Reviewed Date: 12/15/2022
Municipalities can begin to assess their controls by asking questions such as:
- What are employees doing?
- What can go wrong?
- How can assets be stolen or misappropriated?
- Is the city collecting all the revenue it is due?
- Who is responsible?
- Is this a good use of taxpayer dollars?
This should be a continuous process that is assessed often. A good way to begin the assessment is to document the specific job duties of each employee involved in any part of the financial process. Once that is completed, those duties should be reviewed to ensure they are segregated as much as possible.
The process should include determining what type of monitoring is performed to ensure transactions are being processed accurately and completely. Management should review at a very minimum the following items:
- monthly bank statements and reconciliations
- monthly financial reports
- utility adjustment reports
- accounts receivable reconciliations
- police ticket and court docket reconciliations
- property tax reconciliations
Refer to the Internal Control and Compliance Manual for Governmental Entities and Other Audited Entities in Tennessee for ideas on how to start a self-assessment or contact your MTAS Finance Consultant.