__________City Of_____________________________________
      Gainesville    OFFICE  OF  THE  CITY  AUDITOR

September 27, 1996

Imogene Isaacs
Ricardo Fernandez
NALGA Quality Control Review Team

Thank you for participating in the External Quality Review of the Gainesville City Auditor's Office using guidelines established by the National Association of Local Government Auditors (NALGA).  Your review is a valuable part of our continuing efforts to improve the quality of audits performed by the Gainesville City Auditor's Office.  This is the first quality review conducted since the inception of the City Auditor's Office in 1980.  We are pleased you found that audits performed by the Gainesville City Auditor's Office comply with Government Auditing Standards, 1994 Revision, issued by the Comptroller General of the United States.

Just as significant, suggestions provided in your companion letter include several areas that will further improve our audit process, coverage and reporting.  Your comments and suggestions will require careful thought and planning to implement and are expected to enhance the level of service provided to the City Commission and management.  Our response to your comments and suggestions are as follows:

Issue 1: City Commission Resolution R-85-37

We agree.  Resolution R-85-37 governs the internal responsibilities and administrative procedures of the City Auditor's Office.  The Resolution was first adopted in 1981 with minor revisions made in 1983 and then again in 1985.  We are aware that certain sections of the Resolution are either outdated or require strengthening and have been considering amendments to the Resolution.  Your identification of several key areas in the Resolution requiring change are relevant and timely and will serve as a guideline to initiate revisions.

Issue 2: Follow-Ups

We agree.  The implementation of follow-up recommendations has been a continual area of concern for us.  As you know, we initiated discussions with management several years ago regarding a system to follow-up on audit recommendations and a database was created.  We will incorporate your suggestions in our continuing efforts to resolve this issue.

Issue 3: Audit Coverage

We agree.  Your comments regarding audit coverage are very pertinent to discussions currently taking place regarding the development of our strategic plan and annual audit
plan.  As development of these long and short range plans continues, we will discuss with management your comments regarding the inclusion of additional reviews of Gainesville Regional Utilities and continued expansion of our operational audit program.

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