town of marineland, florida audited … rpts/2014...town of marineland, florida 9507 ocean shore...

TOWN OF MARINELAND, FLORIDA

AUDITED FINANCIAL STATEMENTS SEPTEMBER 30, 2014


Officials as of Audit Date September 30, 2014

Mayor Leslie Babonis Commissioners Andy Johnson

Matt Welsh Director of Finance Mark Simpson Town Clerk Dee Michaels Town Manager Town Attorney

Suzanne Dixon Dennis Bayer


TABLE OF CONTENTS

Report of Independent Certified Public Accountant Page 1

Management’s Discussion and Analysis Page 4

Basic Financial Statements

Statement of Net Assets Page 7

Statement of Activities and Changes in Net Assets Page 8

Fund Financial Statements

Balance Sheet – Governmental Funds Page 9

Reconciliation of the Balance Sheet of Governmental Fund to the Statement of Net Assets Page 10

Statement of Revenues, Expenses, and Changes in Fund Balances of Governmental Funds

Page 11

Reconciliation of the Statement of Revenues, Expenses, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Page 12

Notes to Financial Statements Page 13 Required Supplementary Information

Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds-Budgetary Comparison Schedule Page 18

Supplemental Audit Reports 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 Page 21 Management Letter of Independent Auditors Required by Chapter 10.550, Rules of the Auditor General Page 22

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STEPHEN P. BARNIER, CPA, CFP® • ZANE WEBBER, CPA

17 N OLD KINGS ROAD, SUITE D, PALM COAST, FL 32137

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Town of Marineland, Florida 9507 Ocean Shore Blvd. St. Augustine, FL 32080 To the Public Officials: We have audited the accompanying general purpose financial statements of the governmental activities and each major fund of the Town of Marineland, Florida (an incorporated town in Florida) as of and for the year ended September 30, 2014, which collectively comprise the Town’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town’s mangement. Our responsibility is to express an opinion on these financial statements 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 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis of our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Town of Marineland, Florida as of September 30, 2014 and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated February 15, 2015 on our consideration of the Town of Marineland, Florida’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulation and contracts. 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 provide an opinion on the 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 read in conjunction with this report in considering the results of our audit. The management’s discussion and analysis and budgetary comparison information on pages 4 to 5 and page 19, respectively, are not a required part of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

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Barnier & Webber, LLC Certified Public Accountants

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT (Continued)

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Town’s basic financial statements. The budgetary comparison information on page 19 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Barnier & Webber, CPAs Palm Coast, Florida February 15th, 2015

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Management’s Discussion and Analysis For The Year Ended September 30, 2014 As management of the Town of Marineland, Florida (the Town), we offer readers of the Town’s basic financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2014. As with other sections on this financial report, the information contained within this narrative should be considered only in conjunction with the basic financial statements taken as a whole.

FINANCIAL HIGHLIGHTS

The assets of the Town exceeded its liabilities as of September 30, 2014 by $2,240,331 (net assets)

The net assets increased by $888 which was due to revenues exceeding expenses.

OVERVIEW OF FINANCIAL STATEMENTS The Town’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to financial statements. The report also contains other supplementary information in addition to the basic financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private sector business:

The statement of net assets presents information on all of the Town’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the town is improving or deteriorating. The statement of activities presents information showing how the Town’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government-wide financial statements distinguish functions of the Town that are principally supported by property taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The government activities of the Town include general government, public safety, public works, parks and recreation, and transportation.

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Management’s Discussion and Analysis For The Year Ended September 30, 2014

Fund Financial Statements A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The Town used fund accounting to ensure and demonstrate compliance with financial-related legal requirements. All of the funds of the Town fall into a category known as governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information is useful in evaluation of the Town’s near-term financing requirements. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Notes to the Basic Financial Statements The notes provide additional information that is essential for a full understanding of data provided in the government-wide and fund financial statements. The notes present information about the Town’s significant policies, account balances and activities, material risks, obligations, commitments, contingencies and subsequent events, if any. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s budget process. The Town adopts an annual expenditures budget for all governmental funds. A budgetary comparison statement has been provided for the general fund as required supplementary information.

