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Home My WebLink About1979-1980.AuditReport r� , - ! �� 7,. 1 ! -" z� � �� -� � ,�.� � ;� � .�� .�� g� ��,�, �``1 � CERTIFIED PUBLIC ACCOUNTANTS �� `/(�"` � � 2103 THEMIS STREET �L/�� -�.� �� .�� 6�;0� , �� August 29, 1980 � � � ROBERT J.EARLEV.C.r.A. TELEPNONE JOHN R.JANSBfiN.C.P.A. (914)334-2843 TERRY R.BHOLEV.C.P.A. GARV G.BTANLEV,C.P.A. Mr. W. G. lawley, City Manager The Honorable Mayor and City Council Cape Girardeau, Missouri 63701 Gentlemen: As a part of our examination of the financial statements of the City of Cape Girardeau, Missouri , for the year ended June 30, 1980, we reviewed and tested the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards the purpose of such evaluation is to establish a basis for reliance thereon in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements. Our review disclosed no material weaknesses in the City's system of internal accounting control , but we believe the following observations should be given consideration. ' EDP System — Segregation of Duties: Ideally, the computer operator should have no cash handling responsibilities. However, during the system break—in period just ended, the City 's computer operator has performed cash handling and re� ated accounting duties in the Collector 's office. Operational needs and staff limitations have necessitated this dual— function situation, but as the EDP system evolves, it would be highly desirable to relieve the operator of her cash handling duties. Identification of City Equipment and Moveable Properties: The City has not established a uniform pr�ocedure for tagging or marking items of small equipment. The implementation of such a procedure, to be followed by each department , could contribute significantly to the security of City property by facilitating the identification and recovery of stolen or lost property, and by providing department heads with reference codes for use in their own lists of fixed assets. It would also provide a convenient starting point should the City ever decide to establish centralized lists of equipment for accounting control , internal audit review, insurance coverage review and so forth. The definition of equipment to be so tagged and identified would be a matter ofmanagerial policy, and could be based on expected equipment life, equipment cost, likelihood of unauthorized conversion to personal use, or a combination of those factors. Identification should be achieved through the assignment of a numeric code, possibly linked with a departmental prefix, to accomodate computer application. .� , � � Mr. W. G. Lawley, City Manager Page 2 The Honorable Mayor and City Council R Federai Shared Revenue Funds: Our examinatirn disclosed no material weaknesses in the internal accounting control over receipt and disbursement of federal revenue sharing monies. Library Funds: Our examination disclosed no material weaknesses in the library's system of internal accounting control . ;�;�::;:�::�:� It has been our pleasure to again serve the City of Cape Girardeau as independent auditors. We extend our thanks to the City Collector and the employees of the City whose courteous assistance so greatly faciliated our examination. If we may be of further assistance during the coming year , or if you have questions concerning matters contained in this letter of any aspect ot our audit , we wiil be pleased to discuss them with you at your convenience. Very truly yours, ROBERT J. EARLEY & COMPANY � �. �-�� %� -e rry'��C. D e c k Audit Manager TLD:ab . :� .� �� .�m�� CERTIFIED PUBLIC ACCOUNTANTS 2103 THEMIS STREET -�.� �-�"�.��, ��,�� 6'�'70� August 29, 1980 ROBEfiT J.EARLEV,C.P.A. TELEPHONE JOMN R.JAN58EN,C.P.A. (314)394•2645 TENRY R.BlOLEY,C.P.A. GARY G.BTANLEY,C.P.A. Mr. W. G. Lawley, City Manager The Honorable Mayor and City Counci � Cape Girardeau, Missouri 63701 Gentlemen: As a part of our examination of the financial statements of the City of Cape Girardeau, Missouri , for the year ended June 30, 1980, we reviewed and tested the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards the purpose of such evaluation is to establish a basis for reliance thereon in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements. Our review disclosed no material weaknesses in the City 's system of internal accounting control , but we believe the following observations should be given consideration. ' EDP System — Segregation of Duties: Ideally, the computer operator should have no cash handling responsibilities. However, during the system break—in period just ended, the City's computer operator has performed cash handling and related accounting duties in the Collector 's office. Operational needs and staff limitations have necessitated this dual— function situation, but as the EDP system evolves, it would be highly desirable to relieve the operator of her cash handling duties. - Identification of City Equipment and Moveable Properties: The City has not established a uniform procedure for tagging or marking items of small equipment . The implementation of such a procedure, to be followed by each department , could contribute significantly to the security of City property by facilitating the identification and recovery of stolen or lost property, and by providing department heads with reference codes for use in their own lists of fixed assets. It would also provide a convenient starting point should the City ever decide to establish centralized lists of equipment for accounting control , internal audit review, insurance coverage review and so forth. The definition of equipment to be so tagged and identified would be a matter ofmanagerial policy, and could be based on expected equipment life, equipment