PALM BEACH COUNTY, FLORIDA ANNUAL FINANCIAL AUDIT REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2010_part1 docx

PALM BEACH COUNTY, FLORIDA ANNUAL FINANCIAL AUDIT REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2010 Prepared By SHARON R. BOCK Clerk & Comptroller Palm Beach County Finance Department This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents PAGE COUNTY-WIDE AUDIT: Section I: Independent Auditor’s Report i Management’s Discussion and Analysis iii Basic Financial Statements - Government-wide Financial Statements I-2 - Fund Financial Statements I-8 - Notes to Financial Statements I-28 Required Supplementary Information I-113 Section II: Independent Auditor’s Report 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 - Solid Waste Authority II-1 (Refer to V-9, V-10 for Board of County Commissioners) Section III: Management Letter - Board of County Commissioners III-1 Section IV: Management Letter - Solid Waste Authority IV-1 Section V: Federal and State Financial Assistance V-1 COUNTY AGENCY AUDITS: Section VI: TAX COLLECTOR Independent Auditor’s Report VI-1 Financial Statements and Notes VI-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) VI-16 Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund VI-17 (Continued) This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents, continued Section VI: TAX COLLECTOR, continued PAGE Other Financial Information Statement of Changes in Assets and Liabilities - Agency Fund VI-18 Other Reports Independent Auditor’s Report 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 VI-19 Management Letter VI-21 Section VII: PROPERTY APPRAISER Independent Auditor’s Report VII-1 Financial Statements and Notes VII-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) VII-16 Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund VII-17 Other Reports Independent Auditor’s Report 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 VII-19 Management Letter VII-21 Section VIII: SHERIFF Independent Auditor’s Report VIII-1 Financial Statements and Notes VIII-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) VIII-19 Schedules of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund VIII-20 - Special Revenue Fund VIII-21 Other Financial Information Statement of Changes in Assets and Liabilities - Agency Fund VIII-22 (Continued) This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents, continued PAGE Section VIII: SHERIFF, continued Other Reports Independent Auditor’s Report 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 VIII-23 Management Letter VIII-25 Section IX: CLERK & COMPTROLLER Independent Auditor’s Report IX-1 Financial Statements and Notes IX-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) IX-22 Schedules of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund IX-23 - Public Records Modernization Trust Fund IX-24 Other Financial Information Statement of Changes in Assets and Liabilities - Agency Fund IX-25 Other Reports Independent Auditor’s Report 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 IX-27 Management Letter IX-29 Section X: SUPERVISOR OF ELECTIONS Independent Auditor’s Report X-1 Financial Statements and Notes X-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) X-13 Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund X-14 Other Reports Independent Auditor’s Report 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 X-15 Management Letter X-18 (Continued) This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents, continued IMPACT FEE COMPLIANCE: PAGE Section XI: Affidavit signed by Chief Financial Officer XI-1 Certification of Compliance from OFMB XI-3 This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents, continued Section VI: TAX COLLECTOR, continued PAGE Other Financial Information Statement of Changes in Assets and Liabilities - Agency Fund VI-18 Other Reports Independent Auditor’s Report 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 VI-19 Management Letter VI-21 Section VII: PROPERTY APPRAISER Independent Auditor’s Report VII-1 Financial Statements and Notes VII-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) VII-16 Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund VII-17 Other Reports Independent Auditor’s Report 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 VII-19 Management Letter VII-21 Section VIII: SHERIFF Independent Auditor’s Report VIII-1 Financial Statements and Notes VIII-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) VIII-19 Schedules of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund VIII-20 - Special Revenue Fund VIII-21 Other Financial Information Statement of Changes in Assets and Liabilities - Agency Fund VIII-22 (Continued) This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents, continued PAGE Section VIII: SHERIFF, continued Other Reports Independent Auditor’s Report 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 VIII-23 Management Letter VIII-25 Section IX: CLERK & COMPTROLLER Independent Auditor’s Report IX-1 Financial Statements and Notes IX-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) IX-22 Schedules of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund IX-23 - Public Records Modernization Trust Fund IX-24 Other Financial Information Statement of Changes in Assets and Liabilities - Agency Fund IX-25 Other Reports Independent Auditor’s Report 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 IX-27 Management Letter IX-29 Section X: SUPERVISOR OF ELECTIONS Independent Auditor’s Report X-1 Financial Statements and Notes X-3 Required Supplementary Information Other Post-Employment Benefits (OPEB) X-13 Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund X-14 Other Reports Independent Auditor’s Report 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 X-15 Management Letter X-18 (Continued) This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents, continued IMPACT FEE COMPLIANCE: PAGE Section XI: Affidavit signed by Chief Financial Officer XI-1 Certification of Compliance from OFMB XI-3 This is trial version www.adultpdf.com Section I INDEPENDENT AUDITOR’S REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS GOVERNMENT-WIDE FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION This is trial version www.adultpdf.com  