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CITY OF SAN LEANDRO <br />MEMORANDUM ON INTERNAL CONTROL <br />JUNE 30, 2012 <br /> <br />SCHEDULE OF OTHER MATTERS <br /> <br />Review Draft 6/18/2013 5:11:57 PM <br /> <br />2012-01 Timeliness of the Preparation of the Comprehensive Annual Financial Report (CAFR) <br />Draft <br /> <br />Criteria: <br /> <br />The Finance Department prepares the City’s CAFR which is then audited by our firm. The <br />CAFR must be complete and accurate prior to the start of the final phase of the audit, in order for <br />the audit to be completed on a timely basis. <br /> <br />Condition: <br /> <br />The City CAFR was not completed by the Finance Department during the majority of our <br />scheduled final audit fieldwork, which was also an issue during the prior year engagement. In <br />addition, once the current year draft report was provided to the auditors, there were numerous <br />corrections and edits that were required to ensure accuracy of the final version. Furthermore, the <br />Finance Department was also dealing with Redevelopment Agency issue’s during the course of <br />scheduled fieldwork. <br /> <br />Effect: <br /> <br />Substantial time is required by both City staff and auditors in order to get the City’s financial <br />statements to its final version, if the document provided is incomplete and inaccurate. <br /> <br />Cause: <br /> <br />The City’s staff has been used for other projects due to the dissolution of the Redevelopment <br />Agency. <br /> <br />Recommendation: <br /> <br />We understand that due to the dissolution of the Redevelopment Agency, the City’s staff has been <br />used for other projects, but the City should schedule time to ensure the completeness and <br />accuracy of the CAFR prior to handing that document over to the auditors. <br /> <br />Management Response: <br /> <br />City staff will make sure that prior to a pre-agreed deadline, a draft of the CAFR will be <br />available. Due to the decrease in staff, we may seek assistance in future audits to assemble <br />unaudited information for the CAFR to expedite its delivery. Despite the delay, all reporting <br />requirements were met for Fiscal Year 2011-12 <br /> <br />2012-02 Timely Preparation of Bank Reconciliations <br /> <br />Criteria: <br /> <br />Cash is the asset at greatest risk of misappropriation. Bank reconciliations play an important role <br />in the effectiveness of an entity’s internal control structure. They should be prepared on a timely