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CAFR_FY Ending_09-30-2018
VILLAGE OF TEQUESTA, FLORIDA 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2018 VILLAGEOFTEQUESTACOUNCILMEMBERS2018 Fromlefttoright:CouncilMemberVinceArena,CouncilMemberKristiJohnson, MayorAbbyBrennan,CouncilMemberLaurieBrandon,ViceMayorThomasPaterno. i ii iii iv v vi Report on the Financial Statements Management’s Responsibility for the Financial Statements Auditors’ Responsibility Government Auditing Standards, Opinions Other Matters Required Supplementary Information Supplementary and Other Information Other Reporting Required byGovernment Auditing Standards Government Auditing Standards Government Auditing Standards 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 GOVERNMENT AUDITING STANDARDS Government Auditing Standards Internal Control Over Financial Reporting deficiency in internal control material weakness significant deficiency Compliance and Other Matters Government Auditing Standards Purpose of this Report Government Auditing Standards Report on the Financial Statements Auditors’ Responsibility Government Auditing Standards, Other Reporting Requirements Government Auditing Standards; AICPA Professional Standards Prior Audit Findings Official Title and Legal Authority Financial Condition and Management Additional Matters Purpose of this Letter VILLAGE OF TEQUESTA, FLORIDA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2018 01111H Source: Palm Beach County Tax Collector's System, tax year 2018 129 Percentage of Percentage of Taxable Total Village Taxable Total Village Assessed Taxable Assessed Taxable Taxpayer Value Rank Value Value Rank Value Tamwest Realty, Inc (County Line Plaza) $ 20,606,501 1 1.94% S 18,471,466 1 1.99% GHM Tequesta Holdings, LLC 17,696,273 2 1.67% Noble Centers, LLC (Tequesta Shoppes) 13,832,906 3 1.30% 9,000,000 2 0.97% RCMR JV, LLC 11,266,209 4 1.06% 7,400,000 4 0.80% Terrace Communities Tequesta, LLC 9,375,577 5 0.88% 7,070,621 3 0.76% Turnbery Beach Road, LLC 9,314,367 6 0.88% Florida Power & Light Co. 8,913,114 7 0.84% ALS North America, Inc. 6,238,869 8 0.59% 4,150,000 8 0.45% Tequesta Mall, LLC (SLO ML LLC) 5,393,594 9 0.51% 4,853,449 5 0.52% Tequesta Country Club 4,596,133 10 0.43% 4,158,957 7 0.45% Royal Tequesta LLC 3,946,354 9 0.43% JMZ Tequesta Properties, INC 4,770,176 6 0.52% Tracy Thomas J 3,796,045 10 0.41% Total $ 107,233,543 10.10% S 67,617,068 7.30% Source: Palm Beach County Tax Collector's System, tax year 2018 129 VILLAGE OF TEQUESTA, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Ended September 30, Taxes Levied for for the Fiscal Year (1) Collected within the Fiscal Year of the Levy Percentage Amount of Levy Collections in Subsequent Years Total Collections to Date (2) Percentage Amount of Levy 2009 $ 5,341,529 $ 5,162,044 96.6% $ 24,896 $ 5,186,940 97.1% 2010 4,809,222 4,627,732 96.2% 12,995 4,640,727 96.5% 2011 4,513,447 4,338,395 96.1% 22,377 4,360,772 96.6% 2012 4,425,793 4,254,037 96.1% 18,346 4,272,383 96.5% 2013 4,502,727 4,337,570 96.3% 21,847 4,359,417 96.8% 2014 4,946,692 4,755,463 96.1% 13,721 4,769,184 96.4% 2015 5,437,423 5,237,859 96.3% 3,891 5,241,750 96.4% 2016 5,866,490 5,651,698 96.3% (90) 5,651,608 96.3% 2017 6,314,407 6,083,598 96.3% (1,789) 6,081,809 96.3% 2018 6,674,381 6,422,680 96.2% -- 6,422,680 96.2% (1) The tax levied in a fiscal year is based on the taxable value of the prior year (2) Includes discounts taken by property taxpayers. Source: Palm Beach County Tax Collector's office. 130 VILLAGE OF TEQUESTA, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year Ended September 30 Governmental Activities Revenue Notes Bonds Payable Capital Leases Business -type Activities Revenue Notes Bonds Payable Total Primary Government Percentage of Personal Income Per Capita 2009 $ 3,709,027 $ 155,448 $ 6,668,462 $ 10,532,937 3.03% 1,794 2010 3,491,028 88,613 6,405,528 9,985,169 3.04% 1,774 2011 3,263,515 45,092 6,132,618 9,441,225 2.92% 1,677 2012 3,026,070 - 5,849,788 8,875,858 2.94% 1,572 2013 2,778,261 - 5,553,570 8,331,831 2.65% 1,474 2014 2,519,635 385,059 5,245,703 8,150,397 2.50% 1,448 2015 2,249,720 561,001 4,925,818 7,736,539 2.37% 1,366 2016 1,968,023 547,423 4,592,420 7,107,866 1.81% 1,247 2017 1,674,030 400,739 4,244,561 6,319,330 1.53% 1,103 2018 1,367,204 277,951 3,882,784 5,527,939 1.26% 944 Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements. 