Audit Report - 1983-1984
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CITY OF ATLANTIC BEACH. FLORIDA
i ANNUAL FINANCIAL REPORT
(WITH SUPPLEMENTARY INFORMATION)
i
i SEPTEMBER 30. 1984
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i al JUST
i ~'~-¢sss
' CITY OF ATLANTIC BEACH, FLORIDA
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30
1984
,
TABLE OF CONTENTS
Pages
Report of Independent Certified
Public Accountants 3
General Purpose Financial Statements
' Combined Balance Sheet - All Fund
Types end Account Groups 4-5
' Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund
Types and Expendable Trust Funds 6
i Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget end Actual (GAAP
Budgetary Basis) - General, Capital Projects,
' Special Revenue and Debt Service Fund Types 7-6
~' Combined Statement of Revenues, Expenses and
Changes in Retained Earnings/Fund Balance - All
i Proprietary Fund Types and Pension Trust Fund 9
Combined Statement of Changes in Financial
Position - All Proprietary Fund Types and
Pension Trust Fund 10
Notes to Financial Statements 11-18
' Supplementary Information
General Fund
' Statement of Expenditures - Budget end Actual 19
' eoos57
PaReg
Proprietary Fund Types - Enterprise Funds
1 Combining Balance Sheet 20
Combining Statement o£ Revenues, Expenses
end Changes in Retained Earnings 21
t Combining Statement of Changes in
Financial Position 22
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).
rice __
Tterhouse
-~;
Honorable City Commission
City of Atlantic Beach, Florida
zs~ n sc„A~
JACKSOt~AM1lE. FLIXVOA 322Y2
~a~~
December 14, 1984
We have examined the combined financial statements of the
City of Atlantic Beach, Florida, as of and for the year ended
September 30, 1984, as listed in the table o£ contents. Our
examination wee made in accordance with generally accepted
auditing standards and accordingly included such testa of the
accounting records end such other auditing procedures as we
considered necessary in the circumatences.
In our opinion, the combined financial atetementa referred
to above present fairly the financial position of the City of
Atlantic Beach, Florida, et September 30, 1984, and the results
of its operations and the changes in financial position of its
proprietary fund types and pension trust fund for the year then
ended, in conformity with generally accepted accounting
princip lea which have been applied on a basis consistent with
that of the preceding year.
i Our examination was made for the purpose of forming an
opinion on the combined financial atatemente taken as a whole.
The combining and individual fund financial atatemente listed in
i the table of contents are presented for purposes of additional
analysis and ere not a required part of the combined financial
atetementa of the City of Atlantic Beach, Florida. The
i information has been subjected to Che auditing procedures applied
in the examination of the combined financial statements and, in
our opinion, is fairly stated in all material respects in
relation to the combined financial statements taken ea a whole.
i Certified Public Accountants
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~~~.~
001NId1 eAlANlx s~
AIL nrao TYPE AND 9AAfa (EARS
s~ 30. 1984
~>~,
~~ wnd
Ooenamtal Pld TyPe e and TvPe. TrPee Amour Qaae
>4 Gaerel Cereral joule
Spaclel Debt Cepltel sod Pen1m Im8-Tan Plred
r~ Ont
~
Aeseu faecal Rea®e Servlm Pm acts rlae 'RVat Debt Aeaeb ~ _
fed. end Lrveetcte $/08,973 $ 421 $18,306 $13,125 $ 576,215 $1,223,940 $2,540,980 $1,838,893
Acoo.nte recelveble 231,676 52,614 191 284,481 276,443
Imatoriea 12,489 48,915 61,404 48,300
Oue faoa otler
gosemsate 12,157 12,157 29,518
O.e fro. Defer fiada 12,157 12,157 20,891
1u 5,000
Ptepetd eapmeri 962 641 1583 2,849
Ober eeeeu 10,355 10,355
i 8eacrfeud Saeea~ce 809,351 8119,351 620,842
Coreteuctfm 1n pcagera
r 115,917 115,917
PtoPertY. Plat sod
. equlpsat-cat 1,896,011 91,410,498 3,307,009 3,183,284
Asast ewibsbbf >n the
debt servlm find fix
gyasot of lag-ten
d
9 18,306 18,306 16,296
Aso~nt u be pcovlded
br peys~~ of Lng-
-debt
]
6
cecs 70,
94 770,694 412,704
Mnut m he prMdad
Eor peyoaK of ]ag-
ten portlm of oar
paesud ebeenree 672; 63.723 50.268
Tool assets 5959.080 s12"s,e ~~ $25.282 S3•S10.019 $1.111.131 ~ 91"410.998 $7.613.]17
7
~' See Notes u PLrrfel Sr~.s.... .
a
0
~ ~ ~ ~ ~ s ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ r ~
CIlY OP A71.1N1'[C BFi43i, nualu6
~~~~
,w, llso 3YP6 9290 6oouPrr oars
sP2TPlmin 30. 19x4
rldu<i.ry
~~ ~,d
G menxe:ntal n„a tvce e n.,d 1Yces 2voe. 6rw,rt lYaps
6peideble Cenerel Gueral ibtals
fat Debt iul
~ .d ~>m
~
b
~
reM~ Otl
finerel ~c Servlre seta @ite~ 'host pe
[ eta _
clebiuciea
Acmete peyeble e,d
sern,ad llabtlitles $ 65,886 $ 5,089 $ 93,758 $ 164,fl3 $ 184,497
Obe m other fads 12,157 12,157 30,891
Oeposita 5,000 60,164 65,164 44,457
General lovg-tee debt
pryeble $389.000 389,000 429.000
G'erenl lug-ten
ooe
u
t
d
W
ra
p
re
o
e
nx
payable 672) 67,)23 50.268
Total llebllltles 7J8B6 12.157 X089 153.922 453.723 694.777 729.109
' Pled 8autty eelences
u
Imeetea,t >n del
' fixed meet $1,410,998 1,410,998 1,274,162
PIM equity:
Canttibclar Erc~
other gwer~ta 819,846 879,846 910,483
~
u
~aecred fo
r rereesL
eed repleoe.a,te BD9,351 809,351 620,842
Ii,rexervad retained
eemLge 1,666,90D 1,666,900 1,274,000
P'ud hlencee:
Peaer~ed far payeit
of lug-ten debt $18,306 18,306 16,296
eeaerved [or I~QY 5,410 5,410 18,071
Prxrved 6or police
tr $ 28,173 28,133 23,441
fad
hlanoee 882784 431 X193 1.195.998 2.099.)96 1.638,922
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e9"10
~ helanoa X94 431 ly y 7,356,097 1.21/x131 1.410.998 6.918,340 5.776.179
Tatel lfabilt[Is
aN Gad e9"itY
helanne A955.aeo $13.578 a~1@e7~ $2i.7~L 33"510"019 ~3a2YJ.171 X152.112 91.410.998 37.613.117
See tutu m PLrcLl Btdsents.
