2022 Audit Finds the City of Madison Lacked Internal Controls and Missing or Incomplete Documentation
During Monday’s regular City Commission meeting, officials with the City of Madison addressed the findings of a recent 2022 financial audit that found the city lacks adequate internal controls over federal awards. The audit found that the city had improper records retention practices, an absence of documented policies and procedures for retaining financial and programmatic records, and a lack of formal, written procurement policy to ensure compliance with federal regulations. The review found instances where documentation supporting expenditures and program activities were missing or incomplete. It noted weaknesses in internal accounting control and record keeping, resulting in diminished assurance that transactions were properly executed. The audit also found the city spent money in excess of amounts budgeted, without supplementing the budget, and budgeted to spend more than available, which is not allowed in state law.
In a press release the City said Finance Officer Amy Sad, who entered her position in March of this year, had proactively identified several areas of needed improvement prior to the audit.
In that same release, Adam Shaw, who served as the Finance Commissioner in 2022 and is currently the Public Works Commissioner, said that while no funds were misused, there were procedural gaps that he and others were simply unaware of.
City Administrator Jameson Berreth said, “We take full responsibility for addressing these documentation gaps and are committed to being transparent in our response and processes going forward.”