TAMPA BAY REGIONAL PLANNING COUNCIL FINANCIAL AND COMPLIANCE REPORTS FOR YEAR ENDING SEPTEMBER 30, 2011 Memorandum
1±:(11;;miumulmm 4000 Gateway Centre Boulevard, Suite 100
Pinellas Park, FL 33782
Tampa Bay Regional Planning Council Phone (727) 570-5151 /FAX (727) 570-5118
RECEIVED
To: Elected Officials and Administrators
Regional Planning Council Executive Directors APR 0 2 2012
From: Mr. Andy Nunez, Secretary/Treasurer OFFICIAL RECORDS AND
LEGISLATIVE SRVCS DEPT
Subject: Transmittal of Fiscal Year 2011 Audit
Date: March 30, 2012
Attached is a copy of the financial audit of the Tampa Bay Regional Planning Council for the
period ended September 30, 2011.
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
Financial and Compliance Reports
For the Year Ended September 30,2011
TAMPA BAY REGIONAL PLANNING COUNCIL
Table of Contents
Page
Report of Independent Certified Public Accountants 1 -2
Management's 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 - 29
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 Its Major Federal Program and on Internal Control over
Compliance in Accordance with OMB Circular A-133 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 Certified Public Accountants Management Letter 37 - 38
Appendix A— Management Letter Comments 39
Appendix B—Summary Schedule of Prior Audit Findings 40
CHERRY
BEI<AERT&
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CFR'(11 IT'U PURI-IC
1,( (II F'I:AN]S&
CONS I.I TA NTS
Report of Independent Certified Public Accountants
To the Council Members
Tampa Bay Regional Planning Council
Pinellas Park, Florida
We have audited the accompanying financial statements of the governmental activities and the
general fund of the Tampa Bay Regional Planning Council (the "Council"), as of and for the year
ended September 30, 2011, 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 opinions 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 general fund of the Council as of
September 30, 2011, 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.
As discussed in Note 1 and 11 to the financial statements, the Council adopted the provisions of
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, during
the year ended September 30, 2011.
In accordance with Government Auditing Standards, we have also issued our report dated February
13, 2012 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 basic 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 basic financial
statements. The schedule of expenditures of federal awards is the responsibility of management and
was derived from and relates 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 basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic 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 basic financial
statements as a whole.
Cge,t,t,
Tampa, Florida
February 13, 2012
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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, 2011. 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 $1,652,457 (net
assets).
• The government's total net assets decreased by $40,482 due to a decrease in operating grants &
contributions.
• At the end of the current fiscal year, the total non-restricted fund balance for the General Fund
was $1,534,848, or 54.9 percent of total general fund expenditures for the fiscal year. The non-
restricted fund balance consists of $35,658 that is nonspendable, $823,007 that is assigned and
$676,187 that is unassigned.
• The Council's total long term liabilities decreased by $134,706 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 gauge 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 are 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 -29 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)
2011 2010
Current and other assets $1,937,431 $2,126,789 $ (189,358)
Capital assets 2,201,997 2,294,957 (92,960)
Total assets 4,139,428 4,421,746 (282,318)
Current and other liabilities 417,880 525,010 (107,130)
Long-term liabilities outstanding 2,069,091 2,203,797 (134,706)
Total liabilities 2,486,971 2,728,807 (241,836)
Net assets:
Invested in capital assets,
net of related debt 237,584 132,968 104,616
Restricted for specialty license
plate related expenditures 54,433 60,673 (6,240)
Unrestricted 1,360,440 1,499,298 (138,858)
Total net assets $1,652,457 $1,692,939 $ (40,482)
The decrease in current and other assets is offset by the decrease 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 Increase
2011 2010 (Decrease)
Revenues:
Program revenues:
Charges for services $ 658,796 $ 720,657 $ (61,861)
Operating grants and contributions 928,632 1,065,135 (136,503)
General revenues:
Membership dues 913,858 916,612 (2,754)
Rental income 182,246 181,974 272
Interest 7,707 9,357 (1,650)
Miscellaneous 32,311 32,199 112
Total revenues 2,723,550 2,925,934 (202,384)
Functions/Program Expenses:
Financial and administration 203,030 232,513 (29,483)
Comprehensive planning 1,662,180 1,483,312 178,868
Public safety 411,140 537,972 (126,832)
Physical environmental 402,687 326,347 76,340
Debt service-interest and debt
service amortization 84,995 89,880 (4,885)
Total functions/program expenses 2,764,032 2,670,024 94,008
Change in net assets $ (40,482) $ 255,910 $ (296,392)
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TAMPA BAY REGIONAL PLANNING COUNCIL
Management's Discussion and Analysis
Governmental*thy Ries-Revenue Mit
Operating Grants&
Contributions 34%
lk -ErploalkultiO �
Debt Smiles-tamest&Am t
MVO
a
Physical Emdrorunent
Public Safety
15%
Net assets may serve over time as one useful indicator of a government's financial condition. The
Council's net assets decreased by $40,482 for the fiscal year ended September 30, 2011. The
decrease is primarily due to the following:
• Decreases in federal and state grants and local contracts,
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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,
unassigned fund balance of the General Fund was $711,831. The total assigned fund balance of the
General Fund was $823,007 which represents amounts assigned by the board for specific purposes.
