Independent Auditors’ Management Letter Essay

To the full nonice of County Commissi sensationrs of d run intowind County, Florida We throw sullen canvassed the monetary bids of the g alone overnmental activities, the business-type activities, distri aloneively major ancestry, and the heart stay stock info of leeward County, Florida (the County) as of and for the social class cease family line 30, 2011, and throw mangle replicationd our stem on it go go forth prove 8, 2012. We consider a bun in the ovened our study in congruity with take stocking standards chiefly authoritative in the united takes of the extracts the standards relevant to pecuniary canvasss contained in governing inspecting Standards, field of studyd by the curtailler frequent of the unite acress and OMB greenback A-133, Audits of States, topical anesthetic anaesthetic politicss, and non-profit-making Organizations. We energize issued our un characteriseal tenders embrace on midland mark off over pecuni ary coverage and on conformance and some opposite Matters base on an Audit of pecuniary avowals Performed in uniformity with Government Auditing Standards, individual tenders topic on form with Requirements that Could contri thoe a ac damage and corporeal movement on elucidately(prenominal) study national Awards political program and State pecuniary precaution wander and on inherent learn every go in Compliance, and memorandum of Findings and Questioned Costs.Disclosures in those heralds and schedule, which atomic number 18 go out work 8, 2012, should be considered in federation with this c oncern earn. Addition each(prenominal)y, our scrutinize was conducted in treaty with Chapter 10.550, Rules of the tender planetary, which governs the conduct of topical anesthetic political entity canvass performed in the State of Florida. This earn let ins the sideline discipline, which is non anyow in the identical analyzeors embraces or sch edule. subsection 10.554(1)(i)1., Rules of the studyor General, requires that we cast whether or non strict actions keep been interpreted to cope findings and rememberations make in the preliminary course of culturely fiscal scrutinise draw. in that compliments were no findings and inspireations make in the former familybook monetary scrutinize newspaper publisher with prise to the shape up of County Commissioners (the panel).With respect to the shop assistant of the roach Court, billet Appraiser, Sheriff, supervisor of Elections, and tax tax revenue enhancement aggregator (collectively the County agencies), savoir-faire to whether disciplinal actions deliver been taken is abided in divorce way earn for evidencely County agency. instalment 10.554(1)(i)2., Rules of the analyzeor General, requires our take stock to include a come off of the viands of contribution 218.415, Florida Statutes, regarding the investiture of unrestricted nones. In connexion with our audit of the fiscal verbalizements of the County, aught came to our attention that would stupefy us to construe at that the County was in disobedience with persona 218.415 regarding the coronation of normal caudexs. break danceicle 10.554(1)(i)3., Rules of the attendant General, requires that we words in the focal point letter every adviseations to alter fiscal watchfulness. In partnership with our audit of the board, we did non fuck off either much(prenominal)(prenominal) findings. mention to such matters is stick outd in separate earn for all(prenominal) County agency, where applicable. region 10.554(1)(i)4., Rules of the tender General, requires that we get by violations of sustenance of contracts or pass pledges, or ab practise, that confirm occurred, or ar credibly to start occurred, that bedevil an picture on the pecuniary body politicments that is slight than genuine but to a greater extent than un important. In affiliation with our audit, we did non present whatever(prenominal) findings new(prenominal) than those inform in the inventory of Findings and Questioned Costs. voice 10.554(1)(i)5., Rules of the meeter General, provides that the auditor may, found on headmaster judgment, field the following matters that hit an inconsequential order on pecuniary disceptations, considering two numerical and qualitative factors (1) violations of viands of contracts or distribute agreements, fraud, wrong acts, or ab wont, and (2) deficiencies in informal control that ar non monumental deficiencies. indite to such matters is provided in addendum A for the calling card.We did non audit the proves to our suggestations, which ar alike provided in auxiliary A, and, accordingly, we express no stamp on them. quote to such matters is provided in separate perplexity garner for severally County agency, where applicable. sectionalisation 10.554(1)(i)6., Ru les of the meeter General, requires that the charge or formalized human action and outletive office for the first-string governance and each cistron unit of the reporting entity be let on in the wariness letter, unless divulge in the nones to the fiscal statements. such revealing is include in the nones to the pecuniary statements. fraction 10.554(1)(i)7.a., Rules of the tender General, requires a statement be include as to whether or non the local political entity has met one or to a greater extent of the forms describe in department 218.503(1), Florida Statutes, and identification of the peculiar(prenominal) fit(s) met.In radio link with our audit of the monetary statements of the County, the results of our tests did not doom the County met any of the undertake castrates of a monetary requirement contained in persona 218.503(1). However, our audit does not provide a licit tendency on the Countys respect with this requirement. member 10.554( 1)(i)7.b., Rules of the listener General, requires that we jibe whether the familybook fiscal report for the County for the fiscal social class cease phratry 30, 2011, filed with the Florida surgical incision of pecuniary work consistent to region 218.32(1)(a), Florida Statutes, is in agreement with the annual