TAMPA BAY REGIONAL PLANNING COUNCIL - FINANCIAL AUDIT FOR THE PERIOD ENDED SEPTEMBER 30, 2009Memorandum
Tampa Bay Regional Planning Council
4000 Gateway Centre Boulevard, Suite 100
Pinellas Park, FL 33782
Phone (727) 570-5151 / FAX (727) 570-5118
..................................................... .. .......................................................................................................................................................
RECEIVED
To: Elected Officials and Administrators MAR 16 2010
Regional Planning Council Executive Directors OFFICIAL RECORDS AND
From: Commissioner Larry Bustle, Secretary/Treasurer LECISL4TfyE SRVCS DEPT
Subject: Transmittal of Fiscal Year 2009 Audit
Date: March 15, 2010
Attached is a copy of the financial audit of the Tampa Bay Regional Planning Council for the
period ended September 30, 2009.
If you have any questions, please contact Council's Executive Director, Manny Pumariega
(ext.17), or John Jacobsen, Accounting Manager (ext.19).
TAMPA BAY REGIONAL PLANNING COUNCIL
Basic Financial Statements
September 30, 2009
TAMPA BAY REGIONAL PLANNING COUNCIL
Table of Contents
Page
Report of Independent Auditors' ..........................................................................................................1
Management Discussion and Analysis ..................................... ......................................................2-8
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Assets .........................................................................................................9
Statement of Activities .........................................................................
Fund Financial Statements:
Balance Sheet - General Fund ............................................ ........................................................11
Reconciliation of the Balance Sheet of General Fund to
the Statement of Net Assets ....................................................................................................12
Statement of Revenues, Expenditures and Changes in
Fund Balances - General Fund ...................................... ........................................................13
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balance of the
General Fund to the Statement of Activities .................... ............................. .14
'Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - General Fund ....... ........................................................15
Notes to Financial Statements ............................................. .................................................16 - 26
Independent Auditors' Report on Internal Control Over
Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing
Standards ....................................................................... .................................................28 - 29
Independent Auditors' Management Letter ........................... .................................................30 - 31
Appendix A - Management Letter Comments ...................... ........................................................32
Appendix B - Summary Schedule of Prior Audit Findings .... ........................................................33
Report of Independent Auditors'
Tampa Bay Regional Planning Council
Tampa, Florida
We have audited the accompanying financial statements of the governmental activities and the major
fund of the Tampa Bay Regional Planning Council (the Council) as of and for the year ended
September 30, 2009, which collectively comprise the Council's basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the Council's management.
Our responsibility is to express an opinion on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the major fund of the Council as of
September 30, 2009, and the respective changes in financial position, and the respective budgetary
comparison of the general fund for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated February
17, 2010 on our consideration of the Council's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Govemment Auditing Standards and should be considered in assessing
the results of our audit.
The management's discussion and analysis as listed in the table of contents is not a required part of
the basic financial statements but is supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit this information
and express no opinion on it.
Tampa, Florida
February 17, 2010
TAMPA SAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
As management of Tampa Bay Regional Planning Council (the Council), we offer readers of the
Council's financial statements this narrative overview and analysis of the financial activities of the
Council for the fiscal year ended September 30, 2009. We encourage readers to read the information
presented here in conjunction with additional information that we have furnished in the Council's
financial statements, which follow this narrative.
Financial Highlights
• The assets of the Council exceeded its liabilities at the close of the fiscal year by $1,437,029 (net
assets).
• The government's total net assets decreased by $66,270 due to reductions in federal, state & local
funding as well as membership dues.
• At the end of the current fiscal year, unreserved fund balance for the General Fund was
$1,390,194, or 56.0 percent of total general fund expenditures for the fiscal year. The unreserved
fund balance consists of $808,282 that is designated and $581,912 that is undesignated.
The Council's total long term liabilities decreased by $123,652 compared to the prior fiscal year.
The key factor in this decrease is the payment of principal of the Revenue Note.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Council's basic financial
statements. The Council's basic financial statements consist of three components; 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see
Figure 1). The basic financial statements present two different views of the Council through the use of
government-wide statements and fund financial statements. In addition to the basic financial
statements, this report contains other supplemental information that will enhance the reader's
understanding of the financial condition of the Council.
2
TAMPA SAY REGIONAL ]PLANNING COUNCIL
Management's Discussion and Analysis
Required Components of Annual Financial Report
Figure 1
Management's
Discussion and
Analysis
Government-wide
Financial
Statements
Basic Financial Statements
Fund
Financial
Statements
Basic
Financial
Statements
Notes to the
Financial
Statements
The first two statements (Page 9 and 10) in the basic financial statements are the Government-wide
Financial Statements. They provide both short and long-term information about the Council's
financial status.
The next statements (Pages 11 through 15) are Fund Financial Statements. These statements
focus on the activities of the individual parts of the Council's government. These statements provide
more detail than the government-wide statements. The Fund Financial Statements are comprised of
the governmental funds statements.
The next section of the basic financial statements is the notes to the financial statements. The notes
to the financial statements explain in detail some of the data contained in those statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview
of the Council's finances, similar in format to a financial statement of a private-sector business. The
government-wide statements provide short and long-term information about the Council's financial
status as a whole.
The two government-wide statements report the Council's net assets and how they have changed.
Net assets are the difference between the Council's total assets and total liabilities. Measuring net
assets is one way to gage the Council's financial condition.
The government-wide statements include the governmental activities category. The governmental
activities include most of the Council's basic services such as Council and Program activities. Federal
and state grants, charges for services and membership dues fund most of these activities.
TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Fund Financial Statements
The fund financial statements provide a more detailed look at the Council's most significant activities.
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Council, like all other governmental entities,
uses fund accounting to ensure and reflect compliance (or non-compliance) with finance-related legal
requirements, such as the Council's budget adoption. All of the funds of the Council are included in
only one category: governmental funds.
