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HomeMy WebLinkAbout06-06-2023 Supporting Documents6/6/2023 FIFTY WEST Agenda • Roll Call and Determination of Quorum • Public Comments • Old Business • New Business 1. Approval of Minutes of the March 7, 2023 CRA Meeting 2. Presentation of 2022 Audit and Financial Statement, CRA Treasurer Roberts 3. Old Winter Garden Road/Maguire Road Intersection Improvements • Miscellaneous 1. Project Updates, CRA Administrator Corless 2. 2023 FPZA Awards • Board Comments • Adjournment 1 6/6/2023 �y FIFTY WEST 2022 CRA Financial Statement • Completed by Purvis Grey • Concluded that: — CRA complied, in all material aspects, with the requirements of Section 163.387(6) and (7), Florida Statutes — CRA complied, in all material aspects, with the requirements of Section 218.415, Florida Statutes City of Ocoee, Flonda wi F'r -'' I E; Community Redevelopment Agency N 6/6/2023 DWG WEST The Regency Development Agreement SELNIKDEVELOPMENT. LLC IM \� FIFTY WEST The Regency Cont. fhb L _ I re - 91 6/6/2023 FIFTY WEST The Regency Cont. Mixed -use development which will be located in Target Area 1 of the CRA Proposes 300 luxury multi- family units and 7,000 square feet of commercial space D.,A.I The development is projected to contribute $776,096 annually in Tax Increment Financing (TIF) to the CRA's Redevelopment Trust Fund FIFTY WEST OLD 'rv;;TER GARDEN ROAD GROUNfi IEVEI +c:A,: i AA.i'NG The Regency Cont. The City has an existing Development Agreement with The Regency which they seek to amend at tonight's CCM Incentives in the amendment include: - Transportation Impact Fee Credits to be applied towards the Old Winter Garden Road/New North Road - $845,161.55 - Recreation Impact Fees Credits to be applied towards creating a public park around the stormwater pond - $117,000 - Funds from the City's Stormwater Fund to pay for the City's portion of the stormwater retention in the project's pond - $193,461 - Building Plan Review Fee Credit of 50%- $125,000 - Real estate tax rebate/credit for this year and during the duration of construction (estimated at 21 mos.) - not to exceed $100,000. Total City Incentives: $1,380,622.55 4 6/6/2023 FIFTY M� WEST The Regency Cont. • The CRA has the opportunity to participate by contributing towards additional items that will help achieve the CRA's mission and vision for Target Area 1 including: - Improvement of the Old Winter Garden Road/Maguire Road Intersection — Development of the Old Winter Garden Road Extension • Current CIP shows OWG Rd Extension funded in FY 24-25 which aligns with developer's timeframe d FIFTY WEST The Regency Cont. Seeking CRA Board approval, by motion, to reimburse the City for the following incentives paid to The Regency developer: • $830,616 upon the completion/construction of the Old Winter Garden Road/Maguire Road intersection. This is approximately 50% of the estimated overall construction cost. • $560,000 towards the Old Winter Garden Road extension right-of-way cost. Payment would be made once construction has been completed and approved by the City. This is approximately 20% of the full roadway right-of- way cost which is currently estimated at $2.8 million. Total: $1,390,616 Reimbursement would be made from CRA's Capital Budget for Old Winter Garden Rd Extension 0 6/6/2023 FIFTY WEST The Regency Cont. Seeking CRA Board Motion to: Approve use of Capital Project Funds to reimburse the City of Ocoee in the amount of $1,390,616 for developer incentives to reconstruct the Old Winter Garden Road/Maguire Road intersection and construct the extension of Old Winter Garden Road 0 6/6/2023 FIFTY WEST Ocoee Corners Common 7 6/6/2023 FIFTY WEST Wellness Park _-M �G FIFTY WEST S. Bluford Avenue Complete Street • Initiated final design • Engineering • Permitting • Acquisition of right- of-way/easements • Roundabouts at Maine Street and Geneva Street 8 6/6/2023 ,V/, FIFTY WEST Maguire Road Phase 5 • Maine Street north to Story Road • 4-lane divided • Urban section • Starting later this summer �G FIFTY WEST Redevelopment Plan • Consultant reviewing all base data • Working on mapping exercises • Need to acquire legal sketches of enclaves • Preliminary discussions with County of Ocoee FILE "OFT OCOEE City of Ocoee 0 0 6/6/2023 FIFTY WEST Florida Planning and Zoning Association Awards • FPZA awarded Healthy West Orange Wellness Park "Outstanding Infrastructure Project" • We will accept the award at the FPZA Conference on June 9 FIFTY WEST 2022-2023 Meeting Dates • Meeting # ](Elect Officers) - Tuesday, December 5th at 5:00 p.m. (before City Commission meeting) • Meeting #2 Tuesday, March 7th at 5:00 p.m. (before City Commission meeting) • Meeting #3: HELD TODAY - Tuesday, June 6th at 5:00 p.m. (before City Commission meeting) • Meeting #4 (Budget Meeting): - Tuesday, September 19th at 5:00pm (before City Commission meeting) 10 City of Ocoee, Florida tm/ FIFTY ocoPe WCRA E S T Community Redevelopment Agency ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2022 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA SEPTEMBER 30, 2022 TABLE OF CONTENTS Independent Auditor's Report..................................................................... Management's Discussion and Analysis ........................................... Financial Statements ..............1-3 .................. 4-7 Statementof Net Position......................................................................................................................... 8 Statementof Activities.............................................................................................................................. 