Auditors for the City of Lubbock say the City’s financial statements for fiscal year 2002 “present fairly, in all material respects, the respective financial position…as of September 30, 2002,… in conformity with accounting principles generally accepted in the United States of America.”
Fiscal year 2002 statements are the City’s first report prepared under the new reporting requirements of Governmental Accounting Standard Board (GASB) Statement No. 34. GASB 34 illustrates the “big picture” or a government-wide perspective of the City’s financial condition.
Following this advisory are copies of the management letter and the opinion letter from Robinson, Burdette, Martin, Seright & Burrows, L.L.P. Areas for improvement are noted in the management letter. Specifically addressed were contract management issues with Market Lubbock, Inc. and WTMPA (West Texas Municipal Power Agency). Other recommendations included the creation of suspense accounting for reconciling bank accounts, increased separation of duties for mail processing, an authorization process for check distribution, consolidation of accounts receivable for property damage, additional resources to streamline a manual accounts payable process, an actuarial study to annually estimate the outstanding liability for medical and dental claims, and a reminder regarding upcoming GASB requirements.
City management appreciates the value of the recommendations and has in many instances already instituted changes to incorporate the audit recommendations. The remaining issues will be addressed in the near future.
The Mayor said, “The City of Lubbock welcomes the opportunity to improve its accounting practices and the annual audit provides an external review of existing processes and the Council relies on their independent assessment to continually make improvements. I am also pleased that we have improved communication with Market Lubbock, Inc. and WTMPA and have better oversight of those contracts. Specifically, we have implemented checks and balances by reducing our communication to writing instead of verbal communication.”