Governmental Funds - Governmental funds are used to account for those functions reported as
governmental activities in the government-wide financial statements. All of the Council's basic
services are accounted for in governmental funds. These funds focus on how assets can readily be
converted into cash flow in and out, and what monies are left at yearend that will be available for
spending in the next year. Governmental funds are reported using modified accrual accounting which
provides a current financial resources focus. As a result, the governmental fund financial statements
give the reader a detailed short-term view that helps determine the amount of financial resources
available to finance the Council's programs.
The relationship between government activities (reported in the Statement of Net Assets and the
Statement of Activities) and governmental funds is described in a reconciliation that is a part of the
fund financial statements.
The Council adopts an annual budget for its General Fund. The budgetary statement provided for the
General Fund demonstrates how well the Council complied with the budget and whether or not the
Council succeeded in providing the services as planned when the budget was adopted. The
budgetary comparison statement uses the budgetary basis of accounting and is presented using the
same format, language, and classifications as the legal budget document. The statement shows four
columns: 1) the original budget as adopted by the. board; 2) the final budget as amended by the
board; 3) the actual resources, charges to appropriations, and ending balances in the General Fund;
and 4) the difference or variance between the final budget and the actual resources and charges.
Notes to the Financial Statements - The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements. The
notes to the financial statements are on pages 16 - 26 of this report.
4
TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Government-Wide Financial Analysis
The Council's net assets for the past two fiscal years are summarized as follows.
Primary
Governmental
Activities
Current and other assets
Capital assets
Total assets
2008
$1,960,159
2,496,333
4,456,492
Increase
(Decrease)
13nno
$1,687,844
2,396,502
4,084,346
$ (272,315)
(99,831)
(372,146)
Long-term liabilities outstanding 2,460,137 2,331,791 (128,346)
Other liabilities 493,056 315,526 (177,530)
Total liabilities 2,953,193 2,647,317 (305,876)
Net assets:
Invested in capital assets,
net of related debt 169,655 108,157 (61,498)
Unrestricted 1,333,6M 1,328,872 (4,772)
Total net assets $_1,503,299 $1,437,029 $ (66,270)
The decrease in current and other assets is offset by the decrease in long term and other liabilities.
The decrease in capital assets is the result of the current year's depreciation.
5
TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
General revenues:
Miscellaneous
Membership dues
Rental income
Interest
Total revenues
Functions/Program Expenses:
Financial and administration
Comprehensive planning
Public safety
Physical environmental
Debt service-interest and debt
service amortization
Total functions/program expenses
Change in net assets
Governmental Activities
2008 2009
$ 936,821
915,539
$ 704,727
539,779
44,286
940,978
181,423
44,230
$ 3,063,277
263,935
1,407,552
773,395
291,070
34,210
914,213
180,513
22,765
$ 2,396,207
257,512
1,304,623
473,115
332,339
Increase
(Decrease)
$ (232, 094)
(375,760)
(10,076)
(26,765)
(910)
21,465
$ (667,070)
(6,423)
(102,929)
(300,280)
41,269
106,306 94,888 11,418
2,842,258 2,462,477 (379,781)
$ 221,019 $ __(66,270) $ (287,289)
Net assets may serve over time as one useful indicator of a government's financial condition. The
Council's net assets decreased by $66,270 for the fiscal year ended September 30, 2009. The
decrease is primarily due to the following:
0 Reductions in federal and state grants and local contracts.
• Decreases in membership dues and interest income.
Financial Analysis of the Council's Funds
As noted earlier, the Council uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental Funds - The focus of the Council's governmental funds is to provide information on
near-term inflows, outflows, and balances of usable resources. Such information is useful in
assessing the Council's financing requirements. Specifically, unreserved fund balance can be a
useful measure of a government's net resources available for spending at the end of the fiscal year.
6
TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
The general fund is the chief operating fund of the Council. At the end of the current fiscal year,
unreserved fund balance of the General Fund was $1,390,194. The total unreserved, designated
fund balance of the General Fund was $808,282 which represents amounts designated by the board
for specific purposes.
Balance Sheet
Figure 4
Governmental Funds
2008
2009
Increase
(Decrease)
Current and other assets $ 1,876,837 $1,610,381 $ 266,456
Liabilities and fund balance
Liabilities 371,397 189,173 (182,224)
Fund balance:
Reserved 35,705 31,014 (4,691)
Unreserved 1,469,735 1,390,194 (79,541)
Total 1,505,440 1,421,208 (84,232)
Total liabilities and fund balance $ 1,876,837 $_1,610,381 $ (266,456)
General Fund Budgetary Highlights: During the fiscal year, the Council revised the budget on
several occasions. Generally, budget amendments fall into one of three categories: 1) amendments
made to adjust the estimates that are used to prepare the original budget once exact information is
available; 2) amendments made to recognize new funding amounts from external sources, such as
Federal and State grants, contracts, etc.; and 3) increases in appropriations that become necessary to
maintain services. Total amendments to the General Fund decreased revenues by $72,935. Federal
grants & fees & contracts increased; while state grants declined.
Capital Asset and Debt Administration
Capital assets - The Council's investment in capital assets for its governmental activities as of
September 30, 2009 totals $2,396,502, net of accumulated depreciation of $695,351. These assets
include land of $470,041, building of $1,609,996 (net), building components of $175,252 (net),
landscaping of $34,343 (net), and equipment, furniture and fixtures of $106,870 (net).
Additional information on the Council's capital assets can be found in Note 5 of the basic financial
statements.
Long-Term Debt - As of September 30, 2009 the Council's long term obligations consisted of a note
payable for $2,288,345 and accrual for compensated absences of $169,799. Additional information
regarding the Council's long-term debt can be found in Note 9 on pages 25 - 26 of this report.
