HomeMy WebLinkAboutSEOPW-CRA-2003-10-27-Discussion Item 1w
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ITEM 1
OCT 2, 7 Z'., ,13
OFFICIAL REPORT
Harvey, Branker & Associates, P.A., CPA Consulting Firm:
Status of Outstanding Fiscal Year 2002 External Audit
Findings and Other Observations.
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SOUTHEAST OVERTOWN/PARK WEST
AND OMNI
COMMUNITY REDEVELOPMENT AGENCIES
INTER -OFFICE MEMORANDUM
To: Chairman Arthur E. Teele, Jr.
And Members of CRA Board
From:Frank K. Rollason
Executive Director
Date: OC1 2 7 File:
Subject: Official
Report Status of KPMG
External Audit Findings
for FY `02
References:
Enclosures:
Pursuant to the request made by the CRA Board of Directors,
during the July 28, 2003 Board Meeting, the Administration will
present a Status Report on corrective •actions for both
Reportable Conditions and Other Observations from the FY 102
Report which identifies four such findings for FY102 and an
additional 9 such findings covering years 1999 through 2001.
A Representative from KPMG will be present to comment' on the
progress of corrective actions by the Administration.
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ARTHUR E. TEELE, iR.
Chairman
SEOPW and Omni CRAB'
External Audit
Findings and Other Observations
FRANK K. ROLLASON
Executive Director
Item no.
Year
Reportable
Other
Subject
Condition Found
Corrective Action
Projected
Date
Condition
Observation
Resolution
Resolved
(Severe)
(Less Severe)
Date
1
2002-1
X
Grants Management and
Inadequate records to allow readily
Agencies' CPA (HB&A) to develop
Nov. '03
Accounting
available information with respect to the
policy and procedure to document all
names of organizations funded along with
grants on an individual basis allowing
the amounts grants, purpose, and status of
for selective auditing on a grant by
the grant
grant basis
2
2002-2
X
Contract Agreements
Several third -party contractors paid for
As of 3rd quarter of FY '03, all 3ro party
Dec. '03
services in FY'02 with no agreement
contractor invoices are matched to
between the contractor and the Agency
approved resolutions, executed
found to be executed nor approved by the
contracts, PO's, and/or work orders.
Board.
Agencies' CPA (HB&A) to formalize into
policy and procedure.
3
2002-3
X
Improper Use of Tax Increment
The Margaret Pace Park project, within the
Specific item still being researched by
April 2003
Funds
Omni Area was paid from tax increment
Special Counsel. Currently, multiple
funds (TIF) collected by and earmarked for
signatory financial approval form in
SEOPW area
place to authorize all funding sources.
4
2002-4
X
Loan Administration
Inadequate records on the status of
CRA has entered into agreement with
Sept. '03
outstanding loans to include complete
NDC for Grow Miami Fund to administer
inventory of all loans
all future loans.
5
2001-1
X
Level of Staff within the (CRA)
Agencies' Finance Department is short
Agencies' CPA (HB&A) to evaluate
Dec. '03
Finance Department
qualified staff thus delaying financial
current and total financial operations
reporting; most, if all of analysis and
and submit written report of findings
reconciliation of general ledger accounts
and recommended action plan —to be.
are not performed on a timely basis
coupled with findings from ongoing
internal audit.
SEOPW and Omni CRAB' External Audit
Findings and Other ,Observations
;�r
Item no.
Year
Reportable
Other
Subject
Condition Found
Corrective Action
Projected
Date
Condition
Observation
Resolution
Resolved
(Severe)
(Less Severe)
Date
6
2001-3
X
Encumbrance Accounting
Agencies do not use a purchase order
CRA to partner with City of Miami and
Dec. '03
system to encumber the purchase of goods
implement GEMS procurement and
and services
encumbrance computerized system.
7
2001-4
X
Payroll File Maintenance
Documentation supporting staff salaries
Agencies' staff has updated all
Aug. '03
and pay rates lacking in employee
employee personnel files to include
personnel files
payroll information.
8
2001-5
X
Project Cost Accounting
Agencies lack formal system to account for
CRA to partner with City of Miami and
Dec. '03
ongoing capital projects
implement GEMS procurement and
encumbrance computerized tracking
system.
9
2000-1
X
Establishing Controls over
Agencies rely only on the general ledger
Agencies' CPA (HB&A) to develop
Dec. '03
General Ledger
reports prepared by City Finance
policy and procedures for in-house
Department and do not perform
reconciliation of all accounting
independent reconciliation of account
transactions to include pool -cash
balances and activity, including cash
maintained by the City of Miami.
balances
10
2000-2
X
Timely Preparation of Financial
Agencies do not have formalized year-end
Agencies' CPA (HB&A) to develop
Dec. '03
Statements
financial reporting process to facilitate the
policy and procedure for formalized
preparation of their financial statements
year-end financial reporting process.
Audit binder for FY '03 to be prepared
by 12/1/03
11
2001-6
X
Operational Review
Present organizational structure does not
Internal Audit ongoing —once results
Awaiting
support the demands on staff to maintain
presented, administration will evaluate
internal
an efficient and effective operation
and make recommendations to Board.
audit report
12
2001-8
X
Budgetary Accounting
Agencies prepare their annual budget on a
FY '04 Budget was prepared and
Dec. '03
combined entity -wide basis, as opposed to
approved by CRA area and general
a fund basis
operating fund tagged to each agency's
current accounting structure which will
facilitate proper external financial
reporting and auditing.
13
1999-1
X
Leased Properties
Agencies do not have a system that allows
Agencies' CPA (HB&A) to develop
Dec. `03
for the identification of all properties held
policy and procedure for formalized
for lease. Agencies unable to determine if
leased properties system to include real
some properties are leased and nature of
property inventory and records search.
lease agreements.
SEOPW and Omni CRAs'-External Audit
Findings and Other Observations