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Home My WebLink About1977-1978.AuditReport.SharedFunds � -------- - __ ___ _� � � � � � � : � � � CITY OF CAPE GIRARDEAU, MISSOURI � � i I ' � II I � I� � j I'� ii � �I I' ,� I �'I � I il I�'�, � � I, AUDITORS' REPORT � REVENUE SHARING FUNDS �I�' JUNE 30, 1978 I I _ � li (26 2 016 001) �i il ��,, t1 �I� il I�� I� � � i I r# � _ . � ----- - - —_ ____ _ � � � � � I � I i i� � �I TABLE OF CONTENTS ' i �j � i Page �� i; i� � Auditors' Report on Financial Audit . . . . . . . . . . . . . . . . . . . 1 ;� Statement of Changes in Available Funds �� for the Year Ended June 30, 1978 . . . . . . . . . . . . . . . . . . . 2 Statement of Obligations Incurred for the Year Ended June 30, 1978 . . . . . . . . . . . . . . . . . . . 3 � �I I; Auditors' Report on Compliance . . . . . . . . . . . . . . . . . . . . . 4 � II i ��, �, � ��i �! i ;�I �� ! ,, , � �, il �� , , � � � �� ( � ' 'i - --- - ---- --___ �r- - ---- --------- -- - -- �,; KRAFT, MILES & TATUM FORMERLY � i' HOCHE, BARKLAGE AND COMPANY, INC. � A PROFESSIONAL CORPORATION TELEVNOkE � li � CERTIFIED PUBLIC ACCOUNTANTS �3�41330-30/I Ii 1221 BROADWAY CAPE GIRARDEAU MISSOURI 63701 � � ��'� September 27, 1978 � I � i�i � To the Honorable Mayor and City Council � Cit of Ca e Girardeau Missouri Y P � � ' We have examined the Revenue Sharing Fund Statements of Changes ; in Available Funds and Obligations Incurred for the year ended June 30, � ', 1978, of the City of Cape Girardeau, Missouri. 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. � Com arison of the fina.ncial data which is to be included on the P Bureau of Census Form RS-9 for the year ended June 30, 1978, was not �" "' possible as the forms were not availaUle to the City at the audit date. �' All comparisons of previous RS-9 forms have been included in prior audit reports. � '' In our opinion, the Statements of Changes in Available Funds and Obligations Incurred present fairly the revenue, expenditures, obli- � ',�I', gations incurred and status of revenue sharing funds of the City of Cape , Girardeau, Missouri, for the year ended June 30, 1978, in conformity with generally accepted accounting principles applied on a basis con- � i' sistent with that of the preceding year. � ��c y�J� /�� e<G�� ' Certified Public Accountants � ' � li I � II;' - 1 - I! �; � �--- ----- — '1 ---------------- -----_. � CITY OF CAPE GIRARDEAU I , MIS50URI � REVENUE SHARING FUNDS � STATEMENT OF CHANGES IN AVAILABLE FUNDS FOR THE YEAR ENDED JUNE 30, 1978 � (26 2 016 001) , � Per books � and audit , Available funds, beginning o� year: � Una.ppropriated $ � Unencumbered appropriations 202,020.00 Total $ 202,020.001 �' Add revenue: � Entitlement payments 652,300°00 Interest 33,585.00 Total $ 887,905.00 ' ' Less unappropriated, end of year _ Available for obligation during year $ 887,905,00 � ' Less: ( Expenditures (cash) 492,748.002 � Encumbrances (net) 20,630,00 I Total obligations incurred $ 513,378.00 , I Unencumbered balance, end of year $ 374,527.00 Unappropriated, end of year _ � � $ 374,527.003 I � �I Footnote 1: The City adjusted the available funds to agree with the audited ` figures at June 30, 1977. The adjusted cash balance of this , fund at June 30, 1977, was $208,874.00. Encumbrances at this � date amounted to $6,854.00. i { ( Footnote 2: Expenditures of $28,490.00 appropriated from Revenue Sharing Funds for park development were charged to the General Fund � when paid out. This amount has been charged to the Revenue Sharing Fund at June 30, 1978. � I I Footnote 3: The City maintains its accounts on the cash basis. Encumbrances Ihave been applied to the account figures to obtain the figures ; for Obligations Incurred during the period. , - 2 - � --�— - _.