Finding Text
Finding: 2022-004 Investment Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition: The City does not have an internal control policy in place over investment financial reporting that would enable management to conclude its investment footnote disclosures are complete and presented in accordance with GAAP. Criteria: The City is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements included related disclosures, in conformity with U.S. Generally Accepted Accounting Principles (GAAP). Cause: The City relies on the audit firm to prepare the investment related footnote disclosures. However, they have designated an individual with suitable skill, knowledge, or experience to oversee their preparation and have reviewed, approved, and accepted responsibility for the investment related footnote disclosures. Effect: The potential exists that a material misstatement of the investment related disclosures could occur and not be prevented or detected by the City?s internal controls. Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the investment related disclosures is beneficial. Repeat Finding: No Views of Responsible Officials and Planned Corrective Actions: The City will continue to rely upon the audit firm to prepare the investment related footnote disclosures in accordance with GAAP. Management will review, approve, and accept responsibility for these investment related footnote disclosures prior to issuance. The Administrator-Clerk-Treasurer is the official responsible for ensuring corrective action of the deficiency.