EIN: 376000988
UEI: GSA_MIGRATION
Audited by: ARNOLD, BEHRENS, NESBIT, GRAY, P.C.
Oversight agency: 10 [Department of Agriculture]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 24, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 24, 2022 (1405 days ago).
What is a management decision? →THE CITY'S INTERNAL CONTROL DID NOT INITIALLY IDENTIFY MATERIAL MISSTATEMENTS IN THE FINANCIAL STATEMENTS FOR THE PERIOD UNDER AUDIT. HOWEVER, THE MISSATEMENTS WERE IDENTIFIED BY THE AUDITORS. ADJUSTING ENTRIES PROPOSED BY THE AUDITORS (ADJUSTMENTS TO BEGINNING BALANCES, RECLASSIFICATIONS OF REVENUES RECEIVED AND EXPENDITURES/EXPENSES DISBURSED, CORRECTIONS OF TRANSFERS AND POSING ERRORS, CAPITALIZATION OF ASSET ADDITIONS, AND RECORDING DEPRECIATION EXPENSE) WERE MATERIAL TO THE FINANCIAL STATEMENTS.
Show full finding ▾Hide full finding ▴THE CITY'S INTERNAL CONTROL DID NOT INITIALLY IDENTIFY MATERIAL MISSTATEMENTS IN THE FINANCIAL STATEMENTS FOR THE PERIOD UNDER AUDIT. HOWEVER, THE MISSATEMENTS WERE IDENTIFIED BY THE AUDITORS. ADJUSTING ENTRIES PROPOSED BY THE AUDITORS (ADJUSTMENTS TO BEGINNING BALANCES, RECLASSIFICATIONS OF REVENUES RECEIVED AND EXPENDITURES/EXPENSES DISBURSED, CORRECTIONS OF TRANSFERS AND POSING ERRORS, CAPITALIZATION OF ASSET ADDITIONS, AND RECORDING DEPRECIATION EXPENSE) WERE MATERIAL TO THE FINANCIAL STATEMENTS.
CITY COUNCIL WILL REVEIW RECORDS ON A MORE REGULAR BASIS.
2020-001
THE CITY HAS A SMALL STAFF, WHICH LIMITS ITS SEPARATION OF DUTIES. THE CITY TREASURER COLLECTS CASH RECEIPTS, MAKES DEPOSITS, INITIATES PURCHASES, INITIATES PAYMENTS (PREPARES CHECKS FOR PAYMENT), SIGNS CHECKS, POSTS ALL TRANSACTIONS, RECONCILES THE BANK ACCOUNTS AND PREPARES FINANCIAL REPORTS FOR THE MAYOR AND CITY COUNCIL. IN ADDITION, THE CITY TREASURER RECORDS/INPUTS UTILITY RATES, RECORDS USAGE OBTAINED FROM A RELATED PERSON, PREPARES UTILITY BILLS, RECORDS PAYMENTS, AND PREPARES BILLING REPORTS. THERE IS NO REVIEW OF THE ACCOUNTING RECORDS DERIVED FROM THE CASH RECEIPTS AND DISBURSEMENTS AND THERE IS NO OVERSIGHT OF THE BILLING FUNCTION.
Show full finding ▾Hide full finding ▴THE CITY HAS A SMALL STAFF, WHICH LIMITS ITS SEPARATION OF DUTIES. THE CITY TREASURER COLLECTS CASH RECEIPTS, MAKES DEPOSITS, INITIATES PURCHASES, INITIATES PAYMENTS (PREPARES CHECKS FOR PAYMENT), SIGNS CHECKS, POSTS ALL TRANSACTIONS, RECONCILES THE BANK ACCOUNTS AND PREPARES FINANCIAL REPORTS FOR THE MAYOR AND CITY COUNCIL. IN ADDITION, THE CITY TREASURER RECORDS/INPUTS UTILITY RATES, RECORDS USAGE OBTAINED FROM A RELATED PERSON, PREPARES UTILITY BILLS, RECORDS PAYMENTS, AND PREPARES BILLING REPORTS. THERE IS NO REVIEW OF THE ACCOUNTING RECORDS DERIVED FROM THE CASH RECEIPTS AND DISBURSEMENTS AND THERE IS NO OVERSIGHT OF THE BILLING FUNCTION.
COUNCIL WILL REVIEW RECORDS ON A MORE REGULAR BASIS. BANK RECONCILIATIONS WILL BE PRINTED MONTHLY, REVIEWED BY THE FINANCE CHAIR AND WILL INITIAL AND DATE EACH ACCOUNT.
2020-002
THE CITY COUNCIL APPROVED ALL DISBURSEMENTS OF THE USDA GRANT AT THE MONTHLY COUNCIL MEETINGS. IN NOVEMBER 2020, THE LOCAL USDA OFFICE PROVIDED THE CITY COUNCIL WITH THE LIST OF CHECKS TO BE APPROVED AND PREPARED FOR PAYMENT. THE CITY COUNCIL APPROVED THE LIST OF PAYMENTS TO BE PREPARED. AFTER THAT COUNCIL MEETING AND MINUTES PREPARED, A CHANGE WAS MADE TO ONE OF THE PAYMENTS BY THE USDA OFFICE. THE CITY COUNCIL DID NOT APPROVE THE CHANGE, BUT THE TREASURER PREPARED THE CHECK FOR THE REVISED PAYMENT WITH THE MAYOR'S APPROVAL. THIS IS A BREAKDOWN OF THE INTERNAL COUNTROL PROCESS OF APPROVING BILLS FOR PAYMENT AND THE COMPLIANCE REQUIREMENT OF APPROVING PAYMENT FOR REMITTANCE.
