TAMPA BAY REGIONAL PLANNING COUNCIL - BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2010TAMPA BAY REGIONAL PLANNING COUNCIL
Basic Financial Statements
September 30, 2010
TAMPA BAY REGIONAL PLANNING COUNCIL
Table of Contents
Page
Report of Independent Certified Public Accountants ........................................................................1 -2
Management Discussion and Analysis ................................................................................... ........ 3-10
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Assets ............................................................................................ .............11
Statement of Activities ............................................................................................... ............. 12
Fund Financial Statements:
Balance Sheet - General Fund ........................................................................................ ............. 13
Reconciliation of the Balance Sheet of the General Fund
to the Statement of Net Assets .................................................................................... ............. 14
Statement of Revenues, Expenditures and Changes in
Fund Balances - General Fund ................................................................................... ............. 15
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balance of the
General Fund to the Statement of Activities ............................................................................. 16
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - General Fund .................................................... ............ 17
Notes to Financial Statements ................................................................................................18 - 28
Report of Independent Certified Public Accountants 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 ....................................................................................... 30 - 31
Report of Independent Certified Public Accountants on Compliance
with Requirements That Could Have a Direct and Material Effect
on Each Major Federal Program and on Internal Control over
Compliance in Accordance with OMB Circular A-133 and
Chapter 10.550, Rules of the Auditor General of the State of
Florida ........................................................................................................................... .... 32 - 33
Schedule of Expenditures of Federal Awards .................................................................... ............ 34
Notes to the Schedule of Expenditures of Federal Awards ................................................ ............ 35
Schedule of Findings and Questioned Costs ..................................................................... ............ 36
Independent Auditors' Management Letter ........................................................................ .....37 - 38
Appendix A - Management Letter Comments ................................................................... ............ 39
Appendix B - Summary Schedule of Prior Audit Findings ................................................. ............ 40
Report of Independent Certified Public Accountants
Tampa Bay Regional Planning Council
Pinellas Park, 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, 2010, 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, 2010, 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
14, 2011 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 Government Auditing Standards and should be considered in assessing
the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis information on pages 3 through 10 be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on
the financial statements that collectively comprise the Council's financial statements as a whole. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, and is not a required part of the financial statements.
The schedule of expenditures of federal awards is the responsibility of management and was derived
from and relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated in all material respects in relation to the financial statements as a whole.
a?
Tampa, Florida
February 14, 2011
TAMPA BAY 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, 2010. 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 $1,692,939 (net
assets).
• The government's total net assets increased by $255,910 due to an increase in operating grants &
contributions.
• At the end of the current fiscal year, unreserved fund balance for the General Fund was
$1,560,528, or 58.1 percent of total general fund expenditures for the fiscal year. The unreserved
fund balance consists of $625,000 that is designated and $935,528 that is undesignated.
• The Council's total long term liabilities decreased by $127,994 compared to the prior fiscal year.
The key factor in this decrease is the payment of principal on the series 2008 note payable.
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.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Required Components of Annual Financial Report
Figure 1
Management's Basic
Discussion and Financial
Analysis Statements
Government-wide Fund Notes to the
Financial Financial Financial
Statements Statements Statements
Basic Financial Statements
The first two statements (pages 11 and 12) 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 13 through 17) 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.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
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.
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 year-end 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 18 - 28 of this report.
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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 Increase
Activities (Decrease)
2010 2009
Current and other assets $2,126,789 $1,687,844 $ 438,945
Capital assets 2,294,957 2,396,502 (101,545)
Total assets 4,421,746 4,084,346 337,400
Current and other liabilities 525,010 315,526 209,484
Long-term liabilities outstanding 2,203,797 2,331,791 (127,994)
Total liabilities 2,728,807 2,647,317 81,490
Net assets:
Invested in capital assets,
net of related debt 132,968 108,157 24,811
Unrestricted 1,559,971 1,328,872 231,099
Total net assets $1,692,939 $1,437,029 $ 255,910
The increase in current and other assets is offset by the increase in net assets and total liabilities.
