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Audit Report - 1987-19881 1 1 1 1 1 1 1 1 1 O-~~c~ CITY OF r~tlaKtic ~eaek - ~latida ANNUAL FINANCIAL REPORT SEPTEMBER 30, 1988 ~~~ ~~~~-~~ CITY OP ATLANTIC B¢ACH ANNDAL FINANCIAL BBPOHT FOH THE FISCAL YEAH ENDED SBPTEtgBEH 30, 1988 TAHLH OP CONT¢NTS pTae Independent Auditors' Report 3 Gea 1 Pu P' 1 Combined Balance Sheet - All Pmd Typos and Account Groups 6 Combined Statement of Revenues, Ezpeaditures and Changes is Pund Balances - All Goverrvnental Pund Types and Ezpeadable Tzust Punda 10 Combined Statement of Revenues, espsaditurea and Changes is Puad Balances - Budget and Actual (GAAP Basis) - All Goverrvneatal Fund Types yZ Combined Statement of Revenues, Ezpenses and Changes is Retained Earnings/Pond Balance - All Proprietary Pund Types and Pension Truat Fund 14 Combined Statement of Chaagea in Financial Position - All Proprietary Fund Types and Pension Trust Fund 15 Notes to Financial Statements 17 C b' d d I d" "d 1 P d o General Pund Schedule of Ezpeaditurea - Budget and Actual 37 S 'al Re ue F nd Combining Balance Sheet q0 Combining Statement of Revenues, ¢spenditures, and Changes in Puad Balance qy ?gyp 'eta y P d T es E t s Pund Combining Balance Sheet qq Combining Statement of Revenues, Ezpenses and Changes in Retained Earnings q5 Combining Statement of Changes is Financial Position 96 YiQuciarv Yunda Combining Balance Sheet 51 Pane Statistical Sec[ion (Unaudited) Pension Revenues by Source and ¢:pensea by Type 55 Computed Pension Coatributioq Comparative Schedule 56 Analysis of Pension Funding Progress - Last Ten Yearn 57 R t Pede al sad St t P'n ial A t Independent Auditors' Report on Supplemental Schedule of Federal and State Financial Assistance 61 Supplemental Schedule of Federal and State Financial Assistance 64 Independent Audi tots' Report On Compliance Mith Lavs sad Regulations That May have a Material Effect oa the General Purpose Financial Statements 67 Independent Auditors' Report oa Compliance rich Lars and Regulations Belated to Nomnajor Pedetal and State Pigancial Assistance Programs 5g Independent Auditors' Report on Internal Accounting Controls Based Solely on a Study and Evaluation Made as Part of an Audit of the General Purpose Financial Statements 71 Lndepeadeat Audi tore' ea port on Internal Controls (Accounting and Administrative) - Used in Administering Federal Pinagcial Assistance Programs 75 Report oa Internal Controls and Compliance rich Laws and Regulations gl Certificate of Continuing Professional Education 91 Responses from Management g; 1 1 1 Deloitte Haskins ~-Sells Cendietl Public Accoumants I NDEPRNDENT AUDITORS' REPORT Honorable Mayor, City Commission and City Mmager City of Atlmtic teach, Plorida: Salle 1240 200 West Forsyth Sheet Jacksonville. Florida 32202-4371 X904) 354-8333 ITT Telea: 4995642 He have audited the accompmyiag general purpose finmcial etatemeata of the City of Atlantic Reach, Plorida as of September 30, 1988 and for the year then ended, as listed in the accompmying table of contents. These finmcial statements and the supplemental statements and schedules discussed belox are the responsibility of the City's management. Our responsibility is to ezpress as opinion on these financial statements based on our audit. tie conducted our audit in accordmce with generally accepted auditing standards. Those stmdards require that we plm and perform the audit to obtain reasonable asaurmce about whether the general puzpoae finmcial statements are free of material miestatemeat. An audit includes ezamiainq, oa a test basis, evidence supporting the amounts and discloaurea is the general purpose financial statements. An audit also iacludea asaesatng the accounting principles used sad sigaificmt estimates made Dy masaagemeat, as well as evaluating the overall finmcial statement presentation. We believe that our audit provides a reasonable Davis for our opinion. In our opinion, such general purpose fiamcial statements present fairly, in a21 material respects, the finmcial position of the City of Atlantic Beach at September 30, 1988 and the reeulta of its operations and the chmgea in financ}a1 position of its proprietary fund types and similar true[ fuada for the year then ended is conformity with generally accepted accounting principles. Our audit vas made for the purpose of forming an opinion oa the general purpose financial statements taken as a whole. Tha combining, individual fund and account group fiameial atatameata and schedules listed in the foregoing [able of coateata are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such supplemental information has been subjected to the auditing procedures appied is our audit of [he general purpose financial statements and, in our opinion, is fairly stated in all material respects when considered to relation to the general purpose financial statements taken as a whole. The statistical section, as listed in the foregoing table of contents, has not Dees subjected to the auditing procedures applied in the ezamiaatioe of the general purpose financial etatemeata and, accordingly, we express no Opinron. DELOITTE NASRINS 6 SELLS January 18, 1989 _ 3 _ Tbia Qage intentionally left blank. ' 1 1 1 / r ~. 1i .7 :).1 ~ _ 4 1 1 CLNH POSB YIB I S2AT@~IPIS 1 1 1 1 CITY OF ATLANTIC 9EACH, FLORTDA COMBINED BALANCE SHEET ALL FIAJD TYPES AND ACCOUNT GROUP$ Gavemrntal land Tvpes Special Debt Capi lal Notea 4!^eral Rsvymyl $lrvice Prni°cts A$$ElS Cash and investAwnes 2 (1,072,697 (286,700 (28,665 f 99,278 O Char cash and investments Accounts receivable 2}g,885 27,220 Inventories 88,572 Oue from other goverments 36,560 Oue from other funds 8 8,118 oevo:les s,o9D Prepaid eapensas 109,630 Other assets 0.esl ricted Assets: ~dah dnd 1nVlSflllnLi 2 Invested cash riLh fiscal agent 2 - Due from other goverMents Construction in progreSS 3 Property, plant and e¢uipment - net 3 Amount available in the debt service fund far payment of long-tam debt Amount to be provided for payment of long-tern bonds Amount to b! provided for payment of long-tem Portion of coryenzated absences TOTAL A$$Ei$ l1.A6a. U7 f3j3.z6n ~ t17~6 cr~2 See notes to /inancf al statements. (continued) 1 1 1 Proprietary Fiduciary Fund Tvoes Fund Tvoss accoun t Grauoi Espendabl• General Gensrat Totals and Pension Lony-Tone Fi ced (Nero d 0 1 1 Fntero ri se Trust gblieatf ons assets ]~ (1,925,370 (1,846,482 f 5,259,192 (4,805,637 66.719 66,719 84,626 179,066 30 425,205 4M,B44 44,271 92,783 74,363 47,738 84,298 32,564 8,418 3.485 5.000 5,000 109.630 B7,Ou 10,034 10,034 10,034 1,711,858 1,711,856 1,657,818 786,073 186,073 310,923 113,736 246,462 216,462 1,1;0,100 11,734,282 (2,727,326 14,461,608 12,677,132 f 28.665 28.665 23,860 1,060,495 7,060,495 789,941 89.182 99.249 11 ] 7 a a 423.845.624 S2 acn au _7_ fi(i ~,'~,'} clrr of ATLANTIC BEACH, aoatDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOIMT GAWPS (Conti nub) Gove rrimental land Tvw SDSCi aI Debt Capital 719.tlE General Rera^ue Service Oroiects LIABILITIES AND F11ND EWITY LIABILITIES: Accounts payable and accrued liabilities S 9-0,950 S B84 S 73.531 Due to other funds B 8,418 Current portion of revenue bonds payable Current liabilities (payable from reztri teed assets): Accounts payable Contracts payable Revenue bonds payable 4 Accrued interest payable 0.evenue bonds payable - long-tern portion 4 Deposits 5,000 Deferred <ampensaii on 6 General obligation bonds q Revenue bonds paY+ble Accrued capansated absences, long-tern q Total liabilities x.950 9.302 ~ 73.531 FUND EQUITY: Contributed Capf cal Investment in general flsed assets Retained earnings: Reserved for renesrais and replaceMnts Reserved for debt service Other reserves Unreserved retained earnings Fund balances: Reserved for payment of long-tern debt - 28,665 reserved for prepaid espenset 109,630 Reserved for inventories 48,512 Reserved for police training and investi gati Ons Reserved for roti repent Other reserves 120,261 Unreserved fund balances 1.08x.789 313.958 52.971 local fund equity 1.363.192 313.958 28.665 52.971 70TAL LIABILITIES AND fU1D EWITY 51.463.1x2 ~~ ~~r 512~.~2 See notes to financial statenentt. -g „7~:,~ t ij l::i 1 L 1 a 1 1 Proprietary Fund Tvoes Enterori se f 211,082 3,368 60,000 27,338 3.795,725 225,999 0.323.512 5,067,915 Fiduciary Fund Tvpes Expendable and Pension Truzt Aeeeunt Grauos General General Lon¢Tenn Fixed %ltoations Assets f 66,779 f 217,000 872,160 89.162 66.719 1.178.342 (2,727,326 1,383,055 295,214 132,025 a,835.695 11.713.904 S Ifi.037.416 5,614 1,888.636 1.894.250 51.960.969 Totals (Menorandun Onlvl 1981 3 380,447 f 334,813 8,418 3.485 3.368 3,600 103,811 111,339 60,OOD 55,000 27,338 28.438 3,7%,725 3,972,615 230,999 173,650 66,719 84,626 217,000 262,000 872,160 551,801 89.182 99.249 5.751.356 5.784.230 5,067,915 4,%1,537 2,727,326 2,271,790 1,383,055 1,614,830 295,214 227,484 132.025 111,571 4,835.695 d,168,930 28,665 23,861 109,630 86,664 48.572 27,895 5.610 15,197 1,888,636 1,694.787 120,261 82,658 7 457.718 1.448.922 18.094.266 16.566.126 t2i,g4s,622 t22 acn iu _g_ Lu5246 CITY OF ATLANTIC BEACH, FLORIDA [OMBINEO STATEMENT Oi REVENUES, IXPFNDI7URES AND CHANGES IN fU10 BALANCES ALL GOVERNMENTAL FUND TYPES AND IXPENOABLE TRUST FURS FOR THE FISGL YFAR FNOED SEPTEMBER 30 1988 Revenues: Taxes licenses and pe mils Federal shared revenues State shared revenues Other intergovernmental revenues [hargxs for services Fines and forfeitures Court cost Confticated props rty Interest in<oeR Miscellaneous revenue Total revenues Expenditures: Current: General goverment Public safety Roads and streets Intergovermentai servtcas Parks and recreation Debt service: Principal rata repent Interest and fiscal charges Capital outlay Total expenditures E.<esf of revenues over (ands r) expenditures Other financing sources (uses): Band proceeds Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess of revenuef and other sources over (under) upends [ores and other uses Fund balances, October 1, 1987 Fund balances. September 30, 1988 See notes to (spent( al statements. v 1 F n $PK/a1 Debt Capital Boles General flRY90RR Serviee Preieets f 748,955 f353,017 (62,984 519,799 878,031 21,481 16,570 4,620 %.591 %,865 28 887 2,577 f 27 224 . 2.390.258 . 74 / _¢$,.5§7 _jj.jQ4 659,540 32,365 1,2M,215 401,439 40,6% 703,786 139,997 54,816 412 807 2.M9.877 . 32.3 5 191.913 807.112 (59.619) 342.133 j)ZQ,y4j) (780.188) 407,271 B 309,571 10.884 134,056 417,561 8 (302.120) 1 4 ) _ 7.451 (250.567) 134.056 ,Sf}.Zj (52,168) 9).566 4,804 44,584 1.115.360 222.392 23.861 8.387 ;L363.192 331 948 f..2~~` S 52.971 (~ ..1'7 -70- 1 f 1 1 1 1 Fiduciary FunC totals Esvendable (Menarandun Only) Trust (1,164,956 (1,030,501 519,799 509,819 881 899,512 793,008 16.510 13,601 4,620 3,139 f 4,000 100,591 96,404 367 367 407 6,500 6.500 1,127 877 700,319 92,761 612 56.723 26.712 12 39¢ 2.869 897 2.569.363 2,875 694,780 776,195 19.064 1,263,279 1,147,739 101,439 411,456 40,695 34,671 103,788 53.389 139,997 67,864 54,816 34,897 807.412 fi33.792 21,4}4 3.506.406 3.1fi0.003 (9.583) (636.509) (591 640) 407,211 315,601 872,072 479,150 (563.571) 1192.873) 715.712 601.878 (9,583) 79,203 10,238 7 1 7 S 5.614 1.685.197 31.]64.900 1.674.959 S1.fi85.197 _)7 CITY OF ATLANTIC BFACM, FLORIDA COMBINED STATEMENT OF REVENUES. IXPENOITURES AND CHANGES IN FUND BALANCES DUDGET (GMP BASIS) ANO ACTWL ALL GOVERNNENTAL NND TYPES FOR THE fISCAL YEAR ENDED SEPTEMBER 30. 1 General la nd So eeS al Reven ue Funds Variance Variance Favorable Favorable Budeet Actual (UnfavorablA) 8udaat Actual Nnfavorabld Revenues: Lases S 706,346 f 748,955 f 42.809 (325,000 (353,017 (28,017 Licenses and Remits 508,995 519.799 10,804 Federal shared revenues State shared revenues 847,838 878.031 30.193 63,750 21,481 (42,269) Other intergaverMental revenue 14,000 16,510 2,510 Cfi arges for services 3,100 4,620 1,520 Fines and forfeitures 88,000 %,591 8,591 Interest intone )5,000 96,865 21,865 Miscellaneous revenue 24.327 28.887 4,560 _ Total revenues 2.267.606 2.390.258 122.652 388.)50 374.498 14 ) 6 penditu rez: Current: General government 688,215 859,540 Public safety 1,251,652 1,244,215 Roads and streets 408,881 401,439 Intragovermental services 41,339 40.8% Parks and recreation 108,486 103,788 Debt service: Principal reti repent Interest and fiscal charges Capital outlay Total espendi CUres 2A98.573 2.449.877 Esc ess of revenues aver (under) eapertdi lures (230.967) (59.6197 Other financing sources (uses): Bond proceedt Operating transfers in 309,571 309,571 Operating transfers (out) (301 6%) (302.1207 Tptal other financing sources fuses) 4.8)8 7.451 Escess of revenues and other sources over (under) espanditu res and other uses (226,089) (51,168) Fund balances, October 1, 1987 1.018.112 1.415.360 fund balances, $eDteMer 30, 7988 f 792.353 al x6'+.192 See notes to financial statements. 28,875 7,437 7,442 441 4,6% 48 696 74.650 32.365 42.285 171.348 31A.100 342.133 38.033 29.400 10,884 (18,516) 2.573 (300.000) 1 4 1) 38.549 -2.;ili LZZQ.444) 5254.5?) ~l 173.921 43,500 91,566 48,066 396.978 32.2.342 322.342 L2-.93Y 3 43_soe 33]3358 5270.458 40,750 32,365 8,385 t 33,900 33,900 ' (;val.;n -12 1 1 1 1 1 1 1 1 1 Totals Oebt Service land 4oi tal PreL cts Fund ( Merorandun Onlv) Variance Variants Variance favorable Favorable Favorable Bud4et Actual {Unfavorable) Bud4et Actual (Unfavorable ) Budeat Aetusl (Unfavorable) 560,938 5 62,984 5 2.046 51,092,284 51,161,956 5 72,672 508.995 519.799 10,804 911,588 899,512 (12,076) 14,000 16,510 2,510 3.100 4,620 1,520 88.000 96,591 8,591 1,000 2,577 1,577 76,000 99,442 23,442 f-jjjj 9 5 z7.zz4 24.327 56.111 31.784 61.938 _§~fZl 3.623 27.22 0 27.224 2.718.294 _2.857.541 139.247 728,985 891,905 37,060 1,251,852 1,244,215 J,437 408.881 401,439 7,442 41,339 40,895 444 142,388 703,788 38,598 150,378 139,997 10,381 150,378 139.997 10,381 58,173 54,816 3,357 SB,173 54,818 3,357 f 807.635 807.412 223 807.835 807.412 223 208.551 1 a 1 13.738 807.835 807.412 223 3.589.409 3.484.487 104.942 14 7 ) (129.252) 17.381 (807.835) f780. ie8) 27.M7 (871.115) (628.928) 244.189 407,211 407,211 407,211 407,211 136,613 134,056 (2,557) 311,347 417,561 106,214 786,931 872,072 85,141 (604.693) (563.571) 41.122 i 1 1;d.056 (2.557) 718.558 d 7 106.214 589.449 715.712 126.263 (10,000) 4,804 14,801 (89,077) 44,584 133.661 (281,666) 88,788 370,452 23.874 23.861 (13) (168.445) 8.387 175.332 875.371 1.870.000 794.829 _ )3_ JV:)r~7~ CITY OF ATLANTIC BEACH, (LORIM COMBINED STATEMENT OF pEYENUES, EX PENSE$ AND CIUNGES IN RETAINED EARNINGS/FUND BALANCE ALL PROPRIETARY NND TYPES AND PENSION TRUST iUA FOR THE FISGL YG0. ENDED SEPTEMBER 30 1988 Proprietary Fiductary lands land Totals Pension (Menorandue Only) Notes Enterori se Trvs! ]~ ]~ Operati n9 revenues: Customer charges f 2,430,517 S 2.430,517 S 2.261,400 Employer's contributions 5 S 126.740 126,740 76,884 Employee's contra buttons 5 12,327 12,327 4,205 State contributions 5 47,738 47,738 43,011 Earnings on investarentz 88,814 68,814 104,619 Other income 62.689 62.889 95 896 Total operating revenues 2.493.206 255.619 2.748.825 . 2.SBfi.015 Operating expenses: Personal services 677,643 877,843 511,647 Contrac[ual services 248,876 248,876 d29,376 Supplies 210,743 210,713 97,240 Repairs and nai ntenanca 220,308 220,308 95.292 Meat, light and power 1%,711 1%,712 175,765 Depreciation 443.651 -443,651 353,379 Other expenses 71,087 71,087 76.113 Retirement benefits 5 62.840 62 840 53.796 Total operating ea penses 2.071.020 62.840 2.133.8W 1.792.608 Operstin9 intone 422.186 192.779 614.965 793.407 Non-operating intone (expenses): Connectf on charges 384,415 384,415 924,176 Sewer generation charge 92,634 92,634 89,585 Interest income 294,471 294,471 236,091 Interest expense (3x8.095) (348.095) (361.638) Total non-operating intone 423.125 423.425 888.211 Net intone before operating transfers 845.611 192.779 1.038.390 1.681.621 Operating transfers in (outl (309 571) 1.070 (308 501) (286.277) Net intone 536.040 193.849 729,889 1,395.344 Add depreciation on fixed assets acquired by shared revenues externally restricted for capital acquisitions 157.134 157.134 117.837 Increase in retained earnings/fund balance 693.174 193,849 887,023 1,507,181 Retained earnings/fund balance, October 1, )987 5.952.H/5 1.69x.787 7.647.602 b.1b,42I Retained earnings/funE balance. September 30, 1988 S fi.6x5.%9 ~~ a p,caq_fi25 3 See notes to financial statements. - 14 i)U ;T i+J ~ 1 1 i 1 i 1 1 1 1 t 1 1 1 f CITY OF ATLANTIC BEACH, FLORIDA COMBINED STATEMENT OF (RANGES IN FINANCIAL POSITION ALL PROPRI ETA0.Y fUNO TYPES ANO PENSION T0.UST FUND FQ_R THE FISGL YEAR ENDED SEPTEMBER 30 1988 Propri atary Fiduciary Funds Fund Totals Pension (MenoraMua Only) Enttrori sa Trust ~ ]~ Financial resources rare Provided by: Operations: Net intone Item not requiring working capital during the period - deprecf anon Hocking capital Drovided by operations Increase in contributed capital Oec rease in restricted assets Increase in current liabilities Payable from restricted assets Total sources of co rkin9 eaPi sal Financial resau rtes we ra used for: Acquizi ti on of property. Plant and equipMnt Increase in restricted assets Reduction of bonds payable Decrease in current liabi if ti es payable from restricted assets Total uses of working capital Net increase in corking capital Changes in Components of Mocking Capital: Increase (decrease) in torrent assets: [ash and investments Accounts receivable Inventori¢s Other current assets Increase in current assets (Increase) decrease in current 1LbS15 ti es: Accounts Payable and accrued It abili tfes Interest payable Customer deposits Current portion revenue bond payable (increase) in current 1l abili ti et lncrease in corking capital See nOtet t0 fipanN dl tLatMtOLP. f 536,040 (193,849 403.651 979,691 193,849 263,513 338,867 1.582.071 193.849 888,954 154,321 176,890 211.253 1.431.118 f 286,640 (146,111 (2,135) 47,738 (7,690) 5.493 282.308 193.849 (74,538) (57,349) 232 (131.fi55) f 150.853 319]"~ f 729,889 (1,395,344 443.651 _353.379 1,173,540 1,748,723 263,513 7,414,661 338,867 786,455 _,3.946 1.775.920 4.023.785 888,954 2,401,791 151,321 218.394 176.890 162,465 211.253 212.500 1.431.118 3.005.150 3 3aa"sD2 ~~ f 432,757 (1,072,380 45,603 19,320 (7,690) 2,335 5.493 476.157 1.704.035 (74,538) (34.758) (57,349) (49,261) 232 (1.381) (131.855) (85.400) S '+a4 ~2 f7 p18.6at ' -15- i 1 1 1 1 1 This page iatantionallp left blank. ' 1 (;~~~~~i~;)•~ - 16 - CITY OP ATLANTIC BEACH, PLOEIDA ' NOTES i0 PINANCIAL STATS!ffiNTS SEPTEMSSR 30. 1958 1. SU:AAARY OP SIGNIYICANT ACCOUNTING POLICIES The City of Atlantic Beach, Ploride (the "City") is incorporated and operates under a form of goverwaeat rhich comprises an elected City Commission (four Commisaionera and a Mayor-commiaaioaer) end provides, under the administration of an appointed City Manager, the folloriaq aerviceas public safety (police sad fire), public works (streets and infrastructure), recreation, sanitation, planning, aoainq, rater and newer aervicea and general administrative services. ' This report includes the financial atataments of all of the funds and account groups required to account for those financial activities rhich are administered Dy and under the jurisdiction of the Mayor and the City Commission. Tha accounting policies of the City conform to n generally accepted ' accounting principles as applicable to govarnmenta. The following is a summary of the more significant policies used in the ' preparation of these financial atatemente. A. FOND ACCOUNTING The accounts of the City are organised oa the basis of funds or account groups, each of which is conaidared a separate accounting entity. The operations of each fund ere accounted for using a ssparate set of ' self-balancing accounts which Coapriae Ste aaeetn, lieb131tiea, fund equities, revenue and ozpsadituraa or ezpeneea. Tha various funds ere grouped by type in the financial stateasenta. The folloriaq fund types and account groups are used by the Citys ' Governmental Puada General Pund - Tha General Pund is the general operating fund of the City. It is used to account for all financial resources ezcept those required to be accounted for is another fund. Soeci al Eevenue Pund - The Spacial Bevenue Punda are used to account for the proceeds of specific revenue aourcea (other than major capital projects) that are legally reatrictad Co ezpeadituren for specified ' purposes. 9ebt Service Pund - Tha Debt Service Pund is used to account for the ' accumulation of resources for, sad the payment of, long-term debt principal, iatereat and related coats other than Doada payable from the operatioaa of the enterprise Euada. ~p'[al P ~ to P d - Capital Projects Punds are used to account Eor financial resources Co ba used for the acquisition or coantructioa of major capital facilities (other than those flaaneed by proprietary and special revenue funds). - 17 - ~i U~. .::)'~ CITY OF ATLANTIC BHACH, PLOBIDA NOTES TO FINANCIAL STATHMENTS Proprietary Puad Enterprise Panda - Hnterprise Puade ere used to account for rater, sever and sanitation operations rhich are financed end operated is a manner similar to private buaiaeas eaterpriaea. The coats of providing goods or aervieea to the general public are financed or recovered primarily through user charges. Fiduciary Fund Trust sad Agency Panda - Trust Yunda ars used to account for assets held as a trustee or agent Dy the City for others. Tae Peanion Trust Pund is accounted for in esaeatially the name mamer as propriatarp fuada. Tae Hzpandable Trust Puad ie accounted for is eaeentially the same manner as gowaramantal funds. Agency funds are custodial in nature (aaseta equal liabilities) and do not involve measurement of results of operations. Accomt Grouoa General Lonc-Term Obliaatioae Account Grouo - Ta;6 account group is used to account Eor tae outstanding principal balances of long-term debt and other long-term liabilities other than those payable from the operations of the enterprias funds. Geaera3 Pized Asset Ac t G ~ - Thia account group is used to account for all fired aseata of the City other than taoee accounted for in the entarpriae Puada. B. BASIS OP ACCOUNTING The accounting sad reporting treatment applied to a fund is determined by its measurement focus. All Governmental Panda sad HzpeadaDle Trust Yunda are accounted for on a apeadiaq or "financial flow" measurement faeue. Thin mesas that only currant aaee[a and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable reaourcea." Governmental fund operating atatementa preaeat increanea (revenues and other financial aourcee) and decreases (ezpeaditurea and other financing uaea) in net Warrant aaaeta. Accordingly, they are acid to present a summary of aourcee sad uaea of "available spendable resources" during a period. The Governmental Pund Types end tae 8zpeadable Trust Pund use the modSfiad accrual basin of eccountinq. Under the modified accrual baaia, revenues are recogaiaed is We accounting period in which they become available and measurable. E:peaditurea, other than intezeat on general long-term debt which is recorded vhea due, are recogai:ed in Che accounting period when incurred. ~~ -~ [" 1 1 1 1 ' CITY OF ATWNfIC BEACH, YLOBIDA NOTES TO PINAHCIAL STATEMENTS SEPTEMBER 30. 3988 A31 Proprietary Pmda and the Pension Trust Pmd ors eccomted for on a ' cost of services or "capital maiatenmce" meaauremeat focus. This memo that all assets and ell liabilities (whether current or non-current) associated with their activity are included on their balmce aheete. xheir reported fund equity (net total aaaeta) ie segregated into ' contributed capital and retained earainga compoaanta. Proprietary fund type operating etatemente present incraaase (revenues) and dscreeaea (e:penaea) in net total asaeta. The Proprietary Pmd Types and Pension Trust Pmd uea the accrual baeia of accomting. 