For City Council Meeting November 15, 2022
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Katherine Stevens, Finance Director
Title
Request City Council to Receive and File the Fiscal Year 2020-2021 Single Audit Report.
Body
BACKGROUND
September 29, 2022, the City of Rialto's Single Audit was completed and released by Lance, Soll & Lunghard, LLP (LSL). The City was found to have complied, in all material respects, with the compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
ANALYSIS/DISCUSSION
September 29, 2022, the City of Rialto's Single Audit was completed and released by LSL. Part of the annual audit was LSL testing the City's internal controls and completing an additional review of the City's Federal funding. The final Single Audit report is in Attachment A.
The Single Audit includes the prior findings contained in the LSL's Annual Audit report that included the following deficiencies:
1. Material Weakness - The City did not accrue a material check, totaling $939,000. This was a second quarter sales tax payment to Medline that was corrected.
2. Material Weakness - The City's General checking bank account balance in the general ledger was not reconciled to the bank statements in a timely manner. This has been rectified with implementation of standard operating procedures requiring timely bank reconciliation by Finance staff.
3. Material Weakness - Unavailable revenues related to grants receivables, totaling $2.3 million, were not properly reconciled on the grant's reconciliation. This has been rectified with implementation of standard operating procedures requiring timely grant expenditures and billing reconciliation by Finance staff.
4. Significant Deficiency - The City's Accounting Procedures and Policies Manual had not been updated in several years. This has been rectified with im...
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