The decrease in capital assets is the result of the current year's depreciation.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Governmental Activities
2010 2009
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
General revenues:
Membership dues
Rental income
Interest
Miscellaneous
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
$ 720,657 $ 704,727
1,065,135 539,779
Increase
(Decrease)
$ 15,930
525,356
916,612 914,213 2,399
181,974 180,513 1,461
9,357 22,765 (13,408)
32,199 34,210 (2,011)
2,925,934 2,396,207 529,727
232,513 257,512 (24,999)
1,483,312 1,304,623 178,689
537,972 473,115 64,857
326,347 332,339 (5,992)
89,880 94,888 (5,008)
2,670,024 2,462,477 207,547
$ 255,910 $ (66,270) $ 322,180
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TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Governmental Activities -Revenue 2010
for Services 25%
General Revenues 391,
Governmental Activities - Expenditures 2010
Physical Environment
Public Safety
20%
Debt Service-Interest &
Amort.
3% Financial & Admin.
9%
ehensive Planning
56%
Net assets may serve over time as one useful indicator of a government's financial condition. The
Council's net assets increased by $255,910 for the fiscal year ended September 30, 2010. The
increase is primarily due to the following:
• Increases in federal and state grants and local contracts.
8
Operating Grants &
Contributions 36%
TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
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.
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 $1,560,528. The total unreserved, designated
fund balance of the General Fund was $625,000 which represents amounts designated by the board
for specific purposes.
Balance Sheet
Figure 4
Governmental Funds
2010
2009
Increase
(Decrease)
Current and other assets $ 2,054,878 $1,610,381 $ 444,497
Liabilities and fund balance
Liabilities 393,782 189,173 204,609
Fund balance:
Reserved 100,568 31,014 69,554
Unreserved 1,560,528 1,390,194 170,334
Total 1,661,096 1,421,208 239,888
Total liabilities and fund balance $ 2,054,878 $1,610,381 $ 444,497
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 increased revenues by $381,139. The
increase is mainly due to additional federal and state grants & fees and contracts.
Capital Asset and Debt Administration
Capital assets - The Council's investment in capital assets for its governmental activities as of
September 30, 2010 totals $2,294,957, net of accumulated depreciation of $785,743. These assets
include land of $470,041, building of $1,563,101 (net), building components of $155,466 (net),
landscaping of $30,663 (net), and equipment, furniture and fixtures of $75,686 (net).
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TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
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, 2010 the Council's long term obligations consisted of a note
payable for $2,161,989 and accrual for compensated absences of $173,036. Additional information
regarding the Council's long-term debt can be found in Note 9 on pages 27 - 28 of this report.
Economic Factors and Next Year's Budgets and Rates
The following economic factors will have an impact on the Council's 2010/2011 budget:
• The increase of 1.1 % in the CPI for the last twelve months provides a positive impact in keeping
operating costs at a manageable level.
• Interest income is expected to remain unchanged for 2011.
• The Council's per capita dues rate remains at $30. This calculates to a $2,752 decrease as
compared to the prior year's assessment. The Council has been able to absorb increased costs
through contract and grant awards.
• The Regional Planning Council funding by the Department of Community Affairs remains at the
$2.5 million level.
Budget Highlights for the Fiscal Year Ending September 30, 2011
Several changes to programs will impact the Council's 2010/2011 budget:
Several programs completed in 2009/2010 will not impact the 2010/2011 budget. They
include: Florida Catastrophic Planning, Statewide Regional Evacuation Study, Basis 5
Symposium, and Host Community Relocation Plan. These programs accounted for $365,000
of funding in 2009/2010.
Several new or completed programs that have been renewed will impact the 2011 budget.
These include: Integrating Nitrogen Goals with Planning, Training & Exercise Planning
Workshop, Post Disaster Redevelopment Plan II, and Economic Development District. These
programs will account for $174,000 of funding.
