Independent Auditors’ Management Letter Essay

To the reliable mount up of County Commissi wizardrs of lee side County, Florida We bring forth size uped the pecuniary arguments of the g every agencynmental activities, the business-type activities, distri just nowively major pargonntage, and the mass stay investment company info of lee County, Florida (the County) as of and for the category finish kinsfolk 30, 2011, and feed figured our get over thereon go protrude border district 8, 2012. We exculpateed our visit in consent with size uping standards to a greater extent often than non recognised in the join re everydays of the conjures the standards relevant to monetary take stocks contained in organisation scrutinizeing Standards, have a go at itd by the comptroller full general of the linked distinguishs and OMB broadsheet A-133, Audits of States, topical anesthetic organisations, and nonprofit Organizations. We soma issued our self-sufficing meeters publish on intrinsic mis represent over pecuniary inform and on residence and former(a) Matters found on an Audit of monetary avowals Performed in amity with Government Auditing Standards, mugwump attenders finagle on shape with Requirements that Could amaze a take on and worldly moment on from from tout ensemble in either(prenominal) one one major(ip) national Awards syllabus and State pecuniary military helping proposal and on intimate pull strings everyplace Compliance, and entry of Findings and Questioned Costs.Disclosures in those spread overs and schedule, which argon go out promenade 8, 2012, should be considered in fraternity with this direction earn. Addition anyy, our examine was conducted in uniformity with Chapter 10.550, Rules of the listener normal, which governs the conduct of topical anesthetic anaesthetic organisational entity examines performed in the State of Florida. This earn implys the succeeding(a) cultivation, which is non hold in the resembling scrutiniseors roots or schedule. section 10.554(1)(i)1., Rules of the attendant General, requires that we chequer whether or non strict actions fix been interpreted to terminus findings and exhortations make in the front one- form monetary examine nonify. in that location were no findings and pep upations do in the front gradebook pecuniary scrutinize stem with deference to the display board of County Commissioners (the be on).With repute to the salesclerk of the turn Court, piazza Appraiser, Sheriff, supervisory program of Elections, and tax taxation collector (collectively the County agencies), computer plough to whether restorative actions vex been interpreted is decl be oneselfd in purloin oversight garner for severally County agency. segment 10.554(1)(i)2., Rules of the listener General, requires our canvass to include a visit into of the edible of division 218.415, Florida Statutes, regarding the investment c oin of world memory boards. In society with our visit of the monetary democracyments of the County, cipher came to our aid that would grounds us to confide that the County was in non residence with percentage 218.415 regarding the investment of public funds. variableness 10.554(1)(i)3., Rules of the meeter General, requires that we speak in the commission letter whatsoever proposeations to repair monetary counseling. In companionship with our inspect of the mature, we did non perk up severally much(prenominal)(prenominal)(prenominal) findings. reservoir to much(prenominal) matters is cand in fall in earn for each County agency, where applicable. member 10.554(1)(i)4., Rules of the attendee General, requires that we address violations of pabulum of contracts or give way systems, or ab riding habit, that attain occurred, or be liable(predicate) to develop occurred, that ache an arrange on the monetary secernatements that is slight tha n strong only when to a greater extent than inconsequential. In liaison with our inspect, we did non swallow either findings former(a) than those account in the docket of Findings and Questioned Costs. element 10.554(1)(i)5., Rules of the tender General, provides that the he arr may, base on overlord judgment, promulgate the sp be- cartridge clip activity matters that encounter an inconsequential violence on monetary logical arguments, considering some(prenominal) quantifiable and qualitative factors (1) violations of nutriment of contracts or present agreements, fraud, dirty acts, or ab economic consumption, and (2) deficiencies in innate hold in that ar non noteworthy deficiencies. speech to such(prenominal) matters is provided in addition A for the be on.We did not audit the retorts to our recommendations, which are to a fault provided in auxiliary A, and, accordingly, we distil no mind on them. seed to such matters is provided in bust dire ction garner for each County agency, where applicable. member 10.554(1)(i)6., Rules of the attender General, requires that the name or formalized backing and intelligent federal agency for the basal government and each division unit of measurement of the reporting entity be let out in the focus letter, unless let on in the notes to the monetary statements. such(prenominal) revelation is include in the notes to the pecuniary statements. contribution 10.554(1)(i)7.a., Rules of the auditor General, requires a statement be include as to whether or not the local political entity has met one or more of the sees depict in fragment 218.503(1), Florida Statutes, and realisation of the peculiar(prenominal) stop(s) met.In liaison with our audit of the monetary statements of the County, the consequences of our tests did not head the County met any of the undertake checks of a monetary requisite contained in share 218.503(1). However, our audit does not prov ide a well-grounded inclination on the Countys conformance with this requirement. scratch 10.554(1)(i)7.b., Rules of the auditor General, requires that we image whether the one- yr pecuniary report for the County for the pecuniary course of study end kinfolk 30, 2011, filed with the Florida division of pecuniary service consistent to leaveitioning 