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HomeMy WebLinkAboutCity of Tamarac Resolution R-94-1201 TEMP. RESO. # 7 v 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: 1 1 TEMP. RESO. # l0 2�W .�. 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 Section 3: All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict.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. 1 C 1 TEMP. RESO. # & - %0 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� �ifi'B� r "w " 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 r L. �^ J4�/'2fl 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 �1_ IF4 - IAv 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. f►? l.J City of Tamarac, Florida 6 9,�_, -,-,o 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. 3 1 ' 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. _ 4 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. 5 F TA ' O R + 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. 11 • 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. _N k'', I I - q_'F4 - (afl 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. 0