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45 <br />CITY OF ST. ANTHONY, MINNESOTA <br />SCHEDULE OP FINDINGS AND QUESTIONED COSTS <br />For The Year Ended December 31, 2006 <br />2006-7 Capital Asset Additions <br />Criteria: All capital assets should be recorded in the City's capital asset system. The City <br />has not established a process to insure all capital assets are capitalized. <br />Condition: During auditor testing, two assets were discovered that should have been <br />capitalized that were not capitalized by the City. <br />Cause: The capital asset additions list is not independently reviewed for completeness. <br />Effect: The City's capital assets were understated. <br />Recommendation: We recommend that the finance director review the capital asset additions <br />list each year for completeness. <br />Views of Responsible Officials and Corrective Action Plan: The City has implemented <br />accounting techniques that will correct this for future capital asset additions. The chart of <br />accounts has been revised to include categories for nondepreciable assets (purchases under <br />$5,000) and depreciable assets (purchases over $5,000). Staff will reconcile the depreciable <br />assets to the capital asset accounting records which will assure that assets over $5,000 are <br />being corrected recorded and depreciated. <br />