Report 2018-110 Recommendation 14 Responses

Report 2018-110: City of Lincoln: Financial Mismanagement, Insufficient Accountability, and Lax Oversight Threaten the City's Stability (Release Date: March 2019)

Recommendation #14 To: Lincoln, City of

To ensure that city management holds city staff accountable for resolving deficiencies identified in its annual audits, Lincoln's city council should immediately require the city manager to track and report progress in addressing outstanding audit recommendations at least quarterly.

1-Year Agency Response

Per Auditor's request, the City's Financial Reporting Policy was revised on January 14, 2020, to require the quarterly reporting of progress made to address any outstanding audit findings. It should be noted, that the reporting was being completed prior to request for revision of the policy.

California State Auditor's Assessment of 1-Year Status: Fully Implemented


6-Month Agency Response

On April 15, 2019, City Council received the annual financial audit for the Fiscal Year ending, June 30, 2018. On July 2, 2019, staff presented to City Council an update regarding the progress of addressing outstanding audit recommendations for the 2017/2018 Fiscal Year. Each audit finding has an action plan, and progress on addressing the action plan will be tracked and reported until such time the findings have been addressed.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

Although Lincoln's city manager has started tracking and reporting the city's progress in addressing outstanding audit recommendations, Lincoln has not yet demonstrated that the city council established a specific requirement for the city manager to track such progress and provide these reports at least quarterly.


60-Day Agency Response

The first full quarter that this recommendation will be implemented is the fourth quarter that ends on June 30, 2019. Staff has developed a plan to address each audit finding and as initiated implementation of the plan. However, full implementation of this recommendation cannot be substantiated until the end of the fourth quarter of the fiscal year due to the fact that the audit was release towards the end of the third quarter and therefore the first quarterly report will be made upon the completion of the fourth quarter.

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2018-110

Agency responses received are posted verbatim.