Balance Sheet
Figure 4
Governmental Funds Increase
2011 2010 (Decrease)
Current and other assets $ 1,871,078 $2,054,878 $ (183,800)
Liabilities and fund balance
Liabilities 281,797 393,782 (111,985)
Fund balance:
Nonspendable 35,658 39,895 (4,237)
Restricted 54,433 60,673 (6,240)
Assigned 823,007 664,895 158,112
Unassigned 676,183 895,633 (219,450)
Total 1,589,281 1,661,096 (71,815)
Total liabilities and fund balance $ 1,871,078 $2,054,878 $ (183,800)
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 $168,534. The
increase is mainly due to additional federal 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, 2011 totals $2,201,997, net of accumulated depreciation of $885,921. These assets
include land of $470,041, building of $1,516,204 (net), building components of $135,677 (net),
landscaping of$26,984 (net), and equipment, furniture and fixtures of$53,091 (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 4 of the basic financial
statements.
Long-Term Debt- As of September 30, 2011 the Council's long term obligations consisted of a note
payable for $2,030,766 and accrual for compensated absences of $174,408. 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 2011/2012 budget:
• The increase of 3.9% in the CPI for the last twelve months provides less of a positive impact in
keeping operating costs at a manageable level compared to the past several years.
• Interest income is expected to remain unchanged for 2012.
• The Council's per capita dues rate was reduced to $.295 from $.30. This calculates to a $535
decrease as compared to the prior year's assessment. The Council has been able to absorb any
increased costs through contract and grant awards.
• The Regional Planning Council was not funded by the Department of Community Affairs for the
state fiscal year ending June 30, 2012. The Council is hopeful that the funding will be renewed for
the next fiscal year.
Budget Highlights for the Fiscal Year Ending September 30,2012
Several changes to programs will impact the Council's 2011/2012 budget:
• Several programs completed in 2010/2011 will not impact the 2011/2012 budget. They
include: Florida Disaster Housing, Disaster Recovery Guide, Post Disaster Redevelopment
Plan II, and Economic Analysis & Disaster Resiliency. These programs accounted for
$167,000 of funding in 2010/2011.
• Several new programs will impact the 2012 budget. These include: Statewide Regional
Evacuation Study II and Energy Resiliency Strategy. These programs will account for
$511,000 of funding.
The initial 2011/2012 budget anticipated approximately $3,701,000 in expenditures. Additionally,
several programs not anticipated in the initial budget will impact the 2012 budget. The funding level of
these programs for 2012 will be approximately $129,000.
