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05-04-2021 Agenda PacketF I FT Y WEST CRA Ocoee Commission Chambers 150 North Lakeshore Drive Ocoee, Horida: May 4, 2021 AGENDA 5:00 P.M. mr-IT1111wrolroTtr-OW L. Roll Call and Determination of'Quorum If. Public Comments III. Approval of Minutes of the March 2, 2021, CRA Meeting IV. City Center Construction Update, John Amm, Chief Engineering & Construction Officer/Senior Vice President, CCWO V. CRA Audit, Tammy Campbell, McDirmit' Davis VI. Wellness Park Funding, Deputy Development Services Director/CRA Administrator Coriess VII. Confirm Next Budget CRA Board Meeting (September 7, 2021 at 5:00 p.m.) Vill. Board Comments PLEASE NOTE: IN ACCORDANCE WITH FLORIDA STATUTE 286.0105: ANY PERSON WHO DESIRES TO APPEAL ANY DECISION AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND FOR THIS PURPOSE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS, IS MADE WHICH INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS BASED. ALSO, IN ACCORDANCE WITH FLORIDA STATUTE 286,26: PERSONS WITH DISABILITIES NEEDING ASSISTANCE TO PARTICIPATE IN ANY OF THESE PROCEEDINGS SHOULD CONTACT THE OFFICE OF THE CITY CLERK, 150 N. LAKESHORE DRIVE, OCOEE, FL 34761, (407) 905-3105 48 HOURS IN ADVANCE OF THE MEETING. COMMUNITY REDEVELOPMENT AGENCY REGULAR MEETING Ocoee Commission Chambers 150 North Lakeshore Drive Ocoee, Florida March 2, 2021 MINUTES 5:00 PM I. Roil Call and Determination of Quorum Chair June called the Community Redevelopment .Agency Board to order at 5:0O PM in the Commission Chambers of City Hall. City Clerk Sibbitt called roll and declared a quorum present. Roll Call: Chair June, Vice -Chair Brinson, Member Wilsen, Member Johnson, Member Firstner, Member Oliver, and Member Marsh Also Present: City Manager Frank, Assistant City Manager Shadrix, City Attorney Cookson, Deputy Development Services Director/CRA Administrator Corless, and City Clerk Sibbitt, II. Public Comments - None No speaker reservation fog°nis mere received. IIL Approval of Minutes of November 17, 2020, CRA Regular Meeting Member Wilsen seconded by Vice -Chair Brinson mewed to approve the CRA Re ular Meeti'ng Minutes of November 17 2020 as presented. Motion carried 7-0.. IV. Staff Presentation (Deputy Development Services Director/CRA Administrator Carless) A) FY 2019/2020 Annual Report Deputy Development Services Director/CRA Administrator Corless announced the 2019-2020 .Annual Report is printed and available. Contents in the report include: 2020 New Requirements Financial 2020 Reporting Information Required. Distribution and Deadlines CRA Regular Meeting 03-02-2021 Page 1 B) FY 2020/2021 Budget Adjustments Deputy Development Services Director/CRA Administrator Corless announced the budget in September was completed by estimating revenue as the CRA does not receive final dollar amounts until the end of November or beginning of December. Therefore, for the FY 2020/2021 annual budget the CRA requires some budget adjustments. She briefly explained the incremental revenue received in excess of the estimated amount, and shared this is to be allocated to Account 4900 Reserve for Contingency as stated in Section 3 of the Resolution. She further asked the CPA Board to acknowledge the $93,850.50 in additional incremental revenue that will be allocated to Account 4900: Reserve for Contingency. Member Wilsen, seconded by Member Johnson, moved to acknowledge $93,860.50 in additional incremental revenue to be allocated to Account 49,00: Reserve for Contingency. Motion carried 7-0. Deputy Development Services Director/CIZA Administrator Corless further explained the two ways Section 3 of the Resolution allows Opening Cash and Miscellaneous Income to be allocated. She shared that staff requests the CRA Board allocate $224,852.86 in additional Beginning Cash and Miscellaneous Revenue to Account 6302: Capital Improvements. Member Jiohnson, seconded by Member Oliver, moved to allocate $224,852.86 in additional Beginning Cash and Miscellaneous Revenue to Account 6302: Capital Improvements., Motion carried 7-0. C) Capital Projects Update Deputy Development Services Director/CRA Administrator Corless updated the Board on the following current Capital Improvement Projects (CIP). South Bluford Avenue Streetscapt — Design is underway for a new roundabout at the Bluford and Geneva Road intersection with sewer, utility, and drainage upgrades. Three (3) firms were shortlisted, and staff will schedule interviews to select which firm will do the engineering. Deputy Development Services Director/CRA Administrator Corless reminded the board that the CRA has two projects occurring in the budget for Bluford Avenue: one is the roundabout and the other is the streetscape; therefore, staff requests to combine the project costs for the South Bluford Avenue Streetscztpe and the Bluford/Geneva Road Intersection Improvements into one project under Account 6302: Capital Improvements. The combined projects will result in a FY 20- 21 budet of $558,500 for the S. Bluford Avenue Streetscape and Intersection Improvements project. Member Oliver, seconded by Member Johnson, moved to combine the projec costs foir the South Bluford Avenue Streetscape and the Bluford/Geneva Road Intersection Improvements into one project under Accouint 6302: Capital Improvements. Motion carried 7'-0. MEMBEENOW . . ......... CRA Regular Meeting 03-02-2021 Page 2 Vice -Chair Brinson inquired if combining of funds is being requested because it is more cost efficient. Deputy Development Services Director/CRA Administrator Corless addressed his question. Member Wilsen inquired if the school board is contributing any type of funding as these improvements will benefit the school. Deputy Development Services Director/CRA Administrator Corless shared there are some additional funding they will seek once they identify the true cost. Wellness Park — With the construction documents completed and bidding to commence this April or May, this soon to be iconic public destination will be the second park south of State Road 50 and aimed at improving community health. The estimated cost for the park. is $2.1 million, but the current budget is $2 million; therefore, staff requests the CRA Board allocate $224,852.86 in additional Beginning Cash and Miscellaneous Revenue in Account 6302: Capital Improvements to the construction of the Wellness Park. The adjusted Wellness Park Construction Budget will be $2,224,852.86 Member Johnson inquired about the parking location for the Wellness Park. Deputy Development Services Director/CRA Administrator Corless addressed his question. Member 'Nilsen confirmed with the City Attorney that her seat on the West Orange