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CITY OF FORT LAUDERDALE _ FLORIDA - MyFlorida.com Powered By Docstoc
					Comprehensive
Annual Financial
    Report
            of the

        City of
Fort Lauderdale, Florida




    Fiscal Year Ended
   September 30, 2011
           Prepared by
     The Finance Department
CITY OF FORT LAUDERDALE, FLORIDA


COMMISSION - MANAGER FORM OF GOVERNMENT

               CITY COMMISSION
             Mayor John P. “Jack” Seiler
 Vice-Mayor/Commissioner Bobby B. DuBose, District III
       Commissioner Bruce G. Roberts, District I
     Commissioner Charlotte E. Rodstrom, District II
       Commissioner Romney Rogers, District IV


                   CITY MANAGER
                   Lee R. Feldman

                  CITY ATTORNEY
                  Harry A. Stewart

                   CITY AUDITOR
                    John Herbst

               DIRECTOR OF FINANCE
                  Douglas R. Wood

          DEPUTY DIRECTOR OF FINANCE
                Kirk W. Buffington

                    CONTROLLER
                    Gloria LeClaire

                    TREASURER
                    Lynda C. Flynn
                              CITY OF FORT LAUDERDALE, FLORIDA
                            COMPREHENSIVE ANNUAL FINANCIAL REPORT
                             FISCAL YEAR ENDED SEPTEMBER 30, 2011

                                         TABLE OF CONTENTS

                                                                                                     Page
INTRODUCTORY SECTION

   Letter of Transmittal …………………………………….…………………………………………………….……                                          i
   Certificate of Achievement ………………………………………………………………………………………...                                    viii
   Organization Chart …………………………………………………..……………………………………………..                                         ix

FINANCIAL SECTION

   Report of Independent Certified Public Accountants …………………………………………………………..                          1
   Management’s Discussion and Analysis …………………………………………………………………….….                                   3
   Basic Financial Statements
       Government-wide Financial Statements
            Statement of Net Assets ………………………………………………………………………………..                                  11
            Statement of Activities …………………………………………………………………………………..                                 12
       Fund Financial Statements
            Balance Sheet – Governmental Funds ………………………………………………………….……                              14
            Reconciliation of the Balance Sheet of Governmental Funds to the
                 Statement of Net Assets …………………………………………………………………………..                               15
            Statement of Revenues, Expenditures and Changes in Fund Balances -
                 Governmental Funds ……………………………………………………………….……………...                                 16
            Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
                 Balances of Governmental Funds to the Statement of Activities ………………………….....        17
            Statement of Revenues, Expenditures and Changes in Fund Balances –
                 Budget and Actual - Budget Basis - General Fund …………………………………………....                 18
            Statement of Net Assets – Proprietary Funds …………………………………………………….…                        21
            Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds ………..…      23
            Statement of Cash Flows - Proprietary Funds ………………………………………………….…....                     24
            Statement of Fiduciary Net Assets – Fiduciary Funds ……………………………………………...                  26
            Statement of Changes in Fiduciary Net Assets – Pension Trust Fiduciary Funds …………...….    27
       Notes to the Financial Statements ………………………………………………………………………….                                28
   Required Supplementary Information
       Schedule of Funding Progress – Employee Retirement Systems ………………………………………                     64
       Schedule of Contributions from the Employer and Other Contributing Entities –
            Employee Retirement Systems …………………………………………………………………………                                  65
       Schedule of Funding Progress – Other Post Employment Benefits……………………………………..                  66
   Combining Financial Statements
       Combining Balance Sheet - Nonmajor Governmental Funds …………………………………….….…                       67
       Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
            Nonmajor Governmental Funds …………………………………………………………………..……                                 71
       Combining Statement of Net Assets – Nonmajor Enterprise Funds ……………………………………                   75
       Combining Statement of Revenues, Expenses and Changes in Net Assets –
            Nonmajor Enterprise Funds ………………………………………………………….……………..….                                76
       Combining Statement of Cash Flows - Nonmajor Enterprise Funds ……………………………….…..                 77
       Combining Statement of Net Assets – Internal Service Funds ……………………………………….…                   79
       Combining Statement of Revenues, Expenses and Changes in Net Assets –
            Internal Service Funds …………………………………………………………….…………………....                                80
       Combining Statement of Cash Flows - Internal Service Funds ……………..……………………….….                 81
       Combining Statement of Fiduciary Net Assets – Pension Trust Fiduciary Funds ………………….…          83
       Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Fiduciary Funds …….…    84
       Statement of Changes in Assets and Liabilities – Arts and Science District Garage
            Agency Fund …………………………………………………………………………………………..…                                         85
   Other Financial Information
       Schedules of Revenues and Expenditures Compared to Budget:
            Community Redevelopment Agency Fund ……………………………………………………….…..                             86
            Beach Business Improvements Fund …………………………………………………………………                                87
            Building Fund…………………………………………………………………………………………….                                         88
            Debt Service Funds ………………………………………………………………………………….…                                      89
            Perpetual Care Fund…………………………………………………………………………………….                                      91
                              CITY OF FORT LAUDERDALE, FLORIDA
                            COMPREHENSIVE ANNUAL FINANCIAL REPORT
                             FISCAL YEAR ENDED SEPTEMBER 30, 2011

