ACFR FY 2022 FINAL BOOK - Flipbook - Page 186
GOVERNANCE LETTER
Honorable Mayor and City Commissioners
City of Eustis
Eustis, Florida
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Eustis, Florida (the City) as of and
for the year ended September 30, 2022. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards, as well as certain
information related to the planned scope and timing of our audit. We have communicated such
information in our letter to you dated May 24, 2023. Professional standards also require that we
communicate to you the following information related to our audit:
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements. The City changed
their accounting policies related to leases by adopting Governmental Accounting Standards Board (GASB)
Statement No. 87, Leases. Accordingly, the cumulative effect of the accounting change as of the beginning
of the year is reported in the financial statements. We noted no transactions entered into by the City
during the year for which there is a lack of authoritative guidance or consensus. All significant transactions
have been recognized in the financial statements in the proper period.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their significance
to the financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
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Estimation of the Allowance for Doubtful Accounts—Management’s estimate for the allowance for
doubtful accounts is based on historical collection rates and an analysis of the collectability of
individual receivables.
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Depreciation—The City uses straight-line depreciation and industry useful lives. The useful lives are
reviewed annually by management for reasonableness.
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