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City Council Regular Meeting Minutes <br />May 22, 2007 <br />Page 4 <br />1 any risk found. She recommended the City document its internal control policies and procedures <br />2 into a written manual. <br />4 Ms. Moeller stated the Annual Financial Report included a statistical table section with 17 tables <br />5 of trend information, which is now a complete comprehensive report. <br />6 <br />7 Ms. Moeller stated the City submitted their report to the Government Finance Officers <br />8 Association for consideration to receive a Certificate of Excellence in Financial Reporting. She <br />9 explained the review process and informed Council the results would be known by the end of the <br />10 year. <br />11 <br />12 Councilmember Stille stated the new audit standards sound quite detailed and asked Ms. Moeller <br />13 for further clarification. <br />14 <br />15 Ms. Moeller replied the auditor must look at internal controls, evaluate them, determine if they <br />16 are reliable, and then do a substandard test; there are more steps involved. She stated that if good <br />17 internal controls are in place, they can be tested. She stressed that internal controls must be in <br />18 writing. <br />19 <br />20 Mayor Faust asked Ms. Moeller if the nine deficiencies would have been reported under the old <br />21 standards. He asked if the City should be concerned that nine deficiencies were found. <br />22 <br />23 Ms Moeller replied that most of them would not have been reported under the old standards and <br />24 that the City should not be concerned. She commented Staff has already implemented corrective <br />25 actions. <br />26 <br />27 Mayor Faust asked Ms Moeller to elaborate on the risks that would be assessed. <br />28 <br />29 Ms. Moeller explained there are several types of risk to be assessed. She explained the auditors <br />30 are working towards the new standards. She stated the auditors must look at the five areas of <br />31 internal control for every area of the City and assertions and then assess the risks for each <br />32 assertion. <br />33 <br />34 Mayor Faust stated citizens and tax payers should feel better that their money is being managed <br />35 properly and spent according to the design and in accordance with the law. <br />36 <br />37 Ms. Moeller stated the goal is to reallocate audit efforts to where the risk exists to provide a more <br />38 efficient audit. <br />39 <br />40 Mayor Faust asked if the City is implementing or looking at implementing the in-depth risk <br />41 analysis. <br />42 <br />43 Ms. Moeller stated the City has implemented all the findings. She stated the risk assessment <br />44 would not be totally implemented until the end of 2007. <br />45 <br />