City of Oak Creek

Common Council Report

Updated for 12/5/06 meeting

Meeting Date: 12/5/06

Item No.:               

Recommendation:  That the Common Council approve the Internal Control Study Report of Reilly, Penner and Benton, authorize the City Treasurer to execute the Treasurer’s recommendations, and that all City departments be required to implement the approved policy changes. 

Background:  As you are well aware, the Milwaukee County District Attorney’s Office issued charges against former City Treasurer Barbara Davison, for alleged theft charges of city funds.  This case has been under investigation since March 2005. 

As a result of this investigation, the City of Oak Creek hired the CPA firm of Reilly, Penner and Benton, LLP to conduct an Internal Control Study directly related to the Treasurer’s Office in an effort to reduce the possibility that a theft occur in the future.  Joel Joyce, CPA, was assigned to complete the Internal Control Study for the City.  Each Council member has been provided with an Internal Control Study Report.  Mr. Joyce and Mr. Thomas Wieland, CPA will be present at the council meeting to give a very brief explanation of the report and to answer any questions you may have.

The Treasurer’s Office has already made several changes to eliminate some of the more critical deficiencies.  Upon Council approval, I will assist in making the necessary improvements within each department. 

Attached is a copy of Reilly, Penner and Benton’s Executive Summary of Recommendations which addresses each City deficiency noted in their study (Revised for 12/5/06 meeting).  Beneath each of their recommendations I have added the current status for each deficiency and, in some cases, my recommendation for Council approval.  I have also included recommendations for deficiencies not specifically noted in their study, but for which I feel are necessary to protect the safety of all city funds.  This item was held from the 11/8/06 meeting.

Fiscal Impact:  No detailed fiscal impact has been calculated.  Changes that have previously been made had minimal or no cost.  Changes requiring minimal or moderate cost will be made.  All changes that will incur significant costs will need to be analyzed and approved by the Common Council.  

Prepared by: Barbara A Guckenberger City Treasurer	Respectfully submitted, Patrick DeGrave City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk