MEXICOBEACH CITY COUNICL REGUALR. MEETING TUESDAY, MARCH 12, 2024, AT9:00 A.M. PUBLIC WORKS BUILDING Mayor, Michele Miller  Councilman, Jerry Smith Councilman, Lindal Hamilton Clint McCahill, City Attorney  Councilman, Adrian Welle Councilman, Richard Wolff Tammy Brunson, City Clerk  Chris Hubbard, City Administrator  Thisi meeting willl bel live streamed on the City of Mexicol Beach Government Facebook page. Ifyoul havea any questions or comments on the agenda, please email them up to 21 hours prior to meeting at vymesicobeachl.gov  I. II.  CALL1 TO ORDER INVOCATION  III. PLEDGE OF ALLEGIANCE IV. ROLLCALL V.  CONSENT AGENDA 1. Minutes - February 27, 2024 2. Minutes- - March 7,2024 VI. OTHER BUSINESS  1. February Employee of thel Month 2. Discussion Food' Truck Control - Mayor Miller 3. Discussion Planning and Development - Mayor Miller 4. Letter to 37th Street Property Owners- City Administrator 5. Update on Internal Control Topic - City Administrator 6. Monthly Financial Report - City Administrator  VII. DEPARTMENT REPORTS  1. Public Works Department 2. Utilities Department 3. Fire Department 4. Code Enforcement 5. Sheriff Department    VIII. CITIZEN'S COMMENTS  1. Speaker must come to the podium and state name and city ofresidence.  2. Comments are limited to 3 minutes.  IX. MAYOR COMMENTS X. COUNCIL COMMENTS XI. STAFF COMMENTS 1. City Attorney 2. City Administrator XII. ADJOURNMENT  Emailed toi interested parties andj posted ont the city website on: 03/07/2024  Note: Copies oft the Agenda items are posted ont the City's Website mexicobeachfl: gov This meeting willl ber recorded ont they website. *Youa arel hereby notified thati ina accordance with Florida Statutes, you have a rightt toa appeal any decision made by the Council with respect toa any matter considered. Your may need to ensure thata a verbatim record oft thep proceedings is made whichr may need toi include evidence and testimony upon which the: appeali is based. Any person requiring as special accommodation: at this meeting because ofac disability orp physical impairment: shouldo contact" Tammy Brunson, City Clerk, at2 201 Paradise Path, Mexico Beach, Florida 32456; or by phone (850)6 648-5700 at least five calendar days priort tot the meeting. Ifyoua arel hearing ors speech impaired, and you possess TDD equipment, you may contact the  City Clerk using the Florida Dual Party Relay System, which can be reached at 1-800-955-8770 (TDD    City of Mexico Beach Meeting Minutes TUESDAY FBMUARV2,204-6OOPM  V.  Other Business Cont:  4. Setbacks on Canal Parkway was brought to the table. Mr. McCahill stated his contract expires on March 31, 2024 andi that would be his last day. He suggested the council have his replacement guide them on this issue. Mayor Miller asked if he would consider staying on until a replacement could bet found and he agreed. Mr. Welle motion, and Mr. Wolff seconded to direct Mr. Hubbard to post and RFP for Legal Services witha 5. Garrison Cattle Company contract was brought to the table. Mayor Miller explained the contract with Garrison Cattle Company for year debris removal needs to be revisited. She is concerned about the amount ofr money the cityi is paying for this service. Mrs. Hamilton asked if city staff could pick up the debris and bringi it back to the shop and have KK Storm picki it up and dispose ofi it. Mayor Miller questions the amount of debris we are being invoiced for and suggested a monitoring service. Mrs. Hamilton motioned, and Mr. Wolffseconded to direct Mr. Hubbard to post RFP's for Disaster Relief Debris Removal and Monthly Yard 6. City Administrator 6-month review was brought to the table. Mayor Miller asked how council would like to handle Mr. Hubbard's review. Consensus was for each councilmember to meet with Mr. Hubbard individually and submit paperwork to the City Clerk to be placed in his personnel file by Mach15, 2023. Mrs. Hamilton suggested if the evaluation will be one on one having a witness, such as the City Clerk, present. 8. Projects list was brought to the table. Mr. Hubbard went over the projects list and answered any questions.  4-week turnaround time. Motion passed unanimously.  Debris Removal. Motion passed unanimously.  