Parks & Recreation Department Cashiering Function and Revenue' "-. J\ldAtv\1 BEA,CH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA:
FROM:
Jorge M. Gonzalez, City Manager -fh
Kathie G. Brooks, Budget and Performance Improvement Director pr
James J. Sutter, Internal Auditor~,#/
June10,2011 /·~ DATE:
AUDIT:
PERIOD:
Parks & Recreation Department Cashiering Function and Revenue Audit
October 1, 2009 through August 31, 2010
This report is the result of a regularly scheduled audit of the cashiering functions maintained and the
revenues received at the Parks & Recreation Department's Flamingo Park Pool and Youth Center,
Normandy Isle Park and Pool, North Shore Park Youth Center and Scott Rakow Youth Center
(including the ice rink) facilities between October 1, 2009 and August 31, 2010.
INTRODUCTION
The City's Parks & Recreation Department has a wide array of revenue sources that comprise its
fiscal year 2009/10 adopted budget total of $7,7 40,788. A majority of these projected revenues
($5,731 ,538) are derived from the Miami Beach and Normandy Shores Golf Clubs which are
administered under separate contract agreements with an outside management firm called
Professional Course Management II, Ltd. These two golf clubs were separately audited earlier this
fiscal year and their combined audit report can be found on the City's website.
Instead, this audit focuses on the remaining approximately projected two million projected dollars
which is collected from enrollees who wish to participate in offered swim classes, athletics, summer
camps, after school programs, etc. Random testing was conducted on the listed revenue sources
collected at each of the Parks & Recreation Department facilities below:
*
Tested Facility* Facility Address Tested Revenue Sources
Flamingo Park Pool and Youth 999 11 1r Street Programs/classes, camps, entrance
Center fees and facility rentals
Normandy Isle Park and Pool 7030 Trouville Esplanade Entrance fees, swim classes and
facility rentals
North Shore Park Youth Center 501 72 110 Street Programs/classes, camps and facility
rentals
Scott Rakow Youth Center Ice 2700 Sheridan Avenue Entrance fees, lessons, classes and
Rink facility rentals
Scott Rakow Youth Center (Non 2700 Sheridan Avenue Programs/classes, camps and facility
Ice Rink) rentals
Monies can also be received at the 21 51 Street Administrative Offices but no testing was performed at this
facility.
Parks & Recreation Department customers are required to complete program specific
documentation which among other items may include permission slips, emergency contact cards,
registration forms, sign out procedures, etc. To help alleviate the repeated completion of documents
when registering for each class or program, customers receive a participant enrollment card valid
through the completion of the next summer which when presented can be substituted for most.
We are commiltedto providing excellent public service and safety to all who live, work, one/ play in our vibront, tropicol, historic community.
Internal Audit Report
Parks & Recreation Department Cashiering Function and Revenue Audit
June 10, 2011
Some forms like the emergency notification card, refund policy form, partial payment form, etc.
always have to be completed by each customer for each program registered.
The prices charged at these tested facilities vary based on the customer's residency, other enrolled
siblings, the percentage of scholarship awarded for proving that the household income falls within
designated ranges, etc. In addition, partial payment plans are offered whereby the customer can
make agreed upon payments at different times during the registered program.
Prices for such core programs as after school, summer camp and swim programs are approved in
advance by the City Commission, while the remaining programs' prices (specialty camps, athletic
fees, summer specialty program fees, etc.) are administratively set by Parks & Recreation
Department management. Program prices are included in the Parks & Recreation Department's bi-
annual Recreational Reviews and are also listed on the City's website.
The tested facilities accept cash, check or credit card payments and in return the customer receives
a manually prepared pre-numbered receipt and another printed from the department's computer
software, RecWare Safari. This software centralizes all customer and program information which is
made available to authorized users for analysis and monitoring.
All monies received at each facility are to be reconciled daily with the supporting documentation and
RecWare Safari entries by designated employees separate from those receiving the monies. Once
completed, Parks & Recreation Department personnel enter the transactions into the revenue
software created by the City's Informational Technology Department called RecRev so that the
corresponding amounts can be recorded in the City's Financial System general ledger accounts.
Finally, the reconciled monies and documentation are delivered to the Central Cashier's Office for
processing and depositing into the City's SunTrust bank account.
