HomeMy Public PortalAbout2018 AFR
TOWN OF GULF STREAM, FLORIDA
FINANCIAL STATEMENTS WITH INDEPENDENT
AUDITOR’S REPORT THEREON
FISCAL YEAR ENDED SEPTEMBER 30, 2018
TOWN OF GULF STREAM, FLORIDA
SEPTEMBER 30, 2018
TABLE OF CONTENTS
Pages
Independent Auditor's Report 1-2
Management’s Discussion and Analysis (required supplementary information) 3-12
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 13
Statement of Activities 14-15
Fund Financial Statements
Balance Sheet – Governmental Funds 16
Reconciliation of the Balance Sheet – Governmental Funds to
the Statement of Net Position 17
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds 18
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balance of the Governmental Funds to the Statement of Activities 19
Statement of Net Position – Proprietary Fund 20
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Fund 21
Statement of Cash Flows – Proprietary Fund 22
Notes to the Financial Statements 23-51
Required Supplemental Information Other Than MD&A
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund 52-53
Notes to the Budgetary Required Supplemental Information 54
Schedule of Changes in Total OPEB Liability 55
Other Reports
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 56-58
Management Letter in Accordance with the Rules of the Auditor General
of the State of Florida 59-61
Independent Accountant’s Report on Compliance with Section 218.415,
Florida Statutes 62
1
INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and Members of the Town Commission
Town of Gulf Stream, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, and each major fund, of the Town of Gulf Stream, Florida, as of and for the year ended
September 30, 2018, and the related notes to the financial statements, which collectively comprise the
Town’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.
2
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 activities, and each major
fund of the Town of Gulf Stream, Florida, as of September 30, 2018, 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.
Change in Accounting Principle
As discussed in Note 15 to the financial statements, the Town of Gulf Stream, Florida implemented
Governmental Accounting Standards Board Statement No. 75,Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions,during the fiscal year ended September 30, 2018. The net
position of the Governmental Activities as of October 1, 2017 has been restated. Our opinions are not
modified with respect to this matter.
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 3 through 12, the budgetary comparison information on pages 52 through
54, and the Schedule of Changes in Total OPEB Liability on page 55 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2019,
on our consideration of the Town of Gulf Stream, Florida’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the Town of Gulf Stream, Florida’s internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Town of Gulf Stream, Florida’s internal control over financial
reporting and compliance.
West Palm Beach, Florida
June 27, 2019
Management’s Discussion and Analysis
3
The Town of Gulf Stream’s (the “Town”) discussion and analysis is designed to:
Ø Assist the reader in focusing on significant financial issues
Ø Provide an overview of the Town’s financial activity
Ø Identify changes in the Town’s financial position
Ø Identify any material deviations from the financial plan (approved budget)
Ø Identify individual fund issues or concerns
Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s
activities, resulting changes and currently known facts, please read it in conjunction with the Town’s
financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
Ø The assets plus deferred outflows of resources of the Town of Gulf Stream exceeded its liabilities
plus deferred inflows of resources at the close of the most recent fiscal year by $12,075,766 (net
position).
Ø The governmental activities revenues were $6,185,782 at the close of fiscal year 2018.
Ø The business-type activities revenues were $1,175,251 at the close of fiscal year 2018.
Ø The total cost of all Town programs was $5,842,464 during the fiscal year 2018.
Ø At the end of the 2018 fiscal year, unassigned fund balance for the General Fund was increased by
$1,164,735 and ending Fiscal Year 2018 with a total of $4,947,793 or 103% of total General Fund
expenditures which totaled $4,812,289 at the end of Fiscal Year 2018.
USING THIS REPORT
As the Town of Gulf Stream strives for transparency in government, the following graphic is provided for
your review to help you navigate this document.
MD&A
BASIC
FINANCIAL
STATEMENTS
REQUIRED
SUPPLEMENTAL
INFORMATION
Management’s Discussion & Analysis
(Required supplemental information) (pages 3-12)
Government-wide Financial Fund Financial Statements
Statements (pages 13-15) (Pages 16-22)
Notes to the Financial Statements
(Pages 23-51)
Required supplementary information
(Other than MD&A) (Pages 52-55)
Management’s Discussion and Analysis
4
The financial statement’s focus is on both the Town as a whole (government-wide) and on the major
individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant
questions, broaden a basis for comparison (year to year or government to government), and enhance the
Town’s accountability.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
Town of Gulf Stream’s finances, in a manner similar to a private-sector business. The Statement of Net
Position includes all of the government’s assets, deferred outflows of resources, liabilities, and deferred
inflows of resources. All of the current year’s revenues and expenses are accounted for in the Statement
of Activities regardless of when cash is received or paid.
The two government-wide statements report the Town’s net position and how it has changed. Net position
is the difference between the Town’s (a) assets plus deferred outflows of resources and (b) liabilities plus
deferred inflows of resources. It is one way to measure the Town’s financial health or financial position.
Over time, increases or decreases in the Town’s net position are indicators of whether its financial health
is improving or deteriorating. You will need to consider other non-financial factors, however, such as
changes in the Town’s property tax base and the condition of the Town’s infrastructure, to assess the
overall health of the Town.
In the Statement of Net Position and the Statement of Activities, we divide the Town into two kinds of
activities:
Ø Governmental activities – Most of the Town’s basic services are reported here, including the
police, public services and general administration. Property taxes, franchise fees and state shared
revenue finance most of these activities.
Ø Business-type activities – The Town charges a fee to customers to help it cover all or most of the
cost of certain services it provides.
Fund Financial Statements
Our analysis of the Town’s major funds begins on page 10. The fund financial statements provide detailed
information about the most significant funds – not the Town as a whole. Funds are accounting devices
that the Town uses to keep track of specific sources of funding and spending for a particular purpose.
Ø Governmental Funds – Most of the Town’s basic services are included in governmental funds,
which focus on (1) how cash and other financial assets can be readily converted to cash flow and
(2) the balances left at year-end that are available for spending. Consequently, the governmental
fund statements provide a short-term view that helps you determine whether there are more or
fewer financial resources that can be spent in the near future to finance the Town’s programs.
Ø Proprietary Funds – Services for which the Town charges customers a fee are generally reported
in proprietary funds. Proprietary funds, like the government-wide statements, provide both long
and short-term financial information.
Management’s Discussion and Analysis
5
§ The Town’s enterprise fund (one type of proprietary fund) is the same as its business type
activities, but provides more detail and additional information, such as cash flows.
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
Net Position
The Town’s combined net position for the fiscal year ending 2018 is reported at $12,075,766. Net position
of the Town’s governmental activities for the fiscal year ending 2018 is $8,327,045. The net position of
our business-type activities is reported at $3,748,721 for the fiscal year ending 2018. Overall the financial
position of the total primary government increased $1,518,569 during the current fiscal year. Net position
for the governmental activities increased $1,274,831 and net position for the business-type activities
increased $243,738.
Town of Gulf Stream
Net Position
September 30, 2017 and 2018
Governmental Activities Business-type Activities Total
2017 (1)2018 2017 2018 2017 2018
Current and Other Assets 6,658,737$ 7,859,402$ 1,830,482$ 2,134,364$ 8,489,219$ 9,993,766$
Capital Assets 2,317,865 2,666,376 1,690,172 1,654,159 4,008,037 4,320,535
Total Assets 8,976,602 10,525,778 3,520,654 3,788,523 12,497,256 14,314,301
Current and Other Liabilities 506,258 1,032,126 40,110 37,500 546,368 1,069,626
Long Term Liabilities 1,418,130 1,165,682 2,302 2,302 1,420,432 1,167,984
Total Liabilities 1,924,388 2,197,808 42,412 39,802 1,966,800 2,237,610
Deferred Inflows of Resources 925 925
Net Investment in Capital Assets 2,317,865 2,666,376 1,690,172 1,654,159 4,008,037 4,320,535
Restricted - Dredging Projects 17,820 17,820 17,820 17,820
Restricted - Underground Utilities 1,053,142 635,777 1,053,142 635,777
Restricted - Infrastructure Projects 43,546 116,783 43,546 116,783
Restricted - Repairs & replacements 392,185 528,252 392,185 528,252
Unrestricted 3,619,841 4,890,289 1,422,626 1,566,310 5,042,467 6,456,599
Total Net Position 7,052,214$ 8,327,045$ 3,504,983$ 3,748,721$ 10,557,197$ 12,075,766$
(1) Restated for the implementation of GASB Statement No. 75
Management’s Discussion and Analysis
6
Changes in Net Position
The Statement of Activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to 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 the future fiscal
periods (i.e., uncollected taxes and earned, but unused vacation leave).
Ø At the end of Fiscal Year 2018, there was an increase in the total net position from Fiscal Year
2017 for governmental activities which totaled $1,274,831. The 2018 net position total for
governmental activities, which includes the General Fund and the Special Assessment Fund, was
$8,327,045. Overall, the Town incurred a decrease of $1,545,330 in expenses for governmental
activities from Fiscal Year 2017 to Fiscal Year 2018. The majority of this decrease in expenses
was directly related to expenditures for the physical environment which includes Phase II of the
Undergrounding Project. During Fiscal Year 2018, there were delays in construction due to
structural revision approvals by FPL which delayed final payment to the contractor responsible
for the conduit and electrical installation. The increase in net position was also due partly in the
decrease in general government expenses from Fiscal Year 2017 to Fiscal Year 2018.
Ø The increase in business-type net position was $243,738 from Fiscal Year 2017 to Fiscal Year
2018. Even though the Town continues to decrease water usage which results in less revenue
than the previous fiscal year, the Town continues to also decrease annual expenditures as the
Town Commission’s intent is to increase the net position for the Enterprise Fund in preparation
for the recently passed 10 Year Capital Improvement Plan (CIP). This 10 Year CIP will see the
majority of the water line infrastructure replaced over the course of the next decade.
Management’s Discussion and Analysis
7
Management’s Discussion and Analysis
8
Ø The Town’s primary source of revenue continues to come from Property Taxes as seen in the
comparison of Fiscal Year Revenues from 2017 and 2018 in the chart below.
Revenues – Governmental Revenues by Source Comparison
Fiscal Year 2017 to Fiscal Year 2018
Management’s Discussion and Analysis
9
Ø The Town’s expenses cover a range of services, and total expenditures decreased from Fiscal
Year 2017 to Fiscal Year 2018.
