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Audit Objective

Determine whether the City of Johnstown (City) officials maintained accurate and complete financial information to adequately manage operations.

Key Findings

City officials did not maintain accurate and complete financial information to adequately manage operations.

• The City Treasurer (Treasurer) did not maintain accurate accounting records. The Treasurer filed the required annual financial reports late for fiscal years 2016 and 2017 and had not filed the reports for 2018 or 2019 as of December 2, 2020.
• Without accurate financial records, the Common Council (Council) did not have accurate financial information to monitor the City’s financial condition, and does not know the City’s current financial condition.
• The Council did not adequately plan and monitor Emergency Medical Services (EMS) financial operations. As a result, the City could lose out on significant revenue.

Key Recommendations

• Maintain adequate and timely accounting records and perform monthly bank reconciliations.
• Monitor the City’s financial condition and ensure the Treasurer files timely financial reports.
• Develop and adopt policies and procedures over the EMS function.

City officials were given an opportunity to respond to our findings and recommendations within 30 days of the exit conference, but they did not respond.