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File #: 180582    Version: 0 Name:
Type: Resolution Status: IN COMMITTEE
File created: 5/24/2018 In control: Committee on Finance
On agenda: Final action:
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.
Sponsors: Councilmember Domb, Councilmember Taubenberger, Council President Clarke, Councilmember Quiñones Sánchez, Councilmember Jones, Councilmember Bass, Councilmember Green, Councilmember Henon, Councilmember Blackwell, Councilmember Oh, Councilmember Johnson, Councilmember Greenlee, Councilmember Squilla, Councilmember Gym
Attachments: 1. Signature18058200.pdf
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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