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Statement of Net Assets September 30, 2014

See Independent Auditors Report and Notes to Financial Statements 7

Governmental

Activities Business-Type

Activities Total

ASSETS Current Assets Cash and Cash Equivalents $ 303,311 $ - $ 303,311 Accounts Receivable 1,415 - 1,415 Other Current Assets 5,516 - 5,516

Total Current Assets 310,242 - 310,242

Capital Assets Buildings 658,692 - 658,692

Land 1,225,307 - 1,225,307 Land Improvements 114,208 - 114,208 Accumulated Depreciation (64,805) - (64,805)

Total Capital Assets 1,933,402 - 1,933,402

TOTAL ASSETS $2,243,644 - $2,243,644

LIABILITIES

Current Liabilities

Accounts Payable 3,285 - 3,285 Other Current Liabilities 28 - 28

Total Current Liabilities 3,313 - 3,313

TOTAL LIABILITIES 3,313 - 3,313 NET ASSETS

Invested in Capital Assets Net of Related Debt 1,933,402 - 1,933,402

Restricted for Capital Projects 31,785 - 31,785

Unrestricted 275,144 - 275,144

Total Net Assets 2,240,331 - 2,240,331

TOTAL LIABILITIES AND NET ASSETS $2,243,644 $ - $2,243,644


Statement of Activities and Changes in Net Assets For the Year Ended September 30, 2014

Program

Revenues Net Revenue (Expense) and

Changes in Net Assets

Functions/Programs Expenses Governmental

Activities Governmental

Activities Total

General Government $ 60,897 $ 61,785 $ 888 $ 888

Total $ 60,897 $ 61,785

Change in Net Assets 888 888

Net Assets Beginning 2,239,443 2,239,443

Net Assets Ending $ 2,240,331 $ 2,240,331

See Independent Auditors Report and Notes to Financial Statements

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Balance Sheet Governmental Funds

September 30, 2014

Special Total General

Fund Revenue

Fund Governmental

Funds

ASSETS

Cash and Cash Equivalents $302,722 $589 $303,311 Accounts Receivable 1,415 - 1,415 Other Current Assets 5,516 - 5,516

Total Assets 309,653 589 310,242

LIABILITIES

Accounts Payable 3,285 - 3,285

Other Current Liabilities

28 - 28

Total Liabilities 3,313 3,313

FUND BALANCES

Restricted for Capital Projects

31,785 - 31,785

Unrestricted

274,555 589 275,144

Total Fund Balances 306,340 589 306,929

TOTAL LIABILITIES AND FUND BALANCES $309,653 $589 $310,242

See Independent Auditors Report and Notes to Financial Statements

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Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Assets

For the Year Ended September 30, 2014

Total Government Fund Balances as of September 30, 2014 $ 306,929 Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds.

Governmental Capital Assets 1,933,402

Net Assets of Governmental Activities in Statement of Net Assets as of September 30, 2014 $ 2,240,331



Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds

For the Year Ended September 30, 2014 Revenues

General Fund

Special

Total

Revenue Fund

Governmental Funds

Ad Valorem Taxes $ 34,526 - $ 34,526 Communications Service Tax 1,138 - 1,138 Franchise Payments

17,547 - 17,547

Licenses, Permits, and Fees

1,370 - 1,370 Interest

39 - 39

Rental Income

4,800 - 4,800

Other Revenues

2,366 - 2,366

Total Revenues 61,786 - 61,786

General and Administrative Expenses 39,728 225 39,953

Other Income (Expense) (2,424) - (2,424)

Excess of Revenues Over (Under) Expenditures

19,634 (225) 19,409

Fund Balance, Beginning of Year 286,706 814 287,520

Fund Balance, End of Year $ 306,340 $ 589 $ 306,929



Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds

to the Statement of Activities For the Year Ended September 30, 2014

Net Change in Fund Balances-Total Governmental Funds $ 19,409

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their expected useful lives. This is the amount by which capital outlay exceeded depreciation expense for the current period (18,521)

