Laserfiche WebLink
<br />10. Unearned/Unavailable Revenue and Accruals <br />Currently the Finance Director prepares these work papers. Determine the feasibility of <br />training the Accounting Analyst on preparing them and only have the Finance Director <br />review them. <br /> <br />11. Net Position and Fund Balances <br />The auditor is comfortable with the City process. <br /> <br />12. Grants and Similar Programs <br />Accounting Analyst will need training to become comfortable with reviewing these work <br />papers. <br /> <br />13. Insurance/Risk Management <br />City Administrator and Finance Director complete the application materials each year. Staff <br />relies on insurance provider to let City know if it is adequately insured or not. <br /> <br />14. Budget <br />Currently the Finance Director establishes the budget in Springbrook. Need to have <br />someone else review the imported data and match against the budget approved by Council. <br /> <br />15. Financial Close and Reporting <br />Finance Director handles this task. Currently there is no other employee with the City that <br />has the knowledge or expertise to review the work. <br /> <br />16. Adjusting Journal Entries <br />Both the Finance Director and the Accounting Analyst prepare journal entries. The preparer <br />has the other review and approve. Unsure of the comfort level or knowledge base of the <br />Accounting Analyst to approve all entries prepared by the Finance Director. Look into the <br />possibility of designing a report to look for entries that didn’t go through a review process. <br /> <br />Finance Director and City Administrator currently have access to all aspects of the financial <br />software. The auditor needs to establish a comfort level on if operations staff notes a concern on <br />anything, would they stand up to the Finance Director and/or City Administrator. Budget Impact <br />Staff feels they could implement enough of the changes noted above to reduce the finding from a <br />material weakness to a significant deficiency with existing staffing. To entirely eliminate this <br />finding, the City would need to consider additional staffing or contract out with someone each <br />year to either prepare or review certain financial transactions throughout the year. At this time <br />staff does not believe this to be a cost-effective solution. We will continue to monitor our controls <br />on an ongoing basis and adapt as needed for changes in our processes and reporting environment. Attachments <br />Attachment A: 2019 Audit Finding <br />Attachment B: Internal Controls – Segregation of Duties – Risk Assessment <br />