1969CITY 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. Last year we 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 1969 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 recommended that.the inventory be
counted and adjusted as of a date other than December 31st, that this date be at a
month end, and that it be consistently followed. This recommendation was not
implemented during 1969 and we again urge that steps be taken toward its initiation.
3. During the course of our audit of Treasurer's cash, it was revealed that
cash register tapes were not being utilized as an internal control device for
daily cash -ups. Since a primary goal for using cash registers is to strengthen
internal control over funds, we strongly urge that these tapes be used in the future.
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.