9 Balance Sheet - Governmental Funds..................................................................................................... 10 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds.................................................................................................. 11 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual......................................................................................................... 12 Notes to Financial Statements............................................................................................................13-19 Other Reports 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 Government Auditing Standards .............. Independent Accountant's Report on Compliance with Section 163.387(6) and (7), Florida Statutes ...................... Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes ....................................... Management Letter............................................................... ......................................................... 20-21 .............................................................. 22 .............................................................. 23 ......................................................... 24-26 PuRvis GRAY INDEPENDENT AUDITOR'S REPORT Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida Opinions We have audited the accompanying financial statements of the governmental activities and the major fund of the Ocoee Community Redevelopment Agency (the CRA), a component unit of the City of Ocoee, Florida (the City), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the CRA's financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the CRA as of September 30, 2022, and the respective changes in financial position for the yearthen ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the CRA, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the CRA's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. CERTIFIED PUBLIC ACCOUNTANTS Gainesville I Ocala ( Taliahassee 11 Sarasota I Onando ( Lakeland ( Tampa purvisgray.com Members «t American and Florida lnsiitutes M Cemf§ed Pu h< A; <aUntang An Independent \iember of the BI41 AAiance LSA 1 Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida INDEPENDENT AUDITOR'S REPORT Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. ■ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the CRA's internal control. Accordingly, no such opinion is expressed. ■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. ■ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the CRA's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis (MD&A) and the budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the MD&A and the budgetary comparison information in accordance with auditing standards generally Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida INDEPENDENT AUDITOR'S REPORT accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the MD&A and the budgetary comparison information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated May 8, 2023, on our consideration of the CRA's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the CRA's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the CRA's internal control over financial reporting and compliance. rarVISGI mq May 8, 2023 Ocala, Florida 3 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 As management of the City of Ocoee, Florida Community Redevelopment Agency we offer readers of the City of Ocoee Community Redevelopment Agency's financial statements this narrative overview and analysis of the financial activities of the City of Ocoee Community Redevelopment Agency for the fiscal year ended September 30, 2022. Financial Highlights ■ The assets of the City of Ocoee Community Redevelopment Agency (CRA) exceeded its liabilities at the close of the current fiscal year by $7,894,476 (net position). Of this amount, $4,811,983 represents restricted net position, which is to be used to meet the CRA's ongoing obligations to the fund. The CRA's total net position increased by $2,959,842 or 60%. As of the close of the current fiscal year, the CRA's governmental funds reported an ending fund balance of $4,437,124. The total amount, $4,437,124, is restricted for the purpose of community redevelopment. Overview of the Financial Statements The financial statements focus on the CRA as a whole (government -wide) and on the individual fund. Both perspectives (government -wide and fund) allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government -to -government) and enhance the CRA's accountability. This discussion and analysis is intended to serve as an introduction to the CRA's basic financial statements. The CRA's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the CRA's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the CRA's assets, liabilities and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the CRA is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government -wide financial statements distinguish functions of the CRA that are principally supported by taxes and intergovernmental revenues (governmental activities). The government -wide financial statements include only the CRA itself (known as the primary government). 4 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 The government -wide financial statements can be found on pages 8-9 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The CRA, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. The general fund of the CRA is categorized as a governmental fund. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The CRA adopts an annual appropriated budget for the general fund. Budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with the budget on page 12. The basic governmental fund financial statements can be found on pages 10-11 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 13-19 of this report. Government -Wide Financial Analysis Statement of Net Position As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the CRA, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $7,894,476 at the close of the most recent fiscal year. The following table reflects the condensed statement of net position for the current and prior year. For more details, see the Statement of Net Position on page 8. 5 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 Statement of Net Position as of September 30, Assets Current and Other Assets Capital Assets Total Assets Liabilities Current Liabilities Total Liabilities Net Position Net Investment in Capital Assets Restricted Total Net Position Governmental Activities 2022 2021 $ 4,856,401 $ 3,590,286 3,457,352 1,365,581 8,313,753 4,955,867 419,277 21,233 419,277 21,233 3,082,493 1,365,581 4,811,983 3,569,053 $ 7,894,476 $ 4,934,634 The CRA's net position of $3,082,493 is reflected in investment in capital assets, less any outstanding related debt used to acquire those assets. The CRA uses these capital assets to provide services to citizens; consequently, these assets are not available forfuture spending. Although the CRA's investment in capital assets is reported net of debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The CRA's net position increased by $2,959,842 during the current fiscal year. The following table reflects the condensed Statement of Activities for the current year. For more detail see the Statement of Activities on page 9. Revenues Program Revenues: Capital Grants and Contributions General Revenues: Taxes Miscellaneous Total Revenues Expenses Physical Environment Total Expenditures Increase (Decrease) in Net Position Before Transfers Increase (Decrease) in Net Position Net Position, October 1 Net Position, September 30 2 Governmental Activities 2022 2021 $ 1,904,384 $ 69,849 1,820,395 1,718,937 - 25,000 3,724,779 1,813,786 764,937 542,447 764,937 542,447 2,959,842 1,271,339 2,959,842 1,271,339 4,934,634 3,663,295 $ 7,894,476 $ 4,934,634 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2022 Governmental Activities Governmental activities increased the CRA's net position by $2,959,842. This was due to increases in taxes received by the CRA and additional capital grants and contributions. Financial Analysis of the Government's Funds As noted earlier, the CRA uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds The focus of the CRA's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the CRA's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of September 30, 2022, the CRA's governmental fund reported an ending fund balance of $4,437,124, an increase of $868,071 in comparison with the prior year. The fund balance is restricted for community redevelopment. General Fund Budgetary Highlights During the year, actual revenues were $345,616 less than budgeted revenues and actual expenditures were $4,825,976 less than budgeted expenditures. Revenues were lower than budgeted due to a portion of anticipated grant funds not being available in the current year. Expenses were lower than budgeted primarily due to lower capital activity than anticipated. Capital Assets At September 30, 2022, the CRA reported $3,457,352 in capital assets. At year-end, the entire balance was considered construction in progress. Next Year's Budget and Rates During the next fiscal year, the CRA is expecting to incur enough revenues to cover operating expenditures. Requests for Information This financial report is designed to provide a general overview of the City of Ocoee Community Redevelopment Agency's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 1 N Bluford Ave, Ocoee, Florida 34761. 7 BASIC FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2022 Assets Cash and Cash Equivalents Due from Other Funds Due from Other Governments Capital Assets: Capital Assets (Not Being Depreciated) Total Assets Liabilities Accounts Payable and Accrued Expenses Construction and Retainage Payable Due to City of Ocoee Due to Other Governments Total Liabilities Net Position Net Investment in Capital Assets Restricted Total Net Position Governmental Activities $ 2,952,017 1,000,000 904,384 3,457,352 8,313,753 43,099 374,859 1,311 8 419,277 3,082,493 4,811,983 $ 7,894,476 The accompanying notes to financial statements are an integral part of these statements. 8 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2022 Net (Expense) Revenue and Changes in Net Program Revenue Position Capital Grants and Governmental Functions/Programs Expenses Contributions Activities Primary Government Governmental Activities: Physical Environment $ 764,937 $ 1,904,384 $ 1,139,447 Total Governmental Activities $ 764,937 $ 1,904,384 1,139,447 General Revenues: Taxes 1,820,395 Miscellaneous - Total General Revenues and Transfers 1,820,395 Change in Net Position 2,959,842 Net Position, Beginning 4,934,634 Net Position, Ending $ 7,894,476 a The accompanying notes to financial statements are an integral part of these statements. 9 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 General Fund Assets Cash and Cash Equivalents $ 2,952,017 Due from Other Funds 1,000,000 Due from Other Governments 904,384 Total Assets 4,856,401 Liabilities Accounts Payable 32,375 Construction and Retainage Payable 374,859 Accrued Expenses 10,724 Due to City of Ocoee 1,311 Due to Other Governments 8 Total Liabilities 419,277 Fund Balance Restricted for Community Development 4,437,124 Total Fund Balances 4,437,124 Total Liabilities and Fund Balances $ 4,856,401 Amounts reported for governmental activities in the statement of net position are different because: Total Fund Balance Governmental Funds $ 4,437,124 Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. 