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PJ
6erernn:
7aree
Lltreaea ed pn.fu
Federal eF,scod ceacre
Pedenl grslu
Sure ellered rnaeiee
Slice gr~1u
OCler 1eu[gorernaitel
resere
~1gea fa eelvlm
Pinn s,d forfefptu
N,nt aoet
Inre,n[ 4noee
MleoelLleoue moue
7ore1 rareoes
Pkpadl[iea:
Cicra,[:
Cererel glrue~a¢
F1Dl1c nfeq
P1Elfc lclfeu
Ibtle ad s[ueu
lncregauen~sael
servlcn
Parke id reeasecim
Oebt aecviae:
Prlnelpsl raeiran!
In[ereec N ffeul
~e
Cgful alley
]Deal erpedln¢ae
Hmese (deflrl[) of
re,auee war
mlpeldlq¢n
Ot11er fLretlg ewaree (lien):
Operecl.g [rarefero N
Operatl~g trenEen (auc)
cmr oP ell,wllc eernl, PIQIIM
0081471 9G19MM OP PE~'QUF5. DO'FH113111F5 AM
au2las ]8 E1PO e61.18oPs
61L mVtlIIlQfl'N. nPaD 1YP6 xa r7wvul®1: 'OIIbT llfi6
IIX 71e vPax 114D s2rnlmm 30. 1984
~>~
faarr~ul n.d 3ypee n.d
~ ~~~
wd 6e~a.e se...1m e.o area Ituec
g 48z,6n 564.383
381,813
$48,625
661,146
12,142
3,712
70,785
77,814
27.030
291 2,112
X916 X495
g 4,211
2,453
y
~~
1.717,141
3W.,143
737,849
267,385
20,810
13,549
80,733
1.464.469
252.672
164,383
156 ao0
8.383
01reee of ma.un eN otler
sarcee war erpaldlaaee
eM other lien 261,055
Pled 6elenw, Occa6et 1, 198] 627,139
Pled 6elrlres, Sepre~er 30, 1984 g 888.194
2,912
3brela
ok~1.1b. Oo1y)
g 547,060 $, 496.467
361,833 359,043
48,625 52,571
150,341
661,148 576,407
- 3,T43
12,142 10,103
3,712 6,337
70,785 72,226
4,211 5,022
82,670 80.668
28,030 10.617
1,640,216 1,ffis.065
344,143 291,405
740.821 636.904
125,574
267,785 282,891
20,610 14,680
13,X9 36,431
40,000 35,000
T7,,48s 26,373
241.775 486.920
GO,OOD
u,46s
161 002
X485 16y y
X916 X010 161 002
176,313
50 313)
50 313 176y313
1~b92i928 1,938,183
y 147.288 111 118
340,6% 465,955
206 313) 354 846
134,783 111,109
(1,197) 2,010 15,311 4,692
je1B ly 4,882 2441
8 421 ~~'~ S 1D.197 ~~.
Sn tbcee to PLr1cL1 8t~_ •.
281,671 (9)
673,516 673.585
g 955.u7 S 67].576
Illy aP e3lvmc DE~aI, plmt m
OOBIIFD sr41t1Q7[ OF PEVEHIEi, 170'F2111TIR6 xo
Q~ >r fIRO e6urlas - lum~r wb ,va,w. (c66P ip10LET6RY eti97s)
187071 AL, aiPiTN. PBd1tLTS, set>:lnl. 86yF7alE AtO OEIfE smvl~ Flfo 3ms
1171 TIE veWi t2a0fD SFPI}l33®t7t 30, t984
General P1nd Spec fel Peeve IOade
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PewnDle ~Veil®,oe
Fewreble
M[uel Bu a (liifewreble) Mtwl 9 t (I-iEewreDle)
Bevee:
Taxes
S 482,677
$ 458.288 $ 2b,389
LScavee eN peMte 381,833 303.400 78.433
Federal shared Raam 548,625 $53,669 $(5,044)
Stare shared mesas 661,148 .622.009 39.059
Other Interul
teases 72,142 10,000 2,142
Qrcgea for aetvlaw 3,712 3,200 512
Phee and forfei[utea
inrerent Lno•e 70,785
77,814 57,000 13,785
40,000 37,814
291
1,000
(709)
Nlacellseae reV9a! T7.030 2000 2y _
iotel teauee 1.717,141 1.495,977 221,164 y y 5 753
B~pndtnan:
C~¢rat:
Caeral 8oeea~aR
344,143
354,482 10,319
Ablic uEety 737,849 76+,,JBL 26,915
Roeda ad etcoeta 267,385 294,660 27,275
~ Intregooetnaafel
~ eervleee 20 810 21,060 1,250
Paciu aM axteatlm 13,549 14,400 851
~ Oebt service:
Principal mtresent
Wecret eM Elarel drryRe
C~pinl outlay 80,733 80.812 79
Total egetdl[utee 1,464,469 1,511,198 y
B~cne (defielt) of
meaee mar eryadttu[ee 252 612 35 22t Tb~893 y 1669 5 753)
Other f(rorcing eo,¢cea (usn):
OParat(nB trarofen 1n 164,383 164,387
OParatln8 trarofen (eut) 156 000 166 000 ly 50 313) 53 OOD) y
8.383 1 617 101000 50 713 53 ODD ~ 1681
8weu (deE1c1U of rmeeis
J. eM orlas souroea over
eapeMlturea and ueea
261,055
S (]6.838) 5297.893
(1,397)
9 1.669
sr3.o66)
C
~ Plad 6ala~aea,
Oeto6er 1, 1983 627.139 y
FLd hlarcee,
L47 Septeaber b, 1984 S 9Be.l~t $ 421
(farcfned on next psge)
Sea Notes to P4reL1 cr..®...,
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01
.Fe
CI7Y oP A71AN1'IC BFi1W. FILRIGiI
mel[tn srelvvlr aP BG7hNIBS. E70'R•0171R6 Aw
autn~ Ix f1Ei1 B6utms - elnrEr ARl Acnxl. (c6AP a>oc~rAwr eA9IS)
mflw.. c1PITAC eenlocls. seoc7A1. Bcvt7a~e A!D Btar smvlo; nEO T2P65
1lR 31e YFwa f1gD sFrmmt 30. 1984
7ou1 Por All Budgeted
CePitel Pro3ecte n.a oex 9etvloe Fud Covenea,tal I1.m TYoee
Verlerce Verlerce Verlare
PewreDle Fewreble Pewrable
Acdrl e. ((Infewre6le) Acdal 9 [ (Oufewreble) Mdrl Rd~e (Ilnfewreble)
Perau:
Teem $84,383 $64.383 $ 547,060 $ 522.671 $24,389
Loa.eu eM patella
Federal ehered teveatee
Stele abated revauea
Other L[er8wern•a,tal
rerecuee
Charges Eoz eetvlcp
Plnee rd forfe(tu~rs
Inletea[ Oo®
Mlacellaomr terms
Total terenea
Papadit~aae:
~K:
Ca.eral @.racr~t
Wbltc ufe[y
Aoeds and e[teeta
Lrtrigrrvet>.artel
Petke rd tecreatlmtac[ntlm
Os6[ sluice:
IR7nclpal retireaaa'
Interns[ and f1au1
Cap ley 161 002 179 000
ibtel expedltutu 16y 17_y000
0ooess (deficit) of
reraurs ores
eapudlturoa 161 002) 179 000
Other Ehrne4g ea¢res (ueq):
Opera4g trarefers N 176,313 179,000
Opera[4g tranfara (ae:)
1761313 17y
6meae (deficit) of [erases
aM otter aoarae ores
expad/ases aM ors
Plod 6elamr,
Octc6er 1, 1983
Nad 6elenos,
Sepa~e 30, 1984
381,833 303,400 78,433
48,625 53,669 (5,044)
661,148 622,089 39,059
12,142 10,000 2,142
3,nz 3,2(10 s1z
70,785 57,000 13,785
2,112 $ 2.112 80,217 41.000 39.21)
27,030 2,000 25.070
66495 64.383 2 112 1,832,552 1,615,029 217,523
344,143 354,482 10,779
737,&.9 764,784 26,935
267.385 294,660 27,275
20,810 22,060 1,250
13,y.9 74,400 851
40.000 60,000 60.000 40.000
24.485 250,883 226,398 T!. 485 250.883 226.398
17 998 __ _ 241,775 259,812 18.077
ly y 226.398 1,689,956 2,001,081 311,125
ly 2y010 226 500 278.510 142,596 386 052) 5281
(2,687) N0,6% 1.3.383 (2,687)
208 317 219 OOD 12.687
2 687 IY•,383 124,381 l0i
15,311 ~Q 915.311
~~
$ 20.193
2,010 (~,¢~ 9218.510
ly
~a~
(Cueluded)
9r tbtn m Financial Sbte•ata.