VII. Citizens Comments:  Rock Kries stated he was sorry to see Mr. McCahill leave the city, he thanked Chief Walker for their help at the Gumbo Festival, commented on the new pavilion at Under the Palms Park and asked how long before this city makes people clean up hurricane houses. Mrs. Hamilton commented on the sink hole causinga safety hazard at 600 Georgia. Mayor Miller commented on Code Enforcement issues and: suggested a possible waiver for political signs in right of ways or making sure the Ordinance is enforced.  VIII. Mayor Comments: IX. Council Comments:  Mayor Miller had no comments.  Mrs. Hamilton was excited about the new pole barn at Under the Palms Park and talked about the grant for all the new trees. Mr. Wolff announced the CDC will be holding a dedication for the new playground  equipment at Parker Park on March 26th at 11 am.  X.  Staff Comments: today.  1. City Administrator- - Mr. Hubbard commented on the new dredge having issues. Repairs are scheduled for  2. City Attorney - No comments at this time.    City of Mexico Beach Meeting Minutes TUESDAY FEBRUARY27,2024-6:00PM  XI. Adjournment: Mr. Smith and Mr. Welle motioned to adjourn the meeting at 7:39 pm.  By:  Attest:  Mayor, Michele Miller  City Clerk, Tammy Brunson    City of Mexico Beach Special Meeting Minutes MONDAY MARCH 4, 2024-5:00PM  The City of Mexico Beach City Council met in as special meeting on Monday March 4, 2024, at 5:00 pm at the Public Works Buildingi in Mexico Beach. Mayor Miller and thei following Councilmembers were present: Linda Hamilton, Jerry Smith and Richard Wolff.. Adrian Welle was absent. Also present were City Administrator, Chris Hubbard, City Clerk, Tammy Brunson and  City Attorney Clint McCahill.  I. II. 1.  Call to order: Mayor Miller called the meeting to order at 5:00 pm.  Regular Agenda:  Discussion regarding renewing the city's certificates of deposit was brought to the table. Hiram Nix and. Jim Haynes with Centennial Bank presented council with options for the cd's that expiring. Mr. Wolff motioned, and Mr. Smith seconded to accept all 4 CD's at the 6 month rate of 5.1%. Motion failed with a2 2to2v vote. No votes were Mrs. Hamilton and Mayor Miller. Mr. Wolff motioned, and Mr. Smith seconded to accept the two CD's with million plus dollar balances at the 6r month rate and the two with lower balances at the 12 month rate. Motion failed with a 21 to 2 vote. No votes were Mrs. Hamilton and Mayor Miller. Mr. Wolff motioned, and Mr. Smith seconded to accept #89 ($1,036,216.28). and #91 ($777,162.21) at the 6-month rate and #90 ($1,027,145.22) and #92 ($256,786.31) at the 12-month rate. Motion passed unanimously. Discussion of the City of Mexico Beach internal controls was brought to the table. Mayor Miller explained internal controls need to meet the standards. We need to have al balanced budget with controlled spending as our objectives. We need to be good stewards of our money and work on lowering the milage rate. Internal controls need to be reviewed on a regular basis and council needs to be proactive and make sure we work to correct the finding, weather it is policy change or personnel issues. Direction was given to Mr. Hubbard to compare the finding from the 2016, 2017 and 2021 audits and bring the top! 5 back to the  2.  council meeting on March 12, 2024 for additional discussion.  IX. Adjournment: Mr. Wolff motioned, and Mrs. Hamilton seconded to adjourn the meeting at 5:41 pm.  By:  Attest:  Mayor, Michele Miller  City Clerk, Tammy Brunson    City of Mexico Beach Meeting Minutes TUESDAY BRUAN2,0A-60OPMA  The City of Mexico Beach City Council met in ar regular meeting on Tuesday February27, 2024, at 6:00 pm at the Public Works Building in Mexico Beach. Mayor Miller and thet following Councilmembers were present: Linda Hamilton, Adrian Welle, Jerry Smith and Richard Wolff.. Also present were City Administrator, Chris Hubbard, City Clerk, Tammy Brunson and City Attorney  Clint McCahill.  Call to order: Mayor Miller called the meeting to order at 6:00 pm.  Consent Agenda: Mrs. Hamilton motioned, and Mr. Welle seconded to approve the meeting minutes for  January 23, 2024, and February 13, 2024. Motion passed with unanimously.  Il.  Scheduled Appearance: are working on.  1. Dina Bautista with AtkinsRealis gave an update and answered questions regarding the FEMA projects they 2. Wylie Pettit with the Special Events Committee thanked everyone with the city for their help with the  Gumbo Cook Off. It was their best year yet.  III.  