7
TAMPA SAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Economic Factors and Next Year's Budgets and Rates
The following economic factors will have an impact on the Council's 2009/2010 budget:
• The decline in the CPI to a 1.3% decrease for the last twelve months provides a positive impact in
keeping operating costs at a manageable level.
• Investment balances have declined and market interest rates on investments have also dropped,
resulting in lower interest income.
• The Council's per capita dues rate remains at $30. This calculates to a $2,397 increase as
compared to the prior year's assessment. The Council has been able to absorb most increased
costs through contract and grant awards.
• The recent increase in Regional Planning Council funding by the Department of Community Affairs
to the $2.5 million level, increases the Council allocation by $8,337 over the contract period.
Budget Highlights for the Fiscal Year Ending September 30, 2010
Several changes to programs will impact the Council's 2009/2010 budget:
• Several programs completed in 2008/2009 will not impact the 2009/2010 budget. They
include: Eckerd College Mitigation Plan, RDSTF TTX, Statewide Exercise Evaluation,
Economic Analysis - Natural Disaster and Pinellas County LMS. These programs accounted
for $103,000 of funding in 2008/2009.
Disaster Recovery Guide, RDSTF Planning, Statewide Regional Evacuation Plan, Florida
Catastrophic Planning, Host Community Relocation Plan, and Economic Analysis & Disaster
Resiliency have been renewed; or are continuing. These programs are included in the
2009/2010 initial budget accounting for $427,000 of funding.
The initial 2009/2010 budget anticipated approximately $2,657,000 in expenditures. Additionally,
several programs, not anticipated in the initial budget, are pending final approval. The funding level of
these programs is still to be determined.
Requests for Information
This report is designed to provide an overview of the Council's finances for those with an interest in
this area. Questions concerning any of the information found in this report or requests for additional
information should be directed to the Executive Director, Tampa Bay Regional Planning Council, 4000
Gateway Centre Boulevard, Suite 100, Pinellas Park, Florida 33782.
8
TAMPA BAY REGIONAL PLANNING COUNCIL
Statement of Net Assets
September 30, 2009
Primary
Government and
Governmental
Activities
Assets
Cash $ 807,528
Investments 410,004
Receivables:
Federal and state grants 168,230
Local government 173,712
Other receivables 19,893
Prepaid expenses and other assets 108,477
Capital assets _ 2,396,502
Total assets 4,084,346
Liabilities
Accounts payable and accrued liabilities
Unearned revenue
Long-term liabilities:
Due within one year
Due in greater than one year
Total liabilities
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
83,859
105,314
126,353
2,331,791
2,647,317
108,157
1,328,872
$ 1,437,029
The notes to the financial statements are an integral part of this statement. 9
TAMPA BAY REGIONAL PLANNING COUNCIL
Statement of Activities
Year Ended September 30, 2009
Program Revenues
Operating
Charges for Grants and
Net (Expense)
Revenue and
Changes in
Net Assets
Primary
Government
Governmental
Functions/Programs Expenses Services Contributions Activities
Primary government:
Governmental activities:
General government:
Financial and administration $ 257,512 $ 64,526 $ - $ (192,986)
Comprehensive planning 1,304,623 301,300 315,679 (687,644)
Public safety 473,115 214,173 164,131 (94,811)
Physical environment 332,339 124,728 59,969 (147,642)
Debt service -interest and debt
service amortization 94,888 - - (94,888)
Total governmental activities 2,462,477 704,727 539,779 (1,217,971)
Total primary government $2,462,477 $ 704,727 $ 539,779 (1,217,971)
General revenues:
Miscellaneous 34,210
Membership dues 914,213
Rental income 180,513
Interest 22,765
Total general revenues 1,151,701
Change in net assets (66,7.70)
Net assets - beginning 1,503,299
Net assets - ending $ 1,437,029
The notes to the financial statements are an integral part of this statement. 10
TAMPA BAY REGIONAL PLANNING COUNCIL
Balance Sheet
General Fund
September 30, 2009
Assets
Cash $ 807,528
Investments 410,004
Receivables:
Federal and state grants 168,230
Local government 173,712
Other receivables 19,893
Prepaid expenditures 31,014
Total assets $ 1,610,381
Liabilities and fund balances
Liabilities:
Accounts payable and accrued liabilities 83,859
Deferred revenues 105,314
Total liabilities 189,173
Fund balances:
Reserved for:
Prepaid expenditures 31,014
Unreserved:
Designated
Grant matching funds 250,000
Development of regional
impact and other council activities 125,000
Specialty license plate expenditures 63,483
Compensated absences 169,799
Long term building renewal and replacement 200,000
Undesignated 581,912
Total fund balances 1,421,208
Total liabilities and fund balances $ 1,610,381
The notes to the financial statements are an integral part of this statement. 11
TAMPA BAY REGIONAL PLANNING COUNCIL
Reconciliation of the Balance Sheet of General Fund to the
Statement of Net Assets
September 30, 2009
Amounts reported for governmental activities in the statement of net assets
are different because:
Total fund balance - General Fund $ 1,421,208
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the General Fund. 2,396,502
Debt issuance costs are not available to pay for current-period 77,463
expenditures, and therefore are expensed in future periods.
Long-term liabilities are not due and payable In the current period and
therefore, are not reported as liabilities in the General Fund. Long-term
liabilities at year end consists of:
Liability for compensated absences $ (169,799)
Note payable (2,288,345) _ (2_,458,144)
Total net assets - Governmental Activities $ 1,437,029
The notes to the financial statements are an integral part of this statement. 12
TAMPA BAY REGIONAL PLANNING COUNCIL
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund
Year Ended September 30, 2009
Revenues
Federal grants $ 231,251
State grants 303,515
Membership dues 914,213
In-kind services 5,013
Fees/contracts 704,727
Other revenues 34,383
Interest 22,765
Rental income 180,513
Total revenues 2,396,380
Expenditures
Current:
General government:
Finance and administration 240,572
Comprehensive planning 1,248,587
Public safety 450,189
Physical environment 323,362
Capital outlay 7,221
Debt service:
Interest 89,026
Principal 121,655
Total expenditures 2,480,612
Deficiencyof revenues
over expenditures (84,232)
Fund balance - beginning 1,505,440
Fund balance - ending $ 1,421,208
The notes to the financial statements are an integral part of this statement. 13
TAMPA BAY REGIONAL PLANNING COUNCIL
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balance of the General Fund to the
Statement of Activities
Year Ended September 30, 2009
Net change in fund balances _ total general fund
Amounts reported for governmental activities in the statement of activities
are different because:
The General Fund reports capital outlays as expenditures. However, in
the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense. This
is the amount by which depreciation of $107,052 exceeded capital
outlay of $7,221 in the current period.
