HomeMy WebLinkAboutItem 4.11 1992-93FinalFinRpt & Audit
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 14, 1994
SUBJECT: Final Financial Report For Fiscal Year 1992/1993 and
Annual Audit Report
(Prepared by:paul S. Rankin, Assistant City Manager)
EXHIBITS ATTACHED: 1. / comprehensive Annual Financial Report, dated June
30, 1993.
2. / Financial Report (Final), June 30, 1993
3. / Independent Auditor's Management Letter, dated
October 11, 1993.
4. / Staff response to issues addressed in the
Management Letter.
RECOMMENDAT~ION: Recei ve the Annual Report, including the report of the
, Independent Auditor's (Maze & Associates), Receive and
file the Staff response to the Management Letter,
Authorize the year end supplemental appropriations as
described in the report.
FINANCIAL STATEMENT:
See Report
DESCRIPTION: The City of Dublin has compiled and published its
Comprehensive Annual Financial Report (CAFR), for the fiscal year ending
June 30, 1993. This report includes financial statements prepared by Maze
& Associates, the independent auditors selected by the City council. The
financial section of the report includes an unqualified opinion issued by
Maze & Associates. The Transmittal Letter, contained near the beginning of
the report provides a good overview of the Financial Report.
In the past, the city has submitted its Annual Financial Report to State
and National organizations, which review it for conformance wi th desired
reporting standards. In the past the ci ty has recei ved awards from both
organizations and the format of this report was intended to continue to
qualify the city for this recognition. The city has been advised that the
california Society of Municipal Finance Officers (CSMFO), has announced
that the 1993 CAFR will receive an award for outstanding Financial
Reporting. The national organization typically does not announce its
results until later in the year.
The monthly in-house Financial Report for June 30, 1993 is submitted in its
"final" form.(Exhibit 2) This report reflects various adjustments required
in closing the books and preparing the CAFR. In this process certain
transactions were required to the previously adopted appropriations for
expenditures. The following details the required adjustments and the basis
for the change.
1. General Fund Park Maintenance Department:
An additional appropriation of $4,182 is required. The primary
reason this activity exceeded its annual budget was, due to the
increased cost for utilities (gas, electricity, and water).
Budget savings were available in the budgeted contingent reserve.
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ITEM NO. ~
COPIES TO: cory Biggs, Maze & Assoc.
}( REF a
CITY CLERK
FILE~
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2. Transfer From the Park Dedication Fund To Close out the SAFCO Grant
Fund (state Grant Used For Shannon Park Renovation 1989/1990 & Alamo
Creek Park 1990/1991)
The two Park projects were funded with a variety of funding
sources, including SAFCO State Park grants. Upon completion of
both :projects, the SAFCO Grant Fund (1219) in the City's
financ1al records has shown a small deficit balance. The city
received all of the Grant Funds it was entitled to receive under
the grant program. At the time that the expenses were recorded a
total of $727.28 in expenses were recorded in the SAFCO Fund,
which exceeded the Grant revenue. These expenses could have been
recorded in the Park Dedication Fund. The transfer recorded by
the Audi tor's transfers the $727.28 between the two funds, and
allows the SAFCO fund to be closed.
3. Transfer from the General Fund to the Transportation Development Act
(TDA 1211) Fund
In prior years the audits of the TDA expenses noted costs in
excess of the total grant funds allocated. This was related
primarily to administrative costs associated with the preparation
of indi vidual audi ts as required by this program. The audi t
noted that the deficit would be made up for through either
additional revenue, or an appropriate transfer from the General
Fund. A total of $13,666.01 was transferred to eliminate this
deficit. The City now budgets for both the TDA project cost,
plus the administrati ve audi t. The total of these items is
structured not to exceed the total Grant allocation.
As noted, the primary reason for the adjustments was the need to correct
prior year act1 vi ties. The Audi tors concurred wi th the related entries.
city council authorization of the entries will formally record them in the
city's accounting records.
The Management Letter (Exhibi t 3) along wi th the Financial Report were
reviewed by the city Council Audit subcommittee. This subcommittee
consists of councilmembers Houston and Howard. The Management Letter
contains suggestions by the Audi tors, for areas where internal control
could be strengthened. The Auditors explained to Staff and the
Subcommittee that during their review, they did not find any indication
that the current system caused any material weakness in the system. The
recommendations were primarily related to the relatively small staff
assigned to carry out the Finance duties.
