Laserfiche WebLink
<br />PANNELL <br />KERR <br />FORSTER <br /> <br />Certified Public Accountants <br /> <br />May 4, 1988 <br /> <br />410 Park National Bank Bldg. <br />5353 Wayzata Boulevard <br />Minneapolis, MN 55416 <br />Telephone (612) 545-0421 <br /> <br />Honorable Mayor and <br />City of Ramsey <br />Ramsey, Minnesota <br /> <br />Councilmembers <br /> <br />The following comments relating to your 1987 audit are provided to assist you <br />with the financial planning for your City and continued improvement of your <br />accounting records. <br /> <br />Computer System <br /> <br />The City's management has expressed concern over the adequacy of the <br />City's computerizedlaccounting system. A major deficiency is the system's <br />inability to produce interim financial data in the format and content <br />needed by management. In the past, we have also pointed out certain <br />shortcomings of the system. The City has made some improvements to the <br />system through internal changes, but is restricted due to limitations of <br />the software system~ <br />, <br />, <br />A key concern is that your software vendor has dropped support (upgrading <br />and improvements) of your software system. We have seen a lack of system <br />support for many 'of the various software systems utilized by other <br />, <br />municipali ties. <br /> <br />i <br />If the City contemplates a change in systems, we emphasize the importance <br />of careful study and selection of the new system, and evaluation of the <br />software developer's integrity, longevity, and commitment to perform. The <br />City should also anticipate a significant time and effort commitment to <br />accomplish the conversion, and not to expect any system to be perfect. <br /> <br />Fixed Asset Records <br /> <br />General fixed asset records (non-enterprise funds) of the City are main- <br />tained on a manual system which is updated at the end of each year. This <br />, <br />system does not provide automation of information flow such as sorting and <br />totaling abilities; It does not provide information such as condition and <br />status records for'capital planning. Also, by not updating the system on <br />a current basis (immediate or at least monthly) information becomes less <br />reliable and creates a burdensome and difficult task in preparing for the <br />annual audit. <br /> <br />These records should be automated and capital outlay items should be iden- <br />tified upon purchase and added to the fixed asset system at that time. <br />