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TAMPA BAY REGIONAL PLANNING COUNCIL - FINANCIAL STATEMENTS AND COMPLIANCE REPORTSTAMPA BAY REGIONAL PLANNING COUNCIL FINANCIAL STATEMENTS AND COMPLIANCE REPORTS As of and for the Year Ended September 30, 2013 And Reports of Independent Auditor Cherry Bekaert`'' TAMPA BAY REGIONAL PLANNING COUNCIL TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR 1 — 2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 — 9 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements: Statement of Net Position 10 Statement of Activities 11 Fund Financial Statements: Balance Sheet — General Fund 12 Reconciliation of the Balance Sheet of the General Fund to the Statement of Net Position 13 Statement of Revenues, Expenditures and Changes in Fund Balances — General Fund 14 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the General Fund to the Statement of Activities 15 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 16 Notes to Financial Statements 17 — 27 GRANT COMPLIANCE Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 28 — 29 Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A -133 30 — 31 Schedule of Expenditures of Federal Awards 32 Notes to the Schedule of Expenditures of Federal Awards 33 Schedule of Findings and Questioned Costs 34 - 35 Independent Auditor's Management Letter 36 - 37 `•• Cherry Bekaert CPAs & Advisors Report of Independent Auditor To the Council Members Tampa Bay Regional Planning Council Pinellas Park, Florida Report on Financial Statements 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, 2013, and the related notes in the financial statements, which collectively comprise the Council's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2013 and the respective changes in financial position and the respective budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principle As discussed in Note 13 to the basic financial statements, the Council adopted the provisions of Governmental Accounting Standards Board Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and Governmental Accounting Standards Board Statement No. 65, Items Previously Reported as Assets and Liabilities, effective October 1, 2012. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 9 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Council's basic financial statements. 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 basic financial statements. Such 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 10, 2014, 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Council's internal control over financial reporting and compliance. Cie,m4t 6.d4,,Je" Li—e0 Tampa, Florida February 10, 2014 2 TAMPA BAY REGIONAL PLANNING COUNCIL MANAGEMENT'S DISCUSSION AND ANALYSIS As management of Tampa Bay Regional Planning Council financial statements this narrative overview and analysis of year ended September 30, 2013. We encourage readers to with additional information that we have furnished in the narrative. Financial Highlights (the "Council "), we offer readers of the Council's the financial activities of the Council for the fiscal read the information presented here in conjunction Council's financial statements, which follow this • The assets of the Council exceeded its liabilities and deferred inflow of resources at the close of the fiscal year by $1,721,739 (net position). • The government's total net position decreased by $12,086 mainly due to a decrease in charges for services. • At the end of the current fiscal year, the total non - restricted fund balance for the General Fund was $1,261,889 or 35.3 percent of total general fund expenditures for the fiscal year. The non - restricted fund balance consists of $26,173 that is nonspendable, $384,842 that is assigned and $850,874 that is unassigned. • The Council's total long -term liabilities decreased by $147,116 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. Required Components of Annual Financial Report Figure 1 Management's Discussion and Analysis Basic Financial Statements Government -wide Financial Statements Fund Financial Statements Notes to the Financial Statements 3 TAMPA BAY REGIONAL PLANNING COUNCIL MANAGEMENT'S DISCUSSION AND ANALYSIS Basic Financial Statements The first two statements (pages 10 and 11) 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 12 through 16) 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 position and how it has changed. Net position is the difference between the Council's total assets, and total liabilities and deferred inflow of resources. Measuring net position is one way to gauge the Council's financial condition. The government -wide statements include the governmental activities category. The governmental activities include most of the Council's basic services such as council and program activities. Federal and state grants, charges for services and membership dues fund most of these activities. 