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 30,2011
Assets
Cash $ 1,374,613
Investments 81,619
Receivables:
Federal and state grants 226,346
Local government 94,095
Other receivables 4,314
Prepaid expenses, inventory, and other assets 102,011
Capital assets, net of accumulated depreciation 2,201,997
Restricted cash 54,433
Total assets 4,139,428
Liabilities
Accounts payable and accrued liabilities 166,295
Unearned revenue 115,502
Long-term liabilities:
Due within one year 136,083
Due in greater than one year 2,069,091
Total liabilities 2,486,971
Net assets
Invested in capital assets, net of related debt 237,584
Restricted for specialty license plate expenditures 54,433
Unrestricted 1,360,440
Total net assets $ 1,652,457
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 30,2011
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 $ 203,030 $ 40,280 $ - $ (162,750)
Comprehensive planning 1,662,180 306,760 686,578 (668,842)
Public safety 411,140 181,712 166,980 (62,448)
Physical environment 402,687 130,044 75,074 (197,569)
Debt service-interest and debt
service amortization 84,995 - - (84,995)
Total governmental activities 2,764,032 658,796 928,632 (1,176,604)
Total primary government $2,764,032 $ 658,796 $ 928,632 (1,176,604)
General revenues:
Membership dues 913,858
Rental income 182,246
Interest 7,707
Miscellaneous 32,311
Total general revenues 1,136,122
Change in net assets (40,482)
Net assets-beginning 1,692,939
Net assets-ending $ 1,652,457
The notes to the financial statements are an integral part of this statement. 12
TAMPA BAY REGIONAL PLANNING COUNCIL
Balance Sheet
General Fund
September 30,2011
Assets
Cash $ 1,374,613
Investments 81,619
Receivables:
Federal and state grants 226,346
Local government 94,095
Other receivables 4,314
Prepaid expenditures and inventory 35,658
Restricted cash 54,433
Total assets $ 1,871,078
Liabilities and fund balances
Liabilities:
Accounts payable and accrued liabilities $ 166,295
Deferred revenues 115,502
Total liabilities 281,797
Fund balances:
Nonspendable
Prepaid expenditures and inventory 35,658
Restricted:
Specialty license plate expenditures 54,433
Assigned
Future year budgetary deficit 150,490
Compensated employee absences 175,922
Grant matching funds 221,595
Development of regional
impact and other council activities 25,000
Long term building renewal and replacement 250,000
Unassigned 676,183
Total fund balances 1,589,281
Total liabilities and fund balances $ 1,871,078
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 the General Fund to the
Statement of Net Assets
September 30,2011
Total fund balance - General Fund $ 1,589,281
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. 2,201,997
Debt issuance costs are not available to pay for current-period 66,353
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 $ (174,408)
Note payable (2,030,766) (2,205,174)
Total net assets - Governmental Activities $ 1,652,457
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 30,2011
Revenues
Federal grants $ 673,579
State grants 259,173
Membership dues 913,858
Fees/contracts 612,796
In-kind revenues 41,880
Other revenues 32,311
Interest 7,707
Rental income 182,246
Total revenues 2,723,550
Expenditures
Current:
General government:
Finance and administration 183,322
Comprehensive planning 1,649,171
Public safety 407,976
Physical environment 337,016
Capital outlay 7,217
Debt service:
Interest 79,440
Principal 131,223
Total expenditures 2,795,365
Deficiency of revenues
under expenditures (71,815)
Fund balance - beginning 1,661,096
Fund balance -ending $ 1,589,281
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 30,2011
Net change in fund balances -total General Fund $ (71,815)
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$100,177 exceeded capital outlay of
$7,217 in the current period. (92,960)
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. 131,223
In the statement of activities, debt issuance costs are amortized over the
life of the related debt. (5,558)
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. (1,372)
Change in net assets of governmental activities $ (40,482)
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 30,2011
Variance
With Final
Original Final Positive
Budget Budget - Actual (Negative)
Revenues
Federal grants $ 512,294 $ 678,863 $ 673,579 $ (5,284)
State grants 316,662 258,764 259,173 409
Membership dues 913,858 913,858 913,858 -
Fees/contracts 557,168 591,048 612,796 21,748
Other revenues 31,723 45,979 32,311 (13,668)
In-kind revenues 25,025 39,777 41,880 2,103
Interest 9,600 9,600 7,707 (1,893)
Rental income 185,272 182,247 182,246 (1)
Total revenues 2,551,602 2,720,136 2,723,550 3,414
Expenditures
Current:
Direct personnel service 1,420,174 1,441,958 1,446,992 (5,034)
Indirect costs 55,185 45,185 35,337 9,848
Other direct costs
Publications, subscriptions and dues 32,200 33,680 33,596 84
Travel/conferences 52,700 61,767 62,599 (832)
Legal expenses 31,050 33,207 28,249 4,958
Printing/graphics 57,485 53,230 50,321 2,909
Contract services/consultants 462,530 663,050 640,031 23,019
Occupancy costs 132,617 132,617 74,253 58,364
Equipment lease/maintenance 79,177 79,465 77,720 1,745
Auditing 21,000 23,000 23,001 (1)
Other operating expenditures 82,344 86,049 63,506 22,543
Administrative in-kind 25,025 39,777 41,880 (2,103)
Capital outlay 10,000 7,500 7,217 283
Debt service:
Interest 79,440 79,440 79,440 -
Principal 131,228 131,228 131,223 5
Total expenditures $ 2,672,155 $ 2,911,153 2,795,365 $ 115,788
Deficiency of revenues
under expenditures (71,815)
Fund balance-beginning 1,661,096
Fund balance-ending $ 1,589,281
The notes to the financial statements are an integral part of this statement. 17
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
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, 2011.
