* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL R
(Resolution)
Introduced by: Councilmember Stokes
A RESOLUTION ENTITLED
A COUNCIL RESOLUTION concerning
title
Informational Hearing - Department of Recreation and Parks - Implementation of the Recommendations Contained in the Audit Report by the Baltimore City Auditor
FOR the purpose of requesting the Director of the Department of Recreation and Parks to come before the Baltimore City Council to discuss the implementation of the recommendations contained in the Audit Report by the Baltimore City Auditor, dated April 9, 2014. On April 9, 2014, the City Auditor issued an audit report regarding the Department of Recreation and Parks’ 2012 financial statement. The Auditor and his staff audited the Balance Sheet - Governmental Funds and the Statement of Revenues, Expenditures, and changes in Fund Balances, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of that Department. The major findings were categorized as follows:
body
Finding 2012 -1: Financial Statements
The Departments of Finance and Recreation and Parks did not initially provide accurate financial statements of the financial activity of the Department of Recreation and Parks for fiscal year 2012. The Bureau of Accounting and Payroll Services (BAPS), as part of the Department of Finance, prepared financial statements containing the financial activity of the Department of Recreation and Parks that did not fully agree with the underlying financial activity recorded on CityDynamics, the City’s financial accounting system. Because Recreation and Parks could not determine how the numbers were developed by BAPS, it developed separate financial statements, and, after numerous revisions, those statements agreed with those in CityDynamics.
The Auditor recommended that BAPS, in conjunction with other City agencies, establish written policies and procedures for the development and preparation of financial statements that agree to the financial activity recorded on CityDynamics, the City’s financial accounting system. The Auditor also recommended that the Department of Recreation and Parks develop a manual to provide guidance to its accounting staff regarding the development of the annual financial statements.
Finding 2012 - 2: Payroll Documentation
The Fiscal Service Division and Recreation Centers did not always adhere to the policies and procedures established by the City for the recorded time and attendance in the Enterprise E-Time, for related payroll attendance records, and for required supporting documentation. The time authorized or signed did not always support the entered information or was not always captured in a way that validated the employee’s attendance.
The Auditor recommended that the Department establish and implement written procedures that will assure adherence to the City’s procedures for the E-Time automated payroll time and attendance system. It was also recommended that the entry of employees’ time in the E-Time system be taken from records that document an employee’s actual time in attendance or absence.
Finding 2012 - 3: Procedures Manual
The Department of Recreation and Parks did not have a standard operating policies and procedures manual to guide, direct, and instruct its employees on cash handling. The audit found inconsistencies among the Recreation Centers in how to account for tickets that support the collection and reporting of cash for activities. The Department was only using the City’s Administrative Manual.
The Auditor recommended that the Department develop new standard operating policies and procedures to provide uniformity for the handling of cash collecting, recording, and reporting, as well as procedures for documenting the attendance of participants, the recording of cash collected, and the reconciling and reporting of activities.
Finding 2012 - 4: Accounting for Revenues
The Department’s Fiscal Service Division did not always use the appropriate revenue account for recording certain revenues. It was found that revenue funds were being deposited in an expense account. Offsetting revenues against expenditures can understate actual expenditures and revenues reported in financial statements.
The Auditor recommended that a proper account be used to record the receipt of revenues. Also, the Department needs to establish policies and procedures that require periodic supervisory review of all account activity.
Finding 2012 - 5: Expenditure Documentation - Capital Projects
The Department of Recreation and Parks did not maintain support for interagency billings related to capital project expenditures.
The Auditor recommended that the Department establish a system by which the Fiscal Services Division would assure the proper accounting, approvals, and monitoring of capital 6 project expenditures.
Approximately 5 months have now elapsed since the audit report was issued. It is time for the City Council and the citizens of Baltimore to learn how these recommendations have been implemented, in order to strengthen the operations of this Department, which is important to Baltimore City residents and especially to the well being of our children.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF BALTIMORE, That the Baltimore City Council requests the Director of the Department of Recreation and Parks to come before the Baltimore City Council to discuss the implementation of the recommendations contained in the Audit Report by the Baltimore City Auditor, regarding the Baltimore City Department of Recreation and Parks’ 2012 financial statement, dated April 9, 2014.
AND BE IT FURTHER RESOLVED, That representatives of the Department of Finance and the Department of Audits also be invited to attend.
AND BE IT FURTHER RESOLVED, That a copy of this Resolution be sent to the Director of the Department of Recreation and Parks, the Baltimore City Auditor, the Director of the Department of Finance, and the Mayor’s Legislative Liaison to the Baltimore City Council.
dlr14-0980~intro/03Sep14
ccres/REC&Parksauditreport/nbr
dlr14-0980~intro/03Sep14
??2??
ccres/REC&Parksauditreport/nbr