Published: June 30, 2009 12:49 am      

City plans for next internal audits

EDMOND — The Finance Audit Committee met recently to schedule fiscal year 2009-10 internal audits by BKD LLC for the City of Edmond.

Options for the audit included municipal court revenues and receipts for an estimated fee of $8,220.

“This is an area that handles so much cash and so many transactions,” said Ross VanderHamm, director of Financial Services. “… This is an area that potentially has more fraud available to it than almost any other area.”

An internal audit does not suggest a problem has occurred, said Steve Commons, assistant city manager.

Mayor Patrice Douglas pointed out that an audit has not examined Municipal Court revenues. VanderHamm said an audit of the department has been delayed while the city waits for a new software system.

“We’re at that point where we’re going to be choosing that, and probably if it’s chosen it needs to be done at the end of this fiscal year after the software is already in place.”

This would track the court and all of its components, including juvenile court.

The combined fees estimated for the internal audit would be $41,100, which also includes Purchasing Card Process, Central Warehouse operations and Special Purpose Sales Taxes.

“Part of the audit would be making sure we understand what allowable expenses are for each of the purposes,” Tim Adler of BKD said of combining the facets of the sales tax audit.

For example, a portion of all sales taxes are dedicated to specific purposes, such as 1/8 percent to the Police department, 1/4 percent to Fire Department and 1/8 percent to Parks Department, according to the audit draft.

City Councilman Charles Lamb said the Central Warehouse audit is a priority because the function is relatively new at the Cross Timbers Municipal Complex.

“I think it’s important,” VanderHamm said.

This overall audit would include municipal code and contractual compliance, governing body oversight, financial reporting, asset management and internal control practices.

VanderHamm said a previous audit did not go into depth with Purchasing Card Process.

“Considering the number of transactions we have on purchasing cards and the increase we’re going to be seeing — I just think this is an area we need to look deeper into,” Vanderhamm said.



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