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 governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a reconciliation that is a part of the fund financial statements. 4 TAMPA BAY REGIONAL PLANNING COUNCIL MANAGEMENT'S DISCUSSION AND ANALYSIS 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 17 through 27 of this report. Government -Wide Financial Analysis The Council's net position for the past two fiscal years is summarized as follows: Current and other assets Capital assets Total assets Current and other liabilities Long -term liabilities outstanding Total liabilities Primary Governmental Activities 2012 Increase 2013 (as restated) (Decrease) $ 1,585,021 2,338,597 3,923,618 280,934 1,919,239 2,200,173 Deferred inflow of resources 1,706 $ 2,261,781 $ (676,760) 2,119,522 219,075 4,381,303 (457,685) 513,510 (232,576) 2,066,355 (147,116) 2,579,865 (379,692) 67,613 (65,907) Net position: Net investment in capital assets 585,428 224,820 360,608 Restricted for specialty license plate related expenditures 40,492 47,918 (7,426) Unrestricted 1,095,819 1,461,087 (365,268) Total net position $ 1,721,739 $ 1,733,825 $ (12,086) The decreases in current and other assets and liabilities are the result of the use of cash to purchase capital assets and a reduction in accounts payable. The increase in capital assets is the result of the current year's capital asset additions, of which the majority was related to a remodel of the Council's building. 5 TAMPA BAY REGIONAL PLANNING COUNCIL MANAGEMENT'S DISCUSSION AND ANALYSIS Government - Wide Financial Analysis (continued) Revenues: Program revenues: Charges for services Operating grants and contributions Governmental Activities 2012 Increase 2013 (as restated) (Decrease) $ 883,511 $ 1,396,958 $ (513,447) 1,274,154 876,925 397,229 General revenues: Membership dues 920,215 913,324 6,891 Rental income 91,964 181,123 (89,159) Interest 3,173 3,512 (339) Miscellaneous 23,271 45,471 (22,200) Total revenues 3,196,288 3,417,313 (221,025) Functions /Program expenses: Financial and administration 281,114 374,185 (93,071) Comprehensive planning 2,355,770 2,222,675 133,095 Public safety 205,094 308,380 (103,286) Physical environmental 297,288 289,777 7,511 Debt service- interest and debt service amortization 69,108 74,575 (5,467) Total functions /program expenses 3,208,374 3,269,592 (61,218) Change in net position $ (12,086) $ 147,721 $ (159,807) 6 TAMPA BAY REGIONAL PLANNING COUNCIL MANAGEMENT'S DISCUSSION AND ANALYSIS Government - Wide Financial Analysis (continued) Governmental Activities - Revenue 2013 Charges for Services 27% Operating Grants & Contributions 40% Governmental Activities - Expenditures 2013 Debt Service - Interest & Amort. 2% 7 TAMPA BAY REGIONAL PLANNING COUNCIL MANAGEMENT'S DISCUSSION AND ANALYSIS Government - Wide Financial Analysis (continued) Net position may serve over time as one useful indicator of a government's financial condition. The Council's net position decreased by $12,086 for the fiscal year ended September 30, 2013. The decrease is primarily due to decreases in charges for services. 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 $850,874. The total assigned fund balance of the General Fund was $384,842 which represents amounts assigned by the board for specific purposes. Balance Sheet Figure 4 Governmental Funds Increase 2013 2012 (Decrease) Current and other assets $ 1,585,021 $ 2,261,781 $ (676,760) Liabilities, deferred inflow of resources and fund balance Liabilities 280,934 513,510 (232,576) Deferred inflow of resources 1,706 67,613 (65,907) Fund balance: Nonspendable 26,173 23,461 2,712 Restricted 40,492 47,918 (7,426) Assigned 384,842 818,567 (433,725) Unassigned 850,874 790,712 60,162 Total 1,302,381 1,680,658 (378,277) Total liabilities, deferred inflow of resources and fund balance $ 1,585,021 $ 2,261,781 $ (676,760) 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 $181,608. The increase is mainly due to additional federal grants. 8 TAMPA BAY REGIONAL PLANNING COUNCIL MANAGEMENT'S DISCUSSION AND ANALYSIS Capital Asset and Debt Administration Capital Assets - The Council's investment in capital assets for its governmental activities as of September 30, 2013 totals $2,338,597, net of accumulated depreciation of $1,080,719. These assets include land of $470,041, building and building improvements of $1,722,911 (net), building components of $96,104 (net), landscaping of $19,625 (net), and equipment, furniture and fixtures of $29,916 (net). 