Finding Text
Finding 2024-001: Material Restatement to Capital Assets and Accounts Payable
Condition: During our current year-end audit fieldwork, our testing resulted in a material restatement of
Capital Assets and Accounts Payable.
Criteria: A good system of internal controls would provide for accurate recording of accruals and deferrals
on a regular basis to provide for accurate financial reporting.
Cause: Year-end entries related to accounts payable and fixed asset balances were required to accurately
present the City’s financial statements.
Effect: Material adjustments to the City’s accounts payable and fixed asset balances were required to
properly state the City’s prior year end balances.
Recommendation: We recommend that the City implement effective internal controls in order to provide
an accurate assessment of reporting requirements for year-end balances. This implementation of improved
controls would result in the appropriate recognition of financial reporting requirements.
Corrective Action Plan: The City should implement internal controls to properly record necessary accruals
and deferrals on a timely basis prior to audit fieldwork. Additionally, the City Comptroller should provide
monthly reviews of the financial statements.