Governmental Expenses Comparison by Function
Fiscal Year 2017 to Fiscal Year 2018
Management’s Discussion and Analysis
10
Financial Analysis of the Governmental Funds
As the Town of Gulf Stream completed the year, the General Fund reported a fund balance of $5,091,562,
an increase of $1,244,434 from the previous fiscal year. The increase was due primarily to an intentional
effort to increase the fund balance through budgeting to continue to restore the Town’s fund balance. The
General Fund ended the 2018 fiscal year with $9,166 in non-spendable fund balance (which includes
inventories and prepaid expenditures), $134,603 in restricted fund balance, which consisted of $17,820
reserved for dredging projects and $116,783 for infrastructure projects, with $4,947,793 in unassigned
fund balance. The increase in Fund Balance from 2017 is the desired outcome of the Town’s budget
process. It is the intent of the Town Commission to proceed with a dynamic 10 Year Capital Improvement
Plan and use the accrued Fund Balance to avoid incurring future debt.
Financial Analysis of the Proprietary Fund
Total net position of the water fund at the end of the fiscal year 2018 was $3,748,721. The net position of
the water fund has increased slightly from last year. Water rates were not increased during Fiscal Year
2018, however water usage decreased from the 2017 usage amounts. The Town has increased the net
position of the Enterprise Fund, also known as the Water Fund, with a combination of reduced
expenditures and increased investment revenue. The net position of the Enterprise Fund will be used in
conjunction with the fund balance of the General Fund to support the 10 Year CIP.
General Fund Budgetary Highlights
At the beginning of Fiscal Year 2018, the Town Commission voted to create a receptionist position from
the contracted administrative position that had been filled full time for three years. This position has been
instrumental in making the internal procedures more efficient and assisting in increasing the Town’s
internal controls.
The Town Commission increased by resolution the budget for revenues and expenditures one time by
Resolution No. 18-015. This adjustment for $215,972 was to account for the increase in building permit
inspection revenue and expenditure with the City of Delray Beach which contractually performs the Town
of Gulf Stream’s building inspections.
The Town Commission has made it a budget priority to increase the Fund Balance. After years of intensive
legal battles over public record requests, the Town’s Fund Balance was severely depleted around 2014.
Since then, the Commission has deemed it proper and appropriate to take necessary measures to restore
the Town’s Fund Balance. Now that the Fund Balance is at appropriate levels again, the Commission
intends to use the accrued funds to fund the adopted 10 Year Capital Improvement Plan. Items included
in the 10 Year CIP are water infrastructure repairs and replacement, road repairs, smart meters and street
lighting.
Management’s Discussion and Analysis
11
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2018, the Town had invested $4,320,535 in a broad range of capital assets
including police equipment, buildings, and infrastructure and water improvements. Additional
information can be found in Note 5 to the financial statements.
Long-Term Liabilities
As of September 30, 2018, the Town had $1,167,984 in long-term liabilities as shown in the following
table. Additional information can be found in Note 6 to the financial statements.
Town of Gulf Stream
Capital Assets
(Net of Depreciation)
September 30, 2017 and 2018
Governmental Activities Business-type Activities Total
2017 2018 2017 2018 2017 2018
Net Capital Assets
Land 376,523$ 376,523$ $ $ 376,523$ 376,523$
Construction in Progress 409,278 518,090 409,278 518,090
Buildings & Improvements 159,750 455,928 1,686,688 1,623,942 1,846,438 2,079,870
Equipment 158,700 158,216 3,484 30,217 162,184 188,433
Infrastructure 1,213,614 1,157,619 1,213,614 1,157,619
Total Net Capital Assets 2,317,865$ 2,666,376$ 1,690,172$ 1,654,159$ 4,008,037$ 4,320,535$
Town of Gulf Stream
Long-Term Liabilities
September 30, 2017 and 2018
Governmental Activities Business-type Activities Total
2017 2018 2017 2018 2017 2018
Promissory Note 1,265,396$ 1,022,686$ $ $ 1,265,396$ 1,022,686$
OPEB (1)66,172 69,996 66,172 69,996
Compensated Absences 86,562 73,000 2,302 2,302 88,864 75,302
Total Long-Term Liabilities 1,418,130$ 1,165,682$ 2,302$ 2,302$ 1,420,432$ 1,167,984$
(1) Restated for the implementation of GASB Statement No. 75
Management’s Discussion and Analysis
12
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Ø The millage rate was decreased to 4.050 mills from the Fiscal Year 2018 millage rate of 4.360 mills,
which is less than the rolled-back rate by 0.24%.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This financial report is designed to provide our residents and creditors with a general overview of the
Town’s finances and demonstrates the Town’s accountability for the money it receives and disburses. If
you have any questions about this report or need additional information, please contact the Town of Gulf
Stream, 100 Sea Road, Gulf Stream, FL 33483.
TOWN OF GULF STREAM, FLORIDA
Statement of Net Position
September 30, 2018
Primary Government
Governmental Business-type
Activities Activities Total
Assets
Cash and cash equivalents 491,339$ 1,498,495$ 1,989,834$
Investments 4,683,950 4,683,950
Accounts receivable 171,406 194,783 366,189
Inventories 7,156 7,156
Internal balances 87,166 (87,166)
Prepaid expenses 2,010 2,010
Restricted assets
Cash and cash equivalents 169,544 502,794 672,338
Investments 1,216,909 1,216,909
Accounts receivable 8,091 25,458 33,549
Assessments receivable 1,021,831 1,021,831
Capital assets
Non-depreciable 894,613 894,613
Depreciable (net of depreciation)1,771,763 1,654,159 3,425,922
Total assets 10,525,778 3,788,523 14,314,301
Liabilities
Accounts payable 137,153 30,869 168,022
Contracts payable 777,881 777,881
Accrued liabilities 76,434 2,371 78,805
Accrued interest payable 10,658 10,658
Damage deposit bonds 30,000 30,000
Unearned revenue 4,260 4,260
Long-term liabilities
Payable within one year 295,370 1,151 296,521
Payable after one year 870,312 1,151 871,463
Total liabilities 2,197,808 39,802 2,237,610
Deferred inflows of resources
OPEB items 925 925
Net position
Net investment in capital assets 2,666,376 1,654,159 4,320,535
Restricted for dredging 17,820 17,820
Restricted for underground utilities 635,777 635,777
Restricted for infrastructure projects 116,783 116,783
Restricted for repairs, replacements
and improvements 528,252 528,252
Unrestricted 4,890,289 1,566,310 6,456,599
Total net position 8,327,045$ 3,748,721$ 12,075,766$
See notes to the financial statements
13
TOWN OF GULF STREAM, FLORIDA
Statement of Activities
For the Year Ended September 30, 2018
Charges for
Functions/Programs Expenses Services
Primary Government
Governmental activities
General government 1,996,475$ 683,726$
Police department 1,561,244 1,709
Fire protection 473,484
Streets 282,897
Sanitation 140,865 142,089
Physical environment 432,068 13,511
Interest on long-term debt 23,918
Total governmental activities 4,910,951 841,035
Business-type activities
Water 931,513 1,020,383
Total primary government 5,842,464$ 1,861,418$
14
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital Primary Government
Grants and Grants and Governmental Business-type
Contributions Contributions activities activities Total
100,124$ $ (1,212,625)$ $(1,212,625)$
(1,559,535) (1,559,535)
(473,484) (473,484)
(282,897) (282,897)
1,224 1,224
27,639 (390,918) (390,918)
(23,918) (23,918)
127,763 (3,942,153)(3,942,153)
138,717 227,587 227,587
127,763$ 138,717$ (3,942,153) 227,587 (3,714,566)
General revenues
Property taxes 4,446,477 4,446,477
Infrastructure surtax 73,237 73,237
Communications services taxes 60,321 60,321
Gas taxes 36,747 36,747
Utility service tax 223,507 223,507
Franchise taxes 150,206 150,206
Intergovernmental shared revenues 113,036 113,036
Unrestricted investment earnings 63,803 16,151 79,954
Miscellaneous revenues 49,650 49,650
Total general revenues 5,216,984 16,151 5,233,135
Change in net position 1,274,831 243,738 1,518,569
Net position - beginning, as restated 7,052,214 3,504,983 10,557,197
Net position - ending 8,327,045$ 3,748,721$ 12,075,766$
See notes to the financial statements.
15
TOWN OF GULF STREAM, FLORIDA
Balance Sheet - Governmental Funds
September 30, 2018
Special Total
General Assessment Governmental
Fund Fund Funds
Assets
Cash and cash equivalents 491,339$ 169,544$ 660,883$
Investments 4,683,950 1,052,306 5,736,256
Accounts receivable 171,406 1,602 173,008
Assessments receivable 1,021,831 1,021,831
Due from other funds 87,166 87,166
Inventories 7,156 7,156
Prepaid expenditures 2,010 2,010
Restricted assets
Investments 164,603 164,603
Accounts receivable 6,489 6,489
Total assets 5,614,119$ 2,245,283$ 7,859,402$
Liabilities, deferred inflows of resources,
and fund equity
Liabilities
Accounts payable 137,153$ $ 137,153$
Contracts payable 191,061 586,820 777,881
Accrued liabilities 76,434 76,434
Deposits payable 30,000 30,000
Total liabilities 434,648 586,820 1,021,468
Deferred inflows of resources
Unavailable revenue 87,909 1,021,831 1,109,740
Total deferred inflows of resources 87,909 1,021,831 1,109,740
Fund equity
Nonspendable
Inventories 7,156 7,156
Prepaids 2,010 2,010
Restricted for
Dredging projects 17,820 17,820
Infrastructure projects 116,783 116,783
Underground utilities 636,632 636,632
Unassigned 4,947,793 4,947,793
Total fund equity 5,091,562 636,632 5,728,194
Total liabilities, deferred inflows of resources,
and fund equity 5,614,119$ 2,245,283$ 7,859,402$
See notes to the financial statements
16
TOWN OF GULF STREAM, FLORIDA
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
September 30, 2018
Fund balance of governmental funds 5,728,194$
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 governmental fund.