Healthcare District would not be a conflict of interest. The City Attorney advised it would not. Member Oliver inquired about adding additional parking. Deputy Development Services Director/CRA Administrator Corless explained the limitations on the expansion of parking due to the retention area. Member Firstner inquired about the timeline for this project. Deputy Development Services Director/CRA Administrator Corless advised it would be late summer/early fall before they would be able to get started on the Wellness Park, but the project could be completed in 18 months. Member Marsh shared that the Healthy West Orange is also allocating funds for a trail that will be located within the City. Vice Chair Brinson, seconded by Member Oliver, moved to allocate the 224,852.86 in additional Beginning Cash and Miscellanous Revenue in Account 63,02: Capital Improvements to the Construction of the Wellness Park., Motion carried 7-0. State Road 50 Median Landscaping Plant Replacements — Project is completed and currently under the one-year warranty period. Deputy Development Services Director/CRA Administrator Corless complimented the contractor for maintaining the medians. V. Confirm Next Regular CRA Board Meeting Deputy Development Services Director/CRA Administrator Corless announced and confirmed the next meeting is scheduled for May 4, 2021, at 5:00 PM. [V�I.B�oard Comments Vice Chair Brinson inquired if the impact on traffic has been considered with the Downtown Improvements and current City Hall development, Deputy Development Services Director/CRA Administrator Corless addressed his question and shared that City Hall should be well underway CRA Regular Meeting 03-02-2021 Page 3 before they start the Bluford Streetscape project; however, staff will take traffic flow into consideration as they work on construction scheduling. Member Oliver shared he is pleased that the CRA Board operates in a surplus. He further thanked Deputy Development Services Director/CRA Administrator Corless and her staff. Chair June shared he is excited to see the Bluford Avenue Streetscape and roundabout projects moving forward as he is aware permitting takes time, Vice Chair Brinson shared he has received compliments from residents on the beautification of the CRA areas, which helps to bring businesses to the City. He also thanked Deputy Development Services Director/CRA Administrator Corless and her staff. ADJOURNMENT The meeting was adjourned at 5:31 PM Attest: E11119 f 1111 "1 Melanie Sibbitt, Secretary Randy June, Chair CRA Regular Meeting 03-02-2021 Page 4 934 North Magnolia Avenue, Suite 100 orl[ando, Florida 32803 407-843-5406 www.mcdirmitdavis.com Honorable Board of Commissioners City of Ocoee Community Redevelopment Agency, Florida We have audited the financial statements of City of Ocoee Community Redevelopment Agency (the CRA) as of and for the year ended September 30, 2020, and have issued our report thereon dated April 19, 2021, Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated August 12, 2020, our responsibility, as described by professional standards, is to form and express an opinions) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the CRA solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm has complied with all relevant ethical requirements regarding independence. Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the CRA is included in Note I to the financial statements. In fiscal year 2020, the CRA implemented Government Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. This pronouncement provides temporary relief to governments and other stakeholders in light of the COVID-119 pandemic by postponing the effective dates of provisions in certain other statements. There was no effect on beginning balances of the CRA. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an, integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. the ku�,.Jold partner Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the CRA's financial statements relate to the sources of deposits and purpose of withdrawals as described in Note 7. Significant Difficulties Encountered During the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management, Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected alll such misstatements. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or 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 matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the CRA's financial statements or the auditer's report. No such disagreements arose during the course of the audit, Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated April 19, 2021. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with City of Ocoee Community Redevelopment Agency, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the CRA's auditors, This report is intended solely for the use of management, the city, the Board of Commissioners 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. Very truly yours, Orlando, Florida April 19, 2021 Mayor Rusly Johnson April 19, 2021 CornmWloners Larry Brinson, Sr District I McDinnft Davis, LLC Rosemary Wilsen 934 N. Magnolia Ave, Suite 100 District 2 Orlando, FL 32803 Richard f irsiner District 3 The representation letter is provided in connection with your audit of the financial statements of City of Ocoee Community Redevelopment Agency as of September 30, 2020 and for the Goorge oilver lit Disidd 4 year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of City Manager the various opinion units of City of Ocoee Community Redevelopment Agency in accordance Robert D, Frank with accounting principles generally accepted for governments in the United States of America (U.S. GAAP). Certain representations in this letter are described as, being limited to matters that are material. Iterns are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the Information would be changed or influenced by the omission or misstatement We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of April 19, 2021. Financial Statements • We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated August 12, 2020, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP. • We acknowledge our responsibility 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. We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements. • We have reviewed, approved, and taken responsibility for the financial statements and related notes, • We have a process to track the status of audit findings and recommendations. • We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. • Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP, City of Ocoee - 150 N Lakeshore Drive - Ocoee, Florida 34761 