Review of these general ledger accounts found that the tested facilities sorted alphabetically below
had the following revenues for the 10/01/09 through 08/31/10 audit period:
*
Tested Facility* 10/01/09-08/31/10
Revenues
FlaminQo Park Pool and Youth Center $185,674
Normandy Isle Park and Pool $57,031
North Shore Park Youth Center $212,497
Scott Rakow Youth Center Ice Rink $286,748
Scott Rakow Youth Center (Non Ice Rink) $241,428
Total Revenues $983,378
The listed facility revenue totals exclude athletics as they are not separated by facility in the City's general
ledger accounts and therefore could not be easily determined.
OVERALL OPINION
The Parks & Recreation Department has a difficult undertaking in trying to collect, safeguard and
monitor the monies received at different locations by different people for different activities. Inherent
problems arise from this level of decentralization that can be hard to overcome without proper
emphasis placed on automation, independent review/reconciliation by knowledgeable individuals,
segregation of duties, etc. Despite these challenges, tested monies were properly accounted for and
correctly reconciled with the entries into the City's Financial System.
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However, the following weaknesses were noted during testing which are in need of improvement:
• Manually prepared forms such as the Daily Pool Log, Pool Daily Report, Revenue Reports, etc.
contain repetitive information that can be either consolidated and/or automated.
• Customers that sign partial payment forms do not always adhere to its terms.
• Noted shortcomings in the RecWare Safari software are addressed as to number of user
licenses, on-line registration, etc.
• User fees established in Resolution No. 2003-25306 have not been reviewed during the past
seven years despite a provision tying these fees to increases in the Consumer Price Index
over the same period.
• Given the Scott Rakow Youth Center's ice rink existing front entrance layout, procedures need
strengthening to improve internal controls.
• Customers' remittance of a $53.50 non-refundable payment is sufficient to hold the date for a
Scott Rakow Youth Center ice rink party when other visited facilities require payment in full.
• Fees collected for background checks and drug tests' from Scott Rakow Youth Center's Ice
Rink instructors were not entered into the Department's RecWare Safari software.
• The Normandy Isle Park and Pool entrance is not properly configured so that customers are
directed to the Concession Attendant's window before entering. Also, annually registered
customers are continually granted free entry during the year after merely stating their name
and address which can be easily duplicated by non-residents.
• Customer's residency should be better documented in the maintained departmental files
before the approved lower rate is charged.
• The Normandy Isle Park and Pool's cameras need to be repositioned to better protect the
City's assets.
PURPOSE
The purpose of this audit is to determine whether tested facility revenues were correctly and fully
received in accordance with established prices; whether all tested files, records and software
systems maintained are complete, neatly organized and sufficient; whether received monies are
properly safeguarded, independently reconciled to the supporting records and are timely deposited
intact into the City's bank accounts; and whether all tested transactions are accurately recorded in
the City's Financial System.
SCOPE
1. Confirm that effective and detailed operating policies and procedures have been developed
and are being utilized for the proper control and accountability of all related transactions.
2. Confirm that proper segregation of duties and internal controls are followed to provide
reasonable assurance that all monies are accounted for.
3. Confirm that all tested files, records and software systems maintained are complete, neatly
organized, and sufficient and that access to key supporting documents is properly restricted to
authorized employees and permitted only in accordance with management policy.
4. Confirm that all tested collections were properly documented, correctly recorded, adequately
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safeguarded and deposited intact.
5. Confirm that the amounts collected from tested customers were appropriate for the enrolled
program. If such discounts as scholarships were awarded, was the necessary
documentation provided and appropriate to warrant the cost reduction.
6. Confirm that all tested monthly payments received were correctly recorded into the City's
Financial System.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding: Duplication of Departmental Forms and/or Computer Software Displaying Similar
Information
Internal Audit reviewed the various departmental forms completed by Parks & Recreation
Department personnel and determined that the listed documents contain similar information
that may be able to be either combined and/or automated:
a. The Daily Pool Log is used to track the number of people using the pool per session.