The initial 2010/2011 budget anticipated approximately $2,778,000 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.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Statement of Net Assets
September 30, 2010
Assets
Cash
Investments
Receivables:
Federal and state grants
Local government
Other receivables
Prepaid expenses and other assets
Capital assets
Total assets
Liabilities
Accounts payable and accrued liabilities
Unearned revenue
Long-term liabilities:
Due within one year
Due in greater than one year
Total liabilities
$ 1,306,308
75,713
524,558
98,512
9,892
111,806
2,294,957
4,421,746
218,045
175,737
131,228
2,203,797
2,728,807
Net assets
Invested in capital assets, net of related debt 132,968
Unrestricted 1,559,971
Total net assets $ 1,692,939
The notes to the financial statements are an integral part of this statement. 11
TAMPA BAY REGIONAL PLANNING COUNCIL
Statement of Activities
Year Ended September 30, 2010
Net (Expense)
Revenue and
Changes in
Program Revenues Net Assets
Primary
Operating Government
Charges for Grants and Governmental
Functions/Programs Expenses Services Contributions Activities
Primary government:
Governmental activities:
General government:
Financial and administration $ 232,513 $ 49,677 $ - $ (182,836)
Comprehensive planning 1,483,312 291,374 663,919 (528,019)
Public safety 537,972 235,421 341,247 38,696
Physical environment 326,347 144,185 59,969 (122,193)
Debt service -interest and debt
service amortization 89,880 - - (89,880)
Total governmental activities 2,670,024 720,657 1,065,135 (884,232)
Total primary government $2,670,024 $ 720,657 $ 1,065,135 (884,232)
General revenues
Membership dues 916,612
Rental income 181,974
Interest 9,357
Miscellaneous 32,199
Total general revenues 1,140,142
Change in net assets 255,910
Net assets - beginning 1,437,029
Net assets - ending $ 1,692,939
The notes to the financial statements are an integral part of this statement. 12
TAMPA BAY REGIONAL PLANNING COUNCIL
Balance Sheet
General Fund
September 30, 2010
Assets
Cash $ 1,306,308
Investments 75,713
Receivables:
Federal and state grants 524,558
Local government 98,512
Other receivables 9,892
Prepaid expenditures 39,895
Total assets $ 2,054,878
Liabilities and fund balances
Liabilities:
Accounts payable and accrued liabilities $ 218,045
Deferred revenues 175,737
Total liabilities 393,782
Fund balances:
Reserved for:
Prepaid expenditures 39,895
Specialty license plate expenditures 60,673
Unreserved:
Designated
Grant matching funds 250,000
Development of regional
impact and other council activities 125,000
Long term building renewal and replacement 250,000
Undesignated 935,528
Total fund balances 1,661,096
Total liabilities and fund balances $ 2,054,878
The notes to the financial statements are an integral part of this statement. 13
TAMPA BAY REGIONAL PLANNING COUNCIL
Reconciliation of the Balance Sheet of General Fund to the
Statement of Net Assets
September 30, 2010
Total fund balance - General Fund $ 1,661,096
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the General Fund. 2,294,957
Debt issuance costs are not available to pay for current-period 71,911
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 $ (173,036)
Note payable (2,161,989) (2,335,025)
Total net assets - Governmental Activities $ 1,692,939
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 Balance
General Fund
Year Ended September 30, 2010
Revenues
Federal grants $ 757,884
State grants 307,251
Membership dues 916,612
Fees/contracts 720,657
Other revenues 32,199
Interest 9,357
Rental income 181,974
Total revenues 2,925,934
Expenditures
Current:
General government:
Finance and administration 210,662
Comprehensive planning 1,425,571
Public safety 517,741
Physical environment 317,614
Capital outlay 3,777
Debt service:
Interest 84,325
Principal 126,356
Total expenditures 2,686,046
Excess of revenues
over expenditures 239,888
Fund balance - beginning 1,421,208
Fund balance - ending $ 1,661,096
The notes to the financial statements are an integral part of this statement. 15
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, 2010
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 $105,322 exceeded capital outlay of
$3,777 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
$ 239,888
(101,545)
126,356
(5,552)
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. (3,237)
Change in net assets of governmental activities
$ 255,910
The notes to the financial statements are an integral part of this statement. 16
TAMPA BAY REGIONAL PLANNING COUNCIL
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - General Fund