Phone: (407) 905-3100 - www.ocoee,org • All events subsequent to the date of the financial statements and for which Ui.S, GAAP requires adjustment or disclosure have been, adjusted or dIsclosed. • There is no summary of unrecorded misstatements since all adjustments proposed by the auditor, material, and Immaterial, have been recorded. • The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAR • All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are property disclosed. • All funds and activities are properly classified. • All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements —and Management's Discussion and Analysis —for State and Local Governments, and GAS13 Statement No. 37, Basic Financial Statements —and Management's Discussion and Analysis —for State and Local Governments: Omnibus as amended, and GASB Statement No, 66, Items Previously reported as Assets and Liabilities for presentation as major are Identified and presented as such and all other funds that are presented as major are considered important to financial statement users. • All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. • Our, policy regarding whether to first apply restricted or unrestricted resources when an expense is Incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy, • All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. • All expenses have been properly classified in or allocated to functions and programs In the statement of activities, and allocations, if any, have been made on a reasonable basis. • All interfund and intra-entity transactions and balances have been, properly classified and reported, • Special items and extraordinary items have been properly classified and reported, • Deposit and Investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated. • All required supplementary information is measured and presented within the prescribed guidelines. • With regard to Investments and other instruments reported at fair value: • The underlying assumptions are reasonable and they appropriately reflect management's intent and ability to carry out its, stated courses of action. • The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied, • The disclosures related to fair values, are complete, adequate, and in accordance with U.S, GAAP. • There are no subsequent events that require adjustments to the fair value measurements and disclosures included In the financial statements, • With respect to, the nonattest services provided (drafting financial statements, and proposing AJEs), we have performed the following: • Made all management decisions and performed all management functions; • Assigned a competent individual to oversee the services; • Evaluated the adequacy of the services performed; • Evaluated and accepted responsibility for the result of the service performed; and • Established and maintained internal controls, includ"ngi monitoring ongoing activities, • City of Ocoee Community Redevelopment Agency has complied with Florida Statutes Section 161387(7) by properly appropriating any remaining balance to an approved project, Information Provided • We have provided you with: o Access to all Information, of which we are aware: that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting iminutes, and other matters; o Additional information that you have requested from us for the purpose of the audit; and 0 Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. All transactions have been recorded in the accounting records and are reflected In the financial statements. • We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. We have provided to you our analysis of the entity's ability to continue as a going concern, including significant conditions and events present, and if necessary, our analysis of management's plans, and our ability to achieve those plans. We have no knowledge of any fraud or suspected fraud, that affects the entity and involves: • Management; o IEmplo�yees who have, significant roles In Internal control; or c Others where the fraud could have a material effect on the financial statements. We have no knowledge of any allegations of fraud, or suspected fraud, affecting the entity's financial statements communicated by employees, former employees, vendors, regulators, or others. We have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. • There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. City of Ocoee Community Redevelopment Agency has no plans or Intentions that may materially affect the carrying value or classification of assets and liabilities. • We have disclosed to you all guarantees, whether written or oral, under which City of Ocoee Community Redevelopment Agency is contingently liable. • We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabiiiijes and disclosed property in accordance with GIASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the entity will make a payment on any guarantee, • For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee, Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range. • We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB- 62), Codification of Accounting and Financial Reporting Guidance Contained In Pre -November 30, 1989 FASB and AICPA Pronouncements, Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. • We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. • There are no: o Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations, • Unasserted claims or assessments, that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. o Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62 c Continuing disclosure consent decree agreements or filings with Securities and Exchange Commission and we have filed updates on a timely basis In accordance with agreements (Rule 240, 15c2-12) • City of Ocoee Community Redevelopment Agency has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you. • We have compiled with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance, Signed: /14/0-1-1 Cityinanager Signe Finance Director Fr Community Redevelopment Agency 0 M 1 U.11 -M I r 01, 1 M.10 M TTIM Z 4: 4: X -& a i City of Ocoee, Florida Community Redevelopment Agency Table of Contents Page Introductory Section: Table of Contents Financial Section: Independent Auditor's Report 1-2 Management's Discussion and Analysis 3-6 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds 9 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 10 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Community Redevelopment Agency Fund 11 Notes to Financial Statements 12-18 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 19 Independent Auditor's Management Letter 20-21 Independent Auditor's