WEST POINT -- On Tuesday, the city council received the audit report for fiscal year 2011.
The auditors, Ulrich & Associates, said the city's financial statements are a fair and accurate presentation of financial activities and status.
However, one error in budgetary compliance was found. According to Utah code, municipalities shall not incur expenditures in excess of the total appropriation for any department or fund.
The debt service fund expenditure exceeded the budget appropriation for the current year by $152,490, because an extra payment occurred during the bond renegotiation for City Hall.
City officials said the renegotiation situation was unique and this over-expenditure is unlikely to recur.
During the audit, recommendations of 2010 were reviewed. In the past, utility cashiers had sole responsibility to take payments and adjust accounts. As a result of the 2010 audit, the city changed procedures to add the treasurer to the approval process, adding a level of checks and balances.
The 2011 audit recommended an additional step of logging each adjustment made to accounts in a binder labeled with the month and year for further clarification.
The 2011 audit also found a weakness in the accounts payable system, showing no review before the checks were printed and mailed.
The recommendation was to review check batches before the checks are printed and mailed.
In addition to the review, the auditors suggested a monthly reconciliation between the check register and approved check batches.
City officials said they will follow the auditor's recommendations, and the council accepted the annual audit report.