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I APPENDIX III - MANAGEMENT LETTERS DEVELOPED AND ISSUED IN CONNECTION WITH LOCAL GOVERNMENT AUDITS I I CITY OF OAKLAND PARK, FLORIDA SCHEDULE OF FINDINGS AND RECOMMENDATIONS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (CONTINUED) I I II. STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS (CONTINUED) 01-1. Business and Technology Review (Continued) I · In order to properly use the software the City purchased several years ago, it was recommended that the City obtain a significant amount of additional training on all levels. This includes the information systems personnel as well as the finance, customer service and personnel departments. I · The City currently has a large balance of other accounts receivables related to various properties that they feel they will collect when the properties are sold. Although the City has an allowance for these accounts, the City should perform a thorough examination of the accounts and write off all amounts that will not be collected. I I · Preparing a formal disaster recovery plan. · The review contained many other recommendations that related to staffing levels, cash procedures and accounts payable processes. Management Response I As noted in the previous year's comments, the City implemented in prior years the recommendations suggested by the Florida League of Cities except for two, review of accounts receivable and the penalty charge for delinquent utility accounts. The implementation process began in late fiscal year 2002 for both recommendations, however, due to the sizeable scope of these projects, this required a multi-year approach. The City has completed an examination of the miscellaneous accounts receivable noted in the report and has written off those accounts that will not be collected. The penalty charge for delinquent utility accounts has not been instituted this year due to a system issue. Depending on the system capabilities, penalties mayor may not be instituted during fiscal year 2005. As the major recommendations generated by the Florida League of Cities report have been reviewed, and where possible implemented, management believes this finding has been sufficiently addressed. I I I I I 01-2, Utility System During the prior auditor's examination of the revenues and expenses of the utility system, they noted that there were variances between the number of gallons of water purchased versus the number of gallons of water sold and the number of gallons of sewage processed versus the number of gallons billed. This could be caused by various factors including the City's meters or meters owned by the City of Fort Lauderdale or Broward County. Managements' Response I This finding is directly related to Finding 02-4, Rate Studies, noted earlier - water loss. As noted above, the City formally implemented a 5-year capital improvement program in fiscal year 2002, with one fund, Public Utilities, specifically created for improvements to the water and sewer systems of the City. As progress has been made on the water/sewer system over the past three years, and there is a formal adopted capital improvement program for public utilities in place that includes the study findings, it is believed the water/sewer concerns have been addressed by the City. The City, similar to other municipalities, will continue to address the ongoing need for infrastructure improvements through its adopted 5-year capital improvement program, which is formally reviewed annually in conjunction with the City's operating budget. I I 77 I