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Financial Condition Assessment Procedures

Information that may be used to conduct financial condition assessments is being provided within this Web site in Microsoft Excel format. Descriptions of the information provided are listed below. It is necessary to have Adobe Acrobat Reader in version 7.0 or higher to navigate through these documents (if you do not have Acrobat Reader or need a more current version, visit Adobe to obtain a free copy). Links to the data and instructions on use of the information using Microsoft Excel are contained in the INSTRUCTIONS – EXCEL. For data and instructions on use of the information using spreadsheet software other than Microsoft Excel, please contact our office at (850) 412-2881 or through e-mail at flaudgen_localgovt@aud.state.fl.us

The following local governmental entity example financial condition assessment indicators and related procedures were developed based on recommendations from a task force comprised of representatives or staff of the Auditor General, Executive Office of the Governor, Department of Financial Services, Legislative Auditing Committee, and various professional organizations associated with local governmental entities or auditors of such entities. Local governmental entity auditors may incorporate the example indicators and related procedures into the methodology they deem appropriate to carry out their responsibilities pursuant to Section 218.39(5), Florida Statutes.

The procedures include the use of financial indicators, calculated based on financial and other data, for performing trend analysis and for benchmark comparisons. To assist auditors and local governments in making financial condition assessments, the Auditor General is providing financial and other data (obtained from audit reports submitted to the Auditor General and other sources), financial indicators, benchmarks, and a template to use in performing preliminary financial condition assessments. If a preliminary financial condition assessment indicates deteriorating financial condition, further analysis is required before a conclusive financial condition assessment can be made. See Local Governmental Entity Example Financial Condition Assessment Indicators and Related Procedures, steps 5 and 6.

Descriptions of Information Provided on This Web Site

Benchmark Groupings - benchmarks are used in comparing financial indicator results of a given entity to other similar entities. Benchmarks were calculated using the average financial indicator results (for each indicator) of the entities included within a given benchmark grouping. There are up to three benchmarks provided for each entity. Links for benchmark groupings are found on the INSTRUCTIONS-EXCEL document. County and municipality benchmarks provided were grouped by (1) fund type and population, (2) by fund type and taxable property values, or (3) by fund type, population, and taxable property values combined. Special district benchmarks provided were grouped by fund type and expenditures for all districts and, for some districts, by function; by function and fund type; or by function, fund type, and expenditures. As used in these groupings, the term “fund type” refers to fund categories used by entities (governmental, proprietary, a combination of governmental and proprietary, or hospital enterprise). Unadjusted  benchmark groupings are provided in Microsoft Excel format for each benchmark grouping.

Financial Data - contains data for the 2011-12 through 2014-15 fiscal years extracted from the audit reports and other sources in Microsoft Excel format for each entity for which an audit report was submitted for the fiscal year ended September 30, 2015, as of October 31, 2016. This data is contained in a template so that the current year’s data may be added to preliminarily assess the entity’s financial condition as of September 30, 2016. For entities that had submitted an audit report for the fiscal year ended September 30, 2014, but had not submitted an audit report for the fiscal year ended September 30, 2015, we have included financial data for the 2010-11 through 2013-14 fiscal years

Template - the financial data provided through this Web site is contained in a template that can be used to prepare and calculate financial indicator results and graphs for a given entity. The price index used in the template was calculated based on the September 2016 Municipal Cost Index (MCI) published by American City and County Magazine, using 2012 as the base year (see Frequently Asked Questions, the link for which can be found in the INSTRUCTIONS-EXCEL, for a description of the calculation). The MCI is a weighted average of the consumer price index, producer price index for industrial commodities, and construction cost index. If another price index is desired, these indices may be changed on the template. [Note: for the financial indicators that are calculated using current dollars, the benchmarks provided were calculated using the MCI price index.]

Example Financial Condition Assessment Methodology - This document and related appendices provide an example methodology for evaluating preliminary financial indicator results.

The Auditor General anticipates releasing updated information annually. Auditors/local government officials using the information will be responsible for reviewing the data for reasonableness; however, the Auditor General will assist auditors/local government officials in determining the reasons for any data that appears questionable. Any questions or comments regarding the information, format, usability, etc. are encouraged and may be communicated to the Auditor General via e-mail at flaudgen_localgovt@aud.state.fl.us, by telephone at (850) 412-2881, or by mail to Auditor General, Local Government Section, 111 West Madison Street, Claude Pepper Building, Section 342, Tallahassee, FL 32399-1450.