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HomeMy WebLinkAbout1982-775-R 1 RESOLUTION # "1'15 r A RESOLUTION ATTESTING TO THE ACTIONS BEING TAKEN TO IMPLEMENT THE AUDIT RECOMMENDATIONS MADE BY BROWN, SMYTHE AND COMPANY IN THEIR 1980 AUDIT REPORT WHEREAS, the Brown, Smythe and company prepared the City of Batesvilles 1980 audit report and submitted the same to the legislative joint auditing com- mittee; and, WHEREAS, Brown, Smythe and company in their audit tort made certain audit recommendations and suggested certain corrective aons to be taken by the I city; and, f WHEREAS, the legislative joint auditing committee ha asked that the Batesville City Council attest to the actions being taken to as ist in the implementation, of each of the said audit recommendations; therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAiTESVILLE, ARKANSAS AS FOLLOWS: (1) That the Brown, Smythe and Company prepared thelCity of Batesvilles 1980 audit report and included in said report a list of audit recommendations and suggested corrective actions; that attached hereto, marked "ERHIBIT All, and made a part hereof as though set out herein word for word, paragraph for paragraph, is a copy of said audit recommendations and suggestedecorrective actions. i (2) That the City Council of the City of Batesvill Arkansas hereby attests that the suggested corrective actions as set out in "EXHIBIT All are now being complied with and that each audit recommencation is now being properly handled at this time according to specification. ID ADOPTED this_-Jr day ofE , 1982. APPROVED: A IM SHI ELLJ MAYOR ATTEST: w LARRY WILLMMS, CITY CLERK II I 9 s 1 � AUDIT CORRECTIVE RECOMMENDATION ACTION CASH (1) ALL PERSONS WHO ARE INVOLVED IN RECORD KEEPING OR (1) CHECK SIGNING AUTHORITY AND PERSONS HANDLING CASH ARE NOW CUSTODY OF ASSETS ARE NOT COVERED BY SURETY BONDS. ADEQUATELY COVERED BY SURETY BONDS . THE FIRE CHIEF, VICE-MAYOR, AND PARKS SUPERVISOR HAVE CHECK SIGNING AUTHORITY OR HANDLE CASH AND MAIL RECEIPTS ARE BOTH OPENED AND RECORDED IN THE (2) DUE TO THE LIMITED NUMBER OF CITY PERSONNEL, IT IS DIFFICULT BOOKS OF RECORD BY THE CITY CLERK. A BETTER SEGRE- TO ACCOMPLISH A BETTER SEGREGATION OF DUTIES . HOWEVER, WHEN- GATION OF DUTIES WOULD BE ACCOMPLISHED IF THE MAIL EVER POSSIBLE, THE MAYOR WITNESSES THE OPENING OF THE MAIL WERE OPENED AND A LISTING OF RECEIPTS PREPARED AND LISTING OF RECEIPTS. BY SOMEONE OTHER THAN THE BOOKKEEPER. (3) THE KEY TO THE SAFE DEPOSIT BOX IS KEPT BY THE CITY (3) THE MAYOR NOti•T KEEPS THE SAFE DEPOSIT BOX KEY. CLERK. A BETTER SEGREGATION OF DUTIES WOULD BE TO REMOVE CUSTODY OF THE KEY TO THE LOCK BOX FROM THE PERSON WHO POSTS TRANSACTIONS TO THE BOOKS OF RECORD. (4) A CHECK PROTECTOR SHOULD BE USED TO MINIMIZE (4) A CHECK PROTECTOR IS NOW IN USE. THE POSSIBILITY OF ERRORS OR CHECK FORGERIES . (5) INTERFUND TRANSFERS WERE OCCASIONALLY MADE BY (5) NO INTERFUND TRANSFERS ARE MADE NOW. WHEN REDEEMED, CERTI- 0% DEPOSITING CERTIFICATES OF DEPOSIT DIRECTLY INTO FICATES ARE DEPOSITED INTO THE FUND IN WHICH THEY ORIGINATED. FUNDS . A BETTER ACCOUNTABILITY WOULD RESULT IF THE CERTIFICATES WERE FIRST DEPOSITED INTO THE FUND IN WHICH THEY ORIGINATED AND THEN WERE TRANSFERRED TO OTHER FUNDS BY CHECK. (6) CASH REGISTER TAPES AT THE GOLF COURSE ARE NOT (6) CASH REGISTER TAPES ARE NOW FORWARDED TO THE CITY CLERK. FORWARDED TO THE CITY CLERK. THESE TAPES SHOULD BE ATTACHED TO THE DAILY SUMMARY SHEETS AND DELIVERED TO THE CITY CLERK. (7) PETTY CASH TICKETS ARE NOT MAINTAINED. PETTY (7) PETTY CASH IS NODI RECONCILED WHEN REIMBURSED AND TICKETS CASH SHOULD BE RECONCILED