HomeMy WebLinkAbout2021 CRA Financial Statements
CITY OF CAPE CANAVERAL COMMUNITY
REDEVELOPMENT AGENCY
FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
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CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
TABLE OF CONTENTS
SEPTEMBER 30, 2021
Page
Number(s)
Independent Auditors’ Report 1 2
Management’s Discussion and Analysis 3 – 5
Basic Financial Statements
Balance Sheet / Statement of Net Position 6
Statement of Revenues, Expenditures, and Changes in Fund Balance / Statement of
Activities 7
Notes to Financial Statements 8 11
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and
Actual 13
Independent Auditors’ 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 14 – 15
Independent Auditors’ Management Letter Required by Chapter 10.550, Rules
of the State of Florida Office of the Auditor General 16 – 18
Independent Accountants’ Examination Report 19
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INDEPENDENT AUDITORS’ REPORT
To the Governing Board,
City of Cape Canaveral Community Redevelopment Agency:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major
fund of the City of Cape Canaveral Community Redevelopment Agency (the CRA), as of and for the year
ended September 30, 2021, and the related notes to the financial statements, which collectively comprise
the CRA’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The CRA’s 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.
Auditors’ 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 auditors’ 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.
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the CRA, as of
September 30, 2021, and the respective changes in financial position for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information, as listed in the table of contents, 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 February 4,
2022, on our consideration of the CRA’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 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 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 CRA’s internal control over financial
reporting and compliance.
Daytona Beach, Florida
February 4, 2022
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MANAGEMENT’S DISCUSSION AND ANALYSIS
The City of Cape Canaveral Community Redevelopment Agency’s (the CRA) management’s discussion
and analysis (MD&A) is designed to (a) assist the reader in focusing on significant financial issues, (b)
provide an overview of the CRA’s financial activity, (c) identify changes in the CRA’s financial position
(its ability to address the next and subsequent year challenges), (d) identify any material deviations from
the financial plan (the approved budget), and (e) identify individual fund issues or concerns.
Since the MD&A is designed to focus on current year activities, resulting changes, and currently known
facts, it should be read in conjunction with the CRA’s financial statements which follow this section.
Financial Highlights
The assets of the CRA exceeded its liabilities at September 30, 2021, by $144,454 (net position).
Of this amount, the entire balance was restricted for redevelopment purposes.
As of September 30, 2021, the CRA’s reported ending fund balances of $144,454. Fund balance
saw a change of $117,433 when compared to the prior year.
The MD&A is intended to serve as an introduction to the CRA’s basic financial statements, which are
comprised of three components: 1) government-wide financial statements, 2) fund financial statements
and 3) notes to the financial statements.
Overview of the Financial Statements
This annual report consists of four components: 1) management’s discussion and analysis (this section),
2) government-wide and fund financial statements, 3) notes to the financial statements, and 4) required
supplementary information.
Government-wide Financial Statements
Government-wide financial statements provide readers with a broad overview of the CRA’s finances in a
manner similar to a private-sector business. The governmental activities of the CRA include reinvesting
within the community redevelopment district.
The statement of net position presents information on all of the CRA’s assets and liabilities, with the
difference between the two reported as net position. This statement serves a purpose similar to that of the
balance sheet of a private-sector business. Over time, increases or decreases in net position may serve as
one indicator of whether the financial position of the CRA is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed
during the fiscal year. All changes in net position are reported using the modified cash basis of
accounting.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
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Government-wide Financial Analysis
Statement of Net Position
The following is a summary of the CRA’s governmental activities net position for each of the past two
years:
Statement of Activities
The following is a summary of the changes in the CRA’s governmental activities net position for each of
the past two years:
Governmental Activities
2021 2020
ASSETS
Current and other assets 1,089,778$ 254,693$
Total assets 1,089,778$ 254,693$
LIABILITIES
Current liabilities 945,324$ 227,672$
Total liabilities 945,324$ 227,672$
NET POSITION
Restricted 144,454$ 27,021$
Total net position 144,454$ 27,021$
Governmental Activities
2021 2020
REVENUES
Intergovernmental and grants 1,566,301$ 1,149,156$
Other revenues - 257
Total revenues 1,566,301 1,149,413
EXPENSES
Community Redevelopment 1,626 7,695
Capital outla y 5,479,267 263,788
Total expenses 5,480,893 271,483
Net income before transfers (3,914,592) 877,930
Transfers from primary government 4,750,673 73,809
Transfers to primary government (718,648) (968,850)
Change in net position 117,433 (17,111)
Net position, beginning of yea r 27,021 44,132
Net position, end of yea r 144,454$ 27,021$
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Financial Analysis of the General Fund
The focus of the CRA’s governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the CRA’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the CRA’s general fund reported an ending fund balance of
$144,454, a change of $117,433 in comparison with the prior year.