Governmental capital assets 5,526,962$
Less accumulated depreciation (2,860,586) 2,666,376
Revenue is recognized when earned in the government wide statements
regardless of when it is collected. Governmental funds recognize
revenue when it is both measurable and available.
Unavailable revenue 1,109,740
Long-term liabilities, including accrued interest payable, are not due
and payable in the current period and therefore, are not reported in
governmental funds.
Note payable (1,022,686)
Accrued interest payable (10,658)
Compensated absences (73,000)
Total other postemployment benefits liability (69,996) (1,176,340)
Deferred outlfows of resources and deferred inflows of resources
related to other postemployment benefit plans are applicable to
future periods and are not reported in the governmental funds.
Other postemployment plan related deferred inflows (925)
Net position of governmental activities 8,327,045$
See notes to the financial statements
17
TOWN OF GULF STREAM, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Funds
For the Year Ended September 30, 2018
Special Total
General Assessment Governmental
Fund Fund Funds
Revenues
Taxes 4,840,289$ $ 4,840,289$
Intergovernmental revenue 152,736 152,736
Licenses and permits 816,843 816,843
Charges for services 143,799 143,799
Fines and forfeits 1,709 1,709
Investment earnings 63,803 27,639 91,442
Special assessments 243,659 243,659
Miscellaneous 37,544 13,511 51,055
Total revenues 6,056,723 284,809 6,341,532
Expenditures
Current
General and administrative 1,940,902 1,940,902
Police department 1,500,789 1,500,789
Fire protection 473,484 473,484
Streets 201,591 201,591
Sanitation 140,865 140,865
Physical environment 432,068 432,068
Capital outlay 554,658 554,658
Debt service
Principal 242,710 242,710
Interest 26,447 26,447
Total expenditures 4,812,289 701,225 5,513,514
Excess (deficiency) of revenues
over (under) expenditures 1,244,434 (416,416) 828,018
Net change in fund balance 1,244,434 (416,416) 828,018
Fund balance - beginning of the year 3,847,128 1,053,048 4,900,176
Fund balance - end of the year 5,091,562$ 636,632$ 5,728,194$
See notes to the financial statements
18
TOWN OF GULF STREAM, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balance of the Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2018
Net change in fund balance of governmental funds 828,018$
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 estimated useful life.
Expenditures for capital assets 554,658$
Less current year depreciation (201,260) 353,398
Gains and losses on the disposal of fixed assets are not reported
in the governmental funds but are reported in the statement of
activities
Net book value of fixed asset disposals (4,887)
Governmental funds include revenues collected within 60 days
of year end as deferred revenue. Government-wide reporting
recognizes revenues when they are earned, regardless of when
they are collected.
Grants 87,909
Special assessments (243,659)
The repayment of the principal of long term debt consumes
financial resources of governmental funds, but it does not
have any effect on net position
Principal payments on debt 242,710
Some expenses reported in the statement of activities do not
require the use of current financial resources and therefore, are
not reported as expenditures of governmental funds.
Change in accrued interest payable 2,529
Change in long-term compensated absences 13,562
Change in other postemployment liability and related deferred amounts (4,749)
Change in net position of governmental activities 1,274,831$
See notes to the financial statements
19
TOWN OF GULF STREAM, FLORIDA
Statement of Net Position
Proprietary Fund
September 30, 2018
Enterprise
Fund
Assets
Current assets
Cash and cash equivalents 1,498,495$
Accounts receivable, net 194,783
Restricted assets
Cash and cash equivalents 502,794
Accounts receivable 25,458
Total current assets 2,221,530
Noncurrent assets
Depreciable capital assets 2,764,660
Less acumulated depreciation (1,110,501)
Total noncurrent assets 1,654,159
Total assets 3,875,689
Liabilities
Current liabilities
Accounts payable 30,869
Accrued liabilities 2,371
Compensated absences payable 1,151
Due to other funds 87,166
Unearned revenue 4,260
Total current liabilities 125,817
Noncurrent liabilities
Compensated absences payable 1,151
Total noncurrent liabilities 1,151
Total liabilities 126,968
Net position
Net investment in capital assets 1,654,159
Restricted for repairs, replacements and improvements 528,252
Unrestricted 1,566,310
Total net position 3,748,721$
See notes to the financial statements
20
TOWN OF GULF STREAM, FLORIDA
Statement of Revenues, Expenses, and Changes
in Fund Net Position
Proprietary Fund
For the Year Ended September 30, 2018
Enterprise
Fund
Operating revenues
Charges for services 1,020,383$
Total operating revenues 1,020,383
Operating expenses
Personnel 83,716
Water purchases 564,321
Repairs and maintenance 35,801
Management fees 90,000
Depreciation expense 70,373
Payment in lieu of taxes 39,700
Other expenses 47,602
Total operating expenses 931,513
Operating income 88,870
Nonoperating revenues
Interest income 16,151
Total nonoperating revenues 16,151
Income before capital contributions 105,021
Capital contributions
Connection fees 2,650
Reserve fees 136,067
Total capital contributions 138,717
Change in net position 243,738
Net position - beginning of the year 3,504,983
Net position - end of the year 3,748,721$
See notes to the financial statements
21
TOWN OF GULF STREAM, FLORIDA
Statement of Cash Flows - Proprietary Fund
For the Year Ended September 30, 2018
Enterprise
Fund
Cash flows from operating activities:
Receipts from customers 1,053,342$
Payments to employees (83,270)
Payments to suppliers (642,801)
Internal activity - payments to other funds (42,534)
Net cash provided by operating activities 284,737
Cash flows from capital financing activities:
Reserve fees received 137,350
Connection fees received 2,650
Acquisition and construction of fixed assets (34,360)
Net cash provided by capital financing activities 105,640
Cash flows from investing activities:
Interest and dividents on investments 16,151
Sale of investments 381,709
Net cash used by investing activities 397,860
Net increase in cash and cash equivalents 788,237
Cash and cash equivalents - beginning of the year 1,213,052
Cash and cash equivalents - end of the year 2,001,289$
Cash flows from operating activities:
Operating income 88,870$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation 70,373
Changes in assets and liabilities:
Decrease (increase) in:
Accounts receivable 34,470
Prepaid expenses 3,372
Inventory 3,096
Increase (decrease) in:
Accounts payable (1,545)
Accrued liabilities 446
Due to other funds 87,166
Unearned revenue (1,511)
Total adjustments 195,867
Net cash provided by operating activities 284,737$
See notes to the financial statements
22
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
23
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Gulf Stream, Florida (the “Town”) have been prepared in
conformity with generally accepted accounting principles (GAAP) as applied to governmental
units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting
body for establishing governmental accounting and financial reporting principles. The Town’s
significant accounting policies are described below.
Reporting Entity
The Town of Gulf Stream, Florida is a municipal corporation organized pursuant to Chapter 31276,
1955 Laws of Florida. The Town operates under the Commission/Mayor form of government. The
Town's major operations include general government, public safety, streets, sanitation, physical
environment, and water services.
As required by generally accepted accounting principles, these financial statements include the
Town (the primary government) and its component units. Component units are legally separate
entities for which the Town is financially accountable. The Town is financially accountable if
a) The Town appoints a voting majority of the organization’s governing board and (1) the
Town is able to impose its will on the organization or (2) there is a potential for the
organization to provide specific financial benefits to or impose specific financial burdens on
the Town, or
b) the organization is fiscally dependent on the Town and (1) there is a potential for the
organization to provide specific financial benefits to the Town or (2) impose specific
financial burdens on the Town.
Organizations for which the Town is not financially accountable are also included when doing so is
necessary in order to prevent the Town’s financial statements from being misleading.
Based upon application of the above criteria, management of the Town of Gulf Stream has
determined that no component units exist which would require inclusion in this report. Further, the
Town is not aware of any entity that would consider the Town to be a component unit.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
24
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Government-wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements. The
government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the primary government.
Governmental activities, which normally are supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function
and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function. Taxes and other items not included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental and enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses recorded when a liability is incurred, regardless of the
timing of related cash flows. The Town does not accrue property tax revenues since the collection
of these taxes coincides with the fiscal year in which levied, and since the Town consistently has no
material uncollected property taxes at year end. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to use
restricted resources first, then unrestricted resources as they are needed.
As a general rule the effect of inter-fund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other
charges between the Town’s water and sewer function and various other functions of the Town.
Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
25
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental Funds
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough afterwards to pay liabilities of the
current period. The Town considers revenues collected within 60 days of the year end to be
available to pay liabilities of the current period. Expenditures are generally recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures relating to compensated absences and claims and judgments are recorded only when
payment is due.
Fines and permit revenues are not susceptible to accrual because generally, they are not measurable
until received in cash. Property taxes, franchise taxes, licenses, interest revenue, intergovernmental
revenues, and charges for services associated with the current fiscal period are all considered to be
susceptible to accrual and have been recognized as revenues of the current fiscal period. All other
revenue items are considered to be measurable and available only when cash is received.
The Town reports the General Fund and the Special Assessment Fund as major governmental
funds. The General Fund is the general operating fund of the Town, and it is used to account for all
financial resources except those required to be accounted for in another fund. The Special
Assessment Fund is a special revenue fund used to account for financial resources relating to the
underground utility project.
Proprietary Funds
Proprietary Funds are used to account for operations (a) that are financed and operated in a
manner similar to private business enterprises where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges or (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred,
and net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes. Proprietary funds distinguish operating revenues and expenses
from non-operating items. Operating revenues and expenses generally result from providing
services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. Operating expenses report on the costs to maintain the proprietary systems,
the cost of sales and services, administrative expenses and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
26
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary Funds (Continued)
The Town reports the Municipal Water Fund as a major proprietary fund. The Municipal Water
Fund was established to account for the provision of water services to Town residents.
Cash and Cash Equivalents
Cash and cash equivalents include amounts on deposit in demand accounts. For the purposes of the
statement of cash flows, the Town considers amounts on deposit in demand accounts to be cash
equivalents.
Investments
Investments are stated at fair value. Fair value is defined as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. Fair value is a market-based measurement, not an entity-specific
measurement. For some assets and liabilities, observable market transactions or market
information might be available; for others, it might not be available. However, the objective of
fair value measurement in both cases is the same, that is, to determine the price at which an
orderly transaction to sell the asset or to transfer the liability would take place between market
participants at the measurement date under current market conditions. Fair value is an exit price
at the measurement date from the perspective of a market participant that controls the asset or is
obligated for the liability. The Town categorizes investments reported at fair value in accordance
with the fair value hierarchy established by GASB Statement No. 72, Fair Value Measurement
and Application.