Meanwhile, the Pool Daily Report summarizes the number of people using the pool per
session, the weather conditions and the revenues collected. These reports are
interrelated and their data should be combined into one report. Furthermore, the
inclusion of all people entering the facility into RecWare Safari (Parks & Recreation
Department's maintained computer software) regardless of whether they remit money
may allow both of these manually prepared forms to be eliminated.
b. The Concession Attendants manually prepare three part sequentially numbered
control number forms to record customer payments. This form requires the preparer
to list such relevant data as the date and amount of the transaction, the payee's
name, the payment method, the purpose of the payment and a description of the
transaction. One copy is given to the customer as a receipt along with a RecWare
Safari receipt printout which lists similar information with copies placed in the
participant's individual file. These manually prepared control number forms are
basically only needed when the computers are malfunctioning or the infrequent times
where access to RecWare Safari is not possible due to heavy usage as the Parks &
Recreation Department currently has purchased only ten user licenses.
c. The manually prepared Revenue Report lists the individual receipts issued during that
given day and the totals by the applicable general ledger account numbers.
Meanwhile, the automated RecRev report reports similar but more detailed information
and is validated by the Central Cashier upon receipt of the monies.
d. The data entered into RecWare Safari cannot currently be uploaded directly into Eden
so designated staff members have to re-enter the same data into RecRev (the
revenue software created by the City's Informational Technology Department).
e. On-line customer registration is available but it is not used much by those desiring
enrollment. Even so, all the required forms applicable to the desired class or program
are not linked so that they can all be completed on-line. Instead, any additional
waivers or forms specific to that program have to be personally completed prior to
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dropping off the child on the first date along with proof of residency (if applicable).
Additionally, many of these forms contain repetitive information that may be able to be
consolidated.
Currently, an overwhelming majority of enrollees manually complete program
enrollment documents and then submit them at a Parks & Recreation Department
facility with payment. Afterwards, a departmental employee has to subsequently re-
enter the corresponding information into RecWare Safari which is a duplication of
work. Designated facilities could have computer kiosks during high volume times like
summer camp registration so that customers can register on-line at the facility
registration to help save staff time.
f. Individual files are presently created and maintained in the Administrative Offices for
each enrollee participating in offered classes and programs during that year. Included
in these files is the enrollee's admission paperwork, scholarship information, receipts
showing any payments, etc. As expected, the reviewed files were not always complete
or information was occasionally misfiled. Much of this information can be obtained
from RecWare Safari if the customer registers on-line thereby eliminating the need for
these labor intensive files.
Recommendation(s):
The above items should be reviewed by Parks & Recreation Department management to
determine which of these points are feasible and can be streamlined going forward. The
department should try and automate as much as possible so that staff have more time to
attend to other more important duties.
Management Response:
a. The "Pool Daily Report" and the "Daily Pool Log" will be combined to alleviate the
duplication in forms. This log is not required but is used as a tool for "checks and
balances" for the Concession Attendant and/or staff designated at the pool.
Recreation staff will meet in December to determine whether the combined log will
only be used in times where a computer is not readily available (such as computer
outages) or continue to use the form on a daily basis.
b. The "control numbers" are essential to our current daily operations. In the future, we
will evaluate this practice once the new Recreation Software is in place. Future
plans are to push on-line registration, so that daily payments are not so prevalent in
the Parks and Recreation Department.
c. The practice of manually creating revenue reports is no longer in use. Employees
were instructed to phase out manual revenue reports when they felt comfortable with
the new revenue system "RecRev". The Auditor encountered the previously required
form in this Audit. This is no longer an issue.
d. This will not be an issue once we convert to the new Recreation Software "Active".
e. Although with the proposed Recreation Software, forms will not be able to be
attached by the customer; staff will be able to manually attach (scan) the forms once
the customer submits them in person. With this new feature, the Department will
create new procedures regarding outdated forms. Forms may be valid until either
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rules/regulations have been updated and/or customer information has changed
instead of the current yearly process. These policies have not been established yet
and are currently on hold pending the installation of the new software.
f. The Department will continue to have manual files that include other required forms not
on the on-line template. With the new software, staff will be able to attach these
manual forms to the customer account.
2. Finding: Customers that sign partial payment forms do not always adhere to its terms
In addition to offering 50%, 75% and 100% scholarships to children whose household
income falls within designated ranges and other discounts, the Parks & Recreation
Department has been authorized to allow participants the option to make partial payments
for summer camps. The participant is required to make an initial pre-determined payment
and then to remit additional payments at specified dates in adherence to the signed payment
plan. Testing found that these additional payments were not always remitted prior to the
conclusion of the program but still the individual was permitted to attend.
Furthermore, one example was found whereby a Flamingo Park Summer Camp participant
with an outstanding payment plan balance was able to enroll in another subsequent program
contrary to departmental policy. Other occasions were found where these outstanding
balances continue to exist as the participant has not enrolled in any other programs.
