11-12-2003 Council Agenda - Laserfiche WebLink

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MANAGED AUDIT PROCEDURAL ATTACHMENT General Scope of the Managed Audit The City of Little Canada will review pertinent records for the time period of 7/1/00 through 9/30/03 for any possible sales tax liabilities. Specific Records Expected to be Reviewed The City of Little Canada, will review all sales invoices with the exception of quarterly water and sewer invoices for the above specified time period, including but not limited to the rental of fire hydrants, water meters, and park shelters. Sales or billing journals will be reviewed to ascertain total commercial water service charges for the specked time period per filing cycle. In addition, the City of Little Canada will review and update any exemption certificates where an exemption is provided. Techniques to be Used The City of Little Canada, will review all of the sales invoices with the exception of quarterly water and sewer invoices during the selected time periods The City of Little Canada will review the invoice for taxability, whether or not the proper sales tax was originally assessed and the accuracy of the tax. Review must include documentation examination. The City of Little Canada will determine from review of sales journals total commercial water service charges per filing cycle. The City of Little Canada will compose a listing containing the information necessary for the completion of the managed audit. This listing may be performed on a computerized spreadsheet or manual spreadsheet and will be provided to the Department of Revenue. Once the City of Little Canada, has completed the review, the Department of Revenue will perform the verification of records- All documentation must be retained for the Specialist's verification process. Layout of Appropriate Schedules and Technical Information Needed The City of Little Canada will provide a complete listing of sales items relating to the time periods selected. The listing must include the following: • Name of Customer. • Description of Item Sold. • Date of Invoice. • Invoice Number. • Account Code Number, if any. • Amount of Selling Price. The listing pertaining to the commercial water service charges must include the following: • Quarter Billed. • Number of Commercial Invoices. • Date of Billing. • Account Code Number, if any. • Total Amount of Service Charge for Filing Cycle. The listing may be in the format of a computerized spreadsheet file, a manually performed spreadsheet, or a computer printed spreadsheet (Rtv. 69/99) 80'd 84:91 8002 bl PO -3. 8E61.96ZLS9:xej Ala XVI da00