Year Ended September 30, 2010
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Federal grants $ 425,421 $ 739,394 $ 757,884 $ 18,490
State grants 316,250 332,061 307,251 (24,810)
Membership dues 916,610 916,610 916,612 2
Fees/contracts 551,538 620,052 720,657 100,605
Other revenues 44,200 28,700 32,199 3,499
Interest 10,500 10,500 9,357 (1,143)
Rental income 183,632 181,973 181,974 1
Total revenues 2,448,151 2,829,290 2,925,934 96,644
Expenditures
Current:
Direct personnel service 1,529,132 1,464,194 1,444,456 19,738
Indirect costs 61,000 45,000 39,446 5,554
Other direct costs
Publications, subscriptions and dues 32,850 32,339 30,383 1,956
Travel/conferences 62,300 61,216 53,822 7,394
Legal expenses 33,200 30,750 23,485 7,265
Printing/graphics 80,050 59,000 54,015 4,985
Contract services/consultants 214,623 598,725 576,928 21,797
Occupancy costs 128,640 128,626 69,951 58,675
Equipment lease/maintenance 80,275 79,809 77,815 1,994
Auditing 21,000 20,300 20,299 1
Other operating expenditures 86,504 104,496 80,988 23,508
Capital outlay 10,000 10,000 3,777 6,223
Debt service:
Interest 84,325 84,325 84,325 -
Principal 126,352 126,352 126,356 (4)
Total expenditures $ 2,550,251 $ 2,845,132 2,686,046 $ 159,086
Excess of revenues
over expenditures
Fund balance - beginning
Fund balance - ending
239,888
1,421,208
$ 1,661,096
The notes to the financial statements are an integral part of this statement. 17
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 1- Summary of Significant Accounting Policies
The financial statements of the Tampa Bay Regional Planning Council (the "Council") 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.
Criteria for determining if other entities are potential component units that should be reported within
the Council's basic financial statements are identified and described in GASB's Codification to
Governmental Accounting and Financial Reporting Standards, Sections 2100 and 2600. The
application of these criteria provides for identification of any entities for which the Council is financially
accountable and other organizations for which the nature and significance of their relationship with the
Council are such that exclusion would cause the Council's financial statements to be misleading or
incomplete.
Based on the application of these criteria, the following component unit is included within the Council's
reporting entity:
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, 2010.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 1- Summary of Significant Accounting Policies (continued)
B - Basis of Presentation - Basis of Accounting
Basis of Presentation
Government-wide Statements: The statement of net assets and the statement of activities report
information on the primary government. These statements distinguish between the governmental
activities, generally 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. 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 Accountinq
Government-wide Financial Statements: The government-wide financial statements are reported
using the economic resources measurement focus and the accrual basis of accounting. Revenue is
recognized when earned and expenses are recognized when incurred, regardless of the timing of
related cash flows. 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 are recognized in the fiscal year in which all eligibility requirements have been
satisfied.
General Fund Financial Statements. The general fund is accounted for using a flow of 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.
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.
19
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 1- Summary of Significant Accounting Policies (continued)
C - Budgetary Data
An annual budget is adopted for the general fund
fiscal year end. All annual appropriations lapse
amendments are made to the budget as necess
project activity level.
by the Council at the June meeting preceding the
at the fiscal year end. Mid-year and year-end
ry. The budget is prepared and controlled at the
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 modified accrual 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 (SBA) 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 cost.
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
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. As of September 30, 2010, the total accumulated sick leave pay benefit
was $357,134 for all employees. Of this amount, an accrual representing vested benefits of $85,754
has been reported in the government-wide financial statements at September 30, 2010.