18
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
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 Accounting
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 30,2011
Note 1-Summary of Significant Accounting Policies(continued)
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. Mid-year 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 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, 2011, the total accumulated sick leave pay benefit
was $373,851 for all employees. Of this amount, an accrual representing vested benefits of$92,898
has been reported in the government-wide financial statements at September 30, 2011.
20
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
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, 2011, accrued vacation payable of
$60,830 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, 2011 accrued salary-related
payments totaling $20, 680 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.
In-kind Revenue
The Council records in-kind revenue and expense if the services create or enhance long-lived assets
or require specialized skills, are provided by individuals possessing those skills, and would typically
need to be purchased.
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.
1. 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, 2011 are as follows:
Leave benefit costs allocated $ 187,834
In-service salaries $ 927,603
Actual rate 20.25%
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, $1,115,437 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.
21
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 1 -Summary of Significant Accounting Policies(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, 2011 are as follows:
Fringe benefit costs allocated $ 335,528
Organizational salaries $1,115,437
Actual rate 30.08%
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, 2011 are as follows:
Indirect cost allocated (including $ 65,152
depreciation of$29,816)
Organizational salaries plus fringe
benefits costs allocated $1,450,965
Actual rate 4.49%
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, 2011.
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. Restricted net assets represent constraints on resources that are either externally imposed
by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law
through state statute.
22
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 1 -Summary of Significant Accounting Policies(continued)
Fund Balances
For fiscal year 2011, the Council implemented Government Accounting Standards Board (GASB) No.
54, Fund Balance Reporting and Governmental Fund Type Definitions. In the fund financial
statements, fund balances for governmental funds is reported in classifications that comprise the
limitations on the fund. The fund balance is reported in five components - nonspendable, restricted,
committed, assigned and unassigned.
Nonspendable includes amounts that cannot be spent because they are either not in spendable form
or are legally or contractually bound. Restricted consists of amounts that have constraints placed on
them either externally by third-parties (creditors, grantors, contributors, or laws or regulations of other
governments) or by law. Committed consists of amounts that can only be used for specific purposes
pursuant to constraints imposed by formal action of the Council. Assigned consists of amounts that
are constrained by the Council's intent to be used for specific purposes, but are neither restricted nor
committed. The authority for assigning fund balance is expressed by the Council Board. Unassigned
represents amounts that have not been restricted, committed or assigned to specific purposes within
the general fund.
The Council would typically use Restricted fund balance first, followed by Committed resources and
then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively
spend Unassigned resources first to defer the use of these other classified funds.
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.
Subsequent Events
The Council has evaluated subsequent events from October 1, 2011 to February 13, 2012 in
connection with the preparation of these financial statements, which is the date the financial
statements were available to be issued.
Note 2-Deposits and Investments
A-Deposits and Concentration of Credit Risk
At September 30, 2011, the book balance of deposits was $1,429,046 and the bank balance was
$1,451,450. 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.
23
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 2-Deposits and Investments(continued)
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, 2011, the Council had a
balance of$46,698 in the Florida PRIME.
Fund B is accounted for using a fluctuating net asset value pool. The fair value factor at September
30, 2011 was .7568386, and the weighted average life (based on expected cash flows) of Fund B
investments is 4.82 years at September 30, 2011. 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, 2011, the Council
had a Fund B balance of$46,140 that was recorded at a fair value of$34,921.
Interest Rate Risk-TBRPC has no specific policy regarding interest rate risk.
Note 3-Receivables-Allowance for Doubtful Accounts
At September 30, 2011, there was no allowance for doubtful accounts since all receivables were
considered to be collectible.
