AUDIT PRESENTATION
AUDIT PRESENTATION.
CITY OF CLEARAWATERV FLORIDA
September 30, 2006
1
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Required Communications
City of Clearwater, Florida
Members of the City Council
Dear Councilmembers,
We have audited the financial statements of the City of Clearwater, Florida for the year ended September 30,
2006 and have issued our report thereon dated March 26; 2007. As required by auditing standards generally
accepted in the United States of America, we are providing you with the information shown in this presentation
relative to the conduct of our audit. Such information is intended for the use of management and should not be
used for any other information or purposes.
CHERRY, BEKAERT & HOLLAND, L.L.P.
Required Communications
Communication Comments Action Required
Auditor Responsibility Under GAAS
Our responsibility under GAAS is to express Unqualified opinions expressed on None
an opinion on the basic financial statements the governmental activities, business-
of the City of Clearwater, Florida based on our audit. type activities, each major fund, and
the aggregate remaining fund
information.
In addition we audited the financial statements of each Unqualified opinions expressed on None
of the City's non-major governmental and non-major each of the City's non-major
enterprise, internal service and fiduciary funds governmental and non-major
presented as supplementary information in the enterprise; internal service and
combining and individual fund financial fiduciary funds
statements
In carrying out this responsibility, we assessed
the risk that the financial statements may
contain a material misstatement, either
intentional or unintentional, and designed
and conducted our audit to provide reasonable,
not absolute, assurance of detecting misstatements
that are material to the financial statements.
Reasonable assurance of detecting None
material misstatement{s} in financial
statements obtained.
Required Communications
Communication
Responsibility under GAAS - continued
Comments
Action Required
In addition, we considered the internal control
structure of the City of Clearwater, Florida to
gain a basic understanding of the accounting
system in order to design an effective and
efficient audit approach, not for the purpose of
providing assurance on the internal control
structure.
We also considered the City of Clearwater's
internal control over compliance with
requirements that could have a direct and
material effect on its major federal and state
programs in order to determine our auditing
procedures for the purpose of expressing our
opinion on compliance and to test and report on
internal control over compliance in accordance
with OMB Circular A-'133.
Effective and efficient audit approach design
based on internal control structure understanding.
None
Effective and efficient audit approach design None
based on internal control structure
understanding.
Mom M M M i M M= :M M M M M .M
Required communications
Communication Comments
Responsibility under GARS - continued
ndependence -. We are familiar with Rule 101 We are independent with respect to the City of
Independence- .
of the AtCPA's Code of Professional Conduct, Clearwater, Florida and its component unit the
and its interpretations and rulings as it relates Clearwater Community Redevelopment Agency
to independence: (CRA).
Signiflcant Accounting Policies
Communicate new accounting policies or
change in application of old policies
Note 1 to the financial statements contains a
summary of significant accounting policies. We
noted no transactions entered into by the City
during the year that were significant and unusual or
any significant transactions for which there is a
lack of authoritative guidance or consensus.
Note 11 B to the financial statements indicate that
the City adopted retroactive provisions for
infrastructure accounting prescribed by GASB 34
Action Required
None
None
Required Communications
Communication Comments
Management Judgements and Accounting
Estimates
Inform about the process used by Management is required to make certain estimates
management in formulating particularly in the financial statements. Following describes a
sensitive accounting estimates and about the material estimate made:
basis for the auditor's conclusions regarding
the reasonableness of those estimates. Estimated Liability for Unpaid Claims (various risk
management programs require estimated of future
claims) and depreciation. These estimates were
reviewed by us and found to be reasonable.
Significant Audit Adjustment
Inform of any proposed adjustments whether No adjustments were proposed by us that could, in
made or not. our judgment, either individually or in the
aggregate, have a significant effect on the City's
financial reporting process.
There were no uncorrected financial statement
misstatements during the period under audit.
Action Required
None
None
Required Communications
Communication
Comments
Action Required
Disagreements with Management
Inform of any disagreements with
management.
There were no disagreements with management.
Difficulties encountered Performing the
Audit
Describe any difficulties as they relate to the We encountered no difficulties with management
City's personnel or conditions encountered or others in the financial reporting system.
during the audit process.
None
None
MIMI IM
r
Communication
Comments
Other Information in Documents Containing
Audited Financial Statements
Auditor's responsibility for information prepared Management's Discussion and Analysis, the
by management that accompanies the basic Employees' Pension Schedules, and the Statistical
financial statements Section are not required parts of the basic financial
statements. We have applied certain limited
procedures; however, we did not audit the information.
Statistical Section has been revised from prior years for
implementation of GASB 44.
Action Required
None
Required Communications
II Inquiries Performed With Management and
Others Regarding Fraud Risks
• Finance Department
- Assistant Director
- Debt Specialized Accounting
- Accounting Manager
- Senior Accountants (2)
- Treasury
- Payroll
- Risk Management
• City Auditor Department
• Office of Management and Budget
• Solid Waste Utility Department
. Federal Requirements
• MAJOR PROGRAMS TESTED
• US Department of Housing and Urban Development (HUD)
• Community Development Block Grant - Entitlement
• Home Investment Partnerships Program
• Beach by Design Initiative
• US Environmental Protection Agency
• Passed Through Florida Department of Environmental Protection
• Kapok Wetland & Floodpiain Restoration Project
• NO REPORTABLE CONDITIONS
• NO MATERIAL WEAKNESSES
• NO PRIOR AUDIT FINDINGS AND QUESTIONED COSTS
• MAJOR PROGRAMS TESTED
• Florida Department of Environmental Protection -
Recreation Development Assistance Program
• Florida Department of Revenue
Phillies Stadium
• NO REPORTABLE CONDITIONS
• NO MATERIAL WEAKNESSES
• NO PRIOR AUDIT FINDINGS AND QUESTIONED COSTS
State Requirements
Other. Requirements
• STATE AUDITOR GENERAL
• Investment in Public Funds
• Financial Emergencies
• Financial Report filed with the Florida Department of Financial Services
• Financial Condition Assessment
• No Prior Year Management Letter Comments
• No Current Year Management Letter Comments
• GASB 42 - Accounting and Financial Reporting for Impairment of Capital
Assets and for Insurance Recoveries (FY 2006)
• GASB 44 - Economic Condition Reporting: The Statistical Section
(FY 2006)
• GASB 43 - Financial Reporting for Postemployment Benefit Plans Other
Than Pension Plans (Phased Implementation based on same "phase" used
for Statement 34) (Required FY 2008)
• GASB 45 - Accounting and Financial Reporting by Employers for
Postemployment Benefits Other than Pension Plans (Phased Implementation
based on same "phase" used for Statement 34) (Required FY 2008)
• GASB 46 - Net Assets Restricted by Enabling Legislation (FY 2006)
• GASB 47 - Accounting for Termination Benefits (FY 2006)
• GASB 48 - Sales and Pledges of Receivables and Future Revenues and
infra-Entity Transfers of Assets and Future Revenues (Required FY 2008)
• GASB 49 - Accounting and Financial Reporting for Pollution Remediation
Obligations (Required FY 2009)
NEW PRONOUNCEMENTS