Vincent Farnsworth 7:30 p.m., April 24
2005 Audit Shows Internal Accounting Weaknesses; Despite Some Headway, Many More Improvements Must Be Made, Says Accounting Firm
The city council's audit committee today (January 28) was provided the City audit report of governmental and business-type activities for the year ended June 30, 2005. The auditor, Macias Gini & O'Connell, reported "significant deficiencies" in internal control over financial reporting. The deficiencies could "adversely affect the City's ability to record, process, summarize, and report financial data," said the firm. Among the weaknesses: preparation of the annual financial statement, pension accounting, risk management, procurement, accounts receivable, and information technology. The firm noted that prior to the issuance of the report, the City had hired new financial personnel and changed procedures. There has been some progress, but "many more improvements need to be made to financial reporting controls," said the firm.