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I I I II. CURRENT YEAR FINDINGS AND RECOMMENDATIONS REPORTABLE CONDITIONS I 2006-1 Bank Reconciliations and General Journal Entries (segregation of duties) I Condition: During our testing of bank reconciliations and general journal entries, we noted that the bank reconciliations and journal entries are prepared and approved by the acting finance director. I Effect: There is a lack of segregation of duties between preparer and reviewer for preparation of bank reconciliations and general journal entries, I Recom mendation: We recommend that the Village prepare bank reconciliations which include a preparer and reviewer sign-off. The preparer could be the acting finance director, but a Village official, such as the Village Manager should review and approve the bank reconciliations, Also, the Village currently has a general journal entry form that includes a reference for the preparer and reviewer. We recommend that the acting finance director propose the entries and that the Village Manager document the approval on the forms, I Management's Response: We agree with the auditors' recommendation and they have been implemented immediately. I No. 2006-2 -Budgeting I CONDITION: Section 166,241 (3) of the Florida Statutes states that "The governing body of each municipality shall adopt a budget each fiscal year. The budget must be adopted by ordinance unless otherwise specified in the respective municipality's charter. The amount available from taxation and other sources, including amounts carried over from prior fiscal years, must equal the total appropriations for expenditures and reserves. The budget must regulate expenditures of the municipality, and it is unlawful for any officer of a municipal government to expend or contract for expenditures in any fiscal year except in pursuance of budgeted appropriations." The Village did not adopt a budget for all of the special revenue funds, therefore, is not in compliance with the above mentioned Florida Statute. Also, see Finding No. 00-9 regarding over expenditures, I I I CAUSE: The Village did not adopt a budget for all of the special revenue. I EFFECT: The Village is not in compliance with State Statues that require budgeting of all Village expenditures. RECOMMENDATION: We recommend that the Village prepare budgets for all governmental funds. I MANAGEMENT RESPONSE: The Village has adopted budgets for all special revenue funds for fiscal year 2007, I I I I