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[CALL TO ORDER:]

[00:00:04]

SO I'M GOING TO CALL THIS SPECIAL COUNCIL MEETING 2022 DASH 17 TO ORDER.

BEFORE WE DO ANYTHING, I'D LIKE FOR COUNCILMAN FOSTER TO LEAD US IN THE PLEDGE OF ALLEGIANCE.

WOULD YOU ALL RISE? ALLEGIANCE TO THE FLAG.

UNITED STATES OF.

THE REPUBLIC FOR WHICH HE STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

SIR. INDEED IT IS.

SO. THANK YOU, SIR.

ROLL CALL. MISS LEFLER MAYOR MEDINA DEPUTY MAYOR JOHNSON HERE.

COUNCILMAN FOSTER COUNCILMAN FELIX.

WHO IS ABSENT.

COUNCILMAN FILIBERTO.

HERE, MISS SHERMAN.

HERE, MISS SMITH.

HERE. AS YOU KNOW, WE HAVE ONE ITEM ON ON BUSINESS IN THIS SPECIAL COUNCIL MEETING.

[1. Presentation by Moore Stephens Lovelace, P.A. - Comprehensive Annual Financial Report for Fiscal Year ending September 30, 2021; consideration of forwarding the report to the Auditor General.]

AND MISS SHERMAN. THANK YOU, MAYOR.

MY PLEASURE. TO INTRODUCE EDDIE CASTANEDA FROM MOORE, STEPHEN'S AND LOVELACE.

THEY ARE OUR FINANCIAL AUDITORS, AND HE'S HERE TO GIVE YOU THE RESULT OF THE AUDIT FOR LAST FISCAL YEAR, THE PERIOD ENDING SEPTEMBER 30TH, 2021.

EDDIE, IT'S ALL YOURS.

HI. WELCOME. WELCOME.

GOOD TO BE HERE. THANK YOU, SUZANNE.

AS SUZANNE MENTIONED, I'M THE SENIOR MANAGER AND THE ENGAGEMENT FOR THE FINANCIAL STATEMENT AUDIT.

YOUR SHAREHOLDER, JOEL KNAPP, COULD NOT MAKE IT TODAY, BUT I'M HERE IN HIS STEAD.

SO WE'RE GOING TO HERE TO DISCUSS THE THE RESULTS OF THE FINANCIAL STATEMENT AUDIT, SEE IF THIS IS THE.

RIGHT ONE. OKAY.

SO YOU SHOULD HAVE BEEN GIVEN A LETTER FOR OUR REQUIRED COMMUNICATIONS PER OUR STANDARDS WERE REQUIRED TO COMMUNICATE TO THE TO THE COMMISSION CERTAIN COMMUNICATIONS THAT WERE REQUIRED AS THOSE CHARGING GOVERNANCE WHO ARE THE OVERSEERS OF THE CITY AUDITOR RESPONSIBILITY RESPONSIBILITIES, WHERE WE CONDUCTED THE AUDIT IN ACCORDANCE TO GENERALLY ACCEPTING AUDITING STANDARDS AS WELL AS GENERALLY ACCEPTED GOVERNMENTAL AUDITING STANDARDS, WHICH IS A KEY DIFFERENCE IN HOW WE APPROACH AUDITS FOR LOCAL FLORIDA GOVERNMENTS.

MANAGEMENT'S RESPONSIBILITY IS TO PROVIDE US WITH ALL THE INFORMATION THAT WE'VE REQUESTED.

WE'RE HAPPY TO SAY THAT THERE WAS NO DISAGREEMENTS WITH MANAGEMENT AND THERE HAS BEEN NO HINDRANCE INTO OUR AUDIT AND WHAT WE'VE REQUESTED.

EVERYTHING WAS OPEN DOOR, EVERYTHING WAS GIVEN TO US.

SO THAT'S GOOD TO SAY.

INTERNAL CONTROLS AND COMPLIANCE.

