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MAT____~IAL WEAKNESS IN INTERNAL CONTROL <br /> <br />Observation <br />Internal control relating to City funds and accounting continues <br />to be weak in that several incompatible duties are assigned to <br />the City accountant. <br /> <br />Backgroun~ <br />Internal control is an important aspect of the City's administra- <br />tive and accounting procedures, and as the City grows, it becomes <br />even more important to provide for adequate internal control as <br />a means of safeguarding city funds and assets. <br /> <br />Recommendation <br />We recGnmend that the following changes in procedures be made <br />in order to improve internal control. <br /> <br />1. The City accountant should not have access to cash <br /> receipts or bank deposits. Another office employee <br /> should prepare and mail or deliver deposits to the <br /> bank. . <br /> 2. Since the City accountant is an authorized check signer, <br /> she should not have custody of the Mayor's signature stamp. <br /> Generally, the City should continue to assign duties to various <br /> individuals so that any one individual does not have sole access <br /> to City funds. <br /> We understand that the City has plans for assigning some~of the ~ <br /> accounting duties to another office employee. We recnmmend <br /> that the City continue in their efforts along these lines. <br /> <br /> <br />