HomeMy WebLinkAboutTR-44-85 File No...—IL-
CORPORATION OF THE TOWN OF NEWCASTLE
TREASURY DEPARTMENT K. CAMPBELL, C.A., TREASURER
40 TEMPERANCE STREET TEL.(416) 623-3379
BOWMANVILLE, ONTARIO
L1C 3A6
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MEETING OF JUNE 17, 1985
REPORT NO.: TR-44-85
SUBJECT: 1984 COMMENTS ON INTERNAL CONTROL AND ACCOUNTING
PROCEDURES
RECOMMENDATION:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council that this
report be received -for information.
BACKGROUND AND COMMENT:
Staff' s responses to the 1984 "Comments on Internal
control and Accounting Procedure" , received from the auditor
are provided below for the information of Committee.
Financial Statement Preparation
Comment
As recommended in our 1983 management letter, consolidated
financial statements of the Town for the year ended December
31 , 1984 were prepared internally by treasury staff. These
financial statements were well prepared with limited
assistance by our staff. This has resulted in significant
reduction in related external accounting fees. We commend
your staff on their efforts and encourage them to continue
rf
to refine the financial statement prepa ration procedure in
the future.
3(e)
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TR-44-85
BACKGROUND AND COMMENT: (continued)
Financial Statement Preparation - continued
Re s2 on se
Staff wi 1 l continue the refinement of the financial
statement preparation procedures this year and in the
future.
Interest and Investments
Comment
We noted that there were no interest accruals recorded for
certain of the museum' s investments. Although not material
in relation to the consolidated financial statements, we
recommend that all interest accurals be recorded.
Response
This matter of interest accurals for the museum will be done
in 1985 and subsequent years.
Working Capital Reserve
Comment
B #81-111 states that the working capital reserve
shoul d be al l owed to fl oat wi thi n 1 imi is of 5% to 10% -of the
current year' s total tax billing . In 1984, the lower limit
was not met. Although the deficiency is not material , we
recommend this reserve be monitored to ensure it meets the
limits set out in the related by-law.
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TR-44-85
BACKGROUND AND COMMENT: ( continued)
Working Capital Reserve - continued
Response
The Working Capital Reserve presently stands at $803,000.
The target set in the by-law would set the minimum balance
for the reserve at $811,000. This reserve should not be
allowed to vary too far from the 5% to 10% of current year' s
tax levy.
By-Laws
Comment
During our audit, we noted that several by-laws did not have
the appropriate schedules attached to them. We recommend
that a review of all by-laws be made to ensure they are
up-to-date and complete.
Response
The further review of the by-law files within the Clerk' s
Department will rectify this matter.
General Matters
Comment
1 . Fixed Asset Ledger:
As suggested in our prior year' s management letter, we
understand that your are nearing completion of a fixed
asset ledger which lists all assets owned by the
corporation.' We suggest that this ledger be completed as
soon as possible and kept current for all future
acquistions.
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TR-44-85
BACKGROUND AND COMMENT: ( continued)
General Matters
Response
The listing of all fixed assets has been made with each item
tagged and recorded. The staff will be updating this
listing as additional equipment is added to the Town' s
inventory. There have been no costs included on this
listing as our insurance provides replacement value for the
particular piece of equipment at the time of loss.
Comment
2. Subdivision Agreements:
In prior years we recommended that an accounting system
be established to monitor timely collection and control
over outstanding subdivision levies. This recommendation
has not yet been implemented; however we understand that
management is currently in the process of setting up such
a system.
Response
With the approval of the purchase of computers for the
Planning and Public Works Departments, the matter, of
control over the financial requirements within the
subdivision agreements will be addressed.
Respectfully submitted,
Kathryn Campell , C.A. , B.Comm. ,
Treasur r.
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