24
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 4-Capital Assets
Capital asset activity for the year ended September 30, 2011 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land $ 470,041 $ - $ - $ 470,041
Capital assets being depreciated:
Equipment, furniture and fixtures 394,090 7,217 - 401,307
Landscaping 55,195 - - 55,195
Building components 286,570 - - 286,570
Building 1,874,805 - - 1,874,805
Total capital assets being
depreciated 2,610,660 7,217 - 2,617,877
Less accumulated depreciation for:
Equipment, furniture and fixtures (318,401) (29,815) - (348,216)
Landscaping (24,532) (3,679) - (28,211)
Building components (131,106) (19,787) - (150,893)
Building (311,705) (46,896) - (358,601)
Total accumulated depreciation (785,744) (100,177) - (885,921)
Total capital assets being
depreciated, net 1,824,916 (92,960) - 1,731,956
Governmental activities capital
assets, net $2,294,957 $ (92,960) $ - $2,201,997
Depreciation was charged to the following functions:
General government
Financial and administration $ 20,035
Comprehensive planning 15,027
Public safety 51,090
Physical environmental 14,025
Total $ 100,177
25
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 5-Accounts Payable and Accrued Liabilities
Accounts payables and accrued liabilities at September 30, 2011, were as follows:
Accounts payable $ 94,844
Accrued payroll and related liabilities 61,730
Other 9,721
$ 166,295
Note 6-Unearned Revenue
Unearned revenues in the government-wide and fund financial statements at September 30, 2011
were as follows:
Development Regional Impact application fees $ 94,065
Advance - grants and contracts 19,437
Other 2,000
$ 115,502
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:
2012 $ 20,684
2013 20,231
2014 2,223
$ 43,138
Total rental expense for all operating lease agreements for the year ended September 30, 2011 was
$20,684.
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.
26
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 8-Pension Plan(continued)
Benefits are established by Chapter 121, Florida Statutes, and Chapter 22B, Florida Administrative
Code. Effective July 1, 2011, the Florida Legislature passed Senate Bill 2100 making changes to the
FRS. Benefits are computed on the basis of age, average final compensation, and service credit.
Plan members hired prior to July 1, 2011 with 30 years of service regardless of age or at age 62 with
6 years of credited service are entitled to an annual retirement benefit payable monthly for life, equal
to 1.6% of their final average compensation for each year of credited service. Average final
compensation is the average of the employee's five highest fiscal years of salary earned during
credited service. Vested employees with less than 30 years of service may retire before age 62 and
receive reduced retirement benefits.
Plan members hired on or after July 1, 2011 with 33 years of service regardless of age or at age 62
with 8 years of credited service are entitled to annual retirement benefits payable monthly for life,
equal to 1.6%of their final average compensation for each year of credited service. Average final
compensation will be the average of the employee's eight highest fiscal years earned during credited
service. Vested employees with less than 33 years of service may retire before age 62 and receive
reduced retirement benefits.
The Council has no responsibility to the System other than to make the periodic payments required by
state statutes. Beginning July 1, 2011 all plan members (except those in Deferred Retirement Option
Program) will make a 3% employee contribution on a pretax basis. Governmental employers are
required to make contributions to the FRS based on actuarially determined statewide contribution
rates.
The following are the contribution rates after rates changes, which became effective July 1, 2011. The
rate applied to regular employee salaries was 4.91%. The rate includes a 1.11% health insurance
subsidy. Total payroll for the Council employees covered by the system was approximately
$1,107,454 for the year ended September 30, 2011. The Council's total payroll for the same period
was $1,115,437. The Council's contribution to the System plan for the years ended September 30,
2011, 2010, and 2009 were $108,754, $121,294, and $126,738 respectively. These amounts are
equal to the required contribution for each year.
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, 2010. 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
$210,663 and total pledged revenue was approximately $1.8 million.
27
•
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 9-Long-Term Liabilities(continued)
The future debt service requirements of the Revenue Note, Series 2008 are as follows:
Fiscal
Year Principal Interest Total
2012 $ 136,083 $ 74,852 $ 210,935
2013 141,543 69,392 210,935
2014 147,005 63,930 210,935
2015 152,677 58,258 210,935
2016 158,421 52,514 210,935
2017-2021 889,364 165,308 1,054,672
2022-2023 405,673 16,198 421,871
$2,030,766 $ 500,452 $2,531,218
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 2011 Portion
Compensated absences $ 173,036 $134,151 $(132,779) $ 174,408 $ -
Note payable - Series 2008 2,161,989 - (131,223) 2,030,766 136,083
$2,335,025 $134,151 $(264,002) $ 2,205,174 $136,083
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
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to Financial Statements
September 30,2011
Note 11-Fund Balance
The Council's fund balance consists of the following categories.