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, 2013, the Council's long -term obligations consisted of a note payable for $1,753,169 and accrual for compensated employee absences of $166,070. Additional information regarding the Council's long -term debt can be found in Note 10 of the basic financial statements. Economic Factors and Next Year's Budgets and Rates The following economic factors will have an impact on the Council's 2013/2014 budget: • The increase of 1.5% in the Consumer Price Index for the last twelve months provides a positive impact in keeping operating costs at a manageable level compared to last year. • Interest income is expected to remain unchanged for 2014. • The Council's per capita dues rate remains at $.295. This calculates to a $7,516 increase as compared to the prior year's assessment. The Council has been able to absorb any increased costs through contract and grant awards. • The Council was not funded by the Department of Economic Opportunity for the state fiscal year ending June 30, 2014. The Council is hopeful that the funding will be renewed for the next fiscal year. Budget Highlights for the Fiscal Year Ending September 30, 2014 Changes to programs that will have a bearing on the Council's 2013/2014 budget: • Several programs completed in 2012/2013 will not impact the 2013/2014 budget. They include: Directional Atlas Pilot, Okeechobee Atlas Update, St. Pete Beach Catalyst Technical Assistance, Standardized Statewide Broadband Planning, GIS Broadband DMS Transition Agreement, and Energy Assurance Strategy. These programs accounted for $808,000 of funding in 2012/2013. • Several new programs will impact the 2014 budget. These include: Broadband Mapping Special Projects, Directional Atlas Project, Economic Evaluation of Tampa Bay and Estuary, and Solar Ready II. These programs will account for $245,000 of funding. The initial 2013/2014 budget anticipated approximately $2,217,000 in expenditures. Several programs not anticipated in the initial budget will impact the 2014 budget. The funding level of these programs for 2014 will be approximately $123,000. 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. 9 TAMPA BAY REGIONAL PLANNING COUNCIL STATEMENT OF NET POSITION SEPTEMBER 30, 2013 ASSETS Cash $ 1,069,525 Investments 95,439 Receivables: Federal and state grants 302,702 Local government 43,615 Other receivables 7,075 Prepaid expenses, inventory, and other assets 26,173 Capital assets, net of accumulated depreciation 2,338,597 Restricted cash 40,492 Total assets 3,923,618 LIABILITIES Accounts payable and accrued liabilities Unearned revenue Long -term liabilities: Due within one year Due in greater than one year Total liabilities 238,841 42,093 147,004 1,772,235 2,200,173 DEFERRED INFLOW OF RESOURCES Grants received in advance 1,706 NET POSITION Net investment in capital assets 585,428 Restricted for specialty license plate expenditures 40,492 Unrestricted 1,095,819 Total net position $ 1,721,739 The notes to the financial statements are an integral part of this statement. 10 TAMPA BAY REGIONAL PLANNING COUNCIL STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2013 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 $ 281,114 $ 40,171 $ - $ (240,943) Comprehensive planning 2,355,770 605,743 751,922 (998,105) Public safety 205,094 47,485 471,928 314,319 Physical environment 297,288 190,112 50,304 (56,872) Debt service - interest and debt service amortization 69,108 - (69,108) Total governmental activities 3,208,374 883,511 1,274,154 (1,050,709) Total primary government $ 3,208,374 $ 883,511 $ 1,274,154 (1,050,709) General revenues: Membership dues 920,215 Rental income 91,964 Interest 3,173 Miscellaneous 23,271 Total general revenues 1,038,623 Change in net assets (12,086) Net position - beginning, as restated 1,733,825 Net position - ending $ 1,721,739 The notes to the financial statements are an integral part of this statement. 11 TAMPA BAY REGIONAL PLANNING COUNCIL BALANCE SHEET- GENERAL FUND SEPTEMBER 30, 2013 ASSETS Cash $ 1,069,525 Investments 95,439 Receivables: Federal and state grants 302,702 Local government 43,615 Other receivables 7,075 Prepaid expenditures and inventory 26,173 Restricted cash 40,492 Total assets $ 1,585,021 LIABILITIES, DEFERRED INFLOW AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Unearned revenues Total liabilities $ 238,841 42,093 280,934 Deferred inflow of resources: Grants received in advance 1,706 Fund balances: Nonspendable Prepaid expenditures and inventory 26,173 Restricted Specialty license plate expenditures 40,492 Assigned Future year budgetary deficit 55,275 Compensated employee absences 166,070 Grant matching funds 63,497 Development of regional impact and other council activities 25,000 Long term building renewal and replacement 75,000 Unassigned 850,874 Total fund balances 1,302,381 Total liabilities, deferred inflow and fund balances $ 1,585,021 The notes to the financial statements are an integral part of this statement. 