MONTHLY OR WHEN RE- ARE ATTACHED. IMBURSED BY GENERAL FUNDS. TICKETS SHOULD BE COLLECTED AND ATTACHED TO THESE RECONCILIATIONS . et FIXED ASSETS (1) THE CITY DOES NOT MAINTAIN A DETAILED FIXED (1) EACH DEPARTMENT HEAD IS NOW IN THE PROCESS OF TAKING A ASSET LEDGER. A DETAILED FIXED ASSET LEDGER PHYSICAL INVENTORY OF EQUIPMENT. A FIXED ASSET LEDGER SHOULD BE MAINTAINED AND EQUIPMENT SHOULD BE WILL BE ESTABLISHED FROM THIS INVENTORY. MARKED SO AS TO IDENTIFY IT WITH ENTRIES IN THE LEDGER. A PHYSICAL COUNT OF EQUIPMENT SHOULD BE CONDUCTED ANNUALLY AND RECONCILED WITH THE LEDGER. GLNERAL ACCOUNTING POLICIES (1) THE CITY MAINTAINS ITS BOOKS OF RECORD ON THE (1) DUE TO THE NATURE OF THE CITIES RECORDS AND FOR THE SAKE CASH BASIS OF ACCOUNTING. THIS METHOD IS NOT OF CONSISTENCY OF PRESENTATION WITH PRIOR YEARS , THE CITY IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING HAS ELECTED TO CONTI14UE USE OF THE CASH BASIS OF ACCOUNTING. PRINCIPLES. IT IS OUR RECOMMENDATION THAT FUTURE ACCOUNTING RECORDS AND FINANCIAL STATE- MENTS BE PREPARED USING THE ACCRUAL BASIS OF ACCOUNTING. (2) A GENERAL LEDGER IS NOT MAINTAINED FOR THE (2) BOTH DETAILED SUBSIDIARY LEDGERS AND GENERAL LEDGERS ARE POLICEMAN'S PENSION FUND, THE FIREMEN' S PENSION MAINTAINED AND RECONCILED ANNUALLY. FUND, OR THE MUNICIPAL COURT RETIREMENT FUND. IN ORDER TO IMPROVE THE CITY' S ACCOUNTING SYSTEM WE RECOMMEND THAT A GENERAL LEDGER BE MAINTAINED FOR EACH OF THESE FUNDS . IN ADDITION, A DETAILED SUBSIDIARY LEDGER SHOULD BE MAINTAINED SHOWING EACH PARTICIPANT' S ACCOUNT BALANCE . THIS SUB- SIDIARY LEDGER SHOULD BE RECONCILED ANNUALLY TO THE TOTAL CASH AVAILABLE IN EACH RETIREMENT PLAN AS SHOWN IN THE GENERAL LEDGER. (3) CITY BUDGETS SHOULD BE PREPARED IN A MANNER TO (3) BUDGETS ARE NOW PREPARED IN A MORE COMPREHENSIVE MANNER AS REFLECT ALL PROJECTED RECEIPTS AND EXPENDITURES , RECOMMENDED. INCLUDING REVENUE SHARING RECEIPTS AND CONSTRUCTION EXPENDITURES . ALSO, BUDGETS SHOULD BE PREPARED TO MORE CLOSELY APPROXIMATE THE ACCOUNTING LEDPERS AND SYSTEMS IN USE. MUNICIPAL COURT REVIEW (A) A BANK RECONCILIATION IS PREPARED MONTHLY, AND (A) THE MAYOR IS NOW FURNISHED WITH A COPY OF THE BANK A COPY IS FURNISHED TO THE PRESIDING JUDGE, RECONCILIATION. HOWEVER, A COPY IS NOT FURNISHED TO THE MAYOR AS REQUIRED BY THE ACT. (B) TIME PAYMENTS ARE RECEIVED BY BOTH THE POLICE (B) THE COURT CLERK MILL DISCONTINUE RECEIVING TIME PAYMENTS . DEPARTMENT AND COURT CLERK INSTEAD OF BY THE POLICE DEPARTMENT ONLY AS SPECIFIED BY THE ACT. THE BANK RECONCILIATION AS PREPARED DOES SEGREGATE (C) THE COURT CLERK AND THE INDEPENDENT ACCOUNTANTS (BROWN, THE TOTAL AMOUNT OF MONIES RECEIVED BUT NOT YET SMYTHE & CO. ) ARE NOW IN THE PROCESS OF RECONCILING THE ADJUDICATED FROM OTHER MONIES IN THE CHECKING AMOUNT OF M014IES RECEIVED BUT NOT YET ADJUDICATED WITH ACCOUNT, HOWEVER INDIVIDUAL RECEIPTS ARE NOT INDIVIDUAL RECEIPTS . LISTED AND RECONCILED WITH THIS TOTAL. POLICE DEPARTMENT (A) A BANK RECONCILIATION IS PREPARED MONTHLY, HOWEVER (A) THE POLICE DEPARTMENT PERSONNEL AND THE INDEPENDENT THE BALANCE REMAINING IS NOT RECONCILED WITH RECEIPTS ACCOUNTANTS ARE NOW IN THE PROCESS OF RECONCILING THE BANK ISSUED BUT NOT YET ENTERED ON THE ARREST REPORT BALANCE WITH RECEIPTS ISSUED. (CALL SHEET) . (B) THE "FINE AND COSTS" COLUMN OF THE ARREST REPORT (B) THE COURT IS NOW PAID THE TOTAL AMOUNT AS ENTERED IN THE (CALL SHEET) SHOULD BE TOTALED AND A CHECK FOR THAT FINE AND COSTS COLUMN. AMOUNT DRAWN PAYABLE TO THE COURT FUND. PRESENTLY THE MONEY COLLECTED FOR CASES WHICH ARE CONTINUED IS NOT REMITTED TO THE COURT CLERK UNTIL THE CAST IS HEARD.