HomeMy WebLinkAboutCity of Tamarac Resolution R-94-1201
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CITY OF TAMARAC
RESOLUTION NO. R-94-/fin
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TAMARAC, FLORIDA ACCEPTING THE AUDITOR'S
REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON F.(3REED-UPON PROCEDURES IN
AN AUDIT OF CITY DEPARTMENTS, PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section 5.04 of the Charter of the City of Tamarac provides for
auditing the accounts of any officer or Department Head handling public funds upon
death, resignation, removal or expiration of term of office; and
WHEREAS, in De��mber 1993, the City executed an agreement with Grant
Thornton for an audit of Gity departments whose heads had separated from City
service in recent months which included the departments of City Manager, Community
Development, Finance, Public Services, and Risk Management; and
WHEREAS, the City has received the Auditor's report of Independent Certified
Public Accountants on Agreed -up Procedures in an audit of City Departments; and
WHEREAS, the City Council wishes to accept the Auditor's Report of
Independent Certified Public Accountants on Agreed -Upon Procedures in an audit of
City departments as prepared by Grant Thornton.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF TAMARAC, FLORIDA:
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Section 1: The foregoing "WHEREAS" clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this
resolution.
Section 2: The Auditor's Report of Independent Certified Public Accountants
on Agreed -Upon Procedures in an audit of City Departments is HEREBY ACCEPTED
by the City Council.
Section 3: All resolutions or parts of resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
Section 4: If any clause, section, other part or application of this Resolution is
held by any court of competent jurisdiction to be unconstitutional or invalid, in part or
application, it shall not affect the validity of the remaining portions or applications of
this Resolution.
Section 5: This Resolution shall become effective immediately upon its
passage and adoption.
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PASSED, ADOPTED AND APPROVED this a2v day of
ATTEST:
12
CAROL A. EVANS
CITY CLERK
I HEREBY CERTIFY that I have approved
, 1994.
*ormNantrammowitz, Mayor
RECORD OF COUNCIL VOTE
MAYOR
ABRAMOWIT?_
DIST.1;
V/MKAT1
DIST. 2:
C / P� MIS HKIN
DIST. 3:
C / M SCHREIBER
DIST. 4;
C / W MACHEK L�
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E
May 18, 1994
Ms. Thelma S. Fagelbaum,
Assistant Finance Director
City of Tamarac
7525 N.W. 88th Avenue
Tamarac, Florida 33321
Dear Ms. Fagelbaum:
Suite 1100
Broward Financial Centre
500 East Broward Boulevard
FL Lauderdale. FL 33394.3095
305 764.1235
FAX 305 764.1293
G=Thomtm S
Accountants and
Management Consultants
The US. Member Firm of
Grant Thamton International
Pursuant to our engagement letter dated December 15, 1993, We are pleased to enclose
ten copies of the Report of Independent Certified Public Accountants on Agreed -Upon
Procedures for the City of Tamarac, Florida.
Very truly yours,
SEmmer
sh
Enclosures
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REPORT OF INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS ON
AGREED -UPON PROCEDURES
CITY OF TAMARAC, FLORIDA
December 23, 1993
t I LI
CONTENTS
Page
REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON AGREED -UPON PROCEDURES 1
SUPPLEMENT TO REPORT OF INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS ON AGREED -UPON PROCEDURES
Description of Procedures Performed
and Related Findings
2-5
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Suite 1100
Broward Financial Centre
500 East Broward Boulevard
Ft. Lauderdale, FL 33394.3095
305 7644235
FAX 305 764.1293
G='ffiamm IS
Accountants and
Management Consultants
The U.S. Member Firm of
REPORT OF INDEPENDENT CERTIFIED PUBLIC Grant Thornton International
ACCOUNTANTS ON AGREED -UPON PROCEDURES
Honorable Mayor and Members of Council
City of Tamarac, Florida
We have applied certain agreed -upon procedures, as discussed in the attached supplement, to
selected accounting records of the City of Tamarac, Florida ("the City") as of September 30,
1993 for the Finance and Community Development departments, as of October 30, 1993 for
the City Manager and Public Services departments, and as of November 29, 1993, for the Risk
Management department. These procedures were performed in accordance with the
arrangements set forth in our letter to you dated December 15, 1993. The procedures we
executed were designed utilizing the requirements of the City's Charter Article V Section
5.04(h) and are summarized, with the findings we obtained, in the attached supplement, which
is an integral part of this report.
