palm beach country schedule of expenditures of federal awards anh state financial assistance for the year ended September 30, 2008_part7 doc

This report is intended solely for the information and use of the Tax Collector, management of the Palm Beach County, Florida Tax Collector’s office, and the Auditor General, State of Fl

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PALM BEACH COUNTY, FLORIDA

TAX COLLECTOR SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND For the fiscal year ended September 30, 2008

Variance With Final Budget

Revenues:

Charges for services $ 62,959,200 $ 61,339,200 $ 65,133,926 $ 3,794,726

Less - excess fees paid out (43,276,478) (41,356,478) (46,539,258) (5,182,780)

Excess of revenues (under) expenditures - - -

-Net change in fund balance - - -

Fund balance, October 1, 2007 - - -

-Fund balance, September 30, 2008 $ - $ - $ - $

-Section 195.087, Florida Statutes, governs the preparation, adoption, and administration of the budget of the Tax

Collector On or before a legally designated date each year, the Tax Collector shall submit to the Florida Department of

Revenue a budget for the ensuing fiscal year A copy of such budget shall be furnished at the same time to the Board

of County Commissioners Final approval of the budget is given by the Florida Department of Revenue The budget is

adopted for the general fund on a basis consistent with GAAP The level of budgetary control is at the fund level.

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This is trial version www.adultpdf.com

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PALM BEACH COUNTY, FLORIDA

TAX COLLECTOR STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND For the fiscal year ended September 30, 2008

LIABILITIES

Vouchers payable and accrued liabilities $ 131,752 $ 1,139,142 $ 887,028 $ 383,866 Due to other governments 26,292,260 2,328,585,443 2,320,497,577 34,380,126 Due to individuals 2,985,187 1,006,083,868 1,000,228,338 8,840,717 Total liabilities $ 29,409,199 $ 3,335,808,453 $ 3,321,612,943 $ 43,604,709

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McGladrey & Pullen, LLP is a member firm of RSM International,

an affiliation of separate and independent legal entities

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Independent Auditor’s Report

on Internal Control Over Financial Reporting

and on Compliance and Other Matters Based

on an Audit of the Financial Statements Performed

in Accordance with Government Auditing Standards

The Honorable Anne M Gannon

Tax Collector

Palm Beach County, Florida

We have audited the financial statements of the major fund and the aggregate remaining fund information of the Tax Collector of Palm Beach County, Florida (the Tax Collector), as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009 These financial statements were prepared to comply with Section 218.39(2), Florida Statutes and Section 10.557(3), Rules of the Auditor General for Local Government Entity Audits We conducted our audit in accordance with auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Tax Collector’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control over financial reporting Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control over financial reporting

Our consideration of the internal control over financial reporting was for the limited purpose described in the

preceding paragraph and would not necessarily identify all deficiencies in the internal control over financial reporting that might be significant deficiencies or material weaknesses However, as discussed below, we identified a certain deficiency in internal control over reporting that we consider to be a significant deficiency

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential, will not be prevented or detected by the entity's internal control We consider the deficiency described in the accompanying schedule of findings and responses, 2008-01, to be a significant deficiency in internal control over financial reporting

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A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control

Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses However, we do not believe that the significant deficiency in internal control over financial reporting described above is a material weakness

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion The results of our tests disclosed no instances of

noncompliance or other matters that are required to be reported under Government Auditing Standards

We noted certain matters that we reported to management of the Tax Collector’s office in a separate letter dated June 15, 2009

The Tax Collector’s response to the finding identified in our audit and is described in the accompanying schedule of findings and responses We did not audit the Tax Collector’s response and, accordingly, we express no opinion on it This report is intended solely for the information and use of the Tax Collector, management of the Palm Beach County, Florida Tax Collector’s office, and the Auditor General, State of Florida and is not intended to be and should not be used by anyone other than these specified parties

West Palm Beach, Florida

June 15, 2009

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Tax Collector, Palm Beach County

Schedule of Findings and Responses

Year Ended September 30, 2008

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IC 2008-01 – Significant Issues Documentation

Criteria: Internal control policies and procedures should provide reasonable assurance regarding the reliability of the financial reporting process, including the accurate recording and accounting of routine transactions as well as significant and unusual transactions

Condition: The Tax Collector’s Office purchased a tax software application license at the end of the fiscal year which based on the terms of the contract benefited a future period We noted that the Tax Collector’s Office recorded an expenditure for the entire amount of the software purchase in the fiscal year ended September 30, 2008, instead of recording the purchase as a prepaid item The related timing of the expenditure recognition resulted in an audit adjustment to the financial statements

Context: This condition is systemic in nature

Effect: Increase the risk of material misstatement of the financial statements

Cause: Lack of formalized policies and procedures to ensure adequate research and documentation is appropriate Recommendation: The Tax Collector’s Office may periodically be faced with various complex transactions which require a rigorous analysis of the facts and adequate accounting research We recommend that management establish an effective review procedure to ensure that all non-routine and significant transactions are properly reported in the financial statements

Views of responsible officials and planned corrective action: We will review our existing procedures and make the necessary changes, to these procedures, to ensure that all transactions are properly reported in the financial statements

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McGladrey & Pullen, LLP is a member firm of RSM International,

an affiliation of separate and independent legal entities

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Management Letter in Accordance with the

