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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />CITY OF PARKLAND, FLORIDA <br />INTERNAL CONTROL COMMENTS AND RECOMMENDA nONS <br />September 30, 2006 <br /> <br />PRIOR YEAR INTERNAL CONTROL <br />COMMENTS AND RECOMMENDATIONS: <br /> <br />Implemented <br />or No <br />Longer <br />Applicable <br /> <br />Not <br />Implemented <br /> <br />Adopt formal EDP Disaster Recovery Plan <br /> <br />x <br /> <br />Establish purchase order/integrated accounts <br />payable system <br /> <br />x <br /> <br />Establish a purchase order/integrated accounts payable system: <br /> <br />In the past and for the current year end, the City has used a spreadsheet program to manually <br />report and track their accounts payable, As the City has grown over the last several years, we believe <br />that the additional volume and significance of day to day transactions would be more efficient if the <br />City were to utilize a fully functioning purchase order and accounts payable system that is integrated <br />with the general ledger and cash disbursement procedures. <br /> <br />The purpose of a purchase order system is to control spending of City resources and to help <br />ensure that the City pays only for items that are actually received. The system should provide for <br />approval of purchases, including establishment of reasonable limitations on approval authority of <br />specific individuals. A purchase order would be issued to a vendor for a specified item at a certain <br />price to be delivered at or by a designated time. Prices and other terms would be included on <br />purchase orders for use injob cost control (if applicable) and in the payment process. Purchase orders <br />should flow into the general ledger to aid the City in monitoring amounts ordered and paid in <br />comparison to the budget line items. Purchase orders should be matched to vendor invoices to assure <br />that only agreed upon prices are paid. <br /> <br />Managements' response: <br /> <br />With respect to the Accounts Payable and Purchase Order systems of the Financial Software: <br />The City will be requesting proposals for new and more powerful financial software with a plan to <br />implement the conversion before the end of the FY 2006-2007. This will resolve the issues posed in <br />the management suggestions. <br /> <br />CURRENT YEAR INTERNAL CONTROL COMMENTS AND RECOMMENDATIONS: <br />NONE <br />