A
3 Because these procedures do not constitute an audit conducted in accordance with generally
accepted auditing standards, we express no opinion on any of the accounts or items referred to
in the supplement. In connection with the procedures referred to in the attached supplement,
no matters came to our attention that caused us to believe that the specified accounts should be
adjusted. Had we performed additional procedures or had we conducted an audit in
accordance with generally accepted auditing standards, other matters might have come to our
attention that would have been reported to you. This report relates only to the accounts and
items specified in the attached supplement and does not extend to any financial statements of
the City of Tamarac, Florida taken as a whole.
This report is intended solely for the use of management, and appropriate governmental
agencies. This restriction is not intended to limit the distribution of this report, which upon
acceptance by the City, is a matter of public record.
1��, -/-- - -/4,-7&
Fort Lauderdale, Florida
December 23, 1993
City of Tamarac, Florida
4-
SUpPLEMIENT TO REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON AGREED -UPON PROCEDURES
Description of Procedures Performed and Related Findings
COMMUNITY DEVELOPMENT
1. We obtained the time and, expense detail account history for the Community Development
department head noting that no expenses were submitted for payment during the six months
prior to her departure.
2. We obtained a printout for fixed assets in the custody of the Community Development
department. We selected twenty-one items which was the total number of fixed asset items
located in this department and physically inspected them for existence. No exceptions
were noted. During our physical inspection of fixed asset items, some items were noted to
not contain the permanent identification tags. Although the items can be identified through
alternative methods, such as the serial number, we recommend that all fixed assets contain
the permanent identification tag to ensure proper identification and proper location.
3. We obtained the fixed asset disposal report, which includes adjustments and write-offs, for
the year ended September 30, 1993. We reviewed the report for the three months prior to
the Community Development department head's departure. No disposals, adjustments, or
write-offs were noted.
FINANCE
1. We obtained the time and expense detail account history for the Finance department head
noting that one expense item was submitted for payment during the six months prior to her
departure. We inquired as to the procedures for employee expense advance/reimbursement
iz and reviewed written policies. We examined the supporting documentation and written
approvals for compliance with the City's policies and procedures, noting that the City
Manager approval was not obtained for the expense item for mileage reimbursement to a
'w seminar in an amount of $45.50. We recommend that all authorizations and supporting
documentation be obtained prior to the payment of the advance or reimbursement.
2. We obtained a printout for fixed assets in the custody of the Finance department. We
selected thirty items and physically inspected them for existence. No exceptions were
noted.
3- We obtained the fixed asset disposal report, which includes adjustments and write-offs, for
the year ended September 30, 1993. We reviewed the report for the three months prior to
the Finance department head's departure. No disposals, adjustments, or write-offs were
noted.
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City of Tamarac, Florida
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SUPPLEMENT TO REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON AGREED -UPON PROCEDURES
Description of Procedures Performed and Related Findings - Continued
FINANCE - Continued
4. We obtained the miscellaneous receivables detail. We inquired as to the procedures for the
adjustment or write-off of miscellaneous receivables. We reviewed the detail and City
Council minutes for the three months prior to the Finance department head's departure.
No adjustments or write-offs authorized by the Finance department head were noted.
PUBLIC SERVICES
1. We obtained the time and expense detail account history for the Public Services department
head noting that three expenses were submitted for payment during the six months prior to
his departure. We inquired as to the procedures for employee expense
advance/reimbursement and reviewed written policies. We examined the supporting
documentation and written approvals for compliance with the City's policies and
procedures. Two exceptions were noted. One expense item for a seminar in an amount of
$302.42 was not properly authorized by the Finance department. One expense item for a
conference in an amount of $131.40 did not have the required attachment of the copy of
the seminar agenda itemizing the registration fee. We recommend that all authorizations
and supporting documentation be obtained prior to the payment of the advance or
reimbursement.
;a
2. We obtained a printout for fixed assets in the custody of the Public Services department.
We selected thirty items and physically inspected them for existence. No exceptions were
noted. During our physical inspection of fixed asset items, some items were noted to not
contain the permanent identification tags. Although the items can be identified through
alternative methods, such as the serial number, we recommend that all fixed assets contain
the permanent identification tag to ensure proper identification and proper location.