cost, likelihood of unauthorized conversion to personal use, or a combination of tho5e factors. Identification should be achieved through the assignment of a numeric code, passibly linked with a departmental prefix, to accomodate computer application. ,. d .. Mr. W. G. Lawley, City Manager Page 2 The Honorable Mayor and City Councii Federal Shared Revenue Funds: Our examinatirn disclosed no material weaknesses in the internal accounting control over receipt and disbursement of federal revenue sharing monies. Library Funds: Our examination disclosed no material weaknesses in the library's system of internal accounting control . ::ic:;::;c;c:: It has been our pleasure to again serve the City of Cape Girardeau as independent auditors. We extend our thanks to the City Collector and the employees of the City whose courteous assistance so greatly faciliated our examination. If we may be of further assistance during the coming year, or if you have questions concerning matters contained in this letter of any aspect of our audit, we will be pleased to discuss them with you at your convenience. Very truly yours, ROBERT J. EARLEY & COMPANY . � � � � � � v � �-e rry_C �c k Audit Manager TLD:ab A _ �'"� �� .�� & �,�� CERTIFIED PUBLIC ACCOUNTANT� 2103 TMEMIS STREET �.a�e �.e i�z��,�,a�c, v��o�r� 6'�1'J01 ROBERT J.EARLlY,C.r.A. A U g U S t 29, I 980 TELEPNONE JOHN fi.JANEB6N.C.P.A. (914)3,4-2848 TERRY R.BL6L[V,C.P.A. GARV Q.BTANLBV.C.r.A. Mr. W. G. Lawley, City Manager The Honorable Mayor and City Council Cape Girardeau, Missouri 63701 Gentlemen: As a part of our examination of the financial statements of the City of Cape Girardeau, Missouri , for the year ended June 30, 1980, we reviewed and tested the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generaliy accepted auditing standards. Under these standards the purpose of such evaluation is to establish a basis for reliance thereon in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements. Our review disclosed no material weaknesses in the City's system of internat accounting control , but we believe the following observations should be given consideration. • EDP System - Segregation of Duties: Ideally, the computer operator should have no cash handling responsibilities. However, during the system break-in period just ended, the City's computer operator has performed cash handling and related accounting duties in the Collector 's office. Operational needs and staff limitations have necessitated this dual- function situation, but as the EDP system evolves, it would be highly desirable to relieve the operator of her cash handling duties. Identification of City Equipment and Moveable Properties; The City has not established a uniform procedure for tagging or marking items of small equipment. The implementation of such a procedure, to be followed by each department, could contribute significantly to the security of City property by facilitating the identification and recovery of stolen or lost properiy, and by providing department heads with reference codes for use in their awn lists of fixed assets. It would also provide a convenient starting point should the City ever decide to establl5h centralized lists of equipment for aceounting control , internal audit review, insurance coverage review and so forth, The definition of equipment to be so tagged and identified would be a matter ofmanagerial policy, and could be based on expected equipment life, equipment cost, likelihood of unauthorized conversion to personal use, or a combination of those factors. Identification should be achieved through the assignment of a numeric code, possibly linked with a departmental prefix, to accomodate computer application. . �„ Mr. W. G. Lawley, City Manager Page 2 The Honorable Mayor and City Council Federal Shared Revenue Funds: Our examinatirn disclosed no material weaknesses in the internai accounting control over receipt and disbursement of federal revenue sharing monies. Library Funds: Our examination disclosed no material weaknesses in the library's system of internal accounting control . ��3�;;;�;�;f�� It has been our pleasure to again serve the City of Cape Girardeau as independent auditors. We extend our thanks to the City Collector and the employees of the City whose courteous assistance so greatly faciliated our examination. If we may be ot further assistance during the coming year, or if you have questions concerning matters contained in this letter of any aspect of our audit, we will be pieased to discuss them with you at your convenience. Very truly yours, ROBERT J. EARLEY & COMPANY � �.-� ,�. �� rry�-1.-D e c k Audit Manager TLD:ab « . � . �� .�� & -�,��,�� CERTIFIED PUBLIC ACCOUNTANTS 2103 THEMIS STREET �.�ce �.r�a��.a.�, ��ou�xc� 6'J"JO� ROBERTJ.EARLEY,C.RA. AUgUSt 27� I9SO JOHN R JAN6eBN.C.P.A. TELEPHONE TERRY R.BSOIEY,C.RA. (J14)�94•2843 GARY C�.STANLBY,G.P,A, Mr. W. G. Lawiey, City Manager The Honorable Mayor and City Council Cape Girardeau, Missouri 63701 Gentlemen: As a part of our examination of the financial statements of the City of Cape Girardeau, Missouri , for the year ended June 30, 1980, we reviewed and tested the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards the purpose of such evaluation is to establish a basis for reliance thereon in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements. Our review disclosed no material weaknesses in the City's system of internal accounting control , but we believe the following observations should be given consideration. � EDP System - Segregation of Duties: Ideally, the computer operator should have no cash handling responsibilities. However, during the system break-in period just ended, the City's computer operator has performed cash