Title
Adding a Section 19-101 to The Philadelphia Code, entitled "Adequate and Modern Accounting System," by providing a requirement for an adequate and modern accounting system for the City government and a requirement that material weaknesses and significant deficiencies reported by the City Controller be addressed; all under certain terms and conditions.
Body
WHEREAS, Philadelphia's Home Rule Charter places responsibility for the City of Philadelphia's accounting and reporting functions with the Office of the Director of Finance; and
WHEREAS, City Controller Rebecca Rhynhart in her, "Report On Internal Control And On Compliance And Other Matters City Of Philadelphia Fiscal Year 2017," concluded that, "Inadequate financial reporting oversight and ongoing staffing shortages led to errors totaling $923.7 million not detected by the Finance Office. Also, there were weak cash controls in the Treasurer's Office, including not reconciling the city's consolidated cash account, as well as other accounts. Non-reconciliation of the consolidated cash account, which was noted in the current and previous two internal control reports, led to a $33.3 million variance between the city's book and bank balances. These findings are significantly and deeply concerning, and they require action and urgency from the administration;" and
WHEREAS, The City Controller further, more specifically found that, "Accountants in the Finance Office lacked a comprehensive financial reporting system to prepare the CAFR [Comprehensive Annual Financial Report]. Instead, accountants produce the CAFR using numerous Excel, Lotus 1-2-3 (a program that has been discontinued and unsupported since 2014), and Word files with various links between the files. Using multiple linked files creates a cumbersome process which can adversely affect the accuracy and completeness of the CAFR;" and
WHEREAS, The City Controller has recommended that, "Finance Office management either hire more acco...
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