Exhibit 4 outlines the staff response to the Auditor's recommendations. As
noted, Staff concurs with the first two recommendations. Although Staff
does not view Recommendation 13 as relevant, the issue has been addressed
by assigning the work to a different employee. The abili ty to have a
complete separation of duties will always be limi too by the number of
available staff.
staff recommends that the City council receive and file the reports and
authorize the additional appropriations. In the. event that there are
specific questions staff or the members of the city Council Subcommittee
will be available.
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CITY OF DUBLIN'S
FINANCIAL STATEMENTS
FOR
FISCAL YEAR ENDING 6/30/93
(FINAL - AFTER AUDIT)
11/5/93
Prepared by
The Finance Department
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BGLl02 CITY OF DUBLIN PAGE 1
11/04/93 BALAlfCE SHEET 9.26.06
FOR THE
PERIOD 7/92 'I'HROOGH 6/93
GKNERAL SPECIAL SPECIAL CAPIT.~L
REVENUE REVENUE ASSESSMENT IKPROVEMEHT
FIDlDS FUNDS FUHDS FUNDS
ASSETS
CASH 1722169.99- 464527.81 982797.69 102303.79
CASH WITH FISCAL AGENT 121210.04
UN.ij.jORTIZED BOND DISCOUNT 937.50
IlfVESTMEHTS AT COST 18616000.00
RECEIVABLES: TAXES 125238.82
ACCOUNTS (NET) 434904.99 185003 .71 121795.71
INTEREST 209757.22 750.50
ASSESSMENTS 1949.17 3293.79
RENTS
NOTES
DUE FROM OTHERS 266806.79 13716.27
INVElfl'ORY AT COST
PREPAID ITEMS 5844.71
FIXED ASSETS
AJolOUNTS TO BE PROVIDED 2232500.00
TOTAL ASSETS 17937320.04 665196.96 3339801.52 224850.00
LIABt FND BAL{ RETND EARNINGS
DEPOSITS FOR PRIV.~TE DEVELPMNT 18794.33-
DEPOSITS FOR AB1600 FEES 101548.46-
DEPOSITS OTHERS 164209.66- 3125.00-
PAYABLES:ACCOOHTS 1108857.77- 270042.15- 66161.52- 241H.78-
INTEREST
PAYROLL 114033.60-
DUE TO OTHERS 107866.18- 1190n . 60- 147729.19-
DEBT INSTRUMENTS PAYABLE 2790000.00-
TOTAL LIABILTIES 1513761.54- 389119.75- 2859286.52- 273422.43-
FUND BALANCES 16423558.50- 276077.21- 480515.00- 48572.43
TOTAL FOND EQUITY 16423558.50- 276077.21- 480515.00- 48572.43
TfIl'AL LIAB{FHD BAL{ RETD EARNS 17937320.04- 665196.96- 3339801.52- 224850.00-
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BGLl02 CITY OF DUBLIN PAGE 1
11/04/93 BALAlfCE SHEET 9.31.09
FOR THE
PERIOD 7/92 THROOGH 6/93
INTERN.a.L ENTERPRISE FIXED ~.ssETS GENERAL LONG
SERVICE FU!IDS GROUP OF TERM DEBT
FtJllD ACCOUNTS ACCOUNT GROUP
ASSETS
CASH 302723.73 417.33
CASH WITH FISCAL AGENT 1726901.55
UH.ij.jORTIZED BOND DISCOUNT
IBVESTHENTS AT COST
RECEIV~JBLES:TA.XES
ACCQOHTs (NET)
INTEREST 46871.38
1SSESSMENTS
REHTS
NOTES
OCE FROM OTHERS
IliVElfl'ORY AT COST
PREPAID ITEMS 114.26
FIXED ASSETS 165970.10 21623460.54 470014.62
~JlOUllTS TO BE PROVIDED 2548360.41
