Finding Text
Criteria
Eight journal entries were made during the audit process from information obtained as audit evidence. A ninth entry was made to agree actuarial reports to various funds, which the audit routinely assists with during the audit process.
Condition and Context
Eight journal entries were made during the audit process to correct various sections and agree to supporting documentation.
Cause
The City’s internal control process for review and approval of journal entries, reconciliations and other documentation did not adequately prevent or detect and correct misstatements to the financial statements.
Effect
It’s imperative that internal control processes, especially those of review and approval, are properly performed to provide accurate financial statement information to the users of the financial statements. As a result of the review and approval process not being performed properly, several transactions were recorded incorrectly or not at all.
Recommendation
We recommend that management continuously improve the review and approval process and determine if and where problems persist.
Views of the responsible officials and planned corrective actions
Management agrees that the review and approval process may need to be examined and refined to ensure financial information is properly recorded.
Official Responsible for Ensuring the Corrective Action Plan is Implemented
Jeff Davis, City Treasurer/Director of Finance; Stan Reno, Interim-City Manager.
Planned Completion Date for the Corrective Action Plan
Recommendations are considered at the issuance of the report, October 24, 2024.