Purpose of Audit

The purpose of our audit was to review the City’s accounting records and financial condition for the period June 1, 2011 to March 31, 2013.

Background

The City of Amsterdam is located in Montgomery County and has approximately 18,000 residents. The City is governed by a Mayor and Common Council, which includes five Alderpersons. The City’s budgeted appropriations were more than $27 million.

Key Findings

• City officials failed to maintain accurate and complete accounting records. We identified significant inaccuracies in balance sheet account balances as well as in revenues and expenditures.
• The City’s fiscal year runs from July 1 through June 30 and the City generally prepares and files its AUD in conjunction with the annual independent audit of the City’s financial statements. As of September 17, 2013, the City had not yet closed its accounting records, initiated the independent audit, or filed the annual update document (AUD) for the 2011-12 and 2012-13 fiscal year.
• The annual financial reports and audited financial statements prepared by the City’s independent auditor for the 2009-10 and 2010-11 fiscal years and found in both years the independent auditor issued qualified opinions on the City’s financial statements.

Key Recommendations

• Ensure that the City’s accounting records for the operating funds and capital projects funds are complete, accurate, and maintained in a timely manner.
• Ensure that the accounting records are properly closed at year end. Initiate the independent audit and file the AUD in a timely manner.
• Attend training and refer to the Local Government Management Guide for assistance in developing future budgets.