palm beach country schedule of expenditures of federal awards anh state financial assistance for the year ended September 30, 2008_part7 doc

PALM BEACH COUNTY, FLORIDA TAX COLLECTOR SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the fiscal year ended September 30, 2008 Variance With Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) Revenues: Charges for services 62,959,200$ 61,339,200$ 65,133,926$ 3,794,726$ Less - excess fees paid out (43,276,478) (41,356,478) (46,539,258) (5,182,780) Investment income 1,500,000 1,200,000 1,151,068 (48,932) Total revenues 21,182,722 21,182,722 19,745,736 (1,436,986) Expenditures: Current: General government 20,852,947$ 20,944,267$ 19,602,071 1,342,196 Capital outlay 329,775 238,455 143,665 94,790 Total expenditures 21,182,722 21,182,722 19,745,736 1,436,986 Excess of revenues (under) expenditures - - - - Net change in fund balance - - - - Fund balance, October 1, 2007 - - - - Fund balance, September 30, 2008 -$ -$ -$ -$ Section 195.087, Florida Statutes, governs the preparation, adoption, and administration of the budget of the Tax Collector. On or before a legally designated date each year, the Tax Collector shall submit to the Florida Department of Revenue a budget for the ensuing fiscal year. A copy of such budget shall be furnished at the same time to the Board of County Commissioners. Final approval of the budget is given by the Florida Department of Revenue. The budget is adopted for the general fund on a basis consistent with GAAP. The level of budgetary control is at the fund level. VI-17 This is trial version www.adultpdf.com PALM BEACH COUNTY, FLORIDA TAX COLLECTOR STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND For the fiscal year ended September 30, 2008 Balance Balance 10/1/2007 Additions Deductions 9/30/2008 ASSETS Cash and cash equivalents 29,225,541$ 3,257,305,959$ 3,243,043,043$ 43,488,457$ Accounts receivable, net 183,658 7,143,933 7,211,339 116,252 Due from other governments - 156 156 - Total assets 29,409,199$ 3,264,450,048$ 3,250,254,538$ 43,604,709$ LIABILITIES Vouchers payable and accrued liabilities 131,752$ 1,139,142$ 887,028$ 383,866$ Due to other governments 26,292,260 2,328,585,443 2,320,497,577 34,380,126 Due to individuals 2,985,187 1,006,083,868 1,000,228,338 8,840,717 Total liabilities 29,409,199$ 3,335,808,453$ 3,321,612,943$ 43,604,709$ VI-18 This is trial version www.adultpdf.com McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. VI-19 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Anne M. Gannon Tax Collector Palm Beach County, Florida We have audited the financial statements of the major fund and the aggregate remaining fund information of the Tax Collector of Palm Beach County, Florida (the Tax Collector), as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009. These financial statements were prepared to comply with Section 218.39(2), Florida Statutes and Section 10.557(3), Rules of the Auditor General for Local Government Entity Audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Tax Collector’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control over financial reporting. Our consideration of the internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over reporting that we consider to be a significant deficiency. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential, will not be prevented or detected by the entity's internal control. We consider the deficiency described in the accompanying schedule of findings and responses, 2008-01, to be a significant deficiency in internal control over financial reporting. This is trial version www.adultpdf.com VI-20 A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we do not believe that the significant deficiency in internal control over financial reporting described above is a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the Tax Collector’s office in a separate letter dated June 15, 2009. The Tax Collector’s response to the finding identified in our audit and is described in the accompanying schedule of findings and responses. We did not audit the Tax Collector’s response and, accordingly, we express no opinion on it. This report is intended solely for the information and use of the Tax Collector, management of the Palm Beach County, Florida Tax Collector’s office, and the Auditor General, State of Florida and is not intended to be and should not be used by anyone other than these specified parties. West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com Tax Collector, Palm Beach County Schedule of Findings and Responses Year Ended September 30, 2008 VI-21 IC 2008-01 – Significant Issues Documentation Criteria : Internal control policies and procedures should provide reasonable assurance regarding the reliability of the financial reporting process, including the accurate recording and accounting of routine transactions as well as significant and unusual transactions. Condition : The Tax Collector’s Office purchased a tax software application license at the end of the fiscal year which based on the terms of the contract benefited a future period. We noted that the Tax Collector’s Office recorded an expenditure for the entire amount of the software purchase in the fiscal year ended September 30, 2008, instead of recording the purchase as a prepaid item. The related timing of the expenditure recognition resulted in an audit adjustment to the financial statements. Context : This condition is systemic in nature. Effect : Increase the risk of material misstatement of the financial statements. Cause : Lack of formalized policies and procedures to ensure adequate research and documentation is appropriate. Recommendation : The Tax Collector’s Office may periodically be faced with various complex transactions which require a rigorous analysis of the facts and adequate accounting research. We recommend that management establish an effective review procedure to ensure that all non-routine and significant transactions are properly reported in the financial statements. Views of responsible officials and planned corrective action : We will review our existing procedures and make the necessary changes, to these procedures, to ensure that all transactions are properly reported in the financial statements. This is trial version www.adultpdf.com McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. VI-22 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida The Honorable Anne M. Gannon Tax Collector Palm Beach County, Florida We have audited the accompanying financial statements of the major fund and the aggregate remaining fund information of the Tax Collector of Palm Beach County, Florida (the “Tax Collector”), as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009, which was prepared to comply with State of Florida reporting requirements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is dated June 15, 2009, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors’ reports: Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. The recommendations made in the preceding annual financial report have been addressed in Appendix B to this report. Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Tax Collector complied with Section 218.415, Florida Statutes. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve the Tax Collector’s financial management, accounting procedures and internal controls. The recommendations to improve the Tax Collector’s financial management, accounting procedures and internal controls have been addressed in Appendix A to this report. This is trial version www.adultpdf.com VI-23 Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the determination of financial statements amounts that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. Sections 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that are inconsequential to the determination of financial statement amounts, considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred and (2) control deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. This information is disclosed in Note 1 of the Tax Collector’s financial statements. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America requires us to indicate that this letter is intended solely for the information and use of the Tax Collector, management of Palm Beach County, Florida Tax Collector’s Office and the State of Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other than the specified parties. West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com Tax Collector of Palm Beach County, Florida Appendix A Current Year Recommendations to Improve Financial Management, Accounting Procedures and Internal Controls VI-24 No. Current Year’s Observations ML 08-01 Application Access Security ML 08-02 Time card Approval This is trial version www.adultpdf.com Tax Collector of Palm Beach County, Florida Appendix A Current Year Recommendations to Improve Financial Management, Accounting Procedures and Internal Controls VI-25 ML 08-1 – Application Access Security Criteria : Effective application access security relies on a security structure that includes the use of the following: • Available access security features in the software; • Security administration procedures developed and documented for the granting, revoking and reviewing of data and resource access. Condition : There were aspects of security management that needed improvement. Specific details of these issues are not disclosed in this report to avoid the possibility of compromising The Tax Collector’s Office (TCO) information in accordance with Florida Statute 281.301. However, appropriate personnel have been notified of these issues which included the following: • Certain TCO staff had the capability to perform incompatible duties within the payroll function. We noted an instance where employee access privileges should be made more restrictive by the TCO to enforce an appropriate segregation of duties. Cause : Lack of enforcement of policies to support proper restriction of access. Effect : • Unauthorized access to the application; • Segregation of incompatible duties is fundamental to the reliability of an organization’s internal controls; • Appropriate segregation of duties can assist in the detection of mistakes or errors and potential fraud; • An appropriate division of roles and responsibilities prevents the possibility of a single individual subverting a critical process. Context : The finding is considered systemic in nature. Recommendation : We recommend management implement the following corrective actions: • Appropriate application security control features to enhance security over its data and programs; • Review and enhance established procedures that periodically review the duties and access capabilities of staff and implement, to the extent practicable, proper segregation of duties and access levels to ensure that personnel are performing only those duties established for their respective jobs and positions. Management Response : We concur with the recommendation and implemented appropriate application security controls. We also reviewed duties and access capabilities of staff and made the appropriate changes. This is trial version www.adultpdf.com [...]... in Accordance with the Rules of the Auditor General of the State of Florida The Honorable Gary R Nikolits Property Appraiser Palm Beach County, Florida We have audited the accompanying financial statements of the major fund of the Property Appraiser of Palm Beach County, Florida, (the Property Appraiser) as of and for the year ended September 30, 2008, and have issued our report thereon dated June... analysis, these financial statements do not constitute a complete presentation of the financial position of the Palm Beach County, Florida, Property Appraiser as of September 30, 2008 and the changes in financial position for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State. .. Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Gary R Nikolits Property Appraiser Palm Beach County, Florida We have audited the financial statements of the major fund of the Property Appraiser of Palm Beach County, Florida (the “Property Appraiser”), as of and for the year. .. to reflect the financial position or the results of operations of Palm Beach County, Florida (the County) taken as a whole Section 10.556(6), Rules of the Auditor General for Local Governmental Entity Audits, requires the Palm Beach County, Florida, Property Appraiser financial statements to only present fund financial statements Accordingly, due to the omission of government-wide financial statements... Fund (State Board of Administration of Florida or SBA) is an external investment pool operated in a manner consistent with the SEC‟s Rule 2a7 of the Investment Company Act of 1940 Regulatory oversight of the State Board of Administration is provided by three elected officials who are accountable to the electorate: the Governor of the State of Florida, as Chairman; the Chief Financial Officer of Florida,... in the United States of America We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information However, we did not audit the information and express no opinion on it This report is intended solely for the information and use of the Property Appraiser, management of the Palm. .. each year, the Property Appraiser shall submit to the Florida Department of Revenue a budget for the ensuing fiscal year A copy of such budget shall be furnished at the same time to the Board of County Commissioners Final approval of the budget is given by the Florida Department of Revenue The budget is adopted for the general fund on a basis consistent with GAAP The level of budgetary control is at the. .. ACCOUNTING POLICIES The following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements: Reporting Entity The Palm Beach County Property Appraiser (the Property Appraiser) is a separately elected county official established pursuant to the Constitution of the State of Florida The Property Appraiser‟s financial statements do not... amounts at the beginning of the next fiscal year Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting... Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) The financial activities of the Property Appraiser, as a constitutional officer, are included in the Palm Beach County, Florida Comprehensive Annual Financial Report Basis of Presentation The accounting records of the Property Appraiser . the financial statements of the major fund and the aggregate remaining fund information of the Tax Collector of Palm Beach County, Florida (the Tax Collector), as of and for the year ended September. statements of the major fund and the aggregate remaining fund information of the Tax Collector of Palm Beach County, Florida (the “Tax Collector”), as of and for the year ended September 30, 2008, . expenditure for the entire amount of the software purchase in the fiscal year ended September 30, 2008, instead of recording the purchase as a prepaid item. The related timing of the expenditure