At the end of the current fiscal year, the entire fund balance was restricted for community redevelopment.
As the CRA is focused on reinvestment revenues into the CRA district and does not have significant
annual operational costs, the CRA does not maintain specific reserve levels for operations.
General Fund Budgetary Highlights
Significant variations between original and final budget amounts were due to year-end budget true-up
modification based on actual activity.
Actual expenditures in the general fund were $603,377 less than final budget amounts. The main reason
for this is due to the timing of capital project and other one-time expenditures.
Budgetary comparisons between the final budget and actual results can be found on page 13 of this report.
Economic Factors and Next Year's Budget
There are many challenges facing local governments today. Property values have continued to increase in
recent years, contributing to related growth in the revenues of the CRA. While property values for the
subsequent fiscal year have increased, the future outlook of property values during and after the COVID-
19 pandemic, and any potential impact they will have on the CRA’s finances, are unknown.
Requests for Information
This report is designed to provide an overview of the CRA’s finances for those with an interest in this
area. Questions concerning any of the information found in this report, or requests for additional
information, should be directed to the City of Cape Canaveral.
CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
BALANCE SHEET / STATEMENT OF NET POSITION
SEPTEMBER 30, 2021
Balance Sheet Statement of
Cape Canaveral Net Position
CRA Governmental
Fund Adjustments Activities
ASSETS
Cash and cash equivalents 1,089,778$ -$ 1,089,778$
Total assets 1,089,778$ -$ 1,089,778$
LIABILITIES
Accounts payable and accrued liabilities 753,037$ -$ 753,037$
Advances from primary government 192,287 - 192,287
Total liabilities 945,324 - 945,324
FUND BALANCE / NET POSITION
Fund Balance:
Restricted for:
Community redevelopment 144,454 (144,454) -
Net Position:
Restricted for:
Community redevelopment - 144,454 144,454
Total fund balance / net position 144,454 - 144,454
Total liabilities and fund balance / net position 1,089,778$ -$ 1,089,778$
The accompanying notes to financial statements are an integral part of this statement.
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CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE /
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2021
Statement of
Revenues,
Expenditures,
and Changes in
Fund Balance Statement of
Cape Canaveral Activities
CRA Governmental
Fund Adjustments Activities
Revenues
Intergovernmental 1,566,301$ -$ 1,566,301$
Total revenues 1,566,301 - 1,566,301
Expenditures / expenses
Current:
Community redevelopment 1,626 - 1,626
Capital outlay 5,479,267 - 5,479,267
Total expenditures / expenses 5,480,893 - 5,480,893
Excess (deficiency) of revenues over
expenditures / operating income (loss)(3,914,592) - (3,914,592)
Other financing sources (uses)
Transfers in from primary government 4,750,673 - 4,750,673
Transfers out to primary government (718,648) - (718,648)
Total other financing sources (uses) 4,032,025 - 4,032,025
Net change in fund balance / net position 117,433 - 117,433
Fund balance / net position , beginning of year 27,021 - 27,021
Fund balance / net position, end of year 144,454$ -$ 144,454$
The accompanying notes to financial statements are an integral part of this statement.
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CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
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(1) Summary of Significant Accounting Policies:
The financial statements of the City of Cape Canaveral Community Redevelopment Agency (the CRA),
have been prepared in conformance with accounting principles generally accepted in the United States of
America as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is
the accepted body for promulgating governmental accounting and financial reporting principles and the
CRA has adopted the GASB Codification. The following is a summary of the CRA’s significant
accounting policies:
(a) Reporting entityThe City of Cape Canaveral Community Redevelopment Agency was
created in 2016, by City Ordinance 2015-O-04 of the City of Cape Canaveral, Florida (the City),
pursuant to Florida Statute 163.387, to account for the receipt and expenditure of property tax
revenues from the tax increment financing district to support redevelopment in the designated
community redevelopment area. Since the City is financially accountable for the activities of the
CRA, its governing board is the same, and its relationship to the CRA is significant, the CRA is
considered to be a blended component unit in the City’s financial statements, where it is also
reported as a major special revenue fund. The CRA has determined there are no component units
that meet criteria for inclusion in the CRA’s financial statements.
(b) Government-wide and fund financial statementsThe government-wide financial
statements (i.e., the statement of net position and the statement of activities) report information on
all of the activities of the CRA. The CRA only has governmental activities and does not engage in
any business-type activity. Direct expenses are those that are clearly identifiable with a specific
function or segment. General revenues include ad valorem taxes and interest income. Fund financial
statements are presented for the CRA’s General Fund. The General Fund, which accounts for all
financial operations of the CRA, is considered to be a major fund and is the only fund of the CRA.
