MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTES
TUESDAY 27 NOVEMBER 2012
Sundry Debtors
A review of the sundry debtors invoices listing showed that invoices were not listed in
numerical sequence and numerical control over sundry debtor invoices was unable to be
ascertained. There is a risk that invoices raised may not be accounted for within the system
and may result in loss of revenue.
Management Comments:
The debtors system is decentralized in that other locations apart from the administration
centre are able to generate debtors invoices in the system. These locations include
"community development operational; area", "Senior Services", "Wembley Community
Centre" and "The Boulevard Centre".
When invoices are raised and generated within the system, they are issued in sequence.
However given that the system caters for various locations, they may not be filed or recorded
in sequence at each location.
A query can be generated in the system to check on invoices generated and sequence
numbers as a means of control.
Payroll
A review of the "Employee Accruals Entitlement" report highlighted that there were sixteen
employees with outstanding annual leave entitlements in excess of eight weeks to a
maximum of sixteen weeks.
It was recommended that any annual leave deferred be approved in writing by the Chief
Executive Officer or by the Council as appropriate.
Management Comments:
A fortnightly employee accrued leave report is generated by payroll and distributed to
executive management for review and actioning. This report shows those employees with
leave in excess of three hundred hours or eight weeks leave.
A comparison of accrued annual leave for those employees who have in excess of three
hundred hours as at 30 June 2012 with leave outstanding as at 30 June 2011 shows that
hours have reduced from 12,234 hours to 10,591 hours, a reduction of 1,643 hours or
13.5%.
Addressing the issue of excessive leave is an ongoing exercise and employee leave reports
will continue to be distributed to management to keep them informed and manage those
employees concerned. This should see leave hours being reduced back to within
manageable levels.
General Accounting
It was observed that some accounting staff are able to raise general journals for posting to
the general ledger. We noted that there appears to be no review of journals raised by an
independent supervisory level officer. We recommend that a review process by an
independent supervisory level employee be established. This will provide evidence that the
journals have been approved, accurately processed and are valid. Unauthorised journal
entries may be used to cover up irregularities.
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