Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

Agenda — City of Fort Walton Beach Special Meeting of the City Council of Fort Walton Beach Tuesday, March 19, 2013 5: 30 PM 107 Miracle Strip Parkway Fort Walton acarh. FL 32548 CALL TO ORDER 5: 30 PM Meeting will be called to order on March 19, 2013 at Council Chamber, 107 Miracle Strip Parkway, Fort Walton Beach, FL. 2. PLEDGE OF ALLEGIANCE 3. ACTION --DIRECTION --DISCUSSION 3. 1. Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2012 Synopsis: ( Finance Director) Angela Balent, with Warren Averett O' Sullivan Creel, will present the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2012 for City Council approval and acceptance. A r recnWLNTS: 3 IQoI ( ir, d —i—i Annual F1 nunciul Rcpon 2012 ( PDF) I a SA S 114 kud h Cancl ueion 1PD11 4. ADJOURNMENT Quasi -Judicial — denotes that the item must be conducted as a quasi- judicial hearing in accordance with Florida Statutes. Action —Direction —Discussion items may be acted upon by the City Council by either a motion with a vote in accordance with Robert' s Rules of Order, or by a consensus of the Council. Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. ( Chapter 286. 01105, F. S.) Page I P,, nted 317311013 City Council afFort Walton Beach  Agenda March l9, 2013 Special Meeting The City of Fort Walton Beach adheres to the Americans with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 833 -9509 to make a request. For Hearing Impaired dial the City Hall TDD # 850 -833- 9925 or 1- 800 -995 -8771 ( TDD) or 1- 800 -955 -8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service. All City of Fort Walton Beach council and board meetings are recorded. The video can be accessed at www.fwb.org. Page 2 Printed 3l] 312013 City C, v,,, d off ,t Walton Beach  3. 1 City Council of Fort Walton Beach FINANCE MEMORANDUM To: Michael D. Beedie, City Manager From: Brandy Ferris, Finance Director Date: March 19, 2013 Subject: FY 2012 Comprehensive Annual Financial Report 1. BACKGROUND: 1. 1. Chapter 218. 32( 1)( d) of the Florida Statutes requires 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 Warren Averett O' Sullivan Creel 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, 2012, is now complete and is submitted herewith. 2. 2. The results of the annual audit for the year ended September 30, 2012, 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 contains four comments: ( 1) related to the status and future of the City' s three current Defined Benefit Pension Plans; ( 2) related to the cash position of the City' s Golf Fund; ( 3) encouraging the implementation of an Anti -Fraud Detection Program; and ( 4) encouraging formal documentation related to Enterprise Risk Management. 2. 4. Management' s responses to the auditor' s comments are as follows: 2.4. 1. 2012- MC -01: Defined Benefit Pension Plans The City is in the process of reviewing the current benefit structure of each of the three defined benefit plans and has enlisted the assistance of plan actuaries, boards, and legal counsel to assist management in this process. 2. 4.2. 2012- MC -02: Golf Enterprise Fund The City recognizes that the Golf Fund continues to struggle. Over the past few years, steps have been taken to improve cash flow by increasing Page 1 of 3  F- 3-1 revenues and decreasing expenses. The loss in the current year was primarily due to the condition of the course, as an improper chemical application severely affected this. The condition of the course has improved significantly over the last several months. Management will continue to monitor the Fund and will make a decision during the FY 2013 -14 budget cycle as to any supplemental funding needs of the Fund. 2. 4. 3. 2012- MC -03: Fraud and Ethics While there have been no reported incidents of ethics or fraud violations at the City of Fort Walton Beach, the Senior Management team is being proactive in reviewing all policies and procedures and drafting a new Code of Ethics for employees. As part of the City' s Administrative Policy overhaul, it is imperative that the City adopt a new Employee Code of Ethics and address the issue of reporting and addressing fraud. The City will research the various anti -fraud programs throughout the State and develop a program that is customized to the City of Fort Walton Beach. 2. 4. 4. 2012- MC -04: Enterprise Risk Management The City is currently proactive in assessing the City' s resources and adopting plans to address continuity of operations in times of emergencies or crises. The City currently is reviewing and revising a Hurricane Response Plan and a Continuity of Operations Plan to update them to current standards. The City is also evaluating the requirements and costs for an overall Facilities Assessment Plan due to aging facilities. As part of the FY 2013 -14 budget cycle, Staff is developing a comprehensive Fleet and IT assessment to address five- and ten -year replacement programs to increase the reliability and safety of these items in the workforce. While these types of assessments take time and funding, there are internal Staff who are experienced in conducting facility assessments and vulnerability assessments of City resources. 3. FINANCIAL INFORMATION: 3. 1. There is no financial impact related to the acceptance of this report. 4. RECOMMENDATION: 4. 1. Staff respectfully requests City Council approval and acceptance of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2012 as presented by the City' s auditors, Warren Averett O' Sullivan Creel. ATTACHMENTS: 3 - 19 - 13 Comprehensive Annual Financial Report 2012 ( PDF) FWB SAS 114 Audit Conclusion ( PDF) SIGNATURE BLOCK: Brandy Ferris Completed 03/ 13/ 201311: 01 AM Carole Jones Completed 03/ 13/ 2013 3: 05 PM Page 2 of 3 Packet Pg. 4  3. 1 City Manager Completed 03/ 13/ 2013 3: 44 PM City Council Pending Page 3 of 3 Packer Pg,. b.. Comprehensive Annual Financia Report 0ad N I YLL 1 City of Fort Walton Beach, FL With Compliance Matters and Responses Fiscal Year Ended September 30, 2012  3. 1. a City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Fiscal Year Ended September 30, 2012 Prepared by The Finance Department City of Fort Walton Beach 107 Miracle Strip Parkway Fort Walton Beach, Florida 32548 W WW. FWB. ORG Packet P97  I 3. 1. a CITY OF FORT WALTON BEACH, FL CITY OFFICIALS CITY COUNCIL Left to right (standing): Bobby Griggs ( Seat 1), joyce gossom ( Seat 2), Bobby Nabors ( Seat 5), and Dick Rynearson ( Seat 7). Left to right (seated): Dennis Reeves ( Seat 3), Mayor Mike Anderson, Trey Goodwin ( Seat 4), and C. H. ` Bull' Rigdon ( Seat 6). CITY MANAGER FINANCE DIRECTOR Michael D. Beedie Brandy Ferris CITY CLERK CITY ATTORNEY Helen Spencer Hayward Dykes  3. t. a I. INTRODUCTORY SECTION TABLE OF CONTENTS LETTER OF TRANSMITTAL GOVERNMENT FINANCE OFFICERS CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING ORGANIZATIONAL CHART  F31.F31. City of Fort Walton Beach, Florida