Independent Accountant Report on Pension Board Expenditures by Board Members - 2011 by James Moore & Co. CITY OF EDGEWATER,FLORIDA
INDEPENDENT ACCOUNTANTS' REPORT
ON APPLYING
AGREED-UPON PROCEDURES
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INDEPENDENT ACCOUNTANTS' REPORT
ON APPLYING AGREED-UPON PROCEDURES
To the Finance Director, Management, and Pension Trust Fund's
Board of Directors of the City of Edgewater,Florida:
We have performed the procedures enumerated below, which were agreed to by City of Edgewater,
Florida, solely to assist you with respect to the administrative expenses of the general employees', Police
officers' and firefighters' pension trusts funds for the year ended September 30, 2010. The pension trust
fund's board of directors and management of the City of Edgewater, Florida are responsible for the
administrative expenses of the pension trusts funds. This agreed-upon procedures engagement was
conducted in accordance with attestation standards established by the American Institute of Certified
Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties
specified in the report. Consequently, we make no representation regarding the sufficiency of the
procedures described below either for the purpose for which this report has been requested or for any
other purpose.
Our procedures, findings and recommendations are listed below:
1. Compare the amount, payee or vendor, date, and description to the vendor's invoice, as
appropriate.
No findings noted for general employees',police officers', and firefighters'
2. Determine that the transaction was properly recorded as to account and fund category.
a) Per review of the related credit card statements, we noted several members of the Police
Pension Board attended multiple conferences during the Plan year, often attending the same
conference at the same time. Per discussion with management of the City, attendance by one
or two Board members to one conference annually would be considered sufficient for
purposes of governance of the Plan.
Conference Location Dates Attendees Total Cost
FFPTA Bonita Springs,FL 10/4/09 - 10/7/09 Conroy, Blazi, Leaf $ 2,223
NAPO Las Vegas,NV 2/7/10 - 2/ll/10 Conroy, Leaf 4,201
FFPTA Naples,FL 6/27/10 - 6/30/10 Blazi 1,623
FFPTA Palm Beach,FL 9/26/10 - 9/29/10 Conroy, Blazi, Leaf 3,366
$ 11,413
b) A rental car was obtained by Conroy on 4/30/10 and returned the same day, at a cost of$380.
We are not able to determine the purpose of this transaction based on the evidence obtained.
Per review of his timecard for 4/30/10, Conroy recorded 8.4 hours to criminal investigations
and 6 hours to patrol.
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c) Two of the above conference attendees, Conroy and Blazi, are also employees of the City.
Per review of their timecards for the periods of attendance, we noted the following:
• Conroy recorded sick leave of 8.4 hours per day 10/5/09-10/7/09. No time was
recorded for 10/4/09, which was a Sunday.
• Conroy recorded 8.4 hours per day to "NAPO Conference" 2/8/10-2/ll/10. No time
was recorded for 2/7/10, which was a Sunday.
• Conroy recorded vacation time of 12 hours per day 9/27/10-9/28/10. No time was
recorded for 9/26/10, which was a Sunday, or 9/29/10, a Wednesday.
• Blazi recorded 12 hours per day to "Pension School" 10/4/09-10/6/09. No time was
recorded for 10/7/09, a Wednesday.
• Blazi recorded 8.4 hours per day to "Training Conference" 6/28/10-6/30/10. No time
was recorded for 6/27/10,which was a Sunday.
• Blazi recorded 8.4 hours per day of personal leave time 9/27/10-9/28/10 and 8.4
hours to criminal investigations 9/29/10. No time was recorded for 9/26/10, which
was a Sunday.
d) No findings noted for general employees' and firefighters'.
3. Determine the transaction was properly authorized and in compliance with legal requirements and
established policies and procedures.
We noted multiple expenditures made by the Police Pension Plan were for payment of an
American Express card that was used to pay for travel and registration fees related to attendance
at the above noted conferences. We noted the City's purchasing policy (Ordinance 2009R-18)
does not require travel expense reports to be submitted. Furthermore, the policy allows for a
"field purchase order" (FPO) for items up to $2,500, including travel expense reimbursements
and competitive quotes are not required at this level. According to City management, FPO's do
not have to be routed through the Finance Department. No findings noted for general employees'
and police officers'. We recommend travel expense reports be obtained with corresponding
receipts for all travel expenses.
4. Determine that the transaction was approved by the pension board and documented in the minutes.
a) Per review of the documentation provided to us, we noted approvals of expenditures in the
Firefighter's Pension Plan are not documented in the minutes.
b) No findings noted for general employees' and police officers'.
We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of
an opinion on the administrative expenses of the pension trusts funds. 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.
Pursuant to Chapter ll9, Florida Statutes, this management letter is a public record and its distribution is
not limited. Auditing standards generally accepted in the United States of America require us to indicate
that this management letter is intended solely for the information and use of the Finance Director,
Management, and Pension Trust Fund Board of Directors of the City of Edgewater, Florida and is not
intended to be and should not be used by anyone other than these specified parties.
Daytona Beach,Florida �� �� � ��
February 17, 20ll
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