Repayment of revenue note principal is an expenditure in the General
Fund, but the repayment reduces long-term liabilities in the statement
of net assets.
In the statement of activities, debt issuance costs are amortized over
the life of the related debt.
In the statement of activities, the cost of compensated absences is
measured by the amounts earned during the year, while in the General
Fund expenditures are recognized based on the amounts actually paid
for leave used. This is the net amount of vacation, sick leave and other
incremental salary-related payments earned in excess of the amount
used in the current period.
Change in net assets of governmental activities
$ (84,232)
(99,831)
121,655
(5,859)
1.997
$ (66,270)
The notes to the financial statements are an integral part of this statement- 14
TAMPA BAY REGIONAL PLANNING COUNCIL
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - General Fund
Year Ended September 30, 2009
Revenues
Federal grants
State grants
Membership dues
In-kind services
Fees/contracts
Other revenues
Interest
Rental income
Total revenues
Expenditures
Current:
Direct personnel service
Indirect casts
Other direct costs
Publications, subscriptions and dues
Travel/conferences
Legal expenses
Printing/graphics
Contract services/consultants
Occupancy costs
Equipment lease/maintenance
Auditing
Administrative in-kind
Other operating expenditures
Capital outlay
Debt service:
Interest
Principal
Total expenditures
Deficiency of revenues
over expenditures
Fund balance - beginning
Fund balance - ending
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
$ 162,970 $ 248,007 231,251 $ (16,756)
499,928 307,025 303,515 (3,510)
914,213 914,213 914,213 -
- 5,013 5,013 -
670,485 718,396 704,727 (13,669)
31,000 31,883 34,383 2,500
45,000 23,000 22765 (235)
177,388 180,512 180,513 1
2,500,984 2,428,049 2,396,380 (31,669)
1,617,409 1,498,390 1,494,864 3,526
65,000 51,000 41,910 9,090
31,850 34,305 30,861 3,444
55,625 63,995 60,188 3,807
33,370 30,949 28,628 2,321
72,875 69,858 58,367 11,491
183,300 266,901 245,316 21,585
126,369 123,378 81,758 41,620
81,103 82,400 78,131 4,269
18,500 21,000 20,998 2
- 5,013 5,013 -
98,500 134,128 116,676 17,452
15,000 8,000 7,221 779
89,026 89,026 89,026 -
110,218 121,659 121,655 4
2,598,145 2,600,002 2,480,612 119,390
(97,161) (171,953) (84,232) 87,721
1,505,440 1,505,440 1,505,440 -
$ 1,408,279 $ 1,333,487 $ 1,421,208 $ 87,721
The notes to the financial statements are an integral part of this statement- 15
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 1 - Summary of Significant Accounting Policies
The financial statements of the Tampa Bay Regional Planning Council (the Council) have been
designed to conform to accounting principles generally accepted in the United States of America as
applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial reporting
principles. The following is a summary of the significant accounting policies.
A - Reporting Entity
The Council is a tax-exempt association of cities and counties, which is organized to assist
governmental and private agencies in the planning and administration of government-aided programs
in the Tampa Bay area. The Council was established by interlocal agreement September 8, 1975
pursuant to the authority of Section 163.01, Florida Statutes. The basic operations of the Council, as
reflected in the accompanying statement of revenues and expenditures, are financed by dues charged
to member governments.
In evaluating how to define the Council for financial reporting purposes, management has considered
all potential component units. The decision to include a potential component unit in the reporting
entity was made by applying the criteria set forth in Accounting Principles Generally Accepted in the
United States of America (GAAP). The basic, but not the only, criterion for including a potential
component unit within the reporting entity is the governing body's ability to exercise oversight
responsibility. The most significant manifestation of this ability is financial interdependency. Other
manifestations of the ability to exercise oversight responsibility include, but are not limited to, the
selection of governing authority, the designation of management, the ability to significantly influence
operations and accountability for fiscal matters. The other criterion used to evaluate potential
component units for inclusion or exclusion from the reporting entity is the existence of special
financing relationships, regardless of whether the Council is able to exercise oversight responsibilities.
Based upon the application of these criteria, the following component unit was identified.
Regional Cooperative Alliance, Inc.
Regional Cooperative Alliance, Inc., a tax exempt 501(c)(3) nonprofit corporation, was formed by the
Council for the exclusive purpose of researching, identifying, developing and disseminating strategies
to regional issues. The Council's executive board is the governing board of Regional Cooperative
Alliance, Inc.
In the current year, there was no activity in the component unit to include in the reporting entity's basic
financial statements as of September 30, 2009.
16
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 1- Summary of Significant Accounting Policies (continued)
B - Basis of Presentation - Basis of Accounting
Basis of Presentation
Govemment-wide Statements: The statement of net assets and the statement of activities display
information about the primary government (the Council). These statements include the financial
activities of the overall government. These statements distinguish between the governmental activities
of the Council. Governmental activities generally are financed through taxes, intergovernmental
revenues, and other non-exchange transactions.
The statement of activities presents a comparison between direct expenses and program revenues for
each function of the Council's governmental activities. Direct expenses are those that are specifically
associated with a program or function and, therefore, are clearly identifiable to a particular function.