                                   TABLE OF CONTENTS (Continued)

                                                                                                     Page
       Schedules of Revenues and Expenses Compared to Budget (Continued):
           Water and Sewer Fund ………………………………………………………………………………...                                     92
           Sanitation Fund ………………………………………………………………………………………….                                        92
           Parking System Fund ………………………………………………………………………………..…                                      93
           Airport Fund………………………………………………………………………………………….…..                                         93
           Stormwater Fund ……………………………………………………………………………………..…                                        94
           City Insurance Fund …………………………………………………………………………………….                                      95
           Central Services Fund ………………………………………………………………………………….                                     95
           Vehicle Rental Fund …………………………………………………………………………………….                                      96
       Capital Assets Used in the Operation of Governmental Funds
           Schedule of Capital Assets by Function and Activity …………………………………………….…                    97
           Schedule of Changes in Capital Assets by Function and Activity ………………………………...             98
       Schedules of Sources and Uses:
           General Obligation Construction Fund 1997 …………………………………………………….…..                         99
           General Obligation Construction Fund 2005 and 2011A……………………………………….…..                    100
           Excise Tax Construction Fund 1998C ……………………………………………………………..…                             101
           Florida Intergovernmental Construction Fund 2002 ………………………………………………..                     102
           Tax Increment Revenue Construction Fund 2004 ………………………………………………...                        103
           Special Obligation Construction 2008B………………………………………………………………                             104
           Special Obligation Construction 2011A ……………………………………………………………..                           105
           Water and Sewer Revenue Bond Construction Series 2003, 2006, 2008 and 2010 ……..…….        106

STATISTICAL SECTION

   Net Assets by Component - Last Nine Fiscal Years ……………… ……………………………………….….                        108
   Changes in Net Assets - Last Nine Fiscal Years ………….……………………………………………………                          109
   Fund Balances - Governmental Funds -Last Ten Fiscal Years…………………………………………….….                     111
   Changes in Fund Balances – Governmental Funds - Last Ten Fiscal Years ……………………………….               112
   Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years ……………………….….          113
   Property Tax Millage Rates - Direct and Overlapping Governments - Last Ten Fiscal Years …………….    114
   Principal Property Taxpayers – Current Year and Nine Years Ago …………………………………………..                 115
   Property Tax Levies and Collections – Last Ten Fiscal Years ………………………………………………..                  116
   Ratio of Outstanding Debt by Type - Last Ten Fiscal Years …….………………………………………….…                   117
   Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years ……………………………….…              118
   Direct and Overlapping Governmental Activities Net Debt ……………………………………………………                      119
   Pledged Revenue Coverage – Last Ten Fiscal Years ………………………………………………………….                          120
   Demographic and Economic Statistics – Last Ten Fiscal Years …..……………………………………….…                  121
   Principal Employers – Current Year ……..……………………………………………………………………..…                              122
   Full-time Equivalent City Government Employees by Function/Program –
        Last Six Fiscal Years ….………….……………………………………….………………………………….                                  123
   Operating Indicators by Function/Program - Last Nine Fiscal Years ……….……………………………….               124
   Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ………………………………………              125

FEDERAL AND STATE SINGLE AUDIT

   Report of Independent Certified Public Accountants on Internal Control Over Financial Reporting
       and on Compliance and Other Matters Based on an Audit of the Financial Statements
       Performed in Accordance with Government Auditing Standards…………………………………………                    126
   Report of Independent Certified Public Accountants on Compliance with Requirements
       That Could Have a Direct and Material Effect on Each Major Program and on Internal Control
       Over Compliance in Accordance with OMB Circular A-133, Section 215.97 Florida Statutes,
       and Chapter 10.550, Rules of the Auditor General………………..………….……………………………                      128
   Schedule of Expenditures of Federal Awards and State Financial Assistance………… …………………...          131
   Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance………….………...     137
   Schedule of Findings and Questioned Costs ……………………………………………………………………                              140
   Summary Schedule of Prior Audit Findings……………………………………………………………………….                              170

MANAGEMENT LETTER and STATE REPORTING REQUIREMENTS……………………………………………                                  193
                