02/27/1985 Meeting - Laserfiche WebLink

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e - e RESOLUTION A Resolution Accepting Measures Taken To Correct Deficiencies Disclosed in The Comprehensive Annual Financial Report for The Fiscal Year Ending June 30, 1984 The City Council of the City of Eugene finds that: The firm of Peat, Marwick, Mitchell & Co. has completed the audit of the financial records of the City of Eugene for the fiscal year ending June 30, 1984, as required by ORS 297.425 and, pursuant to ORS 297.465, reported to the Mayor and City Council on its findings. The report advised the Mayor and City Council of certain deficiencies in the financial records of the City. ORS 297.466 requires that the City Council adopt a resolution setting forth measures to correct the deficiencies noted in the audit report and the period of time estimated to implement and complete these corrective measures. Now, Therefore Be it Resolved By The City Council of the City of Eugene, a Municipal Corporation of the State of Oregon, as follows: Section 1. The audit report stated that the City made expenditures in excess of the amount appropriated on a fund and department basis. Sp~cifi ca lly: 1. Overexpenditure of $16,655 in the Library Trust Fund due to misbudgeted capital project expenditures for a computer upgrade. 2. Overexpenditure of $2,143 in the Municipal Airport Fund due to departmental operating expenditures in excess of budget for Fire Department activities at the airport. The Finance Division has been monitoring budget compliance on an ongoing basis. This monitoring activity provides a reasonably prudent control eliminating such overexpenditures to as great an extent as possible, and and as such provides an appropriate corrective measure. Section 2. The audit report stated that throughout the year there were several funds that operated in a cash deficit position and that these defi- cits in substance, represent unauthorized interfund loans. Cash deficit positions result during the first several months of the fiscal year since it is not possible to record the ending cash balance as of the prior year end until the audit is completed for the prior year. These deficits are therefore created by a system restriction and do not necessarily reflect a true deficit. Specifically, the cash deficit at June 30, 1984 of $192,720 for CETA/JTPA Fund and $30,166 for the Municipal Airport Fund results from the "reimbursement basis" of the grant revenue sources in those funds. The CETA/JTPA reimbursement for June 84 activity was received in the first week