ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 179
MANAGEMENT LETTER COMMENTS
Honorable Mayor and City Commissioners
City of Eustis
Eustis, Florida
During the course of our audit, the following items came to our attention. These items involve primarily
operational matters, which if improved, will result in more efficient and effective operations:
Prior Year Comment, Carried Forward in Current Year
2020-1 Period End Closing Routine
For the past several years, the City’s Annual Comprehensive Financial Report (ACFR) has been issued
during the extended deadline period, nearly 8 months after year-end, which is an indication the City’s
monthly and year-end closing routines are not functioning as intended. Accurate and timely financial
reporting is dependent upon regular and timely monthly and year-end closing routine procedures. This
includes timely reconciliations and analysis of key financial statement accounts to facilitate interim and
year-end financial reporting. During the course of our audit process, we identified several areas where
reconciliations were incomplete, requiring journal entries to accurately report year-end financial
information, including entries related to capital assets, payroll, debt service and revenues.
To improve the City’s period-end closing routine and financial reporting process, we believe that specific
attention should be given to the following items:
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Creation of closing routines and timetables.
Review assignments of responsibilities for accounting and closing.
Monitoring of budget to actual financial information.
Additional utilization of the outsourced Accounting/ACFR Consultant.
If a documented period-end closing routine is put in place, the year-end closing process will become more
efficient and effective and will improve the quality and timeliness of all financial reporting.
Current Year Comment
2021-1 Information Technology (IT) General Controls
During our review of the City’s use of IT in the financial reporting process, we noted opportunities to
improve and strengthen the control environment and the quality and integrity of information generated
by the IT systems.
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