05-06-14 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 ®ulations
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.