WE DO EVALUATE THE CITY'S INTERNAL CONTROLS OVER FINANCIAL STATEMENT AND REPORTING, AND WE'RE HAPPY TO SAY THAT THERE'S NO FINDING, THAT WE HAD NO FINDINGS.

AND AS IT RETURN, AS IT RELATES TO INTERNAL CONTROLS, SIGNIFICANT AUDIT MATTERS, THERE'S A LETTER COMMUNICATED TO THE COMMISSION, I THINK BACK IN, I WANT TO SAY FEBRUARY, WHERE WE GO OVER THE SIGNIFICANT AUDIT AREAS AND WHAT WE'RE GOING TO BE TESTING MANAGEMENT IS PROVIDED US A REPRESENTATION LETTER DATED LAST FRIDAY THAT THEY'VE GIVEN US ALL THE INFORMATION THAT WE REQUESTED AND THAT THE AUDITS AND THEN OTHER THINGS LIKE THE ASSIGNED INDIVIDUAL FOR OVERSIGHT, WHICH IS MARSHA AND THE AUDIT SCHEDULE.

SO THE DELIVERABLES THAT WE DELIVERED TO THE CITY IS OUR, THE, OUR AUDIT REPORT.

IT WAS AN UNMODIFIED OPINION, WHICH IS THE QUOTE UNQUOTE CLEAN OPINION.

SO EVERYTHING WITHIN THIS DOCUMENT, THE FINANCIAL STATEMENTS HAS BEEN MATERIAL IS MATERIALLY CORRECT.

THERE WAS NO MATERIAL AUDIT FINDINGS AND THERE WAS NO MATERIAL AUDIT ADJUSTMENTS WITHIN THIS DOCUMENT.

THERE WAS NO INTERNAL INTERNAL CONTROL FINDINGS AS WELL, AS I MENTIONED.

WE ALSO DELIVER A WE ALSO DO A SINGLE AUDIT, WHICH IS A AUDIT OF THE CITY'S FEDERAL AND STATE AWARDS.

THERE WAS FINDINGS IN PREVIOUS YEARS.

WE'RE HAPPY TO SAY THAT THOSE FINDINGS HAVE BEEN RESOLVED AND COMPLETED.

AND NOW THE CITY IS IN ACCORDANCE IS IN COMPLIANCE WITH ITS C, PARTICULARLY ITS CDBG GRANT.

SO IT'S BEEN CLEARED.

LASTLY, THE FLORIDA AUDITOR GENERAL REQUIRES US TO ISSUE TWO SEPARATE REPORTS.

ONE CALLED THE AUDITOR'S MANAGEMENT LETTER AS WELL AS THE INDEPENDENT ACCOUNTANTS REPORT.

THE INDEPENDENT AUDITORS MANAGEMENT LETTER IS JUST THE AG REQUIRES US TO TEST FOR CERTAIN IF THE CITY IS IN COMPLIANCE WITH CERTAIN FLORIDA STATUTES.

AND ALSO THE INDEPENDENT ACCOUNTANT WHOSE REPORT IS A SEPARATE REPORT SPECIFICALLY FOR THE COMPLIANCE OF THE INVESTMENT, THE INVESTMENTS FLORIDA STATUTE.

AND WE'RE HAPPY TO SAY THAT THE CITY IS IN COMPLIANCE WITH THAT STATUTE.

SOME BRIEF FINANCIAL HIGHLIGHTS HERE.

WE'D LIKE TO DO JUST KIND OF AN OVERVIEW OF A COMPARISON FROM PRIOR YEAR.

YOU COULD SEE THE THE CITY CLOSED HIGHER THAN PREVIOUS YEARS AND IT'S CHANGING THAT POSITION AS WELL AS ITS OVERALL NET POSITION.

