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<br />Sample Government, FLORIDA <br /> <br />SCHEDULE OF FINDINGS AND RESPONSES <br /> <br />FISCAL YEAR ENDED SEPTEMBER 30, 2009 <br />(Continued) <br /> <br />I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued) <br /> <br />Condition <br /> <br />While performing our audit procedures on subsequent receipts, we noted that in several instances, checks <br />received for insurance settlements were not deposited on a timely basis. We noted that a check for <br />$1,002,637.78, dated July 2, 2009, was not deposited until October 2009. In addition, a check for <br />$320,318, dated April 10,2009, was not deposited until October 2009. <br /> <br />Cause <br /> <br />These checks were for msurance settlements that had to be approved by the Board prior to being <br />deposited. <br /> <br />Effect <br /> <br />Adjustingjournal entries were required to be proposed in order to accurately record the asset and revenue <br />in the correct period. <br /> <br />Recommendation <br /> <br />We recommend that the Agency recelvmg such checks notify the Accounting Division so that the <br />amounts are recorded on the books and records in the proper accounting period. <br /> <br />Views of Responsible Officials and Planned Corrective Action <br /> <br />Cash receipts are normally deposited within 72 hours of receipt and are recorded in the accounting <br />records. Insurance settlements must be reviewed by the entity's Attorney and approved by the Board. <br />Two checks for insurance claims were received just prior to the recess, but we disputed the amounts and <br />thus the deposits were not made until a later date. The auditor suggests a better treatment would be to <br />record the pending deposit as a receivable and we concur. In the future, at year end, the Accounting <br />Division will communicate with Risk Management to ascertain whether there are any undeposited <br />insurance proceeds in order to ensure that year end entries are recorded. <br /> <br />2009-07 End User Administration - Periodic Reviews <br /> <br />Criteria <br /> <br />Periodic reviews of end user accounts provides additional assurance that end user access is appropriate, <br />reducing the risk of errors that create segregation of duties or excessive access issues. The reviews also <br />ensure that all terminated employees and temporary user accounts are properly deactivated per policy. <br /> <br />6 <br />