Res 1989-033 - Laserfiche WebLink

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For purposes of this report, we have classified the significant internal accounting and administrative controls in the following categories: Accountin~ Controls . Treasury or financing . Revenue/receipts cycle . Purchase/disbursements cycle other than payroll cycle . Personnel/payroll disbursements cycle . External financial reporting Administrative Controls General Requirements: . Political Activity 8 Davis-Bacon Act . Civil Rights 8 Relocation assistance and real property management 8 Federal financial reports Specific Requirements: 8 Types of costs allowed or disallowed 8 Eligibility 8 Matching level of efforts 8 Reporting 8 Cost Allocation Our study and evaluation included all the control categories listed above except that we did not evaluate the accounting controls over treasury or financing, revenue/receipts cycle and external financial reporting because we believed the audit could be performed more efficiently by expanding substantive testing rather than placing reliance on the internal control system and because the accounting controls that were not evaluated are not significant to the nonmajor federal financial assistance programs. During the year ended September 30, 1988, the City of San Marcos, Texas had no major federal financial assistance programs and expended 70 percent of its total federal financial assistance under the following nonmajor federal financ tal assistance programs: Federal Aviation Administration grant for airport improvements and the Women, Infants and Children program. With respect to internal control systems used in administering these nonmajor federal financial assistance programs, our study and evaluation included considering the types of errors and irregularities that could occur, deter- mining the internal control procedures that should prevent or detect such er- rors and irregularities, determining whether necessary procedures are pre- scribed and are being followed satisfactorily, and evaluating any weaknesses. With respect to the internal control systems used in administering the other nonmajor federal financial assistance programs, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment and the flow of transactions through the accounting system. Accordingly, our audit would not necessarily disclose material weaknesses in the internal control systems used in administering nonmajor federal financial assistance programs. 13