CCITY OF JJACKSONVILLE,, FFLORIDA SINGLE AUDIT REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 PREPARED BY THE DEPARTMENT OF FINANCE ACCOUNTING DIVISION City of Jacksonville, Florida Single Audit Report For the Fiscal Year Ended September 30, 2019 TABLE OF CONTENTS FINANCIAL SECTION Report of Independent Certified Public Accountants ................................................................1 – 3 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..........................................................................................4 – 5 Management’s Discussion and Analysis ................................................................................. 7 - 20 BASIC FINANCIAL STATEMENTS CITYWIDE FINANCIAL STATEMENTS Statement of Net Position ..............................................................................................................22 Statement of Activities ...................................................................................................................23 FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds .................................................................................... 28 - 29 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .....................................................................................31 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ........................................................................................................ 32 - 33 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities .................................34 Statement of Net Position - Proprietary Funds ...................................................................... 36 - 37 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds .....................................................................................................................39 Statement of Cash Flows - Proprietary Funds ....................................................................... 40 - 43 Statement of Fiduciary Net Position ..............................................................................................46 Statement of Changes in Fiduciary Net Position ...........................................................................47 FINANCIAL SECTION (CONTINUED) MAJOR COMPONENT UNITS Combining Statement of Net Position – Component Units ................................................... 50 - 51 Combining Statement of Activities – Component Units ...................................................... 52 - 53 NOTES TO THE FINANCIAL STATEMENTS ............................................................. 55 -153 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund .........................................................................................156 Notes to Required Supplemental Information ................................................................... 157 - 158 Schedule of Contributions - City of Jacksonville Retirement System.................................................................................159 Schedule of Contributions - City of Jacksonville – Florida Retirement System .................................................................160 Schedule of Changes in Net Pension Liability - City of Jacksonville Retirement System........................................................................ 