12 TAMPA BAY REGIONAL PLANNING COUNCIL RECONCILIATION OF THE BALANCE SHEET OF THE GENERAL FUND TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2013 Total Fund Balance - General Fund $ 1,302,381 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the General Fund. 2,338,597 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 Note payable $ (166,070) $ (1,753,169) (1,919,239) Total Net Position - Governmental Activities $ 1,721,739 The notes to the financial statements are an integral part of this statement. 13 TAMPA BAY REGIONAL PLANNING COUNCIL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND YEAR ENDED SEPTEMBER 30, 2013 Revenues Federal grants $ 1,060,622 State grants 39,211 Membership dues 920,215 Fees /contracts 883,511 In -kind revenues 174,321 Other revenues 23,271 Interest 3,173 Rental income 91,964 Total revenues 3,196,288 Expenditures Current: General government: Finance and administration 261,253 Comprehensive planning 2,307,314 Public safety 200,780 Physical environment 274,028 Capital outlay 320,549 Debt service: Interest 69,108 Principal 141,533 Total expenditures 3,574,565 Deficit of revenues over expenditures (378,277) Fund balance - beginning 1,680,658 Fund balance - ending $ 1,302,381 The notes to the financial statements are an integral part of this statement. 14 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, 2013 Net change in fund balances - total General Fund $ (378,277) 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 capital outlay of $320,549 exceeded depreciation of $101,474 in the current period. 219,075 Repayment of revenue note principal is an expenditure in the General Fund, but the repayment reduces long -term liabilities in the statement of net position. 141,533 In the statement of activities, the cost of compensated absences is measured by the amounts earned during the year, while in the General Fund expenditures are recognized based on the amounts actually paid for leave used. This is the net amount of vacation, sick leave and other incremental salary - related payments earned in excess of the amount used in the current period. Change in net position of governmental activities 5,583 $ (12,086) The notes to the financial statements are an integral part of this statement. 15 TAMPA BAY REGIONAL PLANNING COUNCIL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND YEAR ENDED SEPTEMBER 30, 2013 Revenues Federal grants State grants Membership dues Fees /contracts Other revenues In -kind revenues Interest Rental income Total revenues Expenditures Current: Direct personnel service Indirect costs Other direct costs: Publications, subscriptions and dues Travel /conferences Legal expenses Printing /graphics Contract services /consultants Occupancy costs Equipment lease /maintenance Auditing Other operating expenditures Administrative in -kind Capital outlay Debt service: Interest Principal Total expenditures Deficit of revenues over expenditures Fund balance - beginning Fund balance - ending Original Budget Final Budget $ 877,672 $ 1,068,888 103,508 39,383 918,216 920,216 714,225 822,189 26,038 19,904 132,138 168,021 3,600 3,600 176,342 91,146 2,951,739 3,133,347 1,272,717 46,000 32,450 44,850 21,900 12,500 1,032,842 117,936 105,954 23,500 62,533 132,138 10,000 1,252,784 56,100 33,058 40,088 28,250 17,065 1,219,941 123,002 104,260 24,500 67,783 168,021 318,000 69,392 69,392 141,542 141,542 $ 3,126,254 $ 3,663,786 Actual $ 1,060,622 39,211 920,215 883,511 23,271 174,321 3,173 91,964 3,196,288 1,239,515 42,582 32,097 35,849 25,012 16,926 1,210,472 84,788 100,696 24,501 56,616 174,321 320,549 69,108 141,533 3,574,565 (378,277) 1,680,658 $ 1,302,381 Variance With Final Positive (Negative) $ (8,266) (172) (1) 61,322 3,367 6,300 (427) 818 62,941 13,269 13,518 961 4,239 3,238 139 9,469 38,214 3,564 (1) 11,167 (6,300) (2,549) 284 9 $ 89,221 The notes to the financial statements are an integral part of this statement. 16 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 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. The financial reporting entity consists of the primary government and any organizations for which the primary government is financially accountable in accordance with the provisions of Statement No. 61 of GASB, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34 (the "Statement "). Component units are defined by the Statement as legally separate organizations for which the elected officials of the primary government appoint the majority of the organization's board and in which a financial benefit and burden relationship between the primary government and the organization exist. There is one component unit included in the Council's reporting entity, Regional Cooperative Alliance, Inc. 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, 2013. B. BASIS OF PRESENTATION - BASIS OF ACCOUNTING Basis of Presentation Government -wide Statements - The statement of net position 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. 