TOTAL ASSETS 468808.09 23397650..80 470014.62 2548360.41
LIABt FHO BAL, RETND EARNINGS
DEPOSITS FOR PRIVATE DEVELPHNT
DEPOSITS OTHERS
p.m~BLES:ACCOUNTS 3649.35- 25760.70-
INTEREST
PAYROLL
DUE TO OTHERS
DEBT INSTRUMENTS PAYABLE 18602851. 88- 2548360.41-
TOTAL LIABILITIES 3649.35- 18628612.58- 2548360. 41-
FUND BALANCE 296901.00- 340851.78
roHTRlBOTIONS 168257.74- 5109890.00-
INVESTMENTS IN FIXED ASSETS 470014 , 62-
RETAINED EARRINGS
TOT.a.L FUND EQUITY 465158.74- 4769038.22- 470014.62-
TOTAL LIAB{FIfD BAL{ RETD E}.RJ{S 468808.09- 23397650.80- 4i0014 .62- 2548360.41-
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BGLl04 THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1
11/04/93 REVENUES VERSUS EXPENDITURE 9.04.58
FOR THE
PERIOD 7/92 THROUGH 6/93
GENIltU REVENUE FUND
CURRElI'l' PERIOD
BUDGET !CTm.L PERCENT VARIJ.liCE
********REVEHUES*******
PROPERTY TAXES 3651323.00- 3659581.66- 100.2 8258,66
SALES TAX 5400000.00- 5484502.11- 101. 6 84502,11
REAL PROPERTY TRANSFERS 66000.00- 56171. 81 ~ 85.1 9828.19-
mliSIEHT ocaJPANCY TAX 96000.00- 90051.00- 93.8 5949.00-
FRANCHISE TAXES 451250.00- 585399.45- 129.7 134149.45
LICElfSES & PERMITS 225200.00- 281920.55- 125.2 56720.55
FINES & FORFEITURES 22000.00- 24414.26- 111. 0 2414.26
USES OF MONEY AND PROPERTY 1008450.00- 878968.50- 87.2 129481. 50-
INTERNGOVERHMElIT.a.L FROM STATE 918205.00- 919901. 92- 100.2 1696.92
CHARGES FOR SERVICES 1151045.00- 1020631. 29- 88.7 130413.71-
iYIHER SOURCES OF REVENUE 305246.04- 103865.30- 34.0 201380,74-
TOTAL REVENUE 13294719.04- 13105407.85- 98.6 189311.19-
*******EXPENDlTURBS*******
GENERAL GOVER1fMEHT ACTIVITIES:
ltON-DEPARTMElITAL 12647.00 121. 31 1.0 12525.69
CITY COUNCIL 1010 108302.15 108301.35 100.0 .80
CITY MANAGER 1020 472886.62 463249.36 93.0 9637.26
CITY ATTORNEY 1030 189575.34 179355.04 .94.6 . . _, 10220.30
~.DMDl SERVICES 1040 241748.67 205738.27 85.1 . 36010.40
BUILDING KAHAGEMENT 1050 334912,00 318444.50 95.1 16467.50
FACILITY RENTAL 1050-719 1718970.00 1575537.72 91. 7 143432.23
INSURANCE COST CENTER 1060 167021.00 167020.40 100.0 .60
ELECTIONS COST CENTER 1070 24339.00 24338.89 100.0 .11
ACTIVITY TOTAL 3270401.78 3042106.84 93.0 228294.94
PUBLIC SAFETY:
POLICE 2010 2956305.55 2920867,01 98.8 35433.54
CROSSING GUARDS COST 2020 35346.00 29621.76 83.8 5724.24
ARDIAL CONTROL 2030 119395.00 119394.97 100.0 .03
TRAFFIC SIGNALS 2040 69059.00 69058.82 100.0 .18
DISASTER PRRAPREDNESS 2050 41811.55 31913.09 76.3 9898.46
FIRE SERVICES JPA 2060 2672950.00 2630946.71 98.4 42003.29
ACTIVITY TOTAL 5894867.10 5801802.36 98.4 93064.74
TRANSPORTATION:
PUBLIC WORKS 3010 279822.91 269943.44 96.5 9879.47
STREET MAIHTEN}.NCE 3020 177674.00 170860.07 96.2 6813 .93
STREET SWEEPING 3030 .00 .00 .00
