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<br />Attachment III <br /> <br />City of Redwood City <br />Recommendations to Management <br />For the year ended June 30, 2005 <br /> <br />1. Accounts Receivable <br /> <br />Observation <br /> <br />There are several loans receivable accounts on the general ledger that do not represent actual receivable <br />(such as cumulative loans). The amounts are reversed for financial reporting purposes. These items <br />overstate the receivables of the City on the general ledger. <br /> <br />Recommenda tion <br /> <br />We recommend that the City monitor items that do not belong on the general ledger in another <br />medium (such as a spreadsheet or database other than the general ledger). <br /> <br />City Response <br /> <br />The general ledger accounts referred to above represent accumulated loans made and repaid for the <br />CDBG program. The program director (Debbi Jones-Thomas) and the Senior Accountant (Kyi Khin) <br />will be consulted on whether it is necessary for this information to be maintained in the general ledger. <br />Currently, Accounting Technician Serena Gregorio is maintaining these totals on a separate <br />spreadsheet. Eliminating these items from the general ledger would benefit Finance, as recurring <br />journal entries for loans would be streamlined (these extra accounts could be eliminated from each <br />journal entry), and extraneous balance sheet accounts would be eliminated from the general ledger. <br /> <br />2. Utility Receivable Reports <br /> <br />Observation <br /> <br />The utility receivable reports at year-end show the snap shot of the receivable at that time in summary <br />format. No detail is available that would agree to the summary report. The detail report by customer <br />can only be run on a current basis showing all transactions after the close of the year. <br /> <br />Recommendation <br /> <br />We recommend that the City develop a report that can produce detail reports that agree to the <br />summary snap shot reports. If that is not possible, the City should run the detail report at June 30 and <br />save a copy for audit purposes. <br /> <br />City Response <br /> <br />This information is available and IT will set this up to be automatically disb'ibuted as a regular monthly <br />report on the City's inb'anet. Revenue Services staff will be b'ained in accessing this report to enable <br />them to provide this information to the auditors if requested. <br /> <br />1 <br />