Laserfiche WebLink
Report on Internal Control over Financial Reporting <br />and on Compliance and Other Matters <br />Page 8 <br />r, <br />6 Unreconciled CapitalSystem/Unidentified <br />Criteria: All capital assets should be recorded in the City's capital asset system at historical <br />cost. Additionally, land should be recorded separate from the related depreciable assets. <br />Condition: City owned land (with the exception of the fire station land) is not identifiable <br />within the City's capital asset system. Additionally, the capital asset systems' December 31, <br />2004 amounts do' not agree to the prior years' financial statements. <br />Cause: The City did not segregate land from the other components of capital assets within <br />the City's capital asset system. Additionally, the City recorded 2003 and 2004 improvements <br />at the bonded amount rather than at historical cost and did not input the adjusted asset <br />balances into their capital asset system. The City also did not update the capital asset system <br />for audit adjustments to other City asset values for 2003 and 2004. <br />Effect: The City's capital assets system does not agree to the amounts reported in the <br />financial statements. <br />Management .Response: The City is implementing procedures to identify the original cost of <br />City owned land. In addition, the City will identify and correct road improvement projects <br />that were recorded at the bonded amount rather than actual cost. <br />Im <br />