presentation on the annual conference of financial report, Mr. Aver. Thank you very much, Mayor. Every year on September 30th, it is the obligation of municipalities in the state of New York to take a snapshot of their financial condition. Every day our financial situation changes based on the bills that come in and the checks that are paid, the collections that are taken in. So it's an evolving situation and September 30th of 2023 was the day that we took the snapshot. This is one of the two major undertakings of our financial services department every year. And they do tend to overlap, we're in the thick of the budget now. And that's the other major undertaking of that department. But this snapshot gives all municipalities an opportunity to assess where they're at financially and how they're performing in their investments. So I'll turn this over to our Financial Services Director, Andrew Thompson, to introduce our guest this evening. Thank you. Newview Mayor, City Commission, Andrew Thompson, Financial Services Department. So we have completed our audit, and we are joined tonight by our external auditor, Ms. Karsina Allison. She was joined just by Zoom, and she has a presentation going over the annual comprehensive financial report at a very high level, and then the results of their audit work. Karsina. Hi, good evening. I'm Karsina. Hi, and good evening. I'm Kershina Allison of BCA Watson Rice. We did conduct the audit as of 930, 2023, including the financial statement audit as well as the compliance audit and the single audit toward the city at that time. The audit was complete and was also submitted to the government finance Office of Association, which does an additional review as well, which we'll speak about. At this time, I'm going to share my screen. As we get ready to go through these results. So as part of the audit, we do issue what is called an annual comprehensive financial report. In that report, there are multiple components of that report that are required as part of the annual comprehensive financial report. This goes beyond just general annual financial statements and includes a couple additional I-Ps. With that, we do have the part that we claim belongs to, and that's the independent auditors report, and that's where we give our opinion on the financial statements and the schedules that follow our report. So our report is an unmodified report or a clean opinion from the financial statements this year. And included in that annual comprehensive financial report includes management's discussion and analysis. This is where management has prepared a narrative description of fluctuations, amounts and numbers and given a little story behind what you will see and what's occurred in the city and this is management's perspective and they're able to explain those numbers through that management discussion and analysis action. These, we call them the basic financials. They are repaired in accordance with generally accepted accounting principles or a gap, which kind of sets the standard for how accounting is presented across the entire country. So it kind of gives that even more where things are being reported under a certain framework and that framework is the get-print. The notes to the financials include the narrative description which are disclosures for some of those significant amounts that are in that financial. We do have a budgetary comparison schedule where you can see the budget to actual as well that are in the back of that as well as a breakdown of some of those amounts that are included in those basic financials and maybe multiple funds included in one number. You want to see what the breakdown of each of those funds are with combining non-major governmental funds is where you can see that right down in those reports. So this colorful chart here, financial statements or the state and net position, some of you are a business may equate it to a balance sheet, is generally broken down into three seconds. You have your assets and deferred outflows of them, and then you have your liabilities, and what we call deferred inflows. The asset minus the liabilities is the net position. So you have those three main components that are shown, and you have the clusters of them for the last three years, to just show a trend of how this balance sheet has looked over the last three years. So we take a look at the tallest bar here. This is where we're looking at the assets and deferred outflows. This total bar in the current year is $408 million. It was previously $399 million in the previous year. The yellow and pink sections of this bar make up the assets. So this bar is generally assets and there's a very small piece that shows the bird outflows which is a piece that relates to recording how we record tensions. Of those assets we have broken down into capital assets and then some cash and other items. As you can see capital assets has consistently made up the bulk of your assets for a number of years. Last year those capital assets were about 215 million and the current year is 241 million. As city continues to do improvements, those capital assets will continue to increase. They are offset by depreciation that occurs on an end of the basis. So what the main driver of the increase that you see in those total assets is are those capital assets. That's offset that it looks about an 18, 19 million dollar increase in capital assets was offset by decreases in the cash and other assets and a decrease in those deferred outflows related to pensions. So that's the first that first one. The second bar is your liabilities and deferred inflows. The liabilities have consistently deferred inflows. The liabilities have consistently been quite less than your assets and deferred outflows is not something you generally want to see. So if you take your asset, think of those are the things that you all want to provide future benefit liabilities or generally the obligations that have been taken on to happen as such. So if you look at those liabilities last year, there are about $2007 million in total. In the current year, there are $196 million in total. So those liabilities have gone down. Still very close to where on the $200 million mark, they've stayed relatively consistent. There were some funds held last year related to Parpa and things like that that were not yet earned, they kind of sat in that liability bucket as those items have been earned. They come off and as you pay your debt for those debt bounces that you have is you make payments on that debt that liability also goes down. So those are the main drivers of the liabilities there. And then the last bar, which is that purple one on the end, is the net position. So if you take all of the assets and the furred outflows and things that have a future benefit to you, subtract your liabilities, or any of your deferred inflows or deferred inflows, we think of them as expenses for a future period. So if you take everything you own minus everything you own that net position is kind of what's left over and kind of really sets a bar where you stand. That net position was $193 million in the previous year and is now up to about $213 million in the current year. The net position is broken down into three main components. It is net investment in capital assets, unrestricted, and restricted. As you can see, as we talked about on the asset side, that the main asset, the largest component of your assets, are those capital assets and buildings and capital infrastructure items that you own. Your net worth or your net position, excuse me, is largely made up of your net investment in capital assets. So that kind of takes what are the buildings you own, less the liabilities against it, is a very short explanation, and then you know what what is your true position in those. And as you can see consistently across the board that that purple section which is those capital assets has been the bulk of that net position. And it has gone up this year as we talked about those additional improvements, etc. that the city has made. Okay. I'm not sure what's happening. So this slide takes a little bit of a different perspective. This is looking at changes in the net position or activities. These are