Report on Compliance with the Requirements of Section 218.415, Florida Statutes 22 Independent Accountant's Report on Compliance with the Requirements of Section 163,387(6) and (7), Florida Statutes 23 Financial Section J, Honorable Board of Commissioners City of Ocoee, Florida Community Redevelopment Agency IJ34 North Magnolia Avenue, Suite 100 Orlando, Florida 32803 ,107-843-5406 ww\v,rncdirrnitdavis,com Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, and each major fund, of the City of Ocoee, Florida Community Redevelopment Agency (the "CRA'), a component unit of the City of Ocoee, Florida as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the CRA's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements The CRA's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 enitity's internal control. Accordingly, we express no such opinion, An audit also, includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements, We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund, of City of Ocoee Community Redevelopment Agency, as of September 30, 2020, and the respective changes in financial position, and the respective budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. the parinei Other Matters Required Supplementary Information Accounting principles generally accepted in, the United States of America require that the Management's Discussion and Analysis on page 3 through 7 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 pad 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 required supplementary information in accordance with auditing standards generally 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 information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Ocoee Community Redevelopment Agency's basic financial statements, The introductory section is presented for purposes of additional analysis and are not a required pad of the financial statements. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards , In accordance with Government Auditing Standards, we have also issued a report dated April 19, 2021 on our consideration of City of Ocoee Community Redevelopment Agency'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 internal control over financial reporting or on compliance. That report is an integral part of an audft performed in accordance with Government Auditing Standards in considering City of Ocoee Community Redevelopment Agency$ internal control'! over financial reporting and compliance. Orlando, Florida April 19, 2021 Page 12 Cfty of Ocoee, Florida Community Redevelopment Agency Management's Discussion and Analysis 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 dthe financial activities uf the City of Ocoee Community Redevelopment Agency for the fiscal year ended September 30, 2020. Financial Highlights ° The assets of the CRA exceeded its liabilities at the close of the current fiscal year by $3,663,295 (net position), Of th|aemouot, $2.31S'737represents restricted net position, which inhn&eused tomeet the CRA`aongoing obligations to the fund, ° The government's total net position increased by$1.344.008or58%. ° As of the :lose of the ourmm| fiacm| year. the CR/Yx governmental funds reported an ending fund balance of $2'31S.737.The total amount, $2.315.737.iorestricted for the purpose nfcommunity redevelopment, Overview ofthe Financial Statements The financial statements houv on the CRA as o whole (government -wide) and on the individual fund. Both pampmdivma (government -wide and fund) mUmw the user to uddnmon m|mmnt quwotiomo, broaden m basis for comparison (year-to-year or Oow*mman#n-gwmmmwnQand enhance the CRA'oaccountability. This discussion and' analysis are intended to serve as an introduction bthe CRA basic financial statements. The CRAbbasic financial statemontsvompduo three components: i) government -wide financial statements, 2) fund financial statements, and 3) notes to the hneno|mU otatemomts. This report also contains other supplementary information in addition to the basic Nnumdu| statements themselves, Financial Statements The Gmuommont-wide financial statements are designed to pmv�da modom with a broad overview u/the CRA'ufinmmcem. in a manner similar tomprivate-sector business. The statement of not position presents information on mU of the CRA's assets, Nabilifieo 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 ofactivities presents information showing how the government's ret position changed during the most recent fiscal year. All changes in net posftion are reported as soon as the underlying event giving rise to the change occurs, regardless ofthe timing ofrelated cash flows, Thus, revenues and expenses are reported in this staternent 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 gmmmment-wide financial statements dixtimgu�sh funcfinnu of the CRA that are principally supported by taxes and intergovernmental revenues (governmental moVvities). The govern ment-widfinancial statements include only the CRA itself (known asthe p6ma Aovemmen0 The government -wide financial statements can be found onpages 7-8 of this report, City of Ocoee, Florida Community Redevelopment Agency Management's Discussion and Analysis 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 govemmental activities in the governmental -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -form 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 11. The basic governmental fund financial statements can be found on pages 9-10 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 12- 18 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 $3,663,295 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 detail see the Statement of Net Position on page 7. Page 14 City of Ocoee, Florida Community Redevelopment Agency Management's Discussion and Analysis Statement of Net Position as of September 30, Current and other assets Capital assets Total assets Current liabilities Total liabilities Net Position: Net investment in capital assets Restricted Total net position Governmental Activities 2020 2019 $ 2,430,592 $ 2,471 ,357 1,347,558 57,830 3,778,150 2,529,187 114,855 209,978 114,855 209,978 1,347,558 57,830 2,315,737 2,261,379 -j-3,663,295 —L-2,319,209 The CRA's net position of $1,347,558 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 for future 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 $1,344,086 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 8. Changes in Net Position For the Year Ended September 30, Revenues: Program Revenues: Capital grants and contributions General Revenues: Taxes Total revenues Expenses: Physical environment Total expenses Increase (decrease) in net position Net position, October I Net position, September 30 Governmental Activities 2020 2019 $ 589,504 $ 1,390,115 1,224,117 1,979,,619 1,224,117 635,533 827,379 635,533 8,27,379 1,344,086 396,738 2,319,209 1,922,471 $ 3,1663,295 $ 2,319,209 Page f 5 City of Ocoee, Florida Community Redevelopment Agency Management's Discussion and Analysis Governmental Activities Governmental activities increased the CRA's net position by $1,344,1086. This was due: to increases in contributions and grants received by the CRA. 