HomeMy WebLinkAbout1976-1977.AuditReport.RecommendationsHOCHE, BARKLAGE AND COMPANY, INC.
A rROEE5510NAU CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
1221 pH1A..AY CAPE GIRARDEAU M133OUR1 63701
September 26, 1977
To the Honorable Mayor,
City Manager and City Council
Cape Girardeau, Missouri
Gentlemen:
TE LE PHONE
Based on our audit of the City of Cape Girardeau for the year ended
June 30, 1977, we make the following comments and recommendations.
Generally, the accounting records of the City were found to be in
'It, good condition, and the employees involved with the record keeping are
doing an excellent job and were very courteous and helpful during the
course of our audit, However, we feel that greater control can be ac-
hieved in a few areas and therefore we make the following recommendations.
Greater emphasis should be placed on correct classifications in the
D various expense accounts. Classification instructions to the department
heads and a coding review by someone in the accounting department will be
helpful in achieving correct classification. The resulting product will
allow a more meaningful comparison between what was budgeted and what
'-� 'actually occurred.
The City Council should consider approving delinquent sewer tax bill
write-offs,_... Delinquent sewer tax bills should be written off at the time
Y� they are deemed non -collectible or after the expiration of a certain
period of time (maybe 5 years). Additionally, the City Manager, or his
representative, should by written authorization approve adjustments other
_- _
than write-offs_ Approval by someone outside the sewer tax office would
enhance internal control within the sewer tax department.
tc, All amendments to the adopted. budget should be authorized by the
City Council and recorded in the minutes,
r°wLn�j�,e Monies received by the engineering and inspection department_ should
&"(/be submitted to the City Collector weekly_rather than monthly. This
Uwould allow the City to use the money as it is received and would allow
Qfor greater safekeeping (monies have accumulated to more than $8,600.00
✓IBJ before being deposited),
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HOCHE, BARKLAGE AND COMPANY, INC.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
1221 BROADWAY CAPE GIRARDEAU MISSOURI 63701
(Memo arising from 6-30-77 audit)
City Collector
/0-3-7'?
In order to facilitate next year's audit and to rationally
account for court orders which change assessed valuations, we suggest
consideration of the following system of recording court orders:
1.
Develop a pre -numbered court order ticket which includes
the following information:
(a) Signature (initials) of the person in collector's de-
partment who receives court orders,
(b) Taxpayer's name and address.
(c) Court order number and tax bill number.
(d) Net increase, decrease or no change, in valuation,
(e) Dollar amount of change
(f) Signature (initials) of the person in collector's de-
partment who posts court orders.
2.
Court orders which include changes for more than one in-
dividual should have a ticket issued for each individual.
3.
All tickets, after posting, should be attached to their
respective court order and filed by type of tax in
numerical order.
4.
Post all court orders, even those with no change - all
court orders most be accounted for.
5.
_Tie out the current and two preceding years' tax bills
through receipts at April or later, if possible,
b
6.
Maintain list which reflects all adjustments for each tax
L,
account, e.g. a list for peronal, real and merchants and
s
�'rz�;,r
manufacturers taxes. This list should be kept current at
all times.
Street tax bills as recorded in the street tax book should be
�.q�✓ reconciled
to the engineer's report and any amendums. Allocations
of charges
between the general fund and the motor fuel fund should
be verified.
You should especially verify projects involved in more
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than one
fiscal year.
_Engineers' reports, which are submitted for payment, should
U141 always be checked for math errors in extensions and footings. The
individual who verifies the math should notate it in some manner.
Reconciliation of amounts previously paid to the payment requested
and the contracted amount should also be notated and evidenced.
ovv_All purchase orders and paid invoices should be stamped paid
or physically canceled by another means. This would avoid any
possibility of duplicate payment of an invoice.
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CITY 'OFT9 ff' rll"P EAU
15 \a'7 .�,y m -R IA!
Office of the �wylppEnd..M<5 221 North Fountain Street
City Engineer Cape Girardeau, Mo. 63701
December 21, 1.977
YU40RAi'iDTJM
To: David G. Colliery City Collector
From: Cly A. Lowes, City Engineer
Subject: Deposits of Inspections Fees
This is to confirm our conversation on November 22, that the Code Inspectors
will turn in all fees collected when the amount exceeds $ 19000.00. However,
should this amount occur within the last week of the month, they will go ahead
and turn it in as a regular monthly turn—in. When the amount of S 1,000.00 is
reached early in the month, the Code Inspectors will turn it in, you or your
people will give them :: receipt for x number of dollars which they will attach
to their regular monthly turn—in, in place of the cash or checks that they would
have had during the month.