Payroll Liability Recorded on Accrual Basis – Not Fund Basis -

Change in net assets of governmental activities $ 888



Notes to Financial Statements For the Year Ended September 30, 2014

NOTE 1. REPORTING ENTITY AND BASIS OF PRESENTATION

Reporting Entity The town was incorporated under the laws of the State of Florida in 1940, as a political subdivision under the authority of Chapter 165 Florida Statutes. The town is located in Flagler County, and has a population of less than 100 people. The town is governed by a mayor, a town commission, and other staff members. The accompanying financial statements present the financial position and results of operations of applicable fund types controlled by or dependent upon the City Commission in accordance with generally accepted accounting principles applicable to governments. Entity status for financial reporting purposes is governed by Statement No. 34 of the Governmental Accounting Standards Board (GASB). The GASB is the standard setting body for the establishment of generally accepted accounting standards for governmental entities. Determination of the financial reporting entity of the Town is founded upon the objective of accountability. Therefore, the financial statements are only for the Town (the primary government). There are no legally separate component units for which operational or financial responsibility rests with officials of the Town, or for which the nature and significance of their relationship to the Town are such that exclusion would cause the financial statements to be misleading or incomplete. Basis of Presentation The Town’s basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business-type.

Government-Wide Financial Statements The government-wide financial statements include the statement of net assets and the statement of activities. Individual funds are not displayed but the statements distinguish governmental activities, which are generally supported by taxes and Town general revenues, from business-type activities, which are generally financed in whole or in part by fees charged to external customers. The statement of net assets reflects, on a full accrual basis, all long-term assets and receivables as well as long-term liabilities. The statement of activities presents the direct cost for each functional activity and applies program revenues to arrive at a net cost for the identified functions. There are no indirect costs for allocation. Program revenues must be directly associated with the government function or business-type activity.

Fund Financial Statements Fund financial statements are provided for governmental funds. There are no proprietary funds utilized by the Town.

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NOTE 1. REPORTING ENTITY AND BASIS OF PRESENTATION (Continued)

The Town presents the following major governmental funds:

The General Fund is the primary operating fund of the Town. It is used to account for all financial resources applicable to the operation of the Town that are not required by law or administrative action to be accounted for in another fund.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the Town conform to generally accepted accounting principles applicable to governments and as established by the GASB. The most significant policies used by the Town are set forth below. A. Basis of Accounting Governmental Fund: Revenues and expenditures of the Governmental Fund are recognized on the modified accrual basis of accounting. Under the modified accrual basis of accounting, (a) revenues are recognized in the accounting period in which they become available and measurable, and (b) expenditures are recognized in the accounting period in which related liabilities are incurred.

B. Measurement Focus Governmental Fund: The general fund is accounted for on a spending of financial flow measurement focus. This means that the current assets and current liabilities are the only items generally included on the balance sheet. Accordingly, the reported unreserved fund balance (net current assets) is considered a measure of available, spendable, or appropriable resources. The Governmental Fund operating statement presents increases and decreases in net current assets. C. Fund Accounting

In order to ensure observance of limitations and restrictions on the use of the resources available, the financial records and accounts are maintained in accordance with the principles of fund accounting. The financial transactions of the Town are recorded in individual funds. Each fund is accounted for by providing a separate set of self balancing accounts that comprises its assets, liabilities, reserves, fund equity, revenues and expenditures or expenses. D. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets are, reported in the applicable governmental or business type activities columns in the government-wide financial statements. Capital assets in excess of $1,000 are recorded at historical cost, including all infrastructure assets (roads, bridges, and streets) as required by GASB 34. Infrastructure assets were retroactively reported at estimated historical cost upon adoption of GASB 34. Donated assets are recorded at fair market value as of the date received.

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NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. Capital Assets (Continued)

Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repair and maintenance are expensed as incurred.

Depreciation is provided on straight-line basis over the estimated useful life of the asset.

E. Property Taxes Property taxes are billed and collected within the same fiscal period, and are reflected on the modified accrual basis. Ad Valorem taxes on property values have a lien assessment date of January 1, with millage established during the preceding September. The fiscal year for which taxes are levied begins October 1. Taxes which are billed in November carry a maximum discount available through November 30, and become delinquent on April 1 of the subsequent year. State statutes permit the Town to levy property taxes at a rate up to 10 mils. The millage rate assessed by the Town for the fiscal year ended September 30, 2014 was 10 mills. F. Annual Budget

An annual budget is adopted for the General Fund on a basis consistent with generally accepted accounting principles. Budgeted amounts in the accompanying financial statements have been adjusted for all revisions of the annual budget approved by the Town officials. Budget appropriations lapse at the end of each fiscal year.

G. GASB 34 Required Supplementary Information Note

This audit of the Town includes accrual and fund accounting financial statements per GASB 34. The Town has implemented this format well in advance of the required date. The annual budget is calculated under the conservative assumption that all revenues will be spent. The favorable variance is due entirely to revenues exceeding budgeted expenditures.

H. Fund Balance Classification

For the year ending September 30, 2014, the Town implemented Government Auditing Standards Board (GASB) No. 54 – Fund Balance reporting and Governmental Type Definitions. The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:

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NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

H. Fund Balance Classification (Continued)

Nonspendable fund balance – amounts that are not in spendable form (such as inventory and prepaid expense) or are required to be maintained intact. Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. Committed fund balance – amounts constrained to specific purposes by the Town itself, using its highest level of decision making authority. To be reported as committed, amounts cannot be used for any other purpose unless the Town takes the same highest level action to remove or change the constraint. Assigned fund balance – amount the Town intends to use for a specific purpose. Intent can be expressed by the Town commission or by an official body to which the commission delegates the authority. Unassigned fund balance - amounts that are available for any purpose. Positive amounts are reported only in the general fund.

The Town would typically use restricted fund balances first, followed by committed resources, and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of these other classified funds.

NOTE 3. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of interest and noninterest bearing demand accounts, as well as certificates of deposit. Cash and cash equivalents are carried at cost, which approximates fair value. Florida Statutes require that all depositories holding public funds maintain specific collateral levels with the State Chief Financial Officer (CFO). Required collateral is based on the amount of public funds held at the depository. The CFO may assess other qualified public depositories for a pro rata share of any loss suffered by a public depositor in excess of its depository’s collateral. Since the Town used only authorized public depositories, all funds deposited with financial institutions are covered in full.

NOTE 4. RISK MANAGEMENT

The Town is subject to losses in the normal course of operations resulting from general liability, property and casualty, workers’ compensation, employee health and accident, environmental and antitrust matters. The Town participates in the Florida Municipal Liability Self Insurer’s Program for purposes of protecting against workers; compensation losses; real and personal property losses; automobile damage; and general liability.

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NOTE 5. COMMITMENTS

Franchise Agreements The town has entered into an agreement granting Florida Power and Light Company a nonexclusive right to provide electricity and other services within the Town. The term of the agreement is 30 years.

NOTE 6. LITIGATION

The Town is not involved in any litigation as of September 30, 2014.

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REQUIRED SUPPLEMENTARY INFORMATION

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Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds

Budgetary Comparison Schedule For the Year Ended September 30, 2014

Revenues

Actual

Budget Variance

Governmental

Activities

Ad Valorem Taxes $34,526 $35,618 $(1,092) Communications Service Tax 1,138 1,700 (562) Franchise Payments 17,547 13,000 4,547 Licenses, Permits, and Fees 1,370 1,050 320 Interest 39 35 4 Rental Income 4,800 4,800 - Other Revenues 2,366 - 2,366

Total Revenues 61,786 56,203 5,583

General and Administrative Expenses 39,953 56,203 (16,250)