[00:05:01]

THIS WAS RELATED TO THE GO BONDS, THE SECOND TRANCHE OF GO BONDS THAT WERE THAT WERE ISSUED LAST FISCAL YEAR, AS WELL AS INCREASES AND IMPACT FEE COLLECTION DUE TO ALL THE VARIOUS COMPLETION OF CONSTRUCTION PROJECTS THROUGHOUT THE CITY.

SO THAT DID RESULT IN A HIGHER NET POSITION AND ACTUALLY A HIGHER RESTRICTED NET POSITION.

AS YOU CAN SEE, IT WAS FROM 33 MILLION TO 78 MILLION IN THE CURRENT YEAR.

SOME BRIEF HIGHLIGHTS FOR THE GENERAL FUND HAD A GOOD YEAR.

AND THAT CHANGE IN FUND BALANCE WAS APPROXIMATELY 6 MILLION.

AND THE GENERAL FUND'S OPERATING TOTAL FUND BALANCE INCREASED BY SIX 6 MILLION AS WELL.

GOOD POINT TO.

HERE IS THE UNASSIGNED FUND BALANCE AS A AS A PERCENTAGE OF YOUR TOTAL EXPENDITURES.

THAT WOULD MEAN AND THAT'S AT 40% WHICH IS ROUGHLY YOU HAVE THE CITY IN THE GENERAL FUND HAS A 40% KIND OF CUSHION TO COVER OF THEIR UNRESERVED FUND BALANCE TO COVER THE THE A YEAR'S WORTH OF EXPENDITURES BASICALLY.

SO 40% IS PRETTY HEALTHY.

YOU COULD SEE IN THE GENERAL FUND BUDGET, THE CITY DID HAVE A POSITIVE OF APPROXIMATELY 11 MILLION FROM BUDGETED EXPENDITURES IN REVENUES TO ACTUAL.

SO THAT IS A GOOD KEY INDICATOR AS WELL.

FOR THE UTILITIES FUND.

AGAIN, WE'RE SEEING SOME IT WAS PRETTY STEADY AS IT HAS BEEN OVER THE FEW YEARS.

YOU DON'T REALLY GET TOO MANY HIGHS AND LOWS WITHIN THE WITHIN THE UTILITY FUND AS THE RATES SHOULD COVER THE COST.

AND YOU WANT TO YOU WANT TO GET THOSE KIND OF EXACTLY AS AS IT AS IT CAN.

OPERATING INCOME WAS IN THE CURRENT YEAR WAS 10 MILLION AS COMPARED TO PRIOR YEAR OF 9 MILLION AND NET POSITION INCREASED AS WELL, APPROXIMATELY 33.

SORRY, WHAT IS THAT LIKE 20 MILLION? AND OTHER THAN THAT, ANY QUESTIONS OR COMMENTS FROM THE.

MEMBERS ALSO, I'LL START ANY QUESTIONS.

COUNCILMAN FILIBERTO.

NO QUESTION. GREAT PRESENTATION.

I REALIZE THIS IS YOUR LAST YEAR, CORRECT? CORRECT. THANK YOU FOR EVERYTHING YOU'VE DONE.

IT'S BEEN OUR PLEASURE. AND JUST WANT TO SAY THANK YOU FOR THE WORK YOU'VE DONE FOR THE CITY.

APPRECIATE IT. IN YOUR OPINION OVERALL.

WHAT GRADE YOU WOULD GIVE TO GIVE THE CITY OF PALM BAY FOR HIS FINANCIAL CAPABILITY.

FROM THE FINANCIAL STATEMENTS.

WELL, AS AN AUDITOR, I'D LIKE TO BE GRADE NEUTRAL.

HOW ABOUT. NO, I'VE JUST.

THE CITY HAS HAD SOME CHALLENGES.

I'VE BEEN HERE FOR FOUR YEARS NOW, PARTICULARLY IN THOSE FINDINGS RELATED TO CDBG.