131 VILLAGE OF TEQUESTA, FLORIDA RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS (2) 5,872 $ 926,207,036 $ 10,532,937 $ 10,532,937 1.14% Assessed (A) (B) (A - B) Ratio of Net Net Value of Gross Debt Service Net O/S Debt to Outstanding Fiscal Year Ended (1) Taxable Outstanding Funds Outstanding Value of Debt September 30, Population Property Debt Available (O/S) Debt Taxable Property Per Capita 2009 5,872 $ 926,207,036 $ 10,532,937 $ 10,532,937 1.14% 1,794 2010 5,629 833,906,426 9,985,171 9,985,171 1.20% 1,774 2011 5,629 780,222,257 9,441,225 9,441,225 1.21% 1,677 2012 5,646 765,017,585 8,875,858 8,875,858 1.16% 1,572 2013 5,652 779,911,042 8,331,831 8,331,831 1.07% 1,474 2014 5,629 816,331,544 8,150,397 8,150,397 1.00% 1,448 2015 5,665 863,937,071 7,736,539 7,736,539 0.90% 1,366 2016 5,699 930,983,422 7,107,866 7,107,866 0.76% 1,247 2017 5,731 1,002,224,986 6,319,330 6,319,330 0.63% 1,103 2018 5,857 1,060,772,539 5,527,938 5,527,938 0.52% 944 (1) Florida Estimates of Population - Bureau of Economic and Business research, University of Florida. (2) Form DR -422 "Certificate of Final Taxable Value" 132 VILLAGE OF TEQUESTA, FLORIDA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Total Assessed Value (1) $ 1,060,772,539 Legal Debt Margin Debt limitation - 10% of total assessed value (2) 106,077,254 Total bonded debt outstanding - Less amount in debt service fund - Total Debt Applicable to Limitation Legal Debt Margin $ 106,077,254 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt Limit $ 83,442,520 $ 83,390,643 $ 78,022,226 $ 76,501,759 $ 77,991,104 $ 81,633,154 $ 86,393,707 $ 93,098,342 $ 100,222,499 $ 106,077,254 Total Net Debt Applicable to Limit Legal debt margin $ 83,442,520 $ 83,390,643 $ 78,022,226 $ 76,501,759 $ 77,991,104 $ 81,633,154 $ 86,393,707 $ 93,098,342 $ 100,222,499 $ 106,077,254 Total Net Debt Applicable to Limit as a Percentage of Debt Limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% (1) Form DR -422 "Certificate of Final Taxable Value" (2) Village of Tequesta Charter Section 5.02 Limitations 133 VILLAGE OF TEQUESTA, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2018 (a) Sources: Palm Beach County and PBC School Board Note: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the Village taxable assessed value and dividing it by the PBC taxable assessed value. (Data provided by the PBC Property Appraiser's Office) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village of Tequesta. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of Tequesta. This process recognizes that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and therefore responsible for repaying the debt of each overlapping government. 134 Estimate Estimate Share of Net Percentage Direct and Debt Applicable to Overlapping Governmental Unit Outstanding Teguesta Debt (a) (b) OVERLAPPING Palm Beach County $ 82,850,000 0.60% $ 497,100 P.B.C. School Board 9,853,000 0.60% 59,118 Subtotal, overlapping debt 556,218 DIRECT DEBT Village of Tequesta 1,645,154 100.00% 1,645,154 Total direct and overlapping debt $ 2,201,372 (a) Sources: Palm Beach County and PBC School Board Note: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the Village taxable assessed value and dividing it by the PBC taxable assessed value. (Data provided by the PBC Property Appraiser's Office) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village of Tequesta. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of Tequesta. This process recognizes that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and therefore responsible for repaying the debt of each overlapping government. 134 VILLAGE OF TEQUESTA, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Per Palm Beach Capita County Fiscal Population Personal Personal Median Unemployment Year (1) Income (2) Income (2) Age (3) Rate (4) 2009 5,872 $ 347,311,184 $ 59,147 47.5 9.7% 2010 5,629 328,497,182 58,358 47.5 11.4% 2011 5,629 323,447,969 57,461 49.9 11.0% 2012 5,646 302,061,000 53,500 49.9 9.2% 2013 5,652 314,409,456 55,628 49.9 7.1% 2014 5,629 326,397,565 57,985 49.9 6.0% 2015 5,665 379,067,810 66,914 49.9 5.3% 2016 5,699 391,766,357 68,743 49.9 5.2% 2017 5,731 412,322,526 71,946 49.9 3.7% 2018 5,857 437,834,178 74,754 49.9 3.1% Sources: (1) Florida Estimates of Population - Bureau of Economic and Business research, University of Florida. (2) US Department of Commerce, Bureau