Report 2018-110 Recommendation 11 Responses
Report 2018-110: City of Lincoln: Financial Mismanagement, Insufficient Accountability, and Lax Oversight Threaten the City's Stability (Release Date: March 2019)
Recommendation #11 To: Lincoln, City of
By August 2019, Lincoln should establish and follow policies and procedures for budgeting, preparing its financial statements at the end of each fiscal year, and approving expenditures based on the Government Finance Officers Association guidelines and other best practices.
1-Year Agency Response
The City Council adopted the Budget Policy (April 23, 2019) and Closing Policy (February 12, 2019) and they were followed for the preparation of the 2019/2020 Annual Budget (approved on June 11, 2019), and the year-end closing process for the 2018/2019 Fiscal Year. The audited financials were completed in December 2019.
- Completion Date: December 2019
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Fully Implemented
We reviewed Lincoln's fiscal year 2018-19 comprehensive annual financial report and single audit report to conclude that the city has established sufficient policies and procedures for budgeting and for preparing its financial statements at the end of each fiscal year.
6-Month Agency Response
The City Council adopted the Budget Policy (April 23, 2019) and Closing Policy (February 12, 2019) and they were followed for the preparation of the 2019/2020 Annual Budget (approved on June 11, 2019), and the year-end closing process for the 2018/2019 Fiscal Year (annual audit activities are underway).
- Completion Date: June 2019
- Response Date: September 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
Lincoln established policies and procedures for budgeting, preparing its financial statements at the end of each fiscal year, and approving expenditures. We look forward to reviewing Lincoln's fiscal year 2018-19 audited financial statements upon completion to assess whether Lincoln followed its closing policy.
- Auditee did not substantiate its claim of full implementation
60-Day Agency Response
To date, the City Council has adopted the following financial policies: 1. Closing Policy, 2. Budget Policy, 3. Grant Policy. A draft Accounting and Reporting Policy has been developed and will be presented to City Council for consideration prior to August 2019.
- Estimated Completion Date: August 2019
- Response Date: May 2019
California State Auditor's Assessment of 60-Day Status: Partially Implemented
All Recommendations in 2018-110
Agency responses received are posted verbatim.