City of San AngeloLocal Government

Repeat Finding: No Type of Finding: Significant Deficiency Description: Overtime Approval Criteria: Timecards must be approved by department managers prior to payroll processing. Through this process, overtime must be approved. Condition: There were noted instances of timecards initiated and approved by the same person, and there were instances of timecards calculating excessive overtime per payroll for two employees, one of which had the authority to approve the timecards. Cause: Approvals for overtime worked were provided by an employee who also entered and was paid for excessive overtime. She approved excessive overtime for herself and another employee. Effect: Overtime was paid to two employees for excessive overtime over several pay periods. Context: An automated timecard system is used by the department, but overrides were made to input and approve excessive overtime. Recommendation: Work with the automated timecard system company to provide reports of overrides made. Designate a department head that does not have access to overrides in the timecard system to approve all time worked. Views of Responsible Officials: See Corrective Action Plan.

2021-001: Major Program Not Captured on Schedule of Findings and Questioned Costs Type of Finding: Internal Control over Compliance (Material Weakness) Criteria: 2 CFR Section 200 requires that the Schedule of Expenditures of Federal Awards report all expenditures of the government expended in the year under audit. Condition: A major program was not included in the Schedule of Expenditures of Federal Awards and was identified as a Federal program. Cause: The Federal program was administered by the City?s discretely presented component unit and its applicability to the Schedule of Expenditures of Federal Awards was not identified until the audit was nearing completion. Effect: The original Schedule of Expenditures of Federal Awards did not originally include a major program and was not included in the original major program determination. Context: Because this program was major and has not been audited in the prior two years, it was mandatory that this program be tested as a major program. Recommendation: The City should centralize all Federal programs to ensure completeness and compliance throughout the year and when the Schedule of Expenditures of Federal Awards is populated. View of Responsible Officials: See Corrective Action Plan.

2019-001 Cut-Off Type of Finding: Internal Control over Financial Reporting (Significant Deficiency) Criteria: Generally accepted accounting principles require that expenses be recorded in the period in which they are incurred. Condition: The process to properly accrue expenses at fiscal year-end was not adequately performed. Cause: Invoices received subsequent to year end with service periods in the current fiscal year were not thoroughly reviewed to accrue the expenses related to the current fiscal year. Effect: Liabilities and expenses were understated because some expenses applicable to the fiscal year were not properly accrued as of fiscal year-end. Context: Adjustments required to record transactions in their proper period could be material to the financial statements. Recommendation: Invoices received subsequent to fiscal year end should be carefully reviewed to accrue expenses related to service periods in the current fiscal year. View of Responsible Officials: See Corrective Action Plan.