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<br />Z84 <br /> <br />TUESDAY <br /> <br />NOVEMBER 9, 1976 <br /> <br />4. The change will eliminate most of the problems of existing <br />cash over-drafts which the Auditors have commented on. <br /> <br />I refer you to the 1975 Auditor's Report for the City written by <br />Ford, Hogg and Cobbe: <br /> <br />"Various statements of financial condition disclose cash <br />over-drafts at June 30, 1975. Cash from the various <br />funds are co-mingled in order to aid in the administration <br />of total cash flow. However, over-drafts in various funds <br />defeat the purpose of co-mingling the actual cash, since <br />they represent cash transfers or loans to the overdrawn <br />funds. We recommend that existing over-drafts be eliminated <br />when funds are available and that a policy of avoiding over- <br />drafts be adopted." <br /> <br />The new system will eliminate the problem of existing cash over-drafts, <br />except for Central Stores, and because only eight funds will remain, it <br />should be easier to avoid future over-drafts. <br /> <br />5. The change will eliminate long standing deficits and/or <br />surpluses of the individual funds without the necessity of action <br />by Council on a periodic basis. <br /> <br />An example is Mr. Yeaman's suggestion to Council on May 14th to <br />merge two funds into the General Fund in order to eliminate long- <br />standing individual fund deficits. <br /> <br />6. Finally, accounting for eight funds instead of eighteen <br />funds is less expensive and time-consuming. <br /> <br />Obviously, bookkeeping, posting, and time spent balancing funds will <br />be shortened for Mr. Yeaman's department. In addition, Steve <br />Kendrick of Ford, Hogg and Cobbe estimates that the size of the audit <br />report will be reduced. <br /> <br />I have discussed these changes with Mr. Kendrick, Auditor, Ford, Hogg <br />and Cobb, and with Mr. Yeaman. Both Mr. Kendrick and Mr. Yeaman agree <br />with my reasoning. <br /> <br />I hope that Council will act favorable on my suggestions barring any <br />legal prohibitions, and subject to any further findings by Mr. Yeaman, <br />and that the suggestions will be implemented as soon as possible. <br /> <br />Mr. Thomas J. Womack, referring to Council's consideration of a proposed charter <br /> <br />amendment hereinbefore recorded in these minutes, expressed concern over his <br />