Hernando County

Agenda Item

Comprehensive Annual Financial Report for FY 2009-10




Attached is the Comprehensive Annual Financial Report (CAFR) for fiscal year 2010 as prepared by the Clerk's Finance office.  The basic financial statements and required supplementary  information have been audited by the independent audit firm of Purvis Gray and Company.


The independent auditors also provide a Governance Letter in accordance with AICPA's Statement on Accounting Standards No. 114, "The Auditor's Communication with Those Charged with Governance."


Included for informational purposes are 6 year trend financial reports on the General Fund and select Proprietary Funds.


Also attached is a report of financial indicators comparing Hernando County to other similar counties in the state.  The Auditor General's office provides this tool for local governments to measure their financial condition.  The attachment (Hernando County-Entity Financial Data FY10) provides Hernando County's financial indicator graphs, a list of benchmarks and a chart which lists the entities used in comparison to measure Hernando County's financial condition.

Meeting History

Mar 8, 2011 9:00 AM Video Board of County Commissioners Regular Meeting

Clerk of Circuit Court Finance Director Amy Gillis provided an overview of the Comprehensive Annual Financial Report (CAFR) and reviewed the Six-Year Trend Financial Reports on the General Fund and select Proprietary Funds.

Comm. Russell observed that the Management's Discussion and Analysis attested to the County's current overall solvency, which in government particularly during these economic times, was almost unusual and something to focus on and be positive about.

Comm. Dukes expressed concern over the decrease in net assets for the Water and Sewer District and felt they needed to consider what could be done to what could be done to help that situation in the upcoming weeks and months.

In response to Comm. Druzbick, Mrs. Gillis provided an explanation for the disparity between the Operating Expenses Depreciation and Amortization figures for the Hernando County Water and Sewer District from 2005 to 2010.


Upon questioning by Comm. Stabins, Environmental Services Director Joseph Stapf stated that the 25% rate increase approved by the Board in June 2009, would help bring the water and sewer (said them) operating income levels back in line over the next four years. He noted that the staff was in the process of reanalyzing the rates and had noted a decrease in the projected capital costs and associated debt service due to increased construction costs. He agreed that efforts to encourage water conservation impacted the income levels.

Comm. Druzbick expressed appreciation to Mr. Stapf for bringing forward some initiatives that had resulted in a substantial savings in the Utilities Department operating expenses.

Mr. Joe Welch, with Purvis, Gray and Company, LLP, (PGC) external auditor for the County, presented the results of the audit of the financial statements for the year ended September 30, 2010, outlining some secondary objectives, a number of Compliance reports, Management Letter, County Management's Response and Governance Letter. He noted that the staff who assisted in the audit were knowledgeable, helpful and professional. He expressed appreciation to the Clerk of Circuit Court Audit Services Director who committed 300 hours toward reviewing some internal controls that PGC utilized saving the County approximately $15,000 to $17,000. He stated that while PGC noticed the strain that some staffing reductions and change in duties had placed on the checks and balances they continued to be properly designed and implemented and PGC was happy with how the County was holding up. He stated that a financial condition assessment designed by the Auditor General with input from the governmental finance community of both Clerks and Auditors was performed. He indicated that the County's financial condition was trending downward with losses in the Hernando County Water and Sewer District and the General Fund, but generally remained favorable compared to other Counties.

Upon questioning by Comm. Stabins, Mr. Welch indicated that PGC's fee was approximately $220,000. He believed that adding $12 million to the General Fund Reserves would be helpful.

Chairman Adkins requested a Motion to accept the report.


To accept.


MOVER:David D. Russell Jr., Commissioner
SECONDER:Wayne Dukes, Vice Chairman
AYES:James E. Adkins, Wayne Dukes, Jeff Stabins, John C. Druzbick, David D. Russell Jr.