3. We obtained the fixed asset disposal report, which includes adjustments and write-offs, for
the year ended September 30, 1993. As the fixed asset disposal report is only available at
fiscal year end, we obtained the property disposition forms for the period October 1, 1993
through October 30, 1993. We reviewed the report or forms for the three months prior to
the Public Services department head's departure. No disposals, adjustments, or write-offs
were noted.
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City of Tamarac, Florida
SUPPLEMENT TO REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON AGREED -UPON PROCEDURES
Description of Procedures Performed and Related Findings - Continued
PUBLIC SERVICES - Continued
4. We obtained an inventory detail of garage, utility, and gasoline. We selected fifteen items
and physically inspected them for existence. The gasoline inventory was noted to be
A within nine gallons of the inventory detail. Three garage and utility exceptions were
noted. One inventory item recorded as twenty-three units with a unit cost of $3.83 for a
total value of $88.09 was overstated by two units. Two inventory items, one recorded as
seven units with a unit cost of $24.05 for a total value of $168.35, and one recorded as one
unit with a unit cost and total value of $130, were understated by one unit. Based on
inquiry of Purchasing department personnel, those differences usually occur as a result of
emergency work performed outside of regular business hours. We recommend that the
City consider setting specific procedures for the use of inventory for emergency situations
for a better control of inventory.
5. We obtained the inventory detail noting that no inventory adjustments, write-offs, or
dispositions, other than normal usage through work orders not requiring Public Services
department head approval, were recorded during the three months prior to the department
head's departure.
CITY MANAGER
1. We obtained the time and expense detail account history for the City Manager noting that
one expense item was submitted for payment during the six months prior to his departure.
We inquired as to the procedures for employee expense advance/reimbursement and
reviewed written policies. We examined the supporting documentation and written
approvals for compliance with the City's policies and procedures. For the one expense
item for a seminar in an amount of $320, two exceptions were noted. The expense item
was not properly authorized by the Finance department and did not have the required
attachment of the copy of the seminar agenda itemizing the registration fee. We
recommend that all authorizations and supporting documentation be obtained prior to the
Payment of the advance or reimbursement.
2. We obtained a printout for fixed assets in the custody of the City Manager department.
We selected thirty items and physically inspected them for existence. No exceptions were
noted. During our physical inspection of fixed asset items, some items were noted to not
contain the permanent identification tags. Although the items can be identified through
alternative methods, such as the serial number, we recommend that all fixed assets contain
the permanent identification tag to ensure proper identification and proper location.
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City of Tamarac, Florida
SUPPLEMENT TO REPORT OF INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANTS ON AGREED -UPON PROCEDURES
Description of Procedures Performed and Related Findings - Continued
CITY MANAGER - Continued
3. We obtained the fixed asset disposal report, which includes adjustments and write-offs, for
the year ended September 30, 1993. We obtained the property disposition forms for the
period October 1, 1993 through October 30, 1993. We reviewed the report or foams for
the three months prior to the City Manager's departure. No disposals, adjustments, or
write-offs were noted.
4. We inquired as to the procedures for the settlement of litigation matters. We selected six
claims settled during the year ended September 30, 1993 and through October 30, 1993.
All claims were properly approved.
RISK MANAGER
1. We obtained the time and expense detail account history for the Risk Manager noting that
three expenses for one seminar were submitted for payment during the six months prior to
his departure. We inquired as to the procedures for employee expense
advance/reimbursement and reviewed written policies. We examined the supporting
documentation and written approvals for compliance with the City's policies and
procedures. All three expenses for a total amount of $540 contained exceptions. All three
expenses were not properly approved by the Finance department. In addition, the required
supporting documentation for transportation and meals was not included. We recommend
that all authorizations and supporting documentation be obtained prior to the payment of
the advance or reimbursement.
2. We inquired as to the procedures for the settlement of litigation matters. We selected six
claims settled during the year ended September 30, 1993 and through November 29, 1993.
All claims were properly approved.
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01990 City of Temeraic
CITY OF TAMARAC
FINANCE DEPARTMENT
INTEROFFICE MEMORANDUM
TO: STANLEY HAWTHORNE
FINANCE DIRECTOR
FROM: KAREN WILLARD �AV)
COMPTROLLER
SUBJECT: REVIEW OF AUDITORS AGREED UPON PROCEDURES
DATE: JUNE 10, 1994
The purpose and focus of the agreed upon procedures applied by Grant Thornton
were to verify that the resigned department heads did not mishandle the City's assets
including City property, travel, and settlements within six months of their departure.