8eveaue ie recognised then earned and ezpanaea are recognised when incurred. Ma[er, serer and emitation aervicea era ' billed to customers in advmca on a quarterly cycle. A receivable is recorded at year end for mpaid (delinquent) billings lees m al lormce for those considered mcollectible. C. BUDGETB ' General governmental revenue and ezpendituree accounted for in budgetary fmda are controlled by a budgetary sccomting ayatem in accordmce rith various legal requirements rhieh govern the City's operatioaa. Budgets are mcnitorad et varying levels of clanaification detail, horevar, ' e:penditurea carrot legally ezceed total appropriatioaa of tae individual fund level. The Ci[y currently does not use m eacumbrmca eccomting system. Budgets have been adopted Eor all Governmeatel Pmde (General, Special Revenue, Debt Service and Capital projects Pmda). The City Manager ie authorized to traaaEer budgeted aeamtn ri[hia depaztmanta rithin my ' fund, however, my raviaioae tact increase the total ezpeadi[urea of my department or fmd count be approved by tae City Commiaeiaa. All necessary supplemental appropriatioaa rare adopted by the City Commiaaion ' as part of a quarterly budget revier process and are included in the reported budgetary data. Tae budget presented oa the Combined Statement of Revenues, Ezpenditures and Chmgea is Pmd Balmce - Actual and Budget ' - is prepared on a GAAP basin. D. CASH A_~ INVESTMENTS E:caps there prohibi tad, cash resources of the individual fmda era combined [o form a pool of cash and iavaatmenta. Iavestmeata Sa the Pooled Caah Pmd coaaiat primarily of iaveetsd cash and certificates of ' deposit which mature in one year or lane. Interest income earned on tae pooled cash and iaventmeata ie distributed [o tae appropriate fmda boned oa the average monthly balmce of iaveataanta in each fmd. "Other cash and investments" repreaente employee deferred eompenaatioa whica is ' managed by the International City Mmagera Asaociatioa (ICWI). - 19 - ' ~/li:)~7fi CITY OF ATLANTIC HSACH, PLORIDA NOTES TO PINANCIAL STA.Sei~NTS In addition to their equities is the pooled ceah ford, cenh and investments of the 6aterpriae Pmde include interest bearing deposits held by the State Hoard of Adminiatrstion rhich are restricted as to their use. Iaveetmeata of the Pension Trust Pmde are managed by m iaveatmeat advisor and consist primarily of mutual Emd inveetmeata. Investments are valued at coat, szcspt Eor the invastmentn of the deferred compenaatioa and peaaion trust fords, rhich era valued at market (See Note 2). e. INVeHTDeles Iaventoriea, conaiatiag principally of ezpendable materials, supplies and fuel, are determined by physical eomt at the Ci[y'a year-and and are valued at [he lover of coat (first-ia, first-out) or market. During the year inventory in the General Pmd is recorded as m ezpeaditure at the time of purcbeee (purchaas method) and converted to [he consumption method for fiamcial etatsment purposes. The inventory balmce reported ie offset by a ford balmce reserve which indicates that it dose not conatituta "available apendabls rssourcee" even though it is a component of net current aeeete. F. RRSTRICTSD ASSeTS Certain enterprise ford aeeete are rauired to be segregated from other current aeeetn due to various bond indenture agreements and City Ozdinmcea. These aeeete are legally restricted for specific purpoaee, such as debt service, aer construction, and renevala and raplacemeata. G. ACCOVNTING POS PIXSD ASSeTS Proprietary P ads - Capital ezpanditurea made for revenue-producing assets, rhich are employed in operations that ere accomted for in the proprietary fmda, are capitalised at historical coats and depreciated using the straight-line method over their eetimatad useful liven as Eollors: Buildings and improvements a0 peers Improvements other thm buildings 10 - 50 yearn equipment 3 - e0 years Contributed aeeete are recorded et fair market value at the date of contribution. Depreciation recognised oa assets acquired or coaatructed through resources ezteraally restricted for capital acquiaitiona is closed to the appropriate contributed ford equity eceomt. -30- 1 1 1 1 1 1 1 1 1 CITY OP ATLANTIC BEACH, PLORIOA NOTES TO FINANCIAL STATENEN2S Gea 1 Pi:ed Aa eta Ac ount G n - Yized aaeete used in governmental fund type operations are accounted for in the General Pized Aaeeta Account Group, rather than in govermiental funds. All fi:ed aaeete are valued at historical coat. Donated fazed aaeete are valued at their estimated fair value on the date donated. No depreciation hen been provided oa general fazed assets. public domain ("infrastructure") general fazed aaeete such as atreata end sidewalks that era generally immovable and of value only to the City of Atlantic Basch hove not bee¢ capitalised. H. ACCOUNTING POR LONG-TERN OBLIGATION6 Long-term obligatioan, general obligation or revenue bonds, used [o finance proprietary fund operations end payable from revenue of the proprietary funds are recorded in the applieeble fund. General obligation bonds sad other forme of long-term oDligatlone supported Dy general revenue are obligntiona of the City as a rhole and not its individual coaatituent funds. Accordingly, aucD umietured obligations of the City are accounted for is the General Long-Term Obligations Accovat Group. (See Note 4). I. Accumulated unpaid vacation and nick pay era ecerued rhea incurred in proprietary funds. The amount of sccumulated vecatioa sad nick pay recorded in the govermental funds ie Chet amount, adjusted to current salary costs, which ie ezpacted [o be liquidated with ezpendable available financial reaoureae. Daly the current portion is reflected is the Emda. The remainder of the liability is reported in the Ganaral Long-Term Obligatioaa Account Group. The quidelinea of Financial Accounting Standards Board Statement No. 43 rare applied in determining the liability for both govarmentsl and proprietary funds. J. PROPERTY TA7(ES The assessment of all properties and the collection of all property tau<ea are made through the Property Appraiser sad Taz Collector of the City of Jackaoaville. General property ta:ea are recorded ae received in cash, which approzimates ta:ea levied, lees dincoua[e, for the current fiscal year. R. INTERPUND TRANSACTIONS During the course of normal opnratioaa, the City bas various transac[foae between funds [o construct aaeete and comply with local ordinances and other legal reatrictioaa. These tranaectioae ere reflected as operating tranafere (See Note 8). - 21 - ~~ cam; ;~ ) :) ~7 CITY OF ATLANTIC BBACB, FLORIDA t NOTES TO FINANCIAL STATEMENTS $gpTEMBBR 30 1988 ' L. PENSlUN PLANS , The City accounts for its Peaaioa Plana under Financial Accounting Standards Board (YASB) Statement No. 35 "Accounting and Reporting by Defined Benefit Pension Plana". The pension plans cover substantially ' all of the City's full time employees. The City records pension costa is the period salaries are earned. Pension espenae includes normal coat plus amortiaatioa of past service coat over 25 years (See Note 5). , M. DEPBRRBD COMPENSATION PLAN Thin City reports its internal Revenue Coda Sactioa i57 deferred compeaaatioa plan as m egencp fund is accordance rith Governmental Accounting Standards Board (GASH) Statement No. 2 (Sea Note 6). N CONTRIHUTBD CAPITAL 1 . Contributed capital in the proprietary fund types repreaeat contributions from other Euada, developers, end Pederal, Stnte and local grant t progzama. Contributioaa are used primarily for capital outlet' projects sad are zacogniaed as 3ncreaasa is equity is the period they ace earned or received. ' O. RBSBRVB OP PIIND BALANCRS AND HBTAI NBD EARNINGS Beaervea recorded 1n the govexnmentnl funds xepreaent portioae of fmd ' balance which cannot da appropriated for ezpendituren or rhich have been segregated for specific future assn. ' Beaervea recorded in the enterprise funds are created by the eziatence of assets restricted for debt service, construction, renerela cad replacements. ' P. TOTAL COLUMNS ON COMBINED STATEMBNTS Total columns oa the Comblaed Pinencial Statemea[a are captioned t "Memorandum Oaly'• to indicate thnt they are presented only Co facilitate financial analysis. Data in thane columns do not present financial poaitioa, reaul[a of operetiona, or changse in financial poai[ion is conformity rith generally accepted accounting principles. Neither is such data comparable [o a consolidation. Iaterfuad eliminatioaa 4ave not been made is the aggregation of [hie data. , ' CITY OF ATLANTIC BBACN, PLORIDA NOTES TO FINANCIAL STATEMBNTS SEPTEMBEE 30. 1988 ' 2. CASB AND INVESTMENTS ' The City maintains a cash and investment pool that is designed for use Dy all funds, creep[ for those monies which are periodically transferred to the pension custodian end the deferred compeaaation plan adminiatrata rs. Ia addition, investments are separately Geld and individually accounted for by ' several of the City's funds where contractual arrangements and bond covenants provide for and require such arraagamenta. Tha deposits sad investments of the pension trust fund which have been transferred to the ' pension custodians are held separately Erom those of other City funds and are required to be administered Dy an investment advisor. At September 30, 1988, the carrying amount of cash oa hand and oa deposits ' with banks, including interest bearing deposits, vas E11,852 sad the related bank balance vas 8409,989 million. Monies which are placed on deposit with financial institutions in the form of demand deposit accomta, time deposit ' accounts and certificates of deposit are defined as Public Depoaita. All of the City's public deposits are held is qualified public depositories pursuant to State of Plorida Statutes, Chapter 280, "Plorida Security Eor ' Public Deposits Act." Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly ba3eaca of ell public deposits, times the depository's collateral pledging level. The pledging level may range from 506 to 1256 depending upon Che depository's financial condition and eatebliahment period. All collateral moat be deposited with an approved financial iaatitutioa. Any loaaea to public dapoaitora are covered Dy ' applicable deposit inauraace, Bala of aeeuritiea pledged ae collateral and, if necessary, assessments against other qualified public depositories of the same type as the depoaitoty is default. ' The City's inveatmeat practices are also governed by Chapter 280, Plorida Statutes, which allows the City to invest is certificates of deposit, money market certificates, obligatioaa of the U. S. Treasury, its agencies and ' instrumeatalltiea, repurchase and reverse repurchase agreements col3atera3iaed by ll. S. sacuritiea, and the State Board of Admiaiatratioa. The pension trust funds are also authorized to invest is corporate bonds, preferred stocks, consaoa stocks, sad mutual funds. Cash sad investments at September 30, 1988 are categorized in accordance with GASB Statement No. 3 to indicate the level of risk assumed by the ' City. Tha certificates of deposits are considered to be category one credit rink deposits, which means that they era iaavrad or collateralized with securities held by the City's agent is the City's name. The pension ' investments held by Sun Baak Trust Department are considered to be category one credit risk inveatmenta, which means that they are fully insured (E100,000 per participant). The deposits and investments with state agencies sad the International City Managers Association (deferred ' compensation) are not included or classified by credit risk since they are held by independent agencies. There rare no violations of the legal or contractual provisions for deposits and inveatmeata. ' -23 - (' ~ ~ CITY OF ATLANTIC BEACB, PLOEIDA NOTES TO FINANCIAL STATEMENTS S&PTHt~6N 30. 1988 3 The total cash and invea[me¢t balance of the City is comprised of the folloviaq itemsi Petty caah on 6a¢d E 400 Savings and money market accounts 11,452 Total cash 11.852 Certificates of deposit rit6 local bankax Less than 31 days maturity 1,898,609 31-90 days maturity 1.014,858 Total ceztificatea of deposit 2,913.467 Pension Trust Inveatmant: Caa6 and abort-term Treaaurp iaveatmaata 14,781 Corporate Yized Income Pmd 302,110 Corporate Equity Yund 496,029 Co [po rate Iatar-Pi:ed Incons Puad x72.697 Total Pension Trust Iaveatment 1.685,617 Inveatme¢ts rich ICMA 66,719 Invented caah rith fiscal agent 382,552 Inveatmeat with State Board of Admialstratioa 2.168.634 Total invea[mante 4,303.522 Total caah and inveat:eeata 7,228,841 Lena: restricted caah sad invaatmeata 1.897.931 Total unreatrictad caah sad invantmeatn 55.330.910 PNOPEETY, PLANT AND 60BIPMENT A aummarp of changes is general fi:ed aaseta follora: Balance, Balance, October 1, September 30, 1987 Additioaa Deletioaa 1988 Land E 365,268 i 38,600 E 403,868 Buildings 710,815 339,479 1,050,294 Improveme¢ta other than buildiaga 441,318 441,318 Equipment ~E4.389 98,738 E21 .2B1 831.846 Total O ~i :)n f: ~ - 24 - i 1 1 1 1 1 CITY OF ATLANTIC BEACH, PLO¢IDA NOTSS TO FINANCIAL STAT¢NBNTS A supanary of fized aasete of the ¢aterpriae Pmda at September 30, 1988 follora: Tobl Mater Saar $anitati on Buccaneer Oistriet Enterprise Funtl Fund Funtl Mater Fund Sever Fund funds land S 65,5$7 f 26,681 S 117,799 S 210,037 Buildings S 393,718 $0$,685 27,004 53,356 979,763 Inproveemnts other than buildings 1,664,836 5,525,063 1,363,716 3,707,310 11,680,945 iproveeents from joint venture 676,802 616,802 Machinery and e9vipa~¢nt 105,749 17$.230 5359,391 22,024 2,259 604,653 Lesz - accumlated depreciation (740.728) (1.082.289) (190.786) (773.210) (230.905) (2.357 978) Total Capital projects currently authorized coneiet of: Comeitted Szpended to Federal ¢equired Project September 30, City and Stete Future Authoriaatica 1988 pu°dino puadiaa Pinmcina Hater eyatem imptovemeata (1.061,'+'+4 f 168. Sn4 E892.B00 L~ ~IQYG General capital pro je Cta f a3B.225 f 545.214 (252.212 L~ f14o.799 - 25 - ~l U.)7 ~~ CITY OF ASLANTIC REACH, FLORIDA ' NOTES TO FINANCIAL STAT@~NTS SEPTEMBER 30. 1988 4. LONG-TEBM OBLIGATION6 The following is a summary of the long-term obligations of the City for the year ended September 30, 1988s General Enterprise Lon e-Tenn Oblig ations Funds Ganaral Accrued Revenue Obligation Caeeensated Ravenna Bone: Bends Absences Bonds Total Obligations payable at October 1, 1987 (551,801 5262,000 (99.249 (4.031,215 (4,941,265 Nev Bonds Issued: 7985 Florida Municipal loan Council Pooled Loan Pro9ran Revenue Bonds 415,356 415,356 Oebt Principal paid (94,997) (45,000) (172,121) (312,118) Net decrease in casgensated absences (10.067) x10.067) Obligations payable at September 30. 1988 ~72.1a0 421].000 f89_lp2 fa pc9 a9a fc.p».dsA Bonds payable at September 30, 1988 are comprised of the foiloristq individual isauee: General obligation boada: 1971 Serer System aerial bonds, payable in annual instalments of (22,000 to j40,000 plus latereet through 1995, bearing interest at 5.75 S 217,000 Revenue bonds: 1985 Buccaneer District Matsr sad 6ewar aerial Donde, payable in equal annual instalments of principal sad interest of epprozimately (347,500 through 2000, bearing interaet at 9~ 2,487,100 State Pollution Control Bonds, Sariea "Q", payable is annual iaatalmeate of {50,000 to 1190,000 plus interest through 2000, bearing interest at 8i 1,350,000 1985 Florida Municipal Loan Council Pooled Loan Program Revenue Honda payable is annual instalments of 169,284 to :39,000 plan interaet through 1995, bearing interaet et a variable rate (approzimatiag 7.0~ at September 30, 1988) 894.154 Total f4.948.254 - '- ~7 [l .l - 26 - ~~'.. )t. i 1 1 1 CITY OF ATLANTIC BEACH, PIASIDA NOTES TO FINANCIAL STATHt~NTS The amual raquiremeata to amortize all deDta outetmdinq at September 30, 1988, are as follower General Loaq-Term Obligations Yeat Eadioq ACC unt Gi p Bn taroriae F md September 30 Principal Iatereak Total principal Interest Total 1989 5149,964 S 74,354 5219,318 5 63,368 5334,729 5398,097 1990 14A,964 64,331 209,295 191,768 318,527 510,295 1991 149,964 54,308 209,272 212,968 300,912 513,880 1992 199,964 43,961 193,925 235,168 281,389 516,557 1993 149,964 33,634 183,578 253,268 259,878 513,146 Thereafter 349.340 25.619 374.959 2.902.554 1,032.256 3,934.810 Total f1.Da 9.160 S29fi"187 f1.3at 347 fa,859_Da6 f2.527.891 f6.386.705 General obligation bonds of the Loaq-Term Obligatioaa Account Group repreaeat bonds issued by the City foc coaatruetioa of and later improveeenta and eztensioaa to (1971 series) the City's aexer ayatem. These boada were ieaued as general obligations of the City md, therefore, ors not obligatioas of Cha individual Enterprise (Sewer) fmd. During 1985, the City obtained a Stets Bond Lom vhic6 is administered by the State Board of Admiai atration and assured by Stets Pollution Control Bonds, Series "0••, to support fmdiag for improvement and ezpmsioa of its never system. These boada are payable from pledged revenues derived from the operations of the sever ayatem. Under the terns of the agreement, the City may later pledge additional legal and eveilable funds to repay [ha loan, as it deems appropriate. During 1985, the City iaeued revenue Donda to acquire m additional eater and saver ayatem. These boada are payable from the net revenues of the Succmear District tinter sad Sever Syetsm and ere not general obligetioae of the City. During 1986, the City elected to participate in the Ploride Municipal Loaa Council Pooled Lom Program (eevanua Bonds, 6eriea 1985). Under thin program the City is eligible to borrow up to 51,070,510 to be used to finance capital projects. Through September 30, 1988 the City has borrowed 51,070,510 of which approximately 2.75\ is included as m obligation of the enterprise Pund with the remainder as m oDligetioa of the Long-Term Obligatioaa Accomt Group. The amortisatim achadule above includes iatereat oa rheas obligations at an assumed rate of 7.0\, rhic6 appro:imetee the actual rata at September 30, 1988 (the actual rate is variable). 27 _ CITY OP ATLANTIC BeACe, PLOBIDA NOTBS TO PINANCIAL STATB'M8NT5 Revenue bonds of the Enterprise Punda contain various terms and coveaantn which require the City to maintain adequate user rates and to account for the deposit sad diaburaemeat of revenues in accordance with established priorities. As of September 30, 1988, the City ran aubataatially in compliance with such covenants. 5. Et~@LOYEE BBNEFITS The City has three separate defined benefit single employer pension plans (General Employees, Police and Pirefighters) which cover substantially all of its employees. The City accounts for the plans as pension trust Eunds. PLAN DESCRIPTION General Emoloyees' Pension Plan: All City employees, ezcept for police, firefighters and part-time employees, are covered under [he General Employees' Paaaioa Plm. Current membership is comprised of the following: Groun September 30, 1988 Retirees and beneficiaries currently receiving benefits 10 Vested terminated employees 3 Active employees: Pully-vested 60 Non-vested 12 Total ~ Employees attaining the age of 60 and completing five or more coatiauoua years of service, are entitled to a monthly benefit at 2.251 of their average monthly earnings as defined is the plan for each year of coatiauoua service. Active employees rho become diaabied receive benefits computed ae regular retirement beaefita. If an active employee dies, hie designated beneficiary receives payments computed as regular retirement benefits. If a member's employment is tenniaated before ha becomes eligible for any other beaefita under this plan, he shall receive a refund of hie member contributions. If a member terminates his employment either voluntarily or by lawful discharge after the completion of at le eat five years of continuous service, but before becoming eligible for retirement under this plan he shall be entitled to a deferred vested beaefi t. The deferred vested benefit shall ba based on monthly earnings and coatiauoua service as of the termination date. _ 28 _ ~~~~~~ 1 1 1 1 1 1 CITY OP ATLANTIC BHACA, PLONIDA NOTES TO FINANCIAL STATSt~NTS ' SEPTet~mHN 30. 1988 ' The General employees Peanion Plan van established pursuant to City Ordinance adopted is 1975 by the City Commiaaion. The Plan is also governed by certain provisions of Chapter 113, Florida Statutes. The Plan is administered by the Hoard of Truateea for the Plan. ' Police d Pi rwR g6 w oai s ' Current membership is the Police and Firefighters Betirement System is comprised of the following: ' Grouo September 30, 1988 Netireea sad beaeficiariea ' currently receiving beaefite 3 Vested terminated employees q ' Active employees Fully-vested 38 Noa-vested ~ ' Total ~ Employees attaining the age of 60 and completing five or more continuous ' years of service, are entitled to"a monthly benefit at 2.4i of [hair average monthly earnings as defined in the plan for each yer of continuous service. Active employees who become disabled receive benefits computed as regular retirement benefits. If an active employee dies, his designated beneficiary ' receives payments computed as regular retirement beaefite. If a member's employment is terminated before ha become eligible for any other benefits under thin plan, he shall receive a refund of his member contribution. If a member termiaatea his employsaat either voluntarily or by lawful ' discharge after the completion of at least five years of continuous service, but before becoming eligible for retirement under this plan he shall ba entitled to a deferred vented benefit. The deferred vested benefit shall be ' based on monthly earnings and continuous service as of the termination date. The Police and Pi refightera Peneioa Plan ran established purauaat to City ' Ordinance adopted in 1975 by the City Commisaioa. The Plan is also governed by certain provisioaa of Chapters 175 end 185, Florida Statute a. The Plan is administered by the Board of Truateea for the Plan. ' -29- ' ~: 'i :) Fir CITY OP ATLANTIC BEACH, PLOHIDA NOTES TO FINANCIAL STAT@~NTS SUMMARY OP SIGNIFICANT ACCOUNTING POLICIES AND PLAN ASSET MATTERS: Investments and Iaveetmeat Income: Investments for the plena are initially recorded on the trade date. Investments are valued at fair market value. Market values of inveatmenta are valued at the last reported aalea price on the last Dusinesa day of the year from published sources. Investment policies are determined by the Board of Trustees and era implemented by investment advisors. Earainge oa investments represent realized gains and losses and the effects of adjusting the inveatmeat portfolio to fair market value at fiscal year end. Investments as of September 30, 1987 are as follora: All Plans Corporate Equity Pund Corporate Pized Income Pund Corporate Inter-Pized Income Yuad Short-term Treasury Portfolio 1 1 Coat Pair Mat ket Values ' ~~ 1987 E 547,351 t 496,029 294,416 - 302,110 795,288 872,697 14,781 14.781 Total Belated Party Transactions: There are na related party tranaactiona recorded for any of the Plana. FUNDING STATUS AND PROGRESS The amount shown below ae the "penaioa benefit obligation" is a atandardiaed diacloaure measure of the present value of penaioa benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future ea a result of employee service to dote. Thin meaauze is the actuarial determined present value using the credited projected beaefita method and is intended to (i) help users assess the plan's funding statue oa a going-concern baaia, (11) aaaeaa progreaa being made in accumulating suEficieat assets Co pay beaefita when due, and (iii) alloy for comparisons among public employee retirement place. The nieaeure ib independent of the actuarial funding method used to determine contributions to the plea. -30- r f~ ~,,~ 1 1 1 CITY OP ATLANTIC BEACB, FLORIDA NOTES TO PINANCIAL STATElOINTS ' SEPTEMBER 30. 