Finding Text
RECONCILIATION AND REVIEW United States Department of the Treasury COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds (Federal Assistance Listing No. 21.027) Criteria: Internal controls should be designed to ensure proper reconciliation and review of all required annual reports to the accounting records to prevent or detect misstatements. Condition: We identified a deficiency in the design of controls over the annual report reconciliation function as well as the review of the annual report function. Cause: The City does not have policies and procedures in place to ensure that the annual report is reconciled to the accounting records or reviewed by someone other than the preparer of the annual report. Questioned Costs: N/A Effect: Errors related to the annual report could result in material misstatements and not be detected by the internal controls of the City. Recommendation: Proper internal controls should be established that ensure proper reconciliations and reviews of the annual report are performed and properly accounted for in the financial records. Identification of a repeat finding: This is a new finding in the current year. View of Responsible Official: Management concurs with the finding.