FAC Explorer

Finding 22455 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-11
Audit: 22464
Organization: City of Oregon City (OR)
Auditor: Aldrich CPAS + Advisors LLP

AI Summary

  • Answer: The City failed to establish effective internal controls for managing force equipment charges.
  • Trend: This issue indicates a pattern of inadequate oversight in financial reporting and cost management.
  • List: Follow up by reviewing and strengthening internal controls related to allowable activities, costs, and reporting processes.

Finding Text

The City did not properly design or implement internal controls over allowable activities, allowable costs and period of performance as it pertained to force equipment charges. In addition, the City did not properly design or implement internal controls over reporting.

Corrective Action Plan

Responsible Official: Matt Zook, Finance Director Views of responsible officials: Management understands the requirement for secondary review and approval both at the source level (transactions generated by departments) and the and approval and submission of grant reports) and will actively implement and execute these steps into the internal control policy. Management will meet with the public works department to evaluate the software used to track force account equipment and ensure that Supervisor review and sign off will be conducted either through the software program or physically on paper. Management will also meet with the parks department to review their process for tracking force equipment charges. They use a paper tracking system, so we will ensure that they include a supervisor review and sign off process on staff tracking sheets. Management will also create a review process within the finance department specifically for the calculation and submission of grant reporting. Management agrees to comply with this within 90 days of the filing date of the financial statements no later than March 19, 2023.

Categories

Allowable Costs / Cost Principles Period of Performance Reporting Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22454 2022-001
    Significant Deficiency
  • 598896 2022-001
    Significant Deficiency
  • 598897 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.02M
16.710 Public Safety Partnership and Community Policing Grants $74,148
20.218 National Motor Carrier Safety $67,441
21.027 Coronavirus State and Local Fiscal Recovery Funds $52,233
20.507 Federal Transit_formula Grants $46,268
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $29,906
15.904 Historic Preservation Fund Grants-in-Aid $6,371
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $5,360
20.600 State and Community Highway Safety $4,942
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $4,162
16.607 Bulletproof Vest Partnership Program $3,873
20.616 National Priority Safety Programs $3,526
45.310 Grants to States $2,200
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $385