The city of Derby has made positive strides in reducing the number of adjustments in its annual audit.
“There continues to be improvement in the number of entries that are provided to us,” said Karen Linn, with Berberish Trahan & Co., the city’s auditing firm. “Every year we see improvements in this area.”
Linn indicated there are no irregularities of grave concern, and said the audit showed the city’s books are free of material misstatements. In fact, a separate audit of a federal grant program showed no problems with the city’s record-keeping.
The issue has been problematic adjusting entries. Some are made so city staff can have the auditor’s advice on proper handling of financial transactions; at least one was a miscommunication between the auditor and staff, and some have been reccurring for much of the past four years.
An anticipated software conversion is expected to help the staff with some of the problems.
Jean Epperson, city director of finance, said in the past – due to software licensing and controls – she had to wait until the right person could print the necessary reports to see what was happening. The new changes will allow her to have better oversight of transactions as they occur.
Her goal, she said, is to have a year in which the auditing firm reports it has had to do no adjusting entries.
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