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

ONYLL We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit' s auditors. however, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. This information is intended solely for the use of the Council and management of the City of Fort Walton Beach, Florida and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Gt/avruc March 5, 2013 Packet Pg,;.1,69  The City of Fort Walton Beach, Florida 2012 Audit Results Presentation Presented by Warren Averett, LLC March 19, 2013 iI Contents a EngagementStatus ............................................................................................................................... .............................. 3 RequiredCommunications ................................................................................................................ .............................. 7 ClientRepresentation Letter ............................................................................................................ .............................. ME I Engagement Status The following documents our status with respect to the audit of the annual financial statements of the City of Fort Walton Beach, Florida ( " the City") as of and for the year ending September 30, 2012: Financial Statement Audit We issued an unqualified opinion on the financial statement of the City of Fort Walton Beach, Florida for the year ended September 30, 2012. We did not identify any material weaknesses or material noncompliance based on our audit performed in accordance with government auditing standards for the year ended September 30, 2012. P. ge 12 Required Communications Professional standards require the auditor to communicate certain matters to those charged with governance. Below we summarize these communications as they apply to the City: Accounting Policies Management is responsible for the selection We believe the accounting policies of the and use of appropriate accounting policies. City are neutral, consistent, clear, and are In accordance with the terms of our consistent with industry practice and are in agreement to provide audit services, we will accordance with generally accepted advise management about the accounting principles. appropriateness of accounting policies and We noted no transactions entered into by their application the City for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting Estimates Accounting estimates are an integral part of The most sensitive estimates to the financial the financial statements and are based on statements are: management' s knowledge and experience The investment in Florida Small Business about past and current events and Administration Pooled Cash Fund B. The assumptions about future events. Certain funds in the account are currently frozen by accounting estimates are particularly the State and are liquidated periodically sensitive because of their significance to the when the underlying investments of the financial statements and because of the pool mature. Pool B assets consist of those possibility that future events affecting them that are either in default on a payment, may differ significantly from those have paid more slowly than expected, expected. and / or have significant credit risk. The balance of shares owned by the City in the Pool as of September 30, 2012 was 217, 954. r.ge13  Audit Adjustments Professional standards require us to There were no proposed audit accumulate all known and likely adjustments noted. misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Disagreements with Management For purposes of this letter, professional We are pleased to report that no such standards define a disagreement with disagreements arose during the course of management as a financial accounting, our audit. reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. Other Information Professional standards state that if Additional information presented with the other information is included in financial statements consists of combining and documents containing audited financial individual non major fund financial statements, the auditor should statements. procedures communicate any With respect to this supplementary performed relating to such information information, we made certain inquiries of and the results of those procedures. management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U. S. generally accepted accounting principles, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to 1 prepare the financial statements or to the financial statements themselves. X14  Other Information ( continued) Required Supplementary Information ( RSI): Management' s Discussion and Analysis, the General Schedule of Funding Progress — Employees' Retirement Fund, Police Officers' Retirement Fund, and Firefighters Retirement Fund, the Schedule of Contributions From the Employer and Other Contributing Entities — General Employees' Retirement Fund, Police Officers' Retirement Fund, and Firefighters' Retirement Fund and the Schedule of Other Post -Employment Obligations are required by accounting principles accepted in the United States of America to supplement the basic