Fort Walton Beach Council agenda — 03-22-11 regular — reading text

Completed 03/ 10/ 2011 3: 05 PM Carole Jones Completed 03/ 10/ 2011 3: 05 PM Completed 03/ 14/ 2011 11: 39 AM City Manager City Council Pending Packet Pg. 7  City Council of Fort Walton Beach FINANCE MEMORANDUM To: Robert T. Mearns, City Manager From: Brandy Wunker, Finance Director Date: March 22, 2011 Subject: Presentation of FY 2009 -10 CAFR 1. BACKGROUND: 1. 1. Florida Statutes Chapter 218. 32( 1)( d) require each local government entity to complete an audit report within 12 months after the end of the fiscal year. 1. 2. The City engaged the auditing firm of O' Sullivan Creel LLP to perform an independent audit of the City' s financial records and to assist City staff with preparation of the report. 1. 3. The published report is known as the Comprehensive Annual Financial Report CAFR). 2. DISCUSSION: 2. 1. The Comprehensive Annual Financial Report ( CAFR) of the City of Fort Walton Beach for the year ended September 30, 2010, is now complete and is submitted herewith. 2. 2. The results of the annual audit for the year ended September 30, 2010, were favorable. The independent auditor' s report expresses an unqualified opinion on the City' s financial statements. Likewise, the auditor indicates no instances of material weakness or reportable conditions. 2. 3. The auditor' s management letter ( page 133) contained two comments: ( 1) for improvement regarding the Golf Fund' s cash flow deficits and deficit unrestricted net assets, and ( 2) for improvement on Information Technology procedures for computer backups, due to a recent server crash that resulted in lost data at the Golf Club. Management' s responses are as follows: 1) GolfEnterprise Fund deficit unrestricted net assets and cash flow In FY 2010 -11, the City' s General Fund loaned the Golf Fund $ 2. 7M for the 2. 3. 1. defeasance of the Capital Improvement Revenue Bonds, Series A and B. In addition, the final payment on the 1998 Refunding Bonds, which funded certain golf course improvements, will be made. 2. 3. 2. These two items, should improve net free cash flow. Management will continue to monitor the Golf Fund and make future adjustments as necessary. 2) Information Technology Controls 2. 3. 3. The City has implemented procedures to ensure that computer backups are protected and performed. 2. 4. Mrs. Angela Balent and Mr. Joseph P. Henderson of O' Sullivan Creel LLP will present pertinent items from the CAFR, and respond to related questions, at the W, City Council of Fort Walton Beach FINANCE MEMORANDUM To: Robert T. Meares, City Manager From: Brandy Wunker, Finance Director Date: March 22, 2011 Subject: Presentation of FY 2009 -10 CAFR regular City Council meeting on March 22, 201 L 3. FINANCIAL INFORMATION 3. 1. There is no financial impact related to the acceptance of the Report. 4. RECOMMENDATION 4. 1. Staff respectfully requests City Council accept, by motion, the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2010. ATTACHMENTS: 2010 FWB Final ( PDF) SIGNATURE BLOCK: Brandy Wunker Completed 03/ 08/ 20112: 43 PM Carole Jones Completed 03/ 10/ 2011 10: 25 AM Completed 03/ 15/ 2011 12: 30 PM City Manager City Council Pending  Comprehensive Annual Financial Report V.- C* r CITY OF FORT WALTON BEACH, FLORIDA With Compliance Matters and Responses Fiscal Year Ended September 309 2010 City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Fiscal Year Ended September 30, 2010 LL m LL O P O N i.i C d E t rVR Q Prepared by The Finance Department City of Fort Walton Beach 107 Miracle Strip Parkway Fort Walton Beach, Florida 32548 WWW.FWB.ORG  62.a CITY OF FORT WALTON BEACH, FLORIDA CITY OFFICIALS CITY COUNCIL U. a 0 0 0 N LL Mike Anderson Mike Holmes Boyce gossom Dennis Reeves 0 Mayor Seat 1 Seat 2 Seat 3 0 Y Id d L a 0 R u- m UL 0 0 N C.H. `Bull' Rigdon Dick Rynearson Mike Minich Bobby Nabors Seat 4 Seat 5 Seat 6 Seat 7 E r a CITY MANAGER FINANCE DIRECTOR Robert T. Mearns Brandy Wunker CITY CLERK CITY ATTORNEY Helen Spencer Hayward Dykes, Jr.  a U 0 T I. INTRODUCTORY SECTION as N w O TABLE OF CONTENTS O LETTER OF TRANSMITTAL d a GOVERNMENT FINANCE OFFICERS co CERTIFICATE OF ACHIEVEMENT FOR LL EXCELLENCE IN FINANCIAL REPORTING m LL ORGANIZATIONAL CHART Cl 0 N d t VR  City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30, 2010 Page Exhibit TITLE PAGE CITY OFFICIALS I. INTRODUCTORY SECTION i Table of Contents itit v_ v_ Letter of Transmittal iv aa City Manager and Finance Director UU ix 00 GFOA Certificate of Achievement Organizational Chart x TIo>0o>T0I 0N0N II. FINANCIAL SECTION u_u_ Independent Auditor' s Report I w0w0 cc 00 3 A. MANAGEMENT' S DISCUSSION AND ANALYSIS aa mccm B. BASIC FINANCIAL STATEMENTS