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<br />CITY OF SUNNY ISLES BEACH, FLORIDA <br /> <br />SCHEDULE OF FINDINGS AND RESPONSES <br /> <br />FISCAL YEAR ENDED SEPTEMBER 30, 2006 <br /> <br />SECTION 1- CURRENT YEAR FINDINGS AND RECOMMENDATIONS <br /> <br />No new comments for the fiscal year ending September 30, 2006. However, see the status of prior year <br />comments. <br /> <br />SECTION II - STATUS OF PRIOR YEAR COMMENTS <br /> <br />Other Matters <br /> <br />01-2. Proprietary Fixed Asset Depreciation Policy <br /> <br />During the audit of the City's financial statements, we noted that the City does not have a formal written <br />policy over accounting for and depreciating fixed assets. <br /> <br />ReC01lll1lelldatioll <br /> <br />We recommend that the City establish an accounting policy and procedures manual to also include a <br />formal written policy over better accounting for and depreciating fixed assets. The City should set up <br />procedures to follow for properly recording fixed assets and its related accumulation of depreciation. <br /> <br />Mallagelllellt Respollse <br /> <br />The City's new software does have the fixed assets and depreciation module which will be in full <br />operation after we have the whole City inventoried and have a firm base that is as accurate as possible. <br />The company, American Appraisal, who has brought the compliance process related to GASB-34 to many <br />cities, will be working with us this summer as it relates to the inventory of the City's capital assets and <br />infrastructure. Only after there is a good understanding of the procedures they will be installing; can there <br />be an informative policy and procedure manual that encompasses the full procedure. <br /> <br />Status <br /> <br />The City has not implemented this recommendation and plans to correct action. <br /> <br />01.3. Fixed Assets Inventory Listi ng <br /> <br />During our fixed asset testing, we noted that the City does not have an inventory of its fixed assets or <br />tagging of such assets. This is mainly due to the fact that the City does not have a formalized <br />capitalization policy in place. This makes the assets more susceptible to misappropriation or misuse. <br /> <br />R ecolllllle Ildatioll <br /> <br />We recommend that the City adopt a formalized capitalization policy in which the City tags all fixed <br />assets and inventory the assets by department as these assets are received. <br /> <br />-7- <br />