276,979 $ (261.669)
65D,135
9 927.114
~ ~ ~ ~ ~ ~ e ~ ~ ~ ~ ~ ~ ~ s ~ ~ ~ ~
CITY OP ATLANTIC BEACH. FLORIDA
COMBINED STATEMENT OP NEVENUES. E%PENSES AND
CHANCES IN RE7AlNE0 EARNINGS/FUND BALANCE
ALL PROPRIETARY FUND TYPES AND pFNSION TRUST POND
POR THE YEAR ENDED SEPTEMBER 30. 1984
Q
Operating revenues:
Cuetoaer chsrgea
Fiployer's con[rlbutlons
State eontrLbutlona
Other lncone
To tai operating revenues
Operating expenses:
Personal services
Contrectwl services
Supplies
Repstre end uln[enance
Neat, light end power
Depreciation
Ocher expenses
Retirement beneFib
Total operating aspentes
Openting incose
Nonoperet Lng incase:
Connection charges
Interest lncose
Total ronoperet ing ineoae
Net incase before ape sting
lnterfund [cane Eeo
Opeuttng [ransEen (out)
Net ineo~e
Add depreeta[ton on fixed seset•
acquired by shared revenws
externally raRrleted for espltal
Proprtetety Penelon
Punde Pund
Totele
Peneioo SMeeorandw Only)
Enteroriae Trues 19BT- T983
$1,083,091 $1,083,091 $ 801,612
$ 74,688 74,688 63,939
35,487 35,487 20,369
29,216 29,216 159.140
1.112,307 170,175 1,222,482 1.045.160
319,086 319,086 281,376
53,249 53,249 18,880
99,160 99,160 109,031
54,447 54,447 219,353
87,533 87,533 81,174
109,629 109,629 104,317
4,024 4,024 2,780
40,741 40,341 30.894
727,128 40.341 767.469 847,805
785,179 69.834 455.013 197.355
192,834 192,834 55,976
107.146 107,048 210.194 175.102
249.980 103.048 403,028 231.078
685.159 172,882 858.041 428,431
(134.383) (134,363) 111 108)
550,776 172,882 723,658 317,325
acquis It lone 30.638 30,638 18.880
Tnerease In retslned earnings 561,414 172,882 754,296 346,205
Retained earnings/fund balenea,
October 1, 1983 1.894,837 1,027,116 2.917,953 2,571.748
Reuined esrnings/fund 6slsnce,
Septe~ber 30, 1984 92.476.251 51.195-998 93.672.249 92.917.953
Sea Notes to YlssnelQ SteternG.
~ ~ ~ ~ . ~ ~ ~ ~ ~ ~ s ~ ~ ~ ~ ~ ~ ~
CITY OP ATLANTIC BEACH, FLORIDA
COMBINED STATEMENT OP CHANGES IN FINANCIAL POSITION
ALL PROPRIETARY FUND TYPES AND PENSION
TRUST FUND
F00. TIIE YEAR ENDED SEPTEMBER 30, 1984
Proprietary Pension
Funds Pund
To[ele
Pane Lon (Mewundua Only)
Enterprise 7ruet T9~ 487
Financial reaoureea wra provided by:
Opeza[lons:
Net incoae $550.775 $172,882 $727.657 $317,325
Iteae not rey~iring working
capital during the period:
Depreciation 109,630 109.630 104,717
Vorking capital provided by operations 660,405 172,882 83J,287 421,642
Contrlbutlons frog other governaents 67,610
Decrease Ln other assets 832 832
total sources of ror4ing eapltal 661,237 172,882 834,119 489.252
~ Plnanciel resources were used for:
Acqutalt ion of property, plant
"'
~ and equlpaent 212 440 212,440 126,347
Increue in rutrieted Sovestaanb 188.510 188,510 347,000
~ Increase in rorking capital $260.287 8172.882 $473.169 8 19.905
Analysis of Changes in Yorking Capital
Increaae (decrease) in current
assets:
Cash and inveetaente $311,721 $172,882 9490,603 $ 26,889
Accounts receivable 3,568 3,568 3,734
Inventory 18,646 18,646 30 469
Other current assets 513) 513) 1.154
Increaae Sn current assets 339.422 172,882 512,304 42,246
(Increase) decrease In current
Ifebi11t1ee:
Accounts payable end accrued
~, liabtlitlee
Cuecoa
d
i 58,424) 58,424) (11,003)
er
epoe
[a 20 711) 20 711) 11 33B)
Decrease in current llebilities 79 135) 79 135) 22 341)
Qj Increase Sn working upitQ 8260.287 $172 ,B B2 5433.169 $ 19.905
Sae Notu to PLnane Ll SCatenenq.
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CITY OF ATLANTIC BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1984
Note 1 - Summary of Significant Accounting Policies
The following is a summery of the significant accounting
principles and policies used in the preparation of these
financial statements.
A. Basis of Presentation
The City of Atlantic Beach, Florida (the "City"), a
municipality in Duval County, Florida, ie chartered by the state
of Florida ae a centralized municipal government. The City
Commission (the "Commission") is responsible for the legislative
and fiscal control of the City. A City Manager is appointed by
the Commission and La responsible for the management of the
resources of the City maintained in the City's funds and account
groups.
