The Wyandotte herald. (Wyandotte, Mich.) 1879-1943, 1942-08-07
MinnipS


meeting be dispensed with and the
same stand approved as recOrdt d.
Yeas: COuncilmen Benin, Br0hl,
Burke Mason. Schultz, Wagar.
Nays: None
Unfinished Business.
Communication from Frederick j.
Gartner, City Attorney. and from +.
w Lidile. City Engineer, reporting IN
tccidt nj 10 Mrs. Ernest Ritter.
Nils. ellaneOus Business.
Applications for renewal of reStau
rane license received from Karl SchOi
<,rmann ,SchOlermann's at l122 Bid
die Avenue; Stanley HOjnOwski at 9le
Oak Street; and Edwin l.. Dinkins
tWy.lIdotte Boat Basin at JO7 Bid
die Avenue. All approved by the pro
pr city officials.
Referred 10 Council.
Communication from American WO-
mems Voluntary Services, Rhea Gantz.
ChaIriA@n, ia appreciation OF cOopera-
lion extended their organization Dy
Council and City Officials.
Received and placed or file.
Communication from Reverend q.
AutS-ujei, Pastor Rive riElnk Eyanseil
-! Church, WyandOttc. reporting ac-
Cadcii. &c Mrs. Mary y Lowry. "a guest
ct reverend knechtel due 10 broken
c1tru in front of Neisner's store, and
Subsequent N-ray and medical treat
mcuJ.
Iieferred to City Attorney and City
Engineer.
City Council of the City Of WyandOtte
WyandoIte, Michigan
Gentlemen:
Pursuant 10 your resolution of July
II, l942, we have made preliminary
examination of the records pertaining
10 cash transactions cOhsummated in
the office of the City Treasury from
October l, 1871 to July y, 1912. and
for prior periods with respect 10 GER
tain types of transactions. Such ex-
animation indicates that certain re
venues particularly those arising from
the operation of the City Hospital and
from delinquent tax collections have
not been properly accounted for and
that the misapplicatiOn of funds has
continued ut least June, 1910.
In view of the conditions indicated,
we recommend that our examination
be extended 10 cover the period from
October l, 1899 to July 81, 1912 along
tile following lines
(1) Examination Of the recorded
cash receipts in the office Of the City
Treasurer for the period, as 10 pro-
priety of source, and recOncilement
thereof, with deposits in the various
city depository accounts us Indicated
by the bank statements on file or by
The hank records. This procedure
would include direct confirmation of
certain types of revenues by cUmmuni-
cation with the diSbursing agencies
and recOnciltment of recorded depart
mental revenues with the related re-
cords of the originating departments.
Ii does not appear necessary for the
purpose of determining the extent Of
the discrepancies, to examine detailed
records underlying collections made
by depa rtmentS Otner than the City
Treasurer.
60 standardization Of tax levieS
City. School and County, for each of
the years 1899, 1910 and 1911 and re
cOncilement thereof with the recorded
collections and the amounts returned
delinquent, as we'll aS tests of items
currently unpaid by direct cOmmuni-
cation with the related property OWL
erS. This test may be restricted by
the unavailability of names and adj
dresses of property owners and should
not, in most instances, include tax
items for less than $1,000.
(3) ACKNOWLEDGMENT of the recorded
cab disbursements for the period, i'll
aggregate monthly or annual totals,
with the charges 10 the related bank
statements, and scrutiny OF inter-fund
I'M tor rfr,nn fol In a
ditiOn, some examination should be
made Of detailed records, apprOyals.
etc. underlying the recorded cash dis
bursements, although this may we'll be
limited To tests of selected months I'M
less irregularities are disclosed by the
tests.
Attention is directed To the fact
that the examination herein cOntem-
plated relates exclusively 10 the cash
, transactions handled in the office of
the City Treasurer and does not in
clude tests of departmental cash
transactions or review of asset. liza
bility and operating accounts for the
purpose of expressing an opinion on
the financial statements of the city.
The oregOing program does not spe-
officially contemplate an examination
of the records maintained by the City
Treasurer i'll his capacity ~ treasurer
Uf the Board of Education. on tn, as
sumption that such examination will
be made by the accountant for the
Board of Education. However, in view
of the apparent intermingling of funds
we may find il desirable 10 make a
limited eXamina tiOn of such records.
In addition 10 the examination here
in proposed, we would assist the city
iii preparing claims against the bond
ing company and would cooperate in
the accumulation of data required by
the Prosecuting Attorney. We would
review the City'S general accounting
procedures and the system of internal
control exercised with respect To city
funds handled by the Treasurer. with
ii view IL recommending reviSiOns
therein to safeguard against possible
future Irregularities
We propose to undertake the work
outlined on the basis of our per diem
rates for the time required. such rates
being 5000 for supervising account
ants. $1,000 for senior accountants and
S20O for junior accountants. plus
necessary transportation expenses and
other direct cash Otlay.