20
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 1- Summary of Significant Accounting Policies (continued)
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, 2010, accrued vacation payable of
$65,088 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, 2010 accrued salary-related
payments totaling $22,194 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.
Unearned Revenue
Unearned revenue represents payments for programs received in advance of the service being
performed.
Employee 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 an 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, 2010 areas follows:
Leave benefit costs allocated $ 188,159
In-service salaries $ 931,894
Actual rate 20.19%
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, $1,120,053 as 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.
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, 2010 are as follows:
21
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 1- Summary of Significant Accounting Policies (continued)
Fringe benefit costs allocated $ 329,762
Organizational salaries $1,120,053
Actual rate 29.44%
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, 2010 are as follows:
Indirect cost allocated (including $ 74,407
depreciation of $34,961)
Organizational salaries plus fringe
benefits costs allocated $1,449,815
Actual rate 5.13%
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, 2010.
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. There were no restricted net assets at September 30, 2010.
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 expenditures - portion of fund balance that is not expendable and not an
available resource.
22
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 1- Summary of Significant Accounting Policies (continued)
Reserved for specialty license plate expenditures - portion of fund balance reserved for the specialty
license plate program.
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 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, 2010, the book balance of deposits was $1,036,308 and the bank balance was
$1,350,358 The Council's bank balances include insured deposits under FDIC and the remaining
balances are collateralized pursuant to Chapter 280 of the Florida Statutes.
B - Investments
Florida Statutes authorize the Council to invest in the SBA's Local Government Investment Pool,
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.
The Council invests funds throughout the year with the SBA Local Government Surplus Funds Trust
Fund, 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, 2010, the Council had a
balance of $34,636 in the Florida PRIME.
23
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 2 - Deposits and Investments (continued)
Fund B is accounted for using a fluctuating net asset value pool. The fair value factor at September
30, 2010 was .707058094, and the weighted average life (based on expected cash flows) of Fund B
investments is 7.49 years at September 30, 2010. 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, 2010, the Council
had a Fund B balance of $62,009 that was recorded at a fair value of $41,077.
Interest Rate Risk - TBRPC has no specific policy regarding interest rate risk.
Note 3 - Receivables - Allowance for Doubtful Accounts
At September 30, 2010, 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, 2010, were as follows:
Accounts payable $ 174,628
Accrued payroll and related liabilities 33,426
Other 9,991
$ 218,045
24
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 5 - Capital Assets
Capital asset activity for the year ended September 30, 2010 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated
Land
Capital assets being depreciated:
Equipment, furniture and fixtures
Landscaping
Building components
Building
$ 470,041 $ - $ - $ 470,041
405,242 3,777 (14,930) 394,089
55,195 - - 55,195
286,570 - - 286,570
1,874,805 - - 1,874,805
Total capital assets being
depreciated 2,621,812 3,777 (14,930) 2,610,659
Less accumulated depreciation for:
Equipment, furniture and fixtures (298,372) (34,961) 14,930 (318,403)
Landscaping (20,852) (3,680) - (24,532)
Building components (111,318) (19,786) - (131,104)
Building (264,809) (46,895) - (311,704)
Total accumulated depreciation
Total capital assets being
depreciated, net
Governmental activities capital
assets, net
(695,351) (105,322) 14,930 (785,743)
1,926,461 (101,545) - 1,824,916
$ 2,396,502 $ (101,545) $ - $ 2,294,957
Depreciation was charged to the following functions:
General government
Financial and administration $ 21,064
Comprehensive planning 55,992
Public safety 19,203
Physical environmental 9,063
Total $ 105,322
25
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 6 - Unearned Revenue
Unearned revenues in the government-wide and fund financial statements at September 30, 2010
were as follows:
Development Regional Impact
application fees $ 100,889
Advance - grants and contracts 72,848
Other 2,000
$ 175,737
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:
2011 $ 20,684
2012 20,684
2013 20,231
$ 61,599
Total rental expense for all operating lease agreements for the year ended September 30, 2010 was
$21,162
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
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
26
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
Note 8 - Pension Plan (continued)
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 $1,107,573 for the year ended
September 30, 2010. The Council's total payroll for the same period was $1,120,053. The Council's
contribution to the System plan for the years ended September 30, 2010, 2009, and 2008 were
$121,294, $126,738, and $127,681 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, and other revenues. For the current year, principal and interest paid was
$210,935 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
2011 $ 131,228
2012 136,083
2013 141,543
2014 147,004
2015 152,676
2016-2020 856,181
2021-2023 597,274
$ 2,161,989
$ 79,706
74,852
69,392
63,930
58,258
198,491
35,529
$ 580,158
$ 210,934
210,935
210,935
210,934
210,934
1,054,672
632,803
$ 2,742,147
27
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30, 2010
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 Note.
