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CITY OF GEM LAKE <br />SCHEDULE OF.FINDINGS.AN© RESPONSES (CONTINUED) <br />YEAR ENE© ©ECEMBER 31, 201E <br />l <br />MATERIAL WEAKNESS(CONTINUED) <br />201E=002: No Utility Billing_ Reconciliation Performed <br />Condition: As the City transitions more responsibility to others, it was noted a formal reconciliation of <br />utility billings and collections are not being performed to.account for total billings. and receipts into. the <br />City's general ledger system. <br />Criteria: Management is responsible for having adequate controls and processes in place`to ensure all <br />activity that is not created and/or generated by the general ledger system ;is sufficiently reconciled to <br />subsidiary systems. These could be accomplished through periodic review. of billing registers, receipts, <br />and system activity. This process. should also include a reconciliation process in which all of the activity <br />in the subsidiary system is entered. into the general ledger and key account balances and. totals are <br />traced to the supporting reports/schedules of the subsidiary system. <br />Effect. The. City may find unexplained variances in uti€4 revenue and receivables_'..'_ . <br />Cause: The City is working through identifying and. establishing controls anti processes as some duties <br />are separated out among different individuals. <br />Recommendation: We recommend City management establish a process to reconcile the utility <br />system. to the general ledger at least quarterly.#o; coin.cide with the utility.billino process which occurs on <br />a quarterly basis. <br />Management Response: <br />Management i5 exploring ways :W provide a recoi]CNation between systems. <br />(36) <br />