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CITY OF PLANTATION, FLORIDA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended September 30, 2009 PRIOR YEAR FINDINGS AND STATUS 2008-1 : Account and System Reconciliations On September 2, 2008, the City implemented a new accounting software package, which involved the conversion of data, changes in processes and a significant commitment of time and resources to accomplish. In connection with this implementation project, certain normal routine account reconciliations and other activities were not performed in a timely manner. One major area affected by the conversion was accounts receivable. The 8eneral ledger control account did not agree with the subsidiary ledger balances. Upon investIgation it was determined that certain payables were being processed through the accounts receivable control account due to the staff using the accounts receIvable subsidiary ledger as a customer listing which also tracks payable items. It was also determined that the staff were not posting invoices before posting cash receipts which resulted in the subsidiary ledger improperly reflecting significant credit balances. In addition, the City staff was unable to produce separate reports for the various items included in the accounts receivable aging report. This condition resulted in the City staff having to estimate the accounts receivable for certain departments. We recommend that account reconciliations be prepared and reviewed montWy, and that identified adjustments be posted timely to the general ledger. We also recommend that management evaluate the current staffing levels of its fmance function to ensure staffing and experience levels are appropriate given the significant commitment of personnel resources that will no doubt be required to correct these areas. In addition, we recommend that the software consultants provide the necessary additional training to the accounts receivable staff. Current Status: During the current year it was determined that the payable activity mentioned above did not affect the receivable reconciliation however, in the Golf Fund the reconciliation of the receivable account was not performed timely. See current year fmding 2009-1. 2008-2: Accrual of Assets and Liabilities During the performance of our audit procedures, we noted that a materially significant invoice relating to the 2009 fiscal year should have been recorded as a prepaid expense rather than being expensed in the 2008 fiscal year. We recommend that the process for determining accruals during the close process be improved with a more thorough supervisory review of accruals so that accounting for such items is consistent. It was also noted that the new software did not allocate accounts payable to the proper funds. This resulted in the City staff having to manually allocate each payable to its respective fund. We recommend that the City have the software consultants address the current software system limitation issues. Current Status: For the fiscal year ended September 30, 2009 prepaid expenses appeared fairly stated. The software appeared to properly allocate accounts payable to the correct funds. See current year finding 2009-2 for accrual of assets and liabilities. 13