1988 The peaaion benefit obligation ran determined ae part of m actuarial ' valuation of the plan as of September 30, 1987. Significant actuarial assumptions used in determining the peaaion benefit obligation include (a) a rate of return on the investment of present and future asaeta of Bi per year compomded amually, (b) projected salary increases of 60 per year ' compomded mnually, attributable to inflation, (c) additional projected salary increases zinging Erom O.Oe to 3.Oi par year, depending on age, attributable to seniority/merit; and (d) tae assumption that benefi to rill not increase after retirement. At September 30, 1987, the mfunded pension benefit obligations are as follorb: General Police Pire ' Pension BeaeEit Obligation: Retirees sad beneficiaries currently receiving benefits S 384,235 E 57,134 E 72,158 Terminated employees not yet ' receiving benefits 49,616 59,333 28,988 Current employees: Accumulated employee contributioae ' including allocated investment income none 2,996 1,297 Employer financed - Vented 536,245 259,275 63,620 ' Employer Financed - Non-vested 69.128 55.346 64.065 Total Pension Benefit Obligation 1,039,229 434,OB4 229,928 ' Net aaseta available for benefits, (at market) 800.977 599.103 294.706 ' UaEmded Pension Bmef it Obligation E 238.247 8(165. 019) E;64.778) During the year ended September 30, 1987 the plans ezparieaced a net change of 5362,702 in the peaaion benefit obligation. Of this change, E164,061 vas ' attributable to changes is benefit provisions. ' rONTRIB ION B mm~vn sun rnumorm c E AL P The City's Eroding policy provides for periodic employer contributions at ' actuarially determined rates that, eapresaed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits vase due. The normal cost and actuarial accrued liability are determined using as entry age actuarial finding method. Uafmded actuarial ' accrued liabilities are being amortired as a level percent of payroll over a period of 24 years. ' - 31 - (iii~11fJ'j CITY OP ATLANTIC B¢ACB, PLOBIDA NOTES TO FINANCIAL STATEMENTS During the year ended September 30, 1987 contributions totaling 8124,100 (8119,895 employer and 84,205 employee) were made in accordance with contribution requi ramenta determined by an actuarial valuation of the plan as of September 30, 1985. Significant actuarial aasumptiona used to compute contribution requirements were the same as those used to compute the standardized measure of the pension benefit obligation. HISTORICAL TH¢ND INFORMATION ALL PLANc Net aaseta as a percentage of pension benefit obligation Unfunded pension benefit obligation as a percentage of annual covered payroll Contributions eapteased as a percentage of annual covered payrolls General Police Pi re 3.2@S 1~$II 12@? 1 1 109.9\ 113.3\ 99. Si ' 0.0 0.0 .6 9.31 9.53 9.17 11.61 14.39 9.15 ' 11.86 15.06 7.71 Ten year historical trend information designed to provide information about the Ci ty'a progress made is accumulating sufficient enacts to pay benefits rhea due is preasnted in the atatiatical section of this report. 6. D¢PERR¢D COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal 8eveaua Code Section 457. The plan, available to all City Employees, permits them to defer a portion of their salary unt31 future years. The deferred compensation is not available to employees until termination, retirement, death, or unforaeeable emergency. All amounts of compeaaation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, oz rights are (until paid or made available [o the employee or other beneficiary) solely the property and rights of the City (without being restricted to the proviaioas of benefits under the plan), subject only to the claims of the City's general creditota. Participants' rights under the plan are equal to those of general creditors of the City is an amount equal to the fair market value of the deferred account Eor each participant. It is the opinion of the City legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. Tha City believes that it is unlikely that it will use the aeaets to satisfy the claims of general creditota in the future. -32 - a l; 'J ~)1~`.f 1 1 1 CITY OP ATLANTIC BBACB, PLOBIDA NOTES TO PINANCIAL STATBlOSNTB $EPTENBEH 30. 1988 7. SEGt~NT INPOBMATION POH EIPfEHPHISE PONDS The Citp hen eatabliahed neperete Bnterprise Pl:nda to account for rater, sever and aanitetioa services. Segment iafornation Eor the City's Enterprise Punda for the year ended September 30, 1988 is as follove: Total 8ueeaneer Distri et Sanitation Enterprise Water Fund Serer Fund VaGr Fund Serer Fund Fund Fulls Operating revenues S 313,189 3 850,226 3 267,320 S 619,548 S 442,923 52.493,206 Depreciation 76,627 194,245 44,440 97,823 30,515 413,651 Operating intone (toss) (15,040) (35,140) 83,448 333,263 55,655 422,186 Non-operating income (erpense) 88,321 255,205 (22,080) 86,965 15.014 423,425 Operating transfers in (out) (19,256) (U5.842) 7,085 (82,768) (68,790) (309,571) Net incoro (loss) 54,025 74,223 68,453 337,460 1,879 536,040 Net property, plant and e9ui Anent 1,423.575 5.746,068 1,346,215 3,049,819 168,605 11,734,282 Net rorking capital 366,284 838,619 74,959 340,437 87,959 1,708,258 Lang-tam debt 18,625 1,290,000 816,448 1,670,652 3,795,725 Total equity 1,915,294 6,162,442 873,187 2,566,417 255,564 17,713,904 Total assets 2,102,280 7,613,043 1,731,437 4,246,797 343,859 16,037,416 8. INTEEPUND TRANSACTIONS HECOECILIATION A summary of interfund transfers during the fiscal year ended Sapteml»r 30, 1988, is as follova: Transfer s to• Spacial Capital Osbt Trust L G°neral Revenue f131.cts Se rv;ee Enlaro rlse p°enev Total ' Transfer frm ~ Enterprise (309,571 335,000 f3M,571 General 310.884 3156,110 3131,056 31,070 302,120 Special Revenue _261.451 1 4 ' Totai f;Q9"571 S10"8M 1417.u1 ~]j~ S~~ 31.070 5908.142 the interfund receivable/payable at Sopteeber 30, 1988, ras between the General Fund and the Miscellaneous Grants special revenue fund. t 1 -33- 'l IJ .J J I it CITY OF ATLANTIC BEACB, PCABIDA , NOTES TO FINANCIAL STAT8I~NTS SEPSP1dBEE 30. 1988 , 9. JOINT VENTUBE In 1985, purnuant to m intsrlocal egreemsat authorised by Plorida 6tatutes Section 163.01, the Citp joiwd rith the City of Jeekaonville Beech and the City of Neptwe Beech to construct and operate affluent outfall linen sad , diapoaal facilities, together vit6 all the lends, right-of-rays, easements, and other entitlements aeceasery for the construction and vse thereof. The construction of the outfall lines and disposal Eacilitiee rare forded by , the muaicipalitiea in the folloriui pzoportioaes Atlantic Beach 33.06\ ' Jacksonville Beach 55.78\ Neptune Beach 11.161 Total .00\ ' each City has recorded its share of the project in its own financial statements. The Citp recorded its portion of the joint venture ' (approzimately (290,000) 1n the property accounts of the Citya Serer Pund. The City also records epprozimatelp 8325,000 of additional property purchased rith grant proceeds from the ploride Depsrtmant of Bavirowental , Begulstion nines the grant for the outfall lives rss arerdsd to the Citp of Atlantis Beach. Therefore, the total valve of the joint venture oa the City's books is approzlmetalp 8615,000. The project ras completed in 1986 and depreciation (using the straight-lino method over 25 pears) began in , 1987. The City of Atlantic Beach provides all accowting and purchasing services , for the joint venture. Bapair sad maintsaanca of the outfall linen and disposal of the facilities rill be shored by the participating muaicipalitiea 3n the percentages noted above. Bo rapnir sad maintenance , ezpenaea related to the joint venture rare incurred in 1988. 10. SUBSEQUENT EVENTS On January 1, 1989 the City borrored j3, 560,000 from the C1tp of Gulf Breese ' to finance improveuente to Section 8 property. The Citp has pledged revenues from Gae and Utlll tp ta:ea for repayment of t63a note. -3+- ,;;,;~7 ~ 60PPL~rTaav INFO YrTION ' COMBINING AND INDIVIDUAL 6YA28MBNS8 AND SCBBDUL85 r Combining finmcial statements provide a wore detailed vier o[ the "General ' Purpose Financial Statameata" presented in the preceding subsection. Individual statements and schedules, although sot aacasserp for fair ' presentation in eoaformitp with Generally Accepted Accounting Principles, are presented [o provide greater de[sil and comparative finmcial information for certain fend types. 1 1 -35 - ~i ii al!/~ 1 The General Pund is the general operating fmd o[ the Citp. It is aced to , account foe all financial resources e:capt those required to hs accounted Eor in another fund. S 1 -36- Q4:J~ i .3 ' CITY OF ATLANTIC BEACH, FLORIDA GENERAL FUND ' SCHEDULE OF IXPENOITURE$ - BUDGET ANO ACTWL - _ _ - FOR THE i75UL YEeR ENDED cEPT EMBER an •o¢a iu Variance Favorable 1987 Budo4t Actual (Unfavorabl¢1 Aetual GENERAL CAVERNMENT: Legislature: Personal services f 22,649 f 21,728 f 927 f 21,187 Other servicai and charges 4.355 2.531 1.824 7.770 To[al le9islatu re 27.004 24.259 2.745 22.297 Esecu Live: Personal services 136,371 135,774 597 70,832 Other services and charges 717.973 126.842 21.137 5 139 Total executive 2&1.344 262.616 1 7 15.971 financial: Personal services 104,916 104,787 129 174,480 Other services and charges 13.372 13.182 ~g1 37.756 Total financial 118.288 177.%9 319 206.236 General services: Personal services 56,721 55.578 1,203 70.954 Other services and charges 201.858 199.178 2.680 379.829 Total g¢neral serv{<es 256.579 254.6% 3.883 450.783 TOTAL GENERAL GOVERhTIENT 666.215 659.540 28.675 755.287 Public safety: Personal zarvi cos 1,077,649 1,070,614 7,035 919,179 Other services and charges 171.003 173.601 ~I 275,250 Total public safety 1.251.652 1.244.215 7 .437 1.134.429 Roads and streets: Personal services 242,476 242,307 169 276,351 Other services and Charges 166.405 159.132 7.273 135.105 T o[al roads and streets 408 881 401.439 7.442 411 456 Intragoverrmental torvices: Personal services 40,764 40,529 235 33,751 Other services and charges 575 366 209 920 Total intragoverneental services 41.339 40.895 444 34,60 Parks and recreation: Personal services 45,5% 45,184 414 20,458 Other services and charges 62.888 58.604 4-284 32.931 io[al Parks and racraati on 108.486 103.788 4.698 53.389 TOTAL EXPENDITURES See notes to financial statements ;7 _ GG5?_74 Thie page iateatioaallp left Dleak. ~ , LJ 1 -38- ~ :) ~.; ~:i7 1 ' Special Revenue Punda are used to account for the proceeds of apeciElc revenue aourcea (other than apecial aeaesaaenta or aujor capital projacta) that are ' legally restricted tc eapenditurea for specified putpoaea. 1 1 1 - 39 - ~'J.; ~~7r CITY Oi ATLAMiC BEACH, iLORIDA SPECIAL REVENUE M1D5 COMBINING BALANCE SHEET $EPLEMBER 30. 1988 (with cpnparativa totals for Swtsbar 30 1%71 Local Option i9daral Mi scallanaWs Gas Taa pavanue Shari na Grantt Total• 19.@5 ]95Z 1998 1992 1995 1492 .19Bfl ASSETS Cash ana investments (286.700 5195.739 :2,988 (286,700 fl%,727 Ove from other 9overrments 27.258 26.653 19.302 5.911 36.560 32.569 total assets a 1~ f~pz f_~ j~ jy~0z ~ aaz__ 3.z~ ~yl LIABILITIES ANO iL'ND BALANCES liabilities: Accounts payable Due to other funds 7ota1 liabilities __ fund Balances - Unreserved 5313.958 1j22,3Q2 Total liabilities and { 884 =5,111 >{ 889 1 5.414 -_ 9.418 3.485 e.41e 3.485 9382 ' .-5.999 9.302 _,_@.999 -_ _313.435 _222.392 fund balances j31~ f1]J '+9f L~ L~ j9 '+0 ~ ~~ a at ul See notes to financial statements. 1 _ _40_ fij;irl.7 ~ , t 1 1 t 1 1 CITY OF ATLANTIC BGCN, iLORiOA SPECIAL REVENUE FUNDS COMBINING STATEMENT GF REVENUE, EXPENDITURES, AND [IWNGES IN FIRID BALANCE FOR THE FISGL YGR ENO 0 5 PTEMB R an smee cu _ _ __ _ Local Option Federal Mizullaneous Gas Tax Revenue Shari ne Grants Totals 19~ 149Z >~ ~ 4@4 1~@Z 1~' @@ Revenues: Ta+es (353,017 (314,561 federal shared revenues State shared revenues Interest income total revenues 17 13 4.561 Et penditu res - Gen¢ral govenmi¢nt Total eapenditures E+cess of revenues over (under) expenditures 17 314.561 Other financing sources (uses): Operating transfers in Operating trantfers (out) 1 4 ) (92.169) (353,017 f31d,561 f 881 881 (21,481 (20,908 21,481 20,908 1.845 ~~ 2.726 1 1 20.908 74 4 338.795 2.726 {10.884) 342.133 17 7 10,884 10,880 (61.083) 2{ 61.451) (153.252) Total other financing sours ez (uses) 1 4 ) (92.169) (61.08;) 10.8&1 (250.567) (15;•252) E+cess of revenues and other sources over e+pendi to r¢i and other uses 91,566 212,392 (58,357) 91,566 164,035 Fund bal an<ei, October 1, 1987 222.392 58.357 222.392 58.357 Fund balances, September 30, 1988 fj]j,pip t ) v92 L L i~ L 5313.958 a 11 +9 See notes to financial statements. _ 4) _ .s77~ Sbie page intentioasllp left blank. ' 1 *2 ' r~ ~ 6atetnriae Punda ' Enterprise Punds a:e used to account for operations that are financed and operated in a mamer similar to private business enterpziaea, rhere the intent is that the coats (e:peaaea, including depreciation) of providing ' goods or services to We general public oa a continuing basin be financed or recoverod primarily ebrough user charges. 1 ' -43 - (~}U ;In J~ CITY OF ATLANTIC BEACH, FLO0.[OA ENTERPRISE FUNOS COMBINING BALANCE SHEET SEPTEMBER 30 1988 fri lh coroarative totals f 5 tenb 30 19871 Yabr FuM Sew er Fund 1987 ~ ~~ ASSETS Cash and investments f 451,197 f 337,327 f 858,395 f 923.846 Accounts receivable M,670 46,772 53,487 62,034 Invents ri es 38.778 46.466 total current assets 534.645 430.567 911.882 985.680 Otner assets 670 670 9,364 9,360 Restricted assets: Cash and investments 49,971 124,558 759,656 702,759 Invested cash with fiscal agents 186,073 310,923 Due from other governepnts 113,736 Constru<tton to pro9refs 93,419 1,091,780 Property, plant and equipment - net 1.423.575 1.402.365 5.746.068 4.492.50] total assets S2"102"2B0 Si 95u 1fi0 e] 61a p4a S].]06.]49 LIABILITIES AND FUNO EQUITY Current liabilities (payable from current assets): Accounts payable and accrued if abill ti es f 26,773 f 16.955 f 73,263 f 58,193 Current Dorti on of revenue bonds paYabl• 3,366 3,600 Custoerer deposits 136,220 116,231 Current liabilities (payable iron resLrfcled assets): Accounts payable 103,814 Contracts payable 111,339 Revenue bonds payable 60,000 SS,OOD Accrued interest payable 27,338 28.438 Ou¢ to other funds Revenue Bands payable - long-tans portion 18.625 22.015 1.290 000 1.350.000 Total tiabi li ti es 186.986 158.801 1.450 601 1.706.784 Pond E9ui ty: Contributed cap)ta7 876,386 850,446 2,847,736 2,816,440 Retained earnings: Reserved for renewals and reDlaceants 49,672 124,558 431,152 489,771 Reserved for debt service 295,2 )q 227,480 Reserved for construction ))),571 Other reserves 132,025 Unreserved 989.236 824.355 2.456.315 2.321.699 Total retained earns nqs 1.038.908 948.913 3.314.706 3.153.525 total fund equity 1.915.294 1.799.359 6.162.442 5.999.965 7ota1 liabilities and fund equity a] 10~] 7B0 S7 fi1~T O.aT 57.706.749 See notes to financial statements. (i V .)~J ~ -11 F 1 1 1 1 1 eueeannr 0l strfet Sanitation land Vater Fund Sawr land Totals 34$$ 3282 14@5 14@Z )~ 34@Z l?8fl 14@Z f170,789 f147,657 f 145.318 f 90212 f 300,271 f 133,888 f 1,925,370 f 1.638,730 5.065 3,615 29,066 29,077 46,778 39,703 179.066 181,201 2.377 3,116 M.271 45.468 175.254 151.272 176.761 125.289 350.165 173.591 2.148,707 1.866.;99 10,034 10,034 103,238 165.829 798.993 6M,672 1,711,858 1,65),818 186,073 310,923 113,736 705,223 47,820 38,320 246,462 1,13p, 100 168.605 128.930 1.346.215 1.316.670 3.049.819 3.064.930 11.736.282 10.405.312 f343.859 f~p,Zpj 11"131.43] ~~ f0"21R.]97 •] 9 1 SIi f16.03].d16 S1S f 87,295 f 25.517 f 14,023 S 9,762 f 9,728 f 28,117 f 211,082 f 138,544 3,368 3,800 87,779 52,419 225,999 168,850 103,814 111,339 6D,000 55,000 27,338 28,438 816.448 853 70J 1.670.652 1.746.893 3.795,725 3.972.615 918.250 915.888 1.680.380 1.]73.010 4.x23.512 1.580.000 413,624 391,778 930,789 873,473 5,087,915 4,987,537 103,238 185.829 798,993 644,872 1,383.055 1,644,870 295,214 227,681 111,571 132,025 256.564 254.685 296.325 134.833 837.255 630.358 4.835,695 4.168.930 256.564 254.685 399.563 320.662 1.636.268 1.275.030 6.645.989 5.952.815 813.181 711.840 2,566.417 2,148.503 11.713.904 70.914.352 5343.859 -45 - (1U:3~i2 CITY OF ATLANTIC BFACH, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT Oi REVENUES. IXPEN$ES AND CHANGES IN RETAINED EARNINGS FOR THE FISGL YEAR ENDED SEPTEMBER 30. 1988 frith emaraHva totals for Swtanber 30. 19871 Yat4r F und Sar ar Fund ]~$ >~Z 7;j8$ Operating revenues: [ustoner charges f 243.545 (292,489 f 843,494 f 834,268 Other income 19.614 33.679 6.732 1.710 Total operating revenues 313.189 326.168 850.226 835.978 Operating expenses: Pers9nal services 122,074 113,033 193,619 163.684 Contractual services 10,340 20,996 94,148 182,606 Supplies 56,12/ 25.038 74,b39 53,415 Repairs and maintenance 11,351 11,b82 177,890 57,226 Heat, light and power 32,095 28.793 118.093 101,034 Depreciation 76,627 70,228 194,246 139.976 Other expenses 19.618 19.810 32.731 26.730 Tot a) operating expenses 328.229 289.580 885.366 721.6)1 09erati ng ineasN (loss) (15.040) 36.SH8 135.140) 111.307 Non-ape rata ng intone (e•penie): Connection charges 53,313 74,910 135,630 258,265 5er¢r generation charge 92,634 89,585 Interest intone 36,399 28,409 139,591 139.135 Contributions and donations interest expense (1.391) ~) (112.650) (116.750) Total non-operating income 88.321 101.836 255.205 370.235 N¢t intone (loss) before operating trwff4rf 73.281 138.421 220.065 181.542 Operating transfers in (out) (79.256) (17.740) (145.842) (132.591) Net income (loss) 54.025 90,681 74,223 348,951 Add depreciation on fixed assets acquired by shared revenues externally restricted for Capital acquisitions 35.970 3;.046 86.958 b2.234 Increue in retained earnings 89.995 123,730 161,181 411,185 Retaf nod Earnings, October 1, 1987 948.913 825.183 3.153.525 2.742.340 Retained Earnings, SeDtr:nber 30, 1988 See notes to (snood al statements. 1 1 1 1 i 1 1 8uceannr Otslrict Sanitation Fund Yabr Fund Serer Fu d 19.$8 , 7 19.Qg 14az ]sag 14gi (442.923 (413,479 (237,438 (195,596 f 613.117 f 525,568 29.882 36.524 fi.431 23.983 442.923 41 47 267.320 232.120 619 548 549.551 Totals 14Hg 12@Z f 2,130,517 (2,261,400 62.689 95.896 2.493.206 2.357.296 287,460 234,930 37,670 40,820 677,643 511,647 20,825 1,977 54,403 84,668 69,160 139.129 248,876 429,376 27,358 18,787 32,154 20,468 210,743 97,240 19,314 23,566 3,424 809 8.329 2,009 220.308 95,292 7,203 2,863 41,321 13,075 198,712 175,765 30,515 31,790 44,440 38,475 97,823 73,510 443,651 353,379 5 796 A,§4'~ _4 07@ 8.954 P.364 15.974 71.087 76.113 7 2 315 095 18;•872 1 7 422.186 fi18.481 31,651 107,610 163,821 483,391 381.415 924,176 92,634 89,585 15,014 9,772 23,103 15,029 80,364 43.716 294,4)1 236,091 (76.834) (79.9031 (157.220) (163.502) (?48.095) (361.638) ~1 ,Q14 9.772 (22.080) 42.736 86,965 363.635 423.425 888.214 70.669 1 1 61 368 139.087 420 228 639.189 845.611 1.506.698 f68 790) (48.376) 7.085 16.725 (82.768) f74 295) (309.571) (286.277) 1,879 59,780 68,453 155,812 337,160 565,194 536,040 1,220,421 1a~94~ 5.838 23 758 10.719 157.134 111.837 1,879 59,780 78,901 161,650 361,218 575,913 693,174 1,332,258 25A-685 194.905 S25fi.566 ~1~a` aa5 320.bb2 IS9.O I1 ` ~{agg~ 1.275.030 699.117 ~g~ga~~a 21.275.030 5.952.815 3 fi_645.989 4.b10.557 t4 95 815 47 ._ %V~~~s~ CITY OF ATLANTIC BFACN, FLOR[OA ENTERPglSE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE FISCAL YEaA ENDED $EPTElBER 30, 1988 (rich caemsrative totals for tM vor ended SeoteMe WGr FuM Sewr Fund ~ lei ~ 3~ Financial resources were provided by Operations: Net intone (lass) f 54.025 f 90,68/ f 71,223 f 348,951 Depreciation 76.627 70.228 191.246 139.976 uorkin9 capital provided by operations 130,652 160,912 268,469 488,927 Increase in contributed capital 61,910 119,219 86,255 664,850 Decrease Sn restricted assets 74,587 181,689 786,455 Increase in current li abili tf as payable from restricted assets __ 73.946 Total sources of working capital 74 ~Q.131 538.413 2.014.178 Financial resources were used for: Acquisition of property, Olant and equipment 191,256 156,338 356.028 1,394,188 Increase to restricted assets 50,957 R¢duction of bonds payable 3.390 3,565 60,000 55.000 decrease in current liabilities payable from restricted assets 211.253 1.000 To G7 uses of working capital 141.616 210.860 627.281 1.450.188 Increase (decrease) in working capital f T2 sna f 69.271 f (88.g6B) f u~.990 Changes in Components of Morking Capi tel: Increase (decrease) in current assets: Cash and tnvestnents 5113.870 >< 84,812 S (65,251) { 560,864 accounts receivable (2,102) 8,252 (8,547) 8,386 Inventory (7,690) 2,335 Other current assets Increase (decrease) in current assets la •o79 95.399 (73.798) 569.250 (Increase) decrease in current liabi if ti es: Accounts payable and accrued lfabili ti es (9.818) (d,263) (15,070) (5,260) Interest payable Cus tamer deposits (21,989) (20,184) Current portf on revenue bond payable 232 f1.3B1) (Increase) decrease in current li obi li tfea (31.575) (26.128) (15.070) (5.260) Increase (decrease) in working <api[al 7 c^a f 69"471 f f8q"Bfi8) t ua ggp See notes to financial statements. _48 r. , rC[' r~~; ~) ..i •) 1 1 f 1 1 1 Buccaneer 0l stri et Sanitation land Vabr fund Sewr fund Totals 3@@ 1987 4@d 1S.@Z 19.@@ 19.81 24Efl ~7 f 1,879 f 59,780 f 68,453 f155,812 f 337,460 f 565.194 f 536,040 (1,220,421 30.515 1 1 ~ 38.475 97.823 73.510 443.651 353.379 32,394 90,970 112,893 194,287 435,783 638.701 979,691 1,573,800 32,896 175.167 80,454 455,425 263,513 1,411,661 82,591 338,867 786,455 324 _44.20 _$~.~@ _~$,~S_4 515.737 1.091.129 1.582.071 73.916 3.848.862 70,190 22,379 1)9,268 197,474 92,212 631,112 888,954 2,401,791 8,814 154,321 158,623 154,321 218,391 37,259 3/,105 76,241 69.795 176,890 162,165 72.719 148 781 211 253 222 500 . . . ] 1 22.379 216.527 313.112 322.774 1.008.611 ~ 1.431.118 3.005.150 f(37.1961 S 22,532 f 77.985 f 49.108 f 76,930 f 188,383 3 96,886 f 286.640 f 897,157 1,450 1,980 (11) 8,949 (7,075) 1,753 (2,135) 29,320 (7,890) 2,335 2.377 3.118 5.493 23.982 79¢5 1 4 85.879 178.574 98.819 282.308 929.112 (67,778) (11,374) (4,281) (760) 16,389 (13,101) (74,538) (34,758) (35.380) (28,777) (57,349) ib9,261) 232 (1.381) 1 7] ) i( 1.37d) (39 821) (29.537) 18 389 !13.101) (131.855) (85.400) Sf 37.]96) _4g_ J ,i~~r 1 Fiduciary fords ara uaad Co adwant for assets bald by the Citp in a truaGS ' capacity or as as agent for individuals, private organisation, other governments, and/or other fonds. t 1 1 -50- Ijl);)?c~ i~ 1 1 1 1 1 1 1 1 1 1 i CITY OF ATLANTIC BFACN, FLORIDA CONBiNING BALANCE SHEET FIDUCIARY f71N0 TYPES ALL FI WCIARY FUNDS $EPTEMBE0. 30. 19R8 (with enroanNva !nl.L Fn. <.....~. Pension Trust Esoendabl• Trust Amancv - ICMA Tet 1 1999 1 7 998 7992 ~ 799I !4$8 ASSETS Cash and investments f1,B40,898 (7,694,787 f 5,58d f15, 773 f7,846,dB2 f1, 709.960 Other cash and inves tnentz (66,719 (8/,626 66,719 84,626 Accounts receivable 30 2q 30 24 Oue from other governnen is 47.738 47.738 Total assets LIABILS 77E5 AND FLND BALANrES LIABILITIES: Deferred compensation _ 71 (84.626 f 66.719 f 84.62fi Total liabi ltties ~ 66.719 84.626 fib 719 86.626 FUND BALANCES: Reserved for police training and investigations (5,614 (15,197 5,614 15,197 Reserved for refs raabnt S7.8B8.636 (1.694 .787 __ 1.888.636 1.696.787 Total liabili ttas and fund balances al~pgo~btb 31"694 .787 ac 61d 115.19] 266.719 SBQ"62~ St"960"~ S1.]~.610 $ee nOtBS t0 fi0a0tidl statenents. -51- Tbie page intaationellp left blank. ~ ' 1 1 ;~.)~ i:3 STATISTICAL SSCTIOA ' Steti aticel schedules differ Eros financial ststemeata baceuae they usually cover more than one fiscal pear and nay present aoaaccouatiaq data. 1 1 1 1 I' -53 - e This page intentionally le[t blank. ' 1 1 1 r; [i IJ :1 ~ ,9 ~ - 5t - . f~ ~ f~ r . f~ f~ . ~ . . . . ~ . r . f~ nn of aTUxrlc eEacn PENSION REVENGES BY SOURCE aN0 E1lPEN5E5 HY TYPE PENSION REVENUES: Contributions: MeaLer city State - Police Slate -firefighters Invesbent interest and dividends Gain or (loss) Correction Total Revenues PENSION IXPFN0ITURES: &nafi is paid adeinistrative aspensss Total 6peMi tuns 1988 Asaunt P r n ~ ~ 7~@r~ ~ ~ ~~ ~@3 f lz,3z7 +.Ir f +.zos f - f - f - f - f - f - f - f - 126,740 49.9 76,884 79,518 61,336 71,688 63,939 91,086 101,123 69,539 74,237 35,140 13.7 32,614 25.246 21,217 18,631 15.123 12,102 10,537 10,735 9,275 12,598 •.B 10,397 9,417 8,204 16,856 5,246 1,670 4,188 3,876 3,162 8,197 3.2 104,619 114,340 119,272 103,048 91,719 89,997 66,131 46,184 28,434 60,617 23.7 - - (34,526) - - _ _ _ _ _ _ ~ _ _ _ 3.786 ~".