Recommendation(s):
Although it is not the Parks & Recreation Department's intent to turn away a child based on
their inability to pay, payment plans require additional administrative time whose cost already is
not recovered by the City. As a result, participants should abide by the signed payment plans'
terms. In addition, departmental staff should always check RecWare Safari for any previous
outstanding balances and require the customer to pay this amount in full before enrolling them
in any new programs.
Management Response:
It has been the Division practice to collect past due payments prior to the commencement of
the following quarter (fall, winter, spring and/or summer). Staff is instructed to check Rec-
Ware for customer balances prior to a new registration; however, on heavy registration days,
sometimes staff is not able to log on or have a computer available for verifying prior
enrollment. Under these circumstances, staff will register the customer and call them once
enrollment in the system "flags" the customer with a previous balance. Additionally, it has not
been customary in these instances to impose late fees or penalties, but rather work with the
patron to resolve this or future circumstances. More specifically, the instance noted above
at Flamingo Park was a rare circumstance where the parent confided with the Facility
Manager to extend the partial payment plan. The customer has since paid off the balance in
full. It has been the Department's practice to allow Management "flexibility" on payment
plans
Internal Audit Observation:
The department should consider having written policies regarding the procedures utilized
above for payment plans.
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3. Finding: Noted RecWare Safari Software Deficiencies
The Parks & Recreation Department implemented the RecWare Safari software system in
2004. This software was initially received at no cost and was limited to five user licenses but
it has since been upgraded to ten licenses. Although it has many benefits and plans exist to
upgrade to new software, the following deficiencies were noted during the audit period:
a. The limited number of user licenses can result in unsuccessful attempts to access
the system, especially during peak times like summer camp registration.
b. Customers have the option of registering on-line for desired classes and programs
as mentioned in finding #1 e. If selected, RecWare Safari creates an additional
customer account so that all their information is not centralized which then requires
the Parks & Recreation Analyst to spend time merging all the accounts' information
back into one.
c. One customer rented Fairway Park's field for Sunday soccer games in August and
September 2010. He paid the charged amount of $1,982.40 in full at the Normandy
Isle Park and Pool which was correctly written on receipt number 9-2514 and entered
into RecWare Safari. However, RecWare Safari's subsequently produced Cash
Receipts Report shows the corresponding revenues as $1,472.40 resulting in an
unexplained $570.00 difference. The validated RecRev report also shows that the
entire $1,982.40 was correctly deposited. When investigated, Parks & Recreation
Analyst concluded that a partial payment plan was initially selected despite the
enterer's objections but still the reviewed account is showing no balance due.
Recommendation(s):
The new software system currently being considered by the Parks & Recreation Department to
replace RecWare Safari, should be an open architecture system that allows adding, swapping,
and upgrading components by the end user. In the interim, the implementation of the following
RecWare Safari changes should help expedite operations if deemed possible and/or feasible:
a. Until the new departmental software system is operational, Parks & Recreation
Department management should consider the feasibility of obtaining additional user
licenses or further restricting those having access to the system to reduce waiting
times.
b. Discussions should be held with the City's Information Technology Department and
RecWare Safari to determine how to remedy this shortcoming so that the customer's
information is centralized automatically under one account.
c. RecWare Safari should be contacted to further investigate the reasons for this $570.00
difference as it could lead to misappropriation possibilities for unscrupulous individuals
as all the records in this scenario would balance if the lesser $1,472.40 amount was
deposited.
Management Response:
a. In 2008, the Department increased the number of licenses from five to ten, which
has significantly decreased the number of instances that staff is "locked out" of the
system. At this time, it is not feasible to increase the number of licenses based on
our current budget. Plans for an upgrade to our software are already in place and
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this will eliminate this problem completely as the new software is not based on user
licenses, but on internet connectivity.
b. Although there is a function that can manually combine all duplicate customers in
one shot, this function is not "fool proof". For example, there are several instances
where parents name their children "Christy" and "Christine", Rec-Ware automatically
assumes that these two participants are the same person. This would be incorrect
and cannot be reversed. Therefore, manual "synchronization" by the Analyst (and
not the IT Department) is preferred by the Department.
c. Rec-Ware was contacted on 11/15/10 regarding the permit in question. It was
determined that the permit was entered wrong and should be voided and re-entered.
The Recreation Program Supervisor at Normandy Isle Park and Pool re-entered the
permit with the correct rates on 11/16/1 0.
