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HomeMy WebLinkAboutV (E) Discussion: Proposal by McDirmit, Davis, Lauteria & Company for Audit of City Manager's Travel and Credit Card Expenditures AGENDA 2-6-96 Item V E "CENTER OF GOOD LIVING - PRIDE OF WEST ORANGE" O 5.SC:U1I VANDERGRIFT COMMISSIONERS CITY OF OCOEE RUSTY JOHNSON SCOTT ANDERSON 150 N.LAKESHORE DRIVE SCOTT A.GLASS OCOEE,FLORIDA 34761-2258JIM GLEASON (407)656 2322CITY MANAGER ELLIS SHAPIRO MEMORANDUM DATE: January 30, 1996 TO: The Honorable Mayor and Board of City Commissioners FROM: Montye E. Beamer, Director, Administrative Services SUBJECT: Proposal - McDirmit, Davis, Lauteria & Company, P.A. At its Special Meeting on January 18, 1996, the City Commission requested a proposal from the City Auditors McDirmit, Davis, Lauteria & Company, P.A. for an audit of the City Manager's travel and credit card expenditures for the last five years. The attached letter dated January 26, 1996 from Elden McDirmit represents the agreed-upon procedures that can be performed by his company. Based upon his cursory review of the existing files Mr. McDirmit quotes a not-to- exceed cost of $3,200; this would be the maximum cost should the outlined procedures be acceptable. These procedures should be read carefully. This would be neither an investigation nor an audit per se. A representative will be available at the February 6, 1996 City Commission meeting to answer any questions and detail how long it may take to complete these agreed-upon procedures. MEB/jbw /-S CDIRMIT AVIS AUTERIA & COMPANY, P.A. CERTIFIED PUBLIC ACCOUNTANTS January 26, 1996 Honorable Mayor and City Commissioners City of Ocoee, Florida 150 N. Lakeshore Drive Ocoee, Florida 34761 Thank you for the opportunity to submit a proposal to perform certain agreed-upon procedures as detailed below. Before listing these procedures, we will first describe the history of the City's travel and credit card policies and ordinances. Until October 5, 1993, travel and entertainment policies were outlined in Section 10.03 of The City of Ocoee, Florida Personnel Rules and Regulations. These rules and regulations were adopted by the Board of City Commissioners on November 21, 1989 as Ordinance Number 89-44. As part of the audit of the City's financial statements for the year ended September 30, 1992, we issued a management letter and included a comment that there was not proper documentation related to American Express bills submitted for payment. We recommended that the City develop written guidelines that should be followed by all personnel when using the City's credit card. • On October 5, 1993,the City's Commission adopted Ordinance Number 93-18, Personnel Rules and Regulations, which covers all employees and has a section on travel policy. Also on December 7, 1993, the City Commission adopted Ordinance Number 93-20 which provided policies relating to travel expenses incurred by the Mayor and City Com- missioners, City Manager, City Attorney and member of Boards and Commissions. In our management letter for the year ended September 30, 1993, we noted there had been some improvement in properly documenting "public purpose" of expenses on American Express bills; however, we still noted some with no explanation on the bill. We will perform the following agreed-upon procedures for the fiscal years ended September 30, 1991 through 1995: 1. Examine all Travel Request and Expense Vouchers for the City Manager in order to determine that amounts paid were in accordance with the applicable policy outlined above. 612 E.COLONIAL DRIVE•SUITE 350.ORLANDO,FLORIDA 32803-4603•(407)648-0713•FAX(407)839-3975 PRIVATE COMPANIES PRACTICE SECTION•AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor and City Commissioners January 26, 1996 City of Ocoee, Florida Page Two 2. Prepare a schedule which details amounts on Travel Request and Expense Vouchers for the City Manager including registration fees, lodging, transportation, meals and miscellaneous. Indicate if expenses are in accordance with travel policy. 3. Examine all American Express bills and supporting documentation for the City Manager's card and determine the nature of the expenditure, the public purpose and for whom the expenditure was paid. 4. Prepare a schedule by month which itemizes amounts paid on American Express bills and lists the following: a. Date paid, b. Payee and description of goods or services, c. Amount, d. Attendees, and e. Documentation of public purpose. Our report on performing the above agreed-upon procedures is expected to read as follows: "We have performed the procedures enumerated below, which were agreed to by the Mayor and City Commissioners of the City of Ocoee, Florida, solely to assist you with respect to the travel and credit card expenses of the City Manager of the City of Ocoee for each of the five years ended September 30, 1991 through 1995. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the Mayor and the commissioners. Consequently, we make no representations regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purposes. Our procedures and findings are as follows: (List procedures 1 to 4 and refer to attached schedules.) We were not engaged to, and did not, perform an audit,the objective of which would be the expression of an opinion on the specified elements, accounts or items. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the use of the Mayor and City Commissioners and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes." Honorable Mayor and City Commissioners January 26, 1996 City of Ocoee, Florida Page Three We estimate that our fee to perform the above procedures will not exceed $3,200. We appreciate the opportunity to be of service to you and believe this letter accurately summarizes the significant terms of our engagement. if you agree with the terms of our engagement, as described in this proposal, please sign the enclosed copy and return it to us. Sincerely, McDIRMIT, DAVIS, LAUTERIA & OMPANY, P.A. 6 . fiiirb Elden G. McDirmit, C.P.A. Response: This letter correctly sets forth the understanding of the City of Ocoee, Florida. Signature Title Date