Other Income (Expense)

(2,424) -

(2,424)

Excess of Revenues Over (Under) Expenditures

$19,409 $ -

$19,409


SUPPLEMENTARY AUDIT REPORTS

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REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Town of Marineland, Florida 9507 Ocean Shore Blvd. St. Augustine, FL 32080 To the Public Officials: We have audited the general purpose financial statements of the Town of Marineland, Florida (the “Town”) as of and for the fiscal year ended September 30, 2014, and have issued our report dated February 15, 2015. We conducted our audit in accordance with auditing standards generally accepted in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Town of Marineland, Florida’s general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants and aids appropriations, 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 test did not disclose any instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Town of Marineland, Florida’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We did not note any matters involving the internal control over financial reporting and its operations that we consider to be material weaknesses. This report is intended solely for the information and use of management, the Town Public Officials, and the office of the Auditor General, State of Florida and agencies providing financial assistance and is not intended to be and should not be used by anyone other than those specified parties.


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MANAGEMENT LETTER OF INDEPENDENT AUDITORS REQUIRED BY

CHAPTER 10.550, RULES OF THE AUDITOR GENERAL Town of Marineland, Florida 9507 Ocean Shore Blvd. St. Augustine, FL 32080 To the Public Officials: We have audited the general purpose financial statements of the Town of Marineland, Florida (the “Town”) as of and for the fiscal year ended September 30, 2014, and have issued our report dated February 15, 2015. We have issued our Independent Auditor’s Report on Compliance and on Internal Control over Financial Reporting dated February 15, 2015, and our Independent Auditor’s Report on examination of Management’s Assertion about Compliance with Specified Requirements dated February 15, 2015. Disclosures in these reports, if any, should be considered in conjunction with this management letter. 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 general purpose financial statements are free of material misstatement.

Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,

which governs the conduct of local governmental entity audits performed in the State of Florida. This

letter includes the following information, which is not included in the aforementioned auditors’ reports

or schedule. Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective

actions have been taken to address findings and recommendations made in the preceding annual

financial audit report. There were no findings and recommendations made in the preceding annual

financial audit report. Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions

of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our

audit of the financial statements of the Town, nothing came to our attention that would cause us to

believe that the Town was in noncompliance with Section 218.415 regarding the investment of public

funds. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any

recommendations to improve financial management. In connection with our audit of the Town, we did

not have any such findings. Reference to such matters is provided in separate letters to the Town.

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Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of

contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an

effect on the financial statements that is less than material but more than inconsequential. In connection

with our audit, we did not have any findings other than those reported in the Schedule of Findings and

Questioned Costs, if applicable. Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that have an inconsequential effect on financial statements, considering both quantitative and qualitative factors: (1) violations of provisions of contracts or grant

agreements, fraud, illegal acts, or abuse, and (2) deficiencies in internal control that are not significant deficiencies. No such matters were discovered during the course of this audit. Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or not

the local governmental entity has met one or more of the conditions described in Section 218.503(1),

Florida Statutes, and identification of the specific condition(s) met. In connection with our audit of the

financial statements of the Town, the results of our tests did not indicate the Town met any of the

specified conditions of a financial emergency contained in Section 218.503(1). However, our audit does

not provide a legal determination on the Town’s compliance with this requirement. Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual

financial report for the Town for the fiscal year ended September 30, 2014, filed with the Florida

Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with

the annual financial audit report for the fiscal year ended September 30, 2014. Our comparison of the

financial report filed with the Florida Department of Financial Services to the Town’s 2014 audited

financial statements resulted in no material differences. Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we applied financial

condition assessment procedures as of September 30, 2014. It is management's responsibility to monitor

the Town's financial condition, and our financial condition assessment was based in part on

representations made by management and the review of financial information provided by same. This letter is intended solely for the information and use of management, the Town of Marineland,

Florida, the Florida Auditor General and applicable federal and state agencies, and is not intended to be

and should not be used by anyone other than these specified parties.


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