of Economic Analysis, Regional Economic Information System. (3) U.S. Census Bureau, 2010 Census (4) U.S. Department of Labor, Bureau of Labor Statistics, Labor Market Statistics Center, Local Area Unemployment Statistics Program 135 VILLAGE OF TEQUESTA, FLORIDA PRINCIPAL EMPLOYERS - PALM BEACH COUNTY CURRENT YEAR AND NINE YEARS AGO 2018 2009 53,606 N/A 56,809 N/A Source: Business Development Board of Palm Beach County Employment information for the Town is not available N/A = not available 136 Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment Palm Beach County School Board 21,466 1 N/A 21,718 1 N/A Palm Beach County Government 5,952 2 N/A 11,319 2 N/A Tenet Coastal Division Palm Beach County 5,939 3 N/A 4,500 3 N/A NeatEra Energy / Florida Power & Light 4,404 4 N/A 3,632 4 N/A Hospital Corporation of America (HCA) 3,550 5 N/A 3,395 5 N/A Boca Raton Regional Hospital 2,800 6 N/A 2,100 10 N/A Florida Atlantic University 2,644 7 N/A 2,838 7 N/A Veterans Health Administration 2,535 8 N/A 2,207 8 N/A Bethesda Health, Inc 2,282 9 N/A Office Depot (Headquarters) 2,034 10 N/A 2,100 9 N/A Jupiter Medical Center Wackenhut Corporation 3,000 6 N/A 53,606 N/A 56,809 N/A Source: Business Development Board of Palm Beach County Employment information for the Town is not available N/A = not available 136 VILLAGE OF TEQUESTA, FLORIDA FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2009 2010 2011 2012 2013 Governmental Activities 10.5 General government 15.0 10.0 10,5 10.5 11.5 Public safety 49.0 50.0 49.0 50.0 53.0 Transportation 4.0 4.0 4.0 4.0 5.0 Leisure services 3.0 3.0 3.0 3.0 3.0 Total Governmental Activities 71.0 67.0 66.5 67.5 72.5 Business -type Activities 18.6 20.4 20.9 1.0 1.2 Water 16.0 15.0 14.5 14.5 16.5 Stormwater 1.0 1.0 1.0 1.0 1.0 Total Business -type Activities 17.0 16.0 15.5 15.5 17.5 Total Primary Government 88.0 83.0 82.0 83.0 90.0 Source: Village of Tequesta Finance Department Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full -time -equivalent employment is calculated by dividing total labor hours by 2,080. 2014 2015 2016 2017 2018 10.5 10.3 10.3 10.8 11.8 51.0 51.0 52.0 53.0 52.0 5.0 5.9 6.9 8.1 7.1 3.0 3.0 3.0 3.0 3.0 69.5 70.2 72.2 74.9 73.9 16.5 18.6 18.6 20.4 20.9 1.0 1.2 2.2 1.7 1.7 17.5 19.8 20.8 22.1 22.6 87.0 90.0 93.0 97.0 96.5 137 Governmental Activities General government Registered voters Public safety: No. of full-time certified police officers No. of calls received No. of arrests No. of parking violations No. of incident numbers issued Fire department: No. of full-time certified firefighters No. of emergency responses No. of transports No. of fires extinguished/alarms No. of inspections Building, zoning: No. of building permits issued No. of building inspections conducted Leisure services: No. of Spring Classes No. of Summer Classes No. of Movies Business -type Activities Water: No. of customers Average daily consumption Sources: Various Village departments VILLAGE OF TEQUESTA, FLORIDA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4,612 4,505 4,543 4,676 18 17 19 11 3,533 3,178 3,266 3,272 251 296 204 129 131 124 82 149 887 881 595 622 21 21 22 21 1,189 1,043 1,096 1,155 651 562 622 695 538 481 474 460 476 480 462 495 784 812 800 883 1,771 1,579 1,728 1,931 8 10 10 10 5 4 4 4 4 3 3 3 4,854 4,702 4,634 4,813 4,017 4,951 18 20 19 18 19 19 3,571 3,548 3,853 3,109 3,442 3,443 136 168 174 94 108 69 328 120 207 61 39 20 691 725 552 345 312 254 21 18 22 22 22 22 1,372 1,197 1,291 1,409 1,286 1,227 675 693 1,006 817 722 724 697 504 285 254 309 267 539 713 499 654 742 608 914 929 1,034 1,583 1,755 1,356 2,176 2,201 1,705 2,472 3,017 2,634 10 8 8 12 10 10 4 4 4 4 4 4 3 4 3 3 3 3 4,983 4,982 5,019 4,996 5,037 5,039 5,038 5,055 5,042 5,087 2.175 mg 2.175 mg 2.698 mg 2.550 mg 2.454 mg 2.422 mg 2.500 mg 2.600 mg 2.700 mg 2.781 mg * The number is much lower than the year before due to increased number of reserve officers to cover for the full-time officers that left the department during the FY 2012. 