Municipalities can begin to assess their controls by asking questions.
- What are employees doing?
- What can go wrong?
- Is the city collecting all the revenue it is due?
This process should be started before the auditors arrive. A good way to begin is documenting the specific job duties of each employee involved in any part of the financial process. Once that is done those duties should be reviewed to ensure they are separated as much as possible.
Determine what type of monitoring is done to ensure that transactions are being processed accurately and completely. Management should review at a very minimum:
- monthly financial reports
- bank reconciliations
- utility adjustment reports
- accounts receivable reconciliations
- police ticket and court docket reconciliations
- property tax reconciliations
Refer to the City Manual to get ideas on how to start a self-assessment.