Property Value Affidavit Florida

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					Who is the Auditor General?

                 •Constitutional Officer

                 •Legislative Officer

                 •Certified Public Accountant



     William O. Monroe, CPA
                                            Florida
                                        Auditor General
  What does the
Auditor General do?




                          Florida
                      Auditor General
Auditor General’s
Audit Responsibilities
   State-wide Financial and Federal Audits
   State Agency Operational Audits
   Educational Entity Audits
     Colleges
     Universities
     District   School Boards
   Local Government Entity Audits
   Information Technology Audits
                                                  Florida
                                              Auditor General
Local Government Audits
by the Auditor General
   Authorized to audit any local government at any
    time (financial, financial-related, operational,
    performance)

   Requirements to audit local governments:
     Petition   of voters (municipalities only)

     Direction   from Joint Legislative Audit Committee
                                                        Florida
                                                    Auditor General
Other Local Government-Related
Auditor General Responsibilities
   Repository for audit reports
   Review of audit reports
   Local Government Financial Reporting System
    Performance Audit
   Promulgation of Rules
   Technical Advice
   Financial Condition Data Source
                                             Florida
                                         Auditor General
Hurricane Impact

   Accounting for FEMA
    Reimbursements
   Exemptions from
    Government Auditing
    Standards
   FSAA Report
    Submission Deadlines

                               Florida
                           Auditor General
    Accounting for FEMA Reimbursements
   Q & A developed by the FICPA (available on FICPA web
    site at www1.ficpa.org/ficpa/Sections/slgov)
       Accrual of expenditures/liabilities
       Accrual of revenues/receivables
       GFOA Certificate of Achievement
       Accountability for FEMA reimbursements
       Audit considerations
       Florida Single Audit Act considerations
       Schedules of Expenditures of Federal Awards and State Financial
        Assistance
       Basis of accounting
       Consequences of over- or underestimating eligible hurricane-related
        expenditures
                                                                 Florida
                                                             Auditor General
    Government Auditing Standards
    Exemptions – Hurricanes Katrina and Rita
   Independence requirements related to performance of
    management functions
   Reconstruction of lost or destroyed records
   Peer review requirements
   Continuing professional education requirements
   Financial records, program records, or supporting
    documentation destroyed
   Audit documentation is lost or destroyed before issuance of
    audit report
                                                         Florida
                                                     Auditor General
Laws Update – 2006 Session
            Florida Impact Fee Act
               Senate Bill 1194
   Impact fee ordinance requirements
   Audits of local governments or school boards
    submitted to the Auditor General must include
    an affidavit by the chief financial officer stating
    that the local government or school board has
    complied with Section 163.31801, Florida
    Statutes
                                                    Florida
                                                Auditor General
Laws Update – 2006 Session
     Per Diem & Travel Expenses
            Senate Bill 428
 Increases rates for State agencies
 No fiscal impact on municipalities
 Counties, school boards, and special
  districts may set rates that vary from s.
  112.061, FS, but not below statutory rates
  for 2005-06
                                         Florida
                                     Auditor General
    Laws Update – 2006 Session
     Financial Emergency Act - Charter Schools
                  House Bill 7103
   Applies Financial Emergency Act to charter schools
   Auditor to report financial emergency condition to governing
    body within 7 days of finding
   Charter school to file Financial recovery Plan with sponsor
    within 10 days of audit
   Charter school sponsor to determine actions to resolve the
    financial emergency
   Department of Education to prescribe guidelines for
    Financial Recovery Plans
                                                         Florida
                                                     Auditor General
Laws Update – 2006 Session
State Financial Matters
Senate Bill 2548
   Department of Financial Services to review CPA
    certified county court-related expenditure reports
    (s. 29.0085, FS) to determine if court-related
    expenditures have increased by 1.5%
   Due date for CPA certified statement of court-
    related expenditures (s. 29.0085, FS) changed
    from 6 to 4 months after fiscal year end
                                                  Florida
                                              Auditor General
Laws Update – 2006 Session
State Financial Matters (cont’d)
Senate Bill 2548

   Tangible personal property rulemaking
    responsibility under s. 274.02, Florida Statutes,
    from the Auditor General to the Department of
    Financial Services
   Same for State agencies (s. 273.055, FS)

