Fort Walton Beach Council agenda — 03-24-10 regular — reading text

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OO dd oo aa WW 00 oo y d0 L 0 a Emu s a m o V y S ON H W co y V on 3 O Y as MA O a o h m y C G IM c O' 0. me- a V O ss Y 0 0 ow C G i 73 tt V V E 3: y 33 G •- y G bw O d mc i d i FF ss O W 00 a VV ss c V C O • G O as a C V NINE V N  CITY COUNCIL MEETING March 24, 2009 Approval of Agenda No Backup) Agenda Item Number: 1  CITY COUNCIL MEETING March 24, 2009 Special Presentation Consideration of accepting the Annual Audit and Comprehensive Financial Report for the City of Fort Walton Beach for the fiscal year ended September 30, 2008 Finance Director) Agenda Item Number: 2  CITY OF FORT WALTON BEACH MEMORANDUM Date: March 9, 2009 To: Robert Mearns, Acting City Manager From: Brandy Wunker, Finance Director Subject: Comprehensive Annual Financial Report FYE 9/ 30/ 2008 Background: Florida Statutes Chapter 218. 32 ( 1) ( d) requires each local government entity to complete an audit report within 12 months after the end of the fiscal year. 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. The published report is known as the Comprehensive Annual Financial Report ( CAFR). Discussion: The Comprehensive Annual Financial Report ( CAFR) of the City of Fort Walton Beach for the year ended September 30, 2008, is now complete and is submitted herewith. The results of the annual audit for the year ended 9/ 30/ 08 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. The auditor's management letter (page 121) contained one comment for improvement regarding the Golf Fund' s cash flow deficits and deficit unrestricted net assets. Management responded with an explanation of the 2 -year plan that was approved by City Council to transfer funds from the General Fund to the Golf Fund beginning in FY 2008 -09 and City Council' s action to change the rate structure of the Golf Course in an effort to increase revenue. In addition, Management notated that these actions would be analyzed on an annual basis, during the budgetary process, to determine their continued applicability. Mrs. Angela Balent and Mr. Joseph P. Henderson of O' Sullivan Creel LLP will present the pertinent items of the CAFR at the City Council meeting on March 24, 2009, and respond to questions Council may have at that time. Conclusion: Staff respectfully requests that Council accept, by motion, the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2008. Ad O'SULLIVAN CREEL, LLP noCertified Public Accountants & Consultants 45 Beal Parkway, N.E. • Fort Walton Beach, FL 32548 • ( 850) 244 -5121 Mayor and Members of City Council City of Fort Walton Beach, Florida We have audited the financial statements of the City of Fort Walton Beach, Florida as of and for the year ended September 30, 2008, and have issued our report thereon dated February 21, 2009. Professional standards require that we advise you of the following matters relating to our audit: Our Responsibility under Generally Accepted Auditing Standards Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit, in accordance with auditing standards generally accepted in the United States of America, does not provide absolute assurance about, or guarantee the accuracy of the financial statements. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is an inherent risk that material errors, fraud, or illegal acts may exist and may not be detected by us. Professional standards also require that we obtain a sufficient understanding of the entity' s internal control to plan the audit. However, such understanding is required for the purpose of determining our audit procedures, and not to provide any assurance concerning such internal control. We noted no significant deficiencies or material weaknesses in the City' s internal control during our audit. Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City of Fort Walton Beach, Florida is included in Note 2 to the financial statements. There has been no initial selection of accounting policies, and no changes in significant accounting policies or their application during the year ending September 30, 2008. No matters have come to our attention that would require us, under professional standards, to inform you about ( 1) the methods used to account for significant unusual transactions and ( 2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. RSM McGladrey Network MWVffdM* 0W(WMMtff 3- Mayor and Members of City Council City of Fort Walton Beach, Florida Page three Major Issues Discussed with Management Prior to Retention We did not discuss any major issues with Management regarding the application of accounting principles and auditing standards that resulted in a condition to our retention as the City' s auditors. Difficulties Encountered in Performing the Audit We encountered no serious difficulties in dealing with Management relating to the performance of the audit. This report is intended solely for the information and use of the City of Fort Walton Beach, City Council, and Management and is not intended to be and should not be used by anyone other than these specified parties. March 16, 2009 5-