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 fond 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, 2020, the CRA's governmental fund reported combined ending fund balances of $2,315,737 an increase of $54,358 in comparison with the prior year. The fund balance is restricted for community redevelopment. The fund balance of the general fund increased by $54,358 during the current fiscal year. General Fund Budgetary Highlights During the year, actual revenues were $589,504 more than budgeted revenues and actual expenditures were $1,539,417 less than budgeted expenditures. Revenues were higher than budgeted due to the receipt of grant revenue, Expenses were lower than budgeted primarily due to lower capital activity than anticipated. Capital Assets At September 30, 2020,1the CRA had $1,347,558 invested 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, 150 N. Lakeshore Drive, Ocoee, Florida 34761. Page G 6 City of Ocoee, Florida Community Redevelopment Agency Statement of Net Position September 30, 2020 Governmental! Activities As s ets: Cash and cash equivalents $ 2,273,696 Due from City of Ocoee 156,896 Capital assets: Capital assets (not being depreciated) 1,347,558 Total assets 3,778,150 Liabilities: Accounts payable and other current liabilities 114,855 Total liabilities 114,855 Net Position: Net investment in capital assets 1,347,558 Restricted 2,315,737 Total net position $ 3,663,295 accompanying Notes to Financial Statements are an integral part of these statements, Page 17 City ofOcoee, Ronda Statement of Activities Year Ended September 3U.2O2U Net (Expense)Revenue and Changes 6Net Program Revenn Position Capital Grants Charges for and FunoL|mns/Pmgmmmo: Expenses Services Cnntribmfiuna Governmental Activities Primary Government Governmental Activities: Physical environment 633533 580504 Total governmental activities 835533 689584 Total primary government General revenues: Taxes Total general revenues 1390115 Change |mnet position 1'344.088 Net position, beginning 2319209 Net Position, ending The accompanying Notes to Financial Statements are an integral part of these statements. Pagel City of Ocoee, Florida Community Redevelopment Agency Balance Sheet - Governmental Fund September 30, 2020 General Fund Assets: Cash and cash equivalents $ 2,273,696 Due from City of Ocoee 156,896 Total assets 2,430,592 Liabilities: Accounts payable 105,747 Accrued expenses 9,108 Total liabilities 114,855 Fund Balance: Restricted for community development 2,315,737 Total fund balances 2,315,737 Total liabilities and fund balances $ 2,430,592 Amounts reported for governmental activities in the statement of net position are different because: Total fund balance governmental funds $ 2,315,737 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds, 1,347,558 Net position of governmental activities $ 3,663,295 The accompanying Notes to Financial Statements are an integral part of these statements, Page 19 City of Ocoee, Florida Community Redevelopment Agency Statement of Revenues, Expenditures and Changes In Fund Balance - Governmental Fund Year Ended September 30, 2020 General Fund Revenues: Taxes $ 1,390,115 Intergovernmental revenues 589,504 Total revenues 1,979,619 Expenditures: Current: Physical environment 473,045 CapitalOutlay: Physicat environment 1,452,216 Total expenditures 1,925,261 Excess (Deficiency) of Revenues Over Expenditures 54,358 Net change in fund balance 54,358 Fund balance, beginning 2,261,379 Fund balance, ending $ 2,315,737 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 $ 54,358 Governmental funds report outlays for capital assets as expenditures. However, in the statement of activities the cost of those assets is aliocated over their estimated useful lives and reported as depreciation expense, This is the amount by which capital outlays exceeded depreciation in the current period. 1,289,728 $ 1,344,086 The accompanying Notes to Financial Statements are an integral park of these statements, Page 110 City of Ocoee, Florida Community Redevelopment Agency Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended September 30, 2020 Revenues: Taixes and impact fees Intergovernmental Total revenues Expenditures: Physical environment Total expenditures Excess (Deficiency) of Revenues Over Expenditures Net change in fund balance Fund balance, beginning Fund balance, ending Budgeted Amounts Original Final Variance with Final Budget - Actual' Positive Amounts (Negative) $ 1,354,856 $ 1,390,115 $ 1,390,115 $ - - - 589,504 589,504 1,354,856 1,390,115 1,,979,619 589,504 3,234,280 3,464,678 1,925,,261 1,539,417 3,234,280 3,464,678 1,925,261 1,539,417 (1,879,424) (2,074,563) 54,358 2,128,921 (1,879,424) (2,074,563) 54,358 2,128,921 2,261,379 2,261,379 2,261,379 - $ 381,955 $ 186,816 $ 2,3,15,737 $ 2,128,921 accompanying Notes to Financial Statements are an integral! part of these statements. Page 1 11 Notes to Financial Statements City ofOcoee, Florida Community Redevelopment Agency Notes tuFinancial Statements NOTE SUMMARY OfSIGNIFICANT ACCOUNTING POLICIES Reporting Entity The City of Ocoee (the "City") created the Community Redevelopment Agency (CRA) in May of 2006. This iaudependent to&Q distNct established in accordance with Chapter 163, Part III, Florida Statutes. NotifiomNontoaffected taxngagency was done in compliance with Chapter 163.346, Part 111, Florida Statutes, The incremental annual increase in tax over the base years will be used to fund projects designed to enhance and improve the dmacdbad area. The purpose of the CRA is to ut|ize mppmphate private and public resources tod|mhnmteand 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 econornically sustainable and attractive rnixed-use area offering a high quality local destination |numanner that promotes epositive image for the City. The CRAb financial statements are prepared in mnoordenom with Generally Accepted AuooumUm7 Principles yS/VNP. The Governmental Accounting Standards Board (GASB) ismmpomn�blnfor establishing GAAPforotateandlocm|qovmnmmnts through its pronouncements (Statements and Interpretations). The more significant accounting policies established in GAAPenJ used by the CR& are discussed bo|ww. The