                                                   Florida
                                               Auditor General
Rules of the Auditor General
10.300   State-owned Tangible Personal Property
10.400   Local Government-Owned Tangible
          Personal Property
10.550   Local Governmental Entity Audits
10.650   State Single Audits – Nonprofit and For-
           Profit Organizations
10.700   Audits of Direct Support Organizations
          and Citizen Support Organizations
10.800   District School Board Audits
10.850   Charter School Audits
                                                 Florida
                                             Auditor General
Rules of the Auditor General
10.350   State-owned Surplus Tangible Personal
         Property
10.550   Local Governmental Entity Audits
10.650   State Single Audits – Nonprofit and For-
           Profit Organizations
10.700   Audits of Direct Support Organizations
          and Citizen Support Organizations
10.800   District School Board Audits
10.850   Charter School Audits
                                                 Florida
                                             Auditor General
Rules of the Auditor General
2005 Changes
Chapters 10.550
   Pre-GASB 34 references removed
   2005 Florida Single Audit Changes
       Transfer of responsibilities from Governor to
        Department of Financial Services (DFS)
       DFS Website: https://apps.fldfs.com/fsaa/
                                                 Florida
                                             Auditor General
Rules of the Auditor General
Proposed 2006 Changes
Chapters 10.550
   Impact Fee Affidavit
   Reporting of Florida Single Audit Act Major
    Program Threshold
   Updated References

                                           Florida
                                       Auditor General
    Article V Compliance
   Auditors of Clerks required to report on
    compliance with Article V:
       Budget Requirement
       Performance Measures

   Compliance Supplement
   Remittance of Excess Fees by January 1

                                                   Florida
                                               Auditor General
    Article V Review Results
    Fiscal Year Ended 9/30/04

Independent Audit Results:

   Reports lacking Article V statement         2

   Reports indicating budget noncompliance     0

   Reports indicating performance measure

       noncompliance                            2

                                              Florida
                                          Auditor General
    Article V Review Results
    Fiscal Year Ended 9/30/05

Clerks of Court Operations Corporation Performance Results:
   Timeliness Standards (20):
        22 of 29 Clerks did not achieve at least 1
        performance standard
   Collection Rate Standards (9):
        20 of 29 clerks did not achieve at least 1
        performance standard
                                                         Florida
                                                     Auditor General
Local
Government
Financial
Reporting
System
Performance Audit
                    Florida
                Auditor General
Local Government Financial
Reporting System (LGFRS)
Authority    Section 11.45(2)(h), Florida Statutes
Definition   Any statute related to financial reporting
Purpose      Timely, accurate, uniform, and cost-effective
             accumulation and other information for use by the
             Legislature and other officials
Goals           Enhance citizen participation in local government
                Improve the financial condition of local
                 governments
                Provide essential government services in an
                 efficient and effective manner
                Improve decision-making by the Legislature, State
                 agencies, and local
                                                            Florida
                 government officials                   Auditor General
LGFRS Performance Audit
Scope and objectives:
   Community Redevelopment Agencies compliance with
    various requirements of Chapter 163, Part III, FS
   Audit Follow-up of any audit findings included in our prior
    audit Report No. 2004-006 including:
        Financial Reporting of Local Governments
            Annual Financial Reports
            Special District Bonds
        Local Government Retirement Systems
                                                          Florida
                                                      Auditor General
LGFRS Performance Audit
Community Redevelopment Agencies
   Overview: Community Redevelopment Act:

     Chapter    163, Part III authorizes the creation of a CRA
        for the purpose of redevelopment of slums and
        blighted areas

       Provides requirements to address the manner in
        which a CRA can be established, the powers of the
        Agency, funding of the CRA, expenditure restrictions
        and reporting and audit requirements
                                                         Florida
                                                     Auditor General
        LGFRS Performance Audit
        Community Redevelopment Agencies
Objective:
•       Determine whether public funds distributed to CRAs are being used for
        efficient & appropriate purposes, and adequacy of CRA audits per ss.
        163.387(8) & 218.39
    Procedures:
    •   Determining whether all CRAs complied with the audit requirements
        of s. 163.387(8), FS.