(c) Measurement focus, basis of accounting, and financial statement presentationThe
government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned, and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and
similar items are recognized as revenue when all eligibility requirements imposed by the grantor
have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized when
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the CRA considers property revenues to be available if they are collected within 60
days of the end of the current period. Grants, other intergovernmental revenues, charges for services,
licenses and interest associated with the current fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Expenditures generally
are recorded when a liability is incurred. However, expenditures related to long-term agreements are
recorded only when payment is due.
(d) Budgets and budgetary accountingThe governing board of the CRA adopts an annual
operating budget, which is prepared on a modified accrual basis and can be amended by the board
throughout the year. At the fund level, actual expenditures cannot exceed the budgeted amounts.
The accompanying budgeted financial statements for the General Fund reflect the final budget
authorization amounts, including all amendments.
CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
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(1) Summary of Significant Accounting Policies: (Continued)
(e) Deposits and investmentsThe CRA’s cash and cash equivalents include cash on hand,
demand deposits and short-term investments that are readily convertible to known amounts of cash.
Investments with original maturities of three months or less are considered to be cash equivalents.
(f) Receivables and payablesActivity between the CRA and the City has been classified as
amount due to/from the primary government on the balance sheet and statement of net position. All
trade and property tax receivables are reported net of an allowance for uncollectible accounts, which
is based upon management's analysis of outstanding balances and historical trends. At September
30, 2021, all of the CRA’s receivables were considered fully collectible.
(g) Prepaid itemsCertain payments to vendors reflect costs applicable to future accounting
periods and are recorded as prepaid items in both government-wide and fund financial statements.
(h) Capital assetsThe CRA does not own any capital assets. Any capital outlay expenditures
made by the CRA are deemed to be on behalf of the City who takes ownership of the assets along
with the perpetual maintenance obligation for those assets.
(i) Long-term obligationsThe CRA does not have any legal indebtedness. Any use of funds
for debt service, which is included in transfers to the primary governments, represents payments
toward long-term debt issued in the name of the City for which CRA revenues have been pledged.
The CRA does not have any employees. Any employees who provide services to the CRA are
employees of the primary government and do so at either no charge to the CRA, or any allocations
made to the CRA represent reimbursements by the CRA to the primary government for services
rendered (any items recorded to personnel expense accounts are only for ease of tracking the
reimbursement amounts). As a result, there is no compensated absences, other post-employment
benefits (OPEB), or pension liabilities recorded on the CRA’s financial statements.
(j) Fund equityIn the fund financial statements, governmental funds report fund balance
classifications that comprise a hierarchy based primarily on the extent to which the CRA is bound to
honor constraints on the specific purposes for which amounts in those funds can be spent. Those
classifications are as follows:
Nonspendable – amounts not available to be spent or not in spendable form, such as inventory
and prepaid items.
Restricted – amounts constrained to specific purposes by their providers (such as grantors and
higher levels of government), through constitutional provisions or by enabling legislation.
Committed – amounts constrained to specific purposes based on actions taken by the CRA
governing board through ordinance.
Assigned – amounts the CRA intends to use for a specific purpose. Intent can be expressed by
the CRA governing board or by an official or body which the Board delegates authority.
Unassigned – amounts that are available for any purpose.
CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
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(1) Summary of Significant Accounting Policies: (Continued)
When an expenditure is incurred for purposes for which both restricted and unrestricted resources
are available; the CRA considers restricted funds to have been spent first. When expenditure is
incurred for which committed, assigned, or unassigned fund balances are available, the CRA
considers amounts to have been spent first out of committed funds, then assigned funds and finally,
unassigned funds, as needed.
(k) Deferred outflows/inflows of resourcesIn addition to assets, the statement of financial
position will sometimes report a separate section for deferred outflows of resources. This separate
financial statement element represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
The CRA has no items that meet this reporting criteria.
In addition to liabilities, the statement of financial position will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element represents an acquisition
of net position that applies to a future period and will not be recognized as an inflow of resources
(revenue) until that time. The CRA has no items that meet this reporting criteria.
(l) Net position flow assumptionSometimes the CRA will fund outlays for a particular
purpose from both restricted and unrestricted resources. In order to determine amounts reported as
restricted and unrestricted net position, it is the CRA’s policy to consider restricted net position to
have been used before unrestricted net position is applied.
(m) Use of estimatesManagement uses estimates and assumptions in preparing financial
statements in accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates
assumed in preparing the financial statements.