STREET TREE MAINTENANCE 3040 52630.00 43176.03 82.0 9453.97
STREET LANDSCAPE MAINT. 3050 124774.00 109774.40 88.0 14999.60
PARATRANSIT SERVICES 3060 1500.00 1500.00 100.0 .00
ACTIVITY TOTAL 636400.91 595253.94 93.5 41146.97
HElLTH & WELFARE:
VECTOR CONTROL 5010 7123.00 7123.00 100.0 .00
w}.5TE IBll~GEMENT 5020 2620.00 147.72 5.6 2472.28
ACTIVITY TOTAL 9743.00 7270.72 74.6 2472.28
CULTURE & LEISURE SERVICES:
LIBR\RY SERVICES 8010 164870.00 16,4870.00 100.0 .00
CULTURAL ACTIVITIES . 8011 8000.00 8000.00 100.0 .00
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GLl04 THE CITY OF DUBLIN STATEMENT SHOWING PAGE 2
11/04/93 REVENUES VERSUS EXPEJfDlTURE 9.04.58
FOR THE
PERIOD 7/92 THROUGH 6/93
GENER.l.L RmNOE FUND
CURRENT PERIOD
BUDGET ACTU.'ili PERCENT VARIANCE
HERITAGE CENTER 8012 12080,00 .00 12080.00
PARK KAINTOO.NCE 8020 571910.00 576091. 68 100,7 4181. 68-
COMMUHITY CABLE TV 8030 49000,00 49000.00 100.0 .00
RECREATION ~.DKIN. 8040 168879.36 162687.95 96.3 6191. 41
PLAYGROUNDS 8045 82442.71 68682.22 83.3 13760.49
SRADHONCEHTER 8050 112160.86 111826.43 99.7 334.43
PRESCHOOL 8055 36224.24 33067.80 91.3 3156. 44
TEENS PROGRAH 8060 28381.71 27790.34 97.9 591. 37
FIELD SCHEDULING 8065 112417.23 93676.99 83.3 18740.24
YOUTH SPORTS 8066 24879.00 22291.86 89.6 2587.14
SPECI.l.L EVENTS 8070 29680.22 28847.46 97.2 832.76
SENIOR CENTER 8080 104283.52 98558.66 94.5 5724.86
RECREATION INSTRUCTION 8090 86427.61 86972.02 100.6 544.41-
AQUATICS 8100 194219.42 201422,44 103.7 7203.02-
. ACTIVITY TOTAL 1785855.88 1733785,85 97.1 52070.03
COHMUHITY DEVELOPMENT:
PLAHHING 9010 954281.01 839824.09 88.0 114456.92
BUILDING SAFETY 9020 254027.46 246067.57 96.9 7959.89
ENGIHEERDlG 9030 282947.90 205915.31 72.8 77032.59
ECOHOMIC DEVELOPMENT 9040 29300.00 5340,98 18.2 23959.02
ACTIVITY TOT.a.L 1520556.37 1297147.95 85.3 . .:223408.42
CAPITAL IMPROVEMENT PROJECTS:
GEHERAL CIP PROJECTS 93HN .00 .00 .00
COflMUNITY IMPROVEMENTS 94NN 67000.00 61189.51 91.3 5810.49
PARKS 95NH 21842.00 14005.38 64.1 7836.62
STREET CONSTRC/IMPROVHT 96HN 389801.00 129044.57 33.1 260756. 43
ACTIVITY TOTAL 478643.00 204239.46 42.7 274403.54
TOT A L EXPENDITURES 13596468.04 12681607.12 93.3 914860.92
EXCESS <REVENUE>EXPKNDlTURES 301749,00 423800.73- 140.4- 725549.73
TRANSFERS IN FROM OTHER FUNDS .00 481272.02- 481272.02
TRANSFERS OUT T{) OTHER FONDS 6715.00 39985.33 595.5 33270.33-
EXCESS <REVENUE> EXPENDITURE 308464.00 865087.42- 280.5- 1173551. 42
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BGLl04 THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1
11/04/93 REVENUES VERSUS EXPEIfDITURE 9.07.56
FOR THE
PERIOD 7/92 THROUGH 6/93
SPECL~ REVENUE FUllDS
CURREB'l' PERIOD
BUDG ET ACTUAL PERCENT VARIANCE
