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• <br /> <br />Audit Committee Meeting Minutes -September 17, 2002 -Page 3 <br />Once we obtained that information, we added that to our database and compiled an <br />accumulation of the support that existed at the time, along with other support that came to <br />us from the gathering process. This has basically been compiled in a format that will be <br />meaningful to the City, in terms of understanding what occurred. We have lengthy lists <br />for improvements in the system, with detail and analysis. <br />The transmittal letter indicates covering approximately asix-year period, sixty-eight <br />months. The two primary objectives in this engagement; one to review present fmdings of <br />specific data related to supporting American ExpressNisa card charges paid within the <br />audit period, and adequately summarize our findings to enable Council to determine the <br />propriety of the expenditures resulting from the use of those cards. The second objective <br />was to review the current procedure related to American ExpressNisa Cards and provide <br />useful information to Council; enabling implementation of improvements and the internal <br />control system surrounding the card use. <br />The last paragraph is very important; we appreciate the openness and professionalism of <br />all the employees with which we came in contact. We were able to freely obtain, without <br />restriction, requested information and interview employees as needed regarding our <br />engagement. In addition, we appreciate your patience with our timeline sliding a couple <br />of weeks. However, there was a great deal of detail information that needed to be <br />gathered and properly assimilated. <br />Tab 1-the written report is approximately six pages long. The first page is a <br />summarization of the ten agreed upon procedures (verbatim), and the body of the <br />engagement letter. Most of you have probably seen these items. <br />Page two is the engagement procedure summary. These fourteen items give you a flavor <br />of the significant documents that we reviewed during this engagement. Note the reference <br />to the interviews of employees. <br />Page three is the summary of procedures that we see happening in the City's credit card <br />process. The City's current procedures related to credit card use and payment are not <br />outlined or expressed in any written document, policy or ordinance. The current unwritten <br />procedures appear to have been in place for many years, some dating prior to the hiring of <br />the current City Manager. That continues to explain the mechanics of the process. The <br />last sentence states that use by each card holder varies significantly, as we see them in the <br />city records. <br />The American Express bill process describes how the information is assimilated, and how <br />it is forwarded to Accounts Payable. However, receipts may be missing or not available at <br />the time of the statements. They are filed in the assistant's or secretary's area for <br />reference. Quite frankly, this is what has led to a big debacle in your documentation <br />surrounding your credit cards. If you read the entire paragraph, you will see this is a <br />function of the time line/time pressure when the bill is received in your offices, statement <br />date, and deadline, this creates a timing problem. <br />The second category describes the Visa process, which is somewhat different. Each <br />cardholder receives their statements directly, the American Express bill goes to the City <br />Manager's office, with all American Express cardholders on that statement, creating an <br />