Ordinances:  1. Ordinance 834 (Second Reading) - Amend Ordinance 540, Mexico Beach Shopping Center was brought to the table. Mr. Welle motioned, and Mrs. Hamilton seconded to read Ordinance 834 by title only. Motion passed unanimously. Open public comment at 6:21 pm. No public comment was made. Public comment closed at 6:21 pm. Mrs. Hamilton motioned, and Mr. Wolff seconded to approve Ordinance 834. Motion  passed unanimously.  IV. Other Business:  1. Task Order amendment from Dewberry for FEMA jetty project was brought to the table. Mr. Hubbard explained this task order is to allow Dewberry to continue with the additional items needed to complete the Environmental Assessment. Dina Bautista with AtkinsRealis was available for questions as well. Open public comment at 6:26 pm. No public comment was made. Public comment closed at 6:26 pm. Mr. Welle motioned, and Mrs. Hamilton seconded to approve the Dewberry task order for the. Jetty Project in the 2. Agreement with Duke Energy for a vehicle charging station at the Welcome Center was brought to the table. Mr. Hubbard explained Duke Energy would like permission to go ahead with this project. The CDCis is in support oft the project as well. Open public comment at 6:28 pm. No public comment was made. Public comment closed at 6:28 pm. Mr. Wolff motioned, and Mrs. Hamilton seconded to approve the car charging 3. Certificates of deposit maturing was brought to the table. Mr. Hebbard went over the options and interest rates to renew the CD's. Consensus was to have a special meeting on March 4 2024, at 5pm to havea  amount of $16,500.00. Motion passed unanimously.  station. Motion passed unanimously.  Centennial Bank representative go over all options available.    MEXICOBEACH  1DA  CITY OF MEXICO BEACH CITY COUNCIL  For Clerk's Use Only AGENDAITEM#  Agenda Abstract Form Meeting Date: March 12,2024 Department: City Administrator Public Hearing: Date of Public Hearing:  Consent Regular Closed Agenda Agenda Session  Yes R No  PRESENTERINPORMATON CONTACT: Chris Hubbard, City Administrator  ITEM TO BE CONSIDERED Letter to 37th Street Property Owners Proposed Letter to Property Owners  Subject:  Attachment(s):  Brief Summary: district. Action Requested: ISSUE OVERVIEW  The City needs to acquire additional property on South 37th Street for the purpose of converting iti into a commercial  Council to provide input, ifany, on proposed verbiage. Background Information & Issue Summary:  The City of Mexico Beach purchased 0.23 acres ofp property on the east side of South 37h Street (Pier Road) with the original intention of using it for business purposes; to increase the potential economic benefit to Mexico Beach, acquiring more land is essential. The City Administrator plans on sending letters to the property owners on this street toi inform them the City may be willing to buy their land, determine if anyone is currently willing to sell, and begin planning on future  acquisitions. Financial Impacts:  Expenditure of Funds to Purchase Property Staff ecommendtonsCommens Council top provide input, ifany, on proposed verbiage.    MOBXICO BEACH FL-O-RID-A  201 Paradise Path Mexico Beach, Florida 32456 PHONE: 850-648-5700 FAX:850-247-2702  201 Paradise Path Mexico Beach, FL 32456 March 1, 2024 John and Jane Doe S. 37th Street Mexico Beach, FL 32456  Re: ***Enter Property Address***  Mr. and Mrs. Doe,  I'm sending this letter in regard to the above referenced property shown to be owned by you. As you may or may not be aware, the City of Mexico Beach owns nearly one-quarter (0.23)ofanacre on South 37th Street, all on the east side of the road (same side as your property). With this being the case, I'm contacting all those who own property on the east side of South 37th Street, to inform them that- should you ever wish to sell your property, now or in the future-the Please understand that this is not an offer at this time. This is a notification that, should you ever consider selling your property, the City may be interested in purchasing it-and, if this would Ifyou are considering the sale ofyour property, orifyou'dl like to discuss this further, please don't hesitate to contact me at City Hall at (850) 648-5700 or you can call me direct on my cell phone  City may be interested in purchasing it for economic development purposes.  