17 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 1— Summary of significant accounting policies (continued) 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 employee 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 is both restricted and unrestricted net position 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. 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, Deferred Inflow of Resources 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. 18 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 1— Summary of significant accounting policies (continued) 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, 2013, the total accumulated sick leave pay benefit was $367,508 for all employees. Of this amount, an accrual representing vested benefits of $86,892 has been reported in the government -wide financial statements at September 30, 2013. 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, 2013, accrued vacation payable of $62,915 has been reported in the government -wide financial statements. The liability for compensated employee 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, 2013, accrued salary- related payments totaling $16,263 has been reported in the government -wide financial statements. The amount of accrued compensated employee 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. Deferred Inflow of Resources - In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Council has only one item that meet the criterion for this category — grant funding received in advance. 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. 19 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 1— Summary of significant accounting policies (continued) 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, 2013 are as follows: Leave benefit costs allocated $ 160,339 In- service salaries $ 821,330 Actual rate 19.52% 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, $981,669 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. 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, 2013 are as follows: Fringe benefit costs allocated $ 252,263 Organizational salaries $ 981,669 Actual rate 25.70% 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, 2013 are as follows: Indirect cost allocated (including depreciation of $19,022) Organizational salaries plus fringe benefits costs allocated Actual rate $ 61,604 $ 1,233,932 4.99% 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, 2013. 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. 20 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 1— Summary of significant accounting policies (continued) Net Position - Net position in government -wide financial statements is classified net investment in capital assets, 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 position is available. Restricted net positions represents 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. Fund Balances - In the fund financial statements, fund balances for governmental fund is reported in classifications that comprise the limitations on the fund in accordance with GASB No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. 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, 2013 to February 10, 2014 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. 21 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 2 — Deposits and investments A. Deposits and Concentration of Credit Risk At September 30, 2013, the book balance of deposits was $1,109,817 and the bank balance was $1,145,811. The Council's bank balances include insured deposits under the Federal Deposit Insurance Corporation and the remaining balances are collateralized pursuant to Chapter 280 of the Florida Statutes. The Council had $200 petty cash on hand at year end. 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, 2013, the Council had a balance of $75,751 in the Florida PRIME. Fund B is accounted for using a fluctuating net asset value pool. The fair value factor at September 30, 2013 was 1.1326 and the weighted average life (based on expected cash flows) of Fund B investments is 4.04 years at September 30, 2013. 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, 2013, the Council had a Fund B balance of $17,383 that was recorded at a fair value of $19,688. Additional information regarding Fund B may be obtained from the Florida State Board of Administration at httD: / /www.sbafla.com /prime. Interest Rate Risk — The Council has no specific policy regarding interest rate risk. Note 3 — Receivables - allowance for doubtful accounts At September 30, 2013, there was no allowance for doubtful accounts since all receivables were considered to be collectible. 