5.d) Staff Report-Internal ControlsSCANDIA
Staff RepoVt
Date of Meeting: June 16, 2015
To: City Council
From: Colleen Firkus, Treasurer
Re: Internal Controls Policy
Agenda Item #:
Background:
Due to the small number of city staff and lack of an accountant on staff, the City has consistently
received auditor findings for deficiencies in the city's internal controls (p. 44- 47 2014 Audited
Financial Statements) regarding the segregation of accounting duties, preparation of financial
statements and review by management of financial statements and year-end adjustments. Our
auditors have recommended the City adopt a formal written internal control policy to address
these issues.
Issue:
Should the City adopt an internal control policy?
Proposal Details:
Attached is a draft of an Internal Controls Policy for your review. Most of these procedures
document what we already are doing, but some are new. We should also have a written
Investment Policy.
Fiscal Impact:
None. Unless the City wants to hire an accountant to help with year-end preparations of financial
statements.
Options:
1. Adopt draft Internal Control Policy.
2. Make changes to Internal Control Policy draft.
Recommendation:
Option 1.