Roswell Receives 2011 Comprehensive Annual Financial Report, Working on Problem Areas

Nearly at the end of FY 2012, the city of Roswell has received back its FY 2011 Comprehensive Annual Financial Report from outside auditors and is making adjustments to its processes.

The city of Roswell recently received its FY2011 Comprehensive Annual Financial Report and is working to reconcile problem areas, according to city staff.

Having undergone a thorough review by outside auditors Mauldin & Jenkins, the report reveals some issues with timeliness and accuracy. But, Roswell City Administrator Kay Love said some of the problems arose simply because financial ledger adjustments, including deposits and expenditures records, had yet to be finalized by the time auditors visited last August.

Auditors deemed those slow reconciliations a weak area for the city, causing city leaders to strategize a course of action to fix the problem, according to Love.

"City staff has responded to these findings, and the management points, stating what action the city has already taken and those processes that will be implemented," said Interim Finance Director David Delac during Monday's city council meeting.

Read the full FY2011 Comprehensive Annual Financial Report attached to this article and on the city's website for all the auditor's findings.

Lee Fleck April 25, 2012 at 01:38 AM
The auditing firm of Mauldin & Jenkins, noted a disconcerting condition in which “Internal controls and cash reporting procedures were not sufficient to facilitate the accurate and timely reporting of the City’s overall cash position and results of operations for several months throughout the year ended June 30, 2011.” To the point that “audit adjustments totaling approximately $670,000 were needed to correctly report the City’s cash balances as of June 30, 2011.” The auditor’s complete statement can be found on page 125 of the Comprehensive Annual Financial Report.
Lee Fleck April 27, 2012 at 07:54 PM
Roswell violates State Law: During the Roswell City’s Council Meeting on April 23, 2012, the results of last year’s Comprehensive Annual Financial report was released. This financial report received a scathing evaluation by the outside financial auditing firm of Mauldin & Jenkins to include the fact that “The City failed to Operate under an annual balanced budget, which has resulted in a compliance violation with State law”. And even far more disconcerting “the City had approximately $1,745,000 in deposits that were not properly collateralized”…”deposits with financial institutions exceeded the limit for federal depository insurance coverage and were not sufficiently collateralized in accordance with State of Georgia law”. The auditor’s report went on to explain the possible effect of this violation of State law “The failure of a financial institution to fully insure or collateralize the deposits could result in a financial loss to the City, should the financial institution fail” I will cover more deficiencies in my blog this weekend.
Lee Fleck April 28, 2012 at 02:00 PM
Roswell's State Law financial violations are on my Blog at: http://roswell.patch.com/blog_posts/auditors-say-roswell-financial-report-is-in-violation-of-state-policies


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