10/15-23/1986 Audit MONROE COUNTY, FLORIDA
REVIEW OF CERTAIN INTERNAL CONTROLS -
BUILDING AND ZONING OFFICES
OCTOBER 15 - 23, 1986
Kemp b Rosasco
Certified Public Accountants
CONTENTS
P
Review of Operations and Control Procedures
Relative to Cash Receipts 1 - 3
Schedule of Undeposited Receipts -
Plantation Key 4 - 10
KEMP F-4 IRDSASCO
Certified Public Accountants
)*na KENmsoY DR.
*12 LUxm| PLAZA e p. C`. BOX 1529
KEY VvESv' FL 33041'1529
ORV|Sm. mEmp' [p.x. (305) 294'2581 /mE/mgER OF /wmER|Cnm |m$TnUvE
VvM. C`. mExxP, C.P.A. AND FLORIDA INSTITUTE OF
PETER L. POSASCo. J,, C.p.A. [EonF|Eo PUBLIC ACCOUNTANTS
xxARvx E. GRsEw' C.p.x.
November 10, 1980
Mr~ Danny Ko| hagm
Clerk of the Court ^
Monroe County
Key West, FL 33040
We have reviewed the description of the operations and control procedures of
the Monroe County Building and Zoning offices related to the receipt and depo-
sit of cosh and, identified specific control objectives and the procedures that
achieve those objectives. Our review, covering the period from October 15
through October 23° 1986° included such tests as we considered necessary to
evo|uofo whether the procedures described in this letter and the extent of
compliance with them are sufficient to provide reasonable, but not absolute,
assurance that the control objectives specified therein were achieved. We
reviewed compliance only in respect to the receipt and deposit of cash.
Accordingly, we do not express on opinion on whether all internal controls
were being applied as prescribed for any period of time or,- on whether the
system, taken as a whole, meets the objectives of lnforno| accounting control.
Because of inherent limitations in any system of internal accounting control ,
errors or irregularities may occur and not be detected. Also, projection of
any evaluation of the system to future periods is subject to the risk that
procedures may become Inadequate because of changes in conditions, or that the
degree of mcmp | lonoe with the procedures may deteriorate.
In our opinion, the control procedures of Monroe County Building and Zoning
offices as described in the following pages and the degree of compliance with
them were sufficient to provide reasonable but not absolute assurance that the
control objectives specified therein were achieved from October 17 to October
25, 1980.
Comments on Prior Procedures
It appears that procedures relative to the receipt and deposit of cash were
inadequate to property safeguard the County's assets from theft at Plantation
Key. Such procedures should have been upgraded as the volume of permits
Issued increased. Daily deposits and corresponding daily accounting summaries
were not prepared. The practice was to hold the r000!pfs until the cashiers
could balance the bank deposits. Until the error was found, the money was
held in the vault with the supporting documents. As the volume of permits
issued increased., it became more difficult to balance the deposit. At the
time of the robbery, two weeks' receipts were in the vault. In addition, pro-
cedures had deteriorated relative to access to the vault and the cash box.
To some degree, all three of the offices did not make daily deposits. The
Mr. Danny Kol hage
Clerk of the Court
Page 2
Comments on Prior Procedures (Cont. )
Marathon and Key West office made deposits at least weekly if there was little
activity. All three offices have represented to us that all receipts were
deposited before the end of the month and that any unusually large cash
receipts were deposited promptly.
Current Procedures
All application fees collected are documented on a prenumbered receipt form,
one copy retained by the office and one copy by the applicant. Permits are
also prenumbered, and are on a multiple copy form. The offices indicate on
the individual permit form whether it was paid by check or cash. Any voided
permits are sent to the Key West accounting office.
The cash box is kept in a locked desk drawer, access to which is restricted to
the cashier and office manager. Deposits are prepared daily by the cashier,
who also prepares a daily summary sheet. The daily summary sheet documents
the permit numbers and receipt numbers issued that day and sorts the receipts
by accounting code. The offices may only deposit Into the bank accounts, they
have no means of writing checks.
At the end of the month, the daily summaries are totaled on a "monthly
summary" form which is sent to the Key West accounting office. Each office
maintains a file of daily summaries, bank validated deposit tickets, deposit
slips and county receipt forms relative to its cash receipts.
The current procedures appear to provide good accounting controls relative to
the receipt of cash. The major strength of these procedures is that they
require the daily deposit of all cash received.
