HomeMy WebLinkAbout*1270 Stormwater Mgmt FS SW586260City of Sanford, Florida
Florida Department of Environmental Protection
Loan No. SW586260
Special Purpose Statement of Loan Revenues and Expenditures —
Budget and Actual
June 4, 2009 Through February 10, 2012
City of Sanford, Florida
Florida Department of Environmental Protection
Loan No. SW586260
Table of Contents
Page
Number
Independent Auditor's Report
Special Purpose Statement of Loan Revenues and Expenditures —
Budget and Actual 2
Notes to Special Purpose Statement of Loan Revenues and Expenditures —
Budget and Actual
Independent Auditor's Report on Compliance and on Internal Control over
Financial Reporting Based on an Audit of Special Purpose Financial
Statements Performed in Accordance with Government Auditing Standards 4
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and
Members of the City Commission
City of Sanford, Florida
We have audited the accompanying special purpose statement of loan revenues and expenditures — budget
and actual of the City of Sanford, Florida (the "City "), Florida Department of Environmental Protection
( "FDEP ") Loan No. SW586260, for the period June 4, 2009 through February 10, 2012. This special
purpose financial statement is the responsibility of the City's management. Our responsibility is to
express an opinion on this special purpose financial statement 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 special purpose financial statement is free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures and significant estimates made by management, as well as evaluating the overall special
purpose financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
The accompanying special purpose financial statement was prepared for the purpose of complying with
the rules and regulations of FDEP, as discussed in Note 1, and is not intended to be a presentation in
conformity with accounting principles generally accepted in the United States of America.
In our opinion, the special purpose statement of loan revenues and expenditures — budget and actual
referred to above presents fairly, in all material respects, the loan revenues and expenditures — budget and
actual of the City, FDEP Loan No. SW586260, for the period June 4, 2009 through February 10, 2012 on
the basis of accounting described in Note 2.
In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2012,
on our consideration of the Department'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 and should be considered in assessing the results of our
audit.
MOORE STEPHENS LOVELACE, P.A.
Certified Public Accountants
Orlando, Florida
June 22, 2012
BE
City of Sanford, Florida
Florida Department of Environmental Protection
Loan No. SW586260
Special Purpose Statement of Loan Revenues and Expenditures -
Budget and Actual
June 4, 2009 Through February 10, 2012
Budget Actual
Loan Revenues:
State of Florida $ 2,612,309 $ 2,612,309
Expenditures
Construction 2,348,221 2,348,221
Technical services 242,366 242,366
Capitalized interest 21,722 21,722
2,612,309 2,612,309
The accompanying notes are an integral part of this financial statement.
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City of Sanford, Florida
Florida Department of Environmental Protection
Loan No. SW586260
Notes to Special Purpose Statement of Loan Revenues and Expenditures —
Budget and Actual
June 4, 2009 Through February 10, 2012
Note 1— General
The City of Sanford, Florida (the "City "), is a political subdivision of the State of Florida located
in Seminole County. The City provides a full complement of municipal services. The City's
Stormwater Division (the "Division ") operates as an enterprise fund of the City. The Division
functions as a self - supporting, government enterprise fund. The Division maintains construction
in progress and loans payable accounts to account for the construction of the City's various
construction projects relating to its stormwater resource facilities and the receipt of loan proceeds.
The City has completed the following projects: Cloud Branch Drainage Improvements — Phase 2
Construction. Funding for this project was provided by the Clean Water State Revolving Loan
Fund (Loan No. SW586260) through the Florida Department of Environmental Protection
( "FDEP ").
The construction Loan Agreement with FDEP requires a separate audit of the project under
Chapter 403.1835, Florida Statutes. The Loan Agreement includes various covenants, and
requires aproject- specific audit of the loan- related revenues and expenditures.
Note 2 — Basis of Accounting
The special purpose statement of loan revenues and expenditures — budget and actual was
prepared on the basis of accounting prescribed by FDEP in order to comply with the Loan
Agreement described above between the City and FDEP. Under this basis, loan proceeds are
recognized as revenues when monies are received. Expenditures are recognized when incurred.
Administrative, planning, and engineering costs represent allowances stated in the Loan
Agreement and are recognized as expenditures upon reimbursement. The special purpose
statement of loan revenues and expenditures — budget and actual covers only the projects
described in the Loan Agreement and is not representative of the City or the Division taken as a
whole.
Note 3 — Capitalized Interest
Capitalized interest represents the indebtedness accruing on the loan from the time of
disbursement until six months before the 20 -year repayment period begins and is financed as part
of the loan principal.
Note 4 — Contingency
The loan revenue amounts from FDEP are subject to audit and adjustment. If any expenditure
were disallowed by FDEP as a result of an audit, any claim for reimbursement to FDEP would
become a liability of the City. In the opinion of management, all loan expenditures are in
compliance with the terms of the Loan Agreement and Chapter 62 -503 of the Florida
Administrative Code.
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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND
ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF SPECIAL PURPOSE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
The Honorable Mayor and
Members of the City Commission
City of Sanford, Florida
We have audited the special purpose statement of loan revenues and expenditures — budget and actual of
the City of Sanford, Florida (the "City "), Florida Department of Environmental Protection ( "FDEP ")
Loan No. SW586260, for the period June 4, 2009 through February 10, 2012, and have issued our report
thereon dated June 22, 2012. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management of the City is responsible for establishing and maintaining effective internal control over
financial reporting. In planning and performing our audit, we considered the City's internal control over
financial reporting as a basis for designing our auditing procedures 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 City's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
ME
The Honorable Mayor and
Members of the City Commission
City of Sanford, Florida
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's special purpose financial statement is
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the City and FDEP and is not intended to be,
and should not be, used by anyone other than these specified parties.
9.
MOORE STEPHENS LOVELACE, P.A.
Certified Public Accountants
Orlando, Florida
June 22, 2012
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