City of Oak Creek

Common Council Report

Meeting Date: 08/21/07

Item No.

Recommendation:  To provide the Common Council with the current status regarding implementation of the internal control policy.  Furthermore, to reaffirm the directive from the Mayor and Common Council, to ensure that appropriate internal control recommendations be implemented at Water & Sewer Utility. 

Background:  On December 5, 2006, the Common Council approved the Internal Control Study Report of Reilly, Penner and Benton, LLC (RPB), authorized the City Treasurer to execute the Treasurer’s recommendations, and required all City departments to implement the approved policy changes.     

The goal for City wide compliance was set for June 1, 2007 and was subsequently extended to July 31, 2007.  I have been working with all City Departments over the past eight months, to provide guidance and assistance in the implementation of the approved internal control policy.  On May 31, 2007, I provided each of you with a preliminary status report.  I also stated that shortly after July 31, 2007, I would review those departments who were then “non-complying” and provide you with a current status report.  Any noncompliance issues that are unreasonable would then be directed to the Mayor and Common Council for further action.  Due to the political nature and significance of the internal control policy, I am providing this report to you and the public at this Common Council meeting. 

I am pleased to report that all but two City Departments were in full compliance as of July 31, 2007, one of which is expected to have all outstanding issues resolved by the date of this meeting.  Below is a summary of these remaining issues. 

1. Police Department - As of July 31, 2007, the Police Department was in the process of resolving their two final issues.  The first was the purchase of locking cash bags to be utilized by the Records Clerks; in the interim only one Records Clerk is allowed to receipt payments.  The second requires Information Technology personnel to install a second cash drawer for the Clerk of Courts.  Both are expected to be in operation by this Common Council meeting (will confirm this at the 8/21/07 meeting).    

2. Water & Sewer Utility – Utility has delayed their implementation of the internal control policy.  Due to the unique nature of their business, Steve Yttri, Utility General Manager, requested that a comparison internal control review be done at Utility, in order to obtain specific recommendations directly related to their operations.  This review, being done by Joel Joyce of RPB, is expected to begin in mid September and should be complete by mid October.  As done with all other City Departments, the City Administrator and I will monitor the progression of this review and will assist with the implementation of the specified recommendations made by RPB.  However, because the anticipated completion date has now passed and due to the possible differentiation from the approved policy, I request that the Mayor and Common Council take further action by ensuring that the appropriate internal control recommendations be implemented in a reasonable amount of time.          

Fiscal Impact:  No detailed fiscal impact has been calculated for departmental improvements; however, I do not believe that any significant expenditures have been made.  All fees related to the internal control review of the Utility Department will be funded by Utility.         

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