Gulfport auditors present clean opinion on annual financial report; council receives CAFR

Lucas Hand, senior manager for the auditing firm that performed the review, presented the city of Gulfport's comprehensive annual financial report and said the auditors issued a clean, unmodified opinion.

Hand said the audit also produced a clean single-audit report (required when federal expenditures exceed federal thresholds) and a separate compliance report under the Yellow Book standards on internal controls and compliance. "We are once again issuing a clean and unmodified opinion," Hand told the council.

The auditors told the council the government's year-end figures showed $167,000,000 in cash and cash equivalents and a net position of about $527,000,000; year-over-year, the auditors reported revenues of about $146,000,000 against expenses of about $143,000,000, producing a net increase of roughly $3,100,000. The auditors also reported total liabilities and deferred inflows of roughly $350,500,000, of which about $264,000,000 was long-term in nature.

At the fund level, the auditors highlighted the general fund, which the presentation showed had total revenues of about $72,300,000 and expenditures of about $65,800,000, leaving an increase in fund balance of about $2,900,000 and an operating margin equal to approximately 5.7 months of operating expenditures. The auditor noted general-fund revenue sources on the slide: property taxes of about $22,700,000, other taxes (franchise and sales) totaling about $32,700,000, charges for services of about $4,900,000 and gaming fees of about $5,700,000.

Hand praised the city finance staff for the turnaround and timeliness of the submission. "I can't imagine the amount of hours that Kathy worked to make this happen," he said, referring to finance staff; he called the work "very impressive." The council moved to accept the audit and spread it across the minutes; the motion was seconded and recorded as approved.

Council members asked clarifying questions about the presentation. One council member asked how the culture and recreation expenditure of about $6,693,000 in the general fund was allocated; Hand said auditors review expense coding and appropriateness but are not the source of detailed departmental spending breakdowns.

The auditors recommended council members and citizens review the Management's Discussion and Analysis (MD&A) that accompanies the financial statements for a condensed, comparative explanation of the city's results and year-over-year changes.

The city formally moved to receive the comprehensive annual financial report and to spread the audit across the minutes; the mayor (presiding officer) called for the motion and it was carried as recorded in the minutes.