Audit Report - 1987-19881
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CITY OF
r~tlaKtic ~eaek - ~latida
ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 1988
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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;
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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
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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)
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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
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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.
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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
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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
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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
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S 5.614 1.685.197
31.]64.900 1.674.959
S1.fi85.197
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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, $eDteMer 30,
7988 f 792.353 al x6'+.192
See notes to financial statements.
28,875
7,437
7,442
441
4,6%
48 696 74.650 32.365 42.285
171.348 31A.100 342.133 38.033
29.400 10,884 (18,516)
2.573 (300.000) 1 4 1) 38.549
-2.;ili LZZQ.444) 5254.5?) ~l
173.921 43,500 91,566 48,066
396.978 32.2.342 322.342
L2-.93Y 3 43_soe 33]3358 5270.458
40,750 32,365 8,385
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33,900 33,900 '
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Totals
Oebt Service land 4oi tal PreL cts Fund ( Merorandun Onlv)
Variance Variants Variance
favorable Favorable Favorable
Bud4et Actual {Unfavorable) Bud4et Actual (Unfavorable ) Budeat Aetusl (Unfavorable)
560,938 5 62,984 5 2.046 51,092,284 51,161,956 5 72,672
508.995 519.799 10,804
911,588 899,512 (12,076)
14,000 16,510 2,510
3.100 4,620 1,520
88.000 96,591 8,591
1,000 2,577 1,577 76,000 99,442 23,442
f-jjjj 9 5 z7.zz4 24.327 56.111 31.784
61.938 _§~fZl 3.623 27.22 0 27.224 2.718.294 _2.857.541 139.247
728,985 891,905 37,060
1,251,852 1,244,215 J,437
408.881 401,439 7,442
41,339 40,895 444
142,388 703,788 38,598
150,378 139,997 10,381 150,378 139.997 10,381
58,173 54,816 3,357 SB,173 54,818 3,357
f 807.635 807.412 223 807.835 807.412 223
208.551 1 a 1 13.738 807.835 807.412 223 3.589.409 3.484.487 104.942
14 7 ) (129.252) 17.381 (807.835) f780. ie8) 27.M7 (871.115) (628.928) 244.189
407,211 407,211 407,211 407,211
136,613 134,056 (2,557) 311,347 417,561 106,214 786,931 872,072 85,141
(604.693) (563.571) 41.122
i 1 1;d.056 (2.557) 718.558 d 7 106.214 589.449 715.712 126.263
(10,000) 4,804 14,801 (89,077) 44,584 133.661 (281,666) 88,788 370,452
23.874 23.861 (13) (168.445) 8.387 175.332 875.371 1.870.000 794.829
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CITY OF ATLANTIC BEACH, (LORIM
COMBINED STATEMENT OF pEYENUES, EX PENSE$ 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.
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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
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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 -
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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.
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' 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 -
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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-
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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 -
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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 -
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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 -
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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 -
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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
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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 _
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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-
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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
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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.
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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 -
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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.
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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.
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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+-
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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.
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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.
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' 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 _
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Thie page iateatioaallp left Dleak. ~ ,
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-38-
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' 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
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- 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
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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
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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
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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
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1
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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
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f
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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_
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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
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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
$ee nOtBS t0 fi0a0tidl statenents.
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STATISTICAL SSCTIOA
' Steti aticel schedules differ Eros financial ststemeata baceuae
they usually cover more than one fiscal pear and nay present
aoaaccouatiaq data.
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nn of aTUxrlc eEacn
PENSION REVENGES BY SOURCE aN0 E1lPEN5E5 HY TYPE
PENSION REVENUES:
Contributions:
MeaLer
city
State - Police
Slate -firefighters
Invesbent interest and dividends
Gain or (loss)
Correction
Total Revenues
PENSION IXPFN0ITURES:
&nafi is paid
adeinistrative aspensss
Total 6peMi tuns
1988
Asaunt P r n ~ ~ 7~@r~ ~ ~ ~~ ~@3
f lz,3z7 +.Ir f +.zos f - f - f - f - f - f - f - f -
126,740 49.9 76,884 79,518 61,336 71,688 63,939 91,086 101,123 69,539 74,237
35,140 13.7 32,614 25.246 21,217 18,631 15.123 12,102 10,537 10,735 9,275
12,598 •.B 10,397 9,417 8,204 16,856 5,246 1,670 4,188 3,876 3,162
8,197 3.2 104,619 114,340 119,272 103,048 91,719 89,997 66,131 46,184 28,434
60,617 23.7 - - (34,526) - - _ _ _ _
_ _ ~ _ _ _ 3.786
~".~ l~ SiiBd13 SZ29.i21 SLYi.~i ~.~ 5176.027 f1g7 au ~,.~ l13l.124 s„5.,oe
f 62,840 100% f 53,796 f 50,792 (49,368 f 40,341 330.694 f 14,980 f 10,079 f 9,330 f 9.331
--- 2.040 ___2.8112
S 62"940 IQOE f 53.796 i 50.792 L49.349 i 40.341 I~Y.B$! S 17.02n f tn.079 3 9.330 s ,1.033
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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
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EEPOETS ON PEDENAL AND
STATE PINANCIAL ASSISTANCE
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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
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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
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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
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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
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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
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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.
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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
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Haskins--Sells
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Ceruhed Public Attoumains
Sure 1240
200 West Forsyth Street
Jacksonville. Florida 32202-4371
~904~ 354-8333
ITT Telex: 4995642
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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
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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
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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
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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
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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
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REPORT OH IHTERHAI. COHTROLS AHO COMPLIAHCE
WITH LAWS AHU REGULATIONS
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00531.7
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~ 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
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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.
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e
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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
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,^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.
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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.
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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
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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.
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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-
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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.
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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
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141LS PAGE INfEITl'IGNAILY
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l)li:).~~~~ -92-
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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
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e
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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
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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
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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
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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
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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
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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-
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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-
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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.
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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'%~
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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_
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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
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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
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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
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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
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~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).
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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.
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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).
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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.
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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).
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bas various transactions
local ordinances and
reflected as operating
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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.
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' 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.
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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
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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
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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
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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).
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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SSPOETS ON FEDERAL ANO
STATE FINANCIAL ASSISTANCB
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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
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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 -
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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
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~ 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
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~ 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
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~ 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.
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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
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~ 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).
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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
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