~ l~ SiiBd13 SZ29.i21 SLYi.~i ~.~ 5176.027 f1g7 au ~,.~ l13l.124 s„5.,oe f 62,840 100% f 53,796 f 50,792 (49,368 f 40,341 330.694 f 14,980 f 10,079 f 9,330 f 9.331 --- 2.040 ___2.8112 S 62"940 IQOE f 53.796 i 50.792 L49.349 i 40.341 I~Y.B$! S 17.02n f tn.079 3 9.330 s ,1.033 _ rA5_ ~'i i'v l'J C1 TY OF A7IANTIC BFACN COMPUTED PENSION CON70.I8UT[ON COMPARATIVE SCHEDULE Fiscal [ontribuN On RAtet Year Valuation As Percents of Dollar Contribution Ending Data Valua tion Pav roll Valuation Far Fis cal Year SeotevSer 30 $eotmber 30 General P°1+oa [jay Pavroll Actual 1980 1978• 13.32% 15.02L 15.141 f 595,810 f 82,838 f 84,150 1981 1479 13.19 id,71 18.03 718,363 99,732 115,848 1982 1980• 14.03 15.07 16.65 691.693 107,858 107,858 1983 1987• 9.91 12.31 13.36 696,719 83,765 84,308 1984 1982 9.36 12.38 13.23 781,763 91,451 110,175 1985 1983 9.31 11,61 11.85 892,194 lOD,690 770,759 1986 1984 9.53 14,39 15.06 930,007 119,857 114,187 1987 1985` 9.17 9.15 L71 1,138,958 111,550 124,100 1988 1986 9.24 8.36 7.84 1,277.@43 122,759 186,805 1989 1987• 9.69 10.32 10.49 1,484,243 158,314 After changes in benefft prevlaf ons aM/or ectuarfal eaperlence srtigbt (;i;:l2:1;~ -56 ' CITY OP ATLANTIC HHACH ANALYSIS OF PBNSION PUNDINC PeOGHHSS LAST TBN FISCAL YHAHS (1 h A 1 ' (1) (2) (3) (4) (5) (8) Fiscal Peaaion Unfunded Unfunded PBO Year Net Asaeta Benefit Percent (PUnded) Amual as a Percentage Sading Available Obligation Punded PBO Covered of Covered Payroll ' September 30 for Beaefita (PBO) L1)/(21 S2)_(1) Payroll (4)/(g) 1978* S 297 i 493 60.2\ = 196 t 596 32.9\ ' 1979 400 598 66.9 198 718 27.6 1980• 525 768 68.4 243 692 35.1 1981* 697 848 82.2 151 697 21.7 ' 1982 878 914 96.1 36 782 4.6 1983 1,023 1,012 101.1 (11) 892 0.0 1984 1,196 f / / 930 ! 1985• 1,342 1,221 109.9 (121) 1,139 ' 1986 1,520 1,341 113.3 (179) 1,278 - 1987 1,695 1,703 99.5 8 1,454 0.6 ' * After changes in benefit provisicna end/or actuarial s:perisaca aatimates. 4 Not available ftom SCS, Inc. eCtuerial Valuation report. ' Analysis of the dollar amounts of net aeaata available for benefits, pension, benefit obligation, and unfunded pension benefit obligation is isolation can be misleading. 6zpreaainq the net aaseta available for ' benefits as a percentage of the pension benefit obligation provides one indication of the ayatem'e Evaded status on a going-concern baaia. Analyaia of this percentage over [iaie iadicstaa rhether the system ie becoming financially stronger or venter. Generally, the greater this percentage, the stronger the ayatem. The unfunded penaioa benefit obligation and amual covered payroll are both affected by inflation. 8spreeainq the unfunded pension benefit obligation as a percentage of annual covered payroll ' approzimately adjusts for the effects of inflation sad aide aaalyaia of the progress being made in accumulating sufficient anseta to pay benefits rhea due. Generally, the smaller this percentage, the stronger the ayatem. a ' -57- IJG r~~.l :) ibis page iatantionallp left blank. ~ ' -58 - t 1 EEPOETS ON PEDENAL AND STATE PINANCIAL ASSISTANCE ' - sv - ~iii:1?9F ?Dis page intentionally left Dlaak. 1 - 60 - G;;:;23 1 Deloitte . Haskins~Sells Certilieo Public Accou mants Suite 1240 1 200 West Forsyth Street Jacksonville. Florida 32202-4377 (904) 3540333 1 ITT Tele>t: 4995CW2 INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL SCHEDULE OF PEDERAL AND 1 STATE PI NANCIAL ASSISTANCE Honorable Mayor and Hembers of the City Commission, 1 City of Atlantic Beach, Florida: 1 We have audited the general purpose financial statements of the City of Atlantic Beach, Florida, for the year ended September 30, 1908, and have issued our report thereon dated January 16, 1989. These finacial 1 statements and supplemental schedule discussed below are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. 1 We conducted our audit in accordance with generally accepted auditing standards and the standards for financial audits contained in the St d d f A d't f G tal O qa at" P c A t' it" 1 and Functyn~, issued by the U.S. General Accounting Office. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, 1 evidence supporting the amounts and disclosures in the financial statements. M audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluting 1 the overall financial statement presentation. We believe that our audit provided a reasonable basis for our opinion. Our audit was made Eox the purpose of forming an opinion on the general 1 purpose Financial statements taken as a whole. The supplemental Schedule of Federal and State Pinaacial Assistance is presented for purposes of additional analysis avd is not a required part of the 1 general purpose financial statements. The information in such schedule has been subjected to the auditing procedures applied is the audit of the general purpose financial statements and, in our opinion, is fairly 1 stated in all material respects in relation to the general purpose financial statements taken as a whole. 1 DELOI TTE HASRINS S SELLS January 16, 1988 1 1 ~. !-^1r - 61 - ~i U.: ,.;N 1 This page intentionally left blank. ' 1 1 t (j lj:)n ~' - 62 - 1 1 1 This page intentionally left blank. CITY OP ATLANTIC BEACH, FLORIDA SUPPLENBNTAL SCHBDDL6 OP FEDERAL AND STATE FINANCIAL ASSISTANCE THE D GRANT AGENCY/GRAM TITLE .RANT ID NO./GRANT PERIOD FEDERAL DIRECT ASSISTANCE Environmental Protection Aaeacv Wastewater Treatment Construction ID IC120747-030 Period ending: 2/28 BEGINNING FEDERAL PROGBAN BALANCE AT CFDA AWARD OCTOBER 1, [7y BEER AMOBNT 1987 66.418 51,258,789 529.488 TOTAL FEDERAL DIRECT ASSISTANCE STATE OF FLORIDA ASSISTANCE Florida Deoartmeat of Conmunity Affairs Local Government Comprehensive Planning Assistance ID /88-LP-OB-09-26-02-154 Period Ealing: 4/88 N/A S 17,944 ~_ TOTAL STATE OP FLORIDA ASSISTANCE SEE NOTES TO SCHEDULE OP FEDERAL AND STATE FINANCIAL ASSISTANCE ~~~~j ;i ~~,~ ~ - 64 - 1 1 ENDING PUND REVENUE RECOGNIZED BALANCE AT FSDERAL/ CITY INTEEEST TOTAL SERTEI.BIER 30, STATE ~fATCRING INCOlff REVENUE EXPENDITURES 1988 S - S 230,487 S - S 230.487 S 254.975 S S 18.480 S 10.884 S - E 29.364 S 29, 3fL4 S - 65 - ~,v ~~~7 This page inteatioaally le Et blank. ' 1 1 1 ~1 q 1 Deloitte Haskins-Sells 1 Certi(red Public Accountants Suite 7240 200 West Forsyth Street Jacksonville. Florida 32202-4371 19041 354-8333 ITT Telen. 4995542 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE KITH LANS AND REGULATIONS THAT MAY NAVE A MATERIAL HPPECT ON TAS GENERAL PURPOSB FINANCIAL STATEMENTS Honorable Mayor and Members of the City Commission, City of Atlantic Beach, Florida: Ne have audited the general purpose financial statements of the City of Atlantic Beach, Florida, (the "City") for the year ended September 30, 1988, and have issued our report Hereon dated January 16, 1989. Our audit was made in accordance with generally accepted auditing standards and the standards of financial and compliance audits contained in the St d d fo A d't f Go ernme t 1 0 t' P s A t' it' s a d P t' ns, issued by the U.S. General Accounting Office, and accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The maaagemeat of the City of Atlantic Heach is responsible for the City's compliance with laws sad regulations. In connection with our ezamination referred to above, ve selected and tested transactions and records to determine the City's compliance with laws and regulations noncompliance with which could have a material effect oa the general purpose financial statements of the City. The results of out tests indicate that for the items tested, the City of Atlantic Beach, Florida, complied with those provisions of lays and regulations noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe that for the items not tested the City of Atlantic Beach, Florida, was not in compliance with laws or regulations noncompliance with which could have a material effect on the City's /ge~nerlal purpo a fi`na'ncial statements. Decolxxe twsRlNS s seas January 16, 1989 - 67 - n C:)31JA Tbie page intentionally left blank. i 1 1 1 1 1 1 1 (tC~ ;sn5 - be 1 Deloitte . Haskins1Sells 1 Cernhed Public Accoumants Suite 1240 269 West Forsyth Street Jacksonville. Florida 32202-0371 19041 354-8333 ITT Telex: 4995842 1 1 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITN LAMS AND REGULATIONS RELATED TO NONMAJOR FINANCIAL ASSISTANCE PROGRAMS 1 Honorable Mayor and Members of the City Commission, City of Atlantic Beach, Florida: 1 We have audited the general purpose financial statements of the City of Atlantic Reach, Plorida, (the "City") Eor the year ended September 30, 1 1988, and have issued our report thereon dated January 16, 1989. Our audit was made in accordance with generally accepted auditing standards; the standards for financial avd compliance audits contained is the Sta d ds f A d't f G a 1 1 0 ganizations, Programs. Activities. 1 and Functions, issued by the U.S. G¢veral Accounting Office; the Single Audit Act of 1984; avd the provisions of OMB Circular A-128, Audits of State avd Local Governments, avd accordingly, included such tests of the 1 accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City 3s responsible for the City's wmplimce with 1 laws and regulations. In Convection with the ezamivation referred to above, we Selected and tested transactions and records from noamajor federal and state financial assistance programs to determine the City's 1 compliance with laws and regulations noncompliance with which we believe could have a material effect ov the allowability of program ezpenditutes. 1 i 1 1 i 1 1 The results of ous tests indicate that Eor the transactions and records tested the City complied with the laws and regulations referred to above. Our testing was more limited than would De necessary to ezpress an opinion on whether the City administered those programs in compliance in all material respects with those laws and regulations noncompliance with which we believe could have a material effect on [he allovability of program expenditures; however, with respect to the transactions and records that were not tested by us, nothing came to our attention to indicate that the Ciy had violated laws sad regulations. t. WC.1Tt' \~tv7l.V'rn rt .~i'~) DELOITTE NASKI NS 6 SELLS January 16, 1989 - 69 - ~U~3~6 This page intentionally left bloat. i 1 t 1 Ou5307 -~~- 1 Deloitte Haskins--Sells !_ _- - - 1 Ceruhed Public Attoumains Sure 1240 200 West Forsyth Street Jacksonville. Florida 32202-4371 ~904~ 354-8333 ITT Telex: 4995642 1 1 INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS PART OP THE AUDIT OP THE GENERAL PURPOSH PI NANCIAL STATEMENTS 1 1 1 1 Honorable Mayor and Members of the City Conunissfon, City of Atlantic Beach, Plorida We have audited the general purpose financial statements of the City of Atlantic Beach, Florida. (the "City") for the year ended September 30, 1988, and have issued our report thereon dated January 16, 1989. As part of our audit, we made a study and evaluation of the system of internal accounting control of the City to the eztent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial compliance audits contained in the U.S. General Accounting Office Sta d d f A d't f G e tal O a t'o P r ~ .t' d Y coons. Yor the purpose of this report, we have classified the significant internal accounting controls in the following categories: cash 1 receipts and disbursements, investments, receivables, budgets, fized assets, payroll, purchasing, grants, debt administration and general ledger. Our study included all of the control categories listed 1 above. The purpose of our study and evaluation was to determine the nature, timing, and a:teat of the auditing procedures necessary for expressing an opinion on the City's financial statements. Our study and evaluation was more limited than would be necessary to express an 1 opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. 1 The management of the City of Atlantic Beach, Florida, is responsible ti ng for establishing and maintaining a system of interval accoun control. In fulfilling this responsiblilty, estimates and judgments 1 by management are required to assess the expected benefits and related stem ate to s of a s ti h b y jec ve e o costs of control procedures. T provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or 1 disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally 1 accepted accounting pzivciples. Because of inherent limitations in ularities irre g any system of internal accounting control, errors or may nevertheless occur and not be detected. Also, projection of any evaluaton of the system to future periods is subject to the risk that 1 procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. 1 1 _ 71 - 0~153Q8 26is page intentionally left blank. 1 1 1 1 n 72 ' 1 i 1 1 1 1 1 1 i Our study and evaluation made for the limited purpose dencriDad is tDe first paragraph rould not aeceaaarily diecloae all material reaknesaes in the 6yatem. Accordiaqly, re do sot eapre9s an opinion oa the system of internal accounting control of the City of Atlantic Beech, Florida, taken as a rhole or on any of the categories of controls identified in the first paragraph. Borever, our study and evaluation disclosed ao condition that re believe to be a material reaknesa. TDis report is intended solely Eor the use of the City of Atlmtic Beach, Plorida. sad the Savltoumental Protection Agency (the cogniaaat audit agency) and should not be used for any other purpose. This restriction is not intended to limit tDe distribution of this report rbich, upon acceptance by the City Commissioners, is a matter of public record. DSLOITTE BASRIBS 6 SELLS January 16, 1989 _ ,1 _ o~~:~io Tbia page intentionally left blank. ' 1 1 1 1 1 _ 7q _ 00531.1. , 1 Deloitte Haskins+Sells Certified Public Accountants Suite 1240 1 200 West Forsyth Street Jacksonville. Florida 32202-4371 (9041 354-8333 ITT Telex: 4995692 1 INDBPBNDBNT AUDITORS' REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) USED IN ADMINISTERING 1 FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Membets of the City Commission, 1 City of Atlantic Beach, Florida: 1 We have audited the general purpose financial statements of the City of Atlantic Heach, Florida, (the "City") Eor the year ended September 30, 1988, and have issued our report thereon dated January 16, 1989. 1 As part of our audit, we made a study and evaluation of the internal control systems, including the applicable internal administrative controls, used is administering federal financial assistance programs to the a:teat we considered necessary tc evaluate the systems as 1 required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Gove rnmemtal Oroaaizations, Programs. Activities, and Functions, 1 issued by the O.S. General Accounting Office, the Single Audit Aet of 1989, and the provisions of OMB Circular A-128, Audits of State and Local Governments. For the purpose of this report, we have classified the significant internal accounting and administrative controls used 1 in administering federal Financial assistance programs in the following categories: 1 Accounting Controls: Cash receipts and disbursements, investments, receivables, budgets, fi:ed assets, payroll, purchasing, grants, debt administration, and general ledger. 1 Administrative Controls: General Requirements - Political activity, Davis-eacon Act, 1 Civil Rights, cash management, relocation assistance and Federal financial reports. 1 Specific Requirements -Types of services, eligibility, matching level of effort, reporting, special requirements (the City has no 1 nub-recipients or indirect cost allocation system). 1 1 1 - 75 - ~~VJa~.2 This page intentionally left blank. ' 1 OUJ,S1..~ _ 76 - ' The management of the City of Atlantic Beach, Florida, ie responsible foc establishing and maintaining internal control ayatema used is administering ' federal financial assistance programs. Ia fulfilling that responsibility, estimates and judgments by management are required to assess the ezpected beaefita and related costa of control procedures. The objectives of internal control systems used is adminiateriag federal financial asaistaace ' programs are to provide management with reasonable, but not absolute, assurance that, with respect to federal financial assistance programs, resource use is consiateat with laxs, regulations, and policies; resources are safeguarded against waste, loss, and misuse; sad reliable data are obtained, maintained, and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and administrative controls used in administering federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of nay evaluation of the systems to ' future periods is subject to the risk that procedures may become inadequate because of changes is conditions or that the degree of compliance with the procedures may deteriorate. Our study included all of the applicable control categories listed above. During the year ended September 30, 1988, the City had ¢o ¢omnaj or federal financial assistance programs and expended 1001 of its total federal financial assistance under its one nonmajor federal financial assistance program. With respect to internal control systems used in administering this nomiaj or federal financial assistance program, our study ' and evaluation included coasidertng the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, sad evaluating any weaknesses. Our study and evaluation was more limited than would be necessary to ' e:press an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Atlantic Beach, Florida. Accordingly, we do not ezpress an opinion on the internal control ' systems used in administering the federal financial assistance programs of the City of Atlantic Beach, Florida. However, our study and evaluation and our examination disclosed no condition that we believe to be a material weakness in relation to a federal financial assistance program of the City of Atlantic Beach, Florida. ' This report is intended solely Eor the use of the City of Atlantic Beach, Florida, and the Eavi ronmeatal Protection Agency (the cognizant audit agency), and should not be used for any other purpose. This restriction is ' not intended to limit the distribution of this report, which, upon acceptance by the City Commissioners of Atlantic Heach, Florida, is a ~m\atte'r` of{' p1~ubl i\c`reco1r'd. ' `-~ WO `~lE RT~IC 61.,1 ~~ DELOITTE t/ASRINS b SELLS January 16, 1989 _ „ _ 005314 Tbis page intentionally left blank. ' 1 7B ' ~~.1~~ ~ 1 REPORT OH IHTERHAI. COHTROLS AHO COMPLIAHCE WITH LAWS AHU REGULATIONS 1 ' -79- _ (~~1J~16 TrIIS PAGE INfENfIONALLY LEFT BLANK. -80- 00531.7 r r 1 ~ Deloitte Haskins--Sells Cendretl Public Attou roams Suite 7240 1 200 West Forsyth Street Jacksonville. Floritla 32202-4371 ~904~354~8333 i ITT Tele.: 4995042 1 1 Honorable Mayor and January 16, 1989 City Commissioners City of Atlantic Beach, Florida 1 Dear Sirs: 1 We have audited the general purpose financial statements of the City of Atlantic Beach, Florida (the "City") for the year ended September 30, 1988, and have issued our report thereon dated January 16, 1989. Our audit was made in 1 accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations 1 Programs Activities and Functions, issued by the U. S. General Accounting Office and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. 1 REPORT ON INTERNAL ACCOUNTING CONTROL 1 As part of our audit, we made a study and evaluation of the system of internal accounting control of the City. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: 1 cash receipts and disbursements, investments, receivables, budgets, filed assets, payroll, purchasing, grants, debt administration and general ledger. Our study included all the control categories listed above. The purpose of our 1 study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for 1 expressing an opinion on the entity's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of 1 the categories of controls identified above. 1 -81- 1 The management of the City is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is Subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose described in the second paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the City taken as a whole or any of the categories of controls identified in the second paragraph. However, our study and evaluation disclosed no condition that we believe is a material weakness. Our study and evaluation did, however, disclose the attached matters that, although not considered by us to be material weaknesses, are weaknesses in internal accounting control for which corrective action might be taken. REPORT ON COMPLIANCE The management of the City is responsible for the City's compliance with laws and regulations. In connection with our audit referred to in the first paragraph, we selected and tested transactions and records to determine the City's compliance with laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements of the City. _g2_ ~Il',•,~.~ ~ 9 e 1 t 1 The results of our tests indicate that Eor the items tested, the City complied with those provisions of laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe that for the items not tested the City was not in compliance with laws or regulations, noncompliance with which could have a material effect on the City's general purpose financial statements. t t t f t R f f f This report is intended solely For the use of management of the City, the City Commission, and the Auditor General of the State of Plorida and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Commission, is a matter of public record. Yours truly, DELOITTE HASKINS 6 SELLS -83- ,^zECTIOP I - PRIOR YEAR COMMERTS During the year ended September 30, 1988, all recommendations brought to the attention of management in the letter report for the year ended September 30, 1987 were addressed with the ezception of the following: ER~SLMBRARCE SYSTEM Finding - The City does not presently use an encumbrance accounting system in its Governmental Fund Types and other budgeted funds. Backnround - The City presently manages its expenditure budgets by comparison of actual expenditures incurred to budgeted amounts. This requires considerable judgment as total expenditures approach their budgets in that the Finance Department must accumulate and manually determine the extent of outstanding and in-process purchase orders and estimate emergency ezpenditures. An encumbrance system is a widely-used and valuable tool in this process. With an encumbrance accounting system, the initial accounting for expenditures begins with the purchase order or request which is recorded on the system as an appropriation prior to the actual ezpenditure. This allows for more efficient management of budgets as outstanding purchase orders representing encumbered funds are recorded and accumulated on the system. In the prior year, we recommended that the City perform a feasibility study to determine the cost and benefits of establishing an encumbrance system. At that time, the Commission determined that the benefits did not exceed the cost. Recommendation - As the City grows in size and complexity the City needs to ensure that the internal accounting control system is periodically evaluated and enhanced to meet the new demands. In the future, we recommend the City continue to consider the establishment of an encumbrance accounting system. PAYROLL Find ina - In the prior year, we made recommendations for improvement in the personnel time reporting process. All of these recommendations were implemented, however, during our audit we noted that the police and fire departments do not require all personnel to use time clocks and time cards Recommendation - To further improve internal controls and to establish a uniform policy, the City should require all employees to follow established time clock policies and procedures except in emergency situations. _gq_ OU:)~J~ t 1 1 SECTION II - CURRBIVT YEAR COi4~ENTS During the audit of the Financial statements as of and for the year ended September 30, 1988 the following conditions were noted: ZNVENTORY Finding - The City keeps a perpetual card inventory system for the public works storeroom. However, the City has not yet established a perpetual inventory system for the water and sewer parts. ' Recommendation - The City should consider expanding inventory card system to include the water and sewer inventory. The City should also consider converting ' system to a microcomputer to improve .the efficiency effectiveness of this process. 