FINANCIAL STATEMENTS
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CITY OF CLEARWATER, FLORIDA
Community Development Block Grant Funds
Program Year 1975; CDBG No. B-75-MC-12-0002
Program Year 1976; CDBG No. B-76-MC-12-0002
Financial Statements
June 2, 1975 through May 13, 1977
(With Accountants' Report Thereon)
Peat, Marwick, Mnchell & CO.
CERTIFIED PUBLIC ACCOUNTANTS
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PEAT, MARWICK, MITCHELL & CO.
CERTIFIED PUBLIC ACCOUNTANTS
P. O. BOX 1439
TAMPA, FLORIDA 33601
ACCOUNTANTS' REPORT ON FINANCIAL AUDIT
The Honorable Mayor-Commissioner,
City Commissioners and City Manager
City of Clearwater, Florida:
We have examined the statements of source and status of funds and of
program costs of the City of Clearwater, Florida, for the periods
June 2, 1975 through May 13, 1977 applicable to program year 1975 (CDBG
No. B-75-MC-12-0002) and July 1, 1976 through May 13, 1977 applicable
to program year 1976 (CDBG No. B-76-MC-12-0002). Our examination was
made in accordance with generally accepted auditing standards and pro-
visions of the Department of Housing and Urban Development's Audit Guide
and Standards for Community Development Block Grant Recipients, and
accordingly included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
In our opinion, the aforementioned financial statements present fairly
the status of funds of the City of Clearwater, Florida, as of May 13,
1977 under the Community Development Block Grant program and the
source of funds and program costs for the periods June 2, 1975 through
May 13, 1977 applicable to program year 1975 (CDBG No. B-75-MC-12-0002)
and July 1, 1976 through May 13, 1977 applicable to program year 1976
(CDBG No. B-76-MC-12-0002), in conformity with generally accepted
accounting principles, grant agreements and Federal Management Circular
(FMC) 74-4.
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October 7, 1977
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CITY OF CLEARWATER, FLORIDA
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
PROGRAM YEAR 1975; CDBG NO. B-75-MC-12-0002
Statement of Source and Status of Funds
June 2, 1975 through May 13, 1977
Total program year 1975 funds allocated to
recipient
Less: total program year 1975 funds drawn
down by recipient
Funds still available from HUD program year
1975 resources
Total program year 1975 funds drawn down by
recipient
Program income applicable to program year 1975
Total program year 1975 funds received
Less: funds applied to program year 1975 costs
Total program year 1975 costs in excess of funds
drawn down by recipient
Total program year 1975 funds available for
disposition
See accompanying notes to financial statements.
Grant
amount
$ 209,000
197,200
11,800
$ 197,200
197,200
197,281
(81)
$ 11,719
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CITY OF CLEARWATER, FLORIDA
CO:MMUNITY DEVELOPMENT BLOCK GRANT FUNDS
PROGRAM YEAR 1975; CDBG NO. B-75-MC-12-0002
Statement of Program Costs
June 2, 1975 through May 13, 1977
Program activity and related projects
Public works facilities, site improve-
ment:
Recreational facilities:
Condon Gardens
Wood Valley
Ross Norton
Upgrade unpaved streets in
North Greenwood area
Install sidewalks and benches
North Greenwood area
Authorized
costs
Accrual basis
expenditures
for period
June 2,1975
through
May 13,1977
$ 35,000 31,491
45,601 38,183
50,984 51,534(1)
16 ,184 16,184(1)
in
14,340 12,998
162,109 150,390
Rehabilitation loans and grants:
Finance rehabilitation of privately-
owned property through direct loans
Planning an? management development
Administrative
Subtotal
Contingencies and/or unspecified local
option activities
Total
(1) Completed projects
(2) Project dropped
34,500
34,500(1)
(2)
12,391
12,391
209,000
197,281
$ 209,000
197,281
See accompanying notes to financial statements.
Questioned
costs
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CITY OF CLEARWATER, FLORIDA
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
PROGRAM YEAR 1976; CDBG NO. B-76-MC-12-0002
Statement of Source and Status of Funds
July 1, 1976 through May 13, 1977
Total program year 1976 funds allocated to
recipient
Less: total program year 1976 funds drawn
down by recipient
Funds still available from HUD program year
1976 resources
Total program year 1976 funds drawn down by
recipient
Program income applicable to program year 1976
Total program year 1976 funds received
Less: funds applied to program year 1976 costs
Total program year 1976 costs in excess of funds
drawn down by recipient
Total program year 1976 funds available for
disposition
See accompanying notes to financial statements.
