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Sample Government, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES FISCAL YEAR ENDED SEPTEMBER 30, 2009 (Continued) I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued) services they receive from the internal service fund. Thus, a long-term, significant surplus could be evidence that the user funds are being overcharged. Condition We noted that revenues exceeded expenses in the self-insurance fund by approximately $6 million if 2009, resulting in ending net assets of $23 million, as compared to $17 million in the prior year. Cause Revenues exceeded expenses in the fund for several years and charges to other funds have not been adjusted. Effect Based on the substantial level of unrestricted net assets in this fund, it appears that other funds may be overcharged for their contribution for insurance costs. Recommendation We recommend that personnel review the activity In the self-insurance fund and determine the appropriate level of funding required from other funds. Views of Responsible Officials and Corrective Action We concur that the unrestricted balance in this account has increased in recent years. The Accounting Division will review the activity in the account and make recommendations concerning the appropriate level of funding. 2009-11 Retained Percentages Criteria Retained percentages, which represent amounts withheld from contractors for completed work pending satisfactory approval of their phase of a construction project, should be classified as an expenditure and recorded on the books as a retainage payable simultaneously with the payment to the contractor. Condition As part of our audit procedures, we obtained a schedule supporting the retained percentages reflected on the books and records as of the fiscal year end. Our review of this schedule disclosed that there are numerous amounts which have been outstanding in excess of one year, that have had no activity, 10