3,457,352 Net Position of Governmental Activities $ 7,894,476 The accompanying notes to financial statements are an integral part of these statements. 10 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2022 General Fund Revenues Taxes $ 1,820,395 Intergovernmental Revenues 1,904,384 Total Revenues 3,724,779 Expenditures Current: Physical Environment 765,087 Capital Outlay: Physical Environment 2,091,621 Total Expenditures 2,856,708 Excess (Deficiency) of Revenues Over Expenditures 868,071 Net Change in Fund Balance 868,071 Fund Balance, Beginning 3,569,053 Fund Balance, Ending $ 4,437,124 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Net Change in Fund Balances - Total Governmental Funds $ 868,071 Governmental funds report outlays for capital assets as expenditures. However, in the statement of activities, the cost of those assets is recorded as capital assets. 2,091,771 Change in Net Position of Governmental Activities $ 2,959,842 The accompanying notes to financial statements are an integral part of these statements. 11 COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL YEAR ENDED SEPTEMBER 30, 2022 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amount (Negative) Revenues Taxes and Impact Fees: Intergovernmental $ 1,772,310 $ 1,820,395 $ 1,820,395 $ Miscellaneous 2,250,000 2,250,000 1,904,384 (345,616) Total Revenues 4,022,310 4,070,395 3,724,779 (345,616) Expenditures Physical Environment 6,169,296 7,682,684 2,856,708 4,825,976 Total Expenditures 6,169,296 7,682,684 2,856,708 4,825,976 Excess (Deficiency) of Revenues Over Expenditures (2,146,986) (3,612,289) 868,071 (5,171,592) Net Change in Fund Balance (2,146,986) (3,612,289) 868,071 (S,171,592) Fund Balance, Beginning 3,569,053 3,569,053 3,569,053 Fund Balance, Ending $ 1,422,067 $ (43,236) $ 4,437,124 $ (5,171,592) The accompanying notes to financial statements are an integral part of these statements. 12 NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA Note 1 - Summary of Significant Accounting Policies Reporting Entity The City of Ocoee (the City) created the Community Redevelopment Agency (the CRA) in May of 2006. This is a dependent taxing district established in accordance with Chapter 163, Part III, Florida Statutes. Notification to the affected taxing agency was done in compliance with Chapter 163.346, Part III, Florida Statutes. The incremental annual increase in tax over the base years will be used to fund projects designed to enhance and improve the described area. The purpose of the CRA is to utilize appropriate private and public resources to eliminate and prevent the development or spread of slum and blighted areas in designated areas within the City. Areas within the CRA are to be redeveloped as an economically sustainable and attractive mixed -use area offering a high -quality local destination in a manner that promotes a positive image for the City. The CRA's financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established by GAAP and used by the CRA are discussed below. The financial statements have also been prepared in accordance with GASB Statement No. 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments. In evaluating how to define the CRA, for financial reporting purposes, the CRA has considered all potential component units. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body, and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects, or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government: (a) is entitled to the organization's resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. Additionally, the primary government has operational responsibility for the component unit. In applying the above criteria, the CRA is a component unit of the City. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non -fiduciary activities of the CRA. For the most part, the effect of interfund activity has been removed from these statements; however, interfund services provided and used are not eliminated. Governmental activities are normally supported by taxes and intergovernmental revenues. 13 NOTES TO FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both 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 CRA considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the CRA. The CRA reports the following fund: ■ The General Fund was established as a dependent taxing district. The incremental annual increase in tax over the base years will be used to fund projects designed to enhance and improve the described area. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, if any; 2) operating grants and contributions; and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. When both restricted and unrestricted resources are available for use, it is the CRA's policy to use restricted resources first, then unrestricted resources as they are needed. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance Deposits and Investments The CRA's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. 14 NOTES TO FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA Receivables and Payables All receivables are shown net of an allowance for uncollectibles. The CRA's primary source of revenue is tax -increment funds. This revenue is computed by applying the respective operating tax rates for the City and Orange County (the County), multiplied by increased value of property located within the boundaries of the redevelopment areas of the CRA in excess of the base property value, minus S%. The City and the County are required to fund this amount annually without regard to tax collections or other obligations. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are defined by the CRA's capitalization policy as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Any assets purchased with CRA funds are conveyed to the City for ownership and maintenance upon completion of the project. At year-end, all assets are considered construction in progress. Long -Term Obligations In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s), and so will not be recognized as an outflow of resources (expense/expenditure) until then. The CRA does not have any item that qualifies for reporting in this category for the year ended September 30, 2022. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s), and so will not be recognized as an inflow of resources (revenue) until that time. The CRA does not have any item that qualifies for reporting in this category for the year ended September 30, 2022. 15 NOTES TO FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA Net Position Flow Assumptions Sometimes the CRA will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government -wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the CRA's policy to consider restricted net position to have been depleted before unrestricted net position is applied. Fund Balance Flow Assumptions Sometimes the CRA will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the CRA's policy to consider restricted fund balance to have been depleted first before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The CRA itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the CRA's highest level of decision -making authority. The CRA Board of Directors (the CRA Board) is the highest level of decision -making authority for the CRA that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the CRA for specific purposes but do not meet the criteria to be classified as committed. The CRA Board has maintained authority to assign fund balance. The CRA Board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 16 NOTES TO FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA New Accounting Standards In fiscal year 2022, the CRA has not implemented any new accounting standards with a material effect on the CRA's financial statements. Note 2 - Stewardship, Compliance, and Accountabilitv Budgetary Information Annual budgets are adopted on a basis consistent with GAAP for the CRA. The CRA follows these procedures set forth below in establishing the budgetary data reflected in the financial statements. 1) Prior to the CRA's September budget meeting, the Executive Director/City Manager submits to the CRA a proposed budget for the fiscal year commencing the following October 1st. The budget includes proposed expenditures, including operating and capital improvement projects, and the means of financing them. 2) A noticed CRA budget meeting is held to discuss and approve the CRA's proposed budget. This meeting is held prior to the City Commission's second public hearing to adopt the City's budget. 3) The CRA adopts the budget by resolution. The resolution includes language on how to handle the increase or decrease in tax increment revenues and cash brought forward. The CRA's adopted budget is sent to the City Commission and is incorporated into the City's overall budget. 4) On or before September 30th of each year, the Commission adopts the final budget by ordinance, which includes the CRA's budget, and establishes the ad valorem tax millage for the City. 5) The CRA cannot legally exceed the amended budget, however, the Executive Director/City Manager is authorized to administratively make any adjustments to the CRA's budget. The legal level of budgetary control is at the department level. 6) The CRA must transmit the adopted budget and any amendments to the County within 10 days of adoption by the CRA Board. Note 3 - Deposits and Investments Deposits All bank deposits were covered by Federal Depository Insurance or by collateral held in banks that are members of the State of Florida's Collateral Pool as specified under Florida Law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to "authorized depositories". Investments The CRA categorizes its fair value measurements within the fair value hierarchy established by GAAP. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fairvalue of the asset. The CRA uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. 17 NOTES TO FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances, which includes the CRA's own data in measuring unobservable inputs. The CRA had no investments as defined by GASB Statement No. 72 as of September 30, 2022. The CRA's investment policies are governed by Florida Statutes and City ordinances. City ordinance allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are: 1. State Board of Administration Local Government Investment Pool (SBA LGIP) 2. Registered Investment Companies (Money Market Mutual Funds) 3. Money Market Funds and Certificates of Deposit in State -Certified Qualified Public Depositories 4. U.S. Government Agency Securities and U.S. Treasury Bills, Notes and Bonds 5. Repurchase Agreements Credit Risk The City's investment policy limits credit risk by restricting authorized investments to those described above. The policy requires that investments in U.S. Government agency securities be guaranteed by the full faith of the U.S. Government. Also, term repurchase agreements must be collateralized by U.S. Treasury securities and overnight (sweep) repurchase agreements must be collateralized by the full faith or general faith and credit obligations of the U.S. Government or U.S. Government agency securities. Securities of registered investment companies must be limited to U.S. Government obligations and to repurchase agreements fully collateralized by such U.S. Government obligations. Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2022, all of the CRA's bank deposits were in qualified public depositories. For an investment, this is the risk that, in the event of the failure of the counterparty, the CRA will not be able to recover the value of its investments of collateral securities that are in the possession of an outside party. Concentration of Credit Risk The policy has no limitations on portfolio composition. Interest Rate Risk The policy limits investment in U.S. Government agency securities, treasury bills, notes, and bonds to a maximum maturity of five years. The maximum length to maturity for certificates of deposit is three years. 116] NOTES TO FINANCIAL STATEMENTS COMMUNITY REDEVELOPMENT AGENCY CITY OF OCOEE, FLORIDA Note 4 - _Capital Assets Capital asset activity for the year ended September 30, 2022 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Construction in Progress $ 1,365,581 $ 2,091,771 $ $ 3,457,352 Total Capital Assets, Not Being Depreciated 1. 665,581 S 2 991 771 $ $ 3 457. 552 Note 5 - Commitments and Contingencies Risk Management The CRA is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the CRA is covered under the City's commercial insurance. There have been no significant reductions in insurance coverage from the prior year and there have been no settlements during the past three years. Note 6 -.Related-Party Transactions The CRA is a component unit of the City. For the year ended September 30, 2022, the CRA's tax increment revenues include $969,245 received from the City. In addition, the CRA reimbursed the City for services performed on behalf of the CRA, such as payroll and payroll benefits paid during the year. Payment to the City for these services during the year ended September 30, 2022, was approximately $284,465. At year-end, the CRA owed the City $1,311, primarily for expenditures paid by the City and not yet remitted from the CRA. Additionally, there is $1,000,000 due from the City for a deposit received by the City, which was transferred to the CRA bank account after year-end. Note 7 - Source of Deposits and Purpose of Withdrawals Pursuant to Florida Statute 163.387, listed below is a summary of the sources and amounts of deposits to, and the purpose and amounts of withdrawals from, the CRA funds for the fiscal year ended September 30, 2022: Source of Deposit Tax Increment $ 1,820,395 Grants 1,904,384 Total Sources of Deposit �___ 3,724.779 Purpose of Withdrawal Salaries and Benefits $ 284,465 Professional Services 239,792 Miscellaneous 240,830 Capital Outlay 2,091,621 Total Purpose of Withdrawals $ 2,856,708 19 OTHER REPORTS PURVIS GRAY 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 GOVERNMENT AUDITING STANDARDS Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida We have audited, in accordance with the 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, the financial statements of the City of Ocoee, Florida, Community Redevelopment Agency (the CRA) as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the CRA's financial statements and have issued our report thereon dated May 8, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the CRA's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances 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 CRA's internal control. Accordingly, we do not express an opinion on the effectiveness of the CRA's internal control. 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 and correct, misstatements on a timely basis. Amaterial weakness is a deficiency, or a 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. A significant deficiency is a deficiency, or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CERTIFIED PUBLIC ACCOUNTANTS CJ=rfrc��rille 017.. 1 purvisgray.com 20 Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida 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 GOVERNMENT AUDITING STANDARDS Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the CRA's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, non-compliance with which could have a direct and material effect on the financial statements. 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 non-compliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the CRA's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the CRA's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. May 8, 2023 Ocala, Florida 21 PuRvisGRAY INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SECTION 163.387(6) AND (7), FLORIDA STATUTES Honorable CRA Board Ocoee Community Redevelopment Agency Ocoee, Florida We have examined the Ocoee Community Redevelopment Agency's (the CRA) compliance with the requirements of Section 163.387(6) and (7), Florida Statutes, as of and for the year ended September 30, 2022, as required by Section 10.556(10)(f), Rules of the Auditor General. Management is responsible for the CRA's compliance with those requirements. Our responsibility is to express an opinion on the CRA's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the CRA complied, in all material respects, with the requirements referenced above. An examination involves performing procedures to obtain evidence about whether the CRA complied with the specific requirements. The nature, timing, and extent of procedures selected depend on our judgement, including an assessment of the risk of material non- compliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the CRA's compliance with specific requirements. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the CRA complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2022. This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, the CRA, its management, and the Board of Directors of the City of Ocoee, Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. -1 "rVISC-1 (, a,� May 8, 2023 Ocala, Florida CERTIFIED PUBLIC ACCOUNTANTS Lakeland ( Tampa purvisgray.com . .'il t, �� • , -.� .. t r t nai .t.1 to ul t�U 'J,'1t`t{ iLi[ �Ii ;L.�i 14it1.31715 ,ow, 7 1, : 'OO ai ::;r i.'G:i 22 PURVIS GRAY INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida We have examined the Ocoee Community Redevelopment Agency's (the CRA) compliance with the requirements of Section 218.415, Florida Statutes, as of and for the year ended September 30, 2022, as required by Section 10.556(10)(a), Rules of the Auditor General. Management is responsible for the CRA's compliance with those requirements. Our responsibility is to express an opinion on the CRA's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the CRA complied, in all material respects, with the requirements referenced above. An examination involves performing procedures to obtain evidence about whether the CRA complied with the specific requirements. The nature, timing, and extent of procedures selected depend on our judgement, including an assessment of the risk of material non- compliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the CRA's compliance with specific requirements. We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the CRA complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2022. This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, the CRA, its management, and the Board of Directors of the City of Ocoee, Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. —T u IT V l .S G(Oq May 8, 2023 Ocala, Florida CERTIFIED PUBLIC ACCOUNTANTS Gainesville I Ocala ( 7a11ahassee Sarasota Orlando f t akeland 17}tml)a purvisgray.com Menibers of Ameri(an. and Fhwida Instiitacs of C crliiied Public A-mintan[s An Irsaepen&nt Member of the isl)O Aihano: USA 23 PURVIsGRAY MANAGEMENT LETTER Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida Report on the Financial Statements We have audited the financial statements of the City of Ocoee, Florida Community Redevelopment Agency (the CRA) as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated May 8, 2023. Auditor's Responsibility We conducted our audit 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, and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our 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 Government Auditing Standards, and Independent Accountant's Report on examination conducted in accordance with American Institute of Certified Public Accountants Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated May 8, 2023, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. There were no findings in the previous report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government be disclosed in the management letter, unless disclosed in the notes to the financial statements (see Note 1 of the CRA's financial statements as of and for the year ended September 30, 2022, for this information). CERTIFIED PUBLIC ACCOUNTANTS Gainesville I Ocala I Tallahassee ISarasota I Orlando ' f ilkekand ( 1"itr17110 purvisgray.com Membeis of American anal Flnricta Institnte� of t.:ertifie(I 1'uLi;z Aconma-t, An Independent %I mbnr of the SDO Afl)ance USA 24 Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida MANAGEMENT LETTER Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the CRA has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the CRA did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the CRA's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.d., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)(6), Rules of the Auditor General, the CRA reported the following information that was not subject to auditing procedures: a. The total number of district employees compensated in the last pay period of the district's fiscal year as 0. b. The total number of independent contractors to whom non -employee compensation was paid in the last month of the district's fiscal year as 2. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0. d. All compensation earned by or awarded to non -employee independent contractors, whether paid or accrued, regardless of contingency as $1,933,233. e. Each construction project with a total cost of at least $65,000 approved by the CRA that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such projects as: Wellness Park Construction and Observation Services for $1,933,233. 25 s Honorable CRA Board Community Redevelopment Agency City of Ocoee, Florida MANAGEMENT LETTER f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final budget under Section 189.016(6), Florida Statutes, see Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual as presented in the financial statements for the year ended September 30, 2022. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate non-compliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material, but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of This Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Honorable Mayor, and City of Ocoee Board of Directors and management, and is not intended to be, and should not be, used by anyone other than these specified parties. j,'Lt r V jSG(a� May 8, 2023 Ocala, Florida 26