ACFR FY 2023 Final - Flipbook - Page 84
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 4 - Stewardship, Compliance, and Accountability (Continued)
In addition to the legal requirements discussed above, the Commission has adopted management
control and approval guidelines for expenditures and budget amendmentsÿ Critical components of
these management guidelines are as follows:
1ÿ The City Commission must approve transfers of budgeted amounts between fundsÿ
2ÿ A department director may transfer funds up to $5,000 within the department9s operating capital
accountsÿ
3ÿ No expenditure of encumbrance may occur without a sufocient budgetary balance.
The City uses encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds, are recorded to reserve that portion of applicable appropriationÿ
Encumbrances represent commitments related to unperformed contracts for goods or servicesÿ most
operating encumbrances outstanding at year-end are canceledÿ
In FY 2023 the City reclassioed three major funds: Street Improvement, Stormwater Utilities, and
Building Services, which were reclassioed as non-major funds. These funds no longer met the quantitative criteria thresholds (based on dollar amounts or percentage of total revenues, expenditures) for
being considered a major fund. The reclassiocation decision was made with careful consideration of
accounting standards, and the City9s operational realities to ensure that onancial reports accurately
and transparently reflect the City9s onancial activities and health. The reclassiocation was done in
accordance with GAAP and onancial reporting standards.
Note 5 - Cash, Cash Equivalents, and Investments
Cash and Cash Equivalents
The Florida Security for Depositors Act identioes those onancial institutions that have deposited
the required collateral in the name of the treasury of the State of Florida as qualioed public depositories. The City places deposits only with qualioed public depositories. Either FDIC or Florida9s
multiple Financial Institution Collateral pool insure all cashÿ Therefore, all deposits of the City are
fully insured and collateralizedÿ The amount of deposits (cash and cash equivalents) on September
30, 2023, is $54,701,508ÿ
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Annual Comprehensive Financial Report | September 30, 2023
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