4. Finding: User Fees for core programs established in City Resolution No. 2003-25306 have
not been reviewed for increases allowed by changes in the Consumer Price Index
One of the many responsibilities tasked to the City Commission is the setting of Parks &
Recreation Department core program fees (summer camp, after school, swim classes, etc.).
Once approved, they are included in the published bi-annual Recreation Review which also
can be found on the City's website. These fees have not been adjusted since the passage of
Resolution No. 2003-25306 as the City Commission has remained steadfast in keeping fees
low and affordable to its residents. Yet, the resolution states that "The Administration is
required to review user fees whenever the change in the Consumer Price Index (CPI) between
the latest CPI and the date of the CPI used for the last fee adjustment is 5% or greater."
Although the CPI has increased approximately by 18% between October 1, 2003 and August
31, 2010, the user fees have not been adjusted.
Additionally, Departmental management has the discretion to create new fees not covered in
Resolution No. 2003-25306. Examples include charging those receiving private ice skating
lessons an additional $10 to skate in the free skate period surrounding their lesson and skate
rental fees. These newly created fees are benchmarked with other municipalities and are
adjusted annually based on the results of internally completed profit and loss statements.
Review of thirty-one facilities provided individual Parks & Recreation Department programs'
profit and loss statements found that thirteen or 41.94% operated at a loss whereby the
collected revenues do not cover the associated costs.
Recommendation ( s):
A review of the core program fees addressed in Resolution No. 2003-25306 should be brought
to the City Administration to determine if the fees should be increased in accordance with
changes in the CPl.
Management Response:
The Parks and Recreation Department will review the fees as scheduled in the City
Resolution and discuss any fee adjustments with the City Manager's Office. If appropriate,
and a warranted CPI increase is recommended, the fee adjustments will be presented to the
City Commission. On a yearly basis, the Department will follow the resolution language and
review the CPI for possible fee adjustments and discussions with the City Manager's Office.
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5. Finding: Procedures Surrounding Entrance Fees Need Strengthening to Help Ensure that
all Revenues are Collected
The Scott Rakow Youth Center's ice rink front entrance located on Pinetree Drive creates
challenges in controlling entrance fees. Consequently, ice rink customers currently have to
walk through the facility to the southeast corner offices where monies are collected and
receipts given. Also, a Concession Attendant or Recreation Leader is stationed during
public open sessions near the Pinetree Drive front entrance to verbally inform customers
where to go and pay.
Furthermore, a vending machine is positioned in this front lobby but does not work because
of the lack of electricity. There is no corresponding signage on the machine and inquiries
found that it has not been removed from the premises despite several requests to the
vendor.
Given the aforementioned problems with the building layout, more importance is placed on
internal controls to ensure that all individuals inside have paid. Paying customers receive
pre-numbered colored wristbands to be worn as proof of payment and ice rink employees
were properly instructed to ensure that all customers have them displayed. Although a
sound internal control, management did not monitor the wristbands' receipt and issuance to
ensure that all were accounted for.
Finally, review of 05/29/10 and 05/30/1 O's private lessons found two instances whereby the
customer's name was not included on the RecWare Safari receipt. Instead, the Concession
Attendant used the default "Drop-In Customer #1" name in its place which could hinder the
subsequent reconciliation with the instructor when determining their 75% payment of all
applicable lesson fees.
Recommendation(s):
Vending company should be contacted to remove the inoperable vending machine from the ice
rink's front lobby as soon as possible. The wristbands should be better controlled to ensure
that all open public session entrance monies received were recorded. One option is to give the
Concession Attendant a pre-determined number of wristbands at the beginning of each public
session and then reconcile any missing at the conclusion to the RecWare Safari entries to help
ensure that all are accounted for.
Finally, the names of those individuals receiving private lessons should always be entered into
RecWare Safari by the Concession Attendants.
Management Response:
The Parks and Recreation Department agrees that it is appropriate to collect fees and
service the customer upon entrance to the ice rink, but current physical constraints make
this a challenge. Accordingly, due to this, the Concession Attendant and/or Recreation
Leader stationed at the front entrance is needed, (was previously stationed on Friday nights
for crowd control also, and now during private lesson time only).
The vending machines have since been relocated to the patio and are in working condition.
