The good news from Provo City's annual financial audit is that the accounting books are in good hands. The better news is that all of Provo City's departments managed to stay within their budgets.

The certified public accountant firm of Hawkins, Borup, Cloward & Co. conducted the audit for the year ending June 30, 1990. Mark Whittaker, a partner in the firm, presented the findings to the Provo City Council at its meeting Tuesday.The city followed generally acceptable accounting methods, said Whittaker, and gets a financial "clean bill of health. The city is in excellent financial condition."

Provo also did a good job on budgeting. No department exceeded its budget, said Whittaker.

The East Bay Golf Course debt service was paid off this year, several years ahead of schedule. Whittaker said Provo issued bonds for the construction of the golf course, and increased revenue from the East Bay area has provided funds to pay the debt off early.

Whittaker listed some improvements the auditors suggested in internal accounting - billing from and to different Provo City departments.

The auditors suggested reconciling payroll accounts with postings in the general ledger each pay period. Whittaker said if an error does occur, it is much easier to track if the reconciliation is done often rather than only at the end of the year.

A special code was also recommended for entering accounts on vehicle maintenance and acquisition. The report said the current system is not consistent.

The Redevelopment Agency's budget figures were lower than the adopted budget. The auditors suggested the approved budget amount be recorded with reductions supported by an adjustment form.

Provo's Chief Financial Officer George Karlsven said the city will adopt the recommendations.

The final internal accounting problem identified by the auditors is that Provo does not have an adequate job cost system to account for capital improvement projects in enterprise operations.

Karlsven said the city is looking into software that could help with the accounting problems involved with job cost identification.

The audit found only one problem with compliance to state record keeping requirements. It was recommended Provo establish account codes to track all expenses for revenue received from the Liquor Law Enforcement program.

The auditors' report says Provo received $106,664 of Liquor Law Enforcement funds from the state for enforcement of state liquor laws. Only the amount spent on officers assigned specifically to liquor laws was recorded as such, and other related expenses were recorded in the general ledger.

Provo's response is that the city will adopt the suggestion of the auditors.