Indirect expense allocations that have been made in the funds have been reversed for the statement
of activities. Program revenues include (a) fees and charges paid by the recipients of goods or
services offered by the programs and (b) grants that are restricted to meeting the operational or
capital requirements of a particular program. Revenues that are not classified as program revenues
are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the Council's
General Fund, which accounts for all of the Council's operations.
Measurement Focus. Basis of Accounting
Government-wide Financial Statements: The government-wide financial statements are reported
using the economic resources measurement focus and are reported using the accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities
are incurred, regardless of when the related cash flows take place. Non-exchange transactions, in
which the Council gives (or receives) value without directly receiving (or giving) equal value in
exchange, include grants, entitlements, and donations. Revenues from grants and entitlements are
recognized in the fiscal year in which all eligibility requirements have been satisfied.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants, and 3) capital grants, including special
assessments. Internally dedicated resources are reported as general revenues rather than as
program revenues.
General Fund Financial Statements. The General Fund is reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Under this method,
revenues are recognized when measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long-term debt and compensated absences, which are recognized as
expenditures to the extent they have matured. General capital asset acquisitions are reported as
expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under
capital leases are reported as other financing sources.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 1- Summary of Significant Accounting Policies (continued)
Under the terms of grant agreements, the Council funds certain programs by a combination of specific
cost-reimbursement grants, categorical block grants, and general revenues. Thus when program
expenses are incurred, there are both restricted and unrestricted net assets available to finance the
program. It is the Council's policy to first apply cost-reimbursement grant resources to such programs,
followed by categorical block grants, and then by general revenues.
All governmental activities of the Council follow FASB Statements and Interpretations issued on or
before November 30, 1989, including the Accounting Principles Board Opinions, and Accounting
Research Bulletins, unless those pronouncements conflict with GASB pronouncements.
C - Budgetary Data
An annual budget is adopted for the General Fund by the Council at the June meeting preceding the
fiscal year end. All annual appropriations lapse at the fiscal year end. Midyear and year-end
amendments are made to the budget as necessary. The budget is prepared and controlled at the
project activity level.
The Council's budget for the general fund is prepared under a budgetary basis. There were no
adjustments necessary to convert the results of operations at end of the year from the budgetary
basis of accounting to the GAAP basis of accounting for the general fund.
D - Assets, Liabilities and Fund Equity
Investments
Investments are recorded at fair value, except for amounts invested with the State Board of
Administration's Local Government Surplus Funds Trust Fund, a 2a7-like investment pool, which are
recorded at amortized cost, which approximates fair value.
Capital Assets
Capital assets, which include furniture, fixtures, equipment and a building are reported in the
government-wide financial statements. Capital assets are defined by the government as assets with
an initial, individual cost of more than $500 and an estimated useful life in excess of two years. Such
assets are recorded at historical cost or estimated historical costs if purchased or constructed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets' lives are not capitalized.
Depreciation is provided on a straight-line method over the following estimated useful lives:
Years
Building 40
Building components 10-25
Landscaping 15
Equipment, furniture and fixtures 3-10
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 1- Summary of Significant Accounting Policies (continued)
Compensated Employee Absences
Sick leave - Employees with five years of service become eligible to receive 25% of accumulated sick
leave upon termination, limited to 150 hours of compensation. Employees with ten years of service
become eligible to receive 50% of accumulated sick leave upon termination, limited to 200 hours of
compensation. Employees with twenty years of service become eligible to receive 50% of
accumulated sick leave upon termination, limited to 250 hours of compensation. Employees with thirty
years of service become eligible to receive 50% of accumulated sick leave upon termination, limited to
300 hours of compensation. Other sick pay benefits are paid only in the event of actual sickness. As
of September 30, 2009, the total accumulated sick leave pay benefit was $344,236 for all employees.
Of this amount, an accrual representing vested benefits of $81,574 has been reported in the
government-wide financial statements at September 30, 2009.
Vacation pay - Employees can accumulate up to 1 1/2 times the normal amount earned for one year
and is payable, if not used, upon termination. At September 30, 2009, accrued vacation payable of
$66,822 has been reported in the government-wide financial statements.
The liability for compensated absences includes an accrual for incremental salary-related payments.
These include the Council's share of social security and Medicare payroll taxes and the Council's
required contribution to the Florida Retirement System. At September 30, 2009 accrued salary-
related payments totaling $21,403 has been reported in the government-wide financial statements.
The amount of accrued compensated absences expected to be paid from current resources is not
significant.
Em to ee Benefits Indirect Costs and Direct Charge Allocations
The Council uses cost allocations to share common or joint institutional costs. Costs are accumulated
in pools and are equitably distributed among the programs based on a allocation method that
demonstrate compliance with fair and objective cost-sharing among programs, including grant funded
programs.
Leave benefits consist of annual leave accrued and other types of leave paid (i.e. sick, military,
holiday, and administrative leave). Leave costs are accumulated in an organizational leave
pool and distributed to programs based on year-to-date in-service salary costs. In-service
salaries include salaries paid for regular time, excluding leave benefit costs. This results in all
programs bearing an equitable share of leave costs and diminishes the circumstantial effects
of timing associated with leave usage. Actual leave benefit costs for the year ended
September 30, 2009 are as follows:
Leave benefit costs allocated $ 183,611
In-service salaries $ 976,474
Actual rate 18.80%
Actual leave rates by employee classification (which reflects leave eligibility) are developed and
applied to the year-to-date base of in-service salaries in each program to determine its share of
leave costs. In the aggregate, $1,160,085 was charged among all programs operated during
the fiscal year. Separate classes of employees are maintained to charge programs in
accordance with each employee's leave benefit eligibility.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 1- Summary of Significant Accounting Policies (continued)
Employee Benefits. Indirect Costs and Direct Charge Allocations (continued)
2. Employees are defined by class based upon fringe benefit eligibility. Employee fringe benefits
are accumulated in an organizational pool and are prorated by employee class (i.e. eligibility)
based on a year-to-date proportionate share of total year-to-date organizational salaries.
