Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword or section
Like this
1Activity

Table Of Contents

0 of .
Results for:
No results containing your search query
P. 1
12-003FinalAuditReport -FY10FinancialIntegrityPrinciples

12-003FinalAuditReport -FY10FinancialIntegrityPrinciples

Ratings: (0)|Views: 1,484 |Likes:
Published by al_crespo

More info:

Published by: al_crespo on Aug 06, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

08/06/2012

pdf

text

original

 
 
THEODORE P. GUBA, CPA, CIA, CFEINDEPENDENT AUDITOR GENERALTelephone: (305) 416-2044Telecopier: (305) 416-2046E-Mail: tguba@miamigov.com
 1July 27, 2012Honorable Members of theCity Commission3500 Pan American DriveMiami, FL 33133Re: Audit of Compliance with the Financial Integrity PrinciplesAudit No. 012-003Commissioners:Section 18-541 of the City Code requires that a written report be prepared and “…transmittedto the mayor and the members of the city commission by July 1 of each year as tocompliance with the principles and policies set forth in this division.” This report providesthe results of our audit of the City’s compliance with the Financial Integrity Principles, ascodified and amended in Chapter 18, Article IX, Sections 18-541 and 18-542 of the CityCode, for the period October 1, 2009, through September 30, 2010 and selected transactions prior and subsequent to this period.Based on our examination of applicable records we noted that the City did not comply witheight (8) of the 13 Financial Integrity Principles. Proper implementation and adherence to all13 Principles would provide a strong framework for the integrity of the City’s financial systemand would thus enhance the protection of public funds.Sincerely,Theodore P. Guba, CPA, CIA, CFEIndependent Auditor GeneralOffice of the Independent Auditor General
 
OFFICE OF INDEPENDENT AUDITOR GENERAL/444 S.W. 7TH AVENUE, SUITE 711/MIAMI, FLORIDA 33130-1910
C: The Honorable Mayor Tomas RegaladoJohnny Martinez, Chief Administrator/City Manager Julie O. Bru, City Attorney, City Attorney’s OfficePriscilla A. Thompson, City Clerk, City Clerk’s OfficeAlice Bravo, Assistant City Manager/Chief of InfrastructureLuis Cabrera, Assistant City Manager/Chief of OperationsJanice Larned, Assistant City Manager/Chief Financial Officer Manuel Orosa, Police Chief, Police DepartmentMaurice Kemp, Fire Chief, Fire-Rescue DepartmentStephen Petty, Director, Finance DepartmentCindy Torres, Acting Chief Information Officer, Information Technology DepartmentDaniel J. Alfonso, Director, Strategic Planning, Budgeting & PerformanceAlberto Sosa, Director, Capital Improvement ProgramKenneth Robertson, Director, Purchasing Department Nzeribe Ihekwaba, Director, Public Works DepartmentGeorge Mensah, Director, Community Development DepartmentJuan Pascual, Interim Director, Parks and Recreation DepartmentHaydee Wheeler, Director, NET ProgramMembers of the Audit Advisory CommitteeAudit Documentation FileAudit Conducted By: Lewis Blake, CPA, CIA, Senior Staff Auditor Scarlette Barrios, Staff Auditor Audit Reviewed By: Robyn Sachs, CPA, CIA, CISA, Senior Information SystemsAuditor 
 
OFFICE OF INDEPENDENT AUDITOR GENERAL/444 S.W. 7TH AVENUE, SUITE 711/MIAMI, FLORIDA 33130-1910
CITY OF MIAMIAUDIT OF COMPLIANCE WITH THE FINANCIAL INTEGRITY PRINCIPLESFOR THE PERIOD OCTOBER 1, 2009, THROUGH SEPTEMBER 30, 2010TABLE OF CONTENTS
INTRODUCTION ................................................................................................................................................ 1
 
DEPARTMENTAL RESPONSIBILITY ........................................................................................................... 2
 
OBJECTIVES, SCOPE, AND METHODOLOGY ........................................................................................... 4
 
NOTEWORTHY ACCOMPLISHMENTS........................................................................................................ 5
 
CONCLUSION AND SUMMARY OF FINDINGS .......................................................................................... 6
 
DETAILED AUDIT FINDINGS AND RECOMMENDATIONS .................................................................... 9
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
1
 
