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Home My WebLink About05-16-2023 Presentation on the Audit Results for Fiscal Year Ending September 30, 2022, and the GFOA Excellence in Financial Reporting Award by Matt Ganoe with PurvisGrayCity of Ocoee, Florida purvisgray.com Audit Results for the Year Ending September 30, 2022 Page 4 of 142 2 purvisgray.com Matthew Ganoe, CPA Senior Audit Manager 352-509-3770 mganoe@purvisgray.com Timothy M. Westgate, CPA Audit Partner 352.509.3731 twestgate@purvisgray.com Michael S. Sandstrum, CPA, CISA, CISM, CITP, CGMA IT Senior Audit Director 941.702.9506 msandstrum@purvisgray.com Leadership of Your Audit Team Page 5 of 142 GFOA Excellence In Financial Reporting Award 3 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Ocoee, Florida For its Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2021 3Page 6 of 142 Auditor’s Reports 4 Matter Conclusion Auditor’s Opinion on Financial Statements and Notes •Fairly stated in all material respects •Unmodified Opinion (“Clean” Opinion) Internal Control, Compliance, and Other Matters (Government Auditing Standards) •No material weaknesses in internal control over financial reporting were reported under Government Auditing Standards •No instances of non-compliance or other matters required to be reported under Government Auditing Standards. Solely for the use of the City, including management and those charged with governance Page 7 of 142 Auditor’s Reports Matter Conclusion Compliance with F.S. 218.415 •The City complied, in all material respects, with compliance requirements for local government investments Management Letter Rules of the Auditor General 10.550 •No findings of deteriorating financial condition or financial emergency •No noted non-compliance with contracts or grants, which would have a significant effect on the financial statements 5Solely for the use of the City, including management and those charged with governance Page 8 of 142 Auditor’s Reports 6 Matter Conclusion Auditor’s Opinion on Compliance (Single Audit) •Complied in all material respects •Unmodified Opinion (“Clean” Opinion) Internal Control Over Compliance Matters Identified in an Audit •No Material Weaknesses were reported over Federal Grants Major Federal Program Single Audit •U.S. Department of Treasury: •Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No. 21.027 Solely for the use of the City, including management and those charged with governance Page 9 of 142 Significant Events and Financial Highlights 7 Event/Highlight Governmental Funds •General Fund •ARPA Fund •2020 Capital Projects •Other Non-Major Funds Change in Fund Balance •$15,643,198 •$26,672 •($9,253,536) •$927,493 Ending Fund Balance •$41,455,043 •$26,672 •$1,427,965 •$29,651,460 Solely for the use of the City, including management and those charged with governance Page 10 of 142 Significant Events and Financial Highlights 8 Event/Highlight Proprietary Funds •Water & Wastewater Fund •Solid Waste Fund •Stormwater Fund •Internal Service Fund Change in Net Position •$7,895,237 •($37,217) •($377,692) •($2,750,679) Working Capital (Current Assets-Current Liabilities) •$25,569,453 •($749,155) •$7,027,264 •$8,033,600 Fiduciary Funds •Employee Retirement Funds Change in Net Position •$(21,502,344) Net Position •$105,849,255 Solely for the use of the City, including management and those charged with governance Page 11 of 142 Significant Events and Financial Highlights 9 Event/Highlight American Rescue Plan Act Funding The city received both tranches of funding for ARPA during the fiscal year. $10,021,989 was recognized as revenue in FY22 with the remaining $14,150,711 recorded as unearned revenues and will be recognized as revenue when eligibility requirements are met. Solid Waste Fund The Solid Waste fund ended the year with a negative net position, which has unfortunately been the case for the past several years. As of the end of the current year, the fund’s unrestricted net position deficit stood at $937,178. Fiduciary Funds The decline in investment balances was primarily caused by unrealized investment losses, resulting in a decrease in the net position for the year of roughly $21 million. Solely for the use of the City, including management and those charged with governance Page 12 of 142 Other Audit Matters Matter Conclusion Accounting Policies •Implemented GASB 87 Leases during 2022 •About $1,000,000 for Lease Receivables and Deferred Inflows for Leases recorded under the standard. •No transactions were noted for which there is a lack of authoritative guidance Restatements- Adjustments to beginning Net Position More information on restatements discussed in Note 1 •Claims Payable - $760,731 •Unbilled Revenues - $1,187,995 •Unearned Revenue- ARPA - $12,086,349 10Solely for the use of the City, including management and those charged with governance Page 13 of 142 Other Audit Matters 11 Matter Conclusion Financial statement disclosures •The disclosures are neutral, consistent, and clear Disagreements with Management •None Difficulties encountered in performing our audit •We encountered no significant difficulties in dealing with management in performing and completing our audit Solely for the use of the City, including management and those charged with governance Page 14 of 142 Recommendations 12 Year-End Closing Process 2022-1 Timely Bank Reconciliations Year-end Audit Adjustments Inventory Balances for Utilities Capital Asset Reporting and Processing Solely for the use of the City, including management and those charged with governance Page 15 of 142 13 purvisgray.com Matthew B. Ganoe, CPA Senior Audit Manager 352.509.3770 mganoe@purvisgray.com Timothy M. Westgate, CPA Audit Partner 352.509.3731 twestgate@purvisgray.com Page 16 of 142