Show full finding ▾Hide full finding ▴THE CITY COUNCIL APPROVED ALL DISBURSEMENTS OF THE USDA GRANT AT THE MONTHLY COUNCIL MEETINGS. IN NOVEMBER 2020, THE LOCAL USDA OFFICE PROVIDED THE CITY COUNCIL WITH THE LIST OF CHECKS TO BE APPROVED AND PREPARED FOR PAYMENT. THE CITY COUNCIL APPROVED THE LIST OF PAYMENTS TO BE PREPARED. AFTER THAT COUNCIL MEETING AND MINUTES PREPARED, A CHANGE WAS MADE TO ONE OF THE PAYMENTS BY THE USDA OFFICE. THE CITY COUNCIL DID NOT APPROVE THE CHANGE, BUT THE TREASURER PREPARED THE CHECK FOR THE REVISED PAYMENT WITH THE MAYOR'S APPROVAL. THIS IS A BREAKDOWN OF THE INTERNAL COUNTROL PROCESS OF APPROVING BILLS FOR PAYMENT AND THE COMPLIANCE REQUIREMENT OF APPROVING PAYMENT FOR REMITTANCE.
THE CITY VOTED ON THE REDUCTION OF THE REVISED PAYMENT AT THE JANUARY 10, 2022 CITY COUNCIL MEETING. MOTION PASSED.
THE TREASURER POSTED TRANSACTIONS FOR THE GRANT INTO THE GENERAL LEDGER SOFTWARE WITH INCORRECCT DATES AND INCORRECT CHECK NUMBERS. ONE CHECK TO A GRANT VENDOR DID NOT CONTAIN TWO SIGNATURES AS REQUIRED. ALL DISBURSEMENTS WERE RECORDED TO EXPENSE ACCOUNTS INSTEAD OF THE CAPITAL ASSET ACCOUNT.
Show full finding ▾Hide full finding ▴THE TREASURER POSTED TRANSACTIONS FOR THE GRANT INTO THE GENERAL LEDGER SOFTWARE WITH INCORRECCT DATES AND INCORRECT CHECK NUMBERS. ONE CHECK TO A GRANT VENDOR DID NOT CONTAIN TWO SIGNATURES AS REQUIRED. ALL DISBURSEMENTS WERE RECORDED TO EXPENSE ACCOUNTS INSTEAD OF THE CAPITAL ASSET ACCOUNT.
THE CITY COUNCIL WILL REVIEW ACCOUNTING RECORDS ON A MORE REGULAR BASIS BY REVIEWING CANCELLED CHECKS WITH POSTINGS IN THE GENERAL LEDGER AS TO VENDOR, DATE CHECK NUMBER, AND AMOUNT. THE CITY COUNCIL WILL REVIEW FOR DUAL SIGNATURES ON CHECKS.
FAC accepted this audit on March 27, 2021 — management decision was due September 27, 2021.
CITY COUNCIL APPROVES ALL DISBURSEMENTS OF THE USDA LOAN AND GRANT AT THE MONTHLY COUNCIL MEETINGS. IN APRIL 2020, THE LOCAL USDA OFFICE PROVIDED THE CITY COUNCIL WITH THE LIST OF CHECKS TO BE APPROVED AND PREPARED FOR PAYMENT. THE CITY COUNCIL APPROVED THE LIST OF PAYMENTS TO BE PREPARED. AFTER THAT COUNCIL MEETING AND MINUTES APPROVED, A CHANGE WAS MADE TO ONE OF THE PAYMENTS BY THE USDA OFFICE. THE CITY COUNCIL DID NOT APPROVE THE CHANGE, BUT THE TREASURER APREPARED THE CHECK FOR THE REVISED PAYMENT WITH THE MAYOR'S APPROVAL. THIS IS A BREAKDOWN OF THE INTERNAL CONTROL PROCESS OF APPROVING BILLS FOR PAYMENT AND THE COMPLIANCE REQUIREMENT OF APPROVING PAYMENT FOR REMITTANCE.
Show full finding ▾Hide full finding ▴CITY COUNCIL APPROVES ALL DISBURSEMENTS OF THE USDA LOAN AND GRANT AT THE MONTHLY COUNCIL MEETINGS. IN APRIL 2020, THE LOCAL USDA OFFICE PROVIDED THE CITY COUNCIL WITH THE LIST OF CHECKS TO BE APPROVED AND PREPARED FOR PAYMENT. THE CITY COUNCIL APPROVED THE LIST OF PAYMENTS TO BE PREPARED. AFTER THAT COUNCIL MEETING AND MINUTES APPROVED, A CHANGE WAS MADE TO ONE OF THE PAYMENTS BY THE USDA OFFICE. THE CITY COUNCIL DID NOT APPROVE THE CHANGE, BUT THE TREASURER APREPARED THE CHECK FOR THE REVISED PAYMENT WITH THE MAYOR'S APPROVAL. THIS IS A BREAKDOWN OF THE INTERNAL CONTROL PROCESS OF APPROVING BILLS FOR PAYMENT AND THE COMPLIANCE REQUIREMENT OF APPROVING PAYMENT FOR REMITTANCE.
THE CITY COUNCIL VOTED ON THE REDUCTION OF THE REVISED PAYMENT AT THE JANUARY 25, 2021 COUNCIL MEETING. MOTION PASSED.
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