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<br />October 8, 2004 <br /> <br />LETTER TO FINANCE DIRECTOR CHRIS MILLER AND CITY COUNCIL <br />MEMBERS ( By e nlail) <br /> <br />FROM AL SANDS, 2612 Aldine St.N. , Phone 633-5761, esands2612@aol.coln <br /> <br />RE: DISBURSEMENT AND AUDITING PROCEDURES <br /> <br />This is a follow up to the last Council nleetings discussion on disbursenlent and auditing <br />procedures, where Council requested nlore infornlation on auditing, etc., to be presented <br />at a future "work" session. <br /> <br />What the Council needs fronl Chris Miller (in writing): <br /> <br />A detailed description, in writing, of your policies and lJrocedures in auditing <br />and disbursing of city funds. This is prinlarily separate and distinct froln purchasing <br />procedures. Since you are a CPA I believe you know what I'nl talking about. If you <br />have any questions, let nle know. I have been in private practice for over 40 years, and I <br />have done my share of auditing private businesses. Your experience is in local city <br />governnlent, but the auditing and accounting controls over expenditures are sinlilar: <br /> <br />1. Making sure that every disbursenlent is authorized, authentic, and appropriate. <br />Being appropriate Ineans the appropriate person has authorized and/or <br />approved the purchase according to your internal policies (requiring a <br />purchase order be attached if $2,000 plus). <br />2. The goods or services have been received (a receiving repoli, or appropriate <br />evidence the services have been received and perfornled according to <br />agreeInent. <br />3. The price and arithmetic calculations are correct. <br />4. The purpose for the disburseInent is in writing. <br />5. At least two (independent) persons are involved in any Inoney transaction. <br />6. Budgeted funds are available, and the correct fund has been charged. <br />7. The bill is paid tinlely, without late paYInent penalties. <br /> <br />This is tiIne consunling, so someone has to be assigned the responsibility to <br />perfonn the audit function. Describe how and who does this audit function. <br /> <br />All of this, including present policies, needs to be laid out in writing if you <br />haven't already done so (I suspect you have), and presented to the City Council at a <br />future study session so that they may have sonle assurance that public funds are being <br />properly audited and controlled by staff. <br /> <br />While I realize your software program which lists out the disburseInent register <br />Inay not presently peImit you to list the purpose of each disbursement, and the nanle of <br /> <br />1 <br />