The accounting records of the City are organized on the
basis of funds and groups of accounts. A fund is defined ae a
fiscal and operating entity, with a self-balancing set of
accounts recording cash and other financial resources together
with all related liabilities, residual equities, or balances and
charges therein which are segregated for the purpose of carrying
on the specific activities, or attaining certain objectives Ln
accordance with special regulations, restrictions or limitations.
For reporting purposes, the various funds of the City are
classified into three basic fund types: governmental funds,
proprietary funds and fiduciary funds.
The fund types and account groups maintained by the City are
described below:
Governmental Fund Types
- The General Fund is used to account for all revenues and
expenditures applicable to the general operations of the
City.
- Special Revenue Funds are used to account for revenues
which are legally restricted for specified purposes.
- Debt Service Funds are used to account for the payment
of interest and principal on long-term debt end revenues
pledged for debt service.
- Capital Projects Funds are used to account for the
construction or acquisition of general fixed assets.
_ 11
l1A~667
Proprietary Fund Types
- Enterprise Funda are used to account for water, sewer
and sanitation services that are financed and operated
in a manner similar to private businesses where the
intent of the governing body is that the costa of
providing goods or services to the general public on a
continuing basis be financed or recovered primarily
through user charges.
Fiduciary Fund Types
- The Pena ion Trust Fund is used to account for the assets
of the pension plan. The fund is accounted for in
essentially the same manner as proprietary funds since
capital maintenance Se critical.
- The Expendable Trust Fund ie used to account for assets
held by the City as trustee. These funds are treated
like governmental funds.
Account Croups
- The General Fixed Asset Account Group is used to account
for fixed assets owned by the City which are not part of
the Enterprise Funda.
- The General Long-Term Debt Account Group is used to
account Eor the outstanding principal balances of
general long-term debt.
The columns entitled "Totals (Memorandum Only)" are included
for informational purposes only. These total columns are not
comparable to consolidated financial information as the basic
reporting entities and fund types use differing bases of
accounting. In addition, interfund eliminations have not been
made in arriving at the amounts included in these columns.
Certain prior year balances have been reclassified to be
comparable with the current year.
B. Budget Requirements
Florida atatutea require that the City establish a budgetary
system for general operations. The City budget process is based
on estimates of revenues and expenditures on a modified accrual
basis.
- 12 -
r~J~,'1s68
' C. Basis of Accounting
' All Governmental Funds and Expendable Trust Funds are
accounted for on a spending or "financial flow" measurement
focus. This means that only current assets and current
' liabilities are generally included on their balance sheets.
Their reported fund balance (net current assets) is considered a
measure of "available spendable resources." Governmental fund
e operating statements present increases (revenues and other
financial sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are
said to present a summary of sources and uses of "available
spendable resources" during a period. The Governmental and
Expendable Trust Fund Types use the modified accrual basis of
accounting. Under the modified accrual basis, revenues are
' recognized in the accounting period in which they become
available and measurable. Expend iturea, other than interest on
general long-term debt which is recorded when due, are recognized
' in the accounting period when incurred.
All Proprietary Funds and the Pension Trust Fund are
accounted for on a coat of services or "capital maintenance"
' measurement focus. This means that all assets and all
liabilities (whether current or noncurrent) associated with their
activity are included on their balance sheets. Their reported
' fund equity (net total assets) is segregated into contributed
capital and retained earnings components. Proprietary fund type
operating statements present increases (revenues) end decreases
' (expenses) Ln net total asaete. The Proprietary Fund Types and
Pension Trust Fund use the accrual basis of accounting. Under
the accrual basis, revenues are recognized in the accounting
period in whlch they are earned. Expenses are recognized in the
' accounting period when incurred. water, sewer and sanitation
services are billed in advance to customers on a quarterly cycle;
revenues are recorded when earned.
' Cash and Investments
Except where prohibited, the City commingles cash balances
' for all funds in a single investment account to maximize the
yield on its investment of surplus cash.
' The City's investments for all commingled funds consist of
certificates of deposit, treasury bills and other interest
bearing accounts. Interest is recorded when earned. The cash
and investment balance of the Expendable and Pension Trust fund
includes an investment in a New England Life Insurance investment
account, which is not commingled with other funds.
~ naosss
- 13 -
' Inventories
Inventories of the Enterprise Funds and the General Fund,
' consisting principally of materials, supplies end fuel, ere
recorded at the lower of first-in, first-out coat or market.
' Property Taxes
The assessment of all properties and the collection of all
property taxes are made through the Property Appraiser and Tex
Collector of the City of Jacksonville. General property taxes
are recorded as received in cash, which approximate taxes levied,
less discounts, for the current fiscal year. No material amount
of property taxes ie susceptible to accrual.
Property, Plant and Equipment
' General fixed assets are recorded ae expenditures in the
purchasing governmental fund and recorded at coat in the General
Fixed Asaeta Accouni Group. Infrastructure assets such as
' streets, sidewalks and street lights are not reported in the
General Fixed Asaeta Account Group.
Property, plant and equipment purchased by the Enterprise
Funds ere carried at coat „less accumulated depreciation.
Depreciation of fixed assets acquired with resources externally
restricted foz capital acquisitions is amortized against
' contributed capital in the financial statements. Maintenance end
repairs are charged [o expense as incurred. Mayor renewals and
betterments are capitalized.
' The coat and related accumulated depreciation on disposals
are removed from the accounts with gains or losses recorded on
dispositions. Depreciation is provided using the straight-line
method over the following useful lives:
Buildings 25-30 Years
' Improvements other then buildings 40-50 Years
Machinery end equipment 3-7 Yeera
' Interfund Transactions
During the course of normal operations, the City has various
transactions between funds to construct assets and comply with
' local ordinances and other legal restrictions. These
transactions are reflected ea operating transfers.
' Pe naion Trust Funds and Pension Expense
The City's investment contract with the New England Life
' Insurance Company ie valued at contract value. Contract value
represents deposits made under the contract, plus interest.