1 1 1 PURCHASING its the and Finding - During our testing we noted instances where the established purchasing procedures were not being followed. We noted instances where the Department Heads had made commitments for purchases prior to submitting the requisition to the purchasing agent. We also noted an instance where the purchasing agent did not obtain the required number of price estimates. Recommendations: The Purchasing Agent should obtain estimates and price quotes as outlined in the Policies and Procedures manual rather than allowing department heads to make commitments for purchases. The Purchasing Agent should use and retain the preprinted forms for all estimates and price quotes obtained from vendors. BUDGET Finding - During our review and testing of the budget procedures we noted that budget amendments for projects initiated and authorized by the City Comanission during the year (subsequent to the adoption of the original budget) were not approved in advance of expenditures for these projects. As a result, expenditures are incurred without an amendment to the budget. The budget amendments for these projects were subsequently authorized. -85- Recommendation - The City Commission should consider amending the budget and appropriating the necessary resources prior to incurring expenditures for these projects. R-f ~i~~Y~y Finding - The City's Ordinance Code does not contain a specific investment policy. Background - The City's investment practices are governed by Chapter 280, Florida Statutes. The specific investment strategy is determined by the Finance Director within the boundaries of Chapter 280 which allows the City to invest in certificates of deposit, money market certificates, obligations of the U. S. Treasury, its agencies and instrumentalities, repurchase and reverse repurchase agreements collateralized by U. S. Treasury securities, and the State Hoard of Administration. while Chapter 280 allows for a variety of investments, the Finance Director has conservatively invested in certificates of deposit and the State Board of Administration. These deposits and investments are considered to be category one credit risk (as defined by Governmental Accounting Standards Board Statement GASB No. 3 which means they are fully insured or collateralized with securities held by the City's agent in the City's name. (Note: GASB No. 3 categorizes cash and investment balances according to credit risk with category one indicating the least amount of risk assumed and category three indicating the most risk assumed). Recommendations: The City should conside[ adopting in its Ordinance Code a specific investment policy. While State statutes govern the types of investments which can be made, a wide latitudes exists. By having a specific ordinance the City could target those types of investments which are deemed to meet the investment strategy of the City. The Commission may wish to require a quarterly report from the Finance Director submitted to the City Manager and City Commission as to the types of investments currently held and market value of those investments. _ -86- U1J;) 1 1 ' Pindina - As part of our audit we reviewed the internal accounting controls surrounding investment transactions, wire transfers and withdrawal transactions. 1 1 1 Backs round - The City's banking agreements require 2 of 3 authorized signatures (City Managez, City Clerk or Pinance Director) Eor any wire transfers, investment purchases and withdrawal transactions for all of its banks ezcept the State Board of Administration (SBA). However, any transfer from the SBA can only be made to Florida National Bank which then requires 2 authorized signatures for any other disposition. Based upon the review and testing of the wire transfers and investment transactions we noted no deviation or instances of noncompliance with this policy. In addition we confirmed this policy via conversations with each of the. City's banks. Recommendation - The City Should Continue to monitor their internal accounting controls to ensure compliace with the system. The City should also notify in writing, all of its banks that compliance with their banking agreements is mandatory. _g7_ (i~;;324 SECTION III - STATE REPORTING REOQIRENHATS The Rules of the Auditor General, State of Florida, require that this report be filed with the Auditor General together with audited financial statements. Chapter 10.550, Rules of the Auditor General - Local Government Entity Audits further require that this report specifically address, but not be limited to, the matters described in Rule 10.559(1)(K). Accordingly, in connection with our audit of the financial statements of the City, for the year ended September 30, 1988, we report the following: 1. No irregularities were reported in the preceding audit. 2. All recommendations made by us in connection with the preceding annual financial audit have been followed or adequately addressed except as noted in Section I of this report. 3. Recommendations, if any, to improve present financial management, accounting procedures and internal accounting controls are addressed in this report. 9. During the course of our audit, nothing came to our attention to cause us to believe that the City; a) was in violation of laws, rules and regulations; b) made any illegal expenditures. However, it Should be noted that ou[ audit was not directed primarily towards obtaining knowledge of all possible violations or improprieties and our study (and therefore our procedures and tests) were limited as described in the second and sixth paragraphs of this report. 5. No improper accounting procedures were found within the scope of our financial audit. Circumstances, if any, involving the adequacy of accounting procedures are addressed in this report. 6. No failures to properly record financial transactions were found within the scope of our financial audit. Q ~i J .3 ,~ : ) -88- 1 1 1 7. No inaccuracies, irregularities, shortages or defalcations were discovered in the scope of our ezamination. 8. The financial report for the year ended September 30, 1988 filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes, is in agreement with the annual financial audit report for the same period. 9. In connection with our ezamination of the general purpose Financial statements of the City, for the year ended September 30, 1988, in accordance with the standards for financial and compliance audits contained in the Standards for A dit of Governmental issued by the U.S. General Accounting Office; the Single Audit Act of 1989; and the provisions of OMB Circular A-128, a A'r f State and Local Governments, we noted no instances of noncompliance with laws and regulations related to federal programs. • e • • s + : -89- 1t1IS PAGE INIENIIONALLY I4`C BLANK _ -90- 1 1 t 1 1 1 1 e Deloitte Haskins+Selis Certified Public Accoumants Suite 1240 200 West Forsyth Street Jacksonville. Florida 32202-4371 (906) 354-9333 ITT Telex: 4995642 January 16, 1989 To the Honorable Mayor and City Commissioners City of Atlantic Beach, Florida: In connection with our audit of the financial statements of the City of Atlantic Beach, Florida for the year ended September 30, 1986, I represent the following: (1) I am the Auditor in Charge of the above-mentioned audit within the meaning of Section 11.95(3)(a)6., Florida Statutes (as amended by Chapter 87-114, Laws of Florida); (2) i meet the education requirements described in Section 11.95(3)(a)4.p., Laws of Florida. Yours truly, DELOITTE HASRINS fi SELLS by 9-~ Jame J. Sch uer, Partner-in-Charge -91- (iG53?.3 141LS PAGE INfEITl'IGNAILY )gr BLANK i 1 1 1 1 1 l)li:).~~~~ -92- ~~ CITY OF ' s~tlartle ~eaek - ~lartda. i16 OCEAN BOULBVABD P. o. Box ss ^ ATLANTIC BGCH, PLORmAa423~ ' V ~ T6LBPHONBISWI2I&9ae6 ' February 14, 1989 Hr. Charles L. Lester ' Auditor General Post Office Box 1735 Tallahassee, FL 32302 Dear Mr. Lester: ' Please accept this letter and the attached memorandum as the official response to the audit of the fiscal year ended September 30, 1988, as required by Chapter 10.5000, Rules of the Auditor General. ' Our responses [o the auditors' management letter regarding internal control is included in the attached memorandum. ' Please contact me or my Finance Director, Harry Royal, if you have questions or need additional information. ' erely, Richard C. Pe lbws City Nanager RCF/dh Attachments: Memorandum dated February 10, 1989 ' 2 copies 1987/98 Audit Report 1 1 (iC~:1330 e 1 1 1 CITY OF rgtlaatie $'eaels - ~lotida il80CEAN BOULEVABD P.O. BOX 25 ATLAN77C BEACN, FLORmA 9PZlt TELEPNONB Is W I R~42996 February 10, 1989 M E M O R A N D U H TO: City Hanager Richard C. Pellows FROM: Finance Director Harry E. Royal RE: RESPONSE TO AUDITORS' MANAGEMENT LETTER In response to the auditors' management letter on internal control, I would like [o offer [he following comments: Encumbrance System N¢ have revised OUr general ledger Co include encumbrances. Due t0 the costs and other problems involved in implementing an on-line encumbrance system, ve had planned to utilize a personal computer [o accumulate the information necessary for an off-line system. The information from the off-line system would be entered during [he monthly close out of the general ledger system. However, we have not been able to acquire a personal computer for the purchasing department because of [he lack of budgetary authority. Payroll ' We will review the timekeeping procedures at the police and fire departments co determine the feasibility of implementing the auditors' tecommenda [ion. Inventory ' Our budget this year includes funds to build an addition on the public works building to store the water and sever inventory. This will physically locate [he inventory in the same location as the inventory clerk and we should be able [o implement the auditors' recommendation. Purchasing Effective October 1, 1988, [he Purchasing Agent vas placed under Nie administration of [he Finance Director. This change in organizational structure should Lmprove [he compliance vi.[h established purchasing ' procedures. In addition, a meeting with de pa rtmenr heads has been scheduled [o discuss and hopefully resolve the problems noted by the auditors. O~;i331_ 1" ' RESPONSE Iffif0...page 2 i Budget Ne will adopt the necessary procedures to implement the auditors' recommendation regarding budget ad,J us[mente. ' Investments We will review the recommendations regarding investments and develop the policies and reports [o implement khe auditors' recommendations. 1 1 1 1 1 UU533?. ~ Deloitte Haskins+Sells Cendie0 Public Pccountants 1 CITY OF ATLANTIC BEACH, FLORIDA Single Audit Report for the Fi=cal Year Ended September 30, 1988 i i 1 1 1 1 1 OOi: ~~ CITY OF rltfantie S"eacl - ~louda ]160CEAN BODLEVARD P.O. BO%46 ATLANTIC BEACH. FLOAB)A aP43J TELEPHONE 190114Ia-8395 February 10, 1989 M E M O R A N D U M T0: City Hanager Richard C. Fellows PROM: Pinance Director Harry E. Royal RE: RESPONSE TO AUDITORS' MANAGEMENT LETTER In response to [he auditors' management letter an internal control, I would like [o offer [he fo llaving comments: Encumbrance System Ne have revised our general ledger [o include encumbrances. Due to [he costs and other problems involved in implementing an on-line encumbrance system, we had planned to utilize a personal computer to accumulate the information necessary for an off-line system. The information from the off-line system would be entered during the monthly close out of [he general ledger system. However, we have not been able to acquire a personal computer fot [he purchasing department because of the lack of budgetary authority. Payroll Ne will review the [Imekeeping procedures at [he police and fire departments [o de [ermine the feasibility ~of implementing [he auditors' r ecommenda[ion. Inventory Our budget this year includes funds to build an addition on the public works building to store the water and sewer inventory. This will physically locate [he inventory In [he same location as the inventory clerk and we should be able [o implement [he auditors' recommendation. BudKet He will adept the necessary procedures to implement the audltore' recommendation regarding buJRet adjustments. RESPONSE MEMO.,.page 2 Investments He will review [he recommendations regarding investments and develop the policies and reports to implement the auditors' recommendations. Deloitte Haskins-~-Sells Certihed Public Amoumanls Suite 1440 200 We_I Forsyth Sveef Jacksonville. Florida 322024371 X904) 354-8333 ITT Tele.: 4995842 Honorable Mayor and January 16, 1986 City Commissioners City of Atlantic Beach, Florida Dear Sirs: We have audited the general purpose financial statements of the City of Atlantic Beach, Florida (the 'City") for the year ended September 30, 1988, and have issued our report thereon dated January 16, 1989. Our audit was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations. Proa[ams. Activities. and Functions, issued by the U. S. General Accounting Office and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. REPORT ON INTERNAL ACCOUNTING CONTROL As part of our audit, we made a study and evaluation of the system of internal accounting control of the City. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: cash receipts and disbursements, investments, receivables, budgets, fixed assets, payroll, purchasing, grants, debt administration and general ledger. Our study included all the control categories listed above. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary foc expressing an opinion on the entity's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting Control taken as a whole or on any of the categories of controls identified above. The management of the City is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the eapected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are eaecuted in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose described in the second paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not eapress an opinion on the system of internal accounting control of the City taken as a whole or any of the categories of controls identified in the second paragraph. However, our study and evaluation disclosed no condition that we believe is a material weakness. Our study and evaluation did, however, disclose the attached matters that, although not considered by us to be material weaknesses, are weaknesses in internal accounting control for which corrective action might be taken. REPORT ON COMPLIANCE The management of the City is responsible for the City's compliance with laws and regulations. In connection with our audit referred to in the first paragraph, we selected and tested transactions and records to determine the City's compliance with laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements of the City. The results of our tests indicate that foz the items tested, the City complied with those provisions of laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe that for the items not tested the City was not in compliance with laws or regulations, noncompliance With which could have a material effect on the City's general purpose financial statements. This report is intended solely for the use of management of the City, the City Commission, and the Auditor General of the State of Florida and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City Commission, is a matter of public record. Yours truly, DELOITTE HASKINS fi SELLS SECTION I - PRIOR YEAR CONMBNTS During the year ended September 30, 1988, all recommendations brought to the attention of management in the letter report for the year ended September 30, 1987 were addressed with the exception of the following: ENCUNBRAPCE SYSTEM Finding - The City does not presently use an encumbrance accounting system in its Governmental Fund Types and other budgeted funds. Background - The City presently manages its expenditure budgets by comparison of actual expenditures incurred to budgeted amounts. This requires considerable judgment as total expenditures approach their budgets in that the Finance Department must accumulate and manually determine the extent of outstanding and in-process purchase orders and estimate emergency expenditures. An encumbrance system is a widely-used and valuable tool in this process. With an encumbrance accounting system, the initial accounting for expenditures begins with the purchase order or request which is recorded on the system as an appropriation prior to the actual expenditure. This allows for more of £icient management of budgets as outstanding purchase orders representing encumbered Eunds are recorded and accumulated on the system. In the prior year, we recommended that the City perform a feasibility study to determine the cost and benefits of establishing an encumbrance system. At that time, the Commission determined that the benefits did not exceed the cost. Recommendation - As the City grows in size and complexity the City needs to ensure that the internal accounting control system is periodically evaluated and enhanced to meet the new demands. In the future, we recommend the City continue to consider the establishment of an encumbrance accounting system. PAYROLL Finding - In the prior year, we made recommendations for improvement in the personnel time reporting process. All of these recommendations were implemented, however, during our audit we noted that the police and fire departments do not require all personnel to use time clocks and time cards. Recommendation - To fuxtheY improve internal controls and to establish a uniform policy, the City should require all employees to follow established time clock policies and procedures except in emergency situations. SECTIOP II CURRENT YL+ag CONNENTS During the audit of the financial statements as of and for the year ended September 30, 1988 the following conditions were noted: INVENTORY Finding - The City keeps a perpetual card inventory system for the public works storeroom. However, the City has not yet established a perpetual inventory system for the water and sewer parts. Recommendation - The City should consider expanding its inventory card system to include the water and sewec inventory. The City should also consider converting the system to a microcomputer to improve the efficiency and effectiveness of this process. PURCHASING Finding - During our testing we noted instances where the established purchasing procedures were not being followed. we noted instances where the Department Heads had made commitments for purchases prior to submitting the requisition to the purchasing agent. We also noted an instance where the purchasing agent did not obtain the required number of price estimates. Recommends ion The Purchasing Agent should obtain estimates and price quotes as outlined in the Policies and Procedures manual rather than allowing department heads to make commitments for purchases. The Purchasing Agent should use and retain the preprinted forms for all estimates and price quotes obtained from vendors. BUDGET Finding - During our review and testing of the budget procedures we noted that budget amendments for projects initiated and authorized by the City Conmission during the year (subsequent to the adoption of the original budget) were not approved in advance of expenditures for these projects. As a result, expenditures are incurred without an amendment to the budget. The budget amendments for these projects were subsequently authorized. Recommendation - The City Commission should consider amending the budget and appropriating the necessary resources prior to incurring expenditures for these projects. INVESTMENTS Findino - The City's Ordinance Code does not contain a specific investment policy. Background - The City's investment practices are governed by Chapter 280, Florida Statutes. The specific investment strategy is determined by the Finance Director within the boundaries of Chapter 280 which allows the City to invest in certificates of deposit, money market certificates, obligations of the U. S. Treasury, its agencies and instrumentalities, repurchase and reverse repurchase agreements collateralized by U. S. Treasury securities, and the State Board of Administration. While Chapter 280 allows for a variety of investments, the Finance Director has consecvatively invested in certificates of deposit and the State Board of Administration. These deposits and investments are considered to be category one credit risk (as defined by Governmental Accounting Standards Board Statement GASB No. 3 which means they are fully insured or collateralized with securities held by the City's agent in the City's name. (Note: GASB No. 3 categorizes cash and investment balances according to credit risk with category one indicating the least amount of risk assumed and category three indicating the most risk assumed). Recommendati The City should consider adopting in its Ordinance Code a specific investment policy. While State statutes govern the types of investments which can be made, a wide latitude exists. By having a specific ordinance the City could target those types of investments which are deemed to meet the investment strategy of the City. The Commission may wish to require a quarterly report from the Finance Director submitted to the City Manager and City Commission as to the types of investments currently held and market value of those investments. Finding - As part of our audit we reviewed the internal accounting controls surrounding investment transactions, wire transfers and withdrawal transactions. Background - The City's banking agreements require 2 of 3 authorized signatures (City Manager, City Clerk or Finance Director) for any wire transfers, investment purchases and withdrawal transactions for all of its banks eacept the State Board of Administration (SBA). However, any transfer from the SBA can only be made to Florida National Bank which then requires 2 authorized signatures for any other disposition. Based upon the review and testing of the wire transfers and investment transactions we noted no deviation or instances of noncompliance with this policy. In addition we confirmed this policy via conversations with each of the City's banks. Recommendation - The City should continue to monitor their internal accounting controls to ensure compliace with the system. The City should also notify in writing, all of its banks that compliance with their banking agreements is mandatory. SECTIOP III - STATE REPORTIPG REOUI F.MW The Rules of the Auditor General, State of Florida, require that this report be filed with the Auditor General together with audited financial statements. Chapter 10.550, Rules of the Auditor General - Locgi Government Entity Audits further require that this report specifically address, but not be limited to, the matters described in Rule 10.559(1)(K). Accordingly, in connection with our audit of the financial statements of the City, for the year ended September 30, 1988, we report the following: 1. Po irregularities were reported in the preceding audit. 2. All recommendations made by us in connection with the preceding annual financial audit have been followed or adequately addressed except as noted in Section i of ' this report. 