CITY OF PEKIN

EIN: 376002169

UEI: ECBYN719GLG6

Data as of August 26, 2026

CITY OF PEKIN6 audit years12 findings7 repeat
6
Audit Years
12
Total Findings
7
Repeat Findings

FY 2024-04-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on July 10, 2026. 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 January 10, 2027 (137 days from today).

What is a management decision? →
2024-001
Activities Allowed or Unallowed / Cost Allowability / Reporting
MATERIAL WEAKNESSREPEAT

During audit fieldwork, our testing resulted in a restatement of fund balance in order to implement GASB 96 and correct buildings, land improvements and equipment categories of capital assets that were improperly recorded in the prior year. Criteria: A good system of internal controls would provide for accurate recording and reporting of leases and capital assets on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to leases and capital assets were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state leases and capital assets. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City will implement internal controls to properly record leases and capital assets on a timely basis prior to audit fieldwork

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Material Weakness Finding 2024 – 001: Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to implement GASB 96 and correct buildings, land improvements and equipment categories of capital assets that were improperly recorded in the prior year. Criteria: A good system of internal controls would provide for accurate recording and reporting of leases and capital assets on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to leases and capital assets were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state leases and capital assets. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City will implement internal controls to properly record leases and capital assets on a timely basis prior to audit fieldwork

Corrective Action Plan

Finding 2024 – 001: Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to implement GASB 96 and correct buildings, land improvements and equipment categories of capital assets that were improperly recorded in the prior year. Plan: The City will implement internal controls to properly record leases and capital assets on a timely basis prior to audit fieldwork. Anticipated Date of Completion: Updated Capital Assets Policy adopted on May 27, 2025, and applied retroactively to May 1, 2022. Name of Contact Person: Eric Dubrowski, Finance Director Management Response: As part of its internal review of capital assets, the City implemented a revised Capital Assets Policy. The revised policy significantly reduced the number of assets required to be tracked while retaining the vast majority of capital assets on the City's books, improving compliance and increasing administrative efficiency. The City also reviews the implementation of new GASB pronouncements with its external auditors in advance of each applicable reporting period to help ensure new accounting standards are implemented accurately and timely. The GASB 96 implementation has been completed, and no additional fund balance restatements related to GASB 96 are anticipated.

Prior Finding References

2023-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Reporting →

FY 2023-04-30

FAC accepted this audit on March 3, 2026 — management decision was due September 3, 2026.

2023-001
Other
MATERIAL WEAKNESSREPEAT

During audit fieldwork, our testing resulted in a restatement of fund balance to implement a new capital asset policy, implement GASB 87, and write-off of Forgivable Loan balances. Criteria: A good system of internal controls would provide accurate recording and reporting of the above listed items on a regular basis to provide for accurate financial reporting. Cause: Year-end entries related to capital asset balances, GASB 87 implementation, and Forgivable Loan balance write-off were required to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state capital assets, GASB 87 balances, and Forgivable Loan balances. Recommendation: We recommend the City implement effective internal controls to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City and finance director will implement internal controls to properly record capital assets, GASB 87 balances, and Forgivable Loan balances in a timely basis prior to audit fieldwork

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Condition: During audit fieldwork, our testing resulted in a restatement of fund balance to implement a new capital asset policy, implement GASB 87, and write-off of Forgivable Loan balances. Criteria: A good system of internal controls would provide accurate recording and reporting of the above listed items on a regular basis to provide for accurate financial reporting. Cause: Year-end entries related to capital asset balances, GASB 87 implementation, and Forgivable Loan balance write-off were required to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state capital assets, GASB 87 balances, and Forgivable Loan balances. Recommendation: We recommend the City implement effective internal controls to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City and finance director will implement internal controls to properly record capital assets, GASB 87 balances, and Forgivable Loan balances in a timely basis prior to audit fieldwork

Corrective Action Plan

Condition: During audit fieldwork, testing resulted in a restatement of fund balance related to the implementation of a new capital asset policy, implementation of GASB Statement No. 87, and the write-off of forgivable loan balances. Plan: The City and its Finance Department will continue implementing revised policies and new accounting standards, some of which may require retroactive restatements. The City will also continue to evaluate the appropriateness of receivable balances, including forgivable loans, prior to audit fieldwork. Anticipated Date of Completion: Fiscal Year 2024 Name of Contact Person: Eric Dubrowski, Finance Director Management Response: As part of its internal review of capital assets, the City implemented a revised capital asset policy. This policy significantly reduced the number of assets required to be tracked while retaining the vast majority of assets on the City’s books, resulting in improved compliance and increased administrative efficiency. The City reviews the implementation of new GASB pronouncements with its auditors in advance of each applicable reporting period. Forgivable loan balances previously corresponded to liens placed on properties and notes issued to borrowers. Upon reevaluation of the criteria required for forgiveness, the City concluded that these loans were highly likely to be forgiven. In the limited circumstance where forgiveness would not occur, such as a borrower ceasing operations, collection of the loan would also be unlikely. As a result, the City determined that these balances should be removed retroactively from the balance sheet, resulting in a restatement of fund balance.

