MEMORANDUM
To: Legal & Finance Committee
From: Mayor Sam Kooiker
Date: January 15, 2014
Subject: Status of Implementation of Compass Recommendations
Our office has been working with the lead auditor of Compass Independent Audit, Kelan Kelly, and our Department Directors to provide you with a status report of the implementation of the recommendations from the Compass Committee. The first two reports have been acknowledged by the City Council and the third report will be brought forward to City Council on January 21, 2014. I have asked staff to proceed with implementation of these items as most are low cost initiatives and include non-intensive staff training and internal policy changes. Below is an update on the status of each.
Status of Implementation of Compass Recommendations
Cash Handling Audit I
dated February 2013; acknowledged by City Council on April 1, 2013
1. City Finance Cash Handling Guidelines developed with written cash handling policies & procedures
· Finance Office – The first draft is complete and is going through an internal review process.
2. Draft Department specific policies and procedures to address controls listed in the report
*All departments ‘in process’ below are pending policy approval which is currently in review process (see recommendation no. 1).
· Airport – In process
· Civic Center – Implemented
· Community Planning – In process
· Community Resources (GIS and Risk Management) – Implemented
· Fire - In process
· Library - Implemented
· Parks and Recreation - Implemented
· Police – In process
· Public Works (Engineering, Solid Waste, Water, Transit) - In process
3. City Finance to develop a complete and accurate list of all petty cash and change funds
· Finance – Resolution re-establishing funds is on the 1/6/2014 council agenda
4. City Finance to develop a process for review of Cash Handling receipts (review for missing voided or cancelled receipts) generated
· Finance – Pending review process
5. Segregate cash handling duties where possible and implement mitigating controls where resources are limited.
· Airport – Implemented
· Community Planning and Development (if dept. continues to receive cash) – In process
· Community Resources (If dept. continues to receive cash) – Implemented
· Finance – Implemented
· Fire – In process
· Library – Implemented
· Parks and Recreation (Swim Center, Cemetery, Golf Courses) – Implemented
· Police (Evidence, Records, RASP and Fingerprinting) – Implemented
· Public Works (Water and Transit) – Implemented
6. Safeguard cash with safes & lockboxes
· Community Planning and Development (If dept. continues to receive cash) – In process
· Community Resources (If dept. continues to receive cash)- Implemented
· Library – Implemented
· Parks and Recreation (Golf Courses and Cemetery)- Implemented
· Public Works (Water) - Implemented
7. Restrictively endorse checks immediately upon receipt
· Community Planning and Development (If dept. continues to receive cash)- In process
· Community Resources (If dept. continues to receive cash) - Implemented
· Fire- Implemented
· Library- Implemented
· Parks and Recreation (Swim Center, Cemetery Meadowbrook Golf) – Implemented
· Police (Evidence, Records, RASP and Fingerprinting) - Implemented
· Public Works (Water and Transit) - Implemented
8. Require payments for products and services to be made by mail or at the Finance Office (Applies to Community Planning and Development, GIS, Risk Management, Public Works Engineering and Water Division)
· Community Planning and Development (planning fees)- In process
· Community Resources (GIS and Risk Management) - Implemented
· Public Works (Engineering)- In process
9. Develop and implement cash handling monitoring procedures to ensure records are complete and accurate and that cash and change funds are accurate, reasonable and sufficient
· Airport - Implemented
· Civic Center - Implemented
· Community Planning and Development (If dept. continues to receive cash) - In process
· Community Resources (If dept. continues to receive cash) - Implemented
· Finance – Pending Review
· Fire – In Process
· Library - Implemented
· Parks and Recreation - Implemented
· Police (Evidence, Records, and Fingerprinting) – Implemented
· Public Works (Water, Transit and Solid Waste) - Implemented
10. Develop and provide training on proper internal controls for all City employees with cash handling responsibilities (Applies to Finance Office only).
· Finance – Pending Review
City Wide Charge Account Audit
dated August 2013; acknowledged by City Council on September 16, 2013
1. City Finance to develop purchasing policies and procedures
· Finance – Estimated time of completion no earlier than last quarter of 2014 and no later than first quarter 2015
2. City Finance to develop ordinance to require vendors to register with the City before allowing purchasing to be made on account
· Finance – Estimated time of completion no earlier than last quarter of 2014 and no later than first quarter 2015
3. City Finance to develop guidelines and requirements and policies and procedures for vendors
· Finance – Estimated time of completion no earlier than last quarter of 2014 and no later than first quarter 2015
4. Human Resources to implement a process to provide some or all City employees with City issued identification
· All Departments- Human Resources and Finance are working with Compass lead auditor to explore options.
Cash Handling Audit II – Draft – November 2013: Same recommendations as Cash Handling Audit No. 1 to include 10 additional City locations that accept money. Audit recommendations to be presented to the Compass Committee on January 13, 2014 and submitted to City Council January 21, 2014 for acknowledgement.
1) City Finance Cash Handling Guidelines developed with written cash handling policies & procedures
· Finance Office – Pending Review
2) Draft Department specific policies and procedures to address controls listed in the report
· Library – Implemented
· Parks and Recreation – Implemented
· Public Works (Water Reclamation and Utility Maintenance) - In process
3) City Finance to develop a complete and accurate list of all petty cash and change funds
· Finance – Resolution re-establishing funds is on the 1/6/2014 council agenda
4) City Finance to develop a process for review of Cash Handling receipts (review for missing voided or cancelled receipts) generated
· Finance – Pending review process
5) Segregate cash handling duties where possible and implement mitigating controls where resources are limited.
· Public Works (Water Reclamation and Utility Maintenance) – Implemented
6) Payments for tap fees be received and processed at the Utility Maintenance Facility
· Public Works (Utility Maintenance) – Implemented
7) Restrictively endorse checks immediately upon receipt
· Library (Western Dakota Tech Branch) – Implemented
· Parks and Recreation (outdoor pools and tennis) – Implemented
8) Develop and implement cash handling monitoring procedures to ensure records are complete and accurate and that cash and change funds are accurate, reasonable and sufficient
· Library – Implemented
· Parks and Recreation – Implemented
· Public Works - Implemented
9) Develop and provide training on proper internal controls for all City employees with cash handling responsibilities (Applies to Finance Office only)
· Finance – Pending Review