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City Council Minutes Page 8 November 7, 2005 ----------------------------- does not happen again. Mr. McDonald also reviewed what Abdo, Eick, and Meyers is doing differently as a firm to prevent this from happening again. Councilmember Farber questioned if it had been recommended during audit that ERMU integrate their systems. Mr. McDonald indicated that the comment had been written on ERMU’s audit in previous years. Mr. McDonald noted that it is not uncommon for some companies to have separate systems for billing and payroll, although it is recommended for these systems to be integrated. Councilmember Dietz stated that he would like to see separate wage accounts set up for each division of work so total wages could be reconciled easily at the end of the month. Mr. McDonald stated that Utilities is unique in that they have a lot of job costing and are required to account for each aspect of their duties but that the system could be set up to have separate wage accounts. He noted that the system integration will help reconcile the payroll much easier than before. Councilmember Dietz indicated that he would like to see all checks accounted for and if a check is voided it should be kept with the bank statement and a written explanation should be included. Councilmember Dietz questioned if someone different from who does the payroll is reconciling the payroll accounts at the end of the month. Mr. McDonald indicated that yes, the duties have been segregated. Councilmember Dietz noted that in previous years, the auditors noted on the audit that the financial duties of ERMU needed to be segregated. Councilmember Dietz questioned if an insurance claim has been filed. Ms. Johnson indicated that it has and noted that the city and ERMU are covered for the entire $260,000 minus the $2,500 deductible. Ms. Johnson indicated that the city/ERMU will see an increase in premiums if this claim is reimbursed and that Councilmember Dietz has suggested that ERMU pay the difference in the cost. ERMU General Manager Bryan Adams indicated that restitution has been filed with the court including court fees and auditing fees and any insurance money received would be minus any restitution received. Mayor Klinzing questioned where the city is at with the financial process. Ms. Johnson indicated that financial duties are dispersed among all Finance Department employees, the city has two separate accounts – one for general ledger and one for payroll, no transactions are posted manually, and the financial systems have been integrated since 1986. The City Council thanked Mr. McDonald for sharing this information with them. (Councilmember Motin returned to the meeting) 9.5. Comparable Worth Appeal of Ice Arena Supervisor Jerry Davis Finance and Administrative Services Director/Interim City Administrator Lori Johnson reviewed background and history of the comparable worth appeal by Ice Arena Maintenance Supervisor Jerry Davis. Ms. Johnson also provided an overview of the role of the Personnel Committee. Ms. Johnson noted that Lauren Wipper and Joan Schmidt were present representing the Personnel Committee. She indicated that in February 2004, Mr. Davis filled out a Job Analysis Questionnaire that was returned with a point value of 58. Ms. Johnson stated that the Personnel Committee reviewed the JAQ and concurred with the point