financial statements have also been prepared in aroudonom with GAS8 Statement 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Guuonmonb. In evaluating how to define the government, for financial reporting purposes, the CRA has considered all potential component units. The definition of the reporting entity is based primarily unthe notion of financial ammuntaNlity,Aprimary government is financially accountable for the organizations that make upits legal entity. |tisalso financially accountable for legally separate organizations dits officials appoint uvoting majority ofunorganization'sgoverning body, and either Kioable tmimpose its will outhat organization m there is a potential for the organization to prov& 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 Aprimary government has the ability to impose its will on an organization ifKcan significantly influence the programs, projects or activities of, mthe level of services performed mprovided by, the n0anbafio.Afinancial benefit or burden exists if the primary government (a)inentitled hothe organizations' renomnmo;(b) islegally obligated' orhas othenwamassumed the obligation bo finance the deficits of, or provide financial support to, the organization; or (c) is obligated in eomo manner for the debt of the organization. Additiona|ly, the primary government has opomUnmo| mo unoiN|ity for the component mnft. In applying the above mitoNm.the CRAisucomponent unit nf the City. Govern mant-VVidoand Fund Financial Statements The government -wide financial statements (i.e., the statement mfnet posi0om and the statement of activities) report information onall ofthe non -fiduciary activities of the CRA. For the most pail, the effect of interfund activity has been removed from these statements; huwave, imtedbnd oeninoa provided and used are: nofo1Wmated. Governmental activities, which normally are omp�podod by taxes and intergovernmental mvenueu, are reported separately from business -type, actimtiex, which ma|y to u significant extent unfees and charges, for support. The statement cfactivttim demonstrates the degree Nwhich the direct expenses ofagiven funufiomursegment is offset by program revenues. Direct expenses are those that are o&udy Numfiflahle w4h u opuoifiu 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 ufa particular function or segment, Taxes and other items not properly included among program revenues are mpuUad instead as general revenues. Page 1 12 City of Ocoee, Florida Community Redevelopment Agency Notes to Financial Statements September 30, 2020 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 aind 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 government 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 government reports the following funds: 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, 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 government's policy to use restricted resources first, then unrestricted resources as they are needed. Assets, Liabilities, Deferred Outflowslinflows and Net Position/Fund Balance Deposits and Investments The government'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. Receivables and Payables All receivables are shown net of an allowance for uncollectiHes. 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 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 5%. The City and the County, are required to fund this amount annually without regard to tax collections or other obligations. Page j 13 City of Ocoee, Florida Community Redevelopment Agency Notes toFinancial Statements September 30.202V NOTE SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES (CONTMU20 Capital assets Capital mamots, which include property, plamt, equipment and imh»mmdume assets (e.g, ma#x, brid0no, oidwwm|ko, and nm�ii|ar iimma),are defined bythe CRf/acapitalization policy aoassets with aniniUall.individual cost oy$5.000mmore and mmestimated useful |iha in excess of one year. Such assets are recorded at historical cost or estimated hivtndoe| cost if purchased or constructed, Donated capital assets are recorded ut acquisition value otthe date ofdonation. Any assets purchased with CRA funds are conveyed to the City for ownership and maintenance upon completion of the project. /dyear 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 &ubiWUeaimthe applicablle governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the o8eoiwo 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 ofdebt issued is reported as other financing uuumao. Pnym|umm received on debt issuances are mpwhod as other financing sources while discounts on debt issuances are reported as other financing use& Deferredoutfluw&linflows of resources In addition to aamob, the statement of financial position will sometimes mpmK a separate section for deferred outflows of mmaumoa. This separate financial statement element, deferred outflows of resources, represents a consumption of net posifion that applies to a future period(s) and so will not be recognized as an outflow of resources (expenselexpenditure) until then, The CRAdoes not have any item that qua|ifiaufor reporting inthis category for the year ended September 30.2820. In addition to liabilities, the statement of financial position will momuNmma report m separate oachom 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 CRAdoes not have any item that qualifies for reporting inthis category for the year ended September 3Q.202O. Net position flow assumptions Sometimes the CRA will fund outlays for a particular purpose frorn both restricted and unrestricted resources, Inorder to calculate the amounts to report as restricted net position and unrestricted net position in the government-Wdo financial stmtemmnts, m flow assumption must be madmabout the order in which the resources are considered to be applied It in the CRA'spolicy to consider restricted net position to have been depleted before unrestricted net position is applied, Fund balance flow assumptions Sometimes the CRAwN| fund outlays for a partiomUar pmqmeo from both muk|dmd and unrestricted resources (the total of oommittod, assigned, and unassigned fund balance), In order to cm|rm|mte the amounts to report as oestridmd, oummiUnd, mooiQnod and unassigned fund balance in the governmental fund financial statements, m flow assumption must bomade about the order inwhich the resources are considered tobeapplied, |t|wthe government's policy toconsider restricted fund balance bu have been depleted Um< before using any of the components of unrestricted fund balance. Further when the components of unrestricted fund balance can be used for the sarne purpose, committed fund balance is depleted