    •   For a sample of CRAs, determine whether: (1) taxing authorities
        made required contributions of tax increment revenues to the CRA;
        (2) the CRA adopted budgets in accordance with s. 189.418(3), FS;
        and (3) CRA expenditures benefited CRA, and complied with CRA
        Plan and ss. 163.387(6) & 163.370(2), FS.                    Florida
                                                                  Auditor General
LGFRS Performance Audit
Community Redevelopment Agencies
Requirement: Audit Compliance
Section 163.387(8), FS, requires CRAs to provide for annual
audits of their redevelopment trust funds each fiscal year,
including information on amount and sources of deposits and
amount and purpose of withdrawals. Also, certain information
on outstanding debt to which is pledged increment revenues.
Finding:
CRAs are not obtaining the required financial audits.
Recommendation:
CRA should provide for the required annual audit. If included in
another entity’s report, opinion on trust fund must be included.
                                                       Florida
                                                   Auditor General
LGFRS Performance Audit
Community Redevelopment Agencies
Requirement: Tax Increment Funding
Tax authorities to remit annual tax increment by January 1.
Amounts not paid timely must include additional 5 percent on
the amount of the increment and 1 percent interest per month.
Finding:
Taxing authorities did not timely pay tax increment funds to
CRAs, which did not bill the taxing authorities for additional
monies and interest due.
Recommendation:
Taxing authorities should ensure timely payment of TIFs. If not
paid timely, CRA should assess and collect any additional
amounts imposed by the law.                              Florida
                                                   Auditor General
LGFRS Performance Audit
Community Redevelopment Agencies
Requirement: CRA Expenditures
Sections 163.387(6), and 163.370(2), FS, require that moneys
in the trust fund must be used for projects directly related to
financing/refinancing in the CRA pursuant to an approved plan.

Basic tenet of good accounting control to demonstrate that
costs are commensurate with benefits derived.


State Constitution, prohibits giving, lending or using taxing
power to aid a corporation, association, partnership or person.

                                                       Florida
                                                   Auditor General
 LGFRS Performance Audit
 Community Redevelopment Agencies
CRA Expenditures not Adequately Documented
• Lack of documentation for salary payments for employees
  splitting time between CRA & city functions ($1,593,577)
• Lack of approval for project payments ($696,746)
• Overpayment on a cost-sharing agreement ($300,000)
• Lack of control over contributions to nonprofits ($105,000)
• No invoices - conference attendance/trash removal ($85,622)
• Chair rental for a City event unrelated to CRA Plan ($3,000)
                                                        Florida
                                                    Auditor General
LGFRS Performance Audit
Community Redevelopment Agencies
Recommendations:
• All expenditures should be properly authorized and
  documented.
• Actual time spent on CRA activities should be documented
  and salaries and benefits paid commensurate with the time
  spent.
• Contributions to private, nonprofits should be based on an
  agreement identifying a CRA purpose and CRAs should
  exercise control over the funds disbursed by the nonprofits.

                                                      Florida
                                                  Auditor General
LGFRS Performance Audit
Community Redevelopment Agencies

Requirement: Budgetary Compliance
Section 189.418(3), FS, requires the governing body of each
special district to adopt a budget by resolution each fiscal year
and prohibits budget overexpenditures.
Finding: Budgetary Compliance
4 CRAS did not adopt budgets by resolution and 3 overspent
their budget.
Recommendation:
Budgets should be adopted by resolution each fiscal year for all
expenditures and budgets should not be overspent.
                                                        Florida
                                                    Auditor General
LGFRS Performance Audit
Community Redevelopment Agencies

Requirement: Report of Activities
Section 163.356(3)(c), FS, requires CRAs to file report of
activities with its governing body by March 31 following the
fiscal year and to notice filing in a newspaper.
Finding:
11 and 12 of 20 CRAs did not prepare the report of activities for
2002-03 and 2003-04, respectively
Recommendation:
CRA should provide the required report. The CRA should
confer with its governing body regarding the non-financial
information to be included.
                                                        Florida
                                                    Auditor General
LGFRS Performance Audit
Local Government Financial Reporting
Requirement: Electronic Filing of Annual Financial Reports
Section 218.32(1), FS, requires local governments to submit to
Department of Financial Services an Annual Financial Report
covering operations for the preceding fiscal year.
Finding:
DFS should continue to enhance their local government
database and electronic filing system to increase local
government participation
Recommendation:
At a minimum, survey all local governments that continue to file
manually and determine what changes would be necessary for
them to begin to use the system.                      Florida
                                                   Auditor General
LGFRS Performance Audit
Local Government Financial Reporting
Finding: Reporting by Unaudited Local Governments
Monitoring of timely submission of AFRs from unaudited local
governments could be improved. No notification was made of
failure to timely file the AFR.
Requirement:
Section 218.32(1)(e), FS, requires local governments not
required to have an audit to submit an AFR to DFS by April 30
for preceding fiscal year, includes balance sheet data. DFS is
required to notify LAC of failure to provide the required info.
Recommendation:
DFS should establish procedures for timely identification of LGs
that do not file AFRs timely and provide timely notice to LAC

