08-28-1995 Council Packet - Laserfiche WebLink

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I I I I I I I I I I I I AccoiwiNG AND R eporting C omments Follow-up on "Study and R ecommendation 's of Accounting R esponsibilities and Procedures ” Upon the completion of the 1993 audit, the Council requested that wc further study certain acc«)unting responsibilities and priKcdures of the City. The .study and resulting report focussed specifically on the segregation of duties involving; General cash receipts Golf course receipts General check disbursements Payroll Cross training Throughout the past year and during the course of the 1994 audit, we ob.ser\ ed changes and mtxlifications of responsibilities and prixedures. The City has taken an active appr<iach u* improving .segregation td duties and its internal controls. As a result, *e have removed reference to a "lack of segregation of duties" in our 1994 repons on internal controls. It must be undersnwxl that segregation of duties and the other aspects of internal controls can never be absolute or perfect, and should umtinually be reviewed for improvements or tine tuning. General Purchasing Police The City finance staff has developed a proposed purchasing policy for our review. This policy has been under design since our study a year ago. The policy appears to have a simple and logical structure of documentation and approvals, while providing for a cenain level of practicality for small and/or recurring purchases You may find some initial resistance to using purchase order requisition forms to generate purchase orders, but this is the preferred method. It is al.so good to require budget item information so that depanment heads and the finance department can better manage and control the budget. We suggest that you implement the purchasing policy as it is proposed. Monitor the effectiveness and efficiency of the system and modify after a trial period, if nece.s.sary. C omputer Svste.m C onversion The City is currently undergoing a major hardware and software computer conversion affecting all of its major data processing systems. Previously, the City used a computer .service bureau. A project of this magnitude u.sually places additional workkiad on your staff and there are usual'y questions and concerns over procedures and controls that arise. Please let us know if we can be of any assistance during this process. -11-