********REVENUES*******
SALES TAX 108000.00- 110838.07- 102.6 2838.07
FINES & FORFEITURES 34730.00- 26366.25- 75.9 8363.75-
USES OF MONEY AND PROPERTY 12530.00- 26829.68- 214.1 14299.68
INTERNGOVERNHENTAL FROM STATE 1551406.00- 1735267.71- 111. 9 183861. 71
INTERGOVERNMENTAL FROM COUNTY 635.00- 634.50- 99.9 .50-
INTERGOVERNMENTAL FROM FEDERAL 224890.00- 144631.51- 64.3 80258.49-
CHARGES FOR SERVICES 144900.00- 150932.61- 104.2 6032.61
OTHER SOURCES OF REVENUE 15000.00- 6027.43- 40.2 8972.57-
TOTAL REVENUE 2092091.00- 2201527.76- 105.2 109436.76
*******EXPEHDlTURES*******
GENERAL GOVERNMENT ACTIVITIES:
NON.DEPARTMEHTAL .00 .00 .00
CITY COOHCIL 2600.00 2600.00 100.0 .00
CITY MANAGER 24459.00 21204.93 86.7 3254.07
CITY ATTORNEY 113.00 112.50 99.6 .50
ACTIVITY TOTAL 27172.00 23917.43 88.0 3254.57
PUBLIC SAFETY:
POLICE 13942.00 8296.76 .59.5 5645.24
TRAFFIC SIGNALS 25084.00 25084.00 100.0 :.00
ACTIVITY TOTAL 39026.00 33380.76 85.5 5645.24
Tlt1.NSPORTATtON:
STREET MAINTENANCE 169530.00 142153.44 83.9 27376.56
STREET SWEEPING 67500.00 64299.96 95.3 3200.04
STREET LANDSCAPE MAINTEN~.HCE 78106,00 78106.00 100.0 .00
ACTIVITY TOTAL 315136.00 284559.40 90.3 30576.60
HEALTH & WELFARE:
WASTE MANAGEMENT 88170.00 69458.04 78.8 18711.96
CULTURE & LEISURE SERVICES:
COMMUHITY DEVELOPMENT:
PLANNING .00 .00 .00
ENGINEERING 124482.00 106098.05 85.2 18383.95
ACrrVITY TOTH 124482.00 106098,05 85.2 18383.95
CAPITAL IMPROVEMENT PROJECTS:
GENERAL CIP PROJECTS 9700.00 252.21 2.6 9447.79
COfOOJNITY IMPROVEMENTS 164795.00 22978.00 13.9 141817.00
PJ..RKS 148931. 00 32599.14 21.9 116331.86
STREET OONSTRUCTIOH/IHPROVMT 1304228.00 1276716.86 97.9 27511.14
ACTIVITY TOTAL 1627654.00 1332546,21 81.9 295107.79
TOT A L EXPENDITURES 2221640.00 1849959.89 83.3 371680.11
EXCESS <REVEHUE>EXPENDITURE 129549.00 351567.87- 271. 4- 481116.87
TRANSFERS IN FROM OTHER FUNDS ,00 14393.29- 14393.29
WJlsFERS OUT TO OTHER FtrnDS .00 65768.99 65768.99-
EXCESS <REVENUE> EXPENDITURE 129549.00 300192.17- 231.7- 429741.17
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BGLl04 THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1
11/04/93 REVENUES VERSUS EXPElfDlTURE 9.11.12
FOR THE
PERIOD 7/92 THROOGH 6/93
SPECIAL ASSESSMEN'l' FUllDS
CURRENT PERIOD
BUDGET ACTUlL PERCENT VARIANCE
********REVENUES*******
SPECIAL BENEFITS ASSESSMENTS 331629.00- 429912.28- 129.6 98283.28
USES OF MOHEY AND PROPERTY 14580.00- 49204.17- 337.5 34624.17
aI'HER SOURCES OF REVENUE 4900.00- 2722.57- 55.6 2177 .43-
TfIl'AL REVENUE 351109.00- 481839.02- 137.2 130730.02
*******EXPEHDlTURES*******
GENERAL GOVElOOIENT ACTIVITIES:
NOll-DEPARTMENTAL 218764.00 169119.54 77,3 49644.46
FINANCE DEPARTMENT 4500.00 .00 4500.00
ACTIVITY TOTAL 223264.00 169119.54 75.7 54144.46
PUBLIC SAFETY:
