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HomeMy WebLinkAbout2025 04 28 Regular 500 - Audit Presentation WS 2024Audit Results for the Fiscal Year Ended September 30, 2024 Audit Engagement – What Did We Do? Financial Audit Financial Statements and Independent Auditor’s Report Federal Single Audit Internal Controls and Compliance Affecting Financial Reporting Examination of Compliance with Florida Statute on Investment of Public Funds Auditor’s Reports ConclusionMatter •Fairly stated in all material respects •Unmodified Opinion (“Clean” Opinion) Auditor’s Opinion on Financial Statements and Notes •No material weaknesses or significant deficiencies in internal control over compliance •No material instances of noncompliance or other matters Federal Single Audit Coronavirus State and Local Fiscal Recovery Funds (ARPA) •One carryover finding from 2023; Six other 2023 findings were cleared; no new findings in 2024 Internal Control, Compliance, and Other Matters required to be reported under Government Auditing Standards Auditor’s Reports ConclusionMatter •The City complied, in all material respects, with compliance requirements for local government investments Compliancewith F.S. 218.415 •No current year findings or recommendationsManagement Letter in accordance with Chapter 10.550, Rules of the Auditor General •Recommendations have been provided to management; a majority of recommendations made in our preceding reports have been implemented IT System Evaluation conducted to obtain understanding of IT environment related to financial reporting process Significant Estimates and Judgments Certain aspects of accounting are more qualitativeand thus require more judgment and estimation by management. The following items represent the most significant estimates: •Depreciation Expense and Accumulated Depreciation based upon expected useful life of Infrastructure •Allowance for Uncollectible Accounts •Compensated Absences Liability •Net Pension Liability, Expense and Related Deferred Outflows and Inflows of Resources •Net OPEB Liability, Expense and Related Deferred Outflows and Inflows of Resources Significant Audit Matters ConclusionMatter •Adopted GASB 100, Accounting Changes and Error Corrections •No transactions noted for which there is a lack of authoritative guidance Accounting Policies •The disclosures are neutral, consistent, and clear •Most significant disclosure in Note 14 regarding Wastewater Treatment System project Financial Statement Disclosures •No significant audit adjustmentsAdjustments Detected by theAudit Process •No significant difficulties encountered in dealing with management or performing the audit Difficulties Encounteredin Performing the Audit Financial Highlights – General Fund 2024 2023 Change Revenues Property Taxes 8,031,892 7,391,163 640,729 Utility and Other Taxes 5,560,878 5,461,787 99,091 Permits and Fees 2,709,863 2,821,481 (111,618) Intergovernmental 4,922,321 5,086,414 (164,093) Charges for Services 969,544 762,122 207,422 Fines and Forfeitures 133,758 97,181 36,577 Other 1,170,117 945,141 224,976 Total Revenues 23,498,373$ 22,565,289$ 933,084$ Expenditures General Government 7,475,743 6,301,888 1,173,855 Public Safety 8,322,855 7,647,149 675,706 Physical Environment 1,281,529 1,041,474 240,055 Culture and Recreation 2,574,370 2,253,722 320,648 Debt Service 160,545 160,545 - Capital Outlay 911,979 1,609,434 (697,455) Total Expenditures 20,727,021$ 19,014,212$ 1,712,809$ Proceeds from SBITA's 0$ 667,737$ (667,737)$ Net Transfer In (Out) (958,732)$ (3,435,936)$ 2,477,204$ Net Change in Fund Balance 1,812,620$ 782,878$ 1,697,479$ Financial Highlights – General Fund 2024 2023 Change Total Assets 18,011,838$ 16,183,070$ 1,828,768$ Total Liabilities 2,209,641$ 2,011,027$ 198,614$ Deferred Inflows 3,884,556$ 4,067,022$ (182,466)$ Fund Balance Nonspendable 144,133 585,104 (440,971) Assigned 2,034,400 944,483 1,089,917 Unassigned 9,739,108 8,575,434 1,163,674 Total Fund Balance 11,917,641$ 10,105,021$ 1,812,620$ Unassigned FB as a % of Total Expenditures 47% 45% Financial Highlights – Enterprise Funds 2024 2023 Change Revenues Utilities 14,502,217 12,616,106 1,886,111 Development Services 1,115,088 997,054 118,034 Stormwater 1,139,728 1,137,164 2,564 Total Revenues 16,757,033$ 14,750,324$ 2,006,709$ Expenses Personnel 3,084,357 2,751,151 333,206 Materials & Supplies 1,606,028 2,192,144 (586,116) Depreciation 3,602,561 2,659,628 942,933 Other Operating 8,756,901 8,160,918 595,983 Total Expenses 17,049,847$ 15,763,841$ 1,286,006$ Operating Income (292,814)$ (1,013,517)$ 720,703$ Nonoperating Revenue (Expense) 2,769,709$ 1,128,281$ 1,641,428$ Chng in NP Before Capital Contributions 2,476,895$ 114,764$ 2,362,131$ Connection Fees & Capital Contributions 276,177$ 198,599$ 77,578$ Net Transfers In (Out) 9,248,732$ (704,064)$ 9,952,796$ Change in Net Position 12,001,804$ (390,701)$ 12,392,505$ Financial Highlights – Enterprise Funds 2024 2023 Change Assets Current Assets 46,662,449 34,467,749 12,194,700 Restricted Assets 910,021 898,088 11,933 Capital Assets & Deferred Outflows 42,073,321 43,736,604 (1,663,283) Total Assets and Deferred Outflows 89,645,791$ 79,102,441$ 10,543,350$ Liabilities Current Liabilities 5,596,952 5,074,536 522,416 Non-current Bonds, Notes and Other 13,881,481 15,567,961 (1,686,480) Pension, OPEB and related Deferred Inflows 1,626,365 1,920,755 (294,390) Total Liabilities and Deferred Inflows 21,104,798$ 22,563,252$ (1,458,454)$ Net Position Net Investment in Capital Assets 32,849,569 33,001,489 (151,920) Restricted 5,473,452 5,729,121 (255,669) Unrestricted 30,217,972 17,808,579 12,409,393 Total Net Position 68,540,993$ 56,539,189$ 12,001,804$ Unrestricted NP as a % of Total Expenses 177.2% 113.0% Financial Highlights – Pensions 2024 2023 Change Additions Contributions 2,258,737 2,699,335 (440,598) Investment Earnings 15,421,479 6,676,377 8,745,102 Total Additions 17,680,216$ 9,375,712$ 8,304,504$ Deductions Benefit Payments 4,989,518 4,760,493 229,025 Administrative Expenses 67,092 46,469 20,623 Total Deductions 5,056,610$ 4,806,962$ 249,648$ Change Net Position 12,623,606$ 4,568,750$ 8,054,856 Investment Rate of Return 23.56% 12.97% Actuarial Rate of Return 6.75% 7.00% Financial Highlights – Pensions 2024 2023 Change Assets Cash and Investments 78,319,816 65,873,995 12,445,821 Contributions Receivable 730,030 493,834 236,196 Total Assets 79,049,846$ 66,367,829$ 12,682,017$ Total Liabilities 58,411$ -$ 58,411 Net Assets Held for Pension Benefits 78,991,435$ 66,367,829$ 12,623,606 Total Pension Liability 78,541,946$ 74,569,429$ 3,972,517 Funded % 100.6% 89.0% purvisgray.com