X hits on this document

144 views

0 shares

0 downloads

0 comments

60 / 61

Criteria:

Effective internal control requires that all projects of the City be monitored and properly capitalized when the project has been placed in service. Effective monitoring includes separately tracking expenditures for projects that are related to repairs and maintenance of existing capital assets and expenditures for projects that are related to new capital assets.

Effect:

The City has not consistently calculated and recorded depreciation expense on completed projects, after the new capital assets have been placed in service.

Recommendation:

The City should maintain work papers to support additions to the fixed asset records regarding construction projects and also to reflect manual depreciation calculations.

Response:

The City will make every effort to work with the City Engineers to differentiate between maintenance and new construction, and to determine when a project is complete. The City will maintain work papers to support additions to the fixed asset records.

Financial Statement Reporting

Condition:

The City relies on the auditingfirm to assist in the preparation of external financial statements and related disclosures. Under U. S.generally accepted auditing standards, we cannot be considered part of the City's internal control structure and because of limitations of the accounting staff, the design of the City's internal control structure does not otherwise include procedures to prevent or detect a material misstatement in the external financial statements.

Recomrnendation:

The City should contract or employ the appropriate personnel to assist in the preparation of external financial statements.

Response:

The City has contracted a CPA firm to assist in the preparation of the external financial statements.

07-1

07-2

CITY OF SULPHUR, LOUISIANA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30,2007

Capital Assets

Condition:

Management has inadequately monitored the activities in the capital

projects funds.

Completed construction projects

were not properly completion. This is

schedule, upon

recorded in the fixed a repeat finding.

asset depreciation

60

Document info
Document views144
Page views144
Page last viewedWed Dec 07 23:01:41 UTC 2016
Pages61
Paragraphs2526
Words15787

Comments