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CITY OF PLANTATION, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FEDERAL PROGRAMS AND STATE PROJECTS For the Year Ended September 30, 2009 B. FINDINGS - FINANCIAL STATEMENT AUDIT (continued) We recommend that the process for determining accruals during the closing process be improved with a more thorough supervisory review of accruals so that accounting for such items is consistent. Review of construction invoices should be incorporated into the fmancial close and reporting procedures to ensure all applicable retainage amounts have been recorded. Mana~ement' s Response: During the audit, it was discovered that the construction retainage accruals were not recorded at the beginning of the fiscal year. A prior period adjustment was recorded to capitalize the construction costs and accrue the related construction payable. In addition, a process has been put in place where the Accounts Payable Junior Accountant will monitor all construction projects and accrue the retainage amount outstanding as part of the month end closing procedures. The Finance Operations Manger will review the construction contracts to verify all retainage is captured and accrued at each period end. Significant Deficiency 2009-3: Grant Accountin~ The fmancial reporting process for grants needs improvement. As a result of our audit procedures, several audit adjustments were required at year end to adjust receivables, deferred revenue, revenue and expenditures related to grants. We recommend that the City develop an ongoing monitoring program that will track each grant's compliance requirements, reporting requirements, revenue recognition and expenditures. Mana~ement' s Response: Currently the process of recording and tracking grants is difficult. Communication city wide is essential to facilitate accurate monitoring and tracking of grants. Unfortunately, during the current year end, pertinent grant information was not disclosed to the Junior Accountant. This caused some items not to be recorded on the grant schedules, resulting in audit adjustments. A process will be put in place to foster better communication, by contacting departments directly to obtain status information for grants listed on the grant schedule as well as inquiring about new grants. The Junior Accountant will work with the Fixed Asset Accountant to obtain any CIP project sheets pertaining to grants. The Finance Operations Manager will provide minutes from the construction meetings, when discussions relate to grant projects. With the above items in place, we are confident that the recording and tracking of grants will be a new and improved process for the next year end audit. C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARDS PROGRAMS AND ST A TE FINANCIAL ASSISTANCE PROJECTS AUDITS NONE D. OTHER ISSUES No correction action plan is required because there were no findings required to be reported under the Federal and the Florida Single Audit Acts. 12