In the ice rink, wristbands are used for all admission-based programs such as public sessions,
freestyle sessions, and private lessons as a visual tool. The Department is considering
purchasing new software as a part of Active that supports the printing of badges that people
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will wear on their clothes in order to eliminate the use of wristbands. Ideally, badges would
have the date and time of purchase, receipt number and activity name.
The name of a private lesson customer, (although the name may not be entered immediately
upon the customers 1st visit to the Ice Rink) are normally entered when the customers take a
lesson. It is only on the customer's 1st visit that the name is entered subsequently in order to
expedite the customer's experience at the rink by allowing the lesson to continue while we
enter the info. Once we integrate to the new Active software package, the intent is to
implement a badge/identification system to help with this recommendation and other findings.
6. Finding: Ice Rink Party Rentals Oates Are Reserved upon the Remittance of a $53.50 Non-
Refundable Deposit with No Additional Monies Due for Late Cancellations
If the date is available, customers can reserve the entire Scott Rakow Youth Center ice rink
for private parties in exchange for a $53.50 non-refundable deposit with the balance paid at
the conclusion of the party. The actual cost starts at $250 with non-residents also having to
pay an additional $5.00 per person (the price for non-residents has recently been changed
to a $400 flat fee). Additional fees may be charged based on the customer's requests.
Rental dates can be in high demand as only three dates are available in a given week. Yet,
the City would only receive $53.50 if an ice rink party rental was cancelled and could not be
replaced with another. Inquiries at other Parks & Recreation Department facilities found that
they collect the full price from the customer before the rental is confirmed and staff is
assigned.
Recommendation(s):
Internal Audit recommends that Scott Rakow Youth Center ice rink party rental reservation
deposit be increased from $53.50 to the full charge of $250 for residents and $400 for non-
residents to help cover any potential lost revenues and/or offset staffing charges. This
deposit can subsequently be applied toward the actual cost of the party as determined with
the customer at the end of the party rental.
Management Response:
The Parks and Recreation Department has since established a uniformed policy for all
rentals at all sites. We currently charge a non-refundable staffing fee of $100 for all rentals
in order to hold a rental. This will cover staffing costs in case of a cancellation.
7. Finding: Fees Collected for Background Checks and Drug Tests' from Ice Rink Instructors
were not Entered into the Department's RecWare Safari Software
The Scott Rakow Youth Center Ice rink currently employs eleven independent contractors
who give private lessons and hockey classes. As part of their employment process, these
individuals must remit $68.25 for background checks and drug tests. While sampled
payments were subsequently found to have been properly deposited with the City's Central
Cashier and correctly entered into the RecRev interface system, they were not processed
through the Department's RecWare Safari software thereby causing undocumented
differences between the two daily receipt amounts.
After discussions with the Ice Rink Manager, it was determined that any monies collected for
background checks and drug tests would now be entered into RecWare Safari so that the
daily proceeds equal the amounts entered into RecRev and the City's Financial System
thereby eliminating any future confusion or need to document the reasons for the
differences.
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Recommendation(s):
No further action necessary.
Management Response:
This has since been corrected; all background fees are now inputted into RecWare Safari.
8. Finding: Normandy Isle Pool Front Entrance Is Not Concession Attendant Friendly and Picture
Identification is Not Subsequently Checked Before Free Entry is Granted
Currently, there is no means (signage, metal bars, buzzers, etc.) to guide customers to the
front window staffed by the Concession Attendants at the Normandy Isle Pool. Consequently,
any non-City residents who are required to pay prior to gaining admittance have the ability to
walk into the facility. If the Concession Attendant is busy doing other tasks and does not notice
them walking in, then they could enter for free. If they do notice but can't get the customer's
attention beforehand, then they have to leave their post and address them inside the pool area.
Additionally, City residents are able to enter the Normandy Isle and Flamingo Park Pools at no
charge upon initially showing proof of residency and picture identification. Once registered,
residents are able to gain free admittance by merely stating their name and address through
the end of the next summer until the process is repeated for the next year. This simplistic
process works well when there is no charge due but it also can enable non-City residents to
also continually enter at no charge under another's registered name by just repeating this
person's name and address correctly.
Recommendation( s):
The front entrance to the Normandy Isle Pool should be reconfigured so that customers have
to walk by and visit the Concession Attendants prior to gaining admittance to the facility.
Possible options that should be considered include adding signage, placing metal bars that
guide the customer to the window, having the Concession Attendant press a buzzer to allow
the customer entry, etc.