(2) Reconciliation of Government-Wide and Fund Financial Statements:
(a) Explanation of certain differences between the governmental fund balance sheet and the
government-wide statement of net positionFollowing the governmental fund balance sheet is a
reconciliation between fund balance – total governmental funds and net position – governmental
activities as reported in the government-wide statement of net position. The CRA has no items
reported differently between these two statements.
(b) Explanation of certain differences between the governmental fund statement of revenues,
expenditures, and changes in fund balances and the government-wide statement of activities
Following the governmental fund statement of revenues, expenditures, and changes in fund
balances, there is a reconciliation between net changes in fund balances - total governmental funds
and changes in net position of governmental activities as reported in the government-wide statement
of activities. The CRA has no items reported differently between these two statements.
CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
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(3) Deposits and Investments:
The CRA is subject to the investment policy of the primary government and has no cash or investment
held outside of the CRA’s interest in the City’s pooled cash and investments. Additional accounts are held
for various other purposes, or to segregate cash balances for amounts which are restricted or held on
behalf of others. State statutes authorize the CRA to invest excess funds in time deposits, or obligations of
the principal and interest of which are unconditionally guaranteed by, the United States Government,
commercial paper, corporate bonds, repurchase agreements and/or the State Board of Administration
(SBA) Local Government Surplus Trust Fund Investment Pool or other investment vehicles authorized by
local ordinance.
As of September 30, 2021, all CRA deposits were covered by private bank acquired insurance, Securities
Investor Protection Corporation (SIPC) insurance, private broker/dealer acquired insurance, Federal
Depository Insurance Corporation (FDIC) insurance, and/or the State of Florida collateral pool
established under the Florida Security for Public Deposits Act (the Act). The Act established guidelines
for qualification and participation by banks and savings associations, procedures for administration of the
collateral requirements and characteristics of eligible collateral. Under the Act, the qualified depository
must pledge at least 50% of the average daily balance for each month of all public deposits in excess of
any applicable deposit insurance. Additional collateral, up to 125% may be required if deemed necessary.
All of the CRA’s deposits are held with public depositories and as of September 30, 2021, the CRA’s
deposits and investments were not subject to any substantial interest rate, credit, or concentration risks.
(4) Commitments and Contingencies:
The CRA is engaged in various liability claims incidental to the conduct of its general government
operations at September 30, 2021. The outcomes of established claims are included in these financial
statements. In the opinion of the CRA and the primary government’s legal counsel, no legal proceedings
are pending or threatened against the CRA which are not covered by applicable insurance which would
inhibit its ability to perform its operations or materially affect its financial condition.
The CRA 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, all of which is satisfactorily insured by
limited risk, high deductible commercial general liability insurance. Commercial insurance policies are
also obtained for other risks of loss, including employee health and accident insurance. Settled claims
resulting from these risks have not exceeded commercial insurance coverage in any of the past three years.
(5) Recent Accounting Pronouncements:
The Governmental Accounting Standards Board (GASB) has issued several pronouncements that have
effective dates that may impact future financial statements. Listed below are pronouncements with
required implementation dates, as adjusted based on the impacts of GASB Statement No. 95, effective for
subsequent fiscal years that have not yet been implemented. Management has not currently determined
what, if any, impact implementation of the following will have on the CRA’s financial statements:
(a) GASB issued Statement No. 87, Leases, in June 2017. GASB 87 increases 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 based on the foundational principle that
leases are financings of the right to use an underlying asset. The provisions in GASB 87 are
effective for periods beginning after June 15, 2021.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CAPE CANAVERAL COMMUNITY REDEVELOPMENT AGENCY
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2021
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual (Negative)
Revenues
Intergovernmental 1,552,812$ 1,552,812$ 1,566,301$ 13,489$
Total revenues 1,552,812 1,552,812 1,566,301 13,489
Expenditures
Current:
Community redevelopment 11,559 11,559 1,626 9,933
Capital outlay 4,865,957 4,865,957 5,479,267 (613,310)
Total expenditures 4,877,516 4,877,516 5,480,893 (603,377)
Excess (deficiency) of revenues over
expenditures (3,324,704) (3,324,704) (3,914,592) (589,888)
Other financing sources (uses)
Transfers in from primary government 4,037,000 4,037,000 4,750,673 713,673
Transfers out to primary government (737,850) (737,850) (718,648) 19,202
Total other financing sources (uses) 3,299,150 3,299,150 4,032,025 732,875
Net change in fund balances (25,554) (25,554) 117,433 142,987
Fund balances, beginning of year 27,021 27,021 27,021 -
Fund balances, end of year 1,467$ 1,467$ 144,454$ 142,987$
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INDEPENDENT AUDITORS’ 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
To the Governing Board,
City of Cape Canaveral Community Redevelopment Agency:
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to the financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and each major fund of the City of Cape Canaveral Community Redevelopment Agency (the
CRA), as of and for the year ended September 30, 2021, and the related notes to the financial statements,
which collectively comprise the CRA’s basic financial statements and have issued our report thereon
dated February 4, 2022.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the CRA’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the CRA’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the CRA’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 CRA’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.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control over financial reporting that we
consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the CRA’s financial statements are free of
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 statements. 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.