Prior Finding References

2022-001

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2023-002
Other
REPEAT

Previously and during audit fieldwork, our testing resulted in audit adjustments to present materially accurate financial statements. Criteria: A good system of internal controls would provide accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources. Corrective Action Plan: The City and finance director will implement internal controls to properly record year-end adjustments on a timely basis prior to audit fieldwork.

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Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments to present materially accurate financial statements. Criteria: A good system of internal controls would provide accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources. Corrective Action Plan: The City and finance director will implement internal controls to properly record year-end adjustments on a timely basis prior to audit fieldwork.

Corrective Action Plan

Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Plan: The Director of Finance, along with staff, will continue to review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. Anticipated Date of Completion: Fiscal Year 2025 Name of Contact Person: Eric Dubrowski, Finance Director Management Response: The City has hired qualified accounting staff to strengthen year-end close procedures and address the timely preparation of journal entries. In addition, the City has increased training efforts to reinforce proper accounting practices and year-end processes.

Prior Finding References

2022-002

About Other →

FY 2022-04-30

FAC accepted this audit on April 1, 2025 — management decision was due October 1, 2025.

2022-001
Other
MATERIAL WEAKNESSREPEAT

During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct retainage payable improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of retainage payable on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to retainage payable were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state retainage payable. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City and finance director will implement internal controls to properly record retainage payable on a timely basis prior to audit fieldwork

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Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct retainage payable improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of retainage payable on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to retainage payable were required in order to accurately present the City’s financial statements. Effect: A material adjustment to the City’s beginning fund balance was required to properly state retainage payable. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The City and finance director will implement internal controls to properly record retainage payable on a timely basis prior to audit fieldwork

Corrective Action Plan

The Director of Finance, along with staff, has implemented new procedures to identify and record retainage payable entries.

Prior Finding References

2021-001

About Other →
2022-002
Other
REPEAT

Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources. Corrective Action Plan: The City and finance director will implement internal controls to properly record year-end adjustments on a timely basis prior to audit fieldwork.

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Full finding narrative

Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources. Corrective Action Plan: The City and finance director will implement internal controls to properly record year-end adjustments on a timely basis prior to audit fieldwork.

Corrective Action Plan

The Director of Finance, along with staff, will continue to review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork.

Prior Finding References

2021-004

About Other →

FY 2021-04-30

FAC accepted this audit on July 30, 2024 — management decision was due January 30, 2025.

2021-001
Other
MATERIAL WEAKNESSREPEAT

During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct expenses in the correct internal service fund due between funds. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources.

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Full finding narrative

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct expenses in the correct internal service fund due between funds. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources.

Corrective Action Plan

The Director of Finance, along with staff, will evaluate all revenues, receivables, payable, and expenses as part of the audit preparation process and prepare fully adjusted financial statements prior to audit fieldwork. The Finance Department will conduct monthly reconciliations and perform month end closing procedures to better prepare for audits. The month end closing procedures should ensure that all expenses are allocated appropriately between funds prior to year-end adjustments.

Prior Finding References

2020-001

About Other →
2021-002
Other
MATERIAL WEAKNESS

During audit fieldwork, it was noted the City does not have a centralized reporting system for all grants obtained by the City. In addition, it was noted the City does not have a process for accurately identifying grant revenues and expenses recorded in the City’s general ledger. Criteria: Grant administration procedures should be performed to verify all payments are properly received, all expenditures are eligible under the grant, and the grant compliance occurs. Cause: Lack of oversight by the City and inadequate controls over reconciliation of grant revenues and expenditures. Effect: Inaccurate reporting of grant revenues and expenditures. Recommendation: We recommend all departments provide the original grant agreements to the finance department. In addition, we recommend that the City adopt a policy and process for reconciling grant revenues and expenditures to the general ledger, grant agreements and financial reports submitted to the granting agencies. Such reconciliation should be done on a regular basis to ensure proper identification of all grant revenues and expenditures and to prevent inaccurate reporting or duplicate requests for reimbursements.

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Condition: During audit fieldwork, it was noted the City does not have a centralized reporting system for all grants obtained by the City. In addition, it was noted the City does not have a process for accurately identifying grant revenues and expenses recorded in the City’s general ledger. Criteria: Grant administration procedures should be performed to verify all payments are properly received, all expenditures are eligible under the grant, and the grant compliance occurs. Cause: Lack of oversight by the City and inadequate controls over reconciliation of grant revenues and expenditures. Effect: Inaccurate reporting of grant revenues and expenditures. Recommendation: We recommend all departments provide the original grant agreements to the finance department. In addition, we recommend that the City adopt a policy and process for reconciling grant revenues and expenditures to the general ledger, grant agreements and financial reports submitted to the granting agencies. Such reconciliation should be done on a regular basis to ensure proper identification of all grant revenues and expenditures and to prevent inaccurate reporting or duplicate requests for reimbursements.

Corrective Action Plan

The Director of Finance, along with staff will prepare and review grant policy and procedures. The Finance Department will review all grant agreements on a timely basis and perform monthly reconciliations of grant revenues and expenses. The Finance Department will further utilize features and functions available within its accounting system that allows tracking of expenditures and revenues by projects by utilizing task codes in our Project Management module. The Finance Department will collaborate with Departments by utilizing grant report forms to be completed periodically.

