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City of Arden Hills <br />Internal Controls – Segregation of Duties – Risk Assessment <br />July – 2020 <br /> <br /> <br />Audit Areas/Transaction Classes <br /> <br />1. Cash and Investments <br />(Processing Cash Receipts and Disbursements, Managing Investments) <br />• Does anyone review bank reconciliation <br />• Does anyone monitor investment handling besides Finance Director <br /> <br />2. Revenue/Receivables – Governmental Funds – Taxes/Special Assessments/Other <br />(Processing and Managing Billings, Processing Billing Adjustments, Recording Unavailable <br />Revenue, Estimating the Allowance for Uncollectible Accounts, Maintaining Master Files) <br />• Finance Director is the only one involved in the recording of taxes and special <br />assessments for the financial statements. <br />• Process to write-off receivables <br /> <br />3. Revenue/Receivables – Proprietary Funds <br />(Processing and Managing Billings, Processing Billing Adjustments, Recording Unavailable <br />Revenue, Estimating the Allowance for Uncollectible Accounts, Maintaining Master Files) <br />• Write-off process <br />• Booking any unbilled receivables <br />• Reconciling sub-ledgers to the general ledger <br /> <br />4. Expenditures/Expenses for Goods/Services and Accounts Payable and Prepaid Items <br />(Recording Purchases, Processing Accounts Payable and Accruals, Processing Disbursements, <br />Maintaining the Supplier Master File) <br />• Reconciling a/p listing to the general ledger <br />• Determining prepaid items <br /> <br />5. Payroll and Related Liabilities Including Termination and Health Benefits – Pensions and OPEB <br />(Processing Payroll, Maintaining the Employee Database Master File) <br />• Who can adjust payroll amounts and who monitors/approves changes <br />• Who can adjust withholding amounts <br /> <br />6. Inventories <br />(Recording Purchases, Receiving and Storing Inventory, Costing Inventory, Managing Inventory, <br />Estimating Excess and Obsolete Inventories) <br />• Water meters only? <br /> <br />7. Capital Assets <br />(Acquiring and Safeguarding Capital Assets, Depreciating/Amortizing Capital Assets, Disposing <br />of Capital Assets, Maintaining the Capital Assets Sub-ledger, Assessing Assets for Impairment) <br />• Is this managed entirely by Finance Director? <br /> <br />8. Inter-fund Transactions and Balances <br />(Managing Transfers and Borrowings between Funds) <br />• Who is involved in this process?