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<br />Notes of the basic financial statements provided a summary of significant accounting policies <br />and other information needed to understand the financial statement. Ms. Lenk stated <br />Schowalter & Jabouri also performed a single audit of the City’s grants. In their opinion the City <br />complied in all material respects with requirements applicable to that program. She noted there <br />was one significant deficiency in internal control, which is with bank reconciliation procedures. <br /> <br />The next report Ms. Lenk spoke on was the internal control management and advisory <br />comments in which directions were given for strengthening internal control and operating <br />efficiency. The report demonstrated the City made tremendous progress from the prior years. <br />Ms. Lenk asked if anyone had any questions. <br /> <br />Mr. Kraft stated that the auditor had done the internal audit for the City for three year. He looked <br />back at the audits performed prior to their taking over this job. He noted that the audits done in <br />the past did not make mention of any deficiencies and asked why that would have happed. Ms. <br />Lenk noted that when Schowalter & Jabouri does an audit they try to hold management <br />accountable and bring things to their attention that they believe warrant farther action. Mr. Kraft <br />noted he was impressed as to the shortness of the list of deficiencies from Schowalter & Jabouri <br />’s first audit showing the City has made remarkable progress. He asked how long it usually <br />takes to make most corrections suggested. Ms. Lenk agreed that progress has been made and <br />said corrections do not happen overnight or in one year. Lenk said two or three years seemed <br />like a reasonable time frame. <br /> <br />Mr. Crow thanked Ms. Lenk for coming. He asked about the December 6 letter she referenced <br />in the report. Mr. Crow asked if this is the same one in front of the Comprehensive Annual <br />Financial Report. Ms. Lenk stated it was. Mr. Crow asked the City Manager about the <br />computer control issue. Mr. Walker stated the City was working with the IT department and <br />Finance department on that issue. Mr. Crow noted it dealt with the New World software and <br />asked if there was a time frame as to problems being resolved. Mr. Walker said that would <br />happen over the course of the next few months. <br /> <br />Mr. Kraft asked if the library was really not part of University City as far as the accountants are <br />concerned. He asked if they had their own budgetary process. <br /> <br />Ms. Lenk said the library is a legal separate entity. He asked if they had separate books or <br />should they be combined with the City. She noted it could be either way. <br /> <br />Mr. Kraft asked if there were any other entities that could be or should be or could be separate <br />in the City’s reports from a management point of view. Ms. Lenk noted that by including the <br />library, the City does accept responsibility for those accounts. He asked if a C.I.D. (Community <br />Improvement District) would be a part of the City’s accounts and Ms. Lenk said they would not <br />be. <br /> <br />Mayor Welsch asked how the City was dealing with the one weakness described in the report <br />and when would it be corrected. <br /> <br />Mr. Walker noted it was in the report, “City of University City, Missouri Information Required for <br />Governmental and Federal Awards Reporting and Independent Auditors’ Reports”. He stated <br />on page 10, in terms of significant deficiencies, that information is provided. Mr. Walker noted <br />the correction would be implemented during this fiscal year. <br />-------------------------------------------------------------------------------- <br /> <br /> <br /> <br />2 <br /> <br /> <br />