CRA Minutes 05/09/2008 - Laserfiche WebLink

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Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing StaJJdards - Appendix A Unrecorded liabilities Observation 2007-1: While performing our search for unrecorded liabilities we noted an invoice for services received during the fiscal year that was not included in accounts payable at September 30, 2007. Cut-off procedures are in place to identify year-end accounts payable; however, this payment was overlooked. This resulted in understatement of accounts payable and expenditures of $7,166. Recommendation: We recommend that invoices received after year-end be carefully reviewed to ensure that all expenditures of the prior year are properly included in accounts payable as required by generally accepted accounting principles. Management's Response: Auditors must evaluate internal controls for deficiencies and utilize their own judgment as to whether a deficiency is of such magnitude or likelihood of recurrence that it raises to a level where it should be noted as significant. An internal control is a process designed to provide reasonable assurance as to the reliability of financial reporting. The City of Casselberry follows a procedure where disbursements and accompanying invoices are reviewed after the close of the fiscal year. During the months of October and November expenditures applicable to the prior year are identified and those that are deemed material are included in accounts payable. The deficiency identified is equal to less than one percent of the total revenue reported for the Community Redevelopment Agency. As considered in comparison with the City of Casselberry as a whole it would be much less meaningful. Management respectfully disagrees that the accounts payable omission in this case rises to a level where a significant deficiency should be recognized. 18