HomeMy WebLinkAboutNB 1 AUDIT COMM RPT 01-21-91NEW BUSINESS N0. 1
1-21-91
DATE:
JANUARY 3, 1991 liw;�Ev
10 Inter - COIn
TO: HONORABLE MAYOR AND MEMBER OF CITY COUNCIL
FROM: WALTER T. SULLENS, AUDIT COMMITTEE CHAIRMAN
SUBJECT: ANNUAL REPORT OF THE AUDIT COMMITTEE AND SUBMITTAL OF THE CITY
OF TUSTIN'S COMPREHENSIVE ANNUAL FINANCIAL REPORT DATED JUNE
30, 1990
The Audit Committee reports it has fulfilled all duties listed in
Resolution No. 88-52.
We were pleased to participate in the selection of a CPA firm to
audit the books and records of the City. That included the
preparation of a detailed Request for Proposal, a meeting of
interested auditing firms, a thorough review of the proposers'
qualifications, and the recommendation of an auditor. This is our
primary function.
Additionally, a subcommittee of Cheryl Gunderson and George
Jeffries met with the Finance Director to review the Investment
Policy for further adjustments, in light of weakening economic and
credit considerations. We expect that work to be an ongoing
concern.
Other activities include:
Requested a review of property and cash control within the
Police Department.
Requested a review of the reporting of Cable TV receipts.
Reviewed systems of internal control.
Reviewed and evaluated the Auditor's Management Letter.
Discussed installation of centralized purchasing.
Addressed request from council to investigate misclassified
payments to expense.
Initiated study of cash reserve policy.
Followed the Lonnie Hamblin case.
Monitored progress on the Farmers Bank Problem.
Page 2
January 3 , 1991
Based on all available information including the auditor's reports,
the City of Tustin seems to have a sophisticated accounting system.
Controls over cash and property appear to be in place and well
managed.
The Committee's plan for the coming year is to complete the study
of the cash reserve policy; perform the duties in Resolution No.
88-52; maintain continuing reviews of the Investment Policy and
respond to Council requests.
Respectfully submitted,
r
Walter T. Sullens
Audit Committee Chairman
WTS:ls
Attachment
a:committee.rpt