Laserfiche WebLink
Mr. Joseph G. Chlebeck <br />December 27, 1984 <br />Page 2 <br />B. CASH DISBURSING SUB - SYSTEM: <br />1) See item A. 1) above. The same system deficiency occurs in the <br />cash disbursing sub - system. <br />2) The cash disbursing sub - system is designed to be used in conjunc- <br />tion with a full purchase order and encumberance system rather <br />than as a simple cash disbursement (ie: check preparation) system. <br />However, the old encumberance accounting is not generally accep- <br />table today and Little Canada pays its invoices upon receipt <br />unless it has a reason to withhold payment. Additionally, many <br />invoices do not require a purchase order (ie: bond payments, <br />utilities, withholding, etc.). <br />This feature of the cash disbursing sub- system adds to the <br />complexity of this system. Such complexity would tax (if not <br />exceed) the ability of your staff to maintain such a system. More <br />important, such complexity is unnecessary with today's state -of- <br />the -art software concepts. <br />C. GENERAL LEDGER DETAIL TRIAL BALANCE: <br />This sytem does contain a detailed trial balance feature for both <br />the general ledger (balance sheet) accounts and budgetary (revenue <br />and expenditure) accounts. Such a feature is extremely useful if <br />not necessary to the efficient maintenance of such a system. <br />However, the Tele- Terminal System is excessive in the amount of <br />detail provided. Full detail of each cash transaction is provided <br />in the account to which each entry was posted. The same detail is <br />also repeated in a detailed analysis of the cash account. This <br />element is redundant and unnecessary. Journal totals (ie: Cash <br />Receipts Journal and Cash Disbursement Journal) are all that is <br />necessary for a timely and efficient analysis of the cash <br />accounts. <br />By having full detail (duplicated in the cash accounts) the amount <br />of paper flowing from the system becomes over- bearing. For <br />example, one General Ledger Detail Trial Balance Report for a <br />single fund and for a partial month ran eight pages long. Without <br />such duplicated detail, this same report could have been <br />accomplished in .less than two pages. This high level of detail <br />actually makes the information more difficult to locate because of <br />the increased paper flow. Other systems also produce excessive <br />levels of paper flow. <br />This paper flow situation was especially evident at the City of <br />Little Falls. They were producing all kinds of reports (from the <br />system) without knowing why and without using such reports after <br />they were prepared. <br />30 <br />