162 -163 Schedule of Money-Weighted Rate of Return City of Jacksonville Retirement System.................................................................................164 Notes to Required Supplementary Information - City of Jacksonville Retirement System....................................................................... 165 - 166 Schedule of the City’s Proportionate Share of Net Pension Liability ..............................................................................................................167 Schedule of Contributions - Police and Fire Retirement System ........................................................................................168 Schedule of Contributions - Police and Fire Pension Fund, Senior Staff Voluntary Retirement Plan ................................169 Schedule of Changes in Net Pension Liability - Police and Fire Retirement System .............................................................................. 170 - 171 Schedule of Changes in Net Pension Liability - Police and Fire Pension Fund, Senior Staff Voluntary Retirement Plan ................................172 Schedule of Money-Weighted Rate of Return Police and Fire Retirement System ........................................................................................173 FINANCIAL SECTION (CONTINUED) Schedule of City Contributions - Employment Benefits Other than Pension (OPEB) ...............................................................174 Schedule of Changes in Net OPEB Liability - Employment Benefits Other than Pension (OPEB) ...............................................................175 Notes to Required Supplementary Information - Employment Benefits Other than Pension (OPEB) ..................................................... 176 - 178 SINGLE AUDIT Schedule of Expenditures of Federal Awards……............................................................180 – 185 Schedule of Expenditures of State Financial Assistance…...............................................186 – 189 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance ...........................................................................................190 - 191 Independent Auditor’s Report on Compliance for Each Major Federal Program and State Project; and Report on Internal Control Over Compliance; Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General of the State of Florida ....…................192 - 194 Schedule of Findings and Questioned Costs .....................................................................195 - 197 Summary Schedule of Prior Audit Findings .............................................................................198 Corrective Action Plan to Audit Findings..........................................................................199 - 200 Management Letter Required by Chapter 10.550 of the Rules of the Auditor General………………………......………….…………..............................................201 - 203 Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes..…………………………………………………………………………................204 Independent Accountant’s Report on Compliance with Sections 365.172(10) and 365.173(2)(d), Florida Statutes..