To ensure that its policy is being implemented correctly and to prevent further inappropriate reimbursements, the City should monitor at least semiannually the implementation of its new policy on expense approvals that it adopted in February 2016.
In January and July, the City Manager conducts a review of implementation of the policy regarding reimbursements. A form has been created to document the review, which is focused on three areas. Credit card statements are reviewed to confirm that appropriate oversight was provided by the City's accountant. Second, personal reimbursements are randomly selected to confirm they meet policy and procedure requirements. Third, invoices authorized by department leaders for payment are randomly selected to confirm all payments were related to appropriate and budgeted expenses.
The City's Accountant now monitors expenditures on a monthly basis and the City Manager reviews implementation of the policy at least semi-annually.
Although the City claims to have fully implemented our recommendation to strengthen its monitoring of expenses, it could not substantiate its claims of this implementation. We anticipate that the City will be in a better position to provide supporting evidence in its six-month response, given the additional time for these procedures to be integrated within its activities.
Agency responses received are posted verbatim.