Accounts Receivable
Trade and other receivable are shown net of an allowance for estimated uncollectible amounts.
Charges for solid waste collection and water usage are billed on a bi-monthly cycle. The Town
recognizes revenue and the related receivables for the estimated unbilled usage at year end.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
bridges, and sidewalks) are reported in the applicable governmental or business-type activities
columns in the governmental-wide financial statements and in the Water Enterprise Fund.
Capital assets are defined by the Town as assets with an estimated life in excess of one year and
an initial value in excess of the capitalization thresholds presented below. Purchased capital
assets are recorded at fair value on the acquisition date. Donated capital assets, donated works of
art and similar items, and capital assets received in a service concession arrangement are reported
at acquisition value rather than fair value.
Effective October 1, 2011, the Town increased the capitalization threshold from $1,000 for all
classes of capital assets to the following amounts:
Buildings $5,000
Equipment 5,000
Infrastructure 10,000
Water Infrastructure 10,000
The change was made prospectively, and all capital assets placed into service prior to October 1,
2011 will remain capitalized. The Town is a Phase 3 government under GASB 34 and has
elected not to report major general infrastructure assets retroactively. Depreciation has been
provided over the useful lives using the straight-line method. The estimated useful lives are as
follows:
Buildings 10-30 years
Equipment 3-15 years
Infrastructure 25-50 years
Water Infrastructure 40-50 years
Inventory
Inventories consist of expendable supplies held for consumption which are carried at cost (first-in,
first-out). The Town accounts for inventories using the consumption method, under which
expenditures are recognized only when inventory items are used. Reported inventory is equally
offset by nonspendable fund balance which indicates that it does not constitute “available spendable
resources” even though it is a component of net current assets.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Compensated Absences
Compensated absences are absences for which employees will be paid, such as vacation, sick
leave, and sabbatical leave. A liability for compensated absences that is attributable to services
already rendered and that is not contingent on a specific event that is outside the control of the
government and its employees is accrued as employees earn the rights to the benefits.
Compensated absences that relate to future services or that are contingent on a specific event that
is outside the control of the government and its employees are accounted for in the period in
which such services are rendered or such events take place. All vacation, sick leave, and
sabbatical leave is accrued when incurred in the government-wide and proprietary fund financial
statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements. Town employees
may accumulate up to 300 hours of vacation leave and 120 days of sick leave. Accumulated
vacation is payable to employees upon termination or retirement at the rate of pay on that date.
Sick leave can only be used for paid time off and is not paid to any employee upon termination.
Interest Cost
Interest costs in governmental funds are charged to expenditures as incurred. Construction period
interest incurred in governmental funds is not capitalized. Construction period interest incurred in
proprietary funds is capitalized and included in the cost of the assets in accordance with generally
accepted accounting principles.
Interfund Transactions
Transactions between funds consist of loans, services provided, reimbursements, or transfers. The
current portion of interfund loans are reported in the fund financial statements as “due from other
funds” and “due to other funds” while the non-current portion of interfund loans are reported as
“advances to other funds” and “advances from other funds”. Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-
wide financial statements as “internal balances”. Services deemed to be reasonably equivalent in
value, are treated as revenue and expenditures/expenses. Reimbursements occur when one fund
incurs a cost, charges the appropriate benefiting fund and reduces its related cost. All other
interfund transactions are presented as transfers.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Unearned Revenues
The government reports unearned revenue on its government wide statement of net position,
proprietary statement of net position, and governmental funds balance sheet. Unearned revenue
arises when the government receives resources prior to revenue recognition. In subsequent periods,
when revenue recognition criteria are met the liability for unearned revenue is removed and revenue
is recognized.
Unavailable Revenue
The Town reports unavailable revenue on its governmental funds balance sheet for resource inflows
that do not qualify for recognition as revenue in a governmental fund because they are not yet
considered available. In subsequent periods when the resources are considered available the liability
for unavailable revenue is removed and revenue is recognized.
Deferred Outflows of Resources
A deferred outflow of resources is a consumption of net position that is applicable to a future
reporting period.
Deferred Inflows of Resources
A deferred inflow of resources is an acquisition of net position that is applicable to a future
reporting period.
Long-Term Liabilities
In the government-wide financial statements and proprietary fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund statement of net position.
Fund Balance
In the fund financial statements, governmental funds report fund balance classifications that
comprise a hierarchy based primarily on the extent to which the Town is bound to honor constraints
on the specific purposes for which amounts in those funds can be spent. Fund balance is reported
under the following categories:
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Balance (Continued)
1. Nonspendable fund balances – Includes amounts that cannot be spent
because they are either (a) not in spendable form or (b) legally or
contractually required to be maintained intact. The “not in spendable form”
criterion includes items that are not expected to be converted to cash, for
example, inventories and prepaid amounts. It also includes the long-term
amount of loans and notes receivable, as well as property acquired for resale.
However, if the use of the proceeds from the collection of those receivables
or from the sale of those properties is restricted, committed, or assigned, then
they should be included in the appropriate fund balance classification
(restricted, committed, or assigned), rather than the nonspendable fund
balance. The corpus (or principal) of a permanent fund is an example of an
amount that is legally or contractually required to be maintained intact.
2. Restricted fund balance – Includes amounts that are restricted to specific
purposes when constraints placed on the use of resources are either
(a) externally imposed by creditors (such as through debt covenants),
grantors, contributors, or laws or regulations of other governments, or
(b) imposed by law through constitutional provisions or enabling legislation.
3. Committed fund balance – Includes amounts that can be used only for
specific purposes pursuant to constraints imposed by an ordinance, the
Town’s highest level of decision making authority. Those committed
amounts cannot be used for any other purpose unless the Town removes or
changes the specified use by taking the same type of action (an ordinance) it
employed to previously commit those amounts.
4. Assigned fund balance – Includes amounts intended to be used by the Town
for specific purposes, but are neither restricted nor committed. Intent should
be expressed by the Town Commission or the Town Manager to which the
Town Commission has delegated authority to assign amounts to be used for
specific purposes. The authority for making an assignment is not required to
be the Town’s highest level of decision making authority. Constraints
imposed on the use of assigned amounts are more easily removed or
modified than those imposed on amounts classified as committed.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
31
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Balance (Continued)
5. Unassigned fund balance – Includes the residual classification for the general
fund. This classification represents fund balance that has not been assigned to
other funds and that has not been restricted, committed, or assigned to
specific purposes within the general fund. The general fund should be the
only fund that reports a positive unassigned fund balance amount. In other
governmental funds, it may be necessary to report a negative unassigned fund
balance if expenditures incurred for specific purposes exceeded the amounts
restricted, committed, or assigned to those purposes.
When an expenditure is incurred for purposes for which both restricted and unrestricted
(committed, assigned, or unassigned) amounts are available, it is the Town’s policy to reduce
restricted amounts first. When an expenditure is incurred for purposes for which amounts in any of
the unrestricted fund balance classifications could be used, it is the Town’s policy to reduce
committed amounts first, followed by assigned amounts, and then unassigned amounts.
Net Position
Net position is the residual of all other elements presented in a statement of financial position. It
is the difference between (a) assets plus deferred outflows of resources and (b) liabilities and
deferred inflows of resources. Net position is displayed in following three components:
1. Net investment in capital assets – Consists of capital assets including
restricted capital assets, net of accumulated depreciation and reduced by
the outstanding balances of any bonds, notes or other borrowings that are
attributable to the acquisition, construction or improvement of those
assets.
2. Restricted net position – Consists of net position with constraints placed
on the use either by: (a) external groups such as creditors, grantors,
contributors, or laws or regulations of other governments; or (b) law
through constitutional provisions of enabling legislation.
3. Unrestricted net position – All other net position that does not meet the
definition of “restricted” or “net investment in capital assets”.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
32
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgetary Data
Formal budgetary integration is employed as a management control device during the year for the
General Fund and the Municipal Water Fund. Appropriations are legally controlled at the
department level. All budgets are legally enacted and are adopted on a basis consistent with
generally accepted accounting principles. Budgeted amounts are as originally adopted, or as
emended by appropriate action. The Special Assessment Special Revenue Fund is not budgeted
because it is not legally required to be budgeted.
Property Taxes
Under Florida law, the assessment of all properties and the collection of all county, municipal,
and school board property taxes are consolidated in the offices of the County Property Appraiser
and County Tax Collector. The laws of the State regulating tax assessment are also designed to
assure a consistent property valuation method statewide.
The tax levy of the Town is established by the Town Commission prior to October 1 of each
year, and the Palm Beach County Property Appraiser incorporates the Town's millages into the
total tax levy, which includes Palm Beach County and Palm Beach County School Board tax
requirements.
All property is reassessed according to its fair market value January 1 of each year, which is also
the lien date. Each assessment roll is submitted to the Executive Director of the State Department
of Revenue for review to determine if the rolls meet all the appropriate requirements of state
statutes.
All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment
roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April
1st following the year in which they are assessed. Discounts are allowed for early payment at the
rate of 4% in the month of November, 3% in the month of December, 2% in the month of
January and 1% in the month of February. The taxes paid in March are without discount.
Delinquent taxes on real property bear interest of 18% per year. On or prior, to June 1 following
the tax year, certificates are sold for all delinquent taxes on real property. After the sale, tax
certificates bear interest of 18% per year or any lower rate bid by the buyer. Application for a tax
deed on any unredeemed tax certificates may be made by the certificate holder after a period of
two years. Delinquent taxes on personal property bear interest of 18% per year until the tax is
satisfied either by seizure and sale of the property or by the five-year statute of limitations.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
33
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Use of Estimates
The financial statements and related disclosures are prepared in conformity with accounting
principles generally accepted in the United States. Management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and revenue and expenses during the
period reported. These estimates include assessing the collectibility of accounts receivable, the use
and recoverability of inventory, and useful lives and impairment of tangible and intangible assets,
among others. Estimates and assumptions are reviewed periodically and the effects of revisions are
reflected in the financial statements in the period they are determined to be necessary. Actual
results could differ from the estimates.
