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Town of Jupiter Island, Florida

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Town of Jupiter Island, Florida TOWN OF JUPITER ISLAND, FLORIDA Audited Financial Statements And Supplementary Financial Information SEPTEMBER 30, 2016 TOWN OF JUPITER ISLAND, FLORIDA AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTARY FINANCIAL INFORMATION SEPTEMBER 30, 2016 TABLE OF CONTENTS FINANCIAL SECTION: Independent Auditor’s Report ................................................................................................................ 5 Management’s Discussion and Analysis ................................................................................................ 9 BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Position ................................................................................................................ 21 Statement of Activities..................................................................................................................... 22 Fund Financial Statements: Balance Sheet – Governmental Funds ............................................................................................. 24 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................ 27 Statement of Revenue, Expenditures and Changes in Fund Balance – Governmental Funds ...................................................................................... 2 8 Reconciliation of the Statement of Revenue, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statement of Activities ............................................................................................. 31 Statement of Net Position – Enterprise Fund ................................................................................... 32 Statement of Revenue, Expenses and Changes in Fund Net Position – Enterprise Fund ........................................................................................... 35 Statement of Cash Flows – Enterprise Fund .................................................................................... 36 Statement of Fiduciary Net Position – Fiduciary Funds .................................................................. 38 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................................... 39 Notes to Basic Financial Statements ................................................................................................ 40 REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule – General Fund ........................................................................... 73 Budgetary Comparison Schedule – Beach Protection Fund ............................................................ 82 Defined Benefit Pension Plan Schedule of Changes in the Net Pension Liability and Related Ratios ..................................................................................... 84 Defined Benefit Pension Plan Schedule of Employer Contributions and Investment Returns ........ 85 Defined Benefit Pension Plan Schedule of Changes in Total Pension Liability .............................. 86 Other Postemployment Benefits – Schedule of OPEB Funding Progress ....................................... 87 Notes to Required Supplementary Information ............................................................................... 89 OTHER SUPPLEMENTARY INFORMATION: Nonmajor Governmental Funds: Combining Balance Sheet ................................................................................................................ 94 Combining Statement of Revenue, Expenditures and Changes in Fund Balance ............................ 95 OTHER SUPPLEMENTARY INFORMATION: (Continued) Schedule of Water and Wastewater Revenue Refunding Bond Coverage – Enterprise Fund ......... 96 Pension Trust Funds Combining Statement of Fiduciary Net Position ........................................................................ 97 Combining Statement of Changes in Fiduciary Net Position ..................................................... 98 Private-Purpose Trust Fund: Statement of Fiduciary Net Position ........................................................................................... 99 Statement of Changes in Fiduciary Net Position ...................................................................... 100 Statement of Changes in Assets and Liabilities – Town Employees Agency Fund ................................................................................................ 101 COMPLIANCE SECTION: 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 ................................................................. 105 Independent Auditor’s Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance in Accordance with the Uniform Guidance and Chapter 10.550, Rules of the Auditor General of the State of Florida ............................................................................................................................ 107 Schedule of Expenditures of Federal Awards and State Financial Assistance .............................. 110 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance ................ 112 Schedule of Findings and Questioned Costs .................................................................................. 113 Management Letter in Accordance With the Rules of the Auditor General of the State of Florida ................................................................................................................. 115 Independent Accountant’s Report on an Examination Conducted in Accordance with AICPA Professional Standards, Section 601, Regarding Compliance Requirements in Accordance with Chapter 10.550, Rules of the Auditor General ............................................ 117 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Town Commissioners Town of Jupiter Island, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activity, each major fund and the aggregate remaining fund information of the Town of Jupiter Island, Florida, as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Town of Jupiter Island, Florida’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activity, each major fund and the aggregate remaining fund information of the Town of Jupiter Island, Florida, as of September 30, 2016, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 5 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 9 to 17, budgetary comparison schedules on pages 73 to 83, schedules of changes in the net pension liability and related ratios
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