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HomeMy WebLinkAbout2010 - Audit Inclusion 1 r� City of Sebastian, Florida r r, Schedule of Expenditures of State Financial Assistance I For the year ended September 30,2010 Utz` `C � ,\ J c (C l( Contract .0,' "L" ry " x_711- _ : 1. ■ State Agency pass-through Entity CSFA Grant State Project No. No. Expenditu Department of Transportation Direct Projects: Joint Participation Agreement with Florida Department of Transportation Aviation Administration: Construct Access Road 55.004 407706-1-94-01 $ 495,780 Construct Hangars 55.004 418164-1-94-01 3,426 Construct Hangars 55.004 416287-1-94-01 2,952 Design Runway Rehab,Lighting&Marking 55.004 426172-1-94-01 9,002 District Maintenance Lighting Maintenance and Compensation Agreement 55.023 405122-1-78-10 18,559 Total Department of Transportation 529,719 Florida Department of Community Affairs Florida Communities Trust(FCT) Stan Mayfield Working Waterfront Grant Contract Sebastian Working Waterfront Collaborative 52.013 08-003-WW1 2,556,872 Total Florida Department of Community Affairs 2,556,872 TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE: $ 3,086,590 The accompanying notes are an integral part of the audit. 119 SINGLE AUDIT SECTION The Single Audit Section contains various independent auditor's reports and schedules as required by the Florida Single Audit Act, Chapter 215.97, Florida Statutes for state and local governments that receive state assistance. > Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards > Independent Auditor's Management Letter 111 o, Harris, Cotherman, �-L-�► Jones, Price & Associates Certified Public Accountants•Chartered 5070 North Highway AlA, Suite 250 Vero Beach,FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and Members of City Council City of Sebastian Sebastian, Florida We have audited the financial statements of the City of Sebastian, Florida (the "City") as of and for the year ended September 30, 2010, and have issued our report thereon dated February 24, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit,we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented,or detected and corrected on a timely basis. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of rmneompliance or other matters that are required to be reported under Government Auditing Standards. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 113 o, Harris, Cotherman, I ► Jones, Price & Associates - Certified Public Accountants-Chartered Honorable Mayor and Members of City Council - City of Sebastian Sebastian, Florida 1 Page two 1 We noted certain matters that we reported to management of the City of Sebastian, Florida in a separate - letter, Independent Auditors' Management Letter, dated February 24, 2011. 1 This report is intended solely for the information and use of the City of Sebastian, Florida and - management, state awarding agencies and pass-through entities, and the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than these specified parties. Yilreva4), Potit, oectuc,..id.) evi.ti;e4d)�) di tia to - Nat-iamb - Vero Beach, Florida 1 February 24, 2011 .1 I .■ ■ 114 o Harris, Cotherman, Jones, Price & Associates Certified Public Accountants-Chartered 5070 North Highway AlA, Suite 250 Vero Beach,FL 32963 Tel 772-234-8484 Fax 772-234-8488 Independent Auditors' Report on Compliance with Requirements Applicable to Each Major State Project and on Internal Control Over Compliance in Accordance with the Department of Financial Services State Projects Compliance Supplement Honorable Mayor and Members of City Council City of Sebastian Sebastian, Florida Compliance We have audited the compliance of the City of Sebastian, Florida(the"City)with the types of compliance requirements described in the Department of Financial Services State Projects Compliance Supplement, that are applicable to each of its major state projects for the year ended September 30, 2010. The City's major state projects are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major state projects is the responsibility of the City of Sebastian, Florida's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; Chapter 69I-5, Schedule of Expenditures of State Financial Assistance, Rules of the Department of Financial Services; and Chapter 10.550, Rules of the Auditor General. These standards, Chapter 69I-5 and Chapter 10.550, Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether non-compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state project occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion, the City of Sebastian, Florida complied, in all material respects, with the requirements referred to above that are applicable to each of its major state projects for the year ended September 30, 2010. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 115 " Harris, Cotherman, <17' Jones, Price & Associates Certified Public Accountants-Chartered Honorable Mayor and Members of City Council City of Sebastian, Florida Page two Internal Control Over Compliance The management of the City of Sebastian, Florida is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to state projects. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major state project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express our opinion on the effectiveness of the City's internal control over compliance. A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a state project on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a state project such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a state project that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a state project will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses,as defined above. This report is intended solely for the information and use of the City of Sebastian, Florida and management, state awarding agencies and pass-through entities, and the State of Florida Office of the Auditor General and is not intended to be and should not be used by anyone other than these specified parties. Wedvt;A,), M J anU j ,per. - 7z - - 0 , b February 24, 2011 116 CITY OF SEBASTIAN,FLORIDA Schedule of Findings and Questioned Costs State Projects Year Ended September 30, 2010 Section I - Summary of Auditors' Results Internal control over major State projects: Material weakness(es) identified? Yes X No Reportable condition(s) identified not considered to be material weaknesses? Yes X None reported Type of auditors' report issued on compliance for projects: Unqualified Any audit findings disclosed that are required to be reported in accordance with Chapter 10.550,Rules of the Auditor General? Yes X No Identification of major State projects: State CFDA Number Name of State Project 55.004 Joint Participation Agreement with Florida Department of Transportation Aviation Administration 55.023 Lighting Maintenance and Compensation Agreement 52.013 Stan Mayfield Working Waterfront Grant Contract Sebastian Working Waterfront Collaborative Dollar threshold used to distinguish between Type A and Type B projects: $300,000 Section II -Financial Statement Findings No matters were reported. Section III - Findings and Questioned Costs -Major State Projects No matters were reported. Section IV- Prior Year Findings and Questioned Costs - Major State Projects No matters were reported. 117 City of Sebastian,Florida Notes to Schedule of Expenditures of State Financial Assistance September 30, 2010 The accounting policies and presentation of the Single Audit Report of City of Sebastian, Florida, (the "City") have been designed to conform to generally s ac applicable and compliance requirements of the Audits of State, Local Governments, Non-Profit Organizat ons and the Florida Single Audit Act. A. Reporting Entity The reporting entity consists of City of Sebastian,the primary government,and each of its component units.The City includes a Schedule of Expenditures of Federal Awards and State Financial Assistance in the Single Audit Section. B. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements.Basis of accounting relates to the timing of measurements made,regardless of the measurement focus. The modified accrual basis of accounting is followed in the Schedule of Expenditures of State Financial Assistance. Under the modified accrual basis, revenues are recognized when they become measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.For this purpose,the City considered revenues to be available if they are collected within one year after the end of the current fiscal period.Expenditures generally are recorded when a liability is incurred,as under accrual accounting. 120