Rules of the Auditor General of the State of Florida

The Honorable Anne M Gannon

Tax Collector

Palm Beach County, Florida

We have audited the accompanying financial statements of the major fund and the aggregate remaining fund

information of the Tax Collector of Palm Beach County, Florida (the “Tax Collector”), as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009, which was prepared to comply with

State of Florida reporting requirements

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Disclosures in that report, which is dated June 15,

2009, should be considered in conjunction with this management letter

Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor

General, which govern the conduct of local governmental entity audits performed in the State of Florida This letter includes the following information, which is not included in the aforementioned auditors’ reports:

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report The recommendations made in the preceding annual financial report have been addressed in Appendix B to this report

Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions

of Section 218.415, Florida Statutes, regarding the investment of public funds In connection with our audit,

we determined that the Tax Collector complied with Section 218.415, Florida Statutes

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management

letter any recommendations to improve the Tax Collector’s financial management, accounting

procedures and internal controls The recommendations to improve the Tax Collector’s financial

management, accounting procedures and internal controls have been addressed in Appendix A to

this report

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Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the determination of financial statements amounts that is less than material but more than

inconsequential In connection with our audit, we did not have any such findings

Sections 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that are inconsequential to the determination of financial statement amounts, considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts

or grant agreements, or abuse that have occurred, or are likely to have occurred and (2) control deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor In connection with our audit, we did not have any such findings

Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal

authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements This information is disclosed

in Note 1 of the Tax Collector’s financial statements

Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited Auditing standards generally accepted in the United States of America requires us to indicate that this letter is intended solely for the information and use of the Tax Collector, management of Palm Beach County, Florida Tax Collector’s Office and the State of Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other than the specified parties

June 15, 2009

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Tax Collector of Palm Beach County, Florida

Appendix A

Current Year Recommendations to Improve Financial Management,

Accounting Procedures and Internal Controls

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ML 08-01 Application Access Security

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Appendix A

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ML 08-1 – Application Access Security

Criteria: Effective application access security relies on a security structure that includes the use of the following:

• Available access security features in the software;

• Security administration procedures developed and documented for the granting, revoking and reviewing of data and resource access

Condition: There were aspects of security management that needed improvement Specific details of these issues

are not disclosed in this report to avoid the possibility of compromising The Tax Collector’s Office (TCO) information in accordance with Florida Statute 281.301 However, appropriate personnel have been notified

of these issues which included the following:

• Certain TCO staff had the capability to perform incompatible duties within the payroll function We noted an instance where employee access privileges should be made more restrictive by the TCO to enforce an appropriate segregation of duties

Cause: Lack of enforcement of policies to support proper restriction of access

Effect:

• Unauthorized access to the application;

• Segregation of incompatible duties is fundamental to the reliability of an organization’s internal controls;

• Appropriate segregation of duties can assist in the detection of mistakes or errors and potential fraud;

• An appropriate division of roles and responsibilities prevents the possibility of a single individual subverting

a critical process

Context: The finding is considered systemic in nature

Recommendation: We recommend management implement the following corrective actions:

• Appropriate application security control features to enhance security over its data and programs;

• Review and enhance established procedures that periodically review the duties and access capabilities of staff and implement, to the extent practicable, proper segregation of duties and access levels to ensure that

personnel are performing only those duties established for their respective jobs and positions

Management Response: We concur with the recommendation and implemented appropriate application security controls We also reviewed duties and access capabilities of staff and made the appropriate changes

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Appendix A

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ML 08-2 – Time Card Approval

Criteria: The Tax Collector’s Office policies state that employee time cards are to be reviewed and approved by department supervisors to ensure the accuracy of the time worked

Condition: During testing of payroll controls, it was noted that employee time cards are not being approved by department supervisors on a consistent basis Our testing procedures identified one instance where an employee time card was not approved by a supervisor, based on further discussion with management it was determined that this deficiency was pervasive throughout the entity

Cause: Lack of implementation of control

Effect: Potential errors on employee time cards not detected could lead to incorrect payroll amounts and the over or under recording of payroll related expenditures in addition to the providing of opportunity for employees to overstate hours worked

Context: The finding is considered systemic in nature

Recommendation: We recommend that management enforce the policies that are in place which require that each employee time card be approved by a department supervisor

Management Response: We agree with the recommendation and have taken the necessary action to ensure that each employee’s time card is approved by a supervisor

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Appendix B

Prior Year Recommendations to Improve Financial Management,

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Section VII PROPERTY APPRAISER

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VII-2

In accordance with Government Auditing Standards, we have also issued a report dated June 15, 2009 on our

consideration of the Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance

That report is an integral part of an audit performed in accordance with Government Auditing Standards and should

be considered in assessing the results of our audit

The budgetary comparison schedule and schedule of funding progress are not a required part of the financial

statements but are supplementary information required by accounting principles generally accepted in the United States of America We have applied certain limited procedures, which consisted principally of inquiries of

management regarding the methods of measurement and presentation of the required supplementary information However, we did not audit the information and express no opinion on it

This report is intended solely for the information and use of the Property Appraiser, management of the Palm Beach County, Florida Property Appraiser’s office and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than the specified parties

June 15, 2009

Tiêu đề	Palm Beach County Schedule Of Expenditures Of Federal Awards And State Financial Assistance For The Year Ended September 30, 2008
Trường học	Palm Beach County
Chuyên ngành	Tax Collection
Thể loại	Báo cáo tài chính
Năm xuất bản	2008
Thành phố	Florida

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