2009-08-26 Handouts @ Mtg. - Laserfiche WebLink

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Allocation of Expenses The petitioners were concerned about the allocation of salary expense for the City Administrator and the City Finance Director. We reviewed the time allotment and related salary and fringe benefit expense allocation prepared by the City of Centerville. We noted the following. 1. The City Administrator's salary and fringe benefit expense was allocated to the General Fund as follows: 90 percent to administration and 10 percent to inspection. 2. The City Finance Director's salary and fringe benefit expense was allocated as follows: 75 percent to administration and 5 percent to inspection (both in the General Fund), 10 percent to the Water Fund, and 10 percent to the Sewer Fund. The allocation of the salary and fringe benefit expenses does not seem unreasonable; however, we recommend that the City continue to monitor the time being spent by these positions to allow for future allocation revisions if deemed necessary. Investment Accounts The petitioners were concerned that the City of Centerville had numerous investment accounts and possibly many transfers were made between these accounts. We reviewed the monthly investment statements received by the City from Smith Barney for the period January I, 2005, through November 30, 2008, and compared the amounts at December 31,2005,2006, and 2007, included in the City's audited annual financial reports to verifY that all investments were included. We noted the following. 1. All investments (money market account and direct obligations or obligations guaranteed by the United States or its agencies) were held with Smith Barney in one account for the period January I, 2005, through November 30, 2008. 2. All cash withdrawals made during the period January I, 2005, through November 30, 2008, from the Smith Barney account were traced to deposits on bank statements from Mainstreet Bank. 3. In each of the aforementioned audited annual financial reports for the City of Centerville, the independent auditor included a schedule of findings. In the report for the calendar year 2007, the auditor commented that the City was found to have limited segregation of duties in the transaction cycle relating to investments because the City Finance Director had responsibilities over all duties of authorization, custody, record keeping, and reconciliation. The auditor recommended review of investment statements prior to the Page 14