01-09-1985 Council Agenda - Laserfiche WebLink

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\/OTO, REARDON, TAUTGES & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Vistinr / Birch Lake Professional Building o 1310 E. Hwy. 96 e White Bear Lake, MN 95110 0 Phone 426 -3263 December 27, 1984 Mr. Joseph G. Chlebeck, Clerk- Treasurer City of Little Canada 515 Little Canada Road St. Paul, MN 55117 RE: PROPOSED TELE- TERMINAL ACCOUNTING SYSTEM Dear Joe: ROBERT I. VOTO. CI'A TIMOTHY E. REARDON. CI'A ROBERT G. TAUTGES. CPA Pursuant to our meeting .last Thursday, this .letter should serve to document my concerns about the Tele- Terminal Accounting System. We have reviewed this system at the City of Little Falls once and at the City of Fridley twice. I cannot recommend this system (at this time) for the following reasons: A. CASH RECEIPTING SUB- SYSTEM: 1. This accounting system appears to be an old cash -basis system which has been converted to an accrual -basis system. Such system does allow for the posting of receipts to any balance sheet, reve- nue and expenditure account, as required under current Minnesota accounting and reporting standards. However, the method used by the system (to allow for accrual accounting) is very cumbersome and complex. The system operator must have a good understanding of the system software in order to use this system as an accrual - basis system. The City of Fridely apparently does not have a problem with this deficiency at this time. However, Fridley has a relatively large EDP /Accounting /Financial Staff. In short, Fridley has sufficient personnel on staff to work around this deficiency. Additionally, the City of Fridley will not be implementing this sub- system until January 1, 1985. For the past several months, they have been "testing" this system only. Their top priority is the payroll sub - system at this time. I believe that once they start to use this sub- system, they will probably want it changed. MliA1111.RS OI AND AN iNS11Tl!11 ()F CIRTIIIFD RUM IC A( COMNI A:NIS • PRIA AR (T ):MI'ANil' 1'RA( II(I SIC HON AiINNISF)1 NC(I11) Of CI R 1111111 !'L 1711( A(C(H'N!ANTS ! NI( ' I I ' A I IIN \NCI H( ()I I Rt ASSOt 1 A110.'v •.AfANI' oI \ A"-OCI AH10N 0! S( 11001 Itt'SI'vItt UI I I('I AI.