Summary
To: Town Commission
From: Stefan Massol, Director of Support Services
Date: 6/16/2020
______________________________________________________________________
Subject:
Title
Acceptance of FY 2018-19 Comprehensive Annual Financial report
Summary:
The financial activities for the town are presented in the enclosed report which has been audited by an independent external auditor.
End
Body
Previous Commission Action: None.
Background/Problem Discussion: Each year the Town of Belleair prepares the Comprehensive Annual Financial Report in conformance with standards established by the Government Accounting Standards Board. The report is subject to an independent audit by an external CPA firm specializing in local government audits. The audit is complete and the report is enclosed for your review. In summary, the auditor has provided an unqualified opinion that the financial statements present fairly, in all material respects, the financial position of the Town of Belleair. The auditor has recommended that both the Town Manager and Director of Support Services become aware of the GASB’s efforts to make improvements to the financial reporting model established by GASB statement no. 34. The Town has accepted this recommendation and will monitor the GASB’s progress as they work towards a new reporting model.
Financial Implications: The total net position for the Town of Belleair increased by $1,476,949 during fiscal year 2018-19. Those increases were shared between the Town’s governmental activities, rising by $1,073,857, and the business-type activities, whose net position increased by $403,092. The increases can be attributed to several factors such as investment in capital projects as well as grant revenue proceeds.
A useful measurement of financial stability is the amount of unassigned fund balance available in each of the Town’s major funds. By policy, the General Fund must maintain a minimum fund balance no less than 20% of prior year expenditures and as of September 30, 2019 the fund showed a balance of 30%. The Water Fund held an unrestricted fund balance of $2,201,501 and Solid Waste held $899,572. In all cases, the unrestricted fund balances were significantly above their policy-set minimums.
Recommendation: Acceptance of the Comprehensive Annual Financial Report for FY 2018-19.
Proposed Motion: I move to accept the Comprehensive Annual Financial Report for FY 2018-19.