Rachlin, Cohen & Holtz # 1 - Laserfiche WebLink

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CITY OF ABC, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Cause The cause of the conditions is a lack of review of open purchase orders to determine validity as well as the lack of a ti mel y reconciliation of the amounts retlected on the books and records to subsidiary records. Recomme/ldatio/l We recommend that the open purchase order report be reviewed to determine validity of amounts recorded. The report should be reconciled to the amounts reflected on the books and records, and prior to closing the fiscal year, any required adjustments should be recorded. Procedures should be implemented to ensure that once an item is accrued or paid, the cncumbrance is properly liquidated. Other Matters os-os Cash Receipts Criteria All checks and other forms of payments received by the City should be deposited within 72 hours of receipt. These procedures will assist with the prevention of fraud and other defalcations. Conditio/l We noted that, in several instances, checks received by the Capital Improvement Department wcre not deposited on a timely basis. We noted that checks received in late July and the middle of August of fiscal year 2005 were not deposited until October 2005. These items were reflected as receivables rather than cash. Effect The failure to deposit funds on a timely basis exposes the City to the risk of loss. Cause The respective City departments that received the payments held the checks and failed to remit them to the Finance Department for deposit on a timely basis. R ecommendatio/l The City must implement a procedure to ensure that all checks received are remitted to the Finance Department and deposited timely. The recommended time frame is within 72 hours. OS-06 Project Management Consultants Criteria Construction projects should include all applicable costs. All invoices for project consultants should be reviewed to verify that amounts being charged are in accordance with executed contracts. -12-