Bradenton Beach adjusts after audit
by Lisa Neff. Islander Reporter
Bradenton Beach officials are adjusting procedures in response to recommendations in the city’s audit report for fiscal 2007.
The report, prepared by Christopher, Smith, Leonard, Bristow & Stanell of Bradenton, was completed Feb. 22 and discussed at city hall March 18. The report covered an audit for fiscal year 2007, which began Oct. 1, 2006, and ended Sept. 30, 2007.
A management letter details the accounting firm’s recommendations “to improve financial management, accounting procedures and internal controls.”
Bradenton Beach city clerk Nora Idso stated that the city is addressing each of the recommendations.
The auditor’s management letter covered four general areas for the city - purchasing procedures, year-end adjustments, administrative office and internal financial statements.
In regards to purchasing procedures, the letter notes that during the reconstruction of the city pier, 34 change orders were approved that increased the cost of the project.
“Many of these changes were apparently approved after verbal authorization had been given to the contractor,” the letter states.
The firm recommended that such changes “be formally approved before additional procedures are performed. We continue to suggest consideration be given to changing purchasing policies to reflect current administrative structure of the city.”
Idso said the city “will begin the process of implementing a more stringent, written … policy to ensure that all changes to any contract be formally approved before verbal authorization is given to any contractor.”
In regards to year-end adjustments, the firm said city personnel prepared most of the adjustments required for year-end audit purposes as encouraged by new reporting standards.
“However,” the firm’s letter states, “entries for certain year-end revenue and expense accruals were not prepared. We suggest that the city continue its efforts in preparing all required year-end adjustments.”
Idso said, “As preparing all the year-end entries for adjustments required for the year-end audit purposes was new to this office with the 2007 audit, there was some confusion and uncertainty regarding what was required.”
She added, “Over time, it will certainly become easier and all entries will be prepared as needed.”
In regards to office administration, the auditor suggested cross-training employees, a common recommendation for small governments, according to the firm.
Idso said the administration office will consider reorganizing duties and responsibilities “so that there can be an ample amount of time devoted to the accounting functions.”
The final recommendation in the letter was for the city to work with its software vendors to simplify internal financial statements.
“The city’s financial statements contain many unneeded lines which at times can make them difficult to interpret,” the auditor said.
Idso said the city already has contacted its software vendor to “being the process of ‘cleaning up’ unneeded lines from the financial statements.”
State law requires audits of local government entities and the filing of audit reports with the Florida Auditor General. Auditor general rules also require the firm to notify the state agency if there are discrepancies between the city’s financial report and the audit report. In Bradenton Beach’s case, the reports were in agreement. |
