01081973 Regular Meeting - Laserfiche WebLink

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I I I City of San Marcos -2- December 27, 1972 C. Cost records D. Useful lives E. Asset location This method of control would provide more accurate allocation of costs to fixed assets, establish better control over supplies and material inventories, and result in a greater degree of compliance with revenue bond ordinances. These problems could be corrected as part of the conversion to electronic data process- ing to provide the City with complete records and full use of the system. We observed that Council approval for certain capital expenditures was in exactly the amounts of the bids accepted. No provisions were made for possible change orders or contingencies which might affect final acquisition of the fixed assets. We suggest that management in reviewing bids also consider what changes may be required before the contract is completed and recommend to the Council reasonably anticipated amounts for contingencies. In this way, when the Council approves the major expenditure for a capital item, it will provide for minor devi- ations and will not have to reconsider such items in subsequent meetings. Ad Valorem Taxes During our examination of tax rolls and related collection records, we noted that tax collections had not been allocated between the General Fund and the Interest and Sinking Fund on a timely basis. We recommend that taxes receivable be allocated between the General Fund and Interest and Sinking Fund when the taxes are levied. The allocation should. be in accordance with tax rates adopted in the ordinance levying taxes each year. Tax collections should be allocated at least monthly. Grant Accounting The City has been the recipient of several grants-in-aid from the federal government during the past several years. During our engagements, we encountered great difficulty with the City's accounting records in the areas of bonded debt, the library grant, urban renewal, and other federal grants. Such inadequate records and any failure ments might result in loss of funds to the City. of funds which could result from not claiming all nonallowable costs. to comply with federal require- The City should consider the loss eligible costs or by claiming Due to these problems, we have necessarily had to prepare substantial adjustments to recorded amounts in order to reflect proper balances. These problems have caused excess time during our audit and have resulted in excess costs to the City.