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1 Vendor and Payroll Bank Account Reconciliations <br /> ' Comment <br /> The June 30,2004 bank reconciliations for the Town's payroll and vendor bank accounts were not completed until <br /> ' March 2005,approximately eight months after year-end. The lack of performing these reconciliations on a timely <br /> basis increases the likelihood that errors and/or irregularities could occur and go undetected. This is a weakness <br /> in internal controls. <br /> Recommendation <br /> ' The lack of payroll and vendor bank account reconciliations limits the assurance that cash disbursements <br /> processed by the Treasurer/Collector's office agree with expenditures(payroll and vendor warrants)processed <br /> through the general ledger. These reconciliations(and all bank reconciliations)are critical to the complete and <br /> accurate reconciliation of cash. We recommend that the Treasurer/Collector's office implement procedures to <br /> 1 perform all bank reconciliations,including the investigation and resolution of reconciling items,no later than 30 <br /> days after the end of the previous month. <br /> Leisure Services <br /> ' Comment <br /> We identified the following related to the Leisure Services department: <br /> ➢ The department utilizes Rec Trac software to account for their financial(including budgeting)activities. <br /> The Rec Trac software is currently not interfaced with the Towns general ledger(MUNIS)nor is the <br /> activity reconciled with MUNIS consistently. <br /> 1 ➢ Interest income is not being allocated to the Recreation Revolving Fund(maintained by the department) <br /> as required by Massachusetts General Laws(MGL),Chapter 44,Section 53D. <br /> ' Recommendation <br /> ' Since the Rec Trac software has the ability to interface with MUNIS,we recommend that this interface take place. <br /> As a result,MUNIS will report the detailed financial information for each of the department's revolving funds <br /> (and other programs),which will facilitate the monthly reconciliation of the department's financial records to <br /> ' MUNIS. <br /> We recommend that interest income be allocated to the Recreation Revolving Fund monthly. This allocation <br /> should be based on an average monthly cash balance in the fund multiplied by an average interest rate. By doing <br /> so,the revolving fund will be in compliance with MGL. <br /> t 4 <br />