22 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 4 — Capital assets Capital asset activity for the year ended September 30, 2013 was as follows: Governmental activities: Capital assets not being depreciated: Land Beginning Ending Balance Increases Decreases Balance $ 470,041 $ $ - $ 470,041 Capital assets being depreciated: Equipment, furniture and fixtures 416,151 Landscaping 55,195 Building components 286,570 Building and building improvements 1,874,805 Total capital assets being depreciated 8,514 312,035 (3,995) 420,670 55,195 286,570 - 2,186,840 2,632,721 320,549 (3,995) 2,949,275 Less accumulated depreciation for: Equipment, furniture and fixtures (375,174) (19,575) Landscaping (31,891) (3,679) Building components (170,679) (19,787) Building and building improvements (405,496) (58,433) Total accumulated depreciation (983,240) (101,474) Total capital assets being depreciated, net 1,649,481 Governmental activities capital assets, net 3,995 (390,754) (35,570) (190,466) (463,929) 3,995 (1,080,719) 219,075 1,868,556 $ 2,119,522 $ 219,075 $ - $ 2,338,597 Depreciation was charged to the following functions: General government Financial and administration $ 22,324 Comprehensive planning 60,884 Public safety 10,147 Physical environmental 8,119 Total $ 101,474 23 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 5 — Accounts payable and accrued liabilities Accounts payables and accrued liabilities at September 30, 2013, were as follows: Accounts payable $ 193,353 Accrued payroll and related liabilities 28,591 Other 16,897 $ 238,841 Note 6 — Unearned revenue Unearned revenues in the government -wide and fund financial statements at September 30, 2013 were as follows: Development Regional Impact application fees Advance - grants and contracts Note 7 — Operating leases $ 26,379 15,714 $ 42,093 The Council has entered into operating lease agreements for office equipment and an automobile. Minimum noncancellable lease commitments are as follows: Year Ending September 30, 2014 $ 14,331 2015 12,108 2016 6,048 2017 5,040 Total $ 37,527 Total rental expense for all operating lease agreements for the year ended September 30, 2013 was $21,107. Note 8 — Current lease agreements with tenants Substantially all of the vacant office space of the Council is leased to various other entities for periods of up to 7 years. These leases are classified as operating. Future minimum rentals to be received under non - cancelable operating leases are as follows: Year Ending September 30, 2014 $ 175,351 2015 178,775 2016 182,155 2017 185,599 2018 165,168 Thereafter 254,875 Total $ 1,141,923 24 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 9 — 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. 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 System. 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 65 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 65 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, 2013. The rate applied to regular employee salaries was 6.95 %. The rate includes a 1.11% health insurance subsidy. Total payroll for the Council employees covered by the system was approximately $952,759 for the year ended September 30, 2013. The Council's total payroll for the same period was $987,251. The Council's contribution to the System plan for the years ended September 30, 2013, 2012, and 2011 were $63,747, $52,717 and $108,754, 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, or by calling (877) 377 -1737, or accessing their Internet site at www.dms.mvflorida.com /retirement. Note 10 — 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 $210,641 and total pledged revenue was approximately $998,766. 25 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 10 — Long -term liabilities (continued) The future debt service requirements of the Note, Series 2008 are as follows: Fiscal Year Principal Interest Total 2014 $ 147,004 $ 63,930 $ 210,934 2015 152,676 58,258 210,934 2016 158,420 52,514 210,934 2017 164,680 46,254 210,934 2018 171,034 39,900 210,934 2019 -2023 959,355 95,351 1,054,706 $ 1,753,169 $ 356,207 $ 2,109,376 A summary of changes in long -term liabilities follows: Balance Balance October 1, September 30, Current 2012 Additions Reductions 2013 Portion Compensated absences $ 171,653 $ 113,447 $ (119,030) $ 166,070 $ Note payable - Series 2008 Note 11— Contingency 1,894,702 - (141,533) 1,753,169 147,004 $ 2,066,355 $ 113,447 $ (260,563) $ 1,919,239 $ 147,004 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. Note 12 — 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 restricted 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 2013 Budget Resolution appropriated the amount of $55,275 from the fiscal 2013 fund balance for expenditures authorized in excess of anticipated revenue during fiscal year 2014. 