AgdaPkt 2003-01-13 - Laserfiche WebLink

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JAN. 8.2003 ' 5 "M MAZE.ASSOCIATES NO 662 : 4,6 71 -C9 Staff Sri ling The 2002 audit was hampered during the final phase of test work due to City's staff untimely unavailability. Significant individuals from the Finance Department and the Housing Department were unavailable at certain times during the two-week time period of audit test work The City should make certain that key individuals are available during the audit test work period, so as to ensure a smooth, efficient, and effective audit. The audit dates are set months in advance for just this reason. Communication between Denaatments The Housing Department and the Finance Department should improve procedures relating to the recording of new loans. During Single Audit testing, an audit adjustment resulted from a lack of communization between the two departments. During Single Audit test work, we selected lntergladed Disbursement and Information System (MIS) transactions for Redwood Oak Corporation as part of expenditure testing. in fiscal year 2002, the Housing Department requested draw down transactions totaling $241,400 from Housing and Urban Development (HUD) for Redwood Oak Corporation. During the fiscal year, no payments were received from Redwood Oak Corporation. At June 30, 2002, the City should have a loan receivable balance of 5241,400. However, the loan receivable was not recorded on the City's general ledger. The Finance Department was unaware of the loan. The Housing Department generates the loan, and then must notify the Finance Department about the new loan issued. Without notification, the Finance Department would not be aware of the loan issuance. For this specific incident, appropriate communication between the Finance Department and Housing Department did not occur.