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HomeMy WebLinkAbout1974-1975.AuditReport.RecommendationsHOCHE, BARKLAGE AND COMPANY, INC. SSIONAL CORPORATION CERTIFIED E PUBLIC ACCOUNTANTS CAPE GIRARDEAU, MISSOURI 63001 DONALD Z aARNAGE. CPA TELEPHONE NORMAN L u �P.w October 13, 1975 To the Honorable Mayor, City Manager and City Council City of Cape Girardeau, Missouri Gentlemen: In connection with our audit of the City of Cape Girardeau, Missouri, for the fiscal year ended June 30, 1975, with report dated October 9, 1975, we submit the following comments and recommendations. Generally, the accounting records of the City were found to be in 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 (1) greater control should be established in the waste disposal collection system and (2) better controls can be achieved in a few other areas. Therefore, our recommendations are as follows: 1. In the waste disposal collection system, the total billing printout from the computer service must be retained. The collections should be reconciled with the total billings on a quarterly basis. 2. Outstanding sewage tax bills and the amounts carried on the books should be reconciled (as to year billed) at least twice a year and a record should be kept of the reconciliation. 3. A payment record should be maintained with each contract file in the City Clerk's office. By keeping a payment record with the contract, the current status of any contract can be quickly analysed and possible duplicate payment can be prevented. Also, when a contract has been completed, it should be filed in a completed contract classification section. 4. Pre -numbered receipt tickets should be utilized for police bond collections and the bond bank account should be reconciled monthly with bonds outstanding. A card file may be useful in reconciling this account. Page No. 2 5. Greater emphasis should be placed on correct classification in the various expense accounts. A general review of classification by someone in the accounting department would be helpful in achieving correct classification. 6. The pledged securities of the depository bank should be increased to cover the total funds of the City. The total funds of the City, excluding the custodial accounts, exceeded the pledged amount by $103,650.14 at June 30, 1975. If there are any questions on the foregoing comments and recommen- dations or on the audit report, or if we can be of service to the City in any other way, please do not hesitate to call on us. Sincerely, HOCHE, BARKLAGE AND COMPANY, INC. Floyd C. Weber, Vice -President December 1, 1975 MEMORANDUM TO: City Clerk FROM: City Manager SUBJECT: AUDITOR'S RECOMMENDATIONS Please refer to Item 3 of the attached letter from the City Auditor recommending a payment record to be maintained with each contract file in your office. I believe you have already started this procedure. This memo merely documents a request for compliance with this recommendation. WGL/llm