About Other →
2021-003
Other
MATERIAL WEAKNESS

During our current year-end audit procedures, we found that the bank reconciliations were not being performed timely. One of the most important internal control features over cash receipts and disbursements is the preparation of the monthly bank reconciliation. By not preparing monthly bank reconciliation’s, errors and omissions may occur and not be detected on a timely basis. Internal control is most effective when bank reconciliations are prepared immediately upon receipt of the monthly bank statement. The bank statement should be received unopened by an individual not responsible for writing checks or recording cash receipts and disbursement transactions. Internal control is stronger when someone not responsible for entries in the receipts and disbursements records prepares the bank reconciliation. Criteria: A good system of internal controls would reconcile all cash accounts on a monthly basis. Reconciliations should reconcile between bank and general ledger balances should be prepared to determine all cash transactions have been properly recorded. Cause: Lack of oversight by the City an inadequate controls over the bank reconciliation process. Effect: Misstated cash balances and an accumulation of unreconciled errors. Recommendation: We recommend as a means of better control, that bank reconciliations be performed each month and any variances be investigated and adjusted immediately.

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Condition: During our current year-end audit procedures, we found that the bank reconciliations were not being performed timely. One of the most important internal control features over cash receipts and disbursements is the preparation of the monthly bank reconciliation. By not preparing monthly bank reconciliation’s, errors and omissions may occur and not be detected on a timely basis. Internal control is most effective when bank reconciliations are prepared immediately upon receipt of the monthly bank statement. The bank statement should be received unopened by an individual not responsible for writing checks or recording cash receipts and disbursement transactions. Internal control is stronger when someone not responsible for entries in the receipts and disbursements records prepares the bank reconciliation. Criteria: A good system of internal controls would reconcile all cash accounts on a monthly basis. Reconciliations should reconcile between bank and general ledger balances should be prepared to determine all cash transactions have been properly recorded. Cause: Lack of oversight by the City an inadequate controls over the bank reconciliation process. Effect: Misstated cash balances and an accumulation of unreconciled errors. Recommendation: We recommend as a means of better control, that bank reconciliations be performed each month and any variances be investigated and adjusted immediately.

Corrective Action Plan

The Director of Finance, along with staff, will review and perform monthly bank reconciliations on a timely basis and investigate any variances. Staff will review and make journal entries in real time as they occur to better prepare for monthly reconciliations. Reviewing transactions daily enables efficient reconciliations as supporting documents will be readily available.

About Other →
2021-004
Other
REPEAT

Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources.

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Full finding narrative

Condition: Previously and during audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City’s financial statements. Effect: The City’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City’s financial activities and resources.

Corrective Action Plan

The Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The Finance Department will conduct monthly reconciliations and perform month end closing procedures to better prepare for year end adjustments and audit field work. The Finance Department will review, expand and complete its list of monthly closing procedures and year end adjustment reconciliations prior to audit fieldwork.

Prior Finding References

2020-002

About Other →

FY 2020-04-30

FAC accepted this audit on August 9, 2023 — management decision was due February 9, 2024.

2020-001
Reporting
MATERIAL WEAKNESS

During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct expenses in the correct fund, receivables, and payables improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of revenues, receivables, expenses, and payables on a regular basis in order to provide for accurate financial reporting. Cause: Due to improper recording in prior years, the City financial statements were understated. Effect: The improper recording of expenses, payables, and receivables resulted in a material adjustment to the City?s beginning fund balances for the audited fiscal year. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements for revenues, receivables, expenses and payables. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements.

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Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct expenses in the correct fund, receivables, and payables improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of revenues, receivables, expenses, and payables on a regular basis in order to provide for accurate financial reporting. Cause: Due to improper recording in prior years, the City financial statements were understated. Effect: The improper recording of expenses, payables, and receivables resulted in a material adjustment to the City?s beginning fund balances for the audited fiscal year. Recommendation: We recommend the City implement effective internal controls in order to provide an accurate assessment of reporting requirements for revenues, receivables, expenses and payables. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements.

Corrective Action Plan

Finding 2020 ? 001: Fund Balance Restatement Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct expenses in the correct fund, receivables, and payables improperly recorded in prior years. Plan: The Director of Finance, along with staff, will evaluate all revenues, receivables, payable, and expenses as part of the audit preparation process and prepare fully adjusted financial statements prior to audit fieldwork. Anticipated Date of Completion: During 3Q of the current year we expect to complete preparations for the next fiscal year audit.

About Reporting →
2020-002
Reporting

During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City?s financial statements. Effect: The City?s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City?s financial activities and resources.

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Finding 2020 ? 002: Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all City accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the City?s financial statements. Effect: The City?s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the City?s financial activities and resources.

Corrective Action Plan

Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Plan: The Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. Anticipated Date of Completion: During 3Q of the current year we expect to complete preparations for the next fiscal year audit.

About Reporting →

FY 2018-04-30

FAC accepted this audit on December 21, 2020 — management decision was due June 21, 2021.

2018-017
Reporting

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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