City of Cape Girardeau, Missouri

Criteria: Adequate internal controls over the Schedule of Expenditures of Federal Awards is necessary to ensure the schedule is accurate. Condition: Expenditures totaling $283,750 were not reported on the June 30, 2020 Schedule of Expenditures of Federal Awards. Instead, they were incorrectly reported for June 30, 2021. Cause: The City accounting department was unaware the $283,750 spent during the year ended June 30, 2020 was federal grant expenditures until the fiscal year ended June 30, 2021 when the reimbursement was received. Effect: The Schedule of Expenditures of Federal Awards was over reported by $283,750 during the year ended June 30, 2021. Recommendation: The City should institute adequate internal controls over reporting expenditures on the Schedule of Federal Awards to ensure it is reported accurately. Views of Responsible Officials and Planned Corrective Action: The City Finance Department and City Manager will institute internal controls over reporting the information used to compile the Schedule of Expenditures of Federal Awards to ensure it is accurate going forward.

Finding: 2021-002 Internal Control over Reporting on the Schedule of Expenditures Of Federal Awards Finding Type: Significant Deficiency Name of Contact Person: Mr. Dustin Ziebold, Finance Director Recommendation: The City should institute adequate internal controls over reporting expenditures on the Schedule of Expenditures of Federal Awards to ensure it is accurately reported. Corrective Action: The City Finance Department and City Manager will institute internal controls over reporting the information used to compile the Schedule of Expenditures of Federal Awards to ensure its accuracy going forward. Proposed Completion Date: Immediately