The city of Wright City received strong marks in its audit although some areas were identified that could help strengthen internal controls.

The audit, covering the 2009 fiscal year that ended Dec. 31, 2009, was performed by Kerber, Eck and Braeckel LLP, of St. Louis.

During a presentation to the Wright City Board of Aldermen at the end of June, auditor Rick Gratza presented the findings and noted that no difficulties were encountered during the auditing process.

“We didn’t find any material noncompliance,” Gratza said. “That is a very good thing. We also were required to look at the city’s financial reporting and process. We didn’t find any material weaknesses.”

He added, “It was a very good audit. All the accounting records are well maintained and well organized.

Karen Girondo, city treasurer/economic development director, was pleased with the audit outcome. She noted that only nine adjustments were made to the city’s financial statement.

“To only adjust nine for a city of our size, I think that is a good year,” Girondo said. “All in all, I think it was a good audit.”

The areas that were identified for improvements were:

• Review outstanding checks;

• Improve information technology security;

• Collateralization of deposits;

• Reconcile cash receipts to the accounting software; and

• Monitor competitive bidding.

Girondo said the outstanding checks are required as a deposit when a new water account is opened. Auditors recommended the city open a special liability account to deposit the funds. The city holds the deposit money for three years and, if unclaimed, it is then forwarded to the state, according to Girondo.

The city also is going to change how cash receipts are handled following a suggestion from auditors. For receipts involving the municipal court and the water departments, the manual receipts will continue but a second receipt will be entered electronically through the city’s accounting software.

Auditors also wanted to see computer passwords change with more regularity. Auditors suggested the passwords be changed every 60 to 90 days. Since then, aldermen have approved a policy following that suggestion.

In regards to the bidding process, one purchase over the $2,500 amount was found to not have been bidded out properly, though staff in the police department said it had been done. However, the paperwork could not be found.

Girondo said a memo was sent to department heads reminding them of the city’s purchasing policy.

Required by law, the city’s audit was forwarded to the state to meet an Aug. 30 deadline.