MEETING OF COUNCIL - Town of Cambridge

More documents

Recommendations

Info

COUNCIL MINUTES TUESDAY 27 NOVEMBER 2012 AU12.5 INTERIM REPORT FOR THE YEAR ENDED 30 JUNE 2012 PURPOSE OF REPORT: To consider the auditor’s interim audit report for the year ended 30 June 2012. BACKGROUND: As part of the annual audit program, the Town’s auditors conduct an interim audit each year and provide a management report on any issues identified. The Town has received the management report including the comments from the Town’s representatives in relation to the matters identified during the conduct of the interim audit. A copy of this Interim Audit Management Report is included as an attachment to this report. DETAILS: The interim audit covered a review of the accounting and internal control procedures in operation, as well as testing of transactions in the following areas:- • Rate receipts and rate debtors • Receipts and sundry debtors • Bank reconciliations • Purchase of goods and services • Payments and creditors • Payroll • General accounting and information system controls • Investments • Registers (Tender Register and Register of Financial Interests) The review also examined some compliance matters under local government statutory provisions. In conclusion, the Auditors reported that their review indicates that the controls in place were operating satisfactorily. Representatives from Macri Partners will be in attendance at the Audit Committee meeting to discuss the results of the interim audit and to answer any questions. In order to assist in improving internal controls, the following items have been brought to the Town’s attention, as follows:- Purchasing and Payments It was noted that the three purchasing officers within the Town also have the ability to purchase goods or services. Management Comments: The quantities or amount of goods and services purchased by the three officers in question is limited. Purchase limits are: Finance Officer - Purchasing $3,000 H:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\NOVEMBER 2012\D AU.DOCX 197
COUNCIL MINUTES TUESDAY 27 NOVEMBER 2012 Administration Officer - Depot $3,000 Procurement Co-ordinator - Depot $7,000 A report detailing items purchased by the officers can be generated and reviewed to minimise the risk of error and fraud from occurring. Finance Officer - Purchasing It has been determined that the finance officer - purchasing does not require a purchasing authority as purchases made to date have been mainly general stationery items, which can be ordered by other staff members with purchasing authority. This purchasing authority will therefore be cancelled. Purchasing Officers - Depot The two purchasing officers located at the depot, have a dual responsibility in that they process and release purchase orders on behalf of the Town's outside crew staff members but can also purchase items up to the value of $7,000 and $3,000 respectively in their own right, as they also manage the depot's inventory system. In order to control and monitor purchases made, a report will be generated for each officer showing items requisitioned and purchased during the year using their purchasing authority. The review of this report will be included in the internal audit plan to ensure it is regularly reviewed. Currently stock on hand is $36,000 and represent items of low value which are predominantly for use by outside crews. During the year in review, the respective officers requisitioned and ordered $456k which predominantly included waste removal services. This issue is still being reviewed by the administration. Rates It was observed that there were no outstanding rates ageing report. We were therefore unable to verify the proportion of long outstanding rates debtors and ascertain the follow up process in respect to the collectability of these balances. The absence of an outstanding rates ageing report would impact on the monitoring process over the efficiency of recovering long outstanding rates receivables. We recommend that management give this matter due attention and ensure that an outstanding rates ageing report be produced and reviewed by an independent officer on a periodic basis in order to enhance the rates receivables process. Management Comments: Council's current property and rating system "Proclaim Classic" is quite limited in its reporting capabilities and the Town has had consultants writing customised reports. The rates trial balance was one of those reports, however it was not functioning properly as at year end. The consultant has since resolved the issue and the rates trial balance is now able to be generated again and is functioning properly. A review of the rates trial balance as at 7 November 2012 indicates that $105,271 of rates and charges are outstanding for the 2011/2012 financial year. This represents 0.4% of the $23.3 million raised at the commencement of the year. A total amount of $17,323 of rates and charges raised prior to 2011/2012 are still outstanding. All outstanding rates are being reviewed and followed up. H:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\NOVEMBER 2012\D AU.DOCX 198
Page 1 and 2:
Council Minutes 27 NOVEMBER 2012
Page 3 and 4:
COUNCIL MINUTES TUESDAY 27 NOVEMBER
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150: COUNCIL MINUTES TUESDAY 27 NOVEMBER
Page 199: COUNCIL MINUTES TUESDAY 27 NOVEMBER
Page 223 and 224: COUNCIL 27 NOVEMBER 2012 The projec
Page 225 and 226: COUNCIL 27 NOVEMBER 2012 10.2 FORME
Page 227 and 228: COUNCIL 27 NOVEMBER 2012 COMMUNITY
Page 229 and 230: COUNCIL 27 NOVEMBER 2012 11. URGENT
show all

MEETING OF COUNCIL - Town of Cambridge

Create successful ePaper yourself

Delete template?

Save as template?