occur, the details would be negotiated and agreed to at that time.  at (850)247-7274. Respectfully,  Chris Hubbard, City Administrator City ofMexico Beach  xemecicopeachgovcom    MEXICOBEACH  CITY OF MEXICO BEACH CITY COUNCIL  For Clerk's Use Only AGENDA ITEM#  Agenda Abstract Form Meeting Date: March 12,2024 Department: City Administrator Publicl Hearing: Date of Public! Hearing:  Consent Regular Closed Agenda Agenda Session  Yes R No  RESENTERINPORMATON CONTACT: Chris Hubbard, City Administrator  ITEM TO BE CONSIDERED  Subject:  Discussion Regarding Internal Control Topic  Attachment(s):  Summary of audit Internal Control" findings for FY19-21  Appropriate pages from FY19-21 audits showing Internal Control Findings and additional details.  Brief Summary:  At the March 4th Special Meeting, Mayor Miller brought up Internal Controls and her concerns regarding thei findings in the  City's annual audits regarding this issue.  Action Requested:  None at this time. This is an update and City staff will bring additional information to the Council at al later date.  ISSUE OVERVIEW  Background Information & Issue Summary:  In the audits for FY19, FY20, and FY21 the City had three findings eachy year for internal control issues; each oft the findings in FY20/21 was a repeat of the findings from FY19. In each of the three years, the auditors acknowledged the causes oft the findings were due to al large turnover in accounting personnel and the effects of Hurricane Michael. When the audits for FY22 and FY23 are completed, Iwould expect the same findings to be present and for those same reasons  Financial Impacts: None. Staff ecommendationsCommens None at this time.    Internal Control Findings  2019-001, "Management Override and Segregation of Duties".  Cause: The size oft the City's accounting and administrative staff and turnover during the year precluded certain internal controls that would bej preferred including: 1) review ofjournal entries posted to the accounting system by an individual not involved in the creating of the journal entry and 2) restricting access for updating pay rates within the payroll system to  management or human resources  2019-002, Reconciliation of Account Balances and Audit Adjustments".  Cause: For the year ended September 30, 2019, many accounts were not reconciled on a timely basis and certain adjustments were: required to be made to the accounting records subsequent to the start oft the audit process related to year-end accrual entries. We noted this tol be largely due to: significant personnel turnover during and subsequent to year-end and a substantially increased  accounting burden in the wake ofHurricane Michael. 2019-003, "Timeliness of Bank Reconciliations",  Cause: We noted the City's bank accounts were not reconciled on a timely basis during the year. Additionally, audit adjustments were required during the audit to agree the accounting records to the amount listed on the bank reconciliation. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased accounting  burden in the wake of Hurricane Michael.  020-001."Management Override and Segregation ofI Duties". (REPEAT)  Cause: The size ofthe City's accounting and administrative staffa and turnover during the year precluded certain internal controls that would be preferred including: 1) review ofjournal entries posted to the accounting system by an individual not involved in the creating oft the journal entry and 2) restricting access for updating pay rates within the payroll system to 2020-002. "Reconciliation of Account Balances and Audit Adjustments", (REPEAT) Cause: For the year ended September 30, 2020, many accounts were not reconciled on a timely basis and certain adjustments were required to be made to the accounting records subsequent to the start oft the audit process related to year-end accrual entries. We noted this to be largely due tos significant personnel turnover during and subsequent to year-end and a substantially increased  management or human resources.  accounting burden in the wake of] Hurricane Michael. 2020-003. "Timeliness of Bank Reconciliations",  Cause: We noted the City' 's bank accounts were not reconciled on a timely basis during the year. Additionally, audit adjustments were required during the audit to agree the accounting records to the amount listed on the bank reconciliation. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased accounting  burden in the wake ofl Hurricane Michael.    