YOU NEVER REALLY WANT TO SEE FINDINGS IN DEALING WITH A FEDERAL AGENCY, ESPECIALLY WHEN IT HAS GRANT DOLLARS ASSOCIATED TO IT, AND ESPECIALLY A HIGH PUBLIC PROGRAM SUCH AS CDBG, THAT A LOT OF CITIZENS, YOU KNOW, THEY DO RELY ON SOME OF THOSE FUNDING.

SO IN THAT CASE, I GIVE THE LIKE A GOOD GRADE, I GUESS, AN A-PLUS ON GETTING THOSE FINDINGS RESOLVED SO THAT YOU HAVE NO OVERSIGHT.

YOU NEVER WANT A FEDERAL AGENCY LOOKING INTO I NEVER WANT A FEDERAL AGENCY LOOKING INTO ONE OF MY CLIENTS.

SO THAT'S IT'S ALWAYS POSITIVE.

SO ALL OUR FEDERAL GRANT PROGRAMS. BUT MUST THAT? I WOULD SAY I'M SORRY.

ALL OUR FEDERAL GRANT.

I'M USING SLANG HERE.

YOU KNOW, MEET THE MUSTARD CUTS.

CUTS THE MUSTARD MEANS. YES, THERE'S A LOT OF THE PROGRAMS THAT WE TESTED.

THERE WAS NO FINDINGS.

WE DIDN'T TEST EVERY SINGLE FEDERAL PROGRAM OR EVERY SINGLE STATE PROGRAM IS IT'S A CALCULATION ON HOW THOSE ARE SELECTED THAT ARE SET BY THOSE THOSE AGENCIES REQUIREMENTS.

BUT OF THE ONES THAT WE DID TEST, THERE WAS NO FINDINGS.

ARE YOU FAMILIAR WITH THE FEDERAL EXCUSE ME, THE STATE AUDIT THAT WE WAS UNDER? ON OPERATE THEIR OPERATIONAL AUDIT.

I THINK THAT WAS BACK IN 19.

YES. AND YEAH.

THE J LIKE. SO NONE OF THAT DID YOU COVER ANY OF THAT.

ANY THAT CROSSED PATHS OF WORDS? NO. SOME THINGS DO OVERLAP, BUT THEY DO.

WE DO A FINANCIAL STATEMENT AUDIT, AND WHEN THE AG DOES AN OPERATIONAL, THEY GO INTO MORE DEPTH IN DETAIL ON THE KIND OF DAY TO DAY OPERATIONS.

WHEN WE SAY LIKE THE CLEAN OPINION, IT'S JUST ON THE FINANCIAL STATEMENTS AND AREAS THAT FEED INTO THAT DOCUMENT.

BUT THE AG COULD REALLY THEY'RE REALLY MORE IN DEPTH THAN THINGS LIKE THAT.

I DID SPEAK WITH THE MANAGER WHO DID THAT AUDIT BACK IN 19 AND, YOU KNOW, THEY WERE VERY UPCOMING AND WE DID REVIEW THAT THAT DOCUMENT.

BUT THERE WAS THERE WAS NOTHING IN THERE THAT WOULD ELEVATE UP TO A FINANCIAL STATEMENT LEVEL WHERE WE FELT THAT WE'D HAVE TO REPORT ON ANYTHING.

IT'S JUST MORE, I GUESS, MORE IN THE MINUTIA THAN ANYTHING.

[00:10:03]

THANK YOU. DEPUTY MAYOR JOHNSON, I KNOW YOU.

THANK YOU FOR YOUR SERVICE, SIR.

WE'VE BEEN HERE IN THE PAST FOUR YEARS TOGETHER.

SO SEEING ALL THIS STUFF RESOLVED, IT'S NOT JUST YOU'RE DOING YOUR JOB, BUT IT'S A CREDIT TO STAFF.

SO I JUST WANT TO THANK STAFF PUBLICLY FOR YOUR YOUR DILIGENCE AND GETTING EVERYTHING RESOLVED AND US GETTING THAT A-PLUS, AS YOU SAY.