                                                       Florida
                                                   Auditor General
LGFRS Performance Audit
Local Government Financial Reporting
Requirement: Significant Financial Trends Reporting
Department of Financial Services is required by Section
218.32(1)(f) to provide us with timely and accurate information
submitted by unaudited local governments.
Finding:
Our examination of the records of unaudited local government
records indicated significant misstatements in amounts
reported, therefore we did not have sufficient reliable data upon
which to identify financial trends .
Recommendation:
DFS should consider providing technical advice to smaller
entities, including educational training and more detailed
instructions, and review the reasonableness of AFRs submitted.
                                                       Florida
                                                   Auditor General
LGFRS Performance Audit
Local Government Financial Reporting
Requirement: Reporting of Noncompliant Special Districts
Section 218.37(1)(g), FS, requires the Division of Bond Finance
to provide Department of Community Affairs with a report of
special districts that did not provide advance notice of
impending bond sales and that did not file certain information
with the DBF within 120 days after delivery of the bonds.
Finding:
DBF report on special districts not in compliance with Section
218.38, FS, could be improved to better meet needs of DCA.
Recommendation:
DBF should consider the needs of DCA and modify the report
accordingly, including ensuring that all of the entities are
correctly identified as in the Official List of Special Districts.
                                                        Florida
                                                    Auditor General
LGFRS Performance Audit
Local Government Financial Reporting

Requirement: Review of Actuarial Reports/Impact
Statements
Section 112.63(4), FS, requires Division of Retirement to review
all local government pension plan actuarial valuations and
impact statements at least triennially.
Finding:
The Division of Retirement had not adopted written procedures
for its review of actuarial reports/impact statements. Status
report of actuarial reviews received & reviewed was inaccurate.
Recommendation:
DMS should adopt written procedures for reviewing and
documenting state acceptance of plans.                  Florida
                                                   Auditor General
LGFRS Performance Audit
Local Government Financial Reporting

Requirement: Actuarial Report Information Requests
Section 112.63(4), FS, authorizes DMS to enforce compliance
with DMS requests for additional information.
Finding:
The Division of Retirement had not established procedures to
implement notifications to plan administrators that did not timely
respond to Division requests for more information and to
withhold funds for noncompliance.
Recommendation:
Establish procedures to implement this law.
                                                        Florida
                                                    Auditor General
                             Auditor
                             Selection
                             Guidelines
   Auditor General             Auditor Selection Law:
    Performance Audits              Chapter 2005-32,
   Auditor Selection Task            Laws of Florida
    Force                        Section   218.391,
   Task Force Report                 Florida Statutes
                                                    Florida
                                                Auditor General
Auditor Selection – Legal Requirements
Application:
     All local governments required by s. 218.39, FS, to have
      annual financial audits
          Counties
          Municipalities
          Special Districts
          District School Boards
          Charter Schools
          Charter Technical Centers
     Only to annual financial audit required by s. 218.39, FS
                                                       Florida
                                                   Auditor General
Auditor Selection – Legal Requirements
Audit Committee:
      Membership specified only for noncharter counties
      Required for auditor selection
      May be used for other purposes
      Auditor selection responsibilities:
           Establish evaluation factors
           Publicly announce and provide requests for
            proposals
           Evaluate proposals
           Rank and recommend at least 3 firms in order of
            preference                                 Florida
                                                      Auditor General
Auditor Selection – Legal Requirements
Selection Options:
      If compensation is not an evaluation factor:
           Negotiate with firms in ranked order
           No simultaneous negotiation, but may reopen
            negotiations with any one of the three firms
           Alternative negotiation method
      If Compensation is an evaluation factor
           Select the highest ranked firm or document the
            reason for selecting another firm
      Cost cannot be the sole or predominant factor
                                                          Florida
                                                      Auditor General
Auditor Selection – Legal Requirements
Written Contract:

      Services to provided

      Fees or other compensation

      Detailed invoices

      Contract period, including any renewals

      Conditions for termination or renewal

                                                     Florida
                                                 Auditor General
 Auditor Selection Guidelines