Organizational salaries include salaries paid for regular time, overtime and leave benefit costs.
Actual fringe benefit costs for the year ended September 30, 2009 are as follows:
Fringe benefit costs allocated $ 334,779
Organizational salaries $1,160,085
Actual rate 28.86%
3. Indirect costs consist of joint or common costs supporting all programs such as
communication, office supplies, postage, depreciation and risk insurance. Indirect costs are
accumulated in an organizational pool and distributed to programs based on year-to-date
organizational salaries plus fringe benefits.
Actual indirect costs for the year ended September 30, 2009 are as follows:
Indirect cost allocated (including $ 78,773
depreciation of $36,862)
Organizational salaries plus fringe
benefits costs allocated $1,494,864
Actual rate 5.27%
4. Direct costs consist of building occupancy costs, equipment lease and maintenance expense,
audit and internal services (printing, library, accounting and data processing). Direct costs are
allocated to programs based on year-to-date organizational salaries plus fringe benefits.
5. Financial reporting Programs completed during the fiscal year may have reported interim
costs to grantor agencies, pending the determination of final costs at September 30, 2009.
Interim reports may show higher or lower allocated costs which reflect changing rates after
program termination. Final costs for completed programs can only be determined at the end of
the fiscal year.
Net Assets/Fund Balances
Net Assets
Net assets in government-wide financial statements are classified as invested in capital assets, net of
related debt, restricted and unrestricted. It is the Council's policy to first apply restricted resources
when an expense is incurred for the purpose for which both restricted and unrestricted net assets are
available.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 1- Summary of Significant Accounting Policies (continued)
Fund Balances
In the governmental fund financial statements, reservations or restrictions of fund balance represent
amounts that are not appropriable or are legally segregated for a specific purpose. Designations of
fund balance represent tentative management plans that are subject to change.
The governmental fund types classify fund balances as follows:
Reserved
Reserved for prepaid expenditure - portion of fund balance that is not expendable and not an
available resource.
Unreserved
Designated for grant matching funds - portion of fund balance not available for appropriation because
it represents the year-end fund balance reserved for local expenditures related to grant programs.
Designated for development of regional impact and other council activities - portion of fund balance
not available for appropriation because it represents the year-end resources reserved for
development of regional impact and council activities.
Designated for specialty licenses plate expenditures - portion of fund balance reserved for the
specialty license plate program.
Designated for compensated absences - portion of fund balance reserved for compensated absences.
Designated for long term building renewal and replacement - portion of fund balance reserved for the
long term renewal and replacement of the Gateway Centre.
Undesignated - portion of total fund balance available for appropriation that is uncommitted at year-
end.
Accounting Estimates - The preparation of the basic financial statements in conformity with
accounting principles generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the basic financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Note 2 - Deposits and Investments
A - Deposits and Concentration of Credit Risk
At September 30, 2009, the book balance of deposits was $807,528 and the bank balance was
$834,586. The Council's bank balances include insured deposits under FDIC and the remaining
balances are collateralized pursuant to Chapter 280 of the Florida Statutes.
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TAMPA SAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 2 - Deposits and Investments (continued)
IB - Investments
Florida Statutes authorize the Council to invest in the State Board of Administration's Local
Government Investment Pool (LGIP), certain obligations of the U.S. Treasury and U.S. Agencies,
repurchase agreements, and interest-bearing time deposits and savings accounts held in banks and
savings and loans.
As of September 30, 2009, the Council had Certificates of Deposit totaling $351,206, which mature on
December 4, 2009.
The Council invests funds throughout the year with the Local Government Surplus Funds Trust Fund
(SBA), under the regulatory oversight of the State of Florida. Investments in the SBA consist of the
Florida PRIME and the Fund B Surplus Trust Fund ("Fund B").
The Florida PRIME has met the criteria as a "2a7-like" pool; this pool was assigned a rating of
"AAAm" by the Standard and Poor's Rating Service. As of September 30, 2009, the Council had a
balance of $17,555 in the Florida PRIME.
Fund B is accounted for using a fluctuating net asset value pool. The fair value factor at September
30, 2009 was .54915069, and the weighted average. life (based on expected cash flows) of Fund B
investments is 6.69 years at September 30, 2009. However, because Fund B consists of restructured
or defaulted securities, there is a considerable uncertainty regarding the weighted average life. This
pool is not rated by any nationally recognized rating agency. As of September 30, 2009, the Council
had a Fund B balance of $75,104 that was recorded at a fair value of $41,243.
Interest Rate Risk - TBRPC has no specific policy regarding interest rate risk.
Note 3 - Receivables - Allowance for Doubtful Accounts
At September 30, 2009, there was no allowance for doubtful accounts since all receivable were
considered to be collectible.
Note 4 - Accounts Payable and Accrued Liabilities
Accounts payables and accrued liabilities at September 30, 2009, were as follows:
Accounts payable $ 42,266
Accrued payroll and related liabilities 31,338
Accrued interest payable 4,755
Other 5,500
$ 83,859
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 5 -- Capital Assets
Capital asset activity for the year ended September 30, 2009 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated
Land $ 470,041 $ - $ - $ 470,041
Total capital assets not being
depreciated 470,041 - - 470,041
Capital assets being depreciated:
Equipment, furniture and fixtures 398,490 7,221 (469) 405,242
Landscaping 55,195 - - 55,195
Building components 286,570 - - 286,570
Building 1,874,805 - - 1,874,805
Total capital assets being
depreciated 2,615,060 7,221 (469 2,621,812
Less accumulated depreciation for.
