ACFR FY 2022 FINAL BOOK - Flipbook - Page 188
Honorable Mayor and City Commissioners
City of Eustis
Eustis, Florida
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated May 24, 2023.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation
involves application of an accounting principle to the City’s financial statements or a determination of
the type of auditor’s opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
The following are audit matters that we would like to bring to the attention of management and members
of the City Commission:
Implementation of New Accounting Standards
■ GASB Statement No. 96, Subscription-Based Information Technology Arrangements — The GASB has
issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements, which will
be effective for the for the year ending September 30, 2023. This Statement provides guidance on
the accounting and financial reporting for subscription-based information technology arrangements
(SBITAs) for government end users (governments). This Statement: (1) defines a SBITA; (2) establishes
that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding
subscription liability; (3) provides the capitalization criteria for outlays other than subscription
payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a
SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in
Statement No. 87, Leases, as amended.
We recommend the City gather information and start their analysis for any SBITAs to see if they are
applicable under GASB Statement No. 96.
During the course of our audit, we also noted the following:
Pensions Plan Data
The scope of our audit includes the Police and Fire pension plans, as they are an integral part of the
financial reporting for the City. These pension plans currently utilize outsourced accounting firms to
maintain financial records and pension-related employee data, information which is required for the
completion of our audit procedures. Furthermore, this information is required to be submitted to the
Plan’s actuaries for completion of the actuarial valuations which is required for disclosures to the financial
statements.
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