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Honorable Mayor and Members <br /> of. the City Council <br /> City 'of St. Anthony <br /> June 30, 1984 <br /> Page 3 <br /> 2 . Supervise the taking of inventory with responsible <br /> employees not involved with counting or <br /> recording of inventory. These individuals would <br /> perform test—counts on work-done by inventory <br /> teams to assure the accuracy of recorded <br /> counts. <br /> Journal Entries <br /> During our examination we noted journal entries which contained <br /> incomplete explanations. To strengthen internal accounting <br /> controls we recommend all journal entries include a complete and <br /> concise explanation with supporting documentation attached or <br /> retained for reference. <br />` Resolutions <br /> Budget resolutions adopted during the year which increased the <br /> total amount of budgeted expenditures omitted the source of <br /> r revenue anticipated to finance these additional expenditures. <br /> When increasing total budgeted expenditures, the resolution <br /> should identify the source of revenue. After a review of the <br /> City Manager's budget notes and discussions with him we were <br /> t able to determine the sources of revenue and make the necessary <br /> budget adjustments. <br /> Other Matters <br /> The operations of the water and sewer funds incurred losses in <br /> 1983 of approximately $80,000 each. These losses increased <br /> approximately $45,000 (or 140%) over losses incurred in 1982. <br /> i` We -suggest again that user rates be reviewed to determine the <br /> adequacy of income generated since operating expenses have <br /> continued to increase. The rates should at least be sufficient <br /> to generate. income to cover operating expenses .other than <br /> depreciation. Consideration should be given to further <br /> increasing the rates to generate sufficient income to recover <br /> the depreciation on contributed assets. <br /> r <br /> i <br />