City of Port Arthur, Texas

Finding 2023-002: Untimely and Inaccurate Reporting ALNs 20.507 and 20.526 – Federal Transit Cluster Federal Agency: U.S. Department of Transportation Type of Finding: Significant Deficiency in Internal Control over Noncompliance and Noncompliance Finding Criteria The City is required to request reimbursement within 90 days of disbursement. Management is responsible for establishing and maintaining effective internal controls over accurately and timely reporting for grants. Condition During our audit, we noted selected reports were not submitted in a timely manner and contained inaccurate information. Cause The City’s internal controls over reporting accurate information on a timely basis are not adequately designed. Effect or Potential Effect The City may submit inaccurate and/or untimely reports. Recommendation We recommend policies and procedures be put into place to establish effective internal controls surrounding reporting to ensure reports are submitted accurately and timely.