(a) Nonspendable - this classification includes amounts that cannot be spent because they are
not in spendable form, such as prepaid expenses and inventory.
(b) Restricted for specialty license plate expenditures - portion of fund balance reserved for the
specialty license plate program. Expenditures are made according to Florida Statutes
320.08056 and 320.08058.
(c) Assigned for future budgetary years' deficit- the fiscal 2011 Budget Resolution appropriated
the amount of $150,490 from the fiscal 2011 fund balance for expenditures authorized in
excess of anticipated revenue during fiscal year 2012.
(d) Assigned for compensated employee absences- portion of the fund balance not available for
appropriation because it represents the year-end fund balance reserved for expenditures
related to employee compensated absences.
(e) Assigned for grant matching funds- portion of the fund balance not available for appropriation
because it represents the year-end fund balance reserved for expenditures related to fiscal
year 2012 grant matching requirements.
(t) Assigned for development of regional impact and other council activities - portion of the fund
balance not available for appropriation because it represents the year-end fund balance
reserved for expenditures related to the development of regional impact studies and other
council activities for fiscal year 2012.
(g) Assigned for long term building renewal and replacement - portion of the fund balance not
available for appropriation because it represents the year-end fund balance reserved for
expenditure for future building repairs and replacements.
(h) Unassigned-This classification includes the residual fund balance for the general fund.
29
Grant Compliance
CHERRY
BEKAERT&
HOLLAND
(FRTIFIFF)FURI-FC
('UUAT:AN SS&
CONSLIToNTS
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
To the Council Members
Tampa Bay Regional Planning Council
Pinellas Park, Florida
We have audited the financial statements of the governmental activities and the general fund of the
Tampa Bay Regional Planning Council (the "Council") as of and for the year ended September 30,
2011, which collectively comprise the Council's basic financial statements, and have issued our report
thereon dated February 13, 2012. 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
Management of the Council is responsible for establishing and maintaining effective 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 13, 2012.
This report is intended 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.
CMAA, atiteZt- /4'1414 4. . , P.
Tampa, Florida
February 13, 2012
31
CHERRY
BEKAERT&
HOLLAND
CFRTIFILr)F rc-
ACC) N RANTS A
CONSULTANTS
Report of Independent Certified Public Accountants on Compliance with
Requirements That Could Have a Direct and Material Effect on Its Major Program
and on Internal Control Over Compliance in Accordance with OMB Circular A•133
To the Council Members
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) Circular A-
133 Compliance Supplement that could have a direct and material effect on the Council's major
federal program for the year ended September 30, 2011. The Council's major federal program is
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 its major federal program 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,
Audits of States, Local Governments, and Non-Profit Organizations. 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 its major federal program for the year
ended September 30, 2011.
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.
CAA, 1a.z,a.. (1- IN(crleorot G. . L.P.