i Independent Auditor’s Report Honorable Chair and Members of Honorable Ric L. Bradshaw the Board of County Commissioners Sheriff Palm Beach County, Florida Honorable Sharon R. Bock Honorable Susan Bucher Clerk and Comptroller Supervisor of Elections Honorable Gary R. Nikolits Honorable Anne Gannon Property Appraiser Tax Collector We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Palm Beach County, Florida (the “County”), as of and for the year ended September 30, 2010, which collectively comprise the County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County’s management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Solid Waste Authority, a major enterprise fund, which represents 41% of the total assets and 49% of total revenues of the business-type activities. We did not audit the financial statements of the Westgate Belvedere Homes Community Redevelopment Agency, a discretely presented component unit, which represents 44% of the total assets and 43% of total revenues of the aggregate discretely presented component units. We also did not audit the financial statements of the Housing Finance Authority, a discretely presented component unit, which represents 53% of the total assets and 21% of the total revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Solid Waste Authority, Westgate Belvedere Homes Community Redevelopment Agency, and Housing Finance Authority, is based on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinions. In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business- type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of Palm Beach County, Florida, as of September 30, 2010, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. This is trial version www.adultpdf.com [...]... the Basic Financial Statements or other accounting information in this report, please contact the Financial Reporting Manager at: Clerk & Comptroller, Palm Beach County Finance Department 301 North Olive Avenue, 2nd Floor West Palm Beach, FL 33401 This is trial version www.adultpdf.com xx This is trial version www.adultpdf.com I-1 PALM BEACH COUNTY, FLORIDA Statement of Net Assets September 30, 2010... did not audit the information and express no opinion on it West Palm Beach, Florida March 28, 2011 This is trial version www.adultpdf.com ii Management’s Discussion and Analysis Our discussion and analysis provides an overview of the financial activities of Palm Beach County, Florida (the “County”) for the fiscal year ended September 30, 2010 We encourage reading this narrative in conjunction with... third year in a row, the County’s population decreased Population in 2010 was 1,286,461 compared with 1,287,344 in 2009  The civilian labor force for Palm Beach County decreased from 626,400 at September 30, 2009 to 623,320 at September 30, 2010, a decrease of approximately 05% The County’s unemployment rate increased to 12.4% at September 30, 2010 compared to 11.7% at the beginning of the fiscal year. .. notes to the financial statements Minimum Financial Reporting Requirements Information Type Required Financial Information RSI Management’s Discussion and Analysis Basic Financial Statements Government-wide Financial Statements Basic Financial Statements Fund Financial Statements Notes to the Financial Statements RSI RSI (other than MD&A) Government-wide Financial Statements The government-wide financial. .. 1,307 in fiscal year 2009 to 1,573 in fiscal year 2010, an increase of 20%  West Palm Beach area existing home sales increased from 8,684 in 2009 to 9,584 in 2010, an increase of 10%  Foreclosure filings in Palm Beach County fell from 31,678 in 2009 to 19,840 in 2010, a decrease of 37% More information on economic factors is provided in the Statistical Section To Obtain Further Information This financial. .. assets during fiscal year 2010, as compared with zero net change during the previous fiscal year This year s $35 million decrease in net assets from governmental activities is primarily attributed to two factors: Investment income decreased $63 million or 46.7% from the previous fiscal year The decrease was primarily the result of large changes in the fair market value of investments in fiscal year 2009... previous year  The County’s total liabilities at September 30, 2010 and 2009 were $2.769 billion and $2.881 billion, respectively This is trial version www.adultpdf.com iii Overview of the Financial Statements This CAFR consists of the Basic Financial Statements and other statements The County’s basic financial statements contain three components: government-wide financial statements, fund financial. .. residents, creditors, and enterprise fund customers As shown on the following chart, the County reported positive balances at September 30, 2010 and 2009, in all three categories of net assets, for governmental activities, business-type activities, as well as the County as a whole Palm Beach County, Florida Net Assets at Year- End (in millions) Governmental Activities 2010 2009 Assets Current and other assets... the previous fiscal year due in part to increased fiscal activity related to acquisition of environmentally sensitive ecological sites, as well as sand /beach renourishment This is trial version www.adultpdf.com viii Transportation expenses decreased $3 million or 1.9% from the previous fiscal year The decrease was primarily due to more stable fuel prices and lower operating costs during the year Economic... The Department’s net assets decreased by $32.5 million, or 3.5%, during the year  Long-term debt (net of the current portion) decreased by $9.9 million, or 4.4%, during the year  Operating revenues in fiscal year 2010 totaled $141.6 million, an 8.8% increase Fiscal year 2010 also included the effect of rate indexing, a full year of operating the Glades Utility Authority and a 0.5% increase in the customer . PALM BEACH COUNTY, FLORIDA ANNUAL FINANCIAL AUDIT REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2010 . & Comptroller Palm Beach County Finance Department This is trial version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents. version www.adultpdf.com Palm Beach County, Florida Annual Financial Audit Report September 30, 2010 Table of Contents, continued Section VI: TAX COLLECTOR, continued PAGE Other Financial Information