State Auditor Questions Cheney Accounting System

The city of Cheney is being criticized by the state auditor for lapses in its internal accounting systems.

The city’s financial statements were found accurate but the controls over the accounting system should be improved, the auditor said in a report issued last week.

Grant Murie, finance director for the city, said most of the items should be considered housekeeping issues.

“Overall, I consider this city in good financial condition,” he said.

Cheney had eight lapses identified by the auditor in the most recent financial survey, compared with about 15 issues the previous year, he said.

“I agree with most of them,” Murie said. “They are good recommendations. We don’t have any problem trying to comply with most of them.”

The latest audit covers 1995. Audits normally take more than a year to complete.

Among the deficiencies, the auditor is calling on Cheney to develop a written disaster plan that would help the city recover from a fire or other event.

The city’s computer system needs improvement to make sure that unauthorized persons do not have access to terminals. The auditor said the city should not allow computer users to sign on to two terminals at once.

The auditor also criticized the way the city pays its vouchers for services or deliveries. Many of the vouchers were paid with photocopies and some were not scrutinized sufficiently, the auditor said.

Contract arrangements between the city and other entities, such as Eastern Washington University, need to be formalized, the auditor said.

The city also was criticized for filing its financial statements with the state auditor about four months late.

Employee benefit records also need upgrading, the auditor said.

The auditor wants the city to develop an accounting of fixed assets owned by the city such as streets and water pipes.

Grant money received by the city should be included in the general accounting system, the auditor said.

, DataTimes