Finding 3170 (2023-003)

2023-003 Controls Over Reporting Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2023 Criteria In accordance with 31 CFR section 35.4(c), the City should provide an annual report detailing the accounting for the use of the federal award program funds. Condition The City’s internal controls over reporting were determined to be ineffective during the performance of internal control testing over the major federal program. Cause The City does not have adequate controls and procedures over reporting. Effect The City’s annual report did not reconcile to the amount of total expenditures in the amount of $193,118. Recommendation The City should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management’s Corrective Action Plan The City of Scott will review financial policies and procedures and make any necessary changes to ensure an effective control environment.