RESOLUTION No. 36379

Implement corrective measures to address deficiencies disclosed in the City FY 2004-05 Comprehensive Annual Financial Report, as directed by state statute (Resolution)

WHEREAS, ORS 297.466 provides as follows:

Section (2) Upon receipt of an audit report under ORS 297.465 the governing body of a county or city shall determine the measures it considers necessary to correct any deficiencies disclosed in the report. The governing body shall adopt a resolution setting forth the corrective measures it proposes and the period of time estimated to complete them.

WHEREAS, the City received an audit report for FY 2004-05 which stated in part:

The results of our tests disclosed instances of noncompliance relating to over expenditures of budgeted appropriations that are described in Note 11.B to the City’s financial statements.

and

The results of our tests disclosed deficiencies in the design or operation of the internal control over financial reporting…we discovered that certain franchise fees were being recorded on the cash basis which is contrary to generally accepted accounting principles and the City’s policy.

WHEREAS, Council wishes to comply with the provisions of all state statutes;

NOW, THEREFORE, BE IT RESOLVED that all City bureaus and offices will carefully monitor expenditures for all funds and appropriation units in order to prevent over expenditure.

BE IT FURTHER RESOLVED that all City bureaus and offices will take appropriate steps during the City’s three annual budget monitoring processes to make budgetary adjustments that will fully align anticipated expenditures with appropriation authority.

BE IT FURTHER RESOLVED that the City has discontinued the practice of recording certain franchise fees on a cash basis, and will now record these fees on an accrual basis in compliance with City policy and generally accepted accounting principles.

BE IT FURTHER RESOLVED that these corrective measures shall be implemented without delay in any instance where they are not already in place.

Adopted by the Council: February 22, 2006    GARY BLACKMER

Mayor Tom Potter              Auditor of the City of Portland

                 By /S/ Susan Parsons

Prepared by:              

Stacy Jones                  Deputy  

Office of Management and Finance            

February 13, 2006

BACKING SHEET INFORMATION

AGENDA NO. 219-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36379