2025 Annual Comprehensive Report

The City will conduct additional training and development of staff on targeted identified accounting treatments and establish several layers of internal review to widen governmental accounting knowledge among the Finance group. The City will also begin certain aspects of the year-end accounting and review process earlier to allow enough time for thorough analysis, accurate accounting and reporting, and for sufficient internal review. More cross-training will be provided on existing financial report writing tools to further ensure accuracy. Contact Person: Marlene Druga Proposed Completion Date: 6/30/2026 2025-002 Revenue Recognition; Internal controls should be in place to ensure that amounts reported as revenues and related accounts are appropriate, properly valued, and recorded in the proper period in accordance with generally accepted accounting principles. Recommendation: We recommend the City carefully review all grant revenues and related deferred revenues to ensure they are reported in accordance with GASB Statement 33, Accounting and Financial Reporting for Nonexchange Transactions. Management agrees with the finding, as stated. Corrective Action Plan: Additional training on the provisions of GASB Statement 33 will be provided to staff as well as increased management oversight to ensure proper accounting and reporting treatment for grant revenue is performed. Contact Person: Evelyn Johnson Proposed Completion Date: 6/30/2026 2025-003 Significant Deficiency over Reporting; The recipients are required to submit quarterly performance reports by the 15 th day of the following month after the quarter end. Federal Program: Community Project Funding/Congressionally Directed Spending, Assistance Listing Number 17.289, U.S. Department of Labor Recommendation: We recommend the City strengthen controls to ensure required reports are provided by the grantee to the Department of Labor on a timely basis. Management agrees with the finding, as stated.

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