Implementation of Governmental Accounting Standards Board Statements
The Town implemented the following Governmental Accounting Standards Board Statements
during the fiscal year ended September 30, 2018:
In June 2015 the GASB issued Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. This Statement will improve accounting and
financial reporting by state and local governments for postemployment benefits other than
pensions. It also improves information provided by state and local governmental employers about
financial support for OPEB that is provided by other entities.
In March 2016 the GASB issued Statement No. 81, Irrevocable Split-Interest Agreement. This
Statement will improve accounting and financial reporting for irrevocable split-interest
agreements by providing recognition and measurement guidance for situations in which a
government is a beneficiary of the agreement. Implementation of the Statement did not impact
the Town’s financial statements.
In March 2017 the GASB issued Statement No. 85, Omnibus 2017. This Statement addresses
practice issues that have been identified during implementation and application of certain GASB
Statements. This Statement addresses a variety of topics including issues related to blending
component units, goodwill, fair value measurement and application, and postemployment
benefits (pensions and other postemployment benefits).
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
34
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Implementation of Governmental Accounting Standards Board Statements (Continued)
In May 2017 the GASB issued Statement No. 86, Certain Debt Extinguishment Issues. This
Statement will improve consistency in accounting and financial reporting for in-substance
defeasance of debt by providing guidance for transactions in which cash and other monetary
assets acquired with only existing resources – resources other than proceeds of refunding debt –
are placed in an irrevocable trust for the sole purpose of extinguishing debt. Implementation of
the Statement did not impact the Town’s financial statements.
In June 2018 the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before
the End of a Construction Period. This Statement will enhance the relevance and comparability
of information about capital assets and the cost of borrowing for a reporting period and simplify
accounting for interest cost incurred before the end of a construction period. Implementation of
the Statement did not impact the Town’s financial statements.
Recently Issued Accounting Pronouncements
A brief description of new accounting pronouncements that might have a significant impact on
the Town’s financial statements is presented below. Management is currently evaluating the
impact of adoption of these statements in the Town’s financial statements.
In November 2016 the GASB issued Statement No. 83, Certain Asset Retirement Obligations.
This Statement establishes criteria for determining the timing and pattern of recognition of a
liability and a corresponding deferred outflow of resources for an asset retirement obligation.
This Statement is effective for the fiscal year ending September 30, 2019.
In January 2017 the GASB issued Statement No. 84, Fiduciary Activities. This Statement will
improve guidance regarding the identification of fiduciary activities for accounting and financial
reporting purposes and how those activities should be reported. This Statement is effective for
the fiscal year ending September 30, 2020.
In May 2017 the GASB issued Statement No. 87, Leases. This Statement will increase the
usefulness of governments’ financial statements by requiring recognition of certain lease assets
and liabilities for leases that previously were classified as operating leases and recognized as
inflows of resources or outflows of resources based on the payment provisions of the contract. It
establishes a single model for lease accounting that is based on the foundational principle that
leases are financings of the right to use an underlying asset. This Statement is effective for the
fiscal year ending September 30, 2021.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
35
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recently Issued Accounting Pronouncements (Continued)
In March 2018 the GASB issued Statement No. 88, Certain Disclosures Related to Debt,
including Direct Borrowings and Direct Placements. This Statement will improve the including
direct borrowings and direct placements. It will also clarify which liabilities governments should
include when disclosing information related to debt. This Statement is effective for the fiscal year
ending September 30, 2019.
In August 2018 the GASB issued Statement No. 90, Major Equity Interests. This Statement will
improve consistency and comparability of reporting a government’s majority equity interest in a
legally separate organization and to improve the relevance of financial statement information for
certain component units. This Statement is effective for the fiscal year ending September 30,
2020.
NOTE 2 – DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2018, the carrying amount of the Town's deposits was $8,312,831 and the
bank balances totaled $8,383,990. The Town also had cash on hand of $200. Cash and cash
equivalents included a cashier’s check of $250,000, which was used to purchase a certificate of
deposit effective October 2, 2018. Town’s deposits include checking accounts, money market
checking accounts, and certificates of deposit. The certificates of deposit and money market
accounts are reported as investments in the balance sheet and statement of net position.
In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are
held in banking institutions approved by the State Treasurer of the State of Florida to hold public
funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State
Treasure requires all Florida qualified public depositories to deposit with the Treasure or other
banking institution eligible collateral. In the event of failure of a qualified public depository, the
remaining public depositories would be responsible for covering any resulting losses. The Town’s
deposits are considered insured for custodial credit risk purposes.
Investments
Florida statutes authorize the Town to invest in the Local Government Surplus Funds Trust Fund
administered by the State Treasurer, negotiable direct obligations of or obligations unconditionally
guaranteed by the U.S. Government, interest-bearing time deposits in financial institutions located
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
36
NOTE 2 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
in Florida and organized under Federal or Florida laws, obligations of the Federal Farm Credit
Banks, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank or its district
banks, or obligations guaranteed by the Government National Mortgage Association, and
obligations of the Federal National Mortgage Association.
GASB Statement No. 72, Fair Value Measurement and Application, requires governments to
disclose the fair value hierarchy for each type of asset or liability measured at fair value in the
notes to the financial statements. The standard also requires governments to disclose a description
of the valuation techniques used in the fair value measurement and any significant changes in
valuation techniques. GASB 72 establishes a three-tier fair value hierarchy. The hierarchy is
based on valuation inputs used to measure the fair value as follows:
Level 1: Inputs are directly observable, quoted prices in active markets for
identical assets or liabilities.
Level 2: Inputs are other than quoted prices included within Level 1 that are for
the asset or liability, either directly or indirectly. These inputs are
derived from or corroborated by observable market data through
correlation or by other means.
Level 3: Inputs are unobservable inputs used only when relevant Level 1 and
Level 2 inputs are unavailable.
The level in which an asset is assigned is not indicative of its quality but an indication of the
source of valuation inputs.
Certificates of deposit are exempt from reporting under the fair value hierarchy, and their fair
value is measured at cost. As of September 30, 2018, the Town held the following certificates of
deposit:
Description Cost Days to Maturity
Flagler Bank CD $ 263,847 549
Florida Community Bank CD 243,186 431
Legacy Bank CD 273,954 535
$ 780,987
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
37
NOTE 2 – DEPOSITS AND INVESTMENTS (Continued)
Credit Risk
Credit risk is the risk that an issuer or other counter party to an investment will not fulfill their
obligations. The Town’s investment policies limit its investments to high quality investments to
control credit risk.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The Town does not have a formal investment policy that limits investment maturities
as a means of managing exposure to fair value losses arising from increasing interest rates.
NOTE 3 – RECEIVABLES
As of September 30, 2018, the Town’s receivables for the individual major funds, including
applicable allowances for uncollectible accounts, are as follows:
General
Fund
Special
Assessment
Fund
Water
Fund
Total
Taxes $ 28,116 $ $ $ 28,116
Accounts - billed 26,127 245,241 271,368
Other 1,602 1,602
Due from other governments 123,652 123,652
Special assessments 1,021,831 1,021,831
Subtotal 177,895 1,023,433 245,241 1,446,569
Allowance for uncollectibles (25,000) (25,000)
Net receivables $ 177,895 $ 1,023,433 $ 220,241 $ 1,421,569
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
38
NOTE 4 – INTERFUND RECEIVABLES AND PAYABLES
Individual interfund receivables and payables at September 30, 2018, are as follows:
Receivable Fund Payable Fund Amount
General Fund Water Fund 87,166$
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2018, was as follows:
Governmental Activities
Beginning
Balance
Additions
Deletions
Ending
Balance
Assets not being depreciated
Land $ 376,523 $ $ $ 376,523
Construction in progress 409,278 485,645 (376,833) 518,090
Total not being depreciated 785,801 485,645 (376,833) 894,613
Assets being depreciated
Buildings 933,480 325,279 (26,588) 1,232,171
Equipment 676,934 84,527 (77,962) 683,499
Infrastructure 2,680,639 36,040 2,716,679
Total being depreciated 4,291,053 445,846 (104,550) 4,632,349
Total at historical cost 5,076,854 931,491 (481,383) 5,526,962
Accumulated depreciation
Buildings 773,730 29,101 (26,588) 776,243
Equipment 518,234 80,124 (73,075) 525,283
Infrastructure 1,467,025 92,035 1,559,060
Total accumulated depreciation 2,758,989 201,260 (99,663) 2,860,586
Governmental activities, net $2,317,865 $ 730,231 $ (381,720) $2,666,376
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
39
NOTE 5 – CAPITAL ASSETS (Continued)
Business-Type Activities
Beginning
Balance
Additions
Deletions
Ending
Balance
Assets being depreciated
Water system improvements $2,658,922 $ $ $2,658,922
Equipment 71,378 34,360 105,738
Total at historical cost 2,730,300 34,360 2,764,660
Accumulated depreciation
Water system improvements 972,234 62,746 1,034,980
Equipment 67,894 7,627 75,521
Total accumulated depreciation 1,040,128 70,373 1,110,501
Business-type activities, net $1,690,172 $(36,013) $ $1,654,159
Depreciation expense was charged to functions and programs of the primary government as
follows:
Governmental activities:
General government $ 66,490
Police department 53,763
Streets 81,007
Total governmental activities $ 201,260
Business-type activities:
Municipal water $ 70,373
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
40
NOTE 6 – LONG-TERM LIABILITIES
Governmental Activities
On September 6, 2012, the Town issued its Promissory Note, Undergrounding Project in the
principal amount of $2,427,895 to provide funds for the project of undergrounding the electric,
cable television, and telephone utility facilities serving the municipality. Such debt shall not be a
general obligation of the Town. The Town covenants that, so long as the Note shall remain unpaid
or any other amounts are owed by the Town under the Note, it will appropriate in its annual budget,
by amendment, if required, from pledged funds and available non ad valorem revenues, amounts
sufficient to pay principal and interest on the Note as they become due. The covenant to budget and
appropriate does not create a lien upon or pledge of the available non ad valorem revenues. Pledged
funds consist of amounts on deposit in the note proceeds fund and the payment fund and special
assessments.
