Minutes 07/12/2016 - Laserfiche WebLink

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July 12, 2016  Analysis was performed on financial records for areas including purchasing, accounts payable, payroll and overtime, travel, credit cards, invoices, and other selected transactions. Discussion:  The report concludes that the city has established an efficient internal control system to manage the various areas reviewed.  There were no findings of transactions that were improperly made however the report did identify some areas that documentation and processes could be improved.  The city spearheaded by the Finance department has made or is in the process of making the identified improvements. Financial Impact:  While no organization, even with a strong internal control system, is immune to mistakes or fraudulent activity, strengthening internal controls decreases the likelihood of errors. Recommended Action:  Continue actions to improve documentation of processes and make recommended changes to identified procedures. Vision Principle: Efficient Service Delivery. Next Steps Following Council Action:  No City Council action is needed. Motion by Dr. Edmonds, and seconded by Ms. Psimas, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION ACCEPTING THE TURNOVER REVIEW DATED MAY 26, 2016 PERFORMED BY THE FIRM OF CLIFTON LARSON ALLEN, LLP AND COVERING THE PERIOD FROM JULY 1, 2015 THROUGH AUGUST 31, 2015. WHEREAS, it is sound financial practice when there are changes in upper management positions to conduct a turnover review using forensic auditing techniques; and WHEREAS, the City’s external audit for FY 2015 analyzed the period from July 1, 2014 through June 30, 2015; and WHEREAS, to supplement the City’s external audit for FY 2015, City Council requested that the City Manager contract for a turnover review covering the period from July 1, 2015 through August 31, 2015; and WHEREAS, a Request for Proposals was issued and the audit firm of CliftonLarsonAllen, LLP (“Clifton”) was selected to conduct the review; and WHEREAS, Clifton was provided two years of data to compare and analyze for the purpose of establishing a thorough review program; and WHEREAS, Clifton analyzed financial records for areas including purchasing, accounts payable, payroll and overtime, travel, credit cards, invoices, and other transactions; and WHEREAS, Clifton delivered to the City a completed Turnover Review dated May 26, 2016 and covering the period from July 1, 2015 through August 31, 2015; and WHEREAS, the Turnover Review concluded that the City has established an efficient internal control system to manage the various areas reviewed and did not make any findings of improper transactions; and WHEREAS, the Turnover Review identified some areas where documentation and processes could be improved, and City staff has made or is in the process of making the identified improvements; and