2021-001, Management Override and Segregation ofDuties". (REPEAT)  Cause: The size of the City'sa accounting and administrative staff and turnover during the year precluded certain internal controls that would be preferred including: 1) review ofjournal entries posted to the accounting system by an individual not involved in the creating of the journal entry and 2) restricting access for updating pay rates within the payroll system to 2021-002, Reconciliation of Account Balances and Audit Adjustments". (REPEAT) Cause: For the year ended September 30, 2021, many accounts were not reconciled on a timely basis and certain adjustments were required to be made to the accounting records subsequent to the start of the audit process related to year-end accrual entries. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased  management or human resources  accounting burden in the wake ofHurricane Michael. 2021-003, "Timeliness of Bank Reconciliations". (REPEAT)  Cause: We noted the City's bank accounts were not reconciled on a timely basis during the year. Additionally, audit adjustments were required during the audit to agree the accounting records to the amount listed on the bank reconciliation. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased accounting  burden in the wake of Hurricane Michael.    Any audit findings disclosed that are required tol be reported for state financial assistance projects in accordance with Chapter 10.550? Dollar threshold used to distinguish between type A and type B programs: Identification of major State programs:  yes X none reported $583.411  CSFA Number 55.039  Program Name  Local Transportation Projects  B. Financial Statement Findings:  2019-001 Management Override and Segregation of Duties  Criteria: Internal controls are designed to safeguard assets and help prevent or detect losses from employee dishonesty or error. A fundamental concept in a good system ofi internal control is the segregation of duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases ofat transaction. Although internal controls are critical in the prevention and detection of fraud, management may still be able to Condition: The size of the City's accounting staff and turnover during the year precluded certain internal controls that would be preferred. Certain practices could be implemented to improve Cause: The size of the City's accounting and administrative staff and turnover during the year precluded certain internal controls that would be preferred including: 1) review of journal entries posted to the accounting system by an individual not involved in the creating of the journal entry and 2) restricting access for updating pay rates within the payroll system to management or human Effect: Errors or material misstatements in the financial statements may exist and notl be detected. Recommendation: We recommend management develop and implement controls that sufficiently  override controls toj perpetrate fraud.  existing internal control without impairing efficiency.  resources.  segregate duties within the accounting function.  2019-002 Reconciliation of Account Balances and Audit Adjustments  Criteria: Internal controls over financial reporting should include timely year-end reconciliations of all significant account balances, with such reconciliations to also include procedures related to the proper cutoff of significant revenue and expense activities. These reconciliations should be performed on a timely and regular basis to help prevent misappropriation and ensure timely Condition: Many significant account balances were not reconciled until a significant period oft time after year-end. Substantial journal entries and adjustments were required as a result of audit procedures, including various restatements to correct beginning fund balance and net position Cause: For the year ended September 30, 2019, many accounts were not reconciled on a timely basis and certain adjustments were required to be made to the accounting records subsequent to the  identification of errors or other issues.  balances.  49-    start of the audit process related to year-end accrual entries. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased Effect: Financial statements would be materially misstated ifs significant adjustments were not made. Errors or improper activity may not be detected on a timely basis if reconciliations are not Recommendation: We recommend management select and apply the appropriate accounting principles to prepare the financial statements in accordance with generally accepted accounting  accounting burden in the wake ofHurricane Michael.  performed timely. principles.  