2002-02-13 CC Packet - Laserfiche WebLink

Home Browse Search

Issues Identified The following issues were identified at the workshop: 1. The accounting computers are not linked together and only one person can operate on an accounting computer at a time. 2. Banyan software is used by the City and is recommended by Steve McDonald. The software does crash sometimes and backups of the system take over 45 minutes. 3. Steve McDonald stresses the number one error in our accounting procedure is the failure to reconcile bank statements each month and make correcting journal entries. 4. Steve McDonald stated a monthly checklist can be provided to Council and the City Administrator for oversight and quality control. 5. Proof of bank and investment reconciliation is essential each month. 6. Monthly reports to Council are essential and a quarterly report with narrative should be presented 30 days after the end of a quarter. These reports should be standardized without additional handling to place in a spreadsheet. 7. While our Chart of Accounts is standardized to the State of Minnesota system, the sub accounts are numerous and confusing both to staff and some Council Members. 8. Inactive, invalid, or deficit accounts need to be eliminated. 9. The Auditor recommends a reduction in the number of investment accounts. 10. Council Member Broussard-Vickers raised a concern over administrative personnel workloads in comparison with similar communities. No decisions were made. The workshop was adjourned at 8:02 PM. Desired Future Condition Council is the steward of the public treasury. We can not delegate fiduciary responsibility. The purpose of the accounting system controls and reports is to provide timely and accurate information that can be trusted to: 1. Assist in making critical policy decisions and budget priorities 2. Track and display the performance of budgeted accounts 3. Provide flexible reports to answer management questions and display trends 4. Provide residents with a clear, accurate picture of what their money is spent on, by whom, and when. Furthermore, the accounting system and procedures should segregate duties and other procedures that lead to a clean, unqualified audit opinion by an independent auditor every year. Review of 2001 Minutes After the meeting, I thought about the issue a lot. I re-read the Council minutes for 2001 related to financial management. The first mention of accounting procedures is dated March 14, 2001 when I asked to pull the City expenditures because the columns in the accounting report did accurately sum. In addition, accounting issues and concerns