Okaloosa County BOCC — January 20, 2015 — County's Response to Preliminary and Tentative Findings — reading text

agrees that there have been no similar reimbursement agreements during the operative period. However, the County would additionally note that the issue related to reimbursement of overcharged medical support services provided by the County was addressed with BP and a full and complete resolution of that issue has been reached. The County has reimbursed those funds that both the County and BP have agreed were the amount overcharged. Motor Vehicles Finding No. 21: Fuel Cards Previously Reported The BCC had not established adequate controls over the use of fuel cards. We recommended that the BCC strengthen its vehicle usage procedures to include more reasonable fuel consumption parameters, the effective use of fuel card exception reports and user department reconciliations of fuel charges to gas receipts, and the retention of all gas receipts by user departments. 16 Results of Follow-Up Procedures The BCC’s actions corrected this finding. Our review of July 2014 fuel card purchases by the TDD disclosed the BCC was using reasonable fuel consumption parameters, effectively using fuel card exception reports and user department reconciliations of fuel charges to gas receipts, and retaining all gas receipts. COUNTY RESPONSE: The County concurs with the Results of the Follow-Up Procedures directed to the previous Findings and agrees that the BCC has fully and completely addressed and implemented the recommended corrective actions. Accounting Controls Finding No. 22: Classification and Reporting of Expenditures Previously Reported The CCC incorrectly classified and recorded certain expenditures in the accounting records, contrary to guidance provided by the Florida Department of Financial Services in the Uniform Accounting System Manual for Florida Counties (Manual). We recommended that the CCC strengthen its procedures to ensure that expenditures are properly classified and recorded in accordance with the Manual. Results of Follow-Up Procedures The CCC’s actions corrected this finding. Our review of 15 purchases totaling $372,692 made during the period January 2014 through July 2014 disclosed that expenditures were properly classified and recorded in accordance with the Manual. COUNTY RESPONSE: The County and the CCC concur with the Results of the Follow-Up Procedures directed to the previous Findings and agree that the CCC has fully and completely addressed and implemented the recommended corrective actions. Electronic Funds Transfers Finding No. 23: Controls over Electronic Funds Transfers Previously Reported The BCC had not adopted written policies and procedures, and the BCC had not established adequate controls over the authorization and processing of electronic funds transfers (EFTs). We recommended that the BCC develop written policies and procedures addressing EFTs as required by Section 668.006, Florida Statutes, including providing for an adequate separation of duties over access to 17 BCC assets and the related accounting records, and documenting independent approvals before the funds are transferred. We also recommended that the CCC revise its funds transfer agreement with the bank to address the deficiencies noted and timely update its funds transfer agreement with the bank when changes in authorized personnel occur. Results of Follow-Up Procedures The CCC’s actions corrected this finding. The CCC, which makes EFTs on behalf of the BCC, adopted a policy that addresses the authorization and processing of EFTs as required by Section 668.006, Florida Statutes. This policy requires a dual control for EFT transactions whereby one employee initiates the EFT and a second employee must approve the EFT. Our review further disclosed that the CCC’s funds transfer agreement with the bank was updated and included only authorized current CCC employees. COUNTY RESPONSE: The County and the CCC concur with the Results of the Follow-Up Procedures directed to the previous Findings and agree that the CCC has fully and completely addressed and implemented the recommended corrective actions. Information Technology Controls Finding No. 24: Access Controls Previously Reported The BCC had not established adequate controls over employee access privileges to data and information technology (IT) resources. We recommended that the BCC strengthen its procedures to include the periodic review of IT access privileges granted to employees and timely remove or modify unnecessary or incompatible access privileges detected. Results of Follow-Up Procedures The CCC’s actions corrected this finding. The CCC, who maintains the accounting records for the BCC, adopted and implemented several policies requiring independent reviews of journal entry reports and changes made to the payroll system and master vendor file. In October 2013, the CCC also adopted a policy requiring the CCC’s Financial Services Manager to review employee access to all financial software systems. In October 2014, the CCC’s Financial Services Manager performed and documented such a review. COUNTY RESPONSE: The County and the CCC concur with the Results of the Follow-Up Procedures directed to the previous Findings and agree that the CCC has fully and completely addressed and implemented the recommended corrective actions. Public Records Finding No. 25: TDC and TDC Subcommittee Meeting Minutes 18 Previously Reported The BCC did not record minutes of a TDC and TDC subcommittee meeting, contrary to law. In addition, the minutes of the remaining meetings were not signed or otherwise designated to indicate the minutes were the official minutes approved by the TDC or TDC subcommittees. We recommended that the BCC continue to strengthen its procedures for maintaining official minutes of the TDC and TDC subcommittees by recording minutes for all meetings and requiring that the final approved minutes made available for public inspection be signed by the TDC or TDC subcommittee chairman and the employee who recorded the minutes. Results of Follow-Up Procedures The BCC’s actions corrected this finding. The last remaining TDC subcommittee was abolished in February 2013. Our review of the official minutes of the TDC meetings indicated that minutes were maintained for all TDC meetings and were signed by the TDC chairman and the Tourist Development Director. COUNTY RESPONSE: The County concurs with the Results of the Follow-Up Procedures directed to the previous Findings and agrees that the BCC has fully and completely addressed and implemented the recommended corrective actions. 19