Fort Walton Beach Council agenda — 03-27-12 regular — reading text

have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management' s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no sensitive estimates significant to the financial noted. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was disclosure related to the investments in the Florida Small Business Administration Pooled Cash Fund B. The funds in that account are currently frozen by the state and are liquidated periodically when the underlying investments of the pool mature. Pool B assets consist of those that are either in default on a payment, have paid more slowly than expected, and/ or have significant credit risk. The balance of shares owned by the City in the Pool as of September 30, 2011, was $ 279,081 with a fair value of $211, 219. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Mayor and Council City of Fort Walton Beach, Florida Page two Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit' s financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor' s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 9, 2012. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a " second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit' s financial statements or a determination of the type of auditor' s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues 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 Information in Documents Containing Audited Financial Statements 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. Adeaat 4 6 March 9, 2012  6.6. 1.1. aa ComprehensiveComprehensive AnnualAnnual Financial Financial ReportReport w w n dNCd U LLLL ii T O O cc OO WithWith ComplianceCompliance MattersMatters andand ResponsesResponses FiscalFiscal YearYear EndedEnded SeptemberSeptember 30,30, 20112011 PacketPacket Pg.Pg. 2020 1  6. 1. a City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL o FINANCIAL REPORT a` a ttLL for the Fiscal Year Ended September 30, 2011 Prepared by The Finance Department City of Fort Walton Beach 107 Miracle Strip Parkway Fort Walton Beach, Florida 32548 WWW.FW B. ORG Packet Pg. 21  I 6. 1. a I 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 Robert T. Meares Brandy Ferris CITY CLERK CITY ATTORNEY Helen Spencer Hayward Dykes Packet Pg. 22  F- 61. 7 I. INTRODUCTORY SECTION TABLE OF CONTENTS LETTER OF TRANSMITTAL GOVERNMENT FINANCE OFFICERS CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING ORGANIZATIONAL CHART Packet Pg. 23  6. t .a City of Fort Walton Beach, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30, 2011 Page Exhibit TITLE PAGE CITY OFFICIALS 1. INTRODUCTORY SECTION L Table of Contents Letter of Transmittal c0c0 City Manager and Finance Director GFOA Certificate of Achievement iv is qc x Organizational Chart aNian IL FINANCIAL SECTION Independent Auditor' s Report I QUaLL A. MANAGEMENT' S DISCUSSION AND ANALYSIS 3 NNrr B. BASIC FINANCIAL STATEMENTS aa UU Government -Wide Financial Statements 14 1 Statement of Net Assets 15 11 Statement of Activities Fund Financial Statements Governmental Funds NLainsAui Balance Sheet Reconciliation fthe Balance Sheet to the Statement of Net Assets 16 17 INA IIIB ma0ma0 is IVA Statement of Revenues, Expenditures and Changes in Fund Balance Reconciliation of the Statement of Revenues. Expenditures and Changes IVB C0C0L in Fund Balance to the Statement of Activities 19 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 20 VA EE Statement of Revenues. Expenditures and Changes in Fund Balance- asNasN 21 VB Budget and Actual —Community Redevelopment Agency alal Pvonriem,, Funds Statement of Net Assets