Finance Highlights 2007 0207 - Laserfiche WebLink

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CITY OF SAN LEANDRO CURRENT YEAR INTERNAL CONTROL COMMENTS JUNE 30, 2006 Cash Receipt Comment The use of pre-numbered receipts and/or a receipts log are common features of a good internal control system. Although there are pre-numbered receipts at the Marina, we noticed that cash receipts are organized by date order instead of pre-numbered receipts order, and that receipts are issued out of sequence. This practice creates a break in the audit trail, and makes it difficult to monitor, and subsequently locate cash receipts, and determined that all receipts have been deposited. Recommendation We recommend that the City institute procedures to ensure that all Marina personnel are issuing receipts in numerical order. This will provide better control over the receipts issued and allow for an easier methodology to ensure that all collections have subsequently been deposited. ACCOUNTS PAYABLE Comment An accounts payable detail schedule is useful in allowing for an efficient audit of amounts reported on the financial statements. Typically this schedule would show, by name, each individual or vendor for which there are outstanding or unpaid invoices at year end along with the corresponding amounts due. The schedule should also be aged, so that the period of time the invoices have been outstanding are readily determined. During our audit, City staff were unable to provide an accounts payable schedule including all pertinent elements. As a result, alternative procedures were required to verifY amounts. This resulted in additional time required of City staff. Recommendation We recommend the staff determine if the current accounting software is capable of producing a detailed aged accounts payable listing. If one is not available under the accounting system, procedures should be put in place prepare one using an excel spreadsheet or similar applications. 2