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II I I I I I I I I I I I I I I I I I I CITY OF WESTON, FLORIDA INTERNAL CONTROL COMMENTS AND RECOMMENDATIONS September 30,2006 CURRENT YEAR INTERNAL CONTROL COMMENTS AND RECOMMENDATIONS: Building Department - Countv and State Fees · Building Code Administrators and Inspectors Fund: Pursuant to Florida Statute 468.631 the City must assess this fee at the rate of one-half cent per square foot of under-roof floor space permitted, including new construction, renovations and alterations; and remit to the Florida Department of Business and Professional Regulation (DBPR) on a quarterly basis, for the preceding quarter. During our audit, we noted that this fee was not included in the City's Schedule of Fees for fiscal year ending September 30,2006. In addition, it appears that the surcharge was not being consistently assessed as mandated by the State of Florida and monies assessed had not been remitted to the DBPR. · Florida Homeowners' Construction Recovery Fund: Pursuant to Florida Statute 489.140 this recovery fund is funded out of the receipts deposited in the Building Code Administrators and Inspectors Fund, as discussed above. During our audit, we noted that the City had been mistakenly assessing this surcharge. In addition, funds had not been refunded to the clients and/or remitted to the DBPR. · Radon Fee: Pursuant to Florida Statute 553.721 the City must assess this fee at the rate of one-half cent per square foot of under-roof floor space permitted. The surcharge for additions, alterations, or renovations to existing buildings shall be computed on the basis of the square footage being added, altered, or renovated. The fees should be remitted to the Florida Department of Community Affairs (DCA) on a quarterly basis, for the preceding quarter. During our audit, we noted that fees assessed had not been remitted to the DCA. Based on our audit findings, we recommend that the City revise its Schedule of Fees to include all applicable County and State fees. In addition, the City should consult with their legal advisor to determine clear guidelines as to when these surcharges will be assessed. Finally, the City should immediately reimburse and/or remit all assessed fees to the appropriate parties. Management Response: With the adoption of Resolution No. 2006-139, the City has revised its schedule of fees for fiscal year 2006-2007 to include the county and state fees noted above. During fiscal year 2006-2007 the City will remit to the appropriate parties all county and state fees previously collected but not remitted. In addition, the City has established guidelines for assessing these fees and has implemented procedures to ensure future compliance with collecting and remitting fees as required by Florida statute. Detai led cash receipt reports - credit cards During our audit, we noted that credit card receipts are entered into the cash receipts journal in monthly totals only, without a full reconciliation against the source (location/revenue category/ merchant account) of the receipts. We recommend, that the City's IT consultants develop a cash receipt report with sufficient detail as to its revenue category and merchant account which will facilitate month-end bank statement reconci I iations. Management Response: The City is aware of the need for improved cash receipt reporting and intends on developing the required reports as part of the City's anticipated conversion to a new accounting system platform.