26 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 12 — Fund balance (continued) (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 compensated employee 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 2014 grant matching requirements. (f) 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 2014. (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. Note 13 — Change in Accounting Principles The Council implemented GASB Statement 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and Statement 65, Items Previously reported as Assets and Liabilities, in the fiscal year ended September 30, 2013. The implementation of GASB Statement 63 required the Council to present a Statement of Net Position, replacing previously presented Statement of Net Assets, in the Council's basic financial statements. The implementation of Statement No. 65 did reclass amounts to the inflow sections of the Statement of Net Position. Additionally, GASB Statement 65 requires bond issuance costs, which were previously deferred and amortized, to be expensed when incurred. Previously deferred bond issuance costs totaled $60,795. As a result, net position as of October 1, 2012 has been adjusted accordingly: Beginning balances, as previously reported, October 1, 2012 Adjustment for implementation of GASB 65, debt issuance costs Beginning balances, as restated, October 1, 2012 Other current assets Beginning balances, as previously reported, October 1, 2012 $ 2,322,576 Adjustment for implementation of GASB 65, debt issuance costs (60,795) Beginning balances, as restated, October 1, 2012 $ 2,261,781 Total Net Position $ 1,794,620 (60,795) $ 1,733,825 Debt service - interest and debt service amortization $ 80,133 (5,558) $ 74,575 27 GRANT COMPLIANCE `rso Cherry Bekaert"' CPAs & Advisors Report of Independent Auditor 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, in accordance with the 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, 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, 2013, and the related notes to the financial statements, which collectively comprise the Council's basic financial statements, and have issued our report thereon dated February 10, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Council's internal control over financial reporting ( "internal control ") to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Council's internal control. Accordingly, we do not express an opinion on the effectiveness of the Council's internal control. 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. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Council's financial statements are free from 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. 28 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Cte.mi7t 461e,L.. z_t_ io Tampa, Florida February 10, 2014 29 Cherry Bekaertu' CPAs & Adyisos Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A -133 To the Council Members Tampa Bay Regional Planning Council Pinellas Park, Florida Report on Compliance for Each Major Federal Program We have audited Tampa Bay Regional Planning Council's (the "Council ") compliance with the types of compliance requirements described in the OMB Circular A -133 Compliance Supplement that could have a direct and material effect on the Council's major federal programs for the year ended September 30, 2013. 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. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the Council's major federal programs based on our audit of the types of compliance requirements referred to above. 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 on compliance for each major federal program. However, our audit does not provide a legal determination of the Council's compliance. Opinion on Each Major Federal Program In our opinion, the Council complied, in all material respects, with the types of 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, 2013. Report on Internal Control Over Compliance Management of the Council is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Council's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program 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. 30 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. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 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 material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A -133. Accordingly, this report is not suitable for any other purpose. C/mi77 6..L,,-"' 1. i_ p Tampa, Florida February 10, 2014 31 TAMPA BAY REGIONAL PLANNING COUNCIL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED SEPTEMBER 30, 2013 Federal Grantor/ Federal Grant/ Pass through Grantor/ CFDA Contract Program Title Number Number U.S. Department of Commerce Transfer to Expenditures Subrecipients Direct Programs Economic Adjustment Assistance 11.307 04 -69 -06568 $ 510,760 $ 452,122 Economic Development Support for Planning 11.302 04 -83 -06493 66,841 Organization Total U.S. Department of Commerce 577,601 452,122 U.S. Department of Energy Passed through Florida Department of Agriculture and Consumer Services Electricity Delivery and Energy Reliability, Research, Development and Analysis Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis /Assistance Total U.S. Department of Homeland Security U.S. Department of Homeland Security Passed through Florida Division of Emergency Management Homeland Security Grant Program 81.122 ARR003 81.117 DE- EE0006310 2010 -SS -T0-0092, 12- DS- 20- 13 -00 -01 -500, 13- 97.067 DS- 97- 13 -00 -21 -333 318,000 243,630 893 - 318,893 243,630 97,056 Total U.S. Department of Homeland Security 97,056 U.S. Department of Transportation Passed through Florida Department of Community Affairs Interagency Hazardous Materials Public Sector Training and Planning Grants 14- DT- 75- 13 -00 -21 -183, 20.703 13- DT- B5- 13 -00 -21 -154 67,072 Total U.S. Department of Transportation 67,072 Total Federal Awards $ 1,060,622 $ 695,752 The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 32 TAMPA BAY REGIONAL PLANNING COUNCIL NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS SEPTEMBER 30, 2013 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. 33 TAMPA BAY REGIONAL PLANNING COUNCIL SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2013 I. Findings - Financial Statements Audit Financial Statement Section Type of auditors' report issued: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified not considered to be material weakness(es)? Noncompliance material to financial statements noted Federal Awards Section Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified not considered to be material weakness(es)? Type of auditor's report on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with section 510 (a) of OMB Circular A -133 Identification of the major federal program: Unmodified yes x yes x yes x no none reported no yes x no yes x none reported Unmodified yes x no CFDA Number 11.307 Name of Program or Cluster U.S. Department of Commerce Economic Adjustment Assistance 81.122 U.S. Department of Energy Electricity Delivery and Energy Reliability, Research, Development and Analysis Dollar threshold used to distinguish between type A and type B programs Auditee qualified as low -risk auditee? $300,000 x yes no 34 TAMPA BAY REGIONAL PLANNING COUNCIL SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2013 II. Findings - Financial Statements Audit This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to the financial statements that are required to be reported in accordance with Government Auditing Standards. There were no findings required to be reported by Government Auditing Standards. III. Federal Award Findings and Questioned Costs This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance, including questioned costs, related to the audit of major federal programs, as required to be reported by OMB Circular A -133. There were no findings required to be reported by OMB Circular A -133. Summary Schedule of Prior Audit Findings A Summary Schedule of Prior Audit Findings is not necessary since there were no prior audit findings. 35 `� Cherry Bekaert CPAs Independent Auditor's Management Letter To the Council Members Tampa Bay Regional Planning Council Pinellas Park, Florida We have audited the financial statements of the Tampa Bay Regional Planning Council (the "Council "), as of and for the fiscal year ended September 30, 2013, and have issued our report thereon dated February 10, 2014. 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; OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations; and Chapter 10.550, Rules of the Florida Auditor General. We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards, Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by OMB Circular A -133 and the Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated February 10, 2014, 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 reports or schedule. 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. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. 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, 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. Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, amounts, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is Tess than material but warrant the attention of those charged with governance. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)5., 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. 36 Section 10.554(1)(i)6.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) 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)6.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the Council for the fiscal year ended September 30, 2013, 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, 2013. In connection with our audit, we determined that these two reports were in agreement. Pursuant to Sections 10.554(1)(i)6.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 same. The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550 Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Ckmi77,6: p Tampa, Florida February 10, 2014 37