TRFC SIGS/STREET LIGHTING 179806.00 179805.95 100.0 .05
. ACTIVITY TOTAL 179806.00 179805.95 100.0 .05
TR!1fSPORTATION:
PUBLIC WORKS 618.00 616.39 99.7 1.61
STREET TREE MAINTENANCE 11191.00 6984.53 62.4 4206.47
STREET LANDSCAPE MAINTENANCE 123103.00 111427.08 90.5 11675.92
ACTIVITY TOTAL 134912.00 119028.00 88.2 15884.00
HEALTH & WELFARE: - ,
CULTURE & LEISURE SERVICES:
PARK MAIllTEHANCE .00 .00 .00
ACTIVITY TOTAL .00 .00 .00
COMMUllITY DEVELOPMENT:
ENGIllEERIllG 11053.00 6347.50 57.4 4705.50
ACTIVITY TOTAL 11053.00 6347 .50 57.4 4705.50
CAPITAL IMPROVEMEH'l' PROJECTS:
COHMUNITY IMPROVEMENTS 7051.00 2470,99 35.0 4580.01
STREET COHSTRUCTION/IKPROVMT 15.00 15.00 100.0 .00
ACTIVITY TOTAL 7066.00 2485,99 35.2 4580.01
TOT A L EXPENDITURES 556101.00 476786.98 85.7 79314 .02
EXCESS<REVEHUE>EXPENDITURE 204992.00 5052.04- 2.5- 210044.04
TRANSFERS OUT TO OTHER FUNDS .00 400667.31 400667.31-
EXCESS <REVENUE> EXPENDITURE 204992.00 395615.27 193.0 190623.27-
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BGL104 THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1
11/04/93 REVENUES VERSUS EXPEHDITURE 9.22.34
FOR THE
PERIOD 7/92 THROUGH 6/93
CAPIT1L IMPROVEMENT FUND
CURRElIT PERIOD
BUDGET ACTUAL PERCElfT V!RU.HCE
********REVEHUES*******
USES OF MONEY AND PROPERTY 10290.00- 36957.49- 359.2 26667,49
OTHER SOURCES OF REVENUE 132298.00- 55365.58- 41.8 76932.42-
TfIl'AL REVENUE 142588.00- 92323.07- 64.7 50264.93-
*******EXPENDITURES*******
GEHmt~ C{}V]RHHENT ACTIVITIES:
NOH-DEPARTMENTAL .00 1181258.00- 1181258.00
~.CTIVITY TOT~.L .00 1181258.00- 1181258.00
PUBLI C s~.FETY:
TR.l.HSPORUTIOH:
HE..1.LTH & WELFARE:
CULJURE & LEISURE SERVICES:
COKKUlfITY DEVELOPMENT:
EllGINEERING .00 ,00 .00
ACTIVITY TOTAL .00 .00 .00
CAPITAL IMPROVEMENT PROJECTS:
COHMUlHTY IMPROVEMENTS 11000.00 11000.00 100.0 .00
PARKS .00 .00 .00
STREET COHSTRUCfION/IMPROOO 1192482.00 2320873.36 194.6 .1128391. 36~
ACTIVITY TOTAL 1203482.00 2331873.36 193.8 1128391.36-
TOT A L EXPENDITURES 1203482.00 1150615.36 95.6 52866.64
EXCESS<REVEHUE>EXPENDITURE 1060894.00 1058292.29 99.8 2601.71
TRANSFERS IN FROM OTHER FlllIDs .00 10437.oo~ 10437.00
EXCESS <REVENUE> EXPENDITURE 1060894.00 1047855.29 98.8 13038. il
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BGL104 THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1
11/04/93 REVENUES VERSUS EXPENDITURE 9.14.45
FOR THE
PERIOD 7/92 THROOGH 6/93
INTERNAL SERVICE FUND
CURRENT PERIOD
BUDGET AC'I'm.L PERCENT VARIANCE
********REVEHUES*******
USES OF MONEY AND PROPERTY 14250.00- 13286.21- 93.2 963.79-
CHARGES FOR SERVICES 143994.00- 131109.60- 91.1 12884.40-
OTHER SOURCES OF REVENUE 3000.00- 13443.00- 448.1 10443.00
TOTAL REVENUE 161244.00- 157838.81- 97.9 3405.19.
