OIG No. 21-06: Second Semi-annual Finance ReviewJoseph M. Centorino, Inspector General
TO:
FROM:
DATE:
AUDIT:
PERIOD:
Honorable Mayor and Members of the City Commission
Joseph Centorino, Inspector General
October 22, 2020
Second Semi-annual Finance Review - Fiscal Year 2019/20
OIG No. 21-06
April 1, 2019 to September 30, 2020
Upon the discovery of a $3.6 million fraud during 2016 involving its Treasury and ACH
disbursements, the City Administration and Finance Department, among other responsive
actions, hired the independent firm of BOO USA, LLP (BOO) to perform an audit. After extensive
testing, interviews and analysis, BOO issued a report on May 17, 2017 containing 60 findings with
recommendations on how to mitigate the City's risk exposure on these disbursements, which also
affected other Finance Department functions, including payroll and accounts payable. The City's
Finance and Information Technology Departments worked together to take the corrective actions
necessary to mitigate the associated risks and to attain the desired outcomes.
In response to the BOO audit report, the then-existing Office of Internal Audit was tasked with
performing semi-annual reviews of selected recommendations to ensure that these outcomes
continue to be achieved by the City. The Office of the Internal Audit was subsumed into the Office
of the Inspector General (OIG) on November 1, 2019, which has opted to continue performing
these semi-annual reviews for the foreseeable future. The focus of this review is to test City staff's
compliance with BOO recommendations numbered 18 and 27. A reporting of the sampled BOO
recommendations, the results of OIG staff's current testing, and recommendations are separately
listed below.
1. BOO Recommendation #18 - Employees who process invoices in Munis should be prevented
from entering new vendors or changing existing vendor information in the vendor master file.
Current Testing Results #418- After reviewing the role and permissions of the employees
responsible for processing invoices, it was determined that none of them were able to enter
or change existing vendors in Munis. Furthermore, the few employees capable of entering
new vendors or changing existing ones, are not able to also post invoices. Consequently, no
exceptions were noted as the City is currently in compliance with BOO Recommendation #18.
2. BOO Recommendation #27- Munis should be modified so as not to allow significant payments
to be issued unless the approvals of at least two different City officers have been documented
in the system. Further, Munis should be modified so as not to allow payments exceeding
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$1,000,000 to be issued unless the approval of the City Manager has been documented in
the system.
Current Testing Results #27 - Office of the Inspector General staff tested all 278 "Accounts
Payable Invoices" or API transactions exceeding $100,000 occurring between April 1, 2020
and September 30, 2020. In doing so, it was determined that all these transactions were
approved in accordance with the Disbursement Workflow Policy and that they were properly
aligned with the Munis approval configuration.
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Reviewed by, ..5. ari cooi@@e. cnn auao
Completed by:
Norman Blaiotta D
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(O-32-2020
Date
cc: John Woodruff, Chief Financial Officer
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