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<br />previous year’s advisory comments. Schowalter & Jabouri noted tremendous progress the City <br />has made. <br /> <br />Ms. Lenk stated the final report was to the Honorable Mayor and City Council. This report <br />provided various communications required by professional standards. She then asked if there <br />were any questions. <br /> <br />Mr. Crow asked about the $90,000 fund discrepancy in the report to the Honorable Mayor and <br />City Council on page 2. Ms. Lenk said this was a past journal entry from 2009. There is no <br />information on the other side of the entry. The auditors recommended the City work through the <br />entry to determine details of the other side of the entry. Mr. Crow asked if this entry in 2009 <br />would increase the deficit and decrease the surplus being reported. Ms. Lenk said it presently <br />was a balance sheet item, a debit balance of a liability. Mr. Crow asked how that chapter will be <br />closed. <br /> <br />Ms. Charumilind stated the nature of the journal entry dealt with the closing of the East T.I.F. <br />account in 2007. The City was to reserve all the revenue received after the day that the City <br />closed in order to pay back St. Louis County. She said the City was short by $90,000 and she <br />believed that the finance department put the $90,000 into the balance sheet account. Ms. <br />Charumilind said if done properly the City should lower its revenue and increase the expenditure <br />by that amount. Ms. Charumilind stated she was not able to find the documentation to support <br />this entry. Mr. Crow asked if that meant the T.I.F. overspent. Ms. Charumilind stated that once <br />T.I.F. is closed, the revenue received by St. Louis County after that date is sometimes sent to <br />the City. The City should not recognize the revenue at this time and money should be sent back <br />to St. Louis County. Ms. Charumilind said it was paid back to St. Louis County but the City did <br />not handle the journal entry properly. Mr. Crow asked what the next steps would be. Ms. <br />Charumilind stated for the present she thought the Finance Department would lower its revenue <br />but the auditor asked that further research be done into the entry made in 2009 before a journal <br />entry is made. <br /> <br />Mr. Walker stated that the City would get back to the Council after research was completed as <br />neither the present Finance Director nor the City Manager were in their positions in 2009. <br /> <br />Mr. Crow asked about deficiencies considered to be significant on page 3, internal control over <br />financial reporting. He asked if the City was at a point where it would have the reports done on <br />a perfect time frame. Ms. Charumilind stated that last year was the first year the Finance <br />Department prepared a financial statement and present staff was not yet in place. She said it <br />should not happen in the future years. <br /> <br />Mr. Crow asked if documentation of internal controls was the same thing. Ms. Charumilind said <br />the City did its risk control internal auditing on petty cash and start up cash but on a small scale <br />and the auditors suggested that the City do it on a larger scale involving all of the departments <br />and report to the City Council and Mayor about the findings. Ms. Lenk mentioned that the <br />finance staff is aware of what needs to be done but it should also be documented in case of a <br />staff member leaving, so someone new to the department would know what the procedures are. <br />2 <br /> <br /> <br />