*******EXPENDITURES*******
GENERAL GOVERNMENT ACTIVITIES:
NON. DEPARTMENTAL 272041.00 138639.50 51.0 133401.50
ACTIVITY TOTAL 272041.00 138639.50 51.0 133401.50
PUBLIC SAFETY:
POLICE .00 .00 .00
ACTIVITY TOT}.L .00 .00 .00
TRANSPORTATION:
HEALTH' WELFARE:
CULTURE & LEISURE SERVICES:
CQHMUNITY DEVELOPMENT:
CAPITAL IMPROVEMEDT PROJECTS:
GENERAL CIP PROJECTS 28715.00 .00 28715.00
ACTIVITY TOTAL 28715.00 .00 . .; 28715.00
TOT A L EXPENDITURES 300756.00 138639.50 46.1 162116.50
EXCESS<REVEHUE>EXPENDITURE 139512.00 19199.31- 13.8- 158711.31
TRANSFERS IN FROM OTHER FUNDS 6715,00- .00 6715.00-
TRAlfSFERS OUT TO OTHER FUNDS .00 26000.00 26000.00-
EXCESS <REVENUE> EXPENDITURE 132797.00 6800.69 5.1 125996.31
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BGLl04 THE CITY OF DUBLIN STATEMENT SHOWING P.~GE 1
11/04/93 REVENUES VERSUS EXPENDITURE 9.18.30
FOR THE
PERIOD 7/92 THROGGH 6/93
ENTERPRISE FUNDS
CURRENT PERIOD
BUDGET ACTUAL PERCENT VARHliCE
********REVEHUES*******
USES OF MONEY urn PROPERTY 1859697.00- 1831356.25- 98.5 28340.75-
TOTAL REVENUE 1859697.00- 1831356.25- 98.5 28340.75-
*******EXPEHDlTURES*******
GE:IfERAL GOVERHHEHT ACTIVITIES:
HON-DEPARTMENTAL 1719027.00 3712918.17 216.0 1993891.17-
CITY WAGER 3625.00 3547.83 97.9 77.17
FINAHCE DEPARTMEl!T 9839.00 9838.38 100.0 .62
ACTIVITY TOTAL 1732491.00 3726304.38 215.1 1993813.38-
PUBLIC SAFETY:
DISASTER PRE.~REDNESS 1700.00 1045.94 61.5 654.06
ACTIVITY TOTAL 1700.00 1045.94 61.5 654.06
TR.llfSPORTATIOH: -
HEALTH , WELn.RE:
CULTURE & LEISURE SERVICES:
RECREATION ADMINISTRATION 11360.00 11389.58 100.3 29.58-
SENIOR CENTER 500.00 396.11 79.2 103.89
~.crIVITY TOTAL 11860.00 11785.69 99.4 74.31
CQMMUlfITY DEVELOPMENT: - .
CAPITAL IMPROVEMENT PROJECTS:
TOT A L EXPENDITURES 1746096.00 3739181.01 214.1 1993085.01-
EXCESS<REVEHUE>EXPEHDITURES 113601.00- 1907824.76 1679.4- 2021425.76-
TRAlfSFERS IN FROM OTHER FUNDS .00 26319.32- 26319.32
EXCESS <REVENUE> EXPENDITURE 113601.00- 1881505.44 1656.2- 1995106.44- '
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CITY OF DUBLIN
RECOMMENDATIONS FOR IMPROVEMENTS
IN INTERNAL CONTROLS
FOR THE YEAR ENDED JUNE 30, 1993
I '1VJ~ZE &
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ACCOUNTANCY CORPORATION
1670 Riviera Avenue -Suite 100
Walnut Creek, California 94596
(510) 930-0902. FAX 930-0135
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Honorable Mayor and Members of the
City Council of the City of Dublin, California
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We have audited the general purpose financial statements of the City of Dublin for the year ended June 30,1993,
and have issued our report thereon dated October 11,1993. As part of our audit, we made a study and evaluation
of the system of internal accounting control to the extent we considered necessary to evaluate the system as
required by generally accepted auditing standards. The purpose of our study and evaluation was to determine
the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the financial
statements. Our study and evaluation was more limited than would be necessary to express an opinion on the
system of internal accounting control taken as a whole.
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Management is responsible for establishing and maintaining a system of internal accounting control. In fulfilling
this responsibility, estimates and judgments by management are required to assess the expected benefits and
related costs of control procedures. The objectives of a system are to provide management with reasonable but
not absolute assurance that assets are safeguarded against loss from unauthorized use or disposition, and that
transactions are executed in accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted accounting principles.
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Because of inherent limitations in any system of internal accounting control, errors or irregularities may
nevertheless occur and not be detected. Also, projections of any evaluation of the system to future periods is
subject to the risk that procedures may become inadequate because of changes in conditions or that the degree
of compliance with the procedures may deteriorate.
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Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily
disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of
internal accounting control of the City taken as a whole. Our study and evaluation disclosed no condition that
we believe to be a material weakness. However, our study and evaluation disclosed the following areas in which
internal controls could be strengthened.
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A Professional Corporation
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CITY OF DUBLIN
RECOMMENDATIONS FOR IMPROVEMENTS IN INTERNAL CONTROLS
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Recommendation 1 - The Assistant City Manager should continue to be deeply involved with the
Finance Department functions.
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As noted in prior year audits, adequate segregation of duties does not exist in the Finance Department, because
of the small number of employees. One Finance Technician maintains vendor files, prepares accounts payable
detail records and handles signed vendor checks. Another Finance Technician prepares and maintains billing
detail records and handles cash receipts. Both technicians have access to the general ledger systems and can
interchange with each other.