The findings as a whole reflect that no abuses by the former department heads
occurred. The exceptions noted related to procedural oversights and were very minor
in nature.
COMMUNITY DEVELOPMENT
2. "During our physical Inspection of fixed asset items, some items were
noted to not contain the permanent identification tags."
2 of 30 items checked did not have the tags on them. Each one will be retagged.
FINANCE
1. "...noting that the City Manager approval was not obtained for the
expense item for mileage reimbursement to a seminar in an amount of
$45.50."
The Finance Director filled out a travel expense voucher that requires the City
Manager's signature instead of a mileage reimbursement form that does not.
PUBLIC SERVICES
1. "One expense item for a seminar in an amount of $302.42 was not
properly authorized by the Finance Department.
In reviewing the auditor's workpapers, it was discovered that the one expense item
was actually two that totaled $502.42. Each one was paid directly to the vendor not
the department head. Purchase orders were used and since each one was under
$500, it did not require authorization by the Finance Department.
1."One expense item for a conference In an amount of $131.40 did not
have the required attachment of the copy of the seminar agenda itemizing
the registration fee."
This was an oversight and since been corrected.
CITY MANAGER
I. "For one expense item for a seminar in an amount of $320.00, two
exceptions were noted. The expense Item was not properly authorized by
the Finance Department and did not have the required attachment of the
copy of the seminar agenda itemizing the registration fee."
$320.00 was properly advanced to the City Manager for a seminar. When the travel
expense voucher was turned in, $209.75 was unused and refunded to the City. The
voucher was audited by Finance however it was not signed by the Finance Director
because the City Manager owed the City as opposed to requesting an amount above
that which was previously approved and advanced.
The registration fee was paid directly to the organization conducting the seminar and
the seminar agenda itemizing the fee was attached to that payment.
i2."During our physical inspection of fixed asset items, some items were
noted to not contain the permanent identification tags."
rho
2 of 30 items checked did not have the tags on them. The two items were the City
Manager's cypress phone base and CRT. It was sent in to be repaired and a new
shell was put on it and was never retagged.
RISK MANAGER
V'AII three expenses for a total amount of $540.00 contained exceptions.
All three expenses were not properly approved by the Finance Department.
In addition, the required supporting documentation for transportation and
meals was not included."
Since the expenses were paid from a memo instead of the usual purchase requisition
and the department head's initials were very similar to Finance's authorization, it may
have. looked like it wasn't properly authorized when indeed it was.
The supporting documentation was filed in an alternate location and was available for
exam ination.
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111990 City of Tamarac
CITY OF TAMARAC
INTEROFFICE MEMORANDUM
FINANCE DEPARTMENT
PURCHASING DIVISION
TO: Stanley D. Hawthorne, Finance Director
FROM: Sherry Bauer, Purchasing Officer
SUBJECT: Audit Report Dated December 23, 1993
DATE: June 13, 1994
IC-qI IF
The Audit Report generated by Grant Thornton dated December 23, 1993, indicates
several problems with the Fixed Asset Inventory and the Garage/Utilities Warehouse
Inventory.
DISCUSSION
On June 7, 1994, the Staff met with Grant Thornton and Personnel to discuss the issues
mentioned in the Audit Report. The staff was provided with copies of the back-up
supporting the audit. Verification of the back-up was completed by the Finance
Department for all items at City Hall. The Purchasing Department verified all other items.
1:1019IIJrem
The Purchasing staff was unable to verify tags on two of the five items listed. One of the
items was a Christmas Tree. This tree is very large and to bring it out of storage for
inspection would cost the City considerable personnel time. The second item, a UPS
power supply, would have been impossible to verify. The City has many of these power
supplies. They sell for $300 to $400 and are not tagged. It is unknown if this was an
error created in 1987 or if the item sold for that amount in 1987.
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The Garage and Utility Inventory exceptions are Utility exceptions only. There is no
Garage Inventory. The exceptions mentioned are due to Utility Personnel removing stock
after hours to fill emergency orders. This is a continuing problem but is not significant
enough to warrant the personnel cost necessary to correct it.
A physical inventory of the warehouse is conducted every 6 months. To date, the dollar
value of items not accounted for has been minimal. All inventories are subject to
shrinkage. Our shrinkage rate is less than two -hundredths of a percent.
RECOMMENDATION
No changes recommended at this time.
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