A summary of changes in long-term liabilities follows:
Balance Balance
October 1, September 30, Current
2010 Additions Reductions 2010 Portion
Compensated absences $ 169,799 $133,001 $ (129,764) $ 173,036 $ -
Note payable - Series 2008 2,288,345 - (126,356) 2,161,989 131,228
$2,458,144 $133,001 $ (256,120) $ 2,335,025 $131,228
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.
28
Report of Independent Certified Public Accountants on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance With Gever=entAuditiag
standards
Tampa Bay Regional Planning Council
Pinellas Park, 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,
2010, which collectively comprise the Council's basic financial statements, and have issued our report
thereon dated February 14, 2011. 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 deficiency in internal control 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 and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected, on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control
over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses.
We did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
30
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 14, 2011.
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 14, 2011
31
Report of Independent Certified Public Accountants on Compliance with
Requirements That Could Have a Direct and Material Effect on Each Major
Program and on Internal Control Over Compliance in Accordance with OMB
Circular A-133
Tampa Bay Regional Planning Council
Pinellas Park, Florida
Compliance
We have audited Tampa Bay Regional Planning Council's (the "Council") compliance with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB) CircularA-
133 Compliance Supplement that could have a direct and material effect on each of the Council's
major federal programs for the year ended September 30, 2010. The Council's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and
grants applicable to each of its major federal programs is the responsibility of the Council's
management. Our responsibility is to express an opinion on the Council's compliance based on our
audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in
the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An
audit includes examining, on a test basis, evidence about the Council's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does
not provide a legal determination of the Council's compliance with those requirements.
In our opinion, the Council complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for
the year ended September 30, 2010.
32
Internal Control Over Compliance
Management of the Council is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the Council's internal control over
compliance with the requirements that could have a direct and material effect on a major federal
program to determine the 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, but not for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the
Council's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
This report is intended solely for the information and use of the budget committee, Council members,
management, and federal awarding agencies, and is not intended to be and should not be used by
anyone other than these specified parties.
Tampa, Florida
February 14, 2011
33
TAMPA BAY REGIONAL PLANNING COUNCIL
Schedule of Expenditures of Federal Awards
September 30, 2010
Federal Grantor/ Federal
Pass through Grantor/ CFDA
Program Title Number
U.S. Department of Commerce
Direct Programs
Economic Adjustment Assistance 11.307
Economic Development District 11.302
Total U.S. Department of Commerce
U.S. Department of Homeland Security
Passed through Florida Division of Emergency
Management
Homeland Security Grant Program 97.067
Emergency Management Performance Grants 97.042
Total U.S. Department of Homeland Security
U.S. Department of Transportation
Passed through Florida Department of Community
Affairs
Interagency Hazardous Materials Public
Sector Training and Planning Grants 20.703
Total U.S. Department of Transportation
Total Federal Awards
Grant/
Contract
Number Expenditures
04-69-06169, $ 331,510
04-69-06337
04-83-06025 65,060
396,570
09-DS-51-13-00-21-357, 72,058
10-DS-39-13-00-21-300
10-PR-24-13-00-22-001,
10-PR-41-13-00-22-417 181,672
253,730
314-400-000-003 59,969
59,969
$ 710,269
34
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to the Schedule of Expenditures of Federal Awards
September 30, 2010
Note 1- Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Tampa Bay Regional Planning Council (the "Council") and is presented on the modified accrual basis
of accounting. The information in this schedule is presented in accordance with accounting principles
generally accepted in the United States of America as applicable to governmental units and the
requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations.