Equipment, furniture and fixtures (262,150) (36,691) 469 (298,372)
Landscaping (17,172) (3,680) - (20,852)
Building components (91,532) (19,786) - (111,318)
Building (217,914) (46,895) - (264,809)
Total accumulated depreciation (588,768) (107,052) 469 (695,351)
Total capital assets being
depreciated, net 2,026,292 (99,831) - 1,926,461
Governmental activities capital
assets, net $ 2,496,333 $ (99,831) $ - $ 2,396,502
Depreciation was charged to the following functions:
General government
Financial and administration $ 21,443
Comprehensive planning 56,832
Public safety 19,550
Physical environmental 9,227
Total $ 107,052
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TAMPA BAS' REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 6 - Unearned Revenue
Unearned revenues in the government-wide and fund financial statements at September 30, 2009
were as follows:
Development Regional Impact
application fees $ 47,910
Advance - grants and contracts 37,404
Other 20,000
$ 105,314
Note 7 - Operating Leases
The Council has entered into operating lease agreements for office equipment and an automobile.
Minimum noncancellable lease commitments are as follows:
2010 $ 21,626
2011 7,548
2012 7,548
2013 6,290
Total rental expense for all operating lease agreements for the year ended September 30, 2009 was
$19,912.
Note 8 - Pension Plan
All regular Council employees are participants in the Florida Retirement System (the System). The
System is a cost-sharing multiple-employer defined benefit plan which is controlled by the State
Legislature and administered by the State of Florida, Department of Administration, Division of
Retirement.
Benefit provisions are established under Chapter 121, Florida Statutes, which may be amended by
the Florida Legislature. For regular class employees, the System provides for vesting of benefits after
6 years of creditable service. Normal retirement benefits are available to regular and senior class
employees who retire at or after age 62 with 6 or more years of service or who retire after 30 years of
creditable service regardless of age. For senior management class employees, the System provides
for vesting of benefits after 6 years of creditable service.
Early retirement is available any time after vesting with a 5% reduction of benefits for each year prior
to the normal retirement age. Retirement benefits are based upon age, average compensation and
years-of-service credit where average compensation is computed as the average of an individual's
five highest years of earnings. Certain disability and survivor benefits are also available from the
System. There are no required contributions from individual plan members. The System funding
policy provides for monthly participating employer contributions at actuarially determined rates that,
expressed as percentages of annual covered payroll, are adequate to accumulate sufficient assets to
pay benefits when due. Level percentage of payroll employer contribution rates, established by state
law, is determined using the entry-age actuarial funding method. Future plan benefit changes,
assumption changes, and methodology changes are amortized within 30 years, using level dollar
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 8 - Pension Plan (continued)
amounts. Except for gains reserved for rate stabilization, future actuarial gains and losses are
amortized on a rolling 10% basis, as a level dollar amount. Following are the contribution rates. The
rate applied to regular employee salaries was 9.85%. The rate applied to senior management salaries
was 13.12%. These rates include a 1.11 % health insurance subsidy. Total payroll for the Council
employees covered by the system was approximately $1,195,012 for the year ended
September 30, 2009. The Council's total payroll for the same period was $1,160,085. The Council's
contribution to the System plan for the years ended September 30, 2009, 2008, and 2007 were
$126,738, $127,681, and $124,911 respectively. These amounts are equal to the required
contribution for each year.
The Council has no responsibility to the System other than to make the periodic payments required by
state statutes.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The most recent available report is
for the plan year ended June 30, 2007. That report may be obtained by writing to Division of
Retirement, P.O. Box 9000, Tallahassee, FL 32315-9000, or by calling (877) 377-1737, or accessing
their internet site at www.frs.state.fl.us.
Note 9 - Long-Term Liabilities
In September 2008, a $2,410,000 Revenue Note, Series 2008 (the Note) was issued by Mercantile
Bank of Florida, N.A. to refinance the $2,800,000 Revenue Note, Series 2002. The Note is payable in
monthly installments of $17,578 with a final maturity date of September 2023, and bears interest at a
fixed rate of 3.74%. The Note is secured by a lien upon the Council's pledged revenues which
includes fees, rents, other revenues and the income and investment held in funds and accounts
created by the note. For the current year, principal and interest paid was $210,681 and total pledged
revenue was approximately $1.8 million.
The future debt service requirements of the Revenue Note, Series 2008 are as follows:
Fiscal
Year Principal
Interest Total
2010 $ 126,353 $ 84,582 $ 210,935
2011 131,229 79,706 210,935
2012 136,083 74,852 210,935
2013 141,543 69,392 210,935
2014 147,004 63,930 210,934
2015-2019 824,444 230,223 1,054,667
2020-2023 781,689 62,050 843,739
$2,288,345 $ 664,735 $2,953,080
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2009
Note 9 - Long-Term Liabilities (continued)
Debt issuance costs are reported in other assets on the Statement of Net Assets and are amortized
over the life of the Revenue Note.
A summary of changes in long-term liabilities follows:
Balance Balance
October 1, September 30, Current
2008 Additions Reductions 2009 Portion
Compensated absences $ 171,796 126,377 (128,374) 169,799 $ -
Note payable - Series 2008 2,410,000 - (121,655) 2,288,345 126,353
$2,581,796 126,377 (250,029) 2,458,144 $126,353
Note 10 - Contingency
Expenditures incurred by the Council associated with the execution of various grants are subject to
audit and possible disallowances by the grantor agency. Management believes that if audited, any
adjustment for disallowed expenditures would be immaterial.
26
Supplemental Financial Information
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With AvveramentAudltlyg Standards
Tampa Bay Regional Planning Council
Tampa, Florida
We have audited the financial statements of the governmental activities and the major fund of the
Tampa Ray Regional Planning Council (the Council) as of and for the year ended September 30,
2009, which collectively comprise the Council's basic financial statements, and have issued our report
thereon dated February 17, 2010. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Council's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Council's internal control over financial reporting. Accordingly, we do not express an opinion on
the effectiveness of the Council's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the Council's ability to initiate, authorize, record, process,
or report financial data reliably in accordance with generally accepted accounting principles such that
there is more than a remote likelihood that a misstatement of the Council's financial statements that is
more than inconsequential will not be prevented or detected by the Council's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the Council's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. We did not identify any deficiencies
in internal control over financial reporting that we consider to be a material weakness as defined
above.