Topics:

         Use of Audit Committees

         Composition of Audit Committees

         Use and Elements of an RFP

         Use and Elements of Audit Services Contracts


                                                       Florida
                                                   Auditor General
Auditor Selection Guidelines
Use of Audit Committees
    Establishment of the Audit Committee
    Audit Committee Responsibilities
        Auditor Selection
        Monitoring the audit
        Review of financial statements
        Review of Audit Results
        Evaluation of corrective action plans
        Monitoring corrective actions
        Evaluating auditor performance              Florida
                                                 Auditor General
Auditor Selection Guidelines
Audit Committee Composition/Size
 Goals:
    Provide technical expertise for informed decisions
    Independence from management
 Recommended Practices
    Possession of expertise and experience
    Non-management members
    Large enough to possess needed skills but small
     enough to operate efficiently (5 to 7 members)
                                                     Florida
                                                 Auditor General
Auditor Selection Guidelines
Audit Proposal Evaluation Factors
    Audit firm qualifications:
        Independence
        Licensing
        Continuing professional education
        Quality control review
        History of performing quality audits
    Technical Qualifications:
        Experience and expertise
                                                    Florida
        Audit approach                         Auditor General
Auditor Selection Guidelines
Request for Proposal
        Public announcement
        Elements – Proposal Evaluation Process
          Evaluation factors
          Proposal procedures
          Right to reject proposals, require additional information

        Elements - Government information
          Description of government
          Known weaknesses in internal control
          Anticipated implementation problems (GASB)
                                                                 Florida
          Principal contacts
                                                             Auditor General
Auditor Selection Guidelines
Request for Proposal
        Elements – Scope of Work:
          Level of assurance required
          Auditing standards required
          Auditor’s specific reporting responsibilities
          Required timetable and deliverables
          Additional services required

        Elements – Audit Conditions:
          Assistance available from the government
          Auditor workspace, access to communications
                                                               Florida
                                                           Auditor General
Auditor Selection Guidelines
Request for Proposal
        Elements – Auditor Firm Evaluation:
          Professional skills and experience of auditors

          Independence statement

          References from other government clients

          Results of peer reviews

          Status of disciplinary actions

          Anticipated audit approach


                                                                Florida
                                                            Auditor General
Auditor Selection Guidelines
Request for Proposal
        Elements – Other:
          Working papers and cooperation with other auditors

          Joint proposals or subcontracting

          Additional language to meet requirements of laws,
           regulations, ordinances, policies




                                                              Florida
                                                          Auditor General
Auditor Selection Guidelines
Audit Services Contract
        Use of engagement letter

        Required contract elements
          Services to be provided and fees or other compensation

          Invoices in sufficient detail to demonstrate compliance

          Contract period, renewals, and termination

        Suggested Contract Elements
          National Intergovernmental Audit Forum

          Government Finance Officers Handbook
                                                                Florida
                                                            Auditor General
AUDITOR GENERAL
 Local Government
Audit Report Reviews




                           Florida
                       Auditor General
How many local governments are there?

Local governments subject to audit - FY 2004

Counties (388 county agencies)                         66
Consolidated City/County (Jacksonville)                  1
Municipalities                                        407
Special Districts (excludes housing authorities)    1196


Total                                               1670
                                                       Florida
                                                   Auditor General
Local Government Audit Report Reviews
                         Filing of Audit Report
 Requirement:
 •   All counties, municipalities, and special districts meeting the audit
     threshold must provide for an annual financial audit

 What we found for FY 2004 (as of June 1, 2006):
 •   1008 filed audits
 •   LGs were sent a letter of inquiry
      •   19 required to have audits didn’t file
      •   40 possibly required to have audits didn’t file
 •   286 (28%) didn’t file reports within allowed time (22% prior year)
      •   233 not filed by 9/30/05 (171 not delivered until Sept. or later)
      •   53 not filed within 45 days after delivery
                                                                     Florida
                                                                 Auditor General
Local Government Audit Report Reviews
                 Licensing of Auditors
 Requirement:

 •   Auditors must be licensed by the State Board of
     Accountancy (s. 218.39(1) and Ch. 473, FS)


 What we found:
 •   7 audits were performed by 3 unlicensed auditors
     (compared to 8 audits and 5 unlicensed auditors for
     prior fiscal year)
                                                      Florida
                                                  Auditor General
Local Government Audit Report Reviews
          Items Missing from Audit Report
 Requirement:
 •       AG by law must request items omitted contrary to AG Rules.
         Items must be provided within 45 days of request.

