text
RECOMMENDATIONS: The City should investigate and correct internal control procedures over recording receipts and cash management to ensure proper recording of federal receipts.
Corrective Action Plan
Response: The City concurs with auditors. The City would show that the Federal funds that were received for FEMA projects were properly deposited into the City’s banking accounts but were not properly entered on the City’s financial records and the recently rehired City Clerk and Senior Accountant will ensure proper recording of all receipts deposited.
Categories
Cash ManagementInternal Control / Segregation of Duties