28
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Council's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
We noted a certain matter that we have reported to the management of the Council in a separate
letter dated February 17, 2010.
This report is intended for the information and use of the budget committee, Council members,
management, and applicable federal and state agencies, and is not intended to be and should not be
used by anyone other than these specified parties.
Tampa, Florida
February 17, 2010
29
Independent Auditors' Management Letter
Tampa Bay Regional Planning Council
Tampa, Florida
We have audited the financial statements of the governmental activities and the major fund of the
Tampa Bay Regional Planning Council (the Council), as of and for the year ended September 30,
2009, and have issued our report thereon dated February 17, 2010.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. We have issued our Independent
Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards. Disclosures in that report, which is dated February 17, 2010, should be considered in
conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local government entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the aforementioned
report:
Section 10.554(1)(i)1, Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. See Appendix B for an update on the prior year's material weakness in
the Schedule of Finding's and Questioned Costs.
Section 10.554(1)(i)2, Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, nothing came to our attention that would cause us to believe that the
Council was in noncompliance with Section 218.415 regarding the investment of public funds.
Section 10.554(1)(i)3, Rules of the Auditor General, requires that we address in a management letter
any recommendations to improve financial management. In connection with our audit, we did not
have any such recommendations.
Section 10.554(1)(i)4, Rules of the Auditor General, requires that we address violations of provisions
of contracts or grant agreements, or abuse that have an effect on the financial statement that is less
than material but more than inconsequential. In connection with our audit, we did not have any such
findings.
30
Section 10.554(1)(i)5, Rules of the Auditor General, provides that an auditor may based on
professional judgment, report the following matters that have an inconsequential effect on the
financial statements, considering both quantitative and qualitative factors: (1) violations of provisions
of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) control deficiencies that are not
significant deficiencies. See Appendix A for management letter comments with recommendations in
connection with internal controls. We did not audit the Council's response to this matter, which is also
provided in Appendix A and, accordingly, we express no opinion on it.
Section 10.554(1)(i)6, Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
the management letter, unless disclosed in the notes to the financial statements. Such disclosure is
included in the notes to financial statements.
Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether
or not the Council has met one or more of the financial emergency conditions described in Section
218.503 (1), Florida Statutes, and the identification of the specific conditions met. In connection with
our audit of the financial statements of the Council, the results of our tests did not indicate the Council
met and of the specified conditions of a financial emergency contained in Section 218.503 (1).
However, our audit does not provide a legal determination on the Council's compliance with this
requirement.
Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual
financial report for the Council for the fiscal year ended September 30, 2009, filed with the Florida
Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement
with the annual financial audit report for the fiscal year ended September 30, 2009. Our comparison
of the financial report filed with the Department of Financial Services to the Council's 2009 audited
financial statements resulted in no material differences.
Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we applied
financial condition assessment procedures. It is management's responsibility to monitor the Council's
financial condition, and our financial condition assessment was based in part on representations
made by management and the review of financial information provided by the same. The financial
condition assessment procedures described above disclosed no deteriorating financial conditions.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of management, and
the Florida Auditor General, and is not intended to be and should not be used by anyone other than
these specified parties.
Tampa, Florida
February 17, 2010
31
TAMPA BAY REGIONAL PLANNING COUNCIL
Appendix A - Management Letter Comments
September 30, 2009
In planning and performing our audit of the financial statements of the governmental activities and the
major fund of the Tampa Bay Regional Planning Council (the "Council"), as of and for the year ended
September 30, 2009, which collectively comprise the Council's basic financial statements, we
considered its internal control in order to determine our auditing procedures for the purpose of
expressing our opinions on the basic financial statements and not to provide assurance on internal
control.
Current Year Observations and Recommendations:
Revenue Recognition
Observation: We noted that approximately $20,000 of deferred/unearned revenue should
have been recognized as revenue in the year ended September 30, 2009 relating to certain
reimbursement based grant agreements. This amount is offset by the effect of the prior year
passed adjustment of approximately $24,000.
Recommendation: We recommend that the Council design and implement controls to ensure
that revenue is recognized in the appropriate fiscal year based on the contract or grant
provisions and in accordance with generally accepted accounting principles.
Management's Response: The Council makes every effort to recognize revenue in the
appropriate fiscal year. The revenue in question relates to two contracts that cross fiscal years.
The Council had planned on recognizing a proportionate amount of contract revenue in each
of the fiscal year's of the contracts. In the future, the Council will recognize the contract
revenue based on the contract provisions and the requirements of generally accepted
accounting principles.
32
TAMPA SAY REGIONAL PLANNING COUNCIL
Appendix S - Summary Schedule of Prior Audit Findings
September 30, 2009
Financial Statement Finding - Material Weakness
Finding 2008-1: Revenue Recognition
Criteria: Revenue should be recognized in accordance with the contract or grant agreement
provisions and in accordance with generally accepted accounting principles.
Condition: Approximately $134,000 of deferred/unearned revenue should have been
recognized as revenue in the year ended September 30, 2007 on a performance based contract
that had been completed. As a result, a prior period adjustment was made for the year ended
September 30, 2008 to reduce deferred/unearned revenue and increase net assets/fund balance
at the beginning of the year by $134,000.
Recommendation: The Council should design and implement controls to ensure that revenue is
recognized in the appropriate fiscal year based on the contract or grant provisions and in
accordance with generally accepted accounting principles.
Current status: There was a similar finding for the year ended September 30, 2009 that was
considered to be a control deficiency.
33