Principal and interest payments on the Note are due in annual installments commencing on April 1,
2013 and on each April 1 thereafter until final maturity on April 1, 2022. The Note bears interest at
the rate of 2.09%. At September 30, 2018, principal and interest to maturity on April 1, 2022 to be
paid from pledged funds totaled $1,076,563. Principal and interest paid for the current fiscal year
was $269,157 and pledged special assessments were $243,659.
Annual debt service requirements to maturity are as follows:
Year Ended
September 30 Principal Interest Payment
2019 $ 247,783 $ 21,374 $ 269,157
2020 252,961 16,196 269,157
2021 258,248 10,909 269,157
2022 263,694 5,398 269,092
$ 1,022,686 $ 53,877 $ 1,076,563
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
41
NOTE 6 – LONG-TERM LIABILITIES (Continued)
Changes in the Town’s long-term liabilities for the year ended September 30, 2018 are summarized
as follows:
Beginning
Ending
Due Within
Governmental Activities Balance Additions Deletions Balance One Year
Promissory Note $1,265,396 $ $242,710 $1,022,686 $247,783
OPEB (1) 66,172 8,401 4,577 69,996
Compensated absences 86,562 112,177 125,739 73,000 47,587
Total Governmental Activities $1,418,130 $120,578 $373,026 $1,165,682 $295,370
(1) Restated for the implementation of GASB Statement No. 75
Beginning
Ending
Due Within
Business-type Activities Balance Additions Deletions Balance One Year
Compensated absences $ 2,302 $ 3,683 $ 3,683 $ 2,302 $ 1,151
Compensated absences of the governmental activities are liquidated by the General Fund.
Interest Expense
The total interest cost incurred on all Town debt for the year ended September 30, 2018, was
$23,918 and total interest paid during the year was $26,447. No interest was capitalized in the
Enterprise Fund during the year.
NOTE 7 – DEFINED CONTRIBUTION EMPLOYEE RETIREMENT PLAN
On November 28, 1990, the Town passed Resolution No. 90-8, authorizing the establishment of a
401(a) plan (the "Plan"). All full-time employees are eligible to participate in the Plan upon
completion of six months of service and attaining age 18. This defined contribution pension plan is
administered by the International City Management Association Retirement Corporation. In a
defined contribution plan, benefits depend solely on amounts contributed to the Plan plus
investment earnings. The plan requires that the Town and the employees contribute an amount
equal to 20.92% and 8.0%, respectively, of the employee’s base salary each month. The Town’s
contribution for each employee and investment earnings allocated to the employee’s account vest at
a rate of 20% per year of service completed. Employees are eligible for normal retirement upon
attainment of the age of 59-1/2. Town contributions and interest forfeited by employees who leave
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
42
NOTE 7 – DEFINED CONTRIBUTION EMPLOYEE RETIREMENT PLAN (Continued)
employment before satisfying the vesting requirement are used to reduce the Town’s current-period
contribution requirement.
For the fiscal year ended September 30, 2018, the Town recognized pension expense of $299,328
for the Plan, and as of the fiscal year end, the Town reported a payable in the amount of $12,695
for outstanding contributions to the Plan. There were no forfeitures for the fiscal year.
Because the Town does not hold or administer funds for the Plan, it does not meet the criteria for
inclusion in the Town’s financial statements as a fiduciary fund. The Plan does not issue a stand-
alone financial report.
NOTE 8 – DEFERRED COMPENSATION PLAN
The Town offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all Town employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to employees
until termination, retirement, death, or unforeseeable emergency.
Assets of the plan are invested in either mutual funds or insurance contracts. In 1998, the Plan was
amended to conform to changes in the Internal Revenue Code brought about by the Small Business
Job Protection Act of 1996 (the “Act”). The Act requires that eligible deferred compensation plans
established and maintained by governmental employers be amended to provide that all assets of the
plan be held in trust, or under one or more appropriate annuity contracts or custodial accounts, for
the exclusive benefit of plan participants and their beneficiaries. As a result of this change, plan
assets are no longer subject to the claims of the Town’s general creditors.
Because the Town has little administrative involvement and does not perform the investing function
for funds in the Plan, the Town’s activities do not meet the criteria for inclusion in the fiduciary
funds of a government.
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The Town provides a single employer defined benefit other postemployment benefit plan (OPEB)
to all of its employees. The plan allows its employees and their beneficiaries to continue to obtain
healthcare benefits upon retirement. The benefits of the plan are in accordance with Florida
Statutes, which are the legal authority for the plan. The plan has no assets and does not issue a
separate financial report.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
43
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Contributions
The Town does not directly make a contribution to the plan on behalf of retirees. Retirees and their
beneficiaries pay the same group rates as are charged to the Town for active employees by its
healthcare insurance provider. However, the Town’s actuaries in their actuarial valuation, calculate
an offset to the cost of these benefits as an Employer Contribution, based upon an implicit rate
subsidy. This offset equals the total age-adjusted costs paid by the Town or its active employees for
coverage of the retirees and their dependents for the year net of the retiree’s own payments for the
year.
Plan Membership
The following table provides a summary of the participants in the plan as of October 1, 2016, the
latest valuation date:
Active plan members 14
Inactive plan members or beneficiaries currently receiving benefits
Inactive plan members or beneficiaries entitled to but not yet receiving benefits
14
Discount Rate
The Town does not have a dedicated trust to pay retiree healthcare benefits. For plans that do not
have assets held in a dedicated trust, the discount rate should equal the tax-exempt municipal bond
rate based on the S&P Municipal Bond 20-year High Grade Index as of the measurement date. As
of the measurement date of September 30, 2018, the rate was 3.64% based on the S&P Municipal
Bond 20-year High Grade Index at September 30, 2018. The S&P Municipal Bond 20-year High
Grade Index consists of 20-year tax exempt general obligation municipal bonds with an average
rating of AA/Aa or higher (or equivalent quality on another rating scale) on the Standard & Poor’s
Corporation’s and Moody’s Investors Service’s rating scales. The discount rate as of the beginning
of the measurement year was 3.35%.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
44
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
At September 30, 2018, the Town reported a total OPEB liability of $69,996. For the fiscal year
ended September 30, 2018, the Town recognized OPEB expense of $4,749. As of September 30,
2018, the Town reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Assumption changes $ (925)$
$ (925)$
Amounts reported as deferred outflows of resources and deferred inflows of resources will be
recognized in OPEB expense as follows:
Fiscal Year Ending
September 30 Amortization
2019 (165)$
2020 (165)
2021 (165)
2022 (165)
2023 (165)
2024 (100)
(925)$
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
45
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Actuarial Methods and Assumptions
Significant methods and assumptions were as follows:
Valuation date:October 1, 2016
Measurement date:September 30, 2018
Actuarial cost method:Entry Age Cost Method
Discount rate:3.64%
Cost-of-living increases:Retireecontributions,healthinsurancepremiums,andtheimpliedsubsidyhavebeen
assumed to increase in accordance with the healthcare cost trend rates.
Healthcare cost trend rates:Increasesinhealthcarecostsareassumedtobe8.00%forthe2016/17fiscalyear
graded down by 0.50% per year to 5.00% for the 2022/23 and later fiscal years.
Age-related morbidity:Healthcare costs are assumed to increase at the rate of 3.50% for each year of age.
Implied health subsidy:Becausetheinsurancecarrierchargesthesamemonthlyrateforhealthinsurance
regardelssofage,animpliedmonthlysubsidyof$300.00foreachoftheretireeand
theretiree'sspousehasbeenassumedatage60forthe2016/17fiscalyear;atother
ages,theimpliedsubsidywasdevelopedbasedontheage relatedmorbidity
assumptionand,forotherfiscalyears,theimpliedsubsidywasincreasedin
accordance with the healthcare cost trend rates.
Mortality basis:Sex-distinctratessetforthintheRP-2000CombinedMortalityTable(general
employees)orRP-2000BlueCollarMortalityTable(policeofficers),bothwithfull
generational improvements in mortality using Scale BB.
Retirement:Withrespecttogeneralemployees,retirementisassumedtooccuratage62withsix
yearsofserviceoratanyagewith30yearsofservice;withrespecttopolice
officers,retirementisassumedtooccuratage55with10yearsofserviceoratage
52 with 25 years of service.
Other decrements:AssumedemploymentterminationisbasedontheScale155table;assumeddisability
isbasedontheWyatt1985DisabilityStudy(Class1rateswereusedforgeneral
employees and Class 4 rates were used for police officers).
Health coverage election:25%ofemployeesareassumedtoelectmedicalcoverageuntilage65upon
retirementordisability;ofthoseelectingcoverageforthemselves,50%arealso
assumed to elect covearge for their spouse.
Spouses and dependents:Husbandsareassumedtobethreeyearsolderthanwives;retireesarenotassumed
to have any dependent children.
COBRA:FuturehealthcarecoverageprovidedsolelypursuanttoCOBRAwasnotincludedin
theOPEBvaluation;becausetheCOBRApremiumisdeterminedperiodicallybased
onplanexperience,theCOBRApremiumtobepaidbytheparticipantisassumedto
fully cover the cost of providing healthcare coverage during the relevant period.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
46
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Changes in Assumptions
The discount rate was changed from 3.35% as of the beginning of the measurement period to 3.64%
as of September 30, 2018. This change is reflected in the schedule of changes in total OPEB
liability. There were no benefit changes during the year.
Total OPEB Liability
The components of the total OPEB liability as of September 30, 2018 were as follows:
Total
OPEB
Description Liability
Balance September 30, 2017, as restated 66,172$
Changes for the year:
Service cost 5,843
Expected interest growth 2,558
Benefit payments & refunds (3,487)
Assumptions changes (1,090)
Net change 3,824
Balance September 30, 2018 69,996$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following table presents the total OPEB liability of the Town calculated using the single
discount rate of 3.64% as well as what the Town’s total OPEB liability would be if it were
calculated using a discount rate one percentage point lower or one percentage point higher than the
current rate.
1% Decrease Discount Rate 1% Increase
Discount Rate Sensitivity 2.64%3.64%4.64%
Total OPEB Liability 73,871$ 69,996$ 66,448$
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
47
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rates
The following table presents the total OPEB liability of the Town calculated using the assumed
trend rates (8.00% decreasing to 5.00%) as well as what the Town’s total OPEB liability would be
if it were calculated using a trend rate that is one percentage point lower or one percentage point
higher than the assumed trend rates.