Recommendatlons Regardinq Current Procedures
We believe the current procedures would be enhanced by a clear cut policy as
to the accounting for cash short and over. It is our understanding that the
cashiers are held responsible for shortages. This places inappropriate
pressure on them to balance. It has been our experience that this policy
leads to a "fund" in which overages are used to pay for shortages. Deposits
should be deposited daily, a reasonable search for any differences should be
made and the amount short or over should be accounted for appropriately. The
short or over account should be monitored to evaluate the cashiers perfor-
mance.
In addition, the County should consider changing the locks and vault com-
binations when employees with access to cash leave County service.
Conclusion
Based on our visits to the Building and Zoning departments in Key West,
Marathon and Planation Key, the procedures concerning the collection of appli-
cation and permit fees and the deposit thereof appear to be consistent between
the three offices.
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Mr. Danny Kolhage
Clerk of the Court
Page 3
Cons I us ion (Cont. )
The new procedures requiring daily deposits supported by a daily summary sheet
should provide an effective means of insuring effective controls in this area.
We believe that the controls would be further strengthened if our recommen-
dations are implemented.
We are pleased to have this opportunity to serve you. Please do not hesitate
to call if you have any questions.
Sincerely,
ewf kov��
Kemp & Rosasco
Certified Public Accountants
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KEMP !�& ROSASCO
Certified Public Accountants
1438 KENNEDY DR.
#12 LUANI PLAZA • P. 0. BOX 1529
KEY WEST, FL 33041-1529
ORVIS M. KEMP, C.P.A. (305) 294-2581 MEMBER OF AMERICAN INSTITUTE
WM. 0. KEMP, C.P.A. AND FLORIDA INSTITUTE OF
PETER L. ROSASCO, Jr., C.P.A. CERTIFIED PUBLIC ACCOUNTANTS
MARVA E. GREEN, C.P.A.
Mr. Danny Kolhage
Clerk of the Court
Monroe County
Key West, FL 33040
We have examined the accompanying Schedules of Undeposited Receipts relative
to the period September 3, 1986 through September 12, 1986 as of October 31 ,
1986. Our examinations were made in accordance with generally accepted
auditing standards and, accordingly, included such tests of the accounting
records and such other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the schedules referred to above present fairly the
Undeposited Receipts for the above named period and their disposition as of
October 31, 1986 in confirmity with generally accepted accounting princilpies.
kdV v`
Kemp 8 Ro sco
Certified Public Accountants
October 31 , 1986
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MONROE COUNTY, FLORIDA
BUILDING' AND ZONING OFFICE PLANTATION KEY
SUMMARY SCHEDULE OF UNDEPOSITED RECEIPTS
PER DAILY CASH SHEETS
OCTOBER 31 , 1986
Applications Permits TOTAL
Amount Recei t # Amount Receipt a
September 2 $ - - $ 630.20 20259-60 $ 630.20
September 3 75.00 422455 40,526.80 20261-68 42,601.80
September 4 3.75 422457 12,697.30 20269-73 121701.05
September 5 75.00 422459 152,394.20 20274-99 152,469.20
September 8 26.75 422461 82,050.20 20300-04 82,076.95
September 9 30.00 422463 49,822.00 20305-39 492,852.00
September 10 30.00 422465 312,138.60 20340-55 312,168.60
September 11 - - 8,177.00 20356-69 8,177.00
September 12 - - 282496.30 20370-92 282496.30
240.50 147,932.60 1482,173. 10
Application fees
collected 9/9 b
9/10 included In
both permits b app-
lication deposits (60.00) (60.00)
VOID permit 20278,
9/5 incl . in permit
cash amount (255.00) (255.00)
$ 240.50 $ 147,617.60 $ 1472,858. 10
The accompanying notes are
an integral part of these schedules.
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M0INROE COUNTY, FLORIDA
BUILDING AND ZONING OFFICE PLANTATION KEY
NOTES RE SCHEDULES OF UNDEPOSITED PERMITS
OCTOBER 31, 1986
The Building and Zoning staff has attempted to contact all taxpayers who
obtained permits from September 2 through September 12. Most of the taxpayers
have reissued their checks, occasionally deducting the related stop payment
charge. The reissued checks are deposited separately from normal receipts and
are clearly labeled as special deposits.
Initially, the special deposit receipts were not listed by permit number. We
were able to specifically identify most amounts by notes written on permit
copies as to the date deposited and amount. In early October and thereafter,
deposit slips included the related permit number. There were, however, some
permits which could not be associated with deposits (asterisked on preceeding
pages). The asterisked permits total $5,049.90. Special deposits which we
could not match with permits are listed as follows:
September 19 $ 21,438.50
19 783.00
23 95.00
23 1 ,003.50
October 2 780.30
$ 5,100.30
The amounts are reasonably close and it appears that all such receipts were
deposited.
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