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At the start of this year's audit we were concerned about this concentration of duties. Therefore, we paid
particular attention to the effect of this concentration on internal control and we designed our audit tests and
internal control evaluations accordingly. We were able to satisfy ourselves that the involvement, supervision and
review by the Assistant City Manager appears to adequately mitigate the weaknesses brought about by the
concentration of Finance Technician duties: However, because of this concentration of duties, the Assistant City
Manager must remain deeply involved in Finance Department functions.
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Recommendation 2 - Duties among the two Finance Technicians should be rotated periodically.
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Due to the concentration of duties in the Finance Department, the City should rotate duties among the Finance
Technicians. Such a rotation would increase the ability of the Finance Department to respond to the City's needs
and would strengthen internal controls.
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Recommendation 3 - The Payables Finance Technician should not affix a signatory stamp to vendor
checks.
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The Payables Finance Technician prepares purchase orders, warrant registers and warrants, inputs vendor data
into the payables system and stamps warrants with the Mayor's signature stamp. We are aware that this second
signature is performed after warrants are signed by the City Manager or Assistant City Manager. However, this
second signature provides no control and the City should reassign the second signature to someone else or stop
using it.
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We would be pleased to discuss our recommendations further with you at your convenience. We also wish to
express our appreciation for the courtesy and cooperation extended to us by Paul Rankin and his staff during our
audit. ~/4~
October 11,1993
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CITY OF DUBLIN
MEMORANDUM
TO: Mayor and Members of the city council
FROM:lVYRiChard c. Ambrose, city Manager
RE:' Staff Response To Maze & Associates Manageaent Letter
Transmitted With The Audited Financial Report for 6/30/93
DATE:
February 7, 1994
As part of their annual Audi t Maze & Associates have made three
reccDlJllendations reqarding potential changes, which would strengthen
Internal Controls. As explained in their letter, any system is largely
affected by a comparison of the cost to implement add~tional controls
and the benefit derived from this investment.
The following responses are presented in the same order as the Auditor's
recommendations.
I 1. The Assistant city Manager should continue to be involved with the
Finance Departaent functions.
staff concurs with this finding. Due to the extremely small
administrative staff this is a necessity. The amount of time required
to assure that the financial activities are operating appropriately,
will impact the Assistant city Manager's ability to undertake other
assignments. As noted by the Auditor's, the review of this issue was
initiated. out of a concern for regarding the concentration of duties
within the newly implemented Administrative Services Department. staff
will continue to evaluate staffing conditions and .ake recowaendations
to the City Council as appropriate.
I 2. periodically rotate duties among the two Finance Technicians.
As noted by the AUditors this would assure cross training and strengthen
internal controls. The concept of cross training within the
organization is not a new one. At the present time both positions are
familiar with the duties of their counterpart. This allows us to
operate during absences due to illness or vacations. Given that the
AdlIlinistrati ve Services Department structure was only implmaented. in
June of 1993, Staff believes it Jl8Y be premature to make further changes
in assignaents. This recommendation will be reviewed and considered in
the future.
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13. Alter the personnel assigned to affix a signatory stamp to vendor
checks.
The Staff does not foresee the issue raised by the Auditor as
significant. The Auditor has suggested that the past practice did not
offer any additional control to the process. It was their suggestion
that add! tional control would be achieved by assigning the task to
another person. The Auditor also suggested. that if control was not an
issuet the city could consider discontinuing the practice of affixing a
stamp with the Mayor's signature.
The Ci ty of Dublin began using the stamped signature in response to
difficulties encountered in assuring that the Mayor could always be
available to sign payments. Government Code Section 37203 provides that
the Mayor shall sign all warrants. This section does provide for local
JIlOdification to this requirement upon adoption of a City Council
Resolution.
In 1988, the city Council adopted such a resolution. It calls for one
manual signature and the Mayor's facsimile signature on all General
warrants. Internal procedures require the .anual signature, prior to
the Mayor's faesi_ile signature. Prior to generating the check the
invoice is reviewed. to determine budget authorization by the Finance
Technician and it is reviewed and. authorized. by the Depart.-ent Head.
The Assistant city Manager must also sign off on the claIm form before
any signatures are placed on the check.
staff has responded to this issue by assigning the facsi.ile signature
duties to the part-tille Office Assistant II. This assures that the
Finance Technician preparing the payaents is not invel ved in the
signature process.
The staff appreciates the independent input from the external auditors
and their interest in i.prave.ents to our financial systems.
cc: cory Big9s, Maze & Associates