first, followed by assigned fund &e|mncm. Unassigned fund balance [xapplied 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 mouurcwu for specific pmrpuuoy. The CR4itself can exboN|vh limitations on the use cdresources through either commitment (committed fund balance) nrmnassignment (assigned fund ha[enon). Page 114 City of Ocoee, Florida Community Redevelopment Agency Notes to Financial Statements September 30, 2020 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 Commissioners 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 of Commissioners has maintained authority to assign fund balance, The CRA Board of Commissioners may also assign fund balance as it does when appropriating fund baIanice 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, New Accounting Standards In fiscal year 21020, the CRA implemented Government Accounting Standards Board (GASB) Statement No. 95, Postponement of Effective Dates of Certain Authoritative Guidance. This statement postpones the effective dates on certain authoritative guidance. There was no effect on beginning balances of the CRA. NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles 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 miflage 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. Page 115 City of Ocoee, Florida Community Redevelopment Agency Notes toFinancial Statements NOTE DEPOSITS AND INVESTMENTS Deposits All bank deposits were uuvem6 by Federal Depository |numnmmo or by collateral held in banks that are members odthe State of Florida's Collateral Pool auspecified under Florida law. Florida Statutes provide for collateral pooling by banks and savings and loans. This limits local government deposits to"authorized dmpmitohms". Investments The 0RA categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to md| an asset or paid to transfer m liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The CRA uses a market approach in measuring fair value that uses prices and other relevant information generated bymarket transactions involving identical or similar assets, liabilities, or groups of assets and liabilities, Aamnb or liabilities are classified into one of three |mmUu. Level 1 is the most reliable and is based mequoted 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 aamota. or liabilities, in markets that are not activo. Level 3 is the |omxt *aUub|e, and uvva e|Omi8omnt unubomnmb|o inputs that uses the best information available under the oircumstanuau, which indudev the CRA'o own data in measuring unobmnmbUo inputs. The CRA had no investments as defined by GASB Statement No. 72 as ufSeptember 3U' 2020, Th*CRA's investment polides are governed by Florida Statutes and City ordinances, City ordinance allows investments in any financial institution that imaqualified public depository ofthe State 'dFlorida mmidentified bythe State Treasurer, inaccordance with Chapter 28&ufthe Florida Statutes. Authorized investments are! 1. State Board nfAdministration Local Government Investment Pool (SBA LG|P) 2. Registered investment companies (money market mutual funds) 3. Money market funds and certificates uydeposit 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 ThaCKy's investment policy limits credit risk hyrestricting 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, h»nn repurchase agreements must be collateralized by U.S, Treasury securities and overnight (sweep) repurchase agreements must he collateralized by the full faith or general faith and credit obligations of the U.3. Government or U.S. Government Agency Securities. Securities of registered investment companies must be limited to U.S. Government obligations and to mpumhmoo agreements fully collateralized bysuch U.G.Government obligations, Custodial Credit Risk In the case of deposits, this is the risk that in the event of a bank faflure, the City's deposits may not hereturned toit. The Cfty'u investment policy requires that bank deposits besecured as provided byChapter 28U. Florida Statutes. This law requires local governments to deposit funds only in financial inohtuUonodeniQnokd as qualified public depositories by the Chief Financial officer ofthe State of Florida, and creates the PuhU|u Deposits Trust Fund, m multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls ifadefault prinsolvency has occurred, A1September 30,2O2&all u[the CRA'xbank deposits were inqualified public depositories. Pu8a11O City of Ocoee, Florida Community Redevelopment Agency Notes to Financial Statements September 30, 2020 NOTE 3 DEPOSITS AND INVESTMENTS (CONTINUED) For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments of collateral securities that are in the possession of an outside party. At September 30, 2020, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. 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 Brills, Notes and Bonds to a maximum maturity of five years. The maximum length to maturity for Certificates of Deposit is three years. NOTE 4 CAPITAL ASSETS Capital asset activity for the year ended September 30, 2020 was as follows Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital assets, not being depreciated: Construction in progress $ 57,830 $ 1,289,728 $ $ 1,347,558 Total capital assets, not being depreciated $ 57,830 $ 1,289,728 $ $ 1,347,558 NOTE 6 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 ormssions; 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 component unit of the City of Ocoee, Florida. For the year ended September 30, 2020, the CRA's tax increment revenues include $753,664 received from the City. In addition, the CRA reimbursed the City for services performed on behalf of the CRA such payroll and payroll benefits, paid during the year. Payment to the City for these services during the year ended September 30, 2020 was approximately $294,000. At year end, the City owed the CRA $156,896, primarily for grant revenues received by the City and not yet remitted to the CRA. Page 117 City of Ocoee, Florida Community Redevelopment Agency Notes to Financial Statements September 30, 2020 Pursuant to Florida Statute 163.387, listed below us 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, 2020: Source of Deposit: Tax increment $ 1,390,115 Grants 589,504 Total sources $ 1,979,619 Purpose of Withdrawal: Capital outlay $ 1,477,827 Salaries and benefits 294,020 Professional services 63,974 Miscellaneous 89,440 Total withdrawals $ 1,925,261 Page 118 Over Reports gaoNonh MagnoiiAvuue, Suite188 ��^ ^� Or�nd�Florida 3lans ���1���� � � U ww"^mcd|oniujavbcum INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND 8NCOMPLIANCE AND OTHER MATTERS BASED DNANAUDIT OFFINANCIAL STATEMENTS PERFORMED |N ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of Commissioners City of Ocoee Community Redevelopment Agency We have audited, 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 Stateo, the financial statements of the governmental activitieo, and each major fund of the City of Ouuaa Community Redevelopment Agency (the ^CRA"), as of and for the year ended Smptembur38. 