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<br />I <br /> <br />I <br /> <br />SECTION 1- FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS <br /> <br />A. CURRENT YEAR FINANCIAL STATEMENT FINDINGS <br /> <br />I <br /> <br />REPORTABLE CONDITIONS <br /> <br />I <br /> <br />No. 2006-1 -Qualified Public Depositor <br /> <br />I <br /> <br />CONDITION: <br />During our testing of cash, we noted that the Authority's bank accounts were regular business checking <br />accounts and not public fund accounts, Also, that the required Public Depositor Annual Report was not filed <br />for September 30, 2005. <br /> <br />II <br />I <br />II <br /> <br />CAUSE: <br />The Authority was not aware that the checking accounts were not public fund accounts, <br /> <br />EFFECT: <br />The Authority's bank balances are only covered by the FDIC up to $100,000 and approximately $2,000,000 <br />is subject to risk of loss if there is a bank failure. By having the checking accounts deposited in public funds <br />account the entire balance is secured in accordance with Chapter 280 of the Florida Statutes. <br /> <br />RECOMMENDATION: <br />We recommend that the Authority contact its banking institution which is a Qualified Public Depositor and <br />change its checking accounts from business checking to public funds accounts. Also, the Public Depositor <br />Annual Report for September 30, 2006, should be filed. <br /> <br />i I <br /> <br />MANAGEMENT RESPONSE: <br />The bank was immediately contacted and all business checking accounts were changed to public fund <br />accounts, The required Public Depositor Annual Report for September 30, 2006 was filed. <br /> <br />I <br /> <br />OTHER MATTER <br /> <br />I <br /> <br />No. 2006-2 -Establish a Formal Policy for Write-Offs of Old Receivables and Allowance for Doubtful <br />Accounts <br /> <br />I <br /> <br />Observation <br />During our testing of receivables, we noted that the Authority did not have a formal policy for write-offs of old <br />receivables or establishing an allowance for doubtful accounts. <br /> <br />I <br /> <br />Recommendation <br />We recommend that the Authority include in its accounting manual policies for write-offs of old receivables <br />and allowance for doubtful accounts, These policies should first be approved by the Board of Directors, <br /> <br />I <br /> <br />ManaQement Response <br />A draft policy was created and will be presented to the Board of Directors at the next available date, <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br />