Cash Handling and Risk Management
( display item 2)
March 19, 2004
To: Audit Committee
From: Auditor General
Subject: Economic Development, Culture and Tourism Department – Review of Receivables Relating to Parks and Recreation Operations and the Review of Revenue and Cash Controls Relating to the Parks and Recreation Division, North and South Districts
To report the results of the Auditor General's review of the management of receivables relating to parks and recreation operations and cash handling procedures at various parks and recreation facilities in the North and South Districts.
Certain of the receivables in the Parks and Recreation Division of the Economic Development, Culture and Tourism Department are uncollectable. The Auditor General has estimated that an allowance for uncollectable accounts should be in the range of $1 million. This amount has been communicated to the Chief Financial Officer and Treasurer and should be considered in the final determination of a corporate-wide allowance for doubtful accounts. The implementation of certain other recommendations in this report will improve accounts receivable collection practices and internal controls relating to cash management and will minimize the risk of revenue losses.
It is recommended that:
1. The Commissioner, Economic Development, Culture and Tourism review all reports issued by the Auditor General’s Office relating to cash controls and accounts receivable management and ensure that all recommendations are appropriately addressed.
2. City Council direct that those recommendations relating to the management of accounts receivable be forwarded to City Commissioners and Senior Executives of City Agencies, Boards and Commissions in order to determine whether or not the recommendations contained in this report have applicability to their respective organizations. Where appropriate, such recommendations be implemented immediately.