2020, and the related notes to the financial statements, which collectively comprise the CRA"s basic financial statements, and have issued our report thereon dated April 19. 2021. 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 ([ntmmu| control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions mmthe financial statements,, but not for the purpose of expressing an opinion on tile effectiveness of the CRA's �nternal control,, Accordingly, we do not express an opinion on the effectiveness of the CRA's internal control, Adeficiency in internal control exists when the design moperation ofocontrol does not allow management memployees, inthe normal course of performing their assigned functions, to prevent, or detect and mnmd misstatements on a timely basis. A material 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 wmfity'v 8nmmdm| statements will not be prewuntod, or detected and corrected on a timely basis. A significant deficiency in a doUoimnoy, or combination ofdefidonoieu. in intemmU uonhn| that is |auu ouwum than a material weakness, yet important enough to merit attention by those charged with governance, Our consideration o(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 in(omo| omntmU over financial reporting that might be material mmeknemo or significant deficiencies. Gkmo these |imitaUonu, during our audit wa did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, However, material weaknesses may exist that have not been identified. Compliance and Other Matters As, part nfobtaining mexonmWe assurance about whether the CRA'o Ooomcio| statements are free from material misstatement, we performed tests of its compliance with u*dmin provisions of |uwm, regulations, contracts, and grant agreemonW, noncompliance with which could have a direct and material, effect Oil the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accor6rigly, we do not express such an opinion. The mao0u ofour tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing 3tandam& Purpose of this Report The purpose of this report issolely to describe the scope of our testing of internal control and compliance and the results of that hm0nQ, and not to provide an wpin�om on the mKan§vmnmoa of the entity's internal xnnhN or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance, Accordingly, this communication imnot suitable for any othmrpurpomm. Orlando, Florida Ne8osicd partner Pmgo11S puz 934 Noi Lh Magmolla Avenue, Suite 100 Orlando, FlorWa 32W3 407-843-5d06 www.mcdirmitdavis,coin MANAGEMENT LETTER Honorable Board of Commissioners City of Ocoee Community Redevelopment Agency, Florida Report on the Financial Statements We have audited the financial statements of the City of Ocoee Community Redevelopment Agency, Florida, ("CRA"), as of and for the fiscal year ended September 30, 2020, and have issued our report thereon dated April 19, 2021. 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 Comptroiler General of the United States: and Chapter 10,550, Rules of the Florida 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 the Financial Statements Performed in Accordance with Government Auditing Standards and independent Accountant's Reports on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General, Disclosures in those reports, which are dated April 19, 2021, 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 annual financial audit report. There was no preceding annual financial audit 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 and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been disclosed in the notes to the financial statements. Financial Condition and Management Section 10.554(1)(i)5z. 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 condifion(s) met. In connection with our audit, we determined that the CRA did not meet any of the conditions described in Section 218.503(l), 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 for the CRA 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. Additional Matters Section 10.554(1)(l)3,, Rules of the Auditor General, requires us to communicate noncompliance 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 have any such findings. Purpose of this Letter Our management letter ins 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 City Commission and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. 7*w 7011 M-1 ( Orlando, Florida April 19, 2021 Page 621 934 Nordi Magnolia Avenue, Suite 100 Orlando, Horkia 32803 ��V c D i rnrf� K 407 843-.51106 www.rncdh-n)itdavis.com INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES The Honorable Board of Commissioners City of Ocoee Community Redevelopment Agency, Flonida We have examined City of Ocoee Community Redevelopment Agency's, (the CRA) compliance with the requirements of Section 218A15, Florida Statutes, during the year ended September 30, 2020. 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 and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the CRA's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances, We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the CRA's compliance with spedfied requirements. In our opinion, the CRA complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2020. Orlando, Florida April 19, 2021 the partner Page 122 934 North Magnolia Avenue, Suile .1.00 Orlando, Floida 32803 407- 84 3.5406 www.incditrnitdavis.com INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 163387(6) AND (7), FLORIDA STATUTES The Honorable Board of Commissioners City of Ocoee Community Redevelopment Agency, Florida We have examined City of Ocoee Community Redevelopment Agency's (the CRA) compliance with the requirements of Section 163.387(6) and (7), Florida Statutes, during the year ended September 30, 2020, Management is responsible for the CRA's compliance with those requirements. Our responsibility is to express an opjnion 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 and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the CRA's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion, Our examination does not provide a legal determination on the CRA's compliance with specified requirements. In our opinion, the CRA complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2020, Orlando, Florida April 19, 2021 alEy JPX;t�-'d partner Page 123