Laserfiche WebLink
t <br />> CITY OF SAN MARCOS, TEXAS <br />SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS <br />YEAR ELUDED SEPTEMBER 30, 2008 <br />1. Findings Relating to the Financial Statements Which are <br />Required to be Reported In Accordance With Generally <br />Accepted Government Auditing Standards <br />Item 2007-1: <br />Condition: The City's bank reconciliations were not completed in a timely manner. <br />Effect: Carrying amounts for cash balances during the year may be incorrectly <br />stated. The opportunity for theft is also increased as any discrepancies <br />may not be detected in a prompt manner. <br />Cause: The City's internal control structure did not require bank reconciliations to <br />be performed in a timely manner. <br />Recommendation: Management should implement a policy that requires bank reconciliations <br />to be performed as soon as possible. <br />Management's Response: City Management was aware that during Fiscal Year 2006-2007, the <br />City's Consolidated and Enterprise Fund bank reconciliations were not <br />being prepared in a timely manner. City Finance staff has always <br />understood that our bank reconciliation is a top priority. At tine <br />beginning of Fiscal Year 2007, the Finance Department was still in a <br />state of transition. The City's Accountant II position had just been <br />filled to replace a City accountant who had been with the City for <br />almost five years. The City also had an Interim Assistant Director of <br />Finance in place during this transition period. In May 2007, this <br />position was filled externally by the City. <br />In June 2007, the City hired an outside consultant to look at the timing <br />issues concerning the process surrounding the Enterprise and <br />consolidated bank reconciliations. The major finding of that study <br />determined that credit card receipts processed by the City of San <br />Marcos were deposited by the credit card companies directly to our <br />bank net of any fees assessed by the credit card company. By having <br />the credit card companies credit our bank based upon the gross receipt <br />of the transaction, this provided for a smoother reconciliation process. <br />Other recommendations from that study, such as a pooled cash fund, are <br />also being examined at this time. <br />(continued) <br />10