Grant
amount
$ 466,000
19,500
446,500
$ 19,500
19,500
42,524
(23,024)
$ 423,476
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CITY OF CLEARWATER, FLORIDA
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
PROGRAM YEAR 1976; CDBG NO. B-76-MC-12-0002
Statement of Program Costs
July 1, 1976 through May 13, 1977
Program activity and related projects
Acquisition of real property:
Development of housing
Public works facilities, site improve-
ment:
Recreational facilities:
Ross Norton
Clearwater Heights
Install sidewalks and benches in
North Greenwood area
Rehabilitation loans and grants:
Finance rehabilitation of privately-
owned property through direct loans
Administrative
Subtotal
Contingencies and/or unspecified local
option activities
Total
(1) Completed projects
Authorized
costs
$ 100,000
241,994
4,000
70,854
316,848
19,000
17,000
452,848
13 , 152
$ 466,000
See accompanying notes to financial statements.
Accrual basis
expenditures
for period
July 1,1976
through
May 13,1977
13 , 533
13 , 533
19,000(1)
9,991
42,524
42,524
Ques tioned
costs
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CITY OF CLEARWATER, FLORIDA
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
PROGRAM YEAR 1975; CDBG NO. B-75-MC-12-0002
PROGRAM YEAR 1976; CDBG NO. B-76-MC-12-0002
Notes to Financial Statements
June 2, 1975 through May 13, 1977
(1) Summary of Significant Accounting Policies
Basis of Accounting
The financial statements are prepared on the accrual basis of account-
ing from the accounts of the Community Development Block Grant
program grants No. B-75-MC-12-0002 and No. B-76-MC-12-0002 for the
program years 1975 and 1976, respectively.
(2) Program Description
The primary objective of the Community Development Block Grant program
is the development of viable urban communities, including decent
housing, suitable living environment and expanded economic opportuni-
ties, principally for persons of low and moderate income. In pursuit
of this objective, the City of Clearwater, Florida, after receiving
citizen input, has determined certain geographic areas of the City as
the primary recipients of the program funds. Within these areas the
funds are designated for new recreational facilities, sidewalks, street
paving and loans to rehabilitate private residences.
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Accountants' Report on Internal Accounting Controls,
Compliance Matters and Allocation of Indirect Costs
Internal Accounting Controls and
Compliance Matters
We have examined the statements of source and status of funds and of program
costs applicable to the Community Development Block Grant of the City of
Clearwater, Florida, for the period ended May 13, 1977 and have issued our
report thereon dated October 7, 1977. As a part of our examination, we re-
viewed and tested the City's system of internal accounting control to the
extent we considered necessary to evaluate the system as required by generally
accepted auditing standards. Under these standards, the purpose of such evalua-
tion is to establish a basis for reliance thereon in determining the nature,
timing and extent of other auditing procedures that are necessary for express-
ing an opinion on the financial statements. Additionally, our examination
included procedures necessary in our judgment to determine compliance with
regulations, policies and procedures prescribed by HUD, insofar as such com-
pliance review was necessary under the provisions set forth in Paragraph 31
of the HUD Audit Guide for Community Development Block Grant Recipients
dated May, 1976.
The objective of internal accounting control is to provide reasonable, but
not absolute, assurance as to the safeguarding of assets against loss from
unauthorized use or disposition and the reliability of financial records for
preparing financial statements and maintaining accountability for assets.
We understand that the objective of those control procedures set forth in
Paragraph 31 of the Hun Audit Guide is to provide similar assurance as to
compliance with its related requirements. The concept of reasonable assurance
recognizes that the cost of a system of internal accounting control should not
exceed the benefits derived and also recognizes that the evaluation of these
factors necessarily requires estimates and judgments by management.
There are inherent limitations that should be recognized in considering the
potential effectiveness of any system of internal accounting control. In
the performance of most control procedures, errors can result from misunder-
standing of instructions, mistakes of judgment, carelessness or other personal
factors. Control procedures whose effectiveness depends upon segregation of
duties can be circumvented by collusion. Similarly, control procedures can
be circumvented intentionally by management with respect either to the exe-
cution and recording of transactions or with respect to the estimates and
judgments required in the preparation of financial statements. Further,
projection of any evaluation of internal accounting control to future periods
is subject to the risk that the procedures may not be adequate because of
changes in conditions and that the degree of compliance with the procedures
may deteriorate.
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Our study and evaluation of the City's system of internal accounting control
and our review of its compliance with various statutes and regulations, as
prescribed in Paragraph 31 of the HUD Audit Guide for Community Development
Block Grant Recipients, was made for the purposes set forth in the second
paragraph above and would not necessarily disclose all weaknesses in the
system nor all deviations from prescribed compliance policy. However, such
study and evaluation disclosed no conditions which we believe to be material
weaknesses or matters of noncompliance in relation to the Community Develop-
ment Block Grant program.
Allocation of Indirect Costs
Indirect costs were not allocated to the CDBG program during the period under
audit.
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October 7, 1977
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