Healthcare
Cost
1% Decrease Trend Rate 1% Increase
Healthcare Trend Rate Sensitivity 4.00% - 7.00%5.00% - 8.00%6.00% - 9.00%
Total OPEB Liability 64,775$ 69,996$ 75,851$
NOTE 10 – INTERLOCAL AGREEMENTS
Interlocal Agreement for Fire and EMS Service - City of Delray Beach
On July 14, 2009, the Town entered into an agreement with the City of Delray Beach whereby the
City will provide the Town with fire and emergency medical services. The term of the agreement is
for 10 years beginning on October 1, 2009, and extending through September 30, 2019. On October
4, 2011, the agreement was amended to increase the service fee for additional areas annexed into
the Town. The Town paid an annual service fee of $473,484 for the fiscal year ended September
30, 2018. The annual service fees for future years will be the current year fee adjusted annually
based on the “All Urban Customers – United States April Consumer Price Index” or an increase of
five percent (5.0%), whichever is greater. The annual service for the fiscal year ending September
30, 2019 will be $497,158.
Interlocal Agreement for Dispatch Service - City of Delray Beach
On October 30, 2017, the Town entered into a new agreement with the City of Delray Beach for
dispatch services. The term of the agreement is for five years beginning October 1, 2017 and ending
September 30, 2022. The basic service fee under the agreement was $55,961 for the initial contract
year. Each year thereafter the basic service fee shall be adjusted from the previous year in an
amount based upon the All Urban Consumers-United States Consumer Price Index for April. For
the year ended September 30, 2018, the Town paid $55,961 pursuant to the agreement.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
48
NOTE 10 – INTERLOCAL AGREEMENTS (Continued)
Interlocal Agreement for Water Purchase - City of Delray Beach
In June 1998, the Town entered into an agreement with the City of Delray Beach for the purchase of
treated, potable water. The term of the agreement is for a period of twenty-five years. Under the
terms of the agreement, the Town is to pay the City the prevailing water rate charged by the City to
non-residential users plus a surcharge of 25%. For the year ended September 20, 2018, the Town
paid $564,321 pursuant to the agreement.
Interlocal Agreement for Permitting and Inspection Services - City of Delray Beach
In November 2009, the Town entered into an agreement with the City of Delray Beach to provide
the Town with the expertise and assistance of the City of Delray Beach Community Improvement
Department (the “Department”) for the inspection and permitting of certain construction projects
within the Town’s limits for compliance with the Florida Building Code ( the “Code”). Under the
terms of the agreement the Department shall review and process all plans, checking for compliance
with the Code and to determine the subsidiary permits necessary and the amount of fees. For
processing and the inspection service, the City shall receive one hundred percent of the permit fee.
The fees shall be collected by the City. The agreement shall be of a continuing nature unless
cancelled by either party for any reason and without penalty, on not less than sixty days written
notice. In March 2010, the agreement was amended to add that the City shall collect the appropriate
County impact fees for Town permits issued by the City. The City shall retain a 3.4%
administrative fee for all Town impact fee assessments. For the year ended September 30, 2018, the
Town paid $565,972 pursuant to the agreement.
NOTE 11 – COMMITMENTS
Solid Waste and Recycling Collection Franchise Agreement
On September 13, 2013, the Town made the fourth amendment the solid waste and recycling
collection franchise agreement with Waste Management Inc. of Florida (WMI). The fourth
amendment extended the term of the agreement until September 30, 2018, and eliminated the fuel
surcharge provision. Under the terms of the agreement, the Town informs WMI of the total number
of residential and multi-family units that have a Certificate of Occupancy each year on September 1.
WMI bills all multi-family units that are serviced by a container. The monthly charges for the
remainder of the units that are serviced by means other than by containers are paid by the Town. On
September 14, 2018, the Town made the fifth amendment to the agreement that extended the term
of the agreement until March 30, 2019. On March 29, 2019, the Town made the sixth amendment
the agreement to extend the term of the agreement until March 31, 2024. The sixth amendment also
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
49
NOTE 11 – COMMITMENTS (Continued)
Solid Waste and Recycling Collection Franchise Agreement (Continued)
changed the index for use in making annual rate adjustments, and provide new rates for services
commencing April 1, 2019.
WMI bills the Town monthly for these services at the then current rate as adjusted from time to
time by the terms and conditions of the agreement. For the year ended September 30, 2018, the
Town made payments of $140,865 pursuant to the agreement.
Construction Commitments
Project
Authorized
Amount
Amount
Completed
at 09/30/18
Balance to
Complete
at 09/30/18
Undergrounding – Phase II, Wilco $2,890,597 $2,128,594 $762,003
Undergrounding – Phase II, Comcast 160,312 80,156 80,156
Undergrounding – Phase II, AT&T 420,582 395,582 25,000
$3,471,491 $2,604,332 $867,159
NOTE 12 – RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; injuries to employees, and natural disasters for which the Town
carries commercial insurance. The Town purchases commercial insurance to cover the various
risks. Retention of risks is limited to those risks that are uninsurable and deductibles ranging from
$250 to $2,500 per occurrence. The Town has not significantly reduced insurance coverage during
the past three fiscal years. There were no settled claims which exceeded insurance coverage
during the fiscal years ended September 30, 2016, 2017, and 2018.
Florida Statues limit the Town’s maximum loss for most liability claims to $200,000 per person
and $300,000 per occurrence under the Doctrine of Sovereign Immunity. However, under certain
circumstances, a plaintiff can seek to recover damages in excess of statutory limits by introducing a
claims bill to the Florida Legislature. The limits addressed in Florida Statutes do not apply to claims
filed in Federal courts.
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
50
NOTE 12 – RISK MANAGEMENT (Continued)
The Town is involved in various litigation and claims arising in the course of operations. The
Town is a defendant in several lawsuits alleging violation by the Town of the State of Florida’s
Public Records Law. In December 2018, the Town entered into a Settlement Agreement with a
Town resident and business entities affiliated with him relative to a number of these cases. The
Agreement resulted in the voluntary dismissal of six cases and the Town paying the plaintiff
$15,000 and the Town consenting to judgment in four cases. The only remaining issue in these
four cases is the amount the Town must pay to the plaintiff as reasonable costs, including
attorney’s fees. No award will be covered by the Town’s liability coverage. The amounts of any
costs and fees award cannot be reasonably determined at this time and will be the subject of
evidentiary hearings before the trial court, absent settlement. Accordingly, no provision for any
liability that may result has been made in the accompanying financial statements
Other cases alleging violation of the Public Records Law by the Town are still pending. In the
event of success in these cases, plaintiffs would be entitled to attorney’s fees. The likelihood of
unfavorable outcomes and the amounts of potential losses cannot be reasonably determined at
this time. Accordingly, no provision for any liability that may result has been made in the
accompanying financial statements.
NOTE 13 – OPERATING LEASE
On June 11, 2018, the Town entered into an operation lease for a copier for use in Town Hall. The
lease is for a term of 36 months and requires minimum monthly payments of $457 that commenced
in July 2018. For the year ended September 30, 2018, the Town made payments of $1,380 pursuant
to the lease.
The following is a schedule of the Town’s required future minimum lease payments under the
agreement:
Minimum
Year Ended
September 30
Lease
Payments
2019 $5,484
2020 5,484
2021 4,113
$15,081
TOWN OF GULF STREAM, FLORIDA
Notes to the Financial Statements
September 30, 2018
51
NOTE 14 – SPECIAL ASSESSMENT
On June 30, 2011, the Town adopted Resolution 011-11 levying non-ad valorem special
assessments on properties specially benefitted by a capital improvement project to place
underground the overhead electric, cable television, and telephone utility facilities that serve a
portion of the Town and its inhabitants. The special assessments were calculated using a
methodology that fairly and reasonably apportions the cost of the project among the benefitted
parcels in proportion to the benefits to such parcels. The calculation methodology used an
equivalent benefit unit assigned for three categories: (1) improved safety (2) improved reliability
and (3) improved aesthetics.
Property owners were given the option to pay the entire amount of the assessment in advance of the
Town obtaining financing for the project. The special assessments are subject to prepayment only
on or before November 1, 2011. Assessments that are not prepaid shall be payable in not less than
10 and not more than 20 yearly installments. The special assessments shall bear interest not
exceeding 10% per annum over the term of the financing obtained by the Town and will include
annual costs related to administration and collection not to exceed 5%. The total assessable cost
was $5,518,144, and the Town received prepayments in the amount of $2,885,049. See Note 6 for a
discussion of the related financing for the project.
