This proposal summarizes work to be done on reconciliations of the 2014 and 2013 Oktoberfest events, an analysis of controls in the Court system, tracing bills from one vendor, consulting on a physical inventory reconciliation, and providing a status update on prior recommendations. Specifically, it involves attempting complete reconciliations of revenues from the Oktoberfest events, analyzing controls and reconciliations in the Court system, electronically entering one vendor's bills for comparison to contracts, assisting with the physical inventory reconciliation, and reporting on progress of previous recommendations.

2. Proposal – Addendum #2
 Analysis of Courts, Special Events & 1 Vendor
 Physical Inventory Reconciliation Consulting
 Status Update – First Set of Recommendations

3. Oktoberfest - What We Know From Our
Prior Work
 2014 Reconciliation
Does not include pre-sales
• Admission Tickets
• Packages such as Food Lovers, Paulaner, Tastybucks,
Ultimate
Does not include booth rental fees
Does not include Chamberlain’s
Does not include Sponsor Revenue

4. Oktoberfest - What We Know From
Our Prior Work
 2014 Reconciliation Errors
 “Showclicks” counts used in the Finance reconciliation
apparently used tickets scanned at entry rather than
tickets sold. (apples to oranges)
 Admission ticket counts used to support cash deposited
in bank incorrectly included comp tickets.
 “Showclicks” indicated 48,371 of various types of
admissions scanned for the 2014 event while the
reconciliation only accounted for 36,174 admissions
leaving more than 12,000 tickets un-reconciled.

5. Oktoberfest - Steps
 Attempt to Perform a Complete Reconciliation of the
2014 Event Cash Per Bank Deposits
 Admission Tickets Sold at Gate
 Admission Tickets Sold in Advance
• Complementary Admission Tickets
 Chamberlain’s
 Packages Sold in Advance
 Tastybucks Sold
• Complementary Tastybucks
• Tastybucks Paid to Vendors
 Booth Rental Fees Collected
 Sponsor Revenue Collected
 Attempt to perform same steps for 2013 event

6. Oktoberfest - Results
Gain a better understanding of sources
of revenues.
Gain further insight into the controls
necessary to properly manage the event.
Gain a template for reconciliations for
future events.

7. Court System – What We Know
From Our Prior Work
 Lack of separation of duties
 The clerks who collect cash can enter data into the Court
computer system and perform their own end of day
reconciliations
 Court personnel could theoretically force the amount entered into
the computer system to match the amount deposited in the bank
 No involvement of the Finance Department in the Court system
accounting
 There is no known independent oversight of the
financial and accounting functions being performed by
the Courts Department
 Court Department’s computer system is not integrated
with the GEMS system

8. Court System - Steps
 Gain an understanding of what reconciliations are
performed by the Courts Department
 Courts use a separate accounting system for which Finance
has no access
 Courts apparently perform their own reconciliations and
supplies the reports to Finance
 Perform an analysis of the cash collected (to cash
recorded) reconciliations prepared by Courts
 Report on potential improvements to Courts separation
of duties
 Determine feasibility of transfer of reconciliation duties to
Finance

9. Tracing of One Vendor’s Billings
 Use a temporary employee (contracted by the Town)
to electronically enter this vendor’s billings into an
electronic file
 KFF will determine which fields are captured and design
the appropriate template
 KFF will then perform a comparison of the billings to
the vendor’s bid and contract
 Recommendations will be made based on this initial
evaluation

10. Physical Inventory Reconciliation Consulting
 Town’s Baseline Fixed Asset Physical Inventory to
be scheduled and performed by outside vendor
 Upon completion of inventory, provide consulting assistance
to staff as they attempt to reconcile the physical count to the
Town’s books and records.
 Perform data mining of the Town’s computer systems to
identify assets purchased with Town or bond funds for
comparison to physical count.
 Assist with locating large dollar or sensitive assets in the
Town’s disposal records.
 Develop template for future yearly fixed asset physical
inventory counts and reconciliations.

11. Status Update First Set of Recommendations
 The status of all recommendations contained in our
First Set of Recommendations will be evaluated and
the progress will be reported.
 This process will be performed after our work involving
the Physical Inventory is completed.

12. QUESTIONS?
Thank You
Larry Kanter CPA/CFF, CFE
3102 Maple Ave. Suite 400
Dallas, Texas 75201
214 207-5238

13. Oktoberfest - Un-reconciled

14. Oktoberfest - Un-reconciled

15. COSO Principles of Effective Internal Control
Control Environment
Risk Assessment
Control Activities
Information &
Communication
Monitoring Activities
1. Demonstrates commitment to integrity and ethical values
2. Exercises oversight responsibility
3. Establishes structure, authority and responsibility
4. Demonstrates commitment to competence
5. Enforces accountability
6. Specifies suitable objectives
7. Identifies and analyzes risk
8. Assesses fraud risk
9. Identifies and analyzes significant change
10.Selects and develops control activities
11.Selects and develops general controls over technology
12.Deploys through policies and procedures
13.Uses relevant information
14.Communicates internally
15.Communicates externally
16.Conducts ongoing and/or separate evaluations
17.Evaluates and communicates deficiencies