ACFR FY 2022 FINAL BOOK - Flipbook - Page 187
Honorable Mayor and City Commissioners
City of Eustis
Eustis, Florida
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Pension Actuarial Methods and Assumptions—Management’s estimates are based upon risk and
market factors affecting governmental entities of similar sizes and employee census information.
Management also uses the assistance of an actuary hired by the City to project estimated
contributions.
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Leases—Management’s estimate related to the initial measurement of lease assets and liabilities,
interest expense, lease term, present value of lease payments and fair value of underlying assets is all
based on terms in the agreements and the discount rate, based on the implementation on GASB
Statement No. 87, Leases.
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Pension and Other Postemployment Benefits (OPEB)—Management’s estimates of the net pension
liability, unfunded actuarial accrued liability, and net OPEB obligation are based upon actuarial
methods and assumptions, which are selected based on risk and market factors affecting
governmental entities of similar sizes and employee census information. Management also uses the
assistance of an actuary hired by the City to project estimated contributions.
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Florida Retirement System (FRS) Pension Liabilities—As a participating employer in the FRS, the City
has recorded its share of the FRS net pension liability and related deferred outflows/inflows on its
statement of net position. These numbers are estimates based on assumptions embedded in the
employer allocations. If these assumptions were changed, the reported amounts could be
significantly affected. In addition, because the FRS operates on a fiscal year ending June 30, there is
a difference between the measurement date of these numbers (June 30, 2022) and the reporting date
(September 30, 2022).
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Investment Fair Value—Management’s estimate of the fair value of financial instruments is based on
the fair market value of the security at a particular point in time.
We evaluated the key factors and assumptions used to develop the estimates in determining that they
are reasonable in relation to the financial statements taken as a whole.
The disclosures in the financial statements are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were material,
either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during
the course of our audit.
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