NOTE 15 – CHANGE IN ACCOUNTING PRINCIPLE
As discussed in Note 1, the Town implemented GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pension, during the current fiscal
year. This Statement requires employers participating in a single employer defined benefit other
postemployment benefit plan (OPEB) to report the total OPEB liability and related OPEB amounts
of the plan. The cumulative effect of applying this Statement has been reported as a restatement of
the beginning net position of the Governmental Activities on the entity-wide financial statements. A
reconciliation of the prior period ending net position to the current period beginning net position is
as follows:
Balance at September 30, 2017, as reported $ 7,118,386
Adjustment for adoption of GASB 75 (66,172)
Balance at September 30, 2017, as restated $ 7,052,214
TOWN OF GULF STREAM, FLORIDA
Required Supplemental Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended September 30, 2018
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Taxes
Ad valorem taxes 4,420,871$ 4,420,871$ 4,446,477$ 25,606$
Infrastructure surtax 30,000 30,000 73,237 43,237
Local option fuel taxes 34,500 34,500 36,747 2,247
Utility service taxes 190,600 190,600 223,507 32,907
Communications services taxes 47,700 47,700 60,321 12,621
Total taxes 4,723,671 4,723,671 4,840,289 116,618
Licenses and permits
Inspecction Fees 63,700 63,700 100,665 36,965
Franchise fees 128,300 128,300 150,206 21,906
Building permits 350,000 565,972 565,972
Total licenses and permits 542,000 757,972 816,843 58,871
Intergovernmental revenue
State revenue sharing proceeds 95,000 95,000 106,943 11,943
Shared revenue from other local units 1,500 1,500 6,093 4,593
Payment in lieu of taxes 29,700 29,700 39,700 10,000
Total intergovernmental revenue 126,200 126,200 152,736 26,536
Charges for services
Solid waste collection fees 141,200 141,200 142,089 889
Other 15,000 15,000 1,710 (13,290)
Total charges for services 156,200 156,200 143,799 (12,401)
Judgments, fines and forfeits
Judgments and fines 1,800 1,800 1,094 (706)
Violation of local ordinances 615 615
Total judgments, fines, and forfeits 1,800 1,800 1,709 (91)
Investment earnings 4,000 4,000 63,803 59,803
Miscellaneous revenues
Contributions 12,215 12,215
Other 15,400 15,400 25,329 9,929
Total miscellaneous revneues 15,400 15,400 37,544 22,144
Total revenues 5,569,271 5,785,243 6,056,723 271,480
continued
See notes to the budgetary comparison schedule
52
TOWN OF GULF STREAM, FLORIDA
Required Supplemental Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
General Fund
For the Year Ended September 30, 2018
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures
Administration 2,370,203 2,586,175 2,102,830 483,345
Legal 153,739 153,739 149,973 3,766
Police 1,742,588 1,742,588 1,560,924 181,664
Fire Rescue 474,500 474,500 473,484 1,016
Streets 679,241 679,241 384,213 295,028
Sanitation 149,000 149,000 140,865 8,135
Total expenditures 5,569,271 5,785,243 4,812,289 972,954
Excess (deficiency) of revenues
over (under) expenditures $ $ 1,244,434 1,244,434$
Fund balance, beginning of year 3,847,128
Fund balance, end of year 5,091,562$
See notes to the budgetary comparison schedule
53
TOWN OF GULF STREAM, FLORIDA
Notes to the Budgetary
Required Supplemental Information (RSI)
General Fund
September 30, 2018
NOTE 1 - BUDGETS AND BUDGETARY ACCOUNTING
1.
2.Public hearings are conducted to obtain taxpayer comments.
3.Prior to October 1st, the budget is legally enacted through the passage of a resolution.
4.
5.Budgets are adopted on a basis consistent with generally accepted accounting principles.
6.Appropriations along with encumbrances lapse at September 30th.
NOTE 2 - BUDGET AND ACTUAL COMPARISONS
Formalbudgetaryintegrationisemployedwithintheaccountingsystemasamanagementcontrol
device.Appropriationsarelegallycontrolledatthedepartmentlevelandexpendituresmaynotlegally
exceedappropriationsatthatlevel.FortheyearendedSeptember30,2018,nodepartmentshadan
excess of expenditures over appropriations.
AbudgetarycomparisonscheduleispresentedfortheGeneralFund.Theproceduresforestablishing
budgetary data reflected in the budgetary comparison schedule are as follows:
PriortoAugust1st,theTownManagersubmitstotheTownCommissionaproposedoperating
budgetforthefiscalyearcommencingthenextOctober1st.Theoperatingbudgetincludes
proposed expenditures and the means of financing them.
The Town Manager is authorized to transfer budgeted amounts within any department.
However,anyrevisionsthatalterthetotalexpendituresofanydepartmentmustbeapprovedby
the Town Commission by a legally enacted ordinance.
AbudgetislegallyadoptedfortheGeneralFund.TheSpecialAssessmentSpecialRevenueFundis
not legally required to be budgeted and is not budgeted.
54
TOWN OF OCEAN RIDGE, FLORIDA
Required Supplementary Information (RSI)
Schedule of Changes in Total OPEB Liability
For the Fiscal Year Year Ended September 30, 2018
2018
Total OPEB liability - beginning, as restated 66,172$
Changes for the year:
Service cost 5,843
Expected interest growth 2,558
Benefit payments & refunds (3,487)
Assumption changes (1,090)
Net change in total OPEB liability 3,824
Total OPEB liability - ending 69,996$
Change in Assumptions
Since the prior measurement date, the discount rate was increased
from 3.35% per annum to 3.64% per annum.
Thisscheduleisintendedtoshowinformationfor10years.However,
untilafull10-yeartrendiscompiled,informationwillbepresented
for those years for which information is available.
55
56
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
The Honorable Mayor and Members of the Town Commission
Town of Gulf Stream, Florida
We have audited, in accordance with the 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, the financial statements of the
governmental activities, the business-type activities, and each major fund of the Town of Gulf
Stream, Florida, as of and for the year ended September 30, 2018, and the related notes to the
financial statements, which collectively comprise the Town of Gulf Stream, Florida’s basic
financial statements and have issued our report thereon dated June 27, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town of Gulf
Stream, Florida’s internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Town of Gulf Stream, Florida’s internal control. Accordingly, we do not express an opinion
on the effectiveness of the Town of Gulf Stream, Florida’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
57
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. However, as described below, we identified a
deficiency in internal control that we consider to be a material weakness.
Finding 2017-1
Condition:The Town did not reconcile the general ledger accounts for accounts receivable and
accounts payable to the subsidiary ledgers on a monthly basis.
Criteria:Asset and liability accounts should be reconciled monthly.
Effect: Because monthly reconciliations were not performed for all asset and liability accounts,
significant differences between the general ledger and subsidiary ledgers were not detected and
corrected on a timely basis.
Recommendation:We recommend that the Town reconcile the accounts receivable and
accounts payable general ledger accounts to the subsidiary ledgers on a monthly basis.
Management Response:We agree with the auditor’s comments regarding reconciliation of the
general ledger accounts for accounts receivable and accounts payable to the subsidiary ledgers.
The following actions have been added to improve our internal procedures. To ensure we have
an accurate representation of our utility aged accounts receivable and accounts payable, a new
procedure has been added to our monthly reconciliation processes. We will produce the
adjustments report from the utility software and reconcile the corresponding general ledger
accounts accordingly. We have also added the procedure of keeping all utility account
adjustments separated from the utility billing and payment records, allowing more accessible
and reconcilable documentation. The staff will be advised of all revisions and additions to
internal procedures.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Gulf Stream, Florida’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, 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 tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
58
Town of Gulf Stream, Florida’s Response to Findings
The Town of Gulf Stream, Florida’s response to the findings identified in our audit is described
above. The Town of Gulf Stream, Florida’s response was not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
West Palm Beach, Florida
June 27, 2019
59
MANAGEMENT LETTER IN ACCORDANCE WITH
THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA
To the Honorable Mayor and Members of the Town Commission
Town of Gulf Stream, Florida
Report on the Financial Statements
We have audited the financial statements of the Town of Gulf Stream, Florida, as of and for the
fiscal year ended September 30, 2018, and have issued our report thereon dated June 27, 2019.
Auditor’s Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and Chapter 10.550, Rules of
the Auditor General.
Other Reporting Requirements
We have issued our 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 and Independent Accountant’s Report on an
examination conducted in accordance with AICPA Professional Standards, AT-C Section 315,
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor
General.Disclosures in those reports, which are dated June 27, 2019, should be considered in
conjunction with this Management Letter.
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Prior Audit Findings
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
financial audit report.
The Finding 2017-1 was included in the audit report for the prior year. The Town has made
progress in addressing the issues in this finding, but portions of the finding still apply.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This
information is disclosed in Note 1 to the financial statements. There are no component units
included in the Town of Gulf Stream, Florida’s financial statements.
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply
appropriate procedures and communicate the results of our determination as to whether or not the
Town of Gulf Stream, Florida has met one or more of the conditions described in Section
218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our
audit, we determined that the Town of Gulf Stream, Florida did not meet any of the conditions
described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures for the Town of Gulf Stream, Florida. It is
management’s responsibility to monitor the Town of Gulf Stream, Florida’s financial condition,
and our financial condition assessment was based in part on representations made by management
and review of financial information provided by same. Our assessment was done as of the fiscal
year end. The results of our procedures did not disclose any matters that are required to be reported.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendation to improve financial management. In connection with our audit, we did not have
any such recommendations.
61
Special District Component Units
Section 10.554(1)(i)5.c, Rules of the Auditor General, requires, if appropriate, that we
communicate the failure of a special district that is a component unit of a county, municipality, or
special district, to provide the financial information necessary for proper reporting of the
component unit, within the audited financial statements of the county, municipality, or special
district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we
did not note any special district component units that failed to provide the necessary information
for proper reporting in accordance with Section 218.39(3)(b), Florida Statues.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance
with 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 warrants the
attention of those charged with governance. In connection with our audit, we did not note any such
findings.
Single Audits
The Town of Gulf Stream, Florida expended less than $750,000 of federal awards and less than
$750,000 of state financial assistance for the fiscal year ended September 30, 2018, and was not
required to have a federal single audit or a state single audit.
Purpose of this Letter
Our Management Letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Town Commission, and applicable
management, and is not intended to be and should not be used by anyone other than these specified
parties.
West Palm Beach, Florida
June 27, 2019
62
INDEPENDENT ACCOUNTANT’S REPORT
ON COMPLIANCE WITH SECTION 218.415,
FLORIDA STATUTES
The Honorable Mayor and Members of the Town Commission
Town of Gulf Stream, Florida
We have examined the Town of Gulf Stream, Florida’s compliance with Section 218.415, Florida Statutes
during the year ended September 30, 2018. Management of the Town of Gulf Stream, Florida is
responsible for the Town of Gulf Stream, Florida’s compliance with the specified requirements. Our
responsibility is to express an opinion on the Town of Gulf Stream, Florida’s compliance with the
specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Town of Gulf Stream, Florida complied, in
all material respects, with the specified requirements referenced above. An examination involves
performing procedures to obtain evidence about whether the Town of Gulf Stream, Florida complied with
the specified requirements. The nature, timing, and extent of the procedures selected depend on our
judgement, including an assessment of the risk of material noncompliance, whether due to fraud or error.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion.
Our examination does not provide a legal determination on the Town of Gulf Stream, Florida’s compliance
with the specified requirements.
In our opinion, the Town of Gulf Stream, Florida complied, in all material respects, with Section 218.415,
Florida Statutes for the year ended September 30, 2018.
This report is intended solely for the information and use of the Legislative Auditing Committee, members
of the Florida Senate and Florida House of Representatives, the Florida Auditor General, applicable
management, and the Town Commission, and is not intended to be and should not be used by anyone
other than these specified parties.
West Palm Beach, Florida
June 27, 2019