…………………………………………………………...205 Independent Accountant’s Report on Compliance with Sections 28.35 and 28.36, Florida Statutes..…………………………………………………………………………………....206 Independent Accountant’s Report on Compliance with Section 61.181, Florida Statutes..…………………………………………………………………………………....207 (This page is intentionally left blank.) /EWEEdh/dKZ^͛ZWKZd dŚĞ,ŽŶŽƌĂďůĞDĂLJŽƌĂŶĚDĞŵďĞƌƐŽĨƚŚĞŝƚLJŽƵŶĐŝů ŝƚLJŽĨ:ĂĐŬƐŽŶǀŝůůĞ͕&ůŽƌŝĚĂ ZĞƉŽƌƚŽŶƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ tĞŚĂǀĞĂƵĚŝƚĞĚƚŚĞĂĐĐŽŵƉĂŶLJŝŶŐĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞŐŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐ͕ƚŚĞďƵƐŝŶĞƐƐͲ ƚLJƉĞĂĐƚŝǀŝƚŝĞƐ͕ƚŚĞĂŐŐƌĞŐĂƚĞĚŝƐĐƌĞƚĞůLJƉƌĞƐĞŶƚĞĚĐŽŵƉŽŶĞŶƚƵŶŝƚƐ͕ĞĂĐŚŵĂũŽƌĨƵŶĚĂŶĚƚŚĞĂŐŐƌĞŐĂƚĞ ƌĞŵĂŝŶŝŶŐĨƵŶĚŝŶĨŽƌŵĂƚŝŽŶŽĨƚŚĞŝƚLJŽĨ:ĂĐŬƐŽŶǀŝůůĞ͕&ůŽƌŝĚĂ;ƚŚĞ͞ŝƚLJ͟Ϳ͕ĂƐŽĨĂŶĚĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚ ^ĞƉƚĞŵďĞƌϯϬ͕ϮϬϭϵ͕ĂŶĚƚŚĞƌĞůĂƚĞĚŶŽƚĞƐƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ǁŚŝĐŚĐŽůůĞĐƚŝǀĞůLJĐŽŵƉƌŝƐĞƚŚĞ ŝƚLJ͛ƐďĂƐŝĐĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƐůŝƐƚĞĚŝŶƚŚĞƚĂďůĞŽĨĐŽŶƚĞŶƚƐ͘ DĂŶĂŐĞŵĞŶƚ͛ƐZĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ DĂŶĂŐĞŵĞŶƚŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞƉƌĞƉĂƌĂƚŝŽŶĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞƐĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŝŶ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂĐĐŽƵŶƚŝŶŐƉƌŝŶĐŝƉůĞƐŐĞŶĞƌĂůůLJĂĐĐĞƉƚĞĚŝŶƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐŽĨŵĞƌŝĐĂ͖ƚŚŝƐŝŶĐůƵĚĞƐ ƚŚĞĚĞƐŝŐŶ͕ŝŵƉůĞŵĞŶƚĂƚŝŽŶ͕ĂŶĚŵĂŝŶƚĞŶĂŶĐĞŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƌĞůĞǀĂŶƚƚŽƚŚĞƉƌĞƉĂƌĂƚŝŽŶĂŶĚĨĂŝƌ ƉƌĞƐĞŶƚĂƚŝŽŶŽĨĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƚŚĂƚĂƌĞĨƌĞĞĨƌŽŵŵĂƚĞƌŝĂůŵŝƐƐƚĂƚĞŵĞŶƚ͕ǁŚĞƚŚĞƌĚƵĞƚŽĨƌĂƵĚŽƌ ĞƌƌŽƌ͘ ƵĚŝƚŽƌƐ͛ZĞƐƉŽŶƐŝďŝůŝƚLJ KƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽĞdžƉƌĞƐƐŽƉŝŶŝŽŶƐŽŶƚŚĞƐĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐďĂƐĞĚŽŶŽƵƌĂƵĚŝƚ͘tĞĚŝĚŶŽƚ ĂƵĚŝƚƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨ:͕ǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐĂƉƉƌŽdžŝŵĂƚĞůLJϴϱй͕ϴϭй͕ĂŶĚϴϲй͕ƌĞƐƉĞĐƚŝǀĞůLJ͕ ŽĨƚŚĞĂƐƐĞƚƐ͕ŶĞƚƉŽƐŝƚŝŽŶ͕ĂŶĚƌĞǀĞŶƵĞƐŽĨƚŚĞĂŐŐƌĞŐĂƚĞĚŝƐĐƌĞƚĞůLJƉƌĞƐĞŶƚĞĚĐŽŵƉŽŶĞŶƚƵŶŝƚƐ͘tĞ ĂůƐŽ ĚŝĚ ŶŽƚ ĂƵĚŝƚ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽĨ :ĂĐŬƐŽŶǀŝůůĞ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ƵƚŚŽƌŝƚLJ ǁŚŝĐŚ ƌĞƉƌĞƐĞŶƚƐ ĂƉƉƌŽdžŝŵĂƚĞůLJϲй͕ϳй͕ĂŶĚϴй͕ƌĞƐƉĞĐƚŝǀĞůLJ͕ŽĨƚŚĞĂƐƐĞƚƐ͕ŶĞƚƉŽƐŝƚŝŽŶ͕ĂŶĚƌĞǀĞŶƵĞƐŽĨƚŚĞĂŐŐƌĞŐĂƚĞ ĚŝƐĐƌĞƚĞůLJ ƉƌĞƐĞŶƚĞĚ ĐŽŵƉŽŶĞŶƚ ƵŶŝƚƐ͘ tĞ ĂůƐŽ ĚŝĚ ŶŽƚ ĂƵĚŝƚ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽĨ :ĂĐŬƐŽŶǀŝůůĞ WŽƌƚ ƵƚŚŽƌŝƚLJ͕ ǁŚŝĐŚ ƌĞƉƌĞƐĞŶƚƐ ĂƉƉƌŽdžŝŵĂƚĞůLJ ϵй͕ ϭϮй͕ ĂŶĚ ϱй͕ ƌĞƐƉĞĐƚŝǀĞůLJ͕ ŽĨ ƚŚĞ ĂƐƐĞƚƐ͕ ŶĞƚ ƉŽƐŝƚŝŽŶ͕ĂŶĚƌĞǀĞŶƵĞƐŽĨƚŚĞĂŐŐƌĞŐĂƚĞĚŝƐĐƌĞƚĞůLJƉƌĞƐĞŶƚĞĚĐŽŵƉŽŶĞŶƚƵŶŝƚƐ͘dŚŽƐĞƐƚĂƚĞŵĞŶƚƐǁĞƌĞ ĂƵĚŝƚĞĚďLJŽƚŚĞƌĂƵĚŝƚŽƌƐǁŚŽƐĞƌĞƉŽƌƚƐŚĂǀĞďĞĞŶĨƵƌŶŝƐŚĞĚƚŽƵƐ͕ĂŶĚŽƵƌŽƉŝŶŝŽŶŝŶƐŽĨĂƌĂƐŝƚƌĞůĂƚĞƐ ƚŽƚŚĞĂŵŽƵŶƚƐŝŶĐůƵĚĞĚĨŽƌ:͕:ĂĐŬƐŽŶǀŝůůĞdƌĂŶƐƉŽƌƚĂƚŝŽŶƵƚŚŽƌŝƚLJĂŶĚ:ĂĐŬƐŽŶǀŝůůĞWŽƌƚƵƚŚŽƌŝƚLJ͕ŝƐ ďĂƐĞĚƐŽůĞůLJŽŶƚŚĞƌĞƉŽƌƚƐŽĨƚŚĞŽƚŚĞƌĂƵĚŝƚŽƌƐ͘tĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚĂƵĚŝƚŝŶŐ ƐƚĂŶĚĂƌĚƐŐĞŶĞƌĂůůLJĂĐĐĞƉƚĞĚŝŶƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐŽĨŵĞƌŝĐĂĂŶĚƚŚĞƐƚĂŶĚĂƌĚƐĂƉƉůŝĐĂďůĞƚŽĨŝŶĂŶĐŝĂů ĂƵĚŝƚƐĐŽŶƚĂŝŶĞĚŝŶ'ŽǀĞƌŶŵĞŶƚƵĚŝƚŝŶŐ^ƚĂŶĚĂƌĚƐ͕ŝƐƐƵĞĚďLJƚŚĞŽŵƉƚƌŽůůĞƌ'ĞŶĞƌĂůŽĨƚŚĞhŶŝƚĞĚ ^ƚĂƚĞƐ͘ dŚŽƐĞ ƐƚĂŶĚĂƌĚƐ ƌĞƋƵŝƌĞ ƚŚĂƚ ǁĞ ƉůĂŶ ĂŶĚ ƉĞƌĨŽƌŵ ƚŚĞ ĂƵĚŝƚ ƚŽ ŽďƚĂŝŶ ƌĞĂƐŽŶĂďůĞ