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• • • • TOWN OF SURFSIDE, FLORIDA • SCHEDULE OF FINDINGS AND QUESTIONED COSTS • • FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2014 • • SECTION II—FINANCIAL STATEMENT FINDINGS (CONTINUED) • • MA TERIAL WEAKNESS(CONTINUED) • 2013-001 Review and Recording of Financial Transactions (continued) • • Views of Responsible Officials and Planned Corrective Actions • A detailed general ledger account analysis will be performed on a quarterly basis by supervisory • staff to ensure accuracy and completeness of account balances. Finance personnel responsible • for preparing journal entries will seek the advice and consult with supervisory Finance Department staff or the auditors for guidance should any complex or unusual transactions occur • during the fiscal year. • ® 2014-001 Bank Reconciliations • Criteria • ® Prudent practice would dictate that a formal bank reconciliation be performed each month prior to the end of the following with the appropriate review and sign off as evidence of the • completeness, the accuracy and timeliness of the reconciliation. Review of the monthly bank • reconciliations reduces the risk that errors. fraud or misuse of funds could go undetected and/or ® uncorrected. • Condition • During our audit of the fiscal year ended September 30, 2014, we selected 3 months of bank • reconciliations for the Town's pooled cash bank account. The audit disclosed that the bank • reconciliations did not contain evidence of review or the date they were prepared. Based on • further inquiry, we noted that the bank reconciliations are not reviewed after being prepared by the Controller. • • Cause • Proper supervision needs to be conducted over the bank reconciliation process • • Effect • Without bank reconciliations being reviewed timely for accuracy and completeness, the Town • would not know if the cash position is accurate and whether or not there were errors, fraud or • misuse of funds. • • • Ill • •