Minutes 11/23/1982 - Laserfiche WebLink

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..uo TUESDAY NOVEMBER 23, 1982 reconciliation should preclude future errors of this nature. The difficulty with the computer program has been corrected. FIXED ASSETS Fixed assets are not accounted for in accordance with sound governmental accounting principles as noted in our report letter dated October 25, 1982. Upon completion of the inventories, currently in progress, of the fixed assets, procedures should be establ ished to maintain current fixed asset records and provide for depreciation in the enter- prise and internal service funds. The inventory of general fixed assets should be expanded to include real estate and school fixed assets. Accounting for fixed assets is and may continue to be the most difficult and cumbersome aspect of our financial system. We have made significant progress here toward our goal of having all the City's fixed assets (regardless of Fund to which they are ascribed) discovered and properly entered into our own data processing system. There are three separate situations remaining, however, between us and our goal, only briefly alluded to in Sells' management letter. These situations are as follows: 1. The three utility funds have all their fixed assets on Marshall & Stevens' computer. We are having certain difficulties converting this data to our system and we have some unresolved problems in devising the necessary procedures to annually update this data. 2. The General Fund fixed assets are on our computer, but do not as yet include all the City's real estate holdings. 3. There has never been a systematic inventory of School Division fixed assets. We are committed to resolving the first two situations. The last is, of course, beyond my jurisdiction, but I plan to discuss the matter with the School Superintendent and will advise you of his response to the auditor's recommendation. REAL ESTATE AND PERSONAL PROPERTY TAXES Our examination disclosed that real estate and personal property del inquent I ists do not reconci Ie with the treasurer's ledger or the finance department records. Procedures should be establ ished to insure that all col- lections of taxes are properly reflected on both the individual's tax records and the City's records. These procedures should include a periodic reconci I iation of collections and outstanding balances to both the trea- surer's ledger and the finance department records.