2019-003 Timeliness of Bank Reconciliations  Criteria: Bank accounts should be reconciled on a timely and regular basis to help prevent Condition: Bank reconciliations were not performed timely during the course oft the year. Cause: We noted the City's bank accounts were not reconciled on a timely basis during the year during the year. Additionally, audit adjustments were required during the audit to agree the accounting records to the amount listed on the bank reconciliation. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased Effect: Assets could potentially be misappropriated or accounting records could be misstated, with Recommendation: We recommend the City's finance department perform bank reconciliations within 30 days after the end of the month and ensure all reconciled balances per the bank  misappropriation and ensure the proper recording ofa all cash transactions.  accounting burden in the wake ofHurricane Michael. suchi issues not beingi identified on a timely basis, ifatall.  reconciliations agree to the general ledger.  Federal Program Findings and Questioned Costs: None. D. State Project Findings and Questioned Costs: None.  E. Summary Schedule of Prior. Audit Findings: Not applicable as there were no prior year findings. F. Corrective Action Plan: See Management's] Response to: findings on page 60.  -50-    Any audit findings disclosed that are required to be reported for state financial assistance projects in accordance with Chapter 10.550? Dollar threshold used to distinguish between type A and type B programs: Identification of major State programs: CSFA Number 55.039 31.070  yes X none reported $596.423  Program Name  Local Transportation Projects Hurricane Michael Recovery Grant Program  B. Financial Statement Findings:  2020-001 Management Override and Segregation of Duties  Criteria: Internal controls are designed to safeguard assets and help prevent or detect losses from employee dishonesty or error. A fundamental concept in a good system of internal control is the segregation of duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Although internal controls are critical in the prevention and detection of fraud. management may still be able to C'ondition: The size of the City's accounting staff and turnover during the year precluded certain internal controls that would be preferred. Certain practices could be implemented to improve Cause: The size of the City's accounting and administrative staff and turnover during the year precluded certain internal controls that would be preferred including: 1) review of journal entries posted to the accounting system by an individual not involved in the creating of the journal entry and 2) restricting access for updating pay rates within the payroll system to management or human Effect: Errors or material misstatements in the financial statements may exist and not be detected. Recommendation: We recommend management develop and implement controls that sufficiently  override controls to perpetrate fraud.  existing internal control without impairing efficiency.  resources.  segregate duties within the accounting function.  2020-002 Reconciliation of Account Balances and Audit Adjustments  Criteria: Internal controls over financial reporting should include timely year-end reconciliations of all significant account balances, with such reconciliations to also include procedures related to the proper cutoff of significant revenue and expense activities. These reconciliations should be performed on a timely and regular basis to help prevent misappropriation and ensure timely C'ondition: Many significant account balances were not reconciled until a significant period of time after year-end. Substantial journal entries and adjustments were required as a result of audit procedures. including various restatements to correct beginning fund balance and net position  identification of errors or other issues.  balances.  48.    Cause: For the year ended September 30, 2020. many accounts were not reconciled on a timely basis and certain adjustments were required to be made to the accounting records subsequent to the start of the audit process related to year-end accrual entries. We noted this t0 be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased Effect: Financial statements would be materially misstated if significant adjustments were not made. Errors or improper activity may not be detected on a timely basis if reconciliations are not Recommendation: We recommend management select and apply the appropriate accounting principles to prepare the financial statements in accordance with generally accepted accounting  accounting burden ini the wake ofHurricane Michael.  