Tampa, Florida
February 13, 2012
33
TAMPA BAY REGIONAL PLANNING COUNCIL
Schedule of Expenditures of Federal Awards
September 30,2011
TAMPA BAY REGIONAL PLANNING COUNCIL
Schedule of Expenditures of Federal Awards
September 30,2011
Federal Grantor/ Federal Grant/
Pass through Grantor/ CFDA Contract
Program Title Number_ Number Expenditures
U.S. Department of Commerce
Direct Programs
Economic Adjustment Assistance 11.307 04-69-06169, $ 368,291
04-69-06337
Economic Development-Support for
Planning Organizations 11.302 04-83-06025 63,288
Coastal Zone Management 11.419 04-83-06493 60,000
Total U.S. Department of Commerce 491,579
U.S. Department of Homeland Security
Passed through Florida Division of Emergency
Management
Homeland Security Grant Program 97.067 09-DS-51-13-00-21-357, 77,126
10-DS-39-13-00-21-300
Emergency Management Performance Grants 97.042 10-PR-24-13-00-22-001,
10-PR-41-13-00-22-417 39,500
Hazard Mitigation Grant 97.039 11HS-4A-08-62-01-488 4,300
Total U.S. Department of Homeland Security 120,926
U.S. Department of Transportation
Passed through Florida Department of Community
Affairs
Interagency Hazardous Materials Public
Sector Training and Planning Grants 20.703 314-400-000-003 61,074
Total U.S. Department of Transportation 61,074
Total Federal Awards $ 673,579
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 34
TAMPA BAY REGIONAL PLANNING COUNCIL
Notes to the Schedule of Expenditures of Federal Awards
September 30,2011
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 30,2011
Financial Statement Section
Type of auditors' report issued: Unqualified
Internal control over financial reporting:
Material weakness(es) identified? yes x no
Significant deficiency(ies) identified not
considered to be material weakness(es)? yes x none reported
Noncompliance material to financial
statements noted yes x no
Federal Awards Section
Internal control over major programs:
Material weakness(es) identified? yes x no
Significant deficiency(ies) identified not
considered to be material weakness(es)? yes x none reported
Type of auditors' report on compliance for
major programs: Unqualified
Any audit findings disclosed that are
required to be reported in accordance with
section 510(a) of OMB Circular A-133 yes x no
Identification of the major federal programs:
CFDA Numbers Name of Program or Cluster
U.S. Department of Commerce
11.307 Economic Adjustment Assistance
Dollar threshold used to distinguish between type A and type B programs $300,000
Auditee qualified as low-risk auditee? yes x no
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
CHERRY
BEKAERT&
HOLLAND
CFRTIFIPD FURI.IC
A (MINI ANTSE
CONSUL TA SITS
Independent Certified Public Accountants Management Letter
To the Council Members
Tampa Bay Regional Planning Council
Pinellas Park, Florida
We have audited the financial statements of the governmental activities and the general fund of the
Tampa Bay Regional Planning Council (the "Council"), as of and for the year ended September 30,
2011, and have issued our report thereon dated February 13, 2012.
We conducted our audit 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, Audits
of States Local Governments, and Non-Profit Organizations. 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 Its Major Program
and on Internal Control Over Compliance in Accordance with OMB Circular A-133, and Schedule of
Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated
February 13, 2012, 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 governmental entity audits performed in the State of
Florida. This letter includes the following information, which is not included in the aforementioned
auditor's report or schedules.
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 not in compliance with Section 218.415, Florida Statutes, regarding the investment of
public funds.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
37
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 occurred, or are likely to have occurred, that
have an effect on the financial statements that is less than material but more than inconsequential. In
connection with our audit, we did not have any such findings.
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on financial
statements, considering both quantitative and qualitative factors: (1) violations of provisions of
contracts or grant agreements, fraud, illegal acts, or abuse, and (2) deficiencies in internal control 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
this management letter, unless disclosed in the notes to the financial statements. Such disclosure is
included in the notes to the financial statements. There were no component units related to the entity.
Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement as to whether or not the
Council has met one or more of the conditions described in Section 218.503(1), Florida Statutes and
identification of specific conditions met. In connection with our audit, nothing came to our attention
that would cause us to believe that the Council met any of the conditions described in Section
218.503(1), Florida Statutes.
Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the
financial report filed for the Council for the fiscal year ended September 30, 2011 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, 2011. In connection with
our audit, we determined that these two reports were in agreement.
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 management.
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.
01- YI'0-110.,,,t 4, . to.
Tampa, Florida
February 13, 2012
38
TAMPA BAY REGIONAL PLANNING COUNCIL
Appendix A-Management Letter Comments
September 30,2011
In planning and performing our audit of the financial statements of the governmental activities and the
general fund of the Tampa Bay Regional Planning Council (the "Council"), as of and for the year
ended September 30, 2011, 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 purchases and reimbursements to employees should be
properly approved by management.
Condition: We noted through our disbursement testing a reimbursement that showed no sign of
approval.
Recommendation: The Council should initiate proper approval of all purchases and
reimbursements.
Management response: The Council makes every effort to obtain approval of all invoices prior
to processing for payment. Invoices are processed by one staff person and reviewed by a second
staff person. This isolated instance was an oversight.
39
TAMPA BAY REGIONAL PLANNING COUNCIL
Appendix B-Summary Schedule of Prior Audit Findings
September 30,2011
Financial Statement Finding — Deficiency
Finding 2010: Internal Control over Payroll
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.
Current status: There were no issues noted with payroll internal controls in the current year.
40