An independent audit of Carson City government found a "significant deficiency" in the how the city handles access to its payroll system. The city said it has corrected the error.
Reno public accountants Kafoury, Armstrong & Co. found in a city audit for the 2006-2007 fiscal year that certain parts of the payroll system were not restricted enough and allowed for some transactions that could not be authorized or detected.
Nothing was wrong with any finance reports, however.
The report defined a "significant deficiency" as something that hurts an agency's ability to report finances reliably and could result in errors "more than inconsequential."
The company declined to comment on the audit before it is presented at the board of supervisors meeting Thursday.
City Manager Linda Ritter said the problem has been corrected by assigning one person in the payroll department to make changes and one person to issue checks. The department will also work more with human relations, she said.
The company's audit recommended that the city look at access to critical software applications and make sure control of the software is limited. The city promised finance, information technology and human resources departments will do this, the audit said.
The city is also looking at buying a new payroll system. The $271,000 system it bought in 2005 has problems and could cost too much to upgrade.
A new finance director will also eventually be added, but the city does not have one now because it is trying to save money. Ritter is the acting director.
Five other deficiencies "not considered material weaknesses" were found in how the city handled federal award programs. Those problems came from no proof of receipts for certain certifications or documents. The city promised to correct the problems.
Earlier this month, the city agreed to pay about $92,500 to city employees retirement accounts as the result of another audit report.
• Contact reporter Dave Frank at dfrank@nevadaappeal.com or 881-1212.
If you go
WHAT: Carson City Supervisors meeting
WHEN: 8:30 a.m. Thursday
WHERE: Carson City Community Center, 851 E. William St.
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