City of HopeLocal Government

City of Hope, Arkansas respectfully submits the following corrective action plan for the year ended December 31, 2019. The findings from the Schedule of Findings and Questioned Costs for the year ended December 31, 2019, are discussed below. The findings are numbered consistent with the numbers assigned in the schedule. Findings---Financial Statement Audit Findings---Federal Award Programs Audit 2019-001 Condition-The City did not segregate financial accounting duties relating to initiating, receipting, depositing, disbursing, and recording cash transactions to sufficiently reduce the risk of fraud or error to its financial statements or to each of its major programs. This was also a finding as of December 31, 2018. Recommendation-The City should evaluate its internal control and segregate financial duties to the extent possible with current staffing levels. The City should consider additional oversight where segregation is not possible. Action Taken-We have evaluated our internal controls. We segregate financial duties over financial statements and federal programs to the extent possible with current staff. The City lacks financial resources to add the additional staff required for full segregation of duties. The City makes every effort to provide oversight of transactions related to its financial statement and to its federal awards. We will continue to allocate available staff and resources to provide oversight and segregation of duties to the fullest extent possible. If any oversight agency has questions regarding the plan, please call Debbie Hall, Finance Director, at 870-722-2573.

2018-001