Although the present process is simplistic and pool entrance fees are reasonably priced for
non-City residents, Internal Audit believes that the participant enrollment card should be
provided before free admittance is provided. If not present, then a picture identification card
(drivers' license, green card, student card, etc.) should be substituted and compared to the log
maintained before free admittance is garnered.
Management Response:
The Parks and Recreation Department will now require patrons to show a valid Florida
ID/Iicense or picture ID to confirm residency status before pool admittance is granted.
Residency logs will no longer be kept as proof of residency. In addition, the Department will
work with Property Management to determine a course of action for possible installation of
an electronic buzzer on the turn-style door plus, add better signage for patron visibility.
9. Finding: Proof of Customers' Residency Documentation Was Not Always Noted by
Departmental Reviewers
City residents and employees pay a lesser rate than non-residents to participate in the same
activities and programs. They are required to show various forms of identification and/or
proof of residence (participant enrollment card, voter's registration card, passport, driver's
license, utility bill, picture identification, etc.) to receive these lower rates. This supporting
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June 10, 2011
documentation is typically not maintained in the customer files except for those individuals
funded by the Children's Trust grant monies at the North Shore Park Youth Center.
However, there were several instances noted at other facilities whereby the lower resident
rate was given but nothing was indicated on the registration forms by Parks & Recreation
Department staff. On a positive note, subsequent tests of enrollees found that those
deemed City residents were consistently charged the correct lesser rates while conversely
higher rates were continually charged to non-City residents.
Finally, review of one current year file at the North Shore Park Youth Center found that the
corresponding Fitness Center enrollee received the resident rate despite the fact that his
photocopied drivers' license showed a Miami address. The questioned Recreation Program
Supervisor thought that more detailed information would be in the enrollee's prior year file
but it could not be located prior to the conclusion of this audit.
Recommendation(s):
Parks & Recreation Department staff should always indicate on the registration forms whether
the individual is a resident and what documentation was reviewed and approved. Copies of
residency documentation (program enrollment cards, drivers' licenses, etc.) should continue to
be attached to properly support the lesser user rate charged on the program participation
forms for all Children's Trust participants. Any information copied in the file that contradicts the
individual's residency status should be noted to avoid possible future confusion.
Management Response:
The Parks and Recreation Department continues to use the "For Office Use Only" space to
note proof of residency shown. Once a year, registration staff meets and reviews the
Department's Policies and Procedures regarding participant registration. Information
includes guidelines for proof of residency, scholarship procedures, etc. However, the
Department will not keep/make copies of proof of residency unless needed by the Children's
Trust Grant and/or a scholarship is received eliminating the need for labor-intensive files.
10. Finding: Normandy Isle Park and Pool Cameras are in Need of Repositioning
There are currently five functioning cameras at the Normandy Isle Park and Pool that are
affixed primarily on the facility's entrances and exits. However, Internal Audit's review found
that the front window where the Concessions Attendants receive monies was not one of the
areas recorded. Additionally, the one camera that records the two pools' daily activities is
stretched to the limit due to the distance involved so it may not provide good evidence in the
event of an accident, vandalism, etc.
Recommendation( s):
The Parks & Recreation Department should reposition the cameras at Normandy Isle Park &
Pool to better protect the City's assets.
Management Response:
An additional camera will be placed in the front area of the Normandy Isle front office where
monies are collected.
Page 12 of 13
Internal Audit Report
Parks & Recreation Department Cashiering Function and Revenue Audit
June 10, 2011
EXIT CONFERENCE
An exit conference was held on November 17, 2010 to discuss the audit report and to solicit
management responses noted above. Attendees were Assistant Parks & Recreation Director Julio
Magrisso; Parks & Recreation Analyst Theresa Buigas; Internal Auditor James Sutter and Senior
Auditor Mark Coolidge. Management responses were received on November 30, 2010 and were
incorporated into this audit report. All were in agreement with the contents of this report.
JJS:MC:mc:CD:cd
F:lobpii$AUDIINTERNAL AUDIT FILESIDOC09-10\REPORTS-FINAL\PARKS & RECREATION CASHIERING AND REVENUES.doc
(audit performed by Mark D. Coolidge, Senior Auditor and Carmin Dufour, Field Agent)
cc: Hilda Fernandez, Assistance City Manager
Kevin Smith, Parks & Recreation Director
Julio Magrisso, Assistant Director-Parks & Recreation
Patricia Walker, Chief Financial Officer
Page 13 of 13