Pension expense includes normal coat plus amortization of pest
service cost over 30 years. The City funds pension coats
' accrued. ~OU67
- 14 - Q
Note 2 - Cash and Investments
The total cash and investment bal ance of the City is
compria ed of [he following items:
Petty cash on hand $ 400
Savings and money market accounts 207,486
State Board of Administration 105,499
Total cash and investments
available upon demand $ 313,385
Certificates of deposit
Leas than 30 days maturity 533,561
31-90 days maturity 561,584
91-180 days maturity 747,710
181-360 days maturity 102,892
Greater than 1 year maturity 115,771
Total certificates of deposit 2,061,518
U.S. Treasury bills and notes
Less than 30 days maturity 198,3b5
91-180 days maturity 240,858
Greater than 1 year maturity 105,735
To[el U.S. Treasury bills
and notes 544,958
New England Life investment account 430,470
Total cash and investments 3,350,331
Less: restricted inveatmenta 809,351
Total unrestricted cash and invea tmenta $2.540.980
Note 3 - Property, Plant and Equipment
Property, plant, and equipment of the Enterprise Funds at
September 30, 1984 follows:
Total
Water Sewer Sanitation Enterprise
Fund Fund Fund Funds
Land $ 65,557 $ 65,557
Buildings $ 393,718 505,685 899,403
Improvements other
than buildings 1,038,513 945,677 1,984,190
Machinery end equipment 2,733 $225,674 228,40%
Less-accumulated
depreciation (491,522) (648,891) (141,133) (1,281,546)
3 940.709 5870.761 84 4 31.896.011
~l00671
-ls-
The changes in the General Fixed Asset Account Group follow:
Improvements
other than
Land Buildings buildings Equipment
Balance at
October 1,
1983 $128,356 $275,626 $405,696 $464,484
Additions 5,700 31,549 5,665 173,308
Dispositions (79,386)
Balance at
September
30, 1984 1 4 056 07 1 411 6 5558.406
Note 4 - Lon¢-Term Debt
General long-term debt includes 1958 and 1971 General
Obligation Sewer Bonds. The proceeds from the 1958 bonds were
used for construction of a sewer system. The proceeds from the
1971 bond issue were used for extensions and improvements to the
existing sewer system. Interest rates range from 3.8% to 5.75%
per annum. General long-term debt decreased by $40,000 during
fiscal 1984, through payment of scheduled principal maturities.
The remaining maturities for this debt follow:
Due in 1958 1971
Fiscal Sewer Sewer
Year Bonds Bonds Total
1985 $20,000 $ 20,000 $ 40,000
1986 20,000 22,000 42,000
1987 20,000 25,000 45,000
1988 20,000 25,000 45,000
1989 25,000 25,000
1990 25,000 25,000
1991 30,000 30,000
1992 30,000 30,000
1993 30,000 30,000
1994 40,000 40,000
1995 37.000 37.000
580.000 S309.000
- 16 _ A(~8672
Total principal and interest payments of $64,383 ($23,800
and $40,583 for the 1958 and 1972 bond series) were made during
1984. Summary debt service requirements (principal and interest)
to maturity are as follows:
General Lona-Term Debt
1985 $ 62,323
1986 62,262
1987 63,072
1988 60,688
1989 38,302
1990-1994 195,413
1995 39>128
1 18
Note 5 - Employee Benefits
The City has a noncontributory defined benefit pension plan
covering aubstentially all employees. Total pension expense for
all funds for the year ending September 30, 1984 was $79,123.
The City's pension contribution is computed using accepted
actuarial methods and, except for the effects of plan amendments,
if any, is not expected to increase materially in the future in
relation to total payroll expense.
Accumulated plan benefits, determined as of September 30,
1983 by the City's actuary, and net assets of the plan fallow. A
7.5% rate of return was used in determining accumulated benefits.
Actuarial present value of
accumulated plan benefits:
Vested
Non-Vested
Net assets available for
plan benefits
$481,564
58,674
40 2
S1.023.000
~~~s~.~
- 17 _
1
1
t
1
1
1
1
Note 6 - Segment Information for Enterprise Funds
The City has estab lished three Enterprise Funds to account
for water, sewer and sanitation services. Segment information
for the year ended September 30, 1984 is ea fol lows:
Total
Water Sewer Sanitation Enterprise
Fund Fund Fund Fugda
Operating revenues $ 261,308 $ 634,798 $216,201 $1,112,307
Depreciation 43,052 41,745 24,832 109,629
Operating income (loss) 94,899 332,812 (42,532) 385,179
Operating transfers
in (out) (100,000) (64,383) 30,000 (134,383)
Nonoperating income 67,797 232,183 - 299,580
Net income 62,696 500,612 (12,532) 550,776
Net plant, property
and equipment 940,709 870,761 84,541 1,896,011
Net working capital 245,348 200,376 78,739 524,463
Total equity 1,314,360 1,878,457 163,280 3,356,097
-la-
~0467q
i~
~~DS`7S
II
CT1Y OF ATL4NPIC BFAQi, F[ IA
AR
' GENBRAL FiRID
STATQ~If OF 1XPf2IDIYURES -BUDGET AND ACTiWi.
1LR 1RE YEAR ESB)ED SEPfFPffifR 30, 1984
Variance
Fawrable
' Actual Budget (Unfawreble)
General government: -
Legislature:
' Personal services $ 16,987 $ 18,793 $ 1,806
Other services acd charges 240 4,700 4,460
' Total legislature 17,227 23,493 6,266
Executive:
Persaial services 40,213 40,451 238
' Other services and charges 3,673 4,203 530
Total executive 43,886 44,654 768
Financial:
Personal services
121,160
122,051
891
Other services acd charges 29,005 29,321 316
Total fir~encial 150,165 151,372 1,207
General services:
Personal services 713 714 1
Other services acd charges 132,152 134,249 2,097
Total general services 132,865 134,963 2,098
' Total gererel goverrmert
afe
P
bli
: 344,143 354,482 10,339
u
c s
ty
Personal services 631,970 658,540 26,570
Other services acd charges 105,879 106,244
64
84 365
26
5
Total public safety 737,849 7
,7 ,93
Roads and streets:
Personal services 188,830 215,310 26,480
Other services aid charges 78,555 79,350 795
Total roads end streets 267,385 294,660 27,275
' Parks end recreation:
Other services acd charges 13,549 14,400 851
Total parks and recreation 13,549 14,400 851
Intregoverrm~tel services:
Personal services 18,939 20,185 1,246
Other services end charges 1,871 1,875 4
Total intragovernmental services 20,810 22,060 1,250
i Capital outlay 80,733 80,812 79
Total exprsdign-ea 51.464.469 1 1 66 72
1 t
t Fi
i
l St t
o
See No
es nanc
a
at eaea
s.
- 19 -
~'~ ~~
~ ~ r s ~ ~ ~ ~ ~ s ~ ~ ~ ~ ~ o ~ ~ ~
CITY OP ATLANtIC BEACH, FLORIDA
COMBI N[NC BALANCE SHEE7
ENTERPRISE FUNDS
SEPTEMBER 30, 1984
YITN COMPARATIVE TOTALS FOR SEPTEMBER 30, 1981
Asceta
N
0
J
'v7.
4
Cash end inveetaents
Aceounce recetveble
Prepaid expenses
Inventories
Total current tueta
Other assets
Rea[ricted inveataente
Conatruccton Sn progress
Property, plant end aqulpaent - net
Total aseeu
Llebtl lttee and Fund Faulty
Liabil it Lea:
Aeeounte payable and accrued
1feb111ttea
Custoter deposits
Total liabllitiea
Pund equity:
Con[ributiona - other
governaenc•
Retained earnings:
Reserved for renevale and
repleceaence
Unreserved
Total rabined earnings
Total Eund equity
Total liabilltiea and fund equity
Mater Sever Santb[Lon Toule
Pund Pund Fund 1484- 2987
9 276,361 $ 247,806 $ 92,048 $ 576,215 $ 258,494
42,372 10,282 52,614 49,046
108 333 641 1,154
48.915 48.915 30,269
327.916 258.421 92,048 678,385 338,963
670 9,685 10,355 11,187
127,63) 681,718 809,351 620,842
115,917 115,917
940,709
$1.396.928 870,761
51.976.502 84,541
$176.589 1
$3 .896,011 1.
