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TO: <br />FROM: <br />DATE: <br />SUBJECT: <br />ORIGINATING <br />DEPARTMENT: <br />SUMMARY: <br />MAYOR AND CITY COUNCIL <br />MALCOLM FLEMING, CITY MANAGER <br />J U LY 20, 2009 <br />2008 AUDIT MANAGEMENT LETTER <br />FINANCE <br />Attached is the 2008 Audit Management Letter. David DeZutter from Eide Bailly, the City's <br />external auditors, will be at the meeting to present and discuss the letter with the Finance <br />Committee. <br />One of the purposes of an audit management letter is to inform management of issues noted <br />during the auditors' review and offer suggestions for improvements. In the attached letter, the <br />auditors' commented on four general areas: <br />1. Accounts Payable Purchasing <br />2. Sales Tax Audits <br />3. Capital Assets <br />4. Audit Adjustments <br />Management has reviewed and discussed each of the auditors' comments. Below are the <br />auditors' comments and management's response to each comment: <br />Accounts Payable Purchasing <br />Auditors' Comment: <br />An approved vendor listing should be compiled and made available to all employees that <br />are allowed to make purchases. This should reduce confusion for employees and help <br />prevent unauthorized purchases. Transactions should regularly be checked against this <br />listing to ensure that only approved vendors are being utilized and that purchasing <br />abilities are not being abused. <br />Management's Response: <br />Management will consider the implementation of an approved vendor list in conjunction <br />with amending the City's Purchasing Policy. Management will weigh the benefits of an <br />L L SUBJECT 2008 AUDIT MANAGEMENT LETTER <br />