FY20 Glendale Single Audit
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CLAconnect.com WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING CORRECTIVE ACTION PLAN The City of Glendale, Arizona respectfully submits the following corrective action plan for the year ended June 30, 2020. Audit period: The findings below are applicable to the June 30, 2020 reporting period. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS 2020-:001 Financial Reporting Type of Finding: Significant deficiencies in Internal Control Over Financial Reporting Condition/Context: While performing audit procedures, it was noted that revenues earned prior to June 30, 2020 that were received subsequent to year end, but received within the period of availability (within 60 days of year end) were not accrued. Criteria or Specific Requirement: Internal controls should be designed to ensure proper cut-off of revenues at or near year end. Repeat Finding: No. Anticipated Completion Date: The City plans to have the finding fully corrected by the reporting period ending June 30, 2021. Corrective Action Plan: The City will review its procedures related to accounts payable and revenue received within the 60 days after fiscal year end, to ensure controls are put into place to record invoices and revenue in the proper period. Contact Person: Rebecca Chitwood, Controller FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None noted in the current year. PRIOR YEAR FINDINGS The City of Glendale, Arizona respectfully submits the following prior year findings that were reported for the year ended June 30, 2019. Audit period: The findings below are applicable to the June 30, 2019 reporting period. The findings from the June 30, 2019 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS 2019-:001 Financial Reporting Type of Finding: Material weakness in Internal Control Over Financial Reporting Condition/Context: The City does not have a system of internal controls that would enable management to conclude the financial statements and related disclosures are complete, accurate, and properly valued and presented in accordance with Generally Accepted Accounting Principles (GAAP). Audit adjustments were proposed and subsequently recorded by management to present capital assets in accordance with generally accepted accounting principles. An audit adjustment was proposed and subsequently recorded by management to reclassify construction in process (CIP) for completed projects out of CIP to its respective depreciable assets classifications. Additionally, audit procedures identified a sales tax accrual that was double booked. Criteria or Specific Requirement: Generally accepted accounting principles require management to maintain internal controls over the recording and reconciling of financial information. Status: Fully corrected in fiscal year 2020. Contact Person: Rebecca Chitwood, Controller