.510.019 52 909,122
.880.114
$ 22,404 $ 58,045 $ 13,309 $ 97,758 $ 35,334
60,164 60.164 39,453
82,568 58.045 13.]09 153,912 74.787
593,918 285,928 879,84b 910,485
127,633 681,718 809,351 620,842
592,809 910.811 163.280 1 .666.900 1 .274,000
720,442 1,592,529 167,280 2 ,476,251 1 .694.842
1,314,360 1,878.457 163,280 3 ,356,097 2 .805,727
$1.396.928 $1.936.502 4176.589 S3 510.019 $2 .880.114
Sea Notaa Co Plnancial Stateaenta.
CITY OF ATLANTIC BEACH. FLORIDA
COMBINING STATEMENT OP 0.EVENUFS. EXPENSES AND
CHANCES IN RETAINED EARNINGS
ENTERPRISE FUNDS
FOR 'THE YEAR ENDED SEPTEM8E0. 70. 1984
VITN COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30. 1981
,
N
r
,
Operating revenues:
Cuatoner ehargec
Ocher incoae
io[Q operating revenues
Operating eapenaea:
Personal services
Conereccual aervlcee
Supplies
Repairs end aeintenance
Heat,] Lghc end porar
Depree (at(on
Other eapenaea
Total operating erpe rases
Operating lncoae (lose)
Nonoperating incoae:
Connee[Lan charges
Intereec intone
Toral nonoperating lncosa
Ne[ Sncoae (lose) before
operating Ln[erEund tranafera
Opeucing tranafera in (out)
Net lneoae (lose)
Add depreciation on fired aseeta
acquired by shared revenues
ea[ernally rea[ritted Eor capful
aequu It tone
Increase [n re[etned eerninga
Re[dned earnings, October 1, 1997
Repined eatninga at Septeaber 30, 1984
Voter Serer Sanl[atfon Totals
Pund Fund Fund 1987 T983
$241,920 $ 628,598 $TIZ,573 $1,083,091 $ 801,512
19,J$B _ 6,200 3,628 29.216 1s9.240
261,308 634.798 216,201 1,112.307 _ 9-6852
51,251 95,416 182,419 319,086 281,376
4,194 43,629 5.426 53 249 18,880
25,971 34,440 38,749 99,160 109,071
14,859 34,429 5,159 s4,447 219,353
26,927 60,706 87,s7I BI,174
43,051 41,745 24,832 109,629 104,317
2ss 1.621 2,748 4.024 2,780
166,409 301.986 258,77] 727.128 815,911
94.899 332.812 42 s72 385.179 143 941
34,876 137,9se
32,921 )4.22s
67.797 232.181
162,696 664.995
100 000) (64,787)
62,696 500,512
24.537 6.101
87,233 506,713
63J,209 1,085.315
3720.442 31.592.629
192,874 Ss,976
107,146 93,387
299.980 139.1s9
42 sI2) 685.159 283.300
30.000 (134.383) (111,103)
(12 632) 660,776 172,192
_ 30.678 28.880
(12,632) 681,424 201,072
176.812 1.894 ,317 1,693,765
3167.280 32.476.251 g1 .394.837
Sea Notes [o Plnanclal 8[a[eaenu.
.?
J
CITY OF ATLANTIC BEACH. FLORIDA
COMBINING STATEMENT OP CHANCES IN PINANCIAL POSITION
ENTERPRISE FYNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1984
YI7H COMPARATIVE AMOUNTS POR THE YEAR ENDED SEPTO~BER 30. 1983
N
N
O
O
Oi
pinenetel reeourcee rere provided
by:
Opeutlone:
Nec Eneoee (lone)
Dapreeiettoo
Vorking capital provided
by opeuttons
Concr(butione froe other gover,rente
Decreeae 1n other acacia
Total eourcae of rocking capital
Pinenctel reeourcee rere aced Eor:
Acqutettton of property, plant
end equlpeent
Inereue Ln ree[rlctad inveeUenu
Inereeee (decrwee) in vorking
uplul
WC<r Serer Seni cation Totele
Pmd Pund Fund 198~ i487
$ 62,696 $500,612 ($12,533) $550,775 $172,192
43.052 41,745 24.833 109.610 104.317
105,748 542,357 12,300 660,403 276,509
67,610
267 565 832
106.015 542,922 12.700 661,237 344,119
2T,730 184,210 5,500 212,440 126,347
30.552 157,958 188.510 343.000
$ sz.733 Sz0o.7s4 s b.eoD $260.287 (Q)
Awlve is of Chengee 1n VorkLnR GplCel
Increase (decreeee) In current
eeeets:
Cuh and Snveateen[e
Accounts receivable
Inventory
Other current aese[e
Inereeee (decreeee) In
current assata
(Inereeee) decreeee in current
liebtlit iaa:
Accounts payable cad aecrwd
ltabillt lee
Cwtoner Dapoelta
(Inereeee) decreue In current
1 Lbiliclee
Inereeee (deereue) Ln rocking
upibl
$ 64,962 $237,399 $15,360 $]17,721 ($118,244)
255 7,428 (4,115) ],568 3,734
19,326 (680) 18,646 10,469
246) 267) (513) 1,154
84.297 243,880 11.245 339.422 102 887)
(10,853) (43,126) (4,445) (58,424) (11,003)
TO 711) 20 711) ll 33B)
31 564) 47 126) 4 445) 19 US) 22 341)
($ )
9sa Notae to P/wnelal 9tetewnq.
Deloitte
Haskins+Sells
Ceftihetl Pubbc Accountants
CITY OF ATLANTIC BEACH, FLORIDA
Single Audit Report For The Year
Ended September 30, 1985
Deloitte
Haskins+Sells
Cetlifietl Public Accountants
Suite 1240. Atlantic Bank Building
200 West Forsyth Sireel
Jacksonville. Florida 32202-0371
(6041 354-8333
ITT Telex: 4995892
Honorable Mayor and January 27, 1986
City Commissioners
City of Atlantic Beach, Florida
Dear Sirs:
We have examined the financial statements of the City of
Atlantic Beach, Florida as of and for the year ended
September 30, 1985 and have issued our report thereon dated
January 27, 1986. As part of our examination, we made a study
and evaluation of the City's system of internal accounting
control to the extent we considered necessary to evaluate the
system as required by generally accepted auditing standards.
The purpose of our study and evaluation was to determine the
nature, timing, and extent of the auditing procedures
necessary for expressing an opinion on the Company'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.
The observations reported herein should be considered in the
context of the responsibility of management for establishing
and maintaining a system of internal accounting control, the
objectives of and inherent limitations on such a system, end
the definition of a material weakness for purposes of this
report, which are described in the Appendix to this report.
