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HomeMy WebLinkAbout05-06-14 Presentation - Fiscal Year 2013 Audit Results and CAFR Presentation - Elden McDirmit, CPACITY OF OCOEE, FLORIDA AUDITOR PRESENTATION YEAR ENDED 9/30/13 MDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS HIGHLIGHTS • Transmittal letter on Ocoee letterhead at iii to vi in introductory section describes the major initiatives such as reducing impact fees and granting ad valorem tax exemptions for economic development in 2013. • Certificate of Achievement for 2012 report • Independent Auditor's Report unqualified and in new format which highlights both auditor's and management's responsibility HIGHLIGHTS • Notes on pages 30 to 67 provide information needed to understand financials on 14 to 29. • Audit Reports in Other Reports state the City is in compliance with laws &regulations and no deficiencies in internal control. • Management letter says there are no current or prior year comments and the City is in compliance with Rules of Auditor General. D & A • Assets exceeded liabilities by $177 million, which is a $291,000 decrease from 2012. • 73% is net investment in capital assets. 7% is in restricted net assets and 20% is unrestricted net assets. • Debt decreased $2.2 million from normal debt payments and also 2 revenue notes were refunded in 2013, resulting in over $1.6 million in savings to City. • Total unassigned fund balance in the General Fund is $7.9 million, or 25.2% of 2013 expend itures(not incl. refunding exp.) • The reason for having the 25% balance above is that several debt issues have impact fees pledged and in the future these fees may not generate enough revenue to pay debt service and so become GF debt. D & A • General Fund revenues were $926,000 more than budget due to increase in building permits and sales tax revenue. • General Fund expenditures were $1.9 million less than budget due to debt service savings. • Water /wastewater fund had a $200,553 increase in net position in 2013 due to capital contributions from developers. FINANCIAL CONDITION • Auditor General requires the City's management to monitor the City's financial condition and the City's auditor to p erform assessment procedures. • Auditor General financial indicators look at trends in the C y City over the past 5 years as well as compare to other cities that are approximately the same size. Some i ndicators were inconclusive when compared • to benchmarks because Ocoee refunded some debt in 2013 which affected total expend itures.The debt ref u ndin s will save thousands of dollars of interest. g FINANCIAL CONDITION • The indicator for ratio of intergovernmental revenue to total revenue was unfavorable compared to benchmark since some intergov revenues are based on formulas that contain a population element. City should have a contingency plan in the event that those revenues are reduced or discontinued. • The General Employees' Pension is funded at 81.66/0 ° , which is slightly below the benchmark of 83.22 %, so rating is inconclusive. FINANCIAL CONDITION • The indicator for ratio of governmental fund balance to revenue is favorable compared to benchmark. City budgeted to spend down fund balance for g construction of Lakeshore Center but sales tax and building permit revenues were higher than budgeted and offset most of budgeted amount. Ratio within the City ecreased because of increase in revenue. y • Our assessment did not indicate that the City's overall financial condition is deteriorating.