-
 
 STRUCTURALLY 
 
 BALANCED
 
 BUDGET ........... 9
 
FORECASTING TECHNIQUES COULD BE ENHANCED
.............................................................. 9
 
 NON-RECURRING EXPENDITURES HAVE DIMINISHED FUND BALANCE 
......................... 11
 
 LACK OF COMPLIANCE WITH SECTION 166.241(2), FLORIDA STATUTES 
........................... 11
 
 ACTUAL GENERAL FUND EXPENDITURES EXCEEDED THE ORIGINAL BUDGET AND RECOMMENDED THRESHOLDS 
.................................................................................................... 25
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
2
 
-
 
 ESTIMATING 
 
CONFERENCE 
 
 PROCESS ........ 27 
 
 ESTIMATING CONFERENCE COMMITTEE RECOMMENDATIONS WERE NOT COMMUNICATED TO THE CITY MAYOR, MANAGER, AND COMMISSIONERS 
................... 27
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
3
 
 – 
 
 INTERFUND
 
 BORROWING .............................. 32
 
 REQUESTS FOR REIMBURSEMENTS WERE NOT MADE IN A TIMELY MANNER
.............. 32
 
 FOLLOW-UP ON PRIOR YEAR AUDIT FINDINGS ..................................................................... 35
 
OUTSTANDING REIMBURSEMENT AMOUNTS DUE FROM OTHER GOVERNMENTS 
....... 54
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
4
 
 – 
 
CITYWIDE 
 
 SURPLUS 
 
OR
 
 DEFICIT ................. 96 
 
CITYWIDE DEFICIT 
........................................................................................................................... 96
 
 SURPLUS ROLLOVER EXPENDITURES WERE FOR ALLOWABLE PURPOSES 
.................... 97
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
5
 
 –RESERVE 
 
 POLICY .............................................. 98
 
 NON-COMPLIANCE WITH UNRESERVED, UNDESIGNATED AND DESIGNATED RESERVE  REQUIREMENTS 
................................................................................................................................ 98
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
 
 – 
 
 PROPRIETARY 
 
FUNDS ................................... 106 
 
 NO ENTERPRISE (PROPRIETARY) FUNDS REPORTED
........................................................... 106
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
 
 – 
 
 MULTI-YEAR
 
FINANCIAL
 
 PLAN .................. 107 
 
 MULTI-YEAR FINANCIAL PLAN WAS NOT TIMELY APPROVED OR ADOPTED
................ 107
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
8
 
 – 
 
 MULTI-YEAR
 
CAPITAL
 
 IMPROVEMENT 
 
 PLAN ............................................................................................................................................................. 111
 
 MULTI-YEAR CAPITAL IMPROVEMENT PLAN WAS NOT TIMELY APPROVED OR ADOPTED
........................................................................................................................................... 111
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
9
 
 – 
 
 DEBT 
 
 MANAGEMENT ..................................... 123
 
 DEBT MANAGED IN ACCORDANCE WITH REQUIRED PRINCIPLES 
................................... 123
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
10
 
 – 
 
FINANCIAL
 
OVERSIGHT 
 
 AND
 
 REPORTING ....................................................................................................................................................................... 126 
 
 REPORTING AND OVERSIGHT REQUIREMENTS 
..................................................................... 126
 
 MONTHLY REPORTS WERE NOT TIMELY ISSUED ................................................................. 126 
 
THE CAFR AND MANAGEMENT LETTER WERE TIMELY PREPARED ................................. 127 
 
THE SINGLE AUDIT AND MANAGEMENT LETTER FINDINGS WERE TIMELY PRESENTED...................................................................................................................................................... 127 
 
SINGLE AUDIT WAS NOT TIMELY PREPARED ....................................................................... 128
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
11
 
 – 
 
 BASIC 
 
FINANCIAL
 
 POLICIES ..................... 134
 
 BASIC FINANCIAL POLICIES WERE MAINTAINED
................................................................. 134
 
FINANCIAL
 
 INTEGRITY 
 
 PRINCIPLE 
 
 NUMBER
 
12
 
 – 
 
 EVALUATION 
 
COMMITTEE ........................ 138
 
 EVALUATION COMMITTEES WERE PROPERLY CREATED
................................................... 138
 

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->