Our study and evaluation made for the limited purposes
described in the first paragraph would not necessarily
disclosed all material weaknesses in the system. Accordingly,
we do not express an opinion on the system of internal
accounting control of The City of Atlantic Beach, Florida
taken es a whole. However, our study end evaluation disclosed
no condition that we believe is a materiel weakness.
Honorable Mayor and
City Commieaioners January 27, 1986
Our examination did, however, disclose the following
conditions that, although not considered by us to be material
weaknesses, ere weakneasea in internal accounting control for
which corrective action might be taken or conditions for which
improvements might be made.
Cash Disbursements
Finding - Cash disbursements from [he City's cash and
nvi estment accounts require only one authorized check
signature.
Bac round - The City presently relies upon the review and
approve of documentation supporting disbursements by the City
Manager and the preparation of monthly bank reconciliations by
a non-checksigner es the primary internal controls over cash
disbursements. These controls, together with overriding
control provided by the general supervision of the City
Manager in the close working environment of the City's Finance
Department, appear to mitigate this condition as a material
weakness. However, it is felt that dual signature authority
over material cash disbursements would strengthen internal
accounting control and documentation.
Recommendation - Establish an upper monetary limit for single
s gna t~ ure authority for cash disbursements and require dual
signatures on cash disbursements which exceed the limit. In
addition, dual signatures should be required for all cash
disbursements from grant and other restricted funds. The City
should also consider the use of facsimile signature with
respect to routine batched disbursements.
EDP Terminal Security
Finding - The utilities cashier could directly access water
and sewer customer billing records through an EDP terminal.
BaclcR round - The EDY terminal located Sn the utility cashier's
work area is used by the cashier to access customer billing
records in order to answer customer inquiries or disputes
about their water and sewer bills. The security status of the
terminal also allowed the Cashier the capability to directly
make changes to or alter such records in the system. However,
changes to customer billing records on the system should only
be made by the Finance Department's EDP operator, upon the
submission of authorized documentation of such changes.
Honorable Mayor and
City Commissioners January 27, 1986
Recommendation - We recommended that the security status of
t e ut ty cashier's EDP terminal be changed to "inquiry
only". Information may still be accessed and viewed, however,
changes to the underlying records cannot be made directly
through the terminal. The City Manager end Finance Director
concurred with our recommendation and it is our understanding
that it has been implemented.
Payroll Distributions
F_in~ding - The City's payrolls are distributed to its employees
by its various department heeds and directors.
Bac round - The City's payrolls are prepared by the Finance
apartment based on employee time records which are submitted
by department heads or their designees. Upon preparation, the
payrolls are submitted back to the persons for distribution.
These circumstances allow access to initial employee payroll
records and payrolls by the same persons.
Recommendation - Periodically perform surprise payroll
distributions. The City Manager or another responsible
employee, independent of routine payroll responsibilities,
should deliver and distribute payroll checks on a surprise
basis on randomly selected dates, two or three times a year.
This will act as a deterrent and provide for the detection of
continued payroll distributions to terminated or fictic ioua
employees.
Encumbrance System
Finding - The City does not presently use an encumbrance
accounting system in its Governmental Type and other budgeted
funds.
Back round - The City presently manages its expenditure
u gets y 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 6egina with the purchase order or request which
is recorded on the system as an appropriation prior to the
actual expenditure. This allows for more efficient management
of budgets as outstanding purchase orders representing
encumbered funds are recorded and accumulated on the system.
Honorable Mayor and
City Commissioners January 27, 1986
Recommendation - The City should study the feasibility of
est~a T sfT non encumbrance accounting system over
expenditures in Governmental Fund Type and other Budgeted
funds.
Debt Covenants
Find~in -The City has not formally established accounting for
the revenue, sinking fund and other related accounts and
reserves outlined in the debt covenants of the Buccaneer
District water and Sewer Revenue Bond Ordinance.
Recommendation - Prepare a monthly working paper analysis
w c-Fi~~- act for these restricted asset accounts in
accordance with the covenants of the Bond Ordinance. The
total funds accounted for in this analysis should agree with
the restricted cash and investments account of such funds
recorded in the general ledger of the related Enterprise Funds.
Dlanual Subsidiary Records
Finding - The City's general ledgers and budgets are
maintained on their computer, however, numerous aubeid iery
records supporting account balances and memorandum accounts
are prepared manually.
Background - Many of the City's subsidiary records and
ens- Iysea of general ledger and memorandum accounts are
maintained manually. The increase in transactions during the
fiscal year, particularly with the procurement of two new
grants end bond issues, together with future significant
transactions planned, will require substantial additional
subsidiary record level accounting and schedule preparation
and maintenance by the Finance Department. Considering the
efficiencies afforded by the use of a microcomputer in
performing subsidiary record level accounting together with its
relatively nominal costs, coat recovery should be realizable
in a snort period of time.
Recommendation - The City should consider obtaining a
mm croc~for use in the Finance Department.
t t
Honorable Mayor end
Clty Commiasionera January 27, 1986 5
This report is intended solely for the use of management and
should nor. be used for any other purpose.
Me will be pleased to discuss these comments With you and, if
desired, to assist you in implementing any of the suggestions.
Yours truly,
~JQ`O~~C ~o~4.a Q JtSDG~
APPENDIX
MANAGEMENT'S RESPONSIBILITY FOR, AND THE OBJECTIVES AND LIMITATIONS
OF, INTERNAL ACCOUIiTING CONTROL AND THE DEFINITION OF A MATERIAL
WEAKNESS
The following comments concerning management's responsibility for
internal accounting control, [he objectives of and the inherent
limitations on a system of internal accounting control, and the
definition of a material weakness are excerpts from Statements on
Auditing Standards of the American Institute of Certified Public
Accountants.
Management's Responsibility
Management ... 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
p rocedurea.
Objectives
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 princ iplea.
Limitations
Because of inherent limitations in any system of internal accounting
control, errors or irregularities nevertheless may 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.
Materiel Weakness
A material weakness (for the auditor's purpose) is a condition in
which the specific control procedures, or the degree of compliance
with them, do not (in the auditor's judgment) reduce to a relatively
low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. These criteria may be broader than those that may be
appropriate for evaluating weaknesses in accounting control for
management or other purposes.
• Deloitte
Haskins+Sells
Cenifietl Public Accountants Suite 1240. Atlantic Bank Building
• 200 West Forsyth Street
Jacksonville. Florida 32202A371
(9041 354-8333
ITT Telex: 4995842
AUDITORS' OPINION
•
Nonorable Mayor end Members of the
Clty Commission
City of Atlentlc Beech, Florida
• We have examined the combined financial statements of the City
of Atlantic Beach, Florida as of and for the year ended
September 30, 1985. Such combined financial ata[emente are
included in your 1985 Annual Financial Report and are
incorporated herein by refezence.
• Our examination was made for the purpose of forming an opinion
on the combined financial statements taken ae a whole. The
supplemental schedule of grant activity for the year ended
September 30, 1985, included herein, is presented for purposes
of additional analysis end Se not a required part of the
combined financial statements. Such supplemental schedule has
• been subjected to the auditing procedures applied in the
examination of the basic combined financial statements and, in
our opinion, is fairly stated in all material respects when
considered in relation to the basic combined financial
etatementa taken ea a whole.