Note 2 - Contingencies
Expenditures incurred by the Council associated with the execution of various grants are subject to
audit and possible disallowance by the grantor agency. The Council would be held responsible for
recovery (reimbursement to the grantor agency) of disallowed amounts. Management believes that, if
audited, any adjustment for disallowed expenses would be immaterial in amount.
35
TAMPA BAY REGIONAL PLANNING COUNCIL
Schedule of Findings and Questioned Costs
September 30, 2010
A. Summary of Audit Results
The report of independent certified public accountants expresses an unqualified opinion on the
financial statements.
No significant deficiencies were reported during the audit of the financial statements.
No instances of noncompliance material to the financial statements were reported during the audit.
No significant deficiencies were reported during the audit of the major federal award programs and
state projects.
The auditor's report on compliance for the major federal award programs and state projects
expresses an unqualified opinion.
There were no audit findings relative to the major federal award programs.
The programs tested as major programs were:
CFDA # Federal Program
11.307 U.S. Department of Commerce
Economic Adjustment Assistance
97.042 U.S. Department of Homeland Security
Emergency Management Performance Grants
The threshold for distinguishing Types A and B programs/projects was $300,000 for federal
awards.
Tampa Bay Regional Planning Council was not considered a low-risk auditee pursuant to OMB
Circular A-133.
Findings - Financial Statements Audit
None.
Findings and Questioned Costs - Major Federal Award Programs
None.
Prior Year Findings and Questioned Costs - Major Federal Award Programs
None.
36
Independent Auditors' Management Letter
Tampa Bay Regional Planning Council
Pinellas Park, 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,
2010, and have issued our report thereon dated February 14, 2011.
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 Report of
Independent Certified Public Accountants 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, our Report of Independent Certified Public Accountants on
Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program
and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and the Schedule
of Findings and Questioned Costs. Disclosures in these reports, which are dated February 14, 2011,
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 control deficiency.
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.
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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 comment with recommendation 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, 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. Our comparison of the financial report filed with the Department of
Financial Services to the Council's 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.
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.
Cj&?,
Tampa, Florida
February 14, 2011
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TAMPA BAY REGIONAL PLANNING COUNCIL
Appendix A - Management Letter Comments
September 30, 2010
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, 2010, 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:
Internal Control :
Criteria: Per TBRPC policies all employee time sheets should be signed by the employee and
should be approved by their supervisor.
Condition: We noted that through review of payroll files there was a timesheet that did not have
proper approval per TBRPC policies.
Recommendation: The Council should initiate proper supervisory approval of all employee time
sheets.
Management response: The management of the Council is responsible for establishing and
maintaining a system of internal accounting control. The objective of the system is to provide
reasonable assurances that assets are safeguarded against loss from unauthorized use, and that
transactions are executed in accordance with generally accepted accounting principles. As part
of this system, it is the Council's policy to make sure that all timesheets have been approved by
the employee's supervisor. During the fiscal year ending September, 30, 2010, one timesheet
was not signed by the appropriate supervisor. This was simply an oversight. In the future every
effort will be made to make sure that all timesheets are approved by the appropriate supervisor.
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TAMPA BAY REGIONAL PLANNING COUNCIL
Appendix B - Summary Schedule of Prior Audit Findings
September 30, 2010
Financial Statement Finding - Deficiency
Finding 2009-1: 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: 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: 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 were no issues noted with deferred revenue in the current year.
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