Presented by James Halleran, CPA

March 1, 2011

Presentation toThe City of Palm Coast,

Florida>Annual Audit as of and for the Year Ended September 30, 2010

© 2011 American Institute of CPAs

Auditors’ Reports

>Unqualified Opinion (pages 5-6)

>Internal Control and Compliance Reports (pages 141 – 142)

- No material instances of noncompliance

- Internal Control Over Financial Reporting – (1) Prior Period Adjustment Related to Land and (2) Revenue Accruals Related to the Schedule of Expenditures of Federal Awards

- Resolved the two prior year significant deficiencies

© 2011 American Institute of CPAs

Auditors’ Reports

>Management Letter Required by 10.550 Rules of the Auditor General (pages 149-150)

- No repeat comments (1 resolved)

>Federal Single Audit Report (pages 147-148)

- No material instances of noncompliance

- One significant deficiency – Revenue Accruals Related to the Schedule of Expenditures of Federal Awards

© 2011 American Institute of CPAs

Financial Health

>Overall Financial Health

>General and Utility fund in compliance with fund balance

policy. Stormwater, golf course, and tennis center are not. See Note 16.

>Overall financial condition assessment is inconclusive (Average).

© 2011 American Institute of CPAs

Highlights For This Year

>Early implemented GASB 54 – Changed fund balance categories in the governmental funds.

>General fund net change in fund balance decreased by approximately $6.6M mainly due to $5.9M transfer

for start of new Building Permit and Inspections fund.

>Property taxes increased by $.4M and other taxes by $1.3M.

>$13M spent from impact fee funds for infrastructure, fire, and parks. Minimal balances left in impact fee funds. Some at a deficit.

© 2011 American Institute of CPAs

>New funds – Building Permits & Inspection, IT&C, and Self Insured Health

>Advances to other funds – Note 7- General $5.8M to SR100 CRA

- Capital Projects $5.5M to Golf Course, $1.8M to IT&C, and $2.1M to Transportation Impact Fee

- Utility Fund $5.2M to OKR Special Assessment

>Long Term-Debt – Note 9- $4M new loan for SR100 CRA

- Stormwater $5.7M drawn on line of credit

Highlights For This Year

© 2011 American Institute of CPAs

General fund unassigned fund balance $ 2,393,217

Appropriated in 10-11 budget $ - 0 -

Unobligated $ 2,393,217

As a % of FY 2010 expenditures 9%

As a % of FY 2010 expenditures and transfers 7%

As a % of FY 2011 budgeted exp. & transfers 9%

Where You’re At Today

Questions?