•
~~~'~Te ~~ A ~elOh
.Ianuary 27, 1986
. . . . . . . . . . .
clrr aF Aruxnc gEACx, FLO91w
SCXEOULE OF GRANT ACTIVITY
FOR TXE TEAR ENDED SERTEIBER 30. 1985
Grant and Entitleaa!nt
ContrlbuLlons and Revenues
(Accrued) Accrued Grantee Grant and
October 1, Septeaber 30, Inkrest Entl tleaent
Grant Title Grant Nuaber 1984 Recelve0 1985 Recognized Earned Tokl Espendlkres
FEDERAL 60YERMIFIIT GRANT AND EMT[TIEMEMT:
Enri ronaenkl RroLK tion Agency
Federal Nerenue Sharing
Tokl Federal goverment grant and entitleaz!nt
STATE 60YERNIExT GRANT - F1or1M Departaent
of Envi ronaenkl Regulation
C120747-03 j 01,431 {59,013 ;110,M1 j140,444 ;115,955
10-2-015-001 (12 157) 55,233 74100 57 254 20 57,104
(12,157) 135,654 73201 197,700 220 197,920 115.955
147010
1296 10.2% 10,2% 10 2%
TOTAL 1 15 5136.649 183.497 f20 •WB ,4, ~ 24 ~]j6.252
• Deloitte
Haskins-Sells
Certilled Public Accou mains Suile 1240. Atlantic Bank auilding
~ 200 West FarsNh Sneel
Jacksonville. Florida 32202-4371
(90413548333
ITT Telex; 4995042
Honorable Hayor and Hembera January 27, 1986
~ of the City Commission
City of Atlantic Beach, Florida
Dear Sira:
We have examined the combined financial statements of the City
~ of Atlantic Beach, Florida as of and for the year ended
September 30, 1985, and have issued our report thereon dated
January 27, 1986. As part of our examination, we made a study
and evaluation of the City's eyatem of internal accounting
control to the extent we considered necessary to evaluate the
system as required by generally accepted auditing standards and
~ the Standards for Financial and Compliance Audits contained in
Standards for Audit of Governnmeotal Or¢anizationa. Proxrems.
General. For the purpose of this report, we have classified the
s~ificant internal accounting controls in the following
categories: cash receipts and dleburaements, cash and investment
balances, receivables, budgets, fixed assets, payroll,
~ purchasing, grants, debt administration and general ledger. The
purpose of our study and evaluatlon was to determine the nature,
timing, and extent of the euditin~ 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 opinion an the eyatem of internal accounting control
~ taken as a whole.
The observations reported herein should be considered in the
context of the responsibility of management for establishing and
maintaining a eyatem of internal accounting control, the
~ objectives of and inherent limitations on such a eyatem, and the
definition of a material xeakness for porpoise of this report,
which are described in the Appendix attached to this report.
Our study and evaluation made for the limited purpose described
in the first paragraph would not necessarily disclose all
~ material weaknesses in the eyatem. Accordingly, we do not
express an opinion on the system of internal accounting control
of the City of Atlantic Beach, Plorida taken as a whole.
However, our study and evaluatlon disclosed no condition that we
believe ie a material weakness.
^•
Honorable Mayor and Maabera of
City Couiasion .lanuery 27, 1986 2
~•
This report is intended solely for the use of the City of
Atlantic Beach, Florida and the Federal Cogniraot Audit
Agency and other Federsl and Stets audit agencies end
should not be used for any other purpose.
~ ^Your1~ truly`.` `
v~0 ~< ~Ld~tw 4~
~ DELDITTE FiAS&INS 4 SELLS
Attachaent
~•
~•
~•
APPENDIX
• MANAGEMENT'S RESPONSIBILITY FOR, AND THE OBJECTIVES AND LIMITATIONS
OF, INTERNAL ACCOUNTING CONTROL AND THE DEFINITION OF A MATERIAL
WEAKNESS
The Following comments concerning management's responsibility for
internal accounting control, the objectives of and the inherent
• limitations on a system of internal accounting control, and the
definition of a material weakness are excerpts from Statements on
Auditing Standards of the American Institute of Certified Public
Accountants.
• Management's Responsibility
Management ... 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.
Objectives
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 end recorded properly to permit the preparation of
financial statements in accordance with generally accepted
accounting principles.
• Limitations
Because of inherent limitations in any system of internal accounting
control, errors or irregularities nevertheless ma7 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.
Material Weakness
A material weakness (for the auditor's purpose) ie a condition in
• which the specific control procedures, or the degree of compliance
with them, do not (in the auditor's judgment) reduce to a relatively
low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned
• functions. These criteria may be broader than those that may be
appropriate for evaluating xeaknesses in accounting control for
management or other purposes.
C]
• Deloitte
Haskins+SeUs
Cart tired Public Accou plants Suite 7240. Atlantic Bank Building
200 W¢51 F0i5yIh $tre¢I
Jacksonville. Florida 32202-4371
(9041 354-8333
ITT Telez: 4995642
~ Honorable Neyor aad Members of the January 27, 1986
City Commission
City of Atlantic Beach, Florida
Dear Sire:
~ We have examined the combined financial statements of the City
of Atlantic Beach, Florida as of end for the year ended
September 30, 1985 and have Lasued our report thereon dated
January 27, 1986. Our examimtion vas made in accordance with
generally accepted auditing standards, the provisions of
Standards for Audit of Governmental Organizations, Programs,
• ct v t ea en unct one, promu gate y t e omptro er
spars , c parts n to financial snd compliance audits; the
Office of Management and Budget's (OMB) Compliance Supplement_
for Sin le Audits of State and Local Governments; an ,
provia ona o OMB a Circular A- , vi ors Adm letrative
Re uiremente for Grants-In-Aid to State an oca overnnents
• Attac ant P, udit Requiremen_ta an the v de pea or
Financial and om ante u is of Federa - ea ate ro rams
Guidelines and, accordingly, included auc testa o t
accounting records and such other auditing procedures ea we
considered necessary in the circumstances.
• In our opinion, for the tested operations and records, the
City of Atlantic Beach, Florida, complied rith the material
terms and conditions of its Federsl end State grants,
contracts, and agreements, and the tested Federal and State
financial reports present the underlying financial data of the
. grants. Further, based on our examination and the procedures
referred to above, nothing came to our attention to indicate
that the City of Atlantic Beach, Florida, had not complied
with the compliance matters referred to above, and the Pederal
and State financial repo rte do not present the underlying
financial data of the grants.
• Thia report is intended solely for the use of the City of
Atlantic Beach, Plorida end the Pederal Cognizant Audit Agency
and other Federal and State audit agencies end should not be
used for any other purpose.
~ Yours t'r'1uly,``
~~u~o.tle t~w~~ctn,.~ d~Q~
DELOITTE HASKINS fi SELLS
•