1970CITY OF BANGOR
AUDITORS' COMMENTS AND RECOMMENDATIONS
Audit Scope
We have performed our examination in accordance with generally accepted auditing
standards and recommendations by the State Department of -Audit of the State of
Maine and the National Committee on Governmental Accounting of the Municipal
Finance Officers' Association.
Internal Control
We have reviewed the system of internal control surrounding the financial and
accounting functions of the City and found it to be generally adequate. We.offer
the following suggestions for further improvement in internal control,and account-
ing procedure:
1. For several years we have commented on the fact that the same employees
were making collections and keeping the necessary records regarding parking
violations. It was pointed out that such a procedure was in direct violation of
principles of internal control and to alleviate the situation we recommended that
the City Treasurer assume the responsibility of collecting such fines. During 1970
this recommendation was.not implemented and we mention this fact again since the
weaknesses of the present system are still in existence.
2. Last.year we also commented on the fact that the Public Works Department,
including the Motor Pool, was making a physical count of inventory as of December
31st, but due to other pressing commitments, was not reconciling this count to
the perpetual records until two or three months later. In order to have the
adjustment recorded in the proper period it was suggested that the inventory be
counted and adjusted as of a month end date preceding December 31st.
During the past year certain inventories were counted .and perpetual records
adjusted as of December 31st while other inventories were adjusted in March 1970
for physical counts taken near the end of the preceding year. Again we recommend
that inventories be counted and perpetual records adjusted within the current
fiscal accounting period.
All of these recommendations have been discussed with the City Auditor and he has
informed us that he will attempt to incorporate them within the City's accounting
system.
We would like to express our thanks to the officials and employees of the'City of
Bangor for their cooperation and assistance during the course of our examination.