I would appreciate it, possibly next year, if you would explain to the
auditors that many of the monies billed by this department are not physically
handled by this department. In other words, inspection fees charged to
developers are billed from this department but collected directly by your
people.
If for some reason this arrangement does not work, or if it appears that
another system would be more functional, please advise.
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CITY OF CAPE GIRARDEAU, MISSOURI
AUDITORS' REPORT
REVENUE SHARING FUNDS
JUNE 30, 1977
(26 2 016 001)
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TABLE OF CONTENTS
Page
Auditors' Report on Financial Audit . . . . . . . . . . . . . . . . . . 1
Statement of Changes in Available Funds
for the Year Ended June 30, 1977 . . . . . . 0 2
Statement of Obligations Incurred
for the Year Ended June 30, 1977 . . . . . . . . . . . . . . . . 3
Summary of Data Submitted to the Bureau of the Census
for the Year Ended June 30, 1975 . . . . . . . . . . . . . . . . . . . . 4
for the Year Ended June 30, 1976 . . . . . . . . . . . . . . . 5
for the Year Ended June 30, 1977 . . . . . . o . . . . 6
Auditors' Report on Compliance . . . . . . . . . . . . . . . . . . . . . 7
0
HOCHE, BARKLAGE AND COMPANY INC
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
1221 BROADWAY CAPE GIRARDEAU MISSOURI 63701
August 22, 1977
To the Honorable Mayor and City Council
City of Cape Girardeau, Missouri
We have examined the Revenue Sharing Fund Statements of Changes
in Available Funds and Obligations Incurred for the year ended June 30,
1977, and have compared the financial data included on Bureau of Census
Form,RS-9 with audited records of the City of Cape Girardeau, Missouri,
for the years ended June 30, 1975, 1976 and 1977. Our examination was
made in accordance with generally accepted auditing standards and the
"Audit Guide and Standards for Revenue Sharing Recipients" issued by the
Office of Revenue Sharing, U. S. Department of the Treasury, and accord-
ingly,'included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
In our opinion, the Statements of Changes in Available Funds and
Obligations Incurred present fairly the revenue, expenditures, obli-
gations incurred and status of revenue sharing funds of the City of Cape
Girardeau, Missouri, for the year ended June 30, 1977, in conformity
with generally accepted accounting principles applied on a basis con-
sistent with that of the preceding year. Further, the financial data
shown in the Bureau of Census Form RS -9 for the years ended June 30,
1975, 1976 and 1977, are in agreement with audited records of the City
of Cape Girardeau, Missouri.
Certified Public Accountants
MW
TELEPHONE
14) 334-3011
j
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CITY OF CAPE GIRARDEAU, MISSOURI
REVENUE SHARING FUNDS
STATEMENT OF CHANGES IN AVAILABLE FUNDS
FOR THE YEAR ENDED JUNE 30, 1977
(26 2 016 001)
Available funds, beginning of year:
Unappropriated
Unencumbered appropriations
Total
Add revenue:
Entitlement payments
Interest
Total
Less unappropriated, end of year
Available for obligation during year
Less:
Expenditures (cash)
Encumbrances (net)
Total obligations incurred
Unencumbered balance, end of year
Unappropriated, end of year
Available funds, end of year
Per books Adjustments Adjusted
$ 200,452.00
$
1,568.00
103,552.00
-
103,552.00
$ 103,552.00
$ - $
103,552.001
634,862.00
-
634,862.00
22,317.00
1,568.002
23,885.00
$ 760,731.00
$ 1,568.00 $
762,299.00
$ 760,731.00
$ 1,568.00 $
762,299.00
$ 749,105.00
$ - $
749,105.00
(188,826.00)
-
(188,826.00)3
$ 560,279.00
$ - $
560,279.00
$ 200,452.00
$
1,568.00
$
202,020.00
$ 200,452.00
$
1,568.00
$
202,020.00
Footnote 1: The cash balance of this fund at June 30, 1976, was $299,232.00.
Encumbrances at this date amounted to $195,680.00.