 •       If the LG does not comply with the AG's request, the AG must
         notify the Legislative Auditing Committee.
     What we found for FY 2004 (as of June 1, 2006):
     •   153 LGs sent a letter requesting missing items
     •   31 of these LGs did not provide requested items
     •   JLAC will be notified of the LGs
          •   May be subject to same penalty as not filing audit report
                                                                       Florida
                                                                   Auditor General
Local Government Audit Report Reviews

     What did the review of FY 2004
        audit reports disclose?



              See report No.
              2006-???




                                          Florida
                                      Auditor General
LG Audit Report Review Results
Completeness reviews:
•   Most deficiencies related to preparation of auditor’s reports and F/S
    note disclosures (see Appendix A – Report No. 2006-190)

Examples of deficiencies noted:
•   For 36% of the audit reports that reported material budget
    overexpenditures, notes to F/S did not disclose legal level of
    budgetary control or whether reported overexpenditures were
    contrary to law (prior year 33%)

•   For 63% of audit reports for which the notes disclosed budget
    overexpenditures that were contrary to law, were not reported in the
    auditor’s report on compliance and internal control or the
    management letter (prior year 51%)
                                                                  Florida
                                                              Auditor General
LG Audit Report Review Results
   Other Completeness Deficiency Examples:

•   Departures from standard report on financial statements not included
    in report on compliance and internal control (39%, 52%)
•   Policy as to whether to first apply restricted or unrestricted resources
    when an expense is incurred (both restricted and unrestricted assets
    are available) not disclosed (28%, 46%)
•   Policy for defining operating and non-operating revenues of
    proprietary funds not disclosed (11%, 12%)
•   Methods for handling risk of loss not disclosed (16%, 21%)
•   Report on compliance and internal control did not reference
    management letter for findings not considered to be material non-
    compliance or reportable conditions (15%, 16%)                 Florida
                                                               Auditor General
LG Audit Report Review Results
Comprehensive reviews: random samples
   Financial Statements and Notes (GASB 34)
   Pension Plan Note Disclosures (GASB 25 & 27)
   Federal Single Audit Act (OMB A-133)
   Florida Single Audit Act (Section 215.97, FS)
Most deficiencies related to management’s discussion and
analysis, F/S presentation and note disclosures required by
GASB 34. Also, several deficiencies noted for pension plan
note disclosures, and presentation of schedules of
expenditures, and findings & questioned costs, for Federal
awards and State financial assistance (see Appendix B)
                                                      Florida
                                                  Auditor General
LG Audit Report Review Results
Comprehensive Review Deficiencies:
•   MD&A condensed financial information for the
    government-wide financial statements comparing current
    and prior year did not present:
    •   General revenues, by major source (26%)
    •   Program revenues, by major source (23%)
    •   Program expenses, by function (9%)
    •   Transfers (27%)
    •   Change in Net Assets (16%)
    •   Ending Net Assets (12%)
                                                      Florida
                                                  Auditor General
LG Audit Report Review Results
Comprehensive Review Deficiencies:
•   Financial Statement Presentation:
    •   Ending fund balances or net assets shown on the prior year
        statements did not agree with beginning fund balances or net
        assets with no explanation for differences (12%)
    •   Account balances such as inter-fund receivables/payables,
        transfers and fund balances did not agree among F/S (9%)
    •   Statement of Activities was not reported in the government-wide
        financial statements per GASB Cod. 2200.139 (8%)
    •   Amounts reported as cash and cash equivalents on the statement
        of cash flows did not agree with similar account on the balance
        sheet and difference was not explained (8%)

                                                                 Florida
                                                             Auditor General
LG Audit Report Review Results
Comprehensive Review Deficiencies:
•   Notes to the Financial Statements:
    •   Did not disclose the policy for eliminating internal activity on the
        Statement of Activities (28%)
    •   Inter-fund balances not properly disclosed as amounts due from
        other funds by individual major fund and in the aggregate for non-
        major funds (27%)
    •   Did not disclose principal and interest requirements to maturity for
        all long-term debt for each of five subsequent years and in five
        year increments after (18%)
    •   Did not disclose types of transactions included in program
        revenue (12%)

