Finding Text
Criteria: The grantee is required to submit financial reports on a monthly/quarterly basis to the pass-through entities for reimbursement. Reports are to include only amounts that have been incurred and paid. In addition, per the Uniform Guidance 2 CFR 200.303, non federal entities receiving federal awards are required to establish and maintain internal controls designed to provide reasonable assurance of compliance with federal laws, regulations and program compliance requirements. Condition:Amounts reported on the financial reports do not agree to the amounts recorded in the general ledger. Cause:There is a lack of internal control over compliance related to reporting expenditures. Effect:The City is not in compliance with reporting requirements and establishing good internal controls Questioned Costs: None Context/Sampling: During our testing, we looked at all required reports and compared amounts recorded in the general ledger to amounts recorded on the reports. In all instances the amounts did not agree and there was no reconciliation of reports to the general ledger. Prior Year: None Recommendation: We recommend that the City enhance internal controls to ensure reports are reconciled to the general ledger and the City is in compliance with the requirements of the Uniform Guidance. Client Response: The City recognizes the importance of internal controls and plans to enhance
procedures to ensure that financial reports include amounts that have been incurred and paid and that they are reconciled to the general ledger in compliance with the requirements of Uniform Guidance. Covid interruptions with related illnesses, early retirements and hiring difficulties all contributed to a negative impact on productivity.