Title
Authorizing City Council's Committee on Finance to conduct a full and comprehensive investigatory public hearing to review the corrective audit of the consolidated cash account as well as the accompanying corrective action plan upon completion of the audit performed by the firm Horsey, Buckner & Heffler, LLP.
Body
WHEREAS, Timely bank reconciliations are a basic, normal and critical component of a set of "internal controls" that public companies, municipalities, and other large organizations employ and are required to have; and
WHEREAS, Internal controls are intended to identify and thwart "errors and irregularities" and to "safeguard assets" as irregularities include theft and fraud; and
WHEREAS, Errors and irregularities within the cash disbursement system cannot be found without a timely bank reconciliation, which is employed to safeguard assets as part of a normal set of internal controls; and
WHEREAS, Timely bank reconciliations uncover the difference between the bank's balance and the organization's cash balance in its general ledger; and
WHEREAS, Reconciling differences include outstanding checks (not cashed), deposits in transit, bank charges and credits not booked and other, miscellaneous differences; and
WHEREAS, If there are errors (transposition of numerals) or irregularities (theft or fraud) they may be found through the reconciliation process; and
WHEREAS, There are at least four general ledger accounts that the City has not reconciled for several years; and
WHEREAS, During the course of the budget hearings for fiscal year 2019, it has become clear that multiple Administrations have failed to ensure that all of the City's accounts are reconciled in a timely manner and such unreconciled accounts involve billions of dollars; and
WHEREAS, The "Office of the City Treasurer Auditor's Report" for fiscal years 2005-2006, produced by the Office of the Controller on August 29, 2008 indicated that the "Treasurer had n...
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