MONROE - In a meeting Monday, the City of Monroe Finance and Taxation Committee voted 3-1 to authorize consolidation of most of the city's funds into one bank.
The consolidation is intended to make end-of-month monthly bank statement reconciliations easier and faster and to reduce chances of errors from transferring funds between city department accounts. The city's computerized accounting system will continue to track departmental expenses and revenues.
"The monthly reconciliation is key to avoiding a lot of problems," said Phil Rath, city administrator.
The general cash account had not been reconciled for 2011, which created an issue with finishing the 2011 audit. The cash reconciliation is finished and accounts were found to be correct. The 2011 audit is now finished.
The city presently has about 25 accounts. City Comptroller Bridget Schuchart said she would move all but about five accounts into one.
Utilities' accounts will remain separate. Schuchart said she would also keep separate accounts for excess taxes, debt service, and community development building grants, as well as the general fund. Several departments' budget funds, combined in the general account, are already under one bank. A utility depreciation sinking fund will be combined with a current equipment replacement fund in the Wisconsin Local Government Investment Pool (LGIP).
Tyler Schultz voted against the motion, stating that it would "cause problems down the road."
The move to consolidate bank accounts comes on the heels of a months-long effort to reconcile bank statements with the city's budgeting account, which harkened back to early 2011.
The city's Finance Department needs to verify some $2.4 million worth of transactions on the books. After eight months of in-house work, the city in September contracted with CIVIC Systems, LLC, which provides the city's financial software, for up to $5,000 for services to help clear up the outstanding transactions still on the books.
The consolidation is intended to make end-of-month monthly bank statement reconciliations easier and faster and to reduce chances of errors from transferring funds between city department accounts. The city's computerized accounting system will continue to track departmental expenses and revenues.
"The monthly reconciliation is key to avoiding a lot of problems," said Phil Rath, city administrator.
The general cash account had not been reconciled for 2011, which created an issue with finishing the 2011 audit. The cash reconciliation is finished and accounts were found to be correct. The 2011 audit is now finished.
The city presently has about 25 accounts. City Comptroller Bridget Schuchart said she would move all but about five accounts into one.
Utilities' accounts will remain separate. Schuchart said she would also keep separate accounts for excess taxes, debt service, and community development building grants, as well as the general fund. Several departments' budget funds, combined in the general account, are already under one bank. A utility depreciation sinking fund will be combined with a current equipment replacement fund in the Wisconsin Local Government Investment Pool (LGIP).
Tyler Schultz voted against the motion, stating that it would "cause problems down the road."
The move to consolidate bank accounts comes on the heels of a months-long effort to reconcile bank statements with the city's budgeting account, which harkened back to early 2011.
The city's Finance Department needs to verify some $2.4 million worth of transactions on the books. After eight months of in-house work, the city in September contracted with CIVIC Systems, LLC, which provides the city's financial software, for up to $5,000 for services to help clear up the outstanding transactions still on the books.