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

5 -year replacement plans for capital equipment are also developed and approved by Management each year during the annual budget process Relevant Financial Policies The City has several financial policies that are utilized during daily operations, as well as during the budget and financial planning processes. The City utilizes fund balance reserves only for one -time non -recurring expenditures. In addition, the Citymaintains its fund balance level in the General Fund at 30% of fund expenditures —this policy helps to ensure that the City has sufficient funding in place for emergency and disaster relief. Major Initiatives The City' s financial policies, as well as other indicators, were taken into account when adopting the City' s budget for fiscal year 2013. The City s total budget for fiscal year 2013 totals $33. 5 million, which is 4.4 million less than the fiscal year 2012 approved budget, due in part to one -time capital improvement projects budgeted in previous in the Utilities fund. Projected declines in interest earnings and property tax revenue account for much of the revenue decline. The 2013 budget allocates $ 16. 8 million, a 3. 4 % decline as compared to the fiscal year 2012 budget, to the General Fund, $ 14. 4 million to the Enterprise funds, and $ 2. 3 million to other funds. vii  3. t.a For the fiscal year 2013 budget, the ad valorem rate was maintained at 4.5383 mills. A 3% increase in water and sewer rates is included in the budget; no other signiticant changes to the City' s various rate and fees are included in the fiscal year 2013 budget. Personnel expenses comprise 51. 9% of the Citv' s budget. the City' s fiscal year 21113 budget remains relatively stable in this category, at 289. 95 full time equivalent positions. AwAKDS AND ACKNOnv LEDGENIEN' 1' S Awards The Government Finance Officers Association ofthe United States and Canada ( GFOA) awarded a C crtiticate of Achievement for Excellence in Financial Reporting to the City of Fort Walton Beach for its Comprehensive Annual Financial Report for the fiscal year ended September 30. 201 1. This was the twenry -sixth consecutive year that the City received this prestigious award. In order to be awarded a Certificate of Achievement, the (' try most publish an easily readable and efficiently organized Comprehensive Annual Financial Report satisfying both GAAP and applicable legal requirements. A Certificate of Achievement is valid fora period ofone year only. We bclicve our current report continues to meet the Certificate of Achievement Program requirements and we are submitting it to the GFOA to dctemninc its eligibility for another certificate. In addition, the government also received the GFOA' s Distinguished Budget Presentation Award for its annual budget dated October I, 2012. This was the seventeenth consecutive year that the City received this prestigious award. In order to qualify for the Distinguished Budget Piesenmtion Award, the City' s budget document was judged proficient in several categories, including us a policy document, a financial plan, an operations guide, and a commintieations device. Acknowledgments The preparation of this report would not have been possible without the efficient and dedi: ated services of the entire staff of the Finance Department. We would like to express om- apprecial ion to all members of the Department who assisted and contributed to the preparation of this report. We would also like to thank the Mayor and City Council for their untuiling support for innnualning the highest standards of professionalism in the management of the City of Fort Walton Beach s finances and for their attention in conducting the financial operations o I the Ciry in a rupousible and progressive manner. Appreciation is also expressed to the accounting finn oI Warren Averett O' Sullivan Gcel 11 P for their continued assistance and professionalism- Respectfully submitted, Michael D. Beedie Brandy L. Ferris Finance Direeton City Manager vlll cRasli : 18  3. 1. a M THIS PAGE INTENTIONALLY LEFT BLANK.) Packet "  F- 3- 1. 7 Certificate of Achievement for Excellence in Financial Reporting Pre Mrd w City of Fort Walton Beach Florida F. x its C..rnrpctx•Ini c Annu 7 Finawal Rrpm iav the Fscal Ycm Fn,w Sgandz: Yi. '_01 I A mrt: a nl Atluemrraen lol kJ[ llmcc m Yvwni Nclmrtag 6 prttawM Cy 4e Grt: mvem Flnut: c iNfw r AtKCiceiem ><CC 1Iidi6Y af[ c5 vv1 ± iuJvm Cmrwnl nnib mJ ryl+lietmrlanr miircmeal m m< M1ax cempm' tnv m anrrvalfiaarntl rcp, n i:.' AFNZi e.'tie e ih: hi IKVv salullNSm DP \ Y tWlltil; ant nr wlai lepvlthg. ix Packet Pgx  3. 1. a THIS PAGE INTENTIONALLY LEFT BLANK.)  F- 3 .1. a City of Fort Walton Beach Organizational Chart Financial Fire Policc Rc- reetion AJn nislmtivc n Fngi nng and Tres UNIT Servaes Scrvlcc Smires Servlrer Seraiics PackPack  3. 1. a THIS PAGE INTENTIONALLY LEFT BLANK.) Packet Pg. 23  3. 1. a II. FINANCIAL SECTION INDEPENDENT AUDITOR' S REPORT MANAGEMENT' S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS GOVERNMENT -WIDE. FINANCIAL STATE ' ENTS FUND FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS REQUIRED SUPPLENIENTARY INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES P :` 24  3. 1. 8 WARREN AVERETT O'SULUVAN CREEL _ A Business of Warren Averett, LLC I CPAs & ConsultanTS r0 4 1 y Soita30 ^. K 14- IS 0m LL F1 _ www. w are naeerettcom c et Honorable Mayor and City Council Members City effort Walton Beach, Florida INDEPENDENT AUDITOR' S REPORT SNcm vnE We have audited the accompanying financial statements of the governmental activities, the business -type activities, c+ each major fund, and the aggregate remaining fund information of the City of Fort Walton Beach, Florida, as of and for the year ended September 30, 2012, which collectively comprise the City 's basic financial statements as r°,r listed in the table of contents. These financial statements are the responsibility of LL the City of Fort Walton Beach, Florida's management. Our responsibility is to express opinions on these financial statements based on our audit. n We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation- We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects. the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Fort Walton Beach, Florida, as of September 30, 2012, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund and Community Redevelopment Agency ( special revenue fund) for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated March 5, 2013, on our consideration of the City of Fort Walton Beach. Florida's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.