SO I APPRECIATE EVERYBODY AND THE SKY'S THE LIMIT.

SO THANK YOU ALL.

YEAH, I CONCUR WITH YOU, DEPUTY MAYOR.

I WANT TO GO TAKE IT A STEP FURTHER.

I KNOW THAT AND I'M EXCITED.

YOU MENTIONED THE CDBG ISSUES THAT WE HAD AND AND HOW WHAT WAS ACCOMPLISHED TO CLEAR ALL THAT UP.

SO WE HAVE TO GIVE CREDIT TO THE STAFF.

RIGHT. AND I CAN'T THINK OF ANYONE ELSE RIGHT NOW THAN SANDRA URBAN, WHO WORKED SO HARD TIRELESSLY TO TO CROSS THOSE T'S AND DOT THOSE I'S.

AND, NANCY, YOU KNOW, THE LEADER OF THAT TEAM, IT DID TAKE IT WASN'T A NON DAUNTING TASK TO GET THAT ALL LINED UP. AND WHEN I HEARD YOU SAY WHEN I GOT THE INFORMATION THAT THAT IT'S CLEAR THAT THAT JUST GOES TO SHOW THE DEDICATED INDIVIDUALS THAT WE HAD ON THE JOB WORKING THAT OUT.

AND I'M REALLY PROUD OF THOSE EFFORTS.

I AGREE. THANK YOU SO MUCH FOR THE HARD WORK THAT YOU'VE ENDURED IN PROVIDING AUDITS OVER THE LAST FOUR YEARS.

I UNDERSTAND WE DO HAVE SOMEONE ELSE AND IT KEEPS IT KEEPS IT BALANCE, RIGHT.

THE CHANGE COMPANIES. RIGHT.

KEEPS IT KEEPS THAT WHOLE PROCESS AT A HIGHER LEVEL OF INTEGRITY.

SO THANKS AGAIN.

ABSOLUTELY. AND YEAH, THANKS TO SUZANNE AND LARRY AND MARCIA.

A REAL SPECIAL THANKS TO MARSHA WHO PUTS THIS DOCUMENT TOGETHER.

IT IS NOT EASY.

THIS IS OUT HUNDREDS OF HOURS TO GET THIS FINAL DOCUMENT INTO INTO WHAT IT GETS PRESENTED TO YOU AND TO THE STATE.

SO I DO WANT TO THANK HER SPECIFICALLY FOR ALL THE WORK THAT SHE DOES.

OUTSTANDING. THANK YOU, MARSHA.

SHE SAID SHE'D BE WATCHING.

THANK YOU. MY SEAT. THANK YOU.

THANK YOU, SUZANNE.

THANK YOU, LARRY. AND AND MADAM SHERMAN, DID YOU WANT TO CLOSE WITH SOME COMMENTS? NO, I'LL JUST ECHO WHAT COUNCIL SAID.

THANK YOU TO YOU AND YOUR TEAM, EDDIE.

TELL JOEL WE APPRECIATE HIM.

ALL THE WORK. ABSOLUTELY EVERYBODY ALL THE ALL THESE YEARS.

AND THANK YOU FOR YOUR GUIDANCE AND HELPING US BECAUSE WE WE HAD A GREAT EFFORT BY THE FINANCE TEAM AND THE HOUSING TEAM TO GET US TO WHERE WE'RE AT NOW.

SO THANK YOU.

I NEED A MOTION MOTION HERE FOR THE REPORT TO THE AUDITOR GENERAL.

THEY CAN GOT A MOTION BY DEPUTY MAYOR JOHNSON, SECONDED BY COUNCILMAN FOSTER.

ANY ADDITIONAL DISCUSSION, GENTLEMEN? YOU'RE NOT ALL IN FAVOR.

AND HE OPPOSED PASSES UNANIMOUSLY.

THANK YOU. THANK YOU AGAIN.

WELL, THAT CONCLUDES OUR MEETING.

SO THIS MEETING IS NOW ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.