Laserfiche WebLink
43 <br />CITY OF ST. ANTHONY, MINNESO'T'A <br />SCHEDULE OF FINDINGS AND QUESTIONED COSTS <br />For The Year Ended December 31, 2006 <br />2006-5 Capital Asset Depreciation Calculation Errors <br />Criteria: There is not a process established to identify errors within the capital asset <br />software system. <br />Condition: Audit tests detected that one asset prematurely stopped depreciating and two <br />other assets were depreciating incorrectly. <br />Cause: The City's capital asset system is not calculating depreciation correctly and the City <br />has not established effective internal controls that will catch any depreciation errors that the <br />capital asset software produces. <br />Effect: The depreciation expense for the City may be misstated if assets are not properly <br />depreciating. <br />Recommendation: We recommend the City review its capital asset software system and the <br />depreciation calculation function. <br />Views of Responsible Officials and Corrective Action Plan: The City will correct this going <br />forward by working closely with the software vendor to ensure that the capital asset software <br />is calculating depreciation properly, the City will do mid -year testing and evaluation of <br />software. <br />