Finance Committee Agenda and Packet 2009 07 20

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SUBJECT: 2008 AUDIT MANAGEMENT LETTER DATE: J U LY 20, 2009 approved vendor list with the costs of maintaining and reconciling to such a list, especially in a decentralized purchasing environment. Along with an approved vendor listing, management will consider other ways to reduce confusion and to help prevent unauthorized purchases. Auditors' Comment: All large vendors should also be checked against the EPLS website for any suspension and debarment concerns. Management's Response: Management will inform departments to check all large vendors on the EPLS Website for suspension or debarment concerns. Auditors' Comment: We recommend that all receiving reports related to purchases conducted in other departments be forwarded to the Finance department for record keeping purposes. Management's Response: Management will inform all departments to include receiving reports when submitting payment requests to the Finance Department. The Finance Department will retain the receiving reports with the other accounts payable information. Auditors' Comment: To adequately improve the segregation of duties within the City's accounting functions, we recommend that an individual without access to the accounts payable module for entering the payables and paying the vendor be made responsible for setting up vendors in the accounting system. Management's Response: Management will work to segregate these functions. However, this is a relatively difficult segregation for such a small department and management will need to weigh the benefits versus the costs and inefficiencies.