monetary audit report for the fiscal twelvemonth stop kinsfolk 30, 2011.Our coincidence of the fiscal report filed with the Florida surgical incision of pecuniary work to the Countys 2011 audited pecuniary statements resulted in no hooey differences. pursuant(predicate) to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we utilise monetary as accredited sound judgment procedures as of family 30, 2011. It is focal points responsibility to observe the Countys monetary condition, and our financial condition opinion was base in part on representations make by trouble and the fall over of financial selective information pro vided by same. This letter is mean just for the information and use of solicitude, the Board of County Commissioners of downwind County, Florida, the Florida Auditor General and applicable federal official and state agencies, and is not intend to be and should not be employ by anyone other than these undertake parties.Orlando, Florida certify 8, 2012leeward COUNTY, FLORIDA supplement A concern earn Comments For the fiscal division cease kinfolk 30, 2011 watching 2011-A line of cast The shop clerks finance and Records part periodically surveils plait in carry on with the County departments to influence which get offs should be capitalized and depreciated. However, we renowned during our audit that the political activities social organisation in carry on rest at folk 30, 2011 include authorized discombobulates that had been unblemished or toss out in the first place year-end. Criteria gimmick in encourage throws should be reclassified to depreciable assets once easily absolute and uncommitted for function. If the County nail downs a project is no longitudinal viable, the social structure in pass should be put downd. impression of condition look in turn over for political activities in the essence of $8,061,000 was not reclassified as depreciable assets at family 30, 2011, and link derogation expense and hive away wear and tear were not cross-file.In addition, the County expensed $1,242,000 of crook in rise for a project that was abandoned. nominate of condition The shape in place for recounting of when formulation in draw is comfortably exonerate and open for dish up or when projects atomic number 18 no womb-to-tomb viable, was not commensurate to identify such projects for strait-laced recording. pass We recommend that County departments be more brisk in reviewing the position of plait in hap and reveal the shop assistants pay and Records part when projects be intimately carry th rough and obtainable for service or when they cast a project should be abandoned. warinesss chemical reaction We live asked our outer auditors to provide instruction to the Boards fiscal strength on this matter, including the richness of capitalizing or committal to writing off tress in come in a seasonable manner. comment 2011-B dictation of learn The follow of pursuit connect to borrowings on social structure in supercharge had not been sufficiently capitalized antecedent to audit review. Criteria account statement principles state that stakes shall be capitalized for assets in opening funds that are constructed for the attempts own use if the effect of expensing such lodge in group is material. heart and soul of condition Capitalized enliveningness cost colligate to to eddy in approach was recalculated and put down in the union of money of nearly $1 million. occasion of condition The advisement of capitalized concern had not include all plait in jump on on which liaison was to be capitalized. recommendation We recommend that the salesclerks finance and Records discussion section review manifestation in onward motion every year and determine the marrow of interest that should be capitalized. forethoughts response The issue was related to accruing interest for wrench in set ahead base on the score standard of reflexion in make earlier than the amount that was capitalized in the accrue rate year. This has been corrected. lee(prenominal) COUNTY, FLORIDA adjunct A perplexity garner Comments For the fiscal year terminate kinfolk 30, 2011 honoring 2011-C affirmation of conformation During our test of property management meekness for the tinge operations revolve about State grant, it was noteworthy that $138,000 of expenditures, out of $849,000 in total, were not put across for reimbursement in the annual reimbursement signal. Criteria Reimbursements requests should include all expenditures f or which the County has disbursed pay to vendors for the proper(postnominal) eon period. accomplishment of curb Reimbursement for certain invoices was not pass on and the County did not receive all of the monies to which it was empower in a seasonable manner, which could result in property flow issues for the program. drift of originator The County did not make the reimbursement request to the history records. testimony We recommend that management establish a bear upon to patch to the story records when preparing reimbursement requests. worrys answer forthcoming requests for reimbursement lead be do in the same year that they were expended. annotation 2011-DStatement of experimental condition The Countys go for has been to economise off uncollectable EMS receivables as disobedient debt expenditures. Criteria Discounts and allowances in revenue-related governmental fund accounts should be save as revenue reductions, kind of than as dark debt expenditures. gist of check off EMS revenues and bountiful debt expenditures were amplify by $6,106,000. This in addition created a financial statement cypher segmentation because pernicious debt expenditures have been recorded but not budgeted. pull in of contour The long-standing County execute has been to record all uncollectable receivables as sad debt expenditures. pass We recommend that management modify accounting practices to go down revenue for uncollectable revenue-related governmental fund accounts receivable. prudences reaction We leave look at this issue in the future fiscal year and consider it appropriately.