FAC Explorer

Finding 479704 (2021-004)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2021
Accepted
2024-07-30
Audit: 316258
Organization: City of Pekin (IL)
Auditor: Lauterbach & Amen LLP

AI Summary

  • Core Issue: Financial statements required adjustments during the audit to ensure accuracy.
  • Impacted Requirements: Internal controls should ensure all account balances are accurate before audits.
  • Recommended Follow-Up: Implement a review process for general ledger balances to improve budgeting and resource management.

Finding Text

Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources.

Corrective Action Plan

The Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The Finance Department will conduct monthly reconciliations and perform month end closing procedures to better prepare for year end adjustments and audit field work. The Finance Department will review, expand and complete its list of monthly closing procedures and year end adjustment reconciliations prior to audit fieldwork.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 479701 2021-001
    Material Weakness Repeat
  • 479702 2021-002
    Material Weakness
  • 479703 2021-003
    Material Weakness
  • 1056143 2021-001
    Material Weakness Repeat
  • 1056144 2021-002
    Material Weakness
  • 1056145 2021-003
    Material Weakness
  • 1056146 2021-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $735,100
14.218 Community Development Block Grants/entitlement Grants $208,943
20.205 Highway Planning and Construction $99,314
20.106 Airport Improvement Program $35,048
16.922 Equitable Sharing Program $908