Footnote 2: The City loaned $180,000.00 to the General Revenue Fund from the
Federal Revenue Shared Fund for a period of 34 days and failed to
credit the Federal Revenue Shared Fund with interest on the loan
as required. Investments by the city yield 9.35% for the period
of time the loan was outstanding.
Footnote 3: The City maintains its accounts on the cash basis. Encumbrances
have been applied to the account figures to obtain the figures
for Obligations Incurred during the period.
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CITY OF CAPE GIRARDEAU, MISSOURI
SUMMARY OF DATA SUBMITTED TO BUREAU OF THE
CENSUS FOR THE YEAR ENDED JUNE 30, 1975
(26 2 016 001)
PART I
1. Property taxes
2. Sales taxes:
(a) General sales tax
(b) Cigarette and tobacco taxes
(c) Public utilities tax
3. Licenses, permits and other taxes:
(a) Motor vehicle licenses (local)
(b) Fees retained from tax
collections by officials of
your government
(c) Other
PART II
From state:
1. General support:
(a) All other (intangible tax)
2. Streets and highways
3. All other
From other local governments
From Federal Government (directly)
Reported Audit
to census adjustments Adjusted
$ 620,499.00 $ - $ 620,499.00
1,483,692.00
- 1,483,692.00
113,149.00
- 113,149.00
395,693.00
- 395,693.00
85,756.00
- 85,756.00
776.00 - 776.00
205,618.00 - 205,618.001
44,727.00 -
44,727.00
267,334.00 -
267,334.00
77,878.00 -
77,878.002
2,255.00 -
2,255.00
790,754.00 -
790,754.003
Footnote 1: Merchants licenses (sales) $180,005.00; engineer and inspection fees
$25,110.00; dog licenses $503.00.
Footnote 2: Flood assistance $29,213.00; secondary sewage treatment plant $36,200.00;
police mobile radio reimbursement $1,166.00; police training manuals
$1,930.00; library state aid $9,369.00.
Footnote 3: Secondary sewage treatment plant and grid station $186,400.00; airport
improvement project $42,464.00; open land space for parks $19,610.00;
Federal Revenue Sharing $542,280.00.
- 4 -
4
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CITY OF CAPE GIRARDEAU, MISSOURI
SUMMARY OF DATA SUBMITTED TO BUREAU OF THE
CENSUS FOR THE YEAR ENDED JUNE 30, 1976
(26 2 016 001)
PART I
1. Property taxes
2. Sales taxes:
(a) General sales tax
(b) Cigarette and tobacco taxes
(c) Public utilities tax
3. Licenses, permits and other taxes:
(a) Motor vehicle licenses (local)
(b) Fees retained from tax
collections by officials
of your government
(c) Other
PART II
From state:
1. General support:
(a) All other (intangible tax)
2. Streets and highways
3. All other
From other local governments
From Federal Government (directly)
Reported Audit
- 31,583.00
to census adjustments
Adjusted
$ 630,308.00 $ -
$ 630,308.00
1,649,192.00 -
1,649,192.00
119,345.00 -
119,345.00
493,915.00 -
493,915.00
88,025.00 -
88,025.00
808.00 -
808.00
219,596.00 -
219,596.001
31,583.00
- 31,583.00
281,118.00
- 281,118.00
397,351.00
- 397,351.002
30,710.00
- 30,710.00
2,269,003.00
- 2,269,003.003
Footnote 1: Merchants licenses (sales) $180,998.00; engineer and inspection fees
$37,994.00; dog licenses $604.00.
Footnote 2: Secondary waste treatment plant $317,925.00; police communication equip-
ment $8,982.00; police polygraph training reimbursement $4,074.00;
library state aid $9,364.00; public service employee program reimburse-
ments $57,006.00.
Footnote 3: Federal Revenue Sharing Funds $608,269.00; open land space for parks
$69,610.00; secondary waste treatment plant $1,591,124.00.
