Audit Report #06-07-1 Final

April 10, 2007 To: Mayor Jim Naugle Vice-Mayor Cindi Hutchinson Commissioner Christine Teel Commissioner Charlotte E. Rodstrom issioner Carlton B. Moore Re: A review of the budget process for the Fiscal Year 2006-2007 Operating Budget Report #06/07-1 Attached is Report #06/07-1. This report summarizes our review of established practices, procedures and internal controls over the budget process and assesses the projections of material revenues and expenditures in the FY06/07 Annual Operating Budget. The review was performed pursuant to the City Auditor’s authority set forth in Section 4.14 of the City Charter. We acknowledge the efforts made by the Director of the Office of Management and Budget, as well as Budget Division staff, in working toward improving the financial stability of the City of Fort Lauderdale. The City has embraced sound best practices in the establishment of a fully funded reserve and in eliminating the deficit in the Self-Insurance Fund. These measures have helped the City improve its standing in the eyes of the investment community, resulting in an upgrade in the debt rating and reduction in future interest costs. As a follow-up to our recommendations, we ask that the Director of the Office of Management and Budget provide a status report to the City Auditor’s Office in six months, detailing steps taken to address the report’s recommendations. In a separate memo to the ...