[read complete report – pdf] 

Audit Objective

Determine whether City of Rensselaer (City) officials maintained complete, accurate and timely accounting records and reports to allow the Common Council (Council) to effectively manage financial operations and capital projects.

Key Findings

City officials did not maintain complete, accurate or timely accounting records. As a result, the reports the Council received were not sufficient to allow the Council to effectively manage the City’s financial operations and capital projects.

• General ledger balances were inaccurate during each year and there were significant deficiencies with the City’s accounting records.
• Interfund receivables and payables did not reconcile, varying between $266,560 and $2.2 million, and transactions were not entered in a timely manner.
• Bank reconciliations were not prepared in a timely manner or clearly documented and discrepancies, including a variance where the reconciled bank balance for one bank account was $2.9 million less than the accounting records, were not explained.
• Independent audit reports were not issued in a timely manner and identified deficiencies in internal control.

Key Recommendations

• Ensure accounting records are complete, accurate and maintained in a timely manner.
• Ensure accurate bank reconciliations are prepared on a monthly basis.
• Ensure monthly reports are provided summarizing financial activities.

City officials generally agreed with our recommendations and indicated they planned to initiate corrective action.