Finding Text
Condition: We noted that one business loan issued during the fiscal year did not
have records verifying employee retention.
Criteria: The City was unable to provide compliance supporting documentation of
the one business loan for the year ended June 30, 2022, specifically
verification of employee retention.
Cause: Lack of internal controls over compliance requirements for federal
expenditures.
Effect: Adequate supporting documentation of outstanding loans are not being
effectively maintained and archived by City’s personnel.
Context: The City was unable to provide verification of employee retention.
Repeat Finding: This is a new finding for the fiscal year ended June 30, 2022.
Questioned Costs: $30,500
Recommendation: We recommend that the City monitors each loan to ensure that the City
maintains the most up-to-date information, and remains in compliance
with all necessary requirements of the loan program.