98 Local Agency Audit of Hwy Trust Funds

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i Local Agencies' Use ofi Highway Funds Performance Audit APPENDIX A We have listed below information that has not been discussed in previous sections of our report obtained in our audit about the adequacy of internal controls, compliance with laws and regulations and administrative and indirect (overhead) costs. A. Adequacy of Internal Control ~ J ~ , ~ ~ _ ~ ~ _ 1. The receipting, posting and reconciling of bank accounts are performed by the j same individual. (Due to limited staff within the city). - . I - 2. Cash receipts, in an immaterial amount, were not recorded and deposited on a fimel basis. Y 3. Blank check stock and check signing signature. plates were accessible to j ~ employees not involved in the disbursing function.. The cities and counties ~ involved indicated that corrective action to secure check stock .and signature ~ plates would be instituted. 4. Data processing programmer has access to active data within the accounts payable system. The city indicated that corrective action would be undertaken to limit programmer access to active data. ~ 5: Revenue and expenditures, in immaterial amounts, were recorded in the wrong ' fiscal ear. The cities indicated that it occurred due y to an oversi ht b their 9 Y accountin ersonnei. 9P 6. Checks are not required to have dual signatures. The entities believe its existing compensating controls are sufficient to overcome the lack of dual signatures on checks. 7. Purchase orders are not used. Personnel indicated that compensating controls in effect were sufficient and the use of purchase orders would not be cost beneficial. ~ B. Compliance with Laws and Regulations 1. Indirect (overhead) percentages were estimated to determine costs for the purpose. of completing the Local Road & Street Questionnaire. City personne! indicated that actual indirect (overhead) percentages will be used in the future. Talbot, Korvo/a 8 Warwick, LLP 30 .