performed timely. principles.  2020-003 Timeliness of Bank Reconciliations  Criteria: Bank accounts should be reconciled on a timely and regular basis to help prevent misappropriation and ensure the proper recording of all cash transactions. Condition: Bank reconciliations were not performed timely during the course of the year. Cause: We noted the City's bank accounts were not reconciled on a timely basis during the year during the year. Additionally, audit adjustments were required during the audit to agree the accounting records to the amount listed on the bank reconciliation. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased Effect: Assets could potentially be misappropriated or accounting records could be misstated. with Recommendation: We recommend the City's finance department perform bank reconciliations within 30 days after the end of the month and ensure all reconciled balances per the bank  accounting burden in the wake of Hurricane Michael. suchi issues not being identified on a timely basis. ifat all. reconciliations agree to the general ledger. C. Federal Program Findings and Questioned Costs: None. D. State Project Findings and Questioned Costs: None.  E. Summary Schedule of Prior Audit Findings: Not applicable as there were no prior year findings. F. Corrective Action Plan: See Management's Response to findings on page 60.    Type of auditor's report issued on compliance for major Any audit findings disclosed that are required tol be reported for state financial assistance projects in accordance with Chapter 10.550? Dollar threshold used to distinguish between type A and type B programs:  State projects:  Unmodified  yes X none reported $351,585  Identification of major State programs:  CSFA Number 40.038 31.070  Program Name  Division ofH Housing and Community Development Hurricane Michael Recovery Grant Program  B. Financial Statement Findings:  2021-001 Management Override and Segregation of Duties (Second-Year Repeat Comment) Criteria: Internal controls are designed to safeguard assets and help prevent or detect losses from employee dishonesty or error. A fundamental concept in a good system of internal control is the segregation of duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to allj phases ofa transaction. Although internal controls are critical in the prevention and detection of fraud, management may still be able to Condition: The size of the City's accounting staff and turnover during the year precluded certain internal controls that would be preferred. Certain practices could be implemented to improve Cause: The size of the City's accounting and administrative staff and turnover during the year precluded certain internal controls that would be preferred including: 1) review ofj journal entries posted to the accounting system by an individual not involved in the creating of the journal entry and 2) restricting access for updating pay rates within the payroll system to management or human Effect: Errors or material misstatements in the financial statements may exist and not be detected. Recommendation: We recommend management develop and implement controls that sufficiently 2021-002 Reconciliation of Account Balances and Audit Adjustments (Second-Year Repeat Criteria: Internal controls over financial reporting should include timely year-end reconciliations of all significant account balances, with such reconciliations to also include procedures related to the proper cutoff of significant revenue and expense activities. These reconciliations should be performed on a timely and regular basis to help prevent misappropriation and ensure timely  override controls toj perpetrate fraud.  existing internal control without impairing efficiency.  resources.  segregate duties within the accounting function.  Comment)  identification of errors or other issues.  -47-    Condition: Many significant account balances were: not reconciled until a significant period oft time after year-end. Substantial journal entries and adjustments were required as a result of audit procedures, including various restatements to correct beginning fund balance and net position Cause: For the year ended September 30, 2021, many accounts were not reconciled on a timely basis and certain adjustments were required to be made to the accounting records subsequent to the start of the audit process related to year-end accrual entries. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased Effect: Financial statements would be materially misstated if significant adjustments were not made. Errors or improper activity may not be detected on a timely basis if reconciliations are not Recommendation: We recommend management select and apply the appropriate accounting principles to prepare the financial statements in accordance with generally accepted accounting 2021-003 Timeliness of Bank Reconciliations (Second-Year Repeat Comment) Criteria: Bank accounts should be reconciled on a timely and regular basis to help prevent misappropriation and ensure thej proper recording of all cashi transactions. Condition: Bank reconciliations were not performed timely during the course of the year. Cause: We noted the City's bank accounts were not reconciled on a timely basis during the year during the year. Additionally, audit adjustments were required during the audit to agree the accounting records to the amount listed on the bank reconciliation. We noted this to be largely due to significant personnel turnover during and subsequent to year-end and a substantially increased Effect: Assets could potentially be misappropriated or accounting records could be misstated, with Recommendation: We recommend the City's finance department perform bank reconciliations within 30 days after the end of the month and ensure all reconciled balances per the bank  balances.  accounting burden in the wake ofHurricane Michael.  performed timely. principles.  accounting burden in the wake of] Hurricane Michael. such issues not being identified on a timely basis, ifat all.  reconciliations agree to the general ledger.  Federal Program Findings and Questioned Costs: None. D. State Project Findings and Questioned Costs: None.  . Summary Schedule of] Prior Audit Findings: Not applicable as there were noj prior year findings. F. Corrective Action Plan: Seel Management's Response to findings on page 59.  48-    Mexico Beach Monthly Financial Report- February 2024  REVENUES: Taxes Adv Valorem Taxes Franchise Fees Utility Taxes Communication: Services Tax Sales Tax Gas Tax State Revenue Sharing Licenses & Permits Fines &F Forfeitures Interest Income Other Governmental Revenue Chargesf for Services Miscellaneous Revenue/Other Sources Totals: EXPENDITURES Elected Officials City Administrator City Clerk Legal Development: Services General Government Police Fire Code Enforcement General Maintenance Roads & Streets Canal Vehicle Maintenance Parks & Recreation Debt Service TOTALE EXPENDITURES  General Fund Budgeted Current Month  YTDReceived Received 155,828 $ 3,172,871 $ 10,645 $ 83,821 15,117 $ 56,284 $ $ $ $ $ $ 3,985 $ 3,985 $ 15,132 $ 49,652 42 $ 1,972 38,767 $ 182,974 25,567 $ 26,359 $ 9,304 31,678 8,059 35,879 $ 282,446 $ 3,645,475 Current Month YTDE Expenditures Expenditures $ 4,653 $ 12,811 $ 7,336 $ 5,000 $ 1,650 $ 54,285 $ 84,759 56,228 5,714 $ 12,495 26,602 21,240. 9,450 18,827 321,050 Current Month Revenue $ 262,982 Current Month YTDExpenditures Expenditures $ 29,379 Current Month Revenue $ 208,132 Current Month YTDE Expenditures Expenditures 51,716 Current Month Revenue $ 115,908 Current Month YTDE Expenditures Expenditures $ 31,420  %Received 86.26% 74.45% 57.79% 0.00% 0.00% 0.00% 14.49% 20.46% 14.93% 89.26% 0.04% 65.23% 0.09% 63.79% %Remaining $ 23,936 62.60% $ 69,260 56.29% $ 41,888 74.78% $ 29,187 56.30% $ 8,825 96.10% $ 201,205 52.81% $ 423,795 54.84% 713,546 47.21% $ 32,164 63.26% $ 65,872 81.08% $ 93,912 83.05% $ 76,848 74.68% $ 46,104 69.55% $ 167,142 50.75% $ $ 1,993,684 65.12% YTDRevenue $ 778,404 41.35% $ 216,254 88.52% YTDRevenue $ 680,452 55.93% $ 275,829 YTDRevenue $ 338,304 52.50% $ 178,441  $ 3,678,312 $ 112,580 $ 97,396 $ 26,780 $ 166,400 $ 80,000 $ 27,500 $ 242,640 $ 13,206 $ 205,000 $ 617,630 $ 48,567 $ 398,496 $ 5,714,507 Budgeted $ $ $ $ $ $ $ $ $ $ $ $ $ $  63,995 158,426 166,074 213,000 225,888 426,302 938,263 1,351,490 87,527 348,027 553,787 303,433 146,575 339,367 392,353 5,714,507  Budgeted Revenue $  %Collected %Remaining %Collected %Remaining 77.33% %Collected %Remaining 72.31%  Sewer Department  1,882,626  Budgeted Revenue $  Water Department  1,216,629  Budgeted Revenue $  Sanitation Department  644,418