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Regular City Council Meeting Monday, May 17, 2010 Page 10 Mr. Eichten provided, through his Management Report, an unqualified clean opi- nion on the financial statements, with no substantive findings to report, as he noted has been the case in Roseville for many years. Mr. Eichten reviewed and elaborated on suggestions for the following compo- nents of his Management Report. Audit Results Tested internal controls: segregation of duties within internal controls over purchasing card (P -card) transactions Legal compliance in the timely payment of invoices, in accordance with State Statute. Mr. Eichten noted that this was a common finding due to delays in the process for determining accuracy, approval and payment within and among depart- ments to the Finance Department, with most findings eliminated once docu- mentation was confirmed on specific invoices. Signed declarations for payroll transactions for electronic payments, based on state law, as well as for vendors receiving electronic payments. Mr. Eichten noted the common difficulties in meeting this requirement, and the work of a committee consisting of CPA's with the State Auditor, and a more systematic verification for vendors in receiving electronic payments, by verifying that all future invoices are true, just and correct by submission on one form for that future invoicing. Mr. Eichten advised that his firm would coordinate with staff to provide a model or sample form to use. Mr. Miller noted, related to payroll declarations, that the City uses physical time forms, and that those timesheets were required to include that declaration as well, for verification of actual hours worked. Audit results Mr. Eichten reviewed staff's follow -up and resolution to prior year findings, with the five findings from 2008 resolved and now eliminated, opining that this was the intent of the audit to provide learning and corrective opportunities for staff, all of which had been accomplished. Skating center segregation of duties; Monitoring of grant- and contract related costs; Prior period adjustment on loan program accounting; Bids received didn't have appropriate performance or payment bonds from the contractor; and One audit adjustment (journal entry). Mr. Eichten further reviewed the audit summary in his Management Report, mak- ing one other suggestion that the City's Information Technology Contingency Planning be formally documented.