____- ---- ------- - ---� i � , 00 0 0000 0 0 00 0 0000 0 0 ro . . . . . . . . . v i. o � ch � rn �n r+ oo '� +.� O� �O trl O O� 1� �t N 1� � V� 1� 1� ►�l 01 ra Cr1 C�l 00 Ch I � � w n n w n w w 'L7 �t u'1 �' � c'7 t� �O �-1 � d' rl � rl rr (� U'1 � V?� {/)- {/} {/} {/} i y �i � �i� � � � � I � � t 1 1 1 I 1 I 1 1 .� �'�.II � I d � o'' ' �.. � � � � il � � I I t/� t/� tn- t/� t/� N 4�1 � a �'i I o0 0 0000 0 0 � � � . . v . . . . . . i � N b 0 1� O 1� M �' Q1 �!'1 ra 00 (� � .r'+ V1 O� �O t�1 O Q1 I� �' N 1� .C: d0 I � �!� � I� I� trl O� r1 c'� c'7 00 M I� w w w w n � � w ((� .� ,� tlT � 01 � 0 00 G1 �y' CV C'7 Q7 �1 i 01 .0 w �' �ll �' C+'� I� � e-1 U � �I�� i � �+ � r1 ri r1 r� C� lll � "d !�i I O� V?� {/)- {l?� {!l� S/} �-1 �A .0 O '. � H o0 .a �! 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RS •r1 � 7-� F+ � � •� U I II � � �', a�i � o � �u .� a' � `� c�o � a� � .0 cu •�+ � � a � c� �, � v .0 bn x 0 i I li � .0 v� b �+ •o c� .0 u �n •,� .,� H � ;I il, •� � •� � a� � .0 a�� o a r-+ � � �° � o av � os� u o �' � ,� � o .�u� � � a�i � �' � a � ,-i a�.� � II � �+ � u � o u cv � cn cv o '� I I •rl o cv f� .0 ,-� �+ •ri v •r� �..� .0 a..i v-I $ c� O Rf •�-i .-� 7-i +� O O � ;I I RS � � � E-� +� 7 � U � H H i � W fs+ �L�,W � P4 � � ; a �s � i o c� � 'j � ;� - 3 - i { � �i ' - -- ------------- ---- -- ----- --- � -- ----- _ _ �— --_ __ - - ------ _ KRAFT, MILES & TATUM FORMERLY � �' HOCHE BARKLAGE AND , COMPANY, INC. I� A PROFESSIONAL CORPORATION TELEPHONE � I j � (314)334-301 1 �I �� CERTIFIED PUBLIC ACCOUNTANTS ii 1221 BROADWAY CAPE GIRARDEAU MISSOURI 63701 � I I ii ��i September 27, 1978 � � '' I'� � II, 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, � ', 1978, of the City of Cape Girardeau, Missourio Our examination was ma.de 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 examina.tion, we made a study of those internal accounting � I, and administrative control procedures 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 ma.intaining ' accountability for assets. We understand that the objective of those r ' 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 � II�� exceed the benefits derived and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by manage- ` , ment. �� ! � � i; - 4 - �; I --- -- � __ -- — _ � 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 Gizardeau's procedures were adequate for the purposes of the -0ffice of Revenue Sharing except for the conditions described below which we ; believe would not be in conformity with the criteria referred to above. I1) The City did not publish in any newspaper of general circulation the availability of the Revenue Sharing Use Report. I ;, 2) The public hearing notice of the proposed use of Revenue Sharing � i Funds was published approxima.tely eight days late. � 3) The notice of the availability of the Summary Budget was published approximately sixty days late. � 4) The City does not maintain any property records on properties urchased with Revenue Sharin Funds P g • � City officials have assured us that they will meet the publications of the various reports and hearings as required and that they will develop the required equipment records. 1 II � 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 I purpose. �j I !, �%�� r►�.�� I ; Certified Public Accountants L � � - 5 - I — _--__— -- -,- - _