AgdaPkt 2005-01-24 - Laserfiche WebLink

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City of Redwood City Recommendations to Management For the year ended June 30, 2004 2. CAPITAL ASSETS SYSTEM, Continued B. Observation The City's capital assets depreciation schedules for equipment had commingled the assets of governmental activities and business-type activities, which could result in misstatement of depreciation expense for both governmental and business-type activities. Recommendation We recommend that the City revise the capital asset depreciation schedules to clearly separate the governmental activities from the business-type activities to ensure that expenses for depreciation are correctly recorded. City Response The City will delete the two enterprise assets that were reflected on the schedule. 3. SINGLE AUDIT CENTRALIZED COORDINATION Observation While performing the audit of the City's Federal grant expenditures, we were directed several times to different departments to obtain documents and other information pertaining to grant expenditures. One of the requirements of OMB A-133 is the centralization of all Federal grant expenditure information. Recommendation We recommend that the City coordinate all information pertaining to Federal grants to comply with OMB A-133 and to facilitate the Single Audit procedures. City Response The observation listed above is a valid concern. The Finance Department is in charge of coordinating the financial audit. The sooner the auditors are able to retrieve information, the more smoothly the audit will run. The Finance Department employees should and will retain control over gathering information for these types of one-time occurrences (grants), thereby also controlling the information disseminated to the auditors. A breakdown in communication between the auditors and Finance employees can contribute to unnecessary audit adjustments. This coordination of information gathering does not extend to the areas of the audit normally coordinated by the Housing staff on an annual basis. 2