3. Recommendations, if any, to improve present financial management, accounting procedures and internal accounting controls are addressed in this report. 4. During the course of our audit, nothing came to our attention to cause us to believe that the City: a) was in violation of laws, rules and regulations; b) made any illegal expenditures. However, it should be noted that our audit was not directed primarily towards obtaining knowledge of all possible violations or improprieties and our study (and therefore our procedures and tests) were limited as described in the second and sixth paragraphs of this report. 5. No improper accounting procedures were Eound within the scope of our financial audit. Circumstances, if any, involving the adequacy of accounting procedures are addressed in this report. 6. No failures to properly record financial transactions were found within the scope of our financial audit. 8 No inaccuracies, irregularities, shortages or defalcations were discovered in the scope o£ our ezamination. The financial report for the year ended September 30, 1988 filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes, is in agreement with the annual financial audit report Eor the same period. in connection with our examination of the general purpose financial statements of the City, for the year ended Septembe[ 30, 1988, in accordance with the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations P[oaram A ivi i F n 'ons, issued by the U.S. General Accounting Office; the Single Audit Act of 1989; and the provisions of OMB Circular A-128, Audits of State and Local Governm nts, we noted no instances of noncompliance with laws and regulations related to Federal programs. x• r e••• r x r: Deloitte Haskins+Sells Certified Public Accountants To the Honorable Mayor and City Commissioners City o£ Atlantic Heach, Florida: Suite 1240 Z00 West Forsyth Street Jacksonville. Florida 32202-4371 1904) 354$333 ITT Telex: 4995542 January 16, 1989 In connection with our audit of the financial statements of the City of Atlantic Beach, Florida for the year ended September 30, 1988, I represent the following: (1) I am the Auditor in Charge of the above-mentioned audit within the meaning of Section 11.95(3)(a)6., Florida Statutes (as amended by Chapter 87-114, Laws of Flozida); (2) I meet the education requirements described in Section 11.45(3)(a)4.p „ Laws of Florida. Yours truly, DELOITTE HASKINS & SELLS by Jame J. Sch uer, Partner-in-Charge 1 1 1 1 CITY OF ATLANTIC BEACH SINGLB AUDIT REPORT POH THE FISCAL MBAR ENDED SBPTEl~BR 30, 1988 TABLB OP CONTENTS Pane Independent Auditors' Repott 3 General Purpose Financial Statemeatat Combined Balance Sheet - All Pund Types sad Aceount Groups 6 Combined Statement of Bevenuee, Ezpenditures and Changes is Yund Balances - All Govermneatal Fuad Types and Ezpeadable Trust Yunda 10 Combined Statement of Revenues, Bspenditurea sad Changes in Pund Balances - Budget and Actual (GAAP Basis) -All Government Pund Types 12 Combined Statement of 8eveauea, Erzpeaaea and Changan in Retaioad Earnings/PUad Balance - All Proprietary Pund Types and Pension Ttuat Yund 14 Combined Statement of Changes in Yinancial Posltioa - All Proprietary Yuad Types and Panaion Trust Yund 15 Notes to Financial Statements 17 r n Y r l Independent Auditors' Report on Supplemental Schedule of Federal sad State Yitlancial Assistance 37 Supplemental Schedule of Federal and State Piaancial Assistance 40 Independent Auditors' Hepozt On Compliance Nith Lava sad Regulations That May Hava a Material Effect oa the General Purpose Piaaacial Stntemen[a 43 Independent Auditors' Report oa Compliance with LdVB and Regulatioaa Related to Nonmajor Federal sad State Piaancial Assistance Programs 45 Independent Auditors' Report on Internal Accounting Controls Based Solely on a Study and Evaluation Made as Part of as Audit of the General Purpose Yinaacial Sta[emeats 47 Independent Auditors' Report oa ICCeraal Coat[Ols (Accounting sad Administrative) - Usad is Administering Federal Yinaacial Assistance Programs 51 - 1 - i V:?l C:i ~ Delo'~tte Haskins+Sells C Cenifletl Public Accoumana Suite 1240 200 West Forsyth Street Jacksonville. Floritla 32202-4377 1904) 354-8333 ITT Telex: 4995042 ' •nuaranuan'i wuuarua~s aarua-r Noaorable Mayor, City Co:mnisaion and City Manager ' City of Atlantic Beach, Plorida: We Gave audited the accompanying general purpose financial atatementa of ' the City of Atlantic Beach, Plorida, as of September 30, 1988 and for the year then ended, as listed in the table of contents. These financial statements are the respoaaibility of the City's management. ' Our reaponaibility is to e:praea as opinion on rheas financial atatemeata based on our audit. We conducted our audit in accordance rith generally accepted euditiag ' standards. Those stmdards require that re plea and perform the audit to obtain reasonable aaaurance about rhether the general purpoae financial statements era free of material misstatement. An audit ' includes e:aminiag, on a teat baaia, evidence supporting the amouata and disclosures is the general purpose financial statements. An audit also includes asseaeinq the accotmtiaq principles used and significant estimates made by management, as rell as evaluating the overall ' financial statement presentation. We believe that our audit provides a reasonable basis for our opinian. Ia our opinion, auc6 general purpoae financial atatementa present fairly, in all material reapecta, the financial position of the City of Atlantic Beach, Plozida at September 30, 1988 and the results of its operations and the changes in financial position of its proprietary fund ' types sad similar trust funds for the year than ended in conformity with generally accepted accounting principles. ' ~i ~Stw. X10 l-4,~-2._. ~ ' S~Q9S ' DELOITTE HASRINS 6 SELLS January 16,1989 - 3 - /~':i 1 C~ 1 1 r• sr ppgpp56 PIN N Ilu SiAYEl9.'Ni lil~~) J ~'~~ - 5 CITY OF ATLANTIC BEACH, FLORIDA COMBINED BALANCE SNEET ALL FLND TYPES AND ACCOIPIT GROUPS SEPT FIBER 30. 1988 Gmernrntal F uM Tvpes Special Oabt Capital Nates dial Re coos Sa ice P ¢ixta A ET Cash and investments 2 (1,072,697 (286,700 (28,665 f 99,278 Other cash and investments Accounts receivable 218,885 27,224 Inventories 48,572 Oue fran other goverments 36,560 Oue from other furuls 8 8,418 Deposits 5,888 Prepaid ¢apenses 109,630 Other assets Restricted assets: Cash and investments 2 Invested cash ri th fi s<al agent 2 Due from other governrmnts Construction in progress 3 Property, plant aM equipment - net 3 Amount avai labia in the debt service fund for payment of long-tens debt Aawunt to be provided for payment of long-tone bonds Aarount to ba provided for paycent of long-tern portion of compensated - absences TOTAL ASSETS See notes to financial statements. (continued) r OC -6- (~QJ~ u.~ 1 1 1 1 1 1 1 1 1 1 Proprietary Fiduciary Fund Tvoes iwul Tvoes Efpendable Enta rori se and Pension Trvst 57,925,370 (1,846,482 66,719 179,066 30 44,271 47,738 10,034 1,711,858 186,073 246,462 11,734,282 Account 6rovos 6enaral 6anaral Long-Ten Fifad O611eaH ans Assele f 28,665 1,060,495 -7- (2,727,326 Totals ]499 1292 f 5,259,192 (4.805,637 66,719 81,626 425,205 444,894 92,783 74,363 84,298 32,564 8,418 3.485 5,000 5,000 109,630 87,044 10,031 10,03! 1,711,858 1,657,818 186,073 310,923 113,736 246,462 1,130,100 14,461,608 12,677,132 28,665 23,860 1,060,495 789,991 89.182 99.249 ~r~b en eec.a22 222.35n _au ~~,~T ~;, >> CITY OF ATLANTIC BfACN, FLORIDA COMBINER BALANCE SHEET ALL NND TYPES AND ACCOUNT GROUPS (Conti nub) Governsssntal Fund Tvoas SP¢Ciil Debt Capital Notet funeral Revenue Service P[9Jeets LIABILITIES ANO F1Ri0 EWITY LIAHI LiTIES: Accounts payable and accrued liabilities f 94,950 f 884 f 73.531 Due to other funds 8 8,418 Current portion of revenue bondf Payable 4 Current liabilities (payable f ron restricted assets): Accounts payable Contracts payable Revenue bonds payable 4 Accrued interest payable Revenue bonds payable - long-t¢m portion 4 Deposits 5,000 Deferred c¢spensatioe 6 General obligation bonds 4 Revenue bonds payable Accrued caeroensated absences, long-tem 4 _ Total liabilities 99.950 9.302 73.537 FIWD EQUITY: Contributed capital Inves 4ient in general fined assets Retained earnings: Reserved for renerals and reel acenentz Reserved for debt service Other reservet Unreserved retained eamingz Fund balances: R¢se rved for payment o/ long-tem debt f 28.665 Reserved for prepaid expenses 109,630 Reserved for inventories 48,512 Reserved for police training and investigations Reserved for ra [i repent Other reserves 120,261 Unreserved fund balances 1.084.789 ~1 },y$~ 52.97/ Total fund equity 1.363.192 313.958 28.665 52.971 TOTAL LIABILITIES AND NNO EQUITY alb faoa o~ ~~r a17~rn7 See notes to financial ttatmentt. _g- O0519Q 1 1 1 1 Proprietary Fend Tvoes Enterori se f 211,082 3.368 60,000 27,338 3.795,725 225,999 4.323.512 5,067,915 Fiduciary FvM Tvws Account Grauas Npsndabla General 6anaral ainl Pension Long-Tan Fi sed irv st 0¢H aaN Ons Assets f 66,719 f 217,000 872,160 89.782 66.719 1.178.342 (2,727,326 1,383,055 295,214 132,025 4,835,695 11.713.904 516.037.416 5.614 1,888,636 1.894.250 51.960.969 2.727.326 51.178.342 52.727.32fi Totals (MeeoruMU• Onlvl ]~ f 380.447 f 334,613 8,418 3,485 3,368 3,600 103,814 111,339 60,000 55,000 27,338 28,438 3,795,725 3,972,615 230,999 173,650 66,719 84,626 217,000 262,000 872,160 551,801 89.182 5.751.356 99.249 5.784.230 5,067,915 d,961,537 2,727,326 2,271,790 1,383,055 1,444,830 295.214 227,481 132,025 111,571 4,835.695 4,168,930 28,665 23,861 109,630 86,664 48,512 27,895 5,614 15,197 1,888,636 1,694,787 120,261 82,658 1.451.718 1.448.922 18.090.266 16.566.126 ba Yes a9J SJJ iVl aV. -9- tiii:319 i CITY OF ATIN(TIC BEACN, FLOR[OA COIBINEO STATEMENT OF REVENUES, IXPENDITURES AND CHANGES IN FUm BALANCES ALL GOVERNMEMfAL FUND TYPES AND IXPENOABLE TRUST FUNDS FOR THE FISUL VFAR FNOEO SEPTFNBER 30. 198A Gaverrrental Spacial FwM Tvoes Dabt [api tal Natal General Revenue Sgry'i Ge Protects Revenues: Taxes f 748,955 (353.017 (62,984 Licenses and perniti 579,799 federal shared revenues State shared revenues 878,031 27,481 Other intergavermental revenues 16,510 Charges for services 4,620 Fines and forfeitures 96,591 COVrt COSt Confiscated property Interest intone 96,865 2,577 Miscellaneous revenue 28.887 S 27.224 Total revenues 2.390.258 73 4.498 65.561 27.224 E.p¢ndi to res: Current. General goverrimen! 659,540 32,365 Public safety 1,244,215 0.4adz and streets 401,439 Intergovernmental services 40,895 Parks and reereatf on 103,788 Debt service: Pr{ncipal reti repent 139,997 Interest and fiscal charges 51,816 Capital outlay 807.412 Total expenditures 2.419.8)7 32.365 I 1 807.412 Excess of revenues aver (under) evpenditu res (59.619) 13 2.133 (129.252) (780.188) Other financing sources (uses): Bond proceeds 407,211 Operating transfers in 8 309,571 10,884 136,056 417,561 Opera Li ng transfers (out) 8 (302.120) j~~l ,brtl) Total other financing sources (uses) 7.451 (250.567) 1 4 eza.nz Excess of revenues and other sources over (under) expenditures and other uses (52,168) 91,566 4,806 44,581 Lund balances, October I, 1987 1.415.360 222.392 23.861 9.387 fund balances, Sep [ember 30, 1988 ~ n~z, 7~J9 5313.958 S 28.665 S 52"9Tt See noees to financial statements. iU'%~ - 10 - 1 1 1 1 iiduclary Fund Totals Expendable (Mesnr andue Onlvl Trust >~ ]9gZ j1,161,956 j1,030,501 519,799 509,819 881 899,512 793,008 16,510 73,604 4,620 3,139 j 4,000 100.591 96,404 367 367 407 6,500 6.500 1.127 877 100,319 92,761 612 56.723 26.712 1 5 2.869.897 2.568.363 2.875 b90,780 776,195 19,064 1,263.279 1,147,739 dOl.d39 411,456 40,895 34,671 103.788 53.389 139.997 67.864 54,816 34,897 807.412 633.792 21.939 3.506.406 3.160.003 (9.583) (636.509) (591.640) 407,211 315,607 872,072 479,150 (563.5711 /192.873) 715.712 601.878 (9,5831 ]9.203 10,238 15.197 1.685 197 1.674.959 S 5.614 $1.76A.400 51.68s_/97 _il_ U.J ! i.i CITY OF ATLANTIC BE1CN, FLORIdI COMBINED STATEMENT OF 0.EVfNUfS, E%PENOTTl8lE5 AND CHANGES 1N sI111D BALANCES BOOGET (GAAP BASIS) AND ACTIk1L ALL GOYERIMENTAL FI111D TYPES FOR THE FISGL YEAR FNDEO SEPTE MBER 30. 198 8 General iu n0 ~ e{al Reven ue Fulls Vartanp Va risnu Favorable Favorable Budeet 6etual (Unfavorable) 4R¢gg1 AeLUaI LUnfaverable) Revenues: laces f 708.346 f 748,955 f 42.609 5325,000 (353.017 (28.017 Licenses and parmi is 508,995 519,799 10,804 Federal shared revenues State shard revenues 847,838 878,031 30.193 63,750 21,481 (42,269) Other inter9overnenntal revenue 14,000 16,510 2,510 Charges far services 3,100 4,620 1,520 Fines and forfai [o res 88,000 96,591 8,591 Interest intone 75,000 96,865 21.865 Miscellaneous revenue 26.327 28.887 4.Sb0 Total revenues 2.267.bDfi 2.390.258 122.652 388.750 74 4 _ 14 ) Ex pentlitu res: Current: General goverment 688,215 659,590 Publ is safety 1,251,652 1,241,215 Roads and streets 408,881 401,439 intra9overeantal services 47,339 40,895 Parks and recreation 108,186 103,788 Debt service: Principal reti repent Interest and fiscal charges Capital outlay Total expenditures 2.498.573 2.M9.877 Exc ezs of revenues over (under) expenditures (230,967) (59.819) 9 [her financing sources (uses): Band proceeds Operating transfers in 309,571 309,571 Operating transfers (oul) pOt.693) 1302.120) Total other financing sources (uses) 1.878 7.451 Excess of revenues all other sources aver (antler) expenditures and other uses (226,089) (52,168) fund balances, October 1. 1987 1.O18.N2 1.415.360 fund balances, September 30, 1986 a 7~ S1"3G;_I9Z Sae notes to financial statements. 28.675 7,437 7.442 444 4,898 ~1 .53fe X4.654 ~Z.~SI _<3..2$1 iJ,f~j~ 1A 1 342.133 28.033 29,400 10,881 (18,516} ___2.523 1}QQ,44B) 125L4i) 38.549 _2.523 (z7o.6on) 1254.542) za.D33 173,921 43,500 91,566 48,066 396 916 ..221.342 312.331 40,750 32,365 8,385 33.900 33,900 (y _ )2 !)V .% ~ 71'1 1 1 1 1 1 totals Debt Serviee FuM 4oi tal erolects FuM ( Ilro 4ue O nl ) Variance Vari 4nte Variance Favorable Favorable Favorable Bu4aet Actusl (Unfavorable) Bud aat Aetual (Unfavorabla) pyQggS Aetual (Unfavorable) _ 560.938 f 62,984 f 2.046 11,092,281 f/, 164, 956 f 72,672 508.995 519,799 10,804 911,588 899,512 (12,076) 14,000 16,510 2,510 3,100 4,620 1,520 88.000 96,591 8,591 1,000 2,577 1,517 76,000 99, M2 23, H2 j 27.2x4 S 27.224 24.327 _ 56.177 31.784 67.938 65.561 3.623 z7.2z4 27.224 2.718.294 2.857.541 139.247 728,965 691,905 37,060 1,251,652 1,201,215 7,437 408,881 401,439 7,442 41.339 40,895 444 142,386 103,788 38.598 150,378 139,997 10.381 150,378 139,997 10,381 58,173 54,816 3,357 58,173 54,816 3.357 S 807.635 807.112 223 807.635 807.412 223 ~Q@,Sibl 7 4 1 1 7 807.635 7 47 223 3.589.409 3.484.467 704.942 l4 1 ) 12 ) 17 1 (807.635) (780.188) _27 447 (871.115) (626.926) 244.189 407,211 407,211 407,211 40),211 136,613 174,056 (2,557) 311,317 417,561 106,211 786,931 872,072 85,141 (604.693) (563.577) 41.122 1 1 1'+4 pu (2.557) ]18.558 4 7 106.214 589.449 715.772 126.263 (10,000) 4,804 14,804 (89,077) 44,584 133.661 (281,666) 88,786 37D,152 23.876 23.861 _~~) (166.945) 8,387 17 875.371 1.670.000 794.629 S 13.A74 S 28.665 f 14.7Qj S (256"022) S 52.971 t a0g 09a S 593.705 51.75R.7R6 f1.16c.081 - 13 - ~i iJ:) 1 f%:J CITY OF ATLANTIC BFAtlI, FLORIDA COMBINED STATEMENT OF REVENUES, IXPE115E5 AND CINNGES IN RETAINED EARNINGS/FIRq BALANCE ALL PROPRIETARY FIRn TYPES AIO PENSION TRUST RR10 FQR TxE FISCAL YEAR ENDED SEPTEMBER 30. 1988 Proprietary Fiduciary Fulls Fu,M Totals Pansi on (Mroran due Only) HRLRA Enle rorl se Trvst ]Q§Q >~ Operating revenues: Customer charges f 2,430,517 f 2,430,517 f 2,261,400 Enpioyer's contributions 5 f 126,740 126,740 76,884 Faployee's contributions 5 12,327 12,327 4,205 State contributions 5 47,738 47,738 43,017 Earnings on investnentz 68,814 68,814 104,619 Other intone 62.689 62.689 95.896 Total operating revenues 2.493.206 255.619 2.748.825 2.586.015 Operating eapense[: P¢rsonal services 677,643 677,643 511,647 Contractual services 248,876 248,876 429,376 Supplies 270,743 210,743 97,240 Repay rs and wintenance 220,308 220,308 95,292 Heat, light and purer 798,712 198,712 175,765 Depreciation 443.651 443,651 353,379 Other expenses 71,087 71,087 76,113 Reti raMnt benefits 5 fi2.840 62.840 53.796 Total operating eapenses 2.071.020 62.840 2.133.860 7.792.608 Operating intone 422.186 192.779 614.965 793.407 Non-operating intone (expenses): Connection charges 381,115 384,415 924,176 Sever generation charge 92,634 92,634 89,585 interest intone 294,471 294,471 236,091 Interest expense (348.095) (348.095) (361.638) Total non-operating intone 423.425 423.425 888.214 Net intone before operating Transfer[ 815.611 192.779 1.038.390 1.681.621 Operating transfers in (out) (309.571) 1.070 (308.501 ) (286.277) Net incace 536,040 193.849 729.889 1,395,344 Add depreciation on fi [ed assets acquired by shared revenues externally restricted for capital acquisitions 157.734 157.134 111.837 lnc rease in retained earnings/fund balance 693,174 193,849 887,023 1,507,181 Retained earnings/fund balance, October 1, 1987 5.952.815 1.691.787 7.b47.602 6.140.421 Retained earnings/fund balance, September 30, 7988 See notes to financial statements 11 ~ fr li (i~5 ~~ 1 1 i cirr of ATLANTIC eEAa, FLwiw ' COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES AND PFNSipI TRU$7 FU10 FOR THE FISCAL YE4R ENOEO $EPTEIBER 30. 1988 ' Proprlltary Fiduciary Funds Lund ' Totals Pansi on fMeea and 0 1 1 Enta rots se Trust 1488 7987 Financial resources were provided by: Operations: N¢t intone Item not requiring working capital during the period -depreciation Norking capital provided by operations Increase in contributed capital Oecrease in restricted assets Increase in current liabilities payable from restricted assets Total sources of working capital financial resources were used for: Acquisition of property, plant and equipment increase in restricted assets Reduction of bonds payable Decrease in current liabilities payable f ran restricted assets Total uses of working capital Net increase in working caps tai Changes in Components of Va rking Capital: increase (decrease) in current assets: [ash and investrantz Accounts receivable Inventories O th¢r current assets Increase in current assets (Increase) decrease in current liabilities: Accounts payable and accrued liabilities Interest payable Customer deposits Current portion revenue boM payable (Increase) in current liabilities Increase in working capital S¢e notes to financial statements. f 536,040 f193.B49 443.6$1 979,891 143,849 283,$13 338,887 1.582.071 193.849 888,954 151,321 176,890 211.253 1.431.418 S lcn 6ca 1193.@9$ f 286,640 f148.i11 (2,135) 47,738 (7,690) 5.493 193.849 (74,538) (57,349) 232 (131.655) 1 66a f193.A49 f 729.889 (1,395,344 443.651 353.379 1,173,$40 1,748,723 263,513 1,414,881 338,867 788,455 1.775.920 4.023.785 888.954 2,401,791 154,321 218.394 178,890 162,465 211.253 222.500 1.431,41¢ 3.005.150 L14L592 51.018.635 f 432,751 (1,072,;80 45,683 29,320 (7,690) 2,336 6.{93 476.157 1.104.035 (74,538) (31,758) (57,349) (49.261) 232 11.381) (131.655) !85.400) 5 3M.so2 51.018.635 - 15 - ~j V.) 1 1 This page iateationallp left bleak. ' i 1 1 1 1 1 ~i05198 - 16 - ' CITY OF ATLANTIC BBACN, FLORIDA ' NOTES TO FINANCIAL STATEMENT'S SEPTEMBER 30. 1988 1. SONIAARY OF SIGNIFICANT ACCOUNTING POLICIES ' The City of Atlantic Heach, Florida (the "City") in incorporated and operates order a form of government which comprisan m elected Citp Commission (four Commiaaionera and a Mayor-commisaionerj and proridea, order the adminiatzation of m appointed City Mmager, the follovinq aervicen: public safety (police and fire), public works (streets and infrastructure), recreation, sanitation, plamiaq, saniaq, rater and sever services and general administrative services. ' This report includes Che finmcial statements of all of the fmda and account groups required to account for those finmcial activities which are administered by and under the jurisdiction of the Mayor and the City ' Commission. The accounting policies of the City conform to a generally accepted ' accounting principles as applicable to govarnmeata. The follovinq is a summary of the more aignificmt policies used is the preparatio¢ of these finmcial statements. A. POND ACCOUNTING The accounts of the City are orgmized on the basin of fmda or accomt groups, each of rhic6 is considered a separate accomting entity. The operations of each fund are accounted for uainq a aaparate net of ' self-balmcing accomta which cbmpriae its assets, liabilities, ford equities, revenue and eapeaditurea or espenaea. The various fmda are grouped by type in the finmcial atatameata. The follovinq Eund types and account groups are used by the City: ' Governmental Funds ' General Fund - The General Fmd is Che general operating fund of the City. It is used to account Eor all finmcial resources a:cept thane required to ba accomted for in mother ford. t Special Revenue Fmd - The Spaciel Revenue Fmda are used to accomt Eor the proceeds of apeciEic revenue aourcea (other than major capital projects) that are legally restricted to ezpmditurea for specified ' purposes. Debt Service Pund - The Deht Service Pmd is used to accomt for the accumulation of resources for, and U:e payment of, long-rem debt principal, interest sad related caata other than bonds payable from the operations of the eaterprine fmda. Capital Projects Puad - Capital Projects Pmda are used to account for financial resources to Da used for the acquisition or construction of major capital facilities (other than those financed by proprietary sad ' special revenue funds). - 17 - ~~ ~iliJl~~ CITY OP ATLANTIC @BACH, PLO@IDA NOTES TO PINANCIAL STATHMENfS SEPTElIDE@ 30. 1988 Pr i racy P d gaternrise Punda - enterprise Punda are used to account for rater, serer and 6anitatiw operations rhich era financed and operated in a mamer similar to private busineaa eaterpriaea. The coats of providing goods or aervicea to the general public era financed or recovered primarily through user charges. Fidueiarv Fuad T t d Age~n y P d - Ttuat Punda are used t0 account for aaaeta held as a trustee or agent by the Citp for oihera. The pension Trust Pund is accounted for is eaaeatially the same mamer as proprietary funds. The Ezpendable Trust Pund is accounted for in eeaeatiallp the same manner as goverwsental fuada. Agency fords are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Account Grouos G e 1 Lo -i Obl'ga ifs A~r.~_~, _ Tala account group is used to account for the outntandiag priacipel Dalancea of long-tern debt and other long-tern liabilities other then those payable from the operations of the enterprise funds. G o 1 F' ed A et A r _ Thia account group is used to account for all fired aaaeta of the Ci[y other than those accounted for in the Enterprise Punds. B. BASIS OF ACCOUNTING The accounting and reporting treatment applied [o a fund is deterniaed by its measurement Eocua. All Governmental Punda sad Ezpendablo Trust Puada are accounted for oa a apanding or "financial flow" measurement focus. Thin means twat only currant aaaeta and current liabilities are geaerallp included on their balance aheate. Their reported fund balance (net current assets) is considered a measure of ^availabla spendable resources." Governnental fund operating atetemente present increases (revenues and other financial aourcee) and decreaaea (ezpeaditures and other financing uses) in not currant aaaeta. Accordingly, they are said to present a summary of souzcea and uaea of "available spendable resources" during a period. The Governmental Puad Types and the Ezpeadable Trust Puad use the modified accrual basis of accounting. Under Che modified accrual basis, revenues are recognized in the accounting period in rhich [hey become available and measurable. Ezpeaditurea, other than interest on general long-term debt which is recorded rhea due, are recognized is the accounting period rhea incurred. O(1:)20(1 - l8 - 1 1 I CITY OF ATLANTIC BHACH, PIAHIDA NOTES TO PINANCIAL STATSMHNTS I BBPTEMBHH 30. 