1997 AGN APR 01 I08 - Laserfiche WebLink

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_ _ . _ _ i _ , � . .. �i:3(3C�' cEs�nFre� � � - � . .. 5oil y&,� �r,Brx . � . �UTi�11��ACGY7!/NFANTS '. . . . . . . . ' ' ' . . . . #ransactions and inspect supporting documentation to, determine compliance with � ;� � . ' re�evant iaws and reguiation�, �'or example, we select a sample i�f ��enditures charged - to 'a federal assistance program a�id inspect documeritation to deterniine whether expenditures were for allowat�Ie services. �e usualiy co�duct these tests concunentiy with selecting samples of cash receipts and disbursements performed in the financial audit. ' 7. Statisti�al Sampling Procednres = Our approach is to utilize statisticaI sampling in the areas of receipts, disbursemerits and payroll. Here we develop a statistical can�lusion - based upon an initial camputer s�lected random sample of 30 transactions. If errors are noted in the sampl�; ti�e sampie size tivili be expanded. We. feel tha� a random selection can be the most efficient, while prc�vi�ling each item in the population an eqnai ci�ance of being selected. 'I'his is accomplished by using random numti�r generating software we de�r�loped in-house_ Additionally, for receipts and disbursements, we select', a stratified sample �f alI transactions over a specified dollar limit for review. 'I'his allo�vs us tQ cc�ver all high dollar valu� transactions not oth�rwise sel�cted in the random sample. 8. Support �'rflm City -�e exp�ci minimal �ssistance from City staff; however, we cio . require that all accour�ting fnnctit�ns be performed prior ta our commeneement of year- end �rocedures_ This m��s that rect�nciliations of cash and investments ta the general ledger, balancing of �due to and fiam, balancing of tra�sfers in and o�t, establishm�nt of accr�als and reserves {accounts pa�able, re�eivables, encuznbrances, etc.) must �ave been performed. �e e�ect the City tt� provide us �rith general ledger summarie�, trial balances, sta�em�nts c�f revenu�s and e�penditures with ac#i�al and bud�eted a�nounts. We shoul�i have access to an approved budget, as we�� as all su�plemental apPropriations. We will need general ie�ger posting �ietails, which can be hard copies, or access tc� City computer termi��als �o �llow our auditc�rs ta loak �p transaction details in the accounting system. We do nat require formal cli�nt prepared schedules; a:s long as some form flf details is available tc� us. C3vera1l, we pra�ably r�quire the least assistan�e of all the f�ms invt�ived in this fie ld. We �vill even re are all flf the ban k and P P investment conf�rrnations. 23 - � -� _: ._, __ � , , -� , � r,