revenues, what do you earn in the current year, and expenditures that you earn. When I say current year, that's the current year ended in 9.30, 2020. And the difference within those revenues and expenses, we don't call it net income, we call it change net position or change net assets as we look at this. As you can see, the revenue is the yellow and orange bar, and you can see how that is grown consistently over the last three years, in the current year, it's about $119 million, in the previous year, it was $97 million. The biggest pieces of these relate to your charges for services, property taxes, and that consistent we has been the biggest driver that even though the millage rates did decrease for the city during the year due to the increase in property values there were still increases there as well with the at at-alarm-related items that are coming through. So the greed bar is the expenses, and these are the expenses or expenditures, excuse me, that are used to carry out the obligations of the city or what's been spent each year. And you can see that those expenditures have increased as there are more as wages increased, as goods and services increased. What you need to when you are charging for services, what you need to do to provide those services, those fees go up on a consistent basis as well. So it costs more to provide. However, if we take a look at your total revenues of $119 million, less your expenditures of about $200 million, a little rounding in there, the change in net assets or the change in net position is $20 million. So that's that the hot peat bar and basically what this shows is that you made you brought in more than expenditures that went out the door. The difference between those two was that's 20 bucks. So this slide looks at specifically the general fund, as I'm using, the state has multiple funds that are used, but from the general fund perspective, this kind of breaks down and we look at what is in that fund balance of just the general fund itself, what are those items that are included. And that purple set so we'll start with the purple bar. These represent items that are non-spendable. So these are held in your net position but is not an ask-you-famexion spend. This relates to prepayments or you know payments that you've made in advance for certain items. That sit as an asset. The next section we look at the yellow bar, like a movie screen, not the way, is the restricted portion. That restricted portion is about 8 million and most of that is restricted for building co-incorporishment. The blue section represents items that are assigned or have been assigned to a specific purpose and about seven million events been assigned to next year's budget. And then the 21 million is the unassigned portion. These are items that are available for city use as allowed by the city's fiscal policies. So in addition to the financial statements, we do also look at compliance and do compliance audit tests. This includes federal single audit compliance. We look at compliance with state statutes and looking at the city's own policies and best practices where, of course, significant areas. The federal single audit is when you, anytime you receive federal or state funding and excess of $750,000, there is an additional test that must be performed from a compliance standpoint. Those funding sources who are giving you all that those additional funds want to know and see how those funds are being spent and that they're following the requirements that those funds were provided for. With that being said, we did go through our compliance test as well and we also tested, we took a look at internal controls as we assessed the risk of the entity, et cetera. Overall, we did not have any instances of non-compliance that were noted, you know, heightened risk factors, and so on. The state of Florida requires a management letter as part of the rules of the audit general. And in this, there are specific items at the state, specifically, is looking for that would be included in their letter That may be a little bit different from some of the the regular compliance letters However, there were no comments to to put into the state letter for this year in North upright Just want to bring to your attention the governmental accounting standards board or gas fees we'd like to call it often comes out with new accounting for announcements. When those new accounting for announcements come out your accounting team has to change the way they may be accounting for a specific lion item. as we talked about, the financial statements are presented in accordance with generally accepted accounting principles. These are the pronouncements that come out to make sure everyone is in line with those principles. As we go out, anytime a change is made, and we look at those changes, we look to see what's applicable, does it have an impact on the financials, etc. This was the most recent one that did have an impact on the financials, et cetera? This was the most recent one that did have an impact on the city related to subscription based information technology, georengements, and the city did implement it. Fully, they did get into account for announcement and implemented in their books. And it has been reflected in the current year of financial statements. This slide here speaks to our communications of the governing board is overseers of the audit. We consider the city commission to be that governing board and the governing body for the audit specifically. Any time we would have any changes on our plan scope we encountered any significant difficulties if we had issues with misstatements. I have to be found fraud, but it was not material enough to be in maybe one of the statements and one of those letters we talked about, but it involved management. That's something that we even need to to bring to everyone's attention. The idea in the flag is to suspect suspected fraud. If you had any significant findings, issues, non-compliance, any of those types of things, and if they may not fit necessarily into one of those letters we spoke about compliance purposes, we still need to communicate those to the governing body. However, we've kind of just listed here with that letter in tales and some of the items that are included in it, however, just want to count as overarging say there were no adverse matters to report to the city commissioner. These items that are listed here are just examples of the items that would be included in the letter. We did not have any leads to present. So on this slide, we want to talk about the GFOA certificate of achievement. The certificate of achievement in financial reporting is a national program and it is established to help those government entities as we talk about have certain requirements based on gap. These are the things you have to do. You have the option to present more, have more disclosures to provide users more transparency and information that's helpful to users of the financial statements. And there's certain criteria that must be met in order to say that your financial statements met these requirements. That go above and beyond the basic gap requirements. And with that, the city has been submitting for this award and has received this award again. In 2022, the 2023 report has been submitted to the GFOA. The GFOA will do their own review of the financial statements above and beyond what we do as auditors. They provide a secondary review. They'll look at how announcements were implemented, etc. and provide comments if any. And if it meets the criteria, recognition is given. This is something that is significant. It does require significant level of effort to report in this manner. Not all government entities do it because it does require a certain level of skill, knowledge, labor, et cetera to go into producing these additional items that are necessary for this certificate in award. The city has received the award that's presented in the most recent financial statements as they have for 22 years now. And we are in the most recent one has also been submitted timely as well for consideration. So I just want to bring that to everyone's attention and that this is an achievement that the city has continued to make.