                                                                      Florida
                                                                  Auditor General
LG Audit Report Review Results
Comprehensive Review Deficiencies:

•   Notes to the Financial Statements:
    •   Property tax calendar did not state the correct assessment (lien)
        date of Jan. 1 and due date of Nov. 1 ( 83%)
    •   Totals on supporting schedules in the notes did not agree with
        corresponding account totals on the F/S (12%)
    •   Required Supplementary Information that reconciles budgetary
        information with GAAP presentation was not presented (26%)




                                                                  Florida
                                                              Auditor General
LG Audit Report Review Results
Comprehensive Review Deficiencies:

 Examples of other Deficiencies (Pensions Plans):

  •   Notes did not disclose: (1) authority for plan benefit provisions
      (35%) or for employer obligations (29%) and (2) required
      contributions in dollars and as % of payroll (19%).


  •   Also, no disclosure of: (1) actuarial assumed inflation rate (12%);
      (2) actuarial assumptions for the amortization period (17%) and
      the (3) actuarial method used to determine value of plan assets
      (16%).

                                                                  Florida
                                                              Auditor General
LG Audit Report Review Results
Comprehensive Review Deficiencies:
 Examples of other Deficiencies (Single Audit):
 •   Schedule of Expenditures of Federal Awards/State Financial
     Assistance did not provide the total amount expended for each
     Federal program (45%) and State project (35%)
 •   Schedule of Expenditures of Federal Awards/State Financial
     Assistance did not include notes describing the significant
     accounting policies used in preparing the Schedule (13% and 8%,
     respectively)
 •   For 19% of audit reports with FSAA audit, the dollar threshold
     identified in the Schedule of Findings and Questioned Costs to
     distinguish Type A and Type B State projects was not calculated
     accurately.

                                                                Florida
                                                            Auditor General
LG Audit Report Review Results
Significant Financial Trends – 2004 Fiscal Year:
 Financial Emergencies
 •   Audits reported that 46 local government met one or more
     financial emergency conditions (15 met a condition for 2003 fiscal
     year)
 •   Our review of local governments not required to file audit reports
     disclose 5 more local governments that met one or more
     conditions
 •   Audits reported that for 7 of the 46 local governments that met a
     financial emergency condition, the condition resulted from
     deteriorating financial conditions



                                                                  Florida
                                                              Auditor General
LG Audit Report Review Results
Significant Financial Trends – 2004 Fiscal Year:
 Deteriorating Financial Conditions




                                              Florida
                                          Auditor General
LG Audit Report Review Results
  Significant Financial Trends – 2004 Fiscal Year:

                  Average Millage Rates

   Year          Counties             Municipalities
   2000           7.5804                 4.3366
   2001           7.5674                 4.3295
   2002            7.5942                 4.4184
   2003            7.5650                 4.3834
   2004            7.4974                 4.4413

                                                    Florida
                                                Auditor General
LG Audit Report Review Results
  Audit Findings – 2004 Fiscal Year:
LG Audit Report Review Results
  Audit Findings – 2004 Fiscal Year:
Florida
Auditor General

Contact Information
850-487-9031 (Suncom 277-9031)
Audit Manager:    Jim Dwyer
 jimdwyer@aud.state.fl.us

Audit Supervisor: Marilyn Rosetti
 marilynrosetti@aud.state.fl.us
Florida Auditor General Contacts
Local Government Audits
   Jim Dwyer            850-487-9031   jimdwyer@aud.state.fl.us
   Marilyn Rosetti      850-487-9031   marilynrosetti@aud.state.fl.us
District School Board
   David Martin         850-487-9039   davidmartin@aud.state.fl.us
Charter Schools
   Cheryl Pueschel      850-488-7435   cherylpueschel@aud.state.fl.us
Florida Single Audit Act
   Dan Owens            850-487-9031   danowens@aud.state.fl.us
Clerks of Circuit Court – Article V
   Hardee Ratliff       850-487-9031   hardeeratliff@aud.state.fl.us



                                                             Florida
                                                         Auditor General
Florida
Auditor General

Web site:     www.state.fl.us/audgen
E-mail:       flaudgen_localgovt@aud.state.fl.us
Headquarters: 111 West Madison Street
              Room 401Pepper Building
               Tallahassee, FL 32399-1450
Phone:         (850) 487-9031
Fax:            (850) 487-4403

				
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Description: Property Value Affidavit Florida document sample