CITY OF TARPON SPRINGS R EQUIRED A UDITOR C OMMUNICATIONS F ISCAL Y - - PowerPoint PPT Presentation
CITY OF TARPON SPRINGS R EQUIRED A UDITOR C OMMUNICATIONS F ISCAL Y EAR E NDED S EPTEMBER 30, 2016 Presented by: Jeff Wolf, CPA Audit Manager Deliverables and Reports Required Communications Letter (See handout). Independent Auditors
Presented by: Jeff Wolf, CPA Audit Manager
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4 Total Assets $16.2M Total Liabilities and Deferred Inflows $1.4M Fund Balance: Non Spendable Restricted Committed Assigned Unassigned Total Fund Balance $0.4M 0.2M 2.9M 2.5M 8.8M $14.8M Unassigned FB as a % of Total Expenditures and Transfers Out 39.1% Net Change in Fund Balance ($0.9M)
5 Budget Actual Variance Resources: Beginning Fund Balance $ 15.7M $ 15.7M Total Revenues & Transfers In 21.6M 21.6M $0.0M Total Resources 37.3M 37.3M Total Expenditures and Transfer Out 23.8M 22.5M 1.3M Ending Fund Balance $ 13.5M $ 14.8M Net Change in Fund Balance ($ 2.2M) ($ 0.9M) $1.3M
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Sanitation Water & Sewer Total Assets $5.6M $101.4M Total Liabilities and Deferred Inflows 1.0M 36.9M Net Position: Net Investment in Capital Assets 0.9M 53.0M Restricted 0.8M 4.3M Unrestricted 2.9M 7.2M Total Net Position $4.6M $64.5M Total Operating Revenues $4.7M $14.5M Total Operating Expenses 4.3M 11.6M Operating Income (Loss) $0.4M $2.9M
March 13, 2017 City of Tarpon Springs City Commission Tarpon Springs, Florida We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Tarpon Springs, Florida (the “City”) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon, dated March 13, 2017. Professional standards require that we provide you with the following information related to our audit. OUR RESPONSIBILITY UNDER U.S. GENERALLY ACCEPTED AUDITING STANDARDS AND GOVERNMENT AUDITING STANDARDS As stated in our engagement letter dated August 18, 2015, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City’s compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an
PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously communicated to you in our planning communications letter dated October 25, 2016. SIGNIFICANT AUDIT FINDINGS Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial
was not changed during 2016. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred.
City of Tarpon Springs March 13, 2017 Page 2 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
affecting them may differ significantly from those expected. The significant estimates affecting the City’s financial statements include the following liabilities: Compensated Absences, Other Post-Employment Benefits, and Net Pension Liability. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The following disclosures are considered significant: Note III-A – Deposits and Investments; Note III-F – Long Term Debt; Note IV-F – Other Post-Employment Benefits (OPEB); and Note IV-G – Employee Pension Plans. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. 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
in the aggregate, to the 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 manage- ment representation letter dated March 13, 2017. 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 consul- tation involves application of an accounting principle to the City’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
City of Tarpon Springs March 13, 2017 Page 3 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 City’s auditors. However, these discussions occurred in the normal course of our professional relationship and
We had one recommendation for improvement. The recommendation is provided for your review in our “Independent Auditor’s Management Letter.” The letter is part of the City’s Comprehensive Annual Financial Report (“CAFR”), as provided to you on March 13, 2017. 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 U.S., 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 Commissioners and management of the City of Tarpon Springs, Florida and is not intended to be, and should not be, used by anyone
Very truly yours,
MOORE STEPHENS LOVELACE, P.A.
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Attachment
307-8603-519.62-00 OTHER GENERAL GOVT SERVICE / BUILDINGS 104,374.00 $ 307-0000-202.00-00 CURRENT LIABILITIES / ACCOUNTS PAYABLE 104,374.00 $ Total 104,374.00 $ 104,374.00 $
Summary of Uncorrected Misstatements City of Tarpon Springs September 30, 2016
Proposed Journal Entries
To record capital outlay expense for City Hall Renovations through 9/30/16.