138 VILLAGE OF TEQUESTA, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Governmental Activities General government: Municipal center 1 1 1 1 1 1 1 1 1 1 Public safety Police: No. of stations 1 1 1 1 1 1 1 1 1 1 No. of patrol units 9 15 15 11 10 11 10 12 10 12 Fire: No. of stations 1 1 1 1 1 1 1 1 1 1 No. of ambulances 2 3 3 3 3 3 2 2 2 2 No. of pumpers 2 3 3 3 3 3 3 3 2 2 Transportation: Miles of street lane miles 24 24 24 24 24 24 24 24 24 24 No. of bridges 1 1 1 1 1 1 1 1 1 1 Leisure services No. of parks 4 4 5 5 5 6* 6 6 7 7 No. of park acreage 50 53 54 54 54 62 * 62 62 62 62 No. of playgrounds 2 2 2 2 2 2 2 2 2 2 No. of baseball/softball diamonds 3 3 3 3 3 3 3 3 3 3 No. of skate -parks 1 1 1 1 1 1 1 1 1 1 Business -type activities: Water: Miles of water mains 72 73 72 72 73 73 73 77 77 77 No. of fire hydrants 430 430 430 430 433 409 430 456 435 435 3,250 3,250 3,250 3,250 2,750 2,750 2,750 2,750 2,750 2,750 Storage capacity (thousands of gallons) Sources: Various Village departments * The green area has been identified as a park (Linear/Green Mile park) 139 REPORTING SECTION MARCUM ACCOUNTANTS ,& ADVISORS INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTA UDITING STANDARDS To the Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the Village of Tequesta, Florida (the Village), as of and for the fiscal year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements, and have issued our report thereon dated March 29, 2019. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly, we do not express an opinion on the effectiveness of the Village's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Village's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 140 MARCUMGROUP MEMBER Marcum LLP ■ 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach, Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 marcumllp.com Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Village's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. °Y aAe�l «P West Palm Beach, Florida March 29,2019 141 MARCUM ACCOUNTANTS ,& ADVISORS MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA To the Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida Report on the FinancialStatements We have audited the financial statements of the Village of Tequesta, Florida (the Village), as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated March 29, 2019. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT -C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 29, 2019, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The Village was incorporated in 1957 by laws of Florida 57-1915. There are no component units related to the Village. © 142 M7ARCUM GROUP MEMBER Marcum LLP ■ 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach, Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 marcumllp.com Financial Condition and Management Section 10.554(l)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the Village has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the Village did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(l)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the Village. It is management's responsibility to monitor the Village's financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Our assessment was performed as of the fiscal year end. Section 10.554(l)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(l)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Mayor and the Village Council, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. `%Cay LSP West Palm Beach, Florida March 29, 2019 143 MARCUM ACCOUNTANTS ADVISORS INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE PURSUANT TO SECTION 218.415 FLORIDA STATUTES To The Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida We have examined the Village of Tequesta's (the Village) compliance with Section 218.415 Florida Statutes for the fiscal year ended September 30, 2018. Management is responsible for the Village's compliance with the specified requirements. Our responsibility is to express an opinion on the Village's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Village complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Village complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Village's compliance with specified requirements. In our opinion, the Village complied, in all material respects, with Section 218.415 Florida Statutes for the fiscal year ended September 30, 2018. This report is intended to describe our testing of compliance with Section 218.415 Florida Statutes and it is not suitable for any other purpose. West Palm Beach, Florida March 29, 2019 M7ARCUM GROUP MEMBER 144 Marcum LLP ■ 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach, Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 marcumllp.com