Report 2020-804 Recommendation 6 Responses
Report 2020-804: City of Lindsay: It Must Take Substantial Action to Address Its Financial Problems and Its Inadequate Management Practices (Release Date: August 2021)
Recommendation #6 To: Lindsay, City of
To ensure that the rates and fees it charges are appropriate to cover the cost of the related services, by August 2022 Lindsay should improve its accounting records so as to identify how much revenue it receives from each fee or rate.
Annual Follow-Up Agency Response From October 2022
The city has improved accounting records to identify costs for services provided. It has also improved accounting records to identify how much revenue we receive from each fee or rate.
As part of our efforts to meet this recommendation, the finance team changed receipt procedures to allow the system to capture service descriptions more accurately. This change is a solution we are able to implement until the City's financial position positively advances to where we are able to afford a new accounting software.
- Completion Date: October 2022
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
1-Year Agency Response
State Auditor Recommendation 6: To ensure that the rates and fees it charges are
appropriate to cover the cost of the related services, by August 2022 Lindsay
should do the following:
- Improve its accounting records so as to identify how much revenue it
receives from each fee or rate.
Response: The City agrees with this recommendation.
Corrective Action: By August 2022, the City's Finance Department will establish
new accounting lines so as to better identify how much revenue is received from
each fee or rate.
On August 23, 2022, City staff presented the fee tables based on Willdan Financial
Services' study and analysis (Exhibit D). New accounting lines will serve to better
identify how much revenue is received from each fee or rate pending the adoption
of a new Citywide fee schedule. These accounting lines would be based on the
results of the full Cost Allocation Plan, Comprehensive Citywide User Fee Study,
and Analysis by Willdan Financial.
City staff plans to hold a public hearing to consider the adoption of a new citywide
fee schedule, establishing and amending municipal fees and charges for various
municipal services, and repealing all other resolutions relative to municipal fees
and charges thereto.
Estimated Completion: August 2022.
Responsible Staff: Finance Department.
Status: Complete.
- Completion Date: August 2022
- Response Date: August 2022
California State Auditor's Assessment of 1-Year Status: Partially Implemented
The city explained that it is still establishing its accounting records. Until it does so, we will continue to report this recommendation as not fully implemented.
- Auditee did not substantiate its claim of full implementation
6-Month Agency Response
By August 2022, the City's Finance Department will establish new accounting lines so as to better identify how much revenue is received from each fee or rate.
- Estimated Completion Date: August 2022
- Response Date: February 2022
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The city plans to establish new accounting lines so as to better identify how much revenue is received from each fee or rate.
- Estimated Completion Date: August 2022
- Response Date: November 2021
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2020-804
Agency responses received are posted verbatim.