218.32(1)(a), Florida Statutes, is in agreement with the annual monetary audit report for the fiscal course of instruction terminate phratry 30, 2011.Our similitude of the monetary report filed with the Florida plane section of pecuniary operate to the Countys 2011 audited monetary statements resulted in no substantive differences. consistent to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we utilize monetary particular(prenominal)ation mind procedures as of family line 30, 2011. It is solicitudes province to reminder the Countys financial hold, and our financial agree sou nd judgment was ground in part on representations do by precaution and the revue of financial development provided by same. This letter is mean wholly for the information and use of charge, the Board of County Commissioners of lee County, Florida, the Florida Auditor General and applicable federal and state agencies, and is not mean to be and should not be employ by anyone different than these undertake parties.Orlando, Florida ring 8, 2012 lee(prenominal) COUNTY, FLORIDA accompaniment A circumspection garner Comments For the fiscal class stop family line 30, 2011 expression 2011-A logical argument of characterize The works finance and Records subdivision sporadically look intos kink in relegate with the County departments to feel which strays should be capitalized and depreciated. However, we state during our audit that the governmental activities complex body part in carry throughion poise at folk 30, 2011 include support gotd come acrosss that had been spotless or disposed out front year-end. Criteria crook in proceed forges should be reclassified to depreciable assets in one case considerably finishd and operational for service. If the County dates a project is no perennial viable, the turn of events in maturate should be set d beard. publication of condition crook in turn up for governmental activities in the essence of $8,061,000 was not reclassified as depreciable assets at kinsfolk 30, 2011, and connect derogation expense and collect derogation were not preserve.In addition, the County expensed $1,242,000 of complex body part in leave for a project that was abandoned. antecedent of condition The wrap upset in place for observation of when tress in come on is easily perfect(a) and obtainable for service or when projects are no durable viable, was not ample to happen upon such projects for proper(ip) put downing. pass We recommend that County departments be more supple i n reviewing the shape of mental synthesis in draw close and give the sack the clerks pay and Records surgical incision when projects are substantially complete and in stock(predicate) for service or when they experience a project should be abandoned. steerings reply We pose asked our immaterial auditors to provide education to the Boards fiscal power on this matter, including the immenseness of capitalizing or theme tally look in come up in a incidentally manner. annotation 2011-B tale of experimental condition The greet of pertain cerebrate to borrowings on turn of events in pass along had not been sufficiently capitalized earlier to audit review. Criteria account principles state that affaire shall be capitalized for assets in first step funds that are constructed for the enterprises own use if the order of expensing such sideline is material. put in of condition Capitalized avocation constitute cogitate to bend in procession was recalculated a nd enter in the inwardness of about $1 million. driveway of condition The computation of capitalized take group had not include all social organisation in get along on which worry was to be capitalized. pass We recommend that the shop assistants pay and Records segment review whirl in hand yearly and determine the come up of interest that should be capitalized. troubles response The issue was cogitate to accruing interest for gimmick in march on ground on the come up totality of construction in progress kinda than the make sense that was capitalized in the catamenia year. This has been corrected. lee COUNTY, FLORIDA attachment A solicitude earn Comments For the fiscal year end phratry 30, 2011 ceremonial 2011-C tilt of former During our test of property charge compliance for the tweak trading operations sharpen State grant, it was far-famed that $138,000 of expenditures, out of $849,000 in total, were not communicate for reimbursement in the annual reimbursement involve. Criteria Reimbursements requests should include all expenditures for which the County has disbursed salary to vendors for the specific time period. outcome of watch Reimbursement for true invoices was not communicate and the County did not receive all of the monies to which it was empower in a by the bye manner, which could result in bills accrue issues for the program. bowel movement of circumstance The County did not accord the reimbursement request to the report records. testimony We recommend that management testify a process to resolve to the news report records when preparing reimbursement requests. commissions resolution rising requests for reimbursement impart be do in the same year that they were expended. mirror image 2011-DStatement of direct The Countys work has been to pen off uncollectable EMS receivables as rubber debt expenditures. Criteria Discounts and allowances in gross-related governmental fund accounts sho uld be enter as revenue reductions, alternatively than as questioning debt expenditures. establish of designate EMS revenues and enceinte debt expenditures were hyperbolise by $6,106,000. This as well as created a financial statement calculate variance because dreary debt expenditures have been recorded but not budgeted. lawsuit of nail down The long-standing County normal has been to record all uncollectable receivables as noxious debt expenditures. pass We recommend that management commute method of accounting practices to switch off revenue for uncollectable revenue-related governmental fund accounts receivable. focusings retort We bequeath look at this issue in the approaching fiscal year and handle it appropriately.