- 5 -
IJ
CITY OF CAPE GIRARDEAU, MISSOURI
SUMMARY OF DATA SUBMITTED TO BUREAU OF THE
CENSUS FOR THE YEAR ENDED JUNE 30, 1977
(26 2 016 001)
PART I
1. Property taxes
2. Sales taxes:
(a) General sales tax
(b) Cigarette and tobacco taxes
(c) Public utilities tax
3. Licenses, permits and other taxes:
(a) Motor vehicle licenses (local)
(b) Fees retained from tax
collections by officials of
your government
(c) Other
Reported Audit
to census adjustments Adjusted
$ 665,495.00 $ - $ 665,495.00
1,838,463.00 - 1,838,463.00
124,401.00 - 124,401.00
615,625.00 - 615,625.00
90,125.00 90,125.00
1,022.00 - 1,022.00
255,743.00 - 255,743.001
PART II
From state:
1. General support:
(a) All other (intangible tax) 33,939.00 - 33,939.00
2. Streets and highways 284,297.00 - 284,297.00
3. All other 752,561.00 - 752,561.002
From other local governments 27,469.00 - 27,469.00
From Federal Government (directly) 3,966,228.00 - 3,966,228.003
Footnote 1: Merchants licenses (sales) $210,298.00; engineer and inspection fees
$43,805.00; subdivision plat fees $1,150.00; dog licenses $490.00.
Footnote 2: Secondary waste treatment plant $658,180.00; public service employee
program reimbursements $69,586.00; police training reimbursements
$14,346.00; library state aid $9,357.00; boarding state prisoners
$1,092.00.
Footnote 3: Secondary waste treatment plant $3,289,400.00; municipal airport im-
provements $16,621.00; EPA grants $5,300.00; boarding federal prisoners
$435.00; open land space for parks $19,610.00; Federal Revenue Sharing
Funds $634,862.00.
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HOCHE, BARKLAGE AND COMPANY, INC.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
1221 BROADWAY CAPE GIRARDEAU MISSOURI 63701
August 22, 1977
REPORT OF INTERNAL ACCOUNTING
CONTROLS AND COMPLIANCE MATTERS
To the Honorable Mayor and City Council
City of Cape Girardeau, Missouri
We have examined the Revenue Sharing Fund Statements of Changes
in Available Funds and Obligations Incurred for the year ended June 30,
1977, and have compared the financial data included on the Bureau of
the Census Form RS -9 with the audited records of the City of Cape
Girardeau, Missouri, for the years ended June 30, 1975, 1976 and 1977.
Our examination was made in accordance with generally accepted auditing
standards and the "Audit Guide and Standards for Revenue Sharing
Recipients" (Guide) issued by the Office of Revenue Sharing, U. S.
Department of the Treasury, and accordingly included such tests of the
accounting records and such other auditing procedures as we considered
necessary in the circumstances. As part of our examination, we made
a study of those internal accounting and administrative control pro-
cedures and compliance matters that we considered relevant to the
criteria established by the Office Of Revenue Sharing as set forth in
Section V. D. of its "Guide."
The objective of internal accounting control is to provide reason-
able, but not absolute, assurance as to the safe -guarding of assets
against loss from unauthorized use or disposition, and the reliability
of financial records for preparing financial statements and maintaining
accountability for assets. We understand that the objective of those
administrative control procedures comprehended in the Office of Revenue
Sharing's criteria is to provide similar assurance as to compliance
with its related requirements. The concept of reasonable assurance
recognizes that the cost of a system of internal control should not
exceed the benefits derived and also recognizes that the evaluation of
these factors necessarily requires estimates and judgments by manage-
ment.
- 7 -
TELEPHONE
(3 1 A) 036-301 1
C
0
There are inherent limitations that should be recognized in consider-
ing the potential effectiveness of any system of internal control. In
the performance of most control procedures, errors can result from mis-
understanding of instructions, mistakes of judgment, carelessness or
other personal factors. Control procedures whose effectiveness depends
upon segregation of duties can be circumvented by collusion. Similarly,
control procedures can be circumvented intentionally by management with
respect either to the execution and recording of transactions or with
respect to the estimates and judgments required in the preparation of
financial statements. Further, projection of any evaluation of internal
control to future periods is subject to the risk that the procedures may
become inadequate because of changes in conditions, and that the degree
of compliance with the procedures may deteriorate.
We understand that procedures in conformity with the criteria re-
ferred to in the first paragraph of this report are considered by the
Office of Revenue Sharing to be adequate for its purposes in determining
the adequacy of internal control and compliance with laws and regulations
applicable to the revenue sharing program, and that procedures that are
not in conformity therewith indicate some inadequacy for such purposes.
Based on this understanding and on our study, we believe that the City of
Cape Girardeau's procedures were adequate for the purposes of the Office
of Revenue Sharing.
This report is intended for use in connection with the Revenue
Sharing Program to which it refers and should not be used for any other
purpose.
Certified Public Accountants
:9-M