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.
Daytona Beach, Florida
February 4, 2022
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INDEPENDENT AUDITORS’ MANAGEMENT LETTER REQUIRED
BY CHAPTER 10.550, RULES OF THE STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
To the Governing Board,
City of Cape Canaveral Community Redevelopment Agency:
Report on the Financial Statements
We have audited the basic financial statements of the City of Cape Canaveral Community Redevelopment
Agency (the CRA), as of and for the fiscal year ended September 30, 2021, and have issued our report
thereon dated February 4, 2022.
Auditors’ 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 Florida Auditor
General.
Other Reporting Requirements
We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards; and Independent Accountants’ 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 February 4, 2022, should be considered in conjunction with this management letter.
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 annual financial
audit report. No prior separate audit has been performed for the CRA, therefore there are no prior findings
and recommendations.
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. The legal authority for the
CRA is disclosed in Note 1 of the basic financial statements.
Financial Condition and Management
Sections 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 CRA has met one
or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific
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conditions met. In connection with our audit, we determined that the CRA, 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 CRA. It is management’s responsibility to monitor the CRA’s
financial condition, and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations
to improve financial management. In connection with our audit, we had no such recommendations.
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; therefore, we did not note any such component units that failed to provide the necessary
information, nor is any specific special district information required to be reported.
Specific Special District Information
The required reporting items in accordance with Section 218.39(3)(c), Florida Statutes for the CRA have
been reported in the separately-issued audited financial statements of the CRA.
The following items have been provided to us to comply with state reporting requirements and have not
been audited by us. We did not audit the following information within this section, nor were we required
to perform any procedures to verify the accuracy or the completeness of the information provided by
management. We do not express an opinion, a conclusion, nor provide any form of assurance on this data.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor
General, the CRA reported the following unaudited data:
a) The total number of district employees compensated in the last pay period of the district’s fiscal
year: -0-.
b) The total number of independent contractors to whom nonemployee compensation was paid in
the last month of the district’s fiscal year: -0-.
c) All compensation earned by or awarded to employees, whether paid or accrued, regardless of
contingency: $-0-.
d) All compensation earned by or awarded to nonemployee independent contractors, whether paid or
accrued, regardless of contingency: $-0-.
e) Each construction project with a total cost of at least $65,000 approved by the district that is
scheduled to begin on or after October 1 of the fiscal year being reported, together with the total
expenditures for such project as:
a. Canaveral City Park Redevelopment - $3,095,957
b. W. Central Blvd. Streetscape - $1,626,500
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f) A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before
the beginning of the fiscal year being reported if the district amends a final adopted budget under
Section 189.016(6), Florida Statutes, as follows: there were no amendments between the original
and final total district expenditure budget.
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 which warrants the attention of
those charged with governance. In connection with our audit, we did not have any such findings.
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 Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the CRA’s governing board and applicable management,
and is not intended to be and should not be used by anyone other than these specified parties.
Daytona Beach, Florida
February 4, 2022
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INDEPENDENT ACCOUNTANTS’ EXAMINATION REPORT
To the Governing Board,
City of Cape Canaveral Community Redevelopment Agency:
We have examined the City of Cape Canaveral Community Redevelopment Agency’s (the CRA)
compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, and Sections
163.387(6) and (7), Florida Statutes, Redevelopment Trust Fund (collectively, the “Statutes”), for the year
ended September 30, 2021. Management is responsible for the CRA’s compliance with those
requirements. Our responsibility is to express an opinion on the CRA’s compliance 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 CRA complied with the Statutes, for the
year ended September 30, 2021, in all material respects. An examination involves performing procedures
to obtain evidence about the CRA’s compliance with those requirements. The nature, timing, and extent
of the procedures selected depend on our judgment, including an assessment of risks of material
noncompliance with those requirements, 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.
In our opinion, the City of Cape Canaveral Community Redevelopment Agency complied, in all material
respects, with the Statutes for the year ended September 30, 2021.
Daytona Beach, Florida
February 4, 2022