handling and related accounting duties in the Collector 's office. Operational needs and staff limitations have necessitated this dual- function situation, but as the EDP system evolves, it would be highly desirable to relieve the operator of her cash handling duties. Identification of City Equipment and Moveable Properties: The City has not established a uniform procedure for tagging or marking items of small equipment. The implementation of such a procedure, to be followed by each department, could contribute significantly to the security of City. property by facilitating the identification and recovery of stolen or lost property, and by providing department heads with reference codes for use in their own lists of fixed assets. It would also provide a convenient starting point should the City ever decide to establish centralized lists of equipment for accounting control , internal audit review, insurance coverage review and so forth. The definition of equipment to be so tagged and identified would be a matter ofmanagerial policy, and could be based on expected equipment life, equipment cost, likelihood of unauthorized conversion to personal use, or a combination of those factors. Identification should be achieved through the assignment of a numeric code, possibly linked with a departmental prefix, to accomodate computer application. Mr. W. G, Lawley, City Manager Page 2 The Honorable Mayor and City Council s Federal Shared Revenue Funds: Our examinatirn disclosed no material weaknesses in the internal accounting control over receipt and disbursement of federal revenue sharing monies. Library Funds: Our examination disclosed no material weaknesses in the library's system of internal accounting control . ::;F;;::3s�r;: It has been our pleasure to again serve the City of Cape Girardeau as independent auditors. We extend our thanks to the City Collector and the employees of the City whose courteous assistance so greatly faciliated our examination. If we may be of further assistance during the coming year, or if you have questions concerning matters contained in this letter of any aspect of our audit , we will be pleased to discuss them with you at your convenience. Very truly yours, ROBERT J. EARLEY & COMPANY . � �'- �-�� -erry-L.lDeck Audit Manager TLD:ab . : ,, �%��P/J�l. � �,CIi7��t� CX; �,GL7�'�LGi�7/� �i CERTIFIED PUBLIC ACCOUNTANT$ 2103 THEMIS STREET -�.,�e ��a��, ��ur�ou�� 6�70� August 29, 1980 ROBERT J.EARLEY,C.P.A. TELEPHONE JOHN R.JAN86EN.G.P.A. (J141 334-2646 TERRY R.B60LEY,C.P.A. GARV G.BTANLEV,C.P.A. Mr. W. G. Lawley, City Manager The Honorable Mayor and City Council Cape Girardeau, Missouri 63701 Gentlemen: As a part of our examination of the financial statements of the City of Cape Girardeau, Missouri , for the year ended June 30, 1980, we reviewed and tested the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards the purpose of such evaluation is to establish a basis for reliance thereon in determining the nature, timing, and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements. Our review disclosed no material weaknesses in the City's �ystem of internal accounting control , but we believe the following observations should be given consideration. • EDP System — Segregation of Duties: Ideally, the computer operator should have no cash handling responsibilities. However, during the system break—in period just ended, the City's computer operator has performed cash handling and related accounting duties in the Collector 's office. Operational needs and staff limitations have necessitated this dual— function situation, but as the EDP system evolves, it would be highly desirable to relieve the operator of her cash handling duties. Identification of City Equipment and Moveable Properties: The Clty has not established a uniform procedure for tagging or marking items of small equipment. The implementation of such a procedure, to be followed by each department , could contribute significantly to the security of City property by facilitating the identification and recovery of stolen or lost property, and by providing department heads with reference codes for use in their own lists of fixed assets. It would also provide a convenient starting point should the City ever decide to establish centralized lists of equipment for �ccounting control , internal audit review, insurance coverage review and so forth. The definition of equipment to be so tagged and identified would be a matter ofmanagerial policy, and could be based on expected equipment life, equipment cost, likelihood of unauthorized conversion to personal use, or a combination of those factors. Identitication should be achieved through the assignment of a numeric code, possibly linked with a departmental prefix, to accomodate computer application. s .�. t i 1 Mr. W. 6. Lawley, City Manager Page 2 The Honorable Mayor and City Council Federal Shared Revenue Funds: Our examinatirn disclosed no material weaknesses in the internal accounting control over receipt and disbursement of federal revenue sharing monies. Library Funds: Our examination disclosed no material weaknesses in the library's system of internal accounting control . ;�3�;:;:;:;�;; It has been our pleasure to again serve the City of Cape Girardeau as independent auditors. We extend our thanks to the City Cotlector and the employees of the City whose courteous assistance so greatly faciliated our examination. If we may be of further assistance during the coming year, or if you have questions concerning matters contained in this letter of any aspect of our audit, we will be pleased to discuss them with you at your convenience. Very truly yours, ROBERT J. EARLEY & COMPANY �"�_ �. `�.-�Q-� r-r'��L.--Deck Audit Manager TLD:ab