Finding 59179 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-30
Audit: 56421
Organization: City of Greenbelt, Maryland (MD)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: The City's financial statements for June 30, 2022, were restated due to an oversight in applying a new accounting rule.
  • Impacted Requirements: Accounting policies must ensure timely implementation of new accounting pronouncements.
  • Recommended Follow-Up: Revise procedures to ensure all new accounting rules are fully applied in the future.

Finding Text

2022-001 Accurate Financial Reporting Statement of Condition: The City's June 30, 2022 financial statements were restated to properly reflect the net position of the fiduciary fund. Criteria: Accounting policies and procedures should be designed and implemented in order to ensure that new accounting pronouncements are implemented by the effective date. Cause: Oversight in the application of a recently issued GASB accounting pronouncement. Effect: A recently issued accounting pronouncement was not fully implemented which resulted in a required change in presentation to the City's fiduciary fund financial statements. Recommendation: We recommend that the City revise current procedures to affirm that new accounting pronouncements are properly applied. View of Responsible Officials: The accounting pronouncement was recently adopted and in the implementation one aspect of the pronouncement wa ed. Further pronouncements will be carefully reviewed prior to implementation.

Corrective Action Plan

The accounting pronouncement was recently adopted and in the implementation one aspect of the pronouncement was not adopted. Further pronouncements will be carefully reviewed prior to implementation.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 635621 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.76M
14.195 Section 8 Housing Assistance Payments Program $1.07M
14.218 Community Development Block Grants/entitlement Grants $309,140
95.001 High Intensity Drug Trafficking Areas Program $78,750
14.191 Multifamily Housing Service Coordinators $67,964