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Exhibit "J", Sewer Bond Construction Fund; Exhibit "K", Electric Utility Bond Construction Fund;
<br />Exhibit "L", General Fund; Statement of Revenue and Expense, Exhibit "M", Cemetery Fund,
<br />Exhibit "N", Electric Utility Fund; Exhibit "0", Water Utility Fund; Statement of Changes in
<br />Financial Position, Exhibit "P", Cemetery Fund; Exhibit "Q", Electric Utility Fund; Exhibit "R",
<br />Water Utility Fund; and the following schedules: Schedule .1, Analysis of Revenues and Trans-
<br />fers - General Fund; Schedule 2, Analysis of Appropriations, Expenditures, Encumbrances, and
<br />Transfers - General Fund; Schedule of Operating Expenses - Schedule 3, Electric Utility Fund;
<br />Schedule 4, Water Utility Fund; Statement of Revenues, Expenditures, Encumbrances, and.
<br />Transfers - Schedule 5, Electric Utility Fund; Schedule 6, Water Utility Fund.
<br />Mr. Graham then discussed in detail the Internal Control Study report, which he said was
<br />written similar to a Grand Jury type report.
<br />Mr. Graham stated this study includes the use of flowcharts, questionnaires for evaluation of
<br />internal control and a review of existing job functions. Mr. Graham advised that one of the
<br />best internal controls is the separation o f duties of the employees.
<br />Mr. Graham continued that the report consists of suggested changes that should strengthen the
<br />internal controls considerably of the Finance Department in the following areas:
<br />Petty Cash; Accounts Receivable; Cash Receipts; Cash Disbursements; Purchase Order System;
<br />Payroll Preparation; Inventory Controls; and General Comments.
<br />Mr. Graham said with additional personnel, new procedures, new and more technical equipment,
<br />and following the suggested changes for internal control, the efficiency and productivity of
<br />the Finance Department should be greatly increased.
<br />Mr. Graham agreed that all of the suggested changes cannot be implemented immediately, how-
<br />ever, some of them have already been accomplished and the others will follow as soon as they
<br />can be initiated.
<br />City Manager Huffaker stated that with regard to the changes that have not as yet been
<br />accomplished, Staff will be working on these items and the Council will be given a status
<br />report periodically as these changes are made to insure completion of these items.
<br />Mayor Huntoon stated that if these changes, or new procedures, are not implemented, the
<br />whole audit would not be very valuable.
<br />Mr. Graham then reviewed the last phase of the audit report entitled Management Report, which
<br />encompasses certain problem areas. Mr. Graham said these problem areas are submitted for
<br />Council's consideration, as follows:
<br />New Funds and Accounts to be Set Up; Accounting Procedure Changes; Budgetary Accounting;
<br />Encumbrance System; Bond Requirements; Property, Plant and Equipment; Investment Procedures
<br />and Policies; Insurance Coverage; Inter -fund Activity; Record Retention; Travel Authoriza-
<br />tion and Expenditures.
<br />Mr. Graham concluded that the information and suggestions contained in each of these reports
<br />will be usefull tools for this Council, and other Council's to come.
<br />Mayor Huntoon and each of the Council members commended Mr. Graham for his fine presentation
<br />and the excellent reports as submitted by Eadie and Payne.
<br />Mr. Graham stated there were several phases of these reports that he commented on rather
<br />lightly, because he would like to discuss them in closed session with the .Counc i 1 members.
<br />City Manager Huffaker said these items are personnel matters and can be discussed in Executive
<br />Session.
<br />The Council Members took a brief recess before adjourning to Executive Session.
<br />EXECUTIVE SESSION:
<br />The City.Council adjourned to.Executive Session at 9:12 p.m., on the request of Mayor Huntoon.
<br />The City Council reconvened at 9:45 p.m., all members present.
<br />ADJOURNMENT:
<br />There being no further business to come before the City Council at this time, on motion of
<br />Councilman Hayes, seconded by Councilman Gonzales and unanimously ;.passed, Mayor Huntoon
<br />adjourned the meeting at 9:45 p.m.
<br />HELEN A. RAMOS
<br />City Clerk
<br />Approved this day of , 1974.
<br />Mayor
<br />Nov 1 `tj 1974
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