Finding 504181 (2023-010)

2023-010 Annual Financial Report and Audit (Repeated 2021-02, 2022-06) CFDA Title: Coronavirus State and Local Fiscal Recovery Funds CFDA Number: 21.027 Federal Award Number and Year: N/A Name of Federal Agency: N/A Name of Pass- Through Entity: Direct, Department of the Treasury Condition: The City did not complete and submit its annual financial report (AFR) within 6 months of the end of the reporting period. The city did not submit its audit report within 12 months of the end of the audit period. The city did not submit the annual budget timely. Criteria: In accordance with MCA 7-6-611(2)(a), an AFR must be completed and filed with the Montana Department of Administration within 6 months of the City’s fiscal year end. In accordance with MCA 7-6-611(2)(b), an audit report must be completed and filed with the Montana Department of Administration within 12 months of the end of the audited period. Effect: The City is out of compliance with MCA regulations Cause: The City had turnover in both its management functions and accounting positions making it difficult for the new staff to catch up. Recommendation: The finance department should ensure the timely completing and filing of its AFR and audit.