Memorandum

City of Lawrence

City Auditor

TO:	Mayor Amyx and Members of the City Commission
FROM:	Michael Eglinski, City Auditor
DATE:	July 18, 2014
RE:	Approve initiating a performance audit of financial indicators

I would like you to consider approving a performance audit of financial indicators as an amendment to the current audit plan. I will come back to the City Commission for consideration of a plan for the coming 12 months, but before that I would like to start work on the financial indicators project.

The financial indicators project is a performance audit that I have done every year. The work involves compiling a set of financial ratios for Lawrence, comparing those ratios to benchmarks and looking at trends over time.  The purpose of the project is to identify significant existing or emerging financial problems, put the city’s finances in context, and encourage discussion of the city’s finances.

Action

Approve initiating the financial indicators performance audit.