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City of Orono, Minnesota <br />Schedule of Finding and Response <br />For the Year Ended December, 31 2023 <br />Finding Description <br />2023-001 Material Audit Adjustments <br />Condition:During our audit, material adjustments were needed to correct the year-end balances for various <br />accounts receivable and investment balances. <br />Criteria: <br />accounting system need to agree to the underlying supporting documentation. <br />Cause:City staff did not correctly adjust for receivable and payable balances during the year. <br />Effect: <br />control, which could lead to a material misstatement. <br />Recommendation:We recommend management review the related journal entries, obtain an understanding of why <br />the entries were necessary and modify current procedure to ensure that future corrections are not <br />needed. <br />Management Response: <br />Management agrees with the finding and understands the reason the adjustments were needed. Procedures over year- <br />end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future. <br />12 <br />Management agrees with the finding and understands the reason the adjustments were needed. Procedures over yearManagement agrees with the finding and understands the reason the adjustments were needed. Procedures over year <br />end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future.end adjustments will be reevaluated to eliminate the need for related audit adjustments in the future. <br />210