1988 All Proprietary Panda and the Pension Trust Fund are accounted for on a I cost of services or "capital oainteaance" measurement Eocua. This means that all assata end all liabilities (whether current or eon-current) associated with their activity are iveluded on their Dalaace sheets. Their reported fund equity (net total assata) is segregated ia[o I contributed capital sad retained earnings components. Proprietary fund type operating statements presser increaaea (revenues) and decreases (ezpenaes) in net total assets. I The Proprietary Fund Types sad Pension Trust Pund use the accrual basis of accounting. Beveaue is recognised then earned and ezpeasea are recognised when incurred. Water, sever and aaaitatioa services are I billed to customers in advance o¢ a quarterly cycle. A receivable is recorded at year end for unpaid (delinquent) billings leas m allowance for those considered uncollectible. I C. BUDGBTS General goverwneatal revenue and e:peaditures accounted Eor in budgetary I fuada eve controlled by a budgetary accounting system in accordance with various legal requirements which govern the City's operations. Budgets are monitored at vazyi¢q levels of classification detail, however, I e:peaditures carrot legally a:teed total appropriations of the individual fund level. The City currently does not use an encumbrance accounting system. I Budgata nave been adopted for all Governmental Panda (General, Special Revenue, Debt Service and Capital Projects Pundn). The City Manager is authorised to transfer budgeted amounts within departments within any I fund, however, any revisions that increase the total ezpeaditures of any department or fund moat be approved by the City Commission. All necessary supplemental appropriations were adopted by the City Conmission I as part of a quarterly budget review process sad are included in the reported budgetary data. The budget preaeatad oa the Combined Statement of Heveaues, Hzpeaditurea and Changes in Pund Balance -Actual and Budget - is prepared on a GAAP basis. I D. CASN AND INVBSTl.~NTc I ezcept where prohlbi tad, cash resources of the individual funds are combined to form a pool of cash and investaeata. Iaveatmeats in the Pooled Caah Puad eonaiat primarily of iaveated cash and certi Eicatea of I deposit which mature in one year or leas. Interest income earned oa the pooled cash and investments is distributed to the appropriate funds based on the average monthly balance of iavestmeata in each fund. "Other cash sad inveatmeats" represents employee deferred compensation rhich 3s I managed by the International City Managers Association (ICMA). I - 19 - CITY OP ATLANTIC BEACH, PLO@IUA NOTES TO PINANCIAL STATEMENTS SEPTEMBER 30. 1988 In addition to their equities is the pooled tech fund, cash end iaveatmeata of the enterprise Puads include interact bearing deposits bald by the State Board of Adsinietratioa rhich are reatrictad as to their use. Inveatmenta of the Pension trust Yunda are maaged by an iaveatment advisor and eonaiat primarily of mutual fund iaveatmeata. Inveatmenta era valued at coat, e:cspt for the invaataenta of tae deferred compensation and pension trunk fuadn, rhich are valued at market (See Note 2). E. INVENTORIES Inventories, conaiating principally of ezpendable matariala, supplies end fuel, are determined by physical count at the City•a year-end and are valued at the lover of Coat (f irai-in. Eirat-out) or market. During the year inventory is the General Pund is recorded as m espeaditure at tae time of purchase (purchase method) and converted to the consumption method for financial statement purpoaea, Tba inventory balance reported is offset bP a fund balance reserve rhich indicates that it does not constitute "available apeadable resources" even though it is a component of net current aaaeta. P. RESTRICTED ASSETS Certain enterprise fund aaaeta are rewired to be segregated fros other current assets due to various bond indenture agreements and Citp O:dinancea. Tbeae aaaeta are legally restricted for apecifie purpoaea, such as debt service, nev construction, and renevala and replacemata. G. AC O :umIN • POR PIXED - SETC P oor'et fy P ads - Capital e:peaditurea made Eor revenue-produciMj assets, rhich era employed in operations that are accounted for is the proprietary fuada, are capitalised at historical costa and depreciated using the straight-line method over their estimated useful liven as follova: Buildings and i:oproveaieats 40 pears Improvements other than buildings 10 - 50 yearn Equipment 3 - 40 yearn Contributed assets era recorded at fair market value at the date of contribution. Depreciation recognised oa aaaeta acquired or constructed through resources esteraally restricted for capital acquiaitiona is closed to the appropriate contributed food equity account. - 20 - ~;o:)2oz 1 1 1 1 1 1 i 1 1 CITY OP A1T.ANEIC BRACH, FLORIDA NOTHS TO FINANCIAL STATHlOiIPlS SSPTEMHBB 30. 1988 Oenerel Pized A A - Pized aaaeta used in governmental fund Cype operations are accounted for in the General Pized Aaaeta Account Group, rather thaw in governmental fords. All fized aaaeta are valued at historical coat. Donated fized aaaeta era value8 at their estimated fair value on the date donated. No depreciation bas been provided on general fized assets. public domain ("infrastructure") general fized aaaeta such as etreeta sad eidevalke that are generally immovable and of valuo only Co the City of Atlantic Beach have not been capitalized. H. ACCOLreI'ING POR LONGdHRN OBLIGATIONS Long-term obligations, general obligation or revenue bonds, used to finance proprietary Eund operations and payable from revenue of the proprietary fosse are recorded in the applicable fund. General obligation bonds and other forma of long-tarn obligatioaa supported by general revenue are obligatioaa of the City as a whole sad not its individual constituent funds. Accordingly, such urnatured obligations of [he City are accounted foz in the Csnaral Long-Tarn Obligations Aceomt Group. (See Note 9). I. COMPEN ATED c N c Accumulated unpaid vacation sad sick pay are accrued rhan incurred in proprietary funds. The amount of nccumulated vacation and nick pay recorded in the governmental funds is that amount, adjusted to current salary costa, which is ezpected to be liquidated with espeadable available financial resources. Only the current portion is reflected in the funds. Tha remainder of the liability is reported in the General Long-Term Obligations Account Group. The guidelines of Financial Accounting Standards Board Statement No. 93 warn applied is deternininq the liability for both governmental and proprietary fords. J. PROPE@T1C TAXES the assessment of all properties and the collecttoa of all property fazes are made through the property Appraiser and Taz Collector of the City of Jacksonville. General property fazes are recorded as received in cash, which approzimatea fazes levied, leas diacovnta, Eor the current fiscal year. R. INTER TB u ACTIONC During the course of normal operations, the City between funds to construct aaaeta and comply rith other legal restrictions. These Cransactiona are transfers (See Note 8). _ 21 _ bas various transactions local ordinances and reflected as operating c,~;,;zos CITY OP ATLANTIC H¢ACH, PLOHIDA NOTES TO FINANCIAL STAT&MBNTS L. PENSION PLANS The City accounts for its Pemioa Plana under Financial Accounting Standards Board (PASB) Statement No. 35 "Accounting and Reporting by Defined Benefit Pension Plana^. The pension pleas cover aubatantiallp all of the City's full time esployeea. The City records pension costa in the period salaries are earned. Pension eapenae includes normal coat plus amorti ration of past service coat over 25 pears (See Note 5). M. DEP¢RHED COMPENSATION PLAN This City reports its Internal Revenue Code Section 457 deferred compensation plan as an agency fund in accordance rith Govarmental Accounting Standards Hoard (GASH) Statement No. 2 (See Note 6). N. CONTRIBDT¢D CAPITAL Contributed capital in the proprietary fund types repreaeat Contributions Erom other Eunda, developara, end Federal, State and local grant programs. Contributions era used primarily Eor capital outlay projects and are recognised as increases io equity in the period they are earned or received. O. EeseRVe GP B N S BBTAINBD P„~ti)v_~ Heservea recorded in the govetm~ental funds repreaeat portions of fund balance which cannot be appropriated fot eapenditurea or which have been segregated for specific future ones. Heservea recorded in Che enterprise foods are created by the eiiateace of assets restricted Eor debt service, construction, renewals and replacements. P. TOTAL COL1?H7S ON COMBINED STATEMENTS Total columns oa the Combined Financial Statements are captioned "Memorandum Only'• to indicate that they era presented only to facilitate financial analysis. Date in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfuad eliminations Gave not been made in the aggregation of this data. 22 _ f~C52~~'~ 1 1 1 ' CITY OP ATLANTIC REACH, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTBMBEH 30. 1988 ' 2. CASE AND INVESTMENTS ' The City maintains a cash and investment pool that is designed for use by all funds, ezcept for those monies rhich are periodically transferred to the pension custodian and the deferred compensation plan administrators. In addition, iavastmeats are separately held and individually accounted for by ' several of the City's funds where contractual arrangements and bond covenants provide Eor sad require each arrmgements. The deposits and investments of the pension trust fund rhich have been transferred to the pension custodians are held separately Erom those of other City funds and are required to be administered by an investment advisor. At September 30, 1988, the carrying amount of cash on head and on deposits ' with banks, including interest bearing deposits, vas 511,052 and the related bank balance vas 5409,989 million. Monies rhich are placed on deposit rich financial institutions in the Eorm of demand deposit accounts, time deposit ' accounts sad certificates of deposit are defined as Public Deposits. All of the City's public deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chapter 280, '•Plorida Security for Public Deposits Act." Under the Act, all qualified public depositories are ' required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, times the depository's collateral pledging level. The pledging level may ' range Erom 500 to 1251 depending upon the depository's financial condition and establishment period. All collateral must be deposited rich as approved financial institution. Any losses to public depositors are covered by ' applicable deposit insurance, sale of securities pledged as collateral and, iE necessary, assessments against other qualified public depositories of the same type as the depository in default. ' The City's investment practices are also governed by Chapter 280, Florida Statutes, which alloys the City to invest in certificates of deposit, money market certificates, obligations of the U. S. Treasury, its agencies and ' instrumentalities, repurchase sad reverse repurchase agreements collateralized by U. S. securities, and the State board of Administration. Tae pension trust funds ere also authorised to invest is corporate bonds, preferred stocks, common stocks, and mutual funds. ' Cash and investments at September 30, 1988 era categorized in accordance with GASH Statement No. 3 to indicate the level of risk assumed by the ' City. The certificates of deposits are considered [o be category one credit risk deposits, which means that they are insured or collateralized with securities held by the City's agent is the City's name. The pension ' investments held by Sun Bank Trust Department are considered to be category one credit risk investments, which means that they are Eully insured (5100,000 per participant). The deposits and investments with state agencies and the International City Managers Association (deferred ' compensation) are not included or classified by credit risk since they are held by independent agencies. There rere no violations of the legal or contractual provisions Eor deposits and investments. 1 _ 23 _ ~)VJZJ~J CITY OP ATLANTIC BHACH, PLOHIDA NOTES TO PINANCIAL STATENSNTS SBPTEtfl3EH 30. 1988 Tha totsl cash and investment balance of the Citp is comprised of the follorlag items: petty cash on hand E 400 Savings and money ma[ket accounts 11.452 Total cash 11.852 Certificates of deposit rith local banks: Less than 31 days maturity 1,898,609 31-90 days maturity 1.014.858 Total certificates of deposit 2.913.467 Pension Trust Investment: Ceah sad short-term Treasury investments 14,781 Corporate Pi:ed Income Pund 302,110 Corporate ¢quity Puad 496,029 Corporate Inter-Pi:ed Income Pund 872.697 Total Penaioa Trust Investment 1.685.617 Investments rich ICMA 66,719 Invested cash with fiscal agent 382,552 Investment with State BOatd of Administration 2.168.634 Total investments 4.303.522 Total cash and investments 7,226,841 Lena: restricted cash and investments 1,897.931 Total unrestricted cash and iaVeetmeats ~5.3~0.910 3. PHOPEBTY, PLABT AND EQOIP!ffiNT A summary of changes is general fined assets follows: Balance, Balance, October 1, September 30, 1987 Additions Deletions 1989 Land S 365,268 S 38,600 ; 403,868 Buildings 710,815 339,479 1,050,294 Improvements other than buildings 441,318 441,318 Equipment 759.389 98,738 21 2 831.896 Total 52.271.790 $476.E17 E21.281- 52.727.]26 ;~Ui,206 _ 24 - 1 1 1 1 1 1 f CI1R Ol ATL7IBSIC BEACH, F1gHIDA HO1BS 7.b PIHAHCIAL fTAI'ABB9:S SHP2~E@ 30, 1988 A sumnrp of fized aseeta of fha Batsrpriae Funda at September 30, 1988 follosras Total Voter Sorer Sanitation 8uecanee r Oisl rict Enterprise Fund Fund Fund Velar fund $pvar Fund Funds LaM f 65,557 j 26,681 f 117,799 f 210,037 Buildings f 393.718 505,685 27,004 53,356 979.763 Iryrovenents other than buildfngs 1,664,836 5,525,083 1,383,716 3,107,310 11,680,915 Ieprovenen is free ,joint venture 616,802 676,802 Machi nary and equi prient 105,749 115,230 (359,391 22,024 2,259 604,653 Lass - accueulaled depreciation (740 728) (1.082.289) (190.786) (113.210) (230.905) (2.357.918) Total Capital prof ecta currently authorized cona3at of: commicted Hzpended to Pedaral Hequired Project September 30, City and State Future Authorization 1988 pundinu Pundinc pinancin9 Hater aystem improvements (1.081.334 f 1~ ee~;a fa9z.ann y~_ ~ General capital ptojeCto f 938.225 f 545.214 E252.212 L~ f140.799 - 25 ~i li :)~~~! CITY OF ATLANTIC BEACH, PLOHIDA NOTES TO FINANCIAL STATBMEBTS 4. LONG-TEEM OBLIGATIONS The following is a nummry of the long-tern obligationn of the City for the year ended September 30, 198 E: General Enterprise Lmo-Tern Obligations Ponds Gmerai Accrued Revenue Obligation Coapensated Revenue ~_ Bands Absences ~ Total Obligations payable at October 1, 1987 (551,801 (262,000 :99,249 34,031,215 54,944,265 Ner Bands Issued: 1985 Florida Municipal Loan Council Pooled 4oan P tog ran Revenue Bonds 415,356 415,356 Oebt Principal paid (94,997) (45,000) (172,121) (312,118) Net decrease in cpapensated absences (10.067) (10.067) Obligations payable at September 30, 1988 5872.160 3217.000 ~g.1B1' tl 8G9 094 f5.03].43fi Bonds payable at September 30, 1988 are comprised of th¢ following individual issues: General obligation bonds: 1971 Sever System serial bonds, payable in amual instalments of 522,000 to 240,000 plus inteteat through 1995, bearing interest at 5.75\ S 217,000 Revenue bonds: 1985 Buccaneer District Natsr and Sever aerial bonds, payable in equal amual instalments of principal and interest of approziaatelp {347,500 through 2000, bearing inteteat at 9~ 2,487,100 State Pollution Control Bonds, Series "4", payable in annual iaatalmenta of =50,000 to :190,000 plus interest through 2000, bearing inteteat at 8i 1,350,000 1985 Plorida Music ipal Loaa Council Pooled Loan Program Eaveaue Bonds payable in aonual instalments of 569,284 [0 439,000 plus interest through 1995, bearimi inteteat at a variable rate (approximating 7.0~ at September 30, 1988) 899.159 total f4. 948.254 -26- t 1 1 1 t 1 1 1 1 1 1 1 CITY OP ATLANTIC BeACH, PIAHIDA NOTES TO FINANCIAL STAT@ffi7TS SEPIEMHHH 30. 1988 The annual requi rementa to amor[ia ell debts outetandinq at September 30, 1988, are as follovas General Long-Tarn Obligations Year Eoding A ccount Gr ouo E t prise P d Seytember 30 Princioal Interest Total pdncioal Interest Total 1989 5144,964 S 79,354 5219,318 S 63,368 5334,729 5398,097 1990 144,964 64,331 209,295 191,768 318,527 510,295 1991 149,964 54,308 204,272 212,968 300,912 513,880 1992 149,964 43,961 393,925 235,168 281,389 516,557 1993 149,964 33,614 183,578 253,268 259,878 513,146 Thereafter 349.340 25.619 374.959 _2.902.554 _1.032.256 3,934.810 T9 tal E1.089,160 E296.187 51.385.397 E3.H59_096 E2. 527.691 E6.386_785 General obligation bonds of the Lonq-Term obligationa Account Gtoup represent bonds issued by the City for conatructioa of and later improvements and extensions to (1971 aeries) the Citp's never system. These bonds were issued as general obligations of the City and, therefore, are not obligationa of tae individual Haterpriae (Serer) Eund. During 1985, the City obtained a State Boad Loan which is administered by the State Hoard of Administration sad secured Dy State Pollution Control Hoars, Series "4", to support funding for improvement and eapanaioa of its never system. These bonds are payable Eros pledged reveauea derived from the operations of the sever system. IInder the terms of tae agreement, the City may later pledge additional legal and available Eunda to repay the lom, as it deems appropriate. During 1985, the City issued revenue bonds to acquire m additional rater and serer system. These bonds ate papaDle from the sat revenues of the Buccaneer District Water and Serer System end are not general obligations of the City. During 1986, the City elected to participate in the Florida Municipal Loan Council Pooled Loan Program (Hevenue Boada, Series 1985). Under this program the City is eligible to Dorror up to 51,070,510 to ba used to finance capital projects. Through September 30, 1988 the City has borrowed 51,070,510 of which appro:imately 2.75\ is included as an obligation of the Hnterprise Pund with the remainder as an obligation of the Long-Term Obligations Account Group. The amortisation schedule above includes interest on these obligationa at an assumed rate of 7.0~, rhich appro:imatea the actual rate at September 30, 1988 (the actual rate is variable). _ 27 _ CITY OP ATLANTIC BEACH, PLOEIDA NOTES TO FINANCIAL STATSlRNTS Revenue bonds of the Enterprise Funds contain various terms and covenants which require the City to maintain adequate user rates and to account for the deposit and disburaemani of revenues in accordance vitb eatabliahed priorities. M of September 30, 1988, the City ran aubstaatiallp in compliance vith such covenants. 5. El~LOYEE BENEFITS The City has three separate defined benefit single employer pension plans (General Employees, Police and Firefighters) which cover substantially all of its employees. The City accounts for the plans as pension trust funds. PLAN OESCBIPTION G 1 Em 3 ye P Pla All City employees, ezcept for police, firefighters and part-time employees, are covered under the General Employees' Pension Plan. Current membership is comprised of the following: GCOUa September 30, 198E Retirees and beneficiaries currently receiving benefits 10 Vested terminated employees g Active employees: Fully-vested 60 Non-vested ~ Total ~ j Employees attaining the age of 60 sad completing five or more continuous years of service, are entitled Co a monthly benefit at 2.25 of their average monthly earnings as defines is the plan for each year of continuous service. Active employees rho become disabled receive benefits computed as regular retirement benefits. If an active employee dies, hie designated beneficiary receives payments computed as regular re tiremeat benefits. If a member's employment is terminated before he becomes eligible Eor any other benefits under this plan, he shall receive a refund of his member contributions. If a member terminates his employment either voluntarily or by lawful discharge after the completion of at least five years of continuous service, but before becoming eligible for retirement under this plan he shall be entitled to a deferred vested benefit. The deferred vested benefit shall be based on monthly earnings and continuous service as of the termination data. _ 2g _ ill~C)2S~ 1 1 1 e 1 1 1 1 1 1 CITY OF ATLANTIC BSACB, FLORIDA NOTBS TO PINANCIAL STATBIOSNT6 The General Bmployees Pension Plea ras established pursuant to City Ordinance adopted in 1975 by the City Commission. The Plan is also governed by certain provisions of Chapter 132, Florida Statutes. The Plan is administered by the Board of Trustees for the Plan. it mn Current membership in the Police and Pirefighters Retirement System is comprised of the following: Group September 30, 1988 Retirees and beneficiaries currently receiving benefits 3 Vested terminated employees 4 Active employees: Pully-vested 28 Noa-vested 2 Total ~,Z Employees a[taining the age of 60 and completing five or more continuous years of service, are entitled to a monthly benefit at 2.4i of their average monthly earnings as defined in the plan for each yer of Continuous service. Active employees who become disabled receive benefits computed as regular retirement benefits. If an active employee dies, his designated beneficiary receives payments computed as regular retirement benefits. If a member's employment is terminated before be become eligible for nay other benefits under this plan, he shall receive a refund of his member contribution. If a member terminates hie employment either voluntarily or by lawful discharge after the completion of at least five years of continuous service, but before becoming eligible for retirement under this plan he shall be entitled to a deferred vested benefit. The deferred vested benefit shall be based on monthly earnings and continuous service as of the termination date. Tha Police sad Firefighters Peaaioa Plan wan established pureuaat [o City Ordinance adopted in 1975 by the City Commission. The Plan is also governed by certain provisions of Chapters 175 sad 185, Plorida Statutes. The Plm is admtnis tared by the Board of Trustees for the Plan. 29 _ !i U ;i 21.1. CITY OF ATLANTIC HeACe, FLORIDA NOT65 TO FINANCIAL STAT8M8NTS SC Y OP SIGNIPICA_ ACCOONTING POGICIea AND PLAN ASSBT NATTERS: Investments and Investment Income: Investments for the plans are initially recorded on the trade date. Investments are valued at fair market value. Market values of investments are valued at the last reported sales price oa the last business day of the year from published sources. Investment policies are determined by the Hoard of Trustees sad are implemented by investment advisors. earnings on investments represent realized gains and losses and the effects of adjusting the investment portfolio to fair market value at fiscal year end. Investments as of September 30, 1907 are as follows: All Plans Corporate Equity Pund Corporate Fired Income Pund Corporate Inte[-Fired Income Pund Short-term Treasury Portfolio 1 1 Cost P Ma ket Val , ~~ 1987 S 547,351 S 496,029 294,916 302,110 795,288 872,697 19.781 14.781 Total Related Party Transactions: There are ao related party transactions recorded for any of the Plans. FUNDING STATUS AND PROGR855 The amount shown below as the "peaaioa benefit obligation'' is a standardized disclosure measure of the present value of pension beaef its, adjusted for the effects of projected salary increases, estimated to be payable in the future es a result of employee service to date. This measure is the actuarial determined preaeat value uaiag the credited projected benafita method and is intended to (i) help users aeaesa the plan's funding status on a going-concern basis, (ii) assess progress being made in accumulating sufficient assets to pay benafita when due, sad (iii) allow for comparisons among public employee retirement plane. Tha measure is independent of the actuarial funding method used to determine contributions to the plan. - 30 - 1 1 1 1 CITY OP ATLANTIC BBACB, FLORIDA ' NOTBS TO FINANCIAL STATHIfSNl'S SEPTRt~RR 30. 1088 1'he pension benefit obligation ran determined as part of as actuarial ' valuation of the plan sa of September 30, 1987. Significant actuarial assumptions used in determining the pension benefit obligation include (a) a rate of return on the iaveatment of present and future aseeta of 8~ per year ' compounded annually, (b) projected salary increases of 6~ per pear compounded amually, attributable to inflation, (e) additional projected salary increases ranging from 0.0! to 3.0\ per year, depending on age, attributable to seniority/merit; sad (d) the assumption that benefits will ' not increase after retirement. At September 30, 1987, the unfunded pension benefit obligations are as ' follows: General Police Aire ' Pension Benefit Obligation: Retirees anfl benefieiariea currently receiving benefits E 384,235 S 57,134 S 72,158 ' Terminated employees not yet receiving Denefita 99,616 59,333 28,988 Current employees: Accweulated employee contributions includi¢q allocated investment income none 2,996 1,297 Employer financed - Vested 536,295 259,275 63,420 ' Employer financed - Non-vented 69,128 55,346 64,065 Total Pension eenefit Obligation 1,039,224 434,084 229,928 ' Net assets available for benefits, (at market) 800.977 599, I03 294.706 ' Unfunded Pension Benefit Obligation 5 238.297 E(165,019) 5(64.778) During the year ended September 30, 1987 the plena e:parienced a net change of 5362,702 in the peaaioa benefit obligation. Of this change, SI64,061 vas attributable to changes in benefit proviaiens. ' CONTRIBUTIONS RSOUIRRD AND CONTRIB ITrnw IfADR ALL P Ali The City's funding policy provides for periodic employer contributions at 1 actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding meth¢d. Unfunded actuarial accrued liabilities are being amortized as a level percent of payroll over a period of 24 years. - 31 - ~l U;)~1,3 CITY OF ATLANTIC BEACR, FLORIDA NOTE6 TO FINANCIAL STAT@.ffiNTS EEPTBMBER 30. 1988 During the year ended September 30, 1987 contributions totaling 5124,100 (5119,895 employer and 54,205 employee} rare made in accordance with contribution requirements deterninad by an actuarial valuation of the plan as of September 30, 1985. Significant actuarial assumptions used to compute contribution requirements were the same as those used to compute the standardized measure of the pension benefit obligation. ~STORICAL TREND INFORMATION ALL PLAN Net assets as a percentage of pension benefit obligation Unfunded pension benefit obligation as a percentage of annual covered payroll Contributions expressed as a percentage of amual covered payroll: General Police Pi re e 1985 1996 1987 ' 309.91 313.3\ 99.5\ ' 0.0 0.0 .6 9.31 9.53 9.17 11.61 14.39 9.15 ' 11.85 15.06 7.72 Ten year historical trend information designed [o provide information about the City's progress made in accumulating sufficient exacta to pay benefits when due is presented is the statistical section of this report 6. DEPERBED COMPENSATION PLAN She City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City Employees, penni to Chem to defer a portton of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or uaforaeeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased rith those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property sad rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participanta• rights under the plan are equal to those of general creditors of the City in as amount equal to the fair market value of the deferred account for each participant. It is the opinion of the City legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets Co satisfy the claims of general creditors in the Future. -32 - 1 CITY OP ATLABTIC BEACe, FLORIDA NOTES TO FIBASCIAL STATR4~ITS S EpTENBEB 30. 1988 7, SEGl1ENT INFO7IMATIOB POH eNTBBPBZSE FUNDS The City has eetebliahed aepsrate entetpriae Punch to account for refer, sexer and sanitation sarvicea. Segaseat information for the City•a Enterprise Punda for the year ended September 30, 1988 is as follorei Total Buccaneer District Sanitation Enterprise Hater Pond Serer FuM Natar fuM Saner imM FuM funds Operating revenues f 313,189 f 850,226 f 267,320 S 619,54E f 442,923 12.493,206 Oevreciati on 76,627 194,246 44,440 97,823 30.515 443,651 Operating intone (loss) (15.040) (35,140) 83,448 333,263 55,655 422,186 Non-operating incace (expense) 88,321 255,205 (22,080) 86,%5 15,01! 423,125 Operating transfers in (out) (19,256) (145,842) 7,085 (82,768) (68,7%) (309,571) Net intone (loss) 51,025 71,223 68,453 337,460 1,879 536,040 Net property, plant and e9ui psmnt 1,423,575 5,746,068 1,346,215 3,049,819 168,605 11,734,282 xet wrking cavital 366,281 838,619 74,959 340,137 B7,%9 1,708,258 Long-tem debt 78.625 1,2%,000 816,448 1,670,652 3,7%,725 Totai e9ui tY 1,915.294 6,162,442 813,187 2,566,417 256,564 11,713,901 Total assets 2,102.280 7,613,043 1,731,437 4,246,797 343,859 76,037,416 e. INTEBFUND TSANSACTIONS BECONCILI ATION A sunmiary of interfund tranafera during the fiscal year ended Septembe r 30, 1988, is as folloras Spacial Capital Debt crust 8 n r Berenua pralx is jLLViee Enterorise Auncv Tetal Transfer front Enterpri xa {309,571 f35,000 f3H,571 General (10,881 5156.110 (134,056 (1,070 302,120 Special Revenue 2b7.451 261"451 Total 1309.571 ~ Ig17. u1 S13A.056 ~ 31.070 S90B.142 The inter7und receivable/payable at Septenber 30, 1988, vas between the General FmM arM the Miscellaneous Grants special revenue fuM. -33- 0~ii715 CITY OF ATLANTIC BEACB, PIARIDA NOTES TO FINANCIAL SSATHlOD1TS SEPTBNHBN 30. 1988 9. JOINT VENTUES In 1985, pursuant to m iatarlocal agreement euthorized by Ploridn 6tatutea Section 163.01, the Citp joined rith the City of JackaonVllle Beech end the City of Neptune Beach to construct sad operate effluent outfall linen and diapoaal Eacilitiee, together rich ell the lands, right-of-rays, eaasmente, sad other entitlements necessary for the construction and use thereof. The construction of the outfall linen and disposal facilities rare funded by the municipalities in the Eolloring proportions: Atlantic Beach 33,05 Jacksonville Beach 55.78 Neptune Beach 11.16\ Total 300_OO< Each City has recorded its share of the project in its orn financial statements. The Citp recorded its portion of the joint venture (approximately 5290,000) in the property accounts of the City's Sever Pund. The City also records appro:imatelp 5325,000 of additional property purchased with grant proceeds from the Florida Department of Bnwiromental Eequlation Wince the groat Lor the outfall liana ran awarded to the Citp of Atlantic 8eaeh. Therefore, the total value of the joint venture oa the City's books is approzimately 5615,000. The project ran completed in 1986 and depreciation (using the straight-line method over 25 yearn) Degan in 1987. The City of Atlantic Beech provides all accounting and purchasing services for the joint venture. 8epair and mintenance of tLe outfall lines and disposal of the facilities rill be shared by the participetinq municipalities in the percentages noted above. No repair and maintenance ezpeaeea related to the joint venture rare incurred is 1988. 10. SUBSEQUENT EVENTS Oa January 1, 1989 the Citp borrowed 13,560,000 from the Citp of Gulf Breeze to finance improvements to Section H property. The City has pledged reweauea from Gas sad Utility ta:ea foz repayaeat of this note. fiU5?.16 - 3' - 1 1 1 1 t 1 SSPOETS ON FEDERAL ANO STATE FINANCIAL ASSISTANCB -35 - 7bia page intentionally left blank. -36- 1 ri L D 1 t 1 Deloitte Haskins+Sells Cenilietl Public Accountams Suite 1240 Z00 West Foisylh Street Jacksonville. Florida 32202-4371 19001 354-8333 ITT Tele*: 4995642 INDEPENDENT AUDITO¢S' ¢EPO¢T ON SUPPLEIt¢NTAL SCIieDULE OP Y¢D¢BAL AND STATE FINANCIAL ASSISTANCE Honorable Mayor and Members of the CS[y Commission, City of Atlantic Heach, Florida: We have audited the general purpose financial statements of the City of Atlantic Heach, Florida, for the year ended September 30, 1988, and have issued our report thereon dated January 16, 1989. These fiaacial statements and supplemental schedule discussed belor are the responsibility of the City's management. Our responsibility is to esQress an opinion on these financial statements based on our audit. We conducted our audit in accordance rith generally accepted auditing standards and the standards for financial audits contained in the Standards for Audit of Governmental Organizations, Pragrama, Activities. and Punetions, issued by the U.S. General Accounting Office. Those standards required that re plan and perform the audit to obtain reasonable assurance about rhether the financial statements are free of material misstatement. M audit includes ezaminiag, oa a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant eatimatas made by management, en wall as eveluting the overall financial statement presentation. We believe that our audit provided a reasonable basis for our opinion. Our audit was made Eor the purpose of forming m opinion oa the general purpose financial atatementn taken as a rhole. The supplemental Schedule of Federal and State Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial ata[emeats. The 1aEOrmation in such schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial atatementn and, in our opinion, is fairly atatad in all material respects in relation to the general purpose financial statements [ekes an a rhole. DELOITTE NASEINS 6 SELLS ' January 16, 1988 ' -3T - nn Tbi9 page inteationallp left blank. ' -38 - w r 1 ' Tbia page intentionally left blank. 1 -39- ' OOsa3.t CITY OF ATLANTIC BEACH, FLORIDA SUPPLEMENTAL SC6DUL6 OF FEDERAL AND STATE FINANCIAL ASSI STANCE FOR TAE FISCAL YEAR ENDBD SBPTEMBER an 1 g , BEGINNING , FEDERAL PROGRAM BALANCE AT GRANT AGENCY/GRANT TITLE CPDA AWARD OCTOBER 1, GRANT ID NO /GRANT PBRIOD NUMBER AMOUNT 1987 ' PEDEBAL DIRECT AS SISTAN E Eavi ronme¢tal Protect'o Aalnry ' Wastewater Treatme¢t Construction ID IC120747-030 Period endi ¢gi 2/28 66.418 E1.25a_9a0 tea e!! , TOTAL FEDERAL DIRECT ASSISTANCE STATE OP PLO@IDA ASSISTAN a Florida Deuartmegt of Community AfEaira Local Govermme¢t CompreAeaaive Planning Aaeistance ID /EB-LP-OB-04-I6-02-154 Pariod Eadiag: 9/68 TOTAL STATE OP FLORIDA ASSISTANCE N/A S 17,944 £__ SE6 NOTES TO SCHEDULB OP IEDEBAL AND STATE YINANCIAL ASSISTANCE (~~5?_22 - 40 - 1 1 1 1 1 1 1 eNDINc fl1ND REVENUE RecocNlzeD eALAxce Ar FEDERAL/ CITY INTEREST TOTAL SEPTEMBER 30, STATE MATCHING INCOME REVENVE EXPENDITURES 1988 S - S 230.487 S - S 230.487 S 254.975 S S 18.480 S 10.884 S - S 29.364 S 29.364 S - 41 - ~)(iJ7~.3 otr,,2?,4 Shia page intentionally left blurt. , _,Z _ r i ~ Deloitte Haskins-Sells Certified Public Accountants Suite 1240 ' 200 West Forsyth Street Jacksonville. Florida 32202-4371 (9041359-8333 ITT Telex: 4995842 ' INDEPENDBNT AUDITORS' REPORT ON COMPLIANCE KITH LAMS AND REGULATIONS THAT MAY HAVE A MATERIAL BPPECT ON THB GENBRAL PURPOSE FINANCIAL STATEMENTS ' Honorable Mayoz sad Members of the City Commission, City of Atlantic Beach, Plorida: We have audited the general purpose financial atatenenta of the City of Atlantic Beach, Plorida, (the "City") for the year ended September 30, 1988, and Gave issued our report thereon dated January 16, 1989. Our audit wan made in accordance with generally accepted auditing staaderda sad the standards of financial and compliance audits contained 3n the Stands d f r A d't f G Vet t 1 O[ga_1 ; P qra sad Punctiona, iaaued by the U.S. General Accounting Office, and accordingly, included aueD teats of Che eecountiag records and such other ' auditing procedures as ra considered necessary is the circumstances. The management of the City of Atlantic Beach is responsible Eor the ' City's compliance with lave and zegulatioaa. In correction with our ezamiantioa referred to above, we aeleeted and tented traasactiona sad records to determine the City's compliance with laws sad regulations ' noncompliance with which Could have a material effect oa We general purpose financial statements of the City. The reaulta of our testa indicate that for We items tested, the City of Atlantic Beach, Plorida, complied with those provisions of lava sad regulations noncompliance with which could have a material effect oa the general purpose financial atateamata. Nothing came to our attention that caused ua to believn that fox the items not tested the City of Atlantic Beach, Plorida, wan not in compliance with lave or raqulatioae noncompliance with which could have a material effect oa the City'e general purpvae fi/a: anviel atatnmaate. -e.Xrl.~P ~~ovY.~ r ! ~~ 1 DELOITTE HASEINS S SELLS January 16, 1989 - 43 ' (l V .i ._'l7 \~~~al l.n (1 This pegs intentionally left blank. _ ~* 1 I I ~ Deloitte Haskins-Sells Cenilleo Public Accoumams Suite 1240 200 Wesi Forsyth Street ' Jacksonville. Floritla 32202-4371 )904) 354-&333 ITT Telex: 4995642 INDEPENDENT AUDITORS' REPORT ON COMPLIANCB NITR LAWS AND ' RE TI N RELATED T N R YINAN IAL I TAN E PR R ' Honorable Mayor and Members of the City Commission, City of Atlantic Beach, Plorida: Ne have audited the general purpose financial statements of the City of ' Atlantic Beach, Plorida, (the "City") for the year ended September 30, 1988, and have issued our report thereon dated January 16, 1989. Our audit was made in accordance rith generally accepted auditing standards; ' [he standards for financial and compliance audits contained is the Standards Eor Audit of Governmental Organizations. Programs. Activities. and Punctions, issued by the U.S. General Accounting OEfice; the Siaqle Audit Act of 1984; and the provisioaa of OMB Circular A-128, Audits of ' State and Local Governments, and accordingly, included such testa of the accomtinq records and such other auditing procedures as we considered necessary is the circumstances. ' The management Of the City is responsible for the City's complimce rith Lars and regulations. In correction rich the ezamiaatioa referred to ' above, re selected and tested transactions and records from nomnajor federal sad state financial assistance programs to determine the City's compliance rith lava and regulations noncompliance rith rhich re believe could have a material effect on the alloxability of program ezpeaditurea. ' The reaulta of our teats indicate that for the transactioaa and records reared the City complied rith the lava and regulations referred to ' above. Our tenting vas reore limited than rould De neceaeary to esprean an opinion oa rhether the City administered Chose programn in compliance in all material renpecta rith those lave sad regulations noncompliance with rhich re believe could hove a material effect on the allorability ' of program expenditures; hoverer, with respect to the transactions sad records that were not tested by ua, nothing came to our attention to indicants that the Ciy had violated lave and regulations. ' DELOITTE BASEINS 6 SELLS January 16, 1989 J -45 - (iti;il_;?7 i 1 ~. .,_ TLia pegs intentionally left blank. , -46- ~ Deloitte Haskins--Sells __ tern lied Pu bllc Accou manta Sude 1240 200 Wesl Forspn Sveel ' Jacksonville. Florida 32202-4371 X9041 3548333 ITT Tele+' 4995642 I NDBPBNDENT AUDITORS' REP08T ON INI'68NAL ACCOUNTING CONTROLS ' BASED SOLELY ON A STUDY AND EVALUATION MADE AS PART OP TAE AUDIT P THE 6 R P P E PIN AL ' Honorable Mayor and Members of the City Commiaaion, City of Atlantic Beach, Florida ' Ne have audited the general purpose financial atatementa of the Citp of Atlantic Beach, Florida, (the "City") for the year ended September ' 30, 1988, sad have issued our report thereon dated January 16, 1989. As part of our audit, we made a study and evaluation of the ayatem of internal accounting control of the City to the a:teat ve considered ' necessary to evaluate the ayatem as required by generally accepted auditing standards and the stmdards for financial compliance audits contained in the U.S. General Accounting Office Standards for Audit of Governmental Oraanizatioaa. Programs. Activities. and Functions. Por ' the purpose of this report, re have classified the significant internal accounting controls in the folloring categories: cash receipts and disbursements, investments, receivables, budgets, fined ' assets, payroll, purchasing, greats, debt administration sad general ledger. Our study included all of the control categories listed above. The purpose of our study sad evaluation wan to determine the ' nature, timing, and errant of the auditing procedures necessary for ezpressing as opinion on the City's financial a[atements. Our study and evaluation was more limited than rould be necessary to azpreaa an opinion oa the system of internal accountiaq control taken ae a whole ' or on any of the categories of controls identified above. The management of the City of Atlantic Beach, Plorida, is reapoaaible ' for establishing sad maintaialag a ayatem of internal accounting control. In fulfilling this roapoaeiblilty, eetimatea and judgments by management are required to aaeesa the ezpected Denefita and related costa of control procedursa. The objectives of a ayatem are to ' provide management with reaaoaeDle, but not absolute, aaauraace that assets are safeguarded against loan from unauthorized use or di apoaition, and that transactioaa are azecuted in accordance with ' management's authorization and recorded properly to permit the preparation of financial atatementa in accordance with generally accepted accounting principles. Because of inherent limitatioaa is soy ayatem of internal accounting control, errors or irregularities ' may nevertheleaa occur sad not be detected. Also, projection of nay evaluaton of Che ayatem to future periods is aubjact to the risk that procedursa may become inadequate because of changes in conditions or ' that the degree of compliance with the procedures may deteriorate. 1 _47 _ l This page intaationellp left blmk. ' S -48- ~)~J7. 1 1 e Our study sad evaluntioa mods for the limited purpose deacrihed in the first paragraph would not naceaearilp disclose all material veatneeaea in the system. Accordingly, ve do not eaprese an opinion oa the aya[em of internal accounting control of the Citp of Atlantic Beach, Florida, taken as a thole or on enp of the categorise of controls identified in the first paragraph. Hoverer, our study and evaluation diacloaed ao condition that we believe to be a aa[erial weakness. This report 3a intended solely Eor the use of the Citp of A[laatic Beach, Florida, sad the environmental Protection Ageacp (ths cognisant audit agency) and should not be used for any other purpose. This restriction is not intended to limit tae distribution of thla report which, upon acceptmce by the City Commisaioaers, is a matter of public record. O a.~-.~4-re Ian-.~. '. S~PlI~ DBLOITTE BASFINB 6 SBLLS January 16, 1989 -49 - QG5731. TDia page inteatiomllp left Dlmk. 1 t -50- ' ~ Deloaitte Haskins-Sells Certi tied Public Accou nlanis Suite 7240 200 West Forsyth Street Jacksonville. Florida 32202-4371 (904354-8333 ITT Telex: 4995642 1 INDEPEND&NT AUDITORS' REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) USED IN ADMINISTEBING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Nonorable Mayor and Members of the City Commiaaion, City of Atlantic Beach, Florida: Me have audited the general purpose Financial statemeata of the City of Atlantic Beach, Florida, (the "City") fo[ Che year ended September 30, 1958, and have issued our report thereon dated January 16, 1989. Aa part of our audit, we made a study end evaluation of fire internal control ayatems, including the applicable internal administrative controls, used is admiaia[erinq federal financial aeaiatmca programs to the eateat we considered neceaaary to evaluate the ayatems as required by generally accepted auditing ataadarda, the atandarda for financial and compliance audits contained in the Standards for Audit f G mtal 0 ~i do a Pr A f' iti d P issued by the U.S. General Aceomtiaq Office, the Single Audit Act'oE 1984, and the provisions of OMB Circular A-128, Audits of State and Local Goverrvnentn. Por the purpose of thin report, re have classified the significant internal accomtiaq sad administrative controls used in administering federal financial aaaiatance programs in the following Categarieai Accomting Coatroln: Cash recaipta and diaburaements, iaveatmenta, receivables, budgets, fixed aaseta, payroll, purchasing, grmta, debt administration, and general ledger. Administrative Coa[roln: General Requiremeata - Political activity, Davin-Bacon Act, Civil eights, cash management, relocation aaaiatance and Paderal financial reports. Specific Requirements - Types of aervicea, eligibility, matching level of effort, repotting, special requirements (the City has no nub-recipieata or indirect coat allocation sye tam). - 51 - /L•:1~J~ Thin page intentionally left blink. ' 1 G05?',~4 - sa The management of the City of Atlantic Beach, Florida, is responsible for estaDliahinq and maintaining internal control ayatema used in admiaiatariag federal fiamciel aaaiatance programs. Ia fulfilling that reaponaibility, estimates sad judgments by management are required to aaseae the ezpected ' benefits and related coats of control procedures. The objectives of internal control aystema used So administering federal financial assistance programs are to provide management with reasonable, but ao[ absolute, assurance that, with respect to federal financial assistance programs, resource use is coasiateat rith laxs, regulations, sad policies; resources are safeguarded against waste, loss, and miauae; and reliable data era obtained, maintained, and fairly disclosed in reports. Because of iMerent limitations in any system of internal accounting and administrative controls used is administering federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the rink that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study included all of the applicable control categories listed ' above. During the year ended September 30, 1988, the City had ao aonmajor federal financial assistance programs and ezpeaded 100 of its total federal financial assistance under its one nonmajor federal financial assistance program. Nitta respect to internal control ayatema used in ' administering this nonmajor federal Eiaanefal aaaiatance program, our study and evaluation included cone idering the tppea of errors and irregularities that could occur, determining the internal control procedures that should ' prevent or detect such errors and irregularities, determining whether the necessary procedures ace prescribed and are being fo110xed satisfactorily. and evaluating nay veakaeaaea. ' Our study and evaluatio¢ van more limited than would be necessary to espreae m opinion on the internal control ayatema used is edminiaterinq the federal financial eaeiataace programs of the City of Atlantic Beach, t Plorida. Accordingly, ve do not enpreaa an opinion on the internal control aystema used in adminiater3ag the federal financial assistance pro9rama of the City of Atlantic Beecb, Plorida. Aovever, our study and evaluation end our ezamination disclosed ao condition that we believe to be a material reakaess in relation to a federal financial asaintanca program of the City of Atlantic Beach, ' Plorida. Thin report is intended solely for the use of the City of Atlantic Heach, Plorida, and the Enviromneatal Protection Ageaey (the cognS east audit agency), and should not be used for nay other purpose. This restriction is not intended to limit the diatributioa of Chia report, which, upon acceptance by the City Commieaionera of Atlantic Heach, Plorida, is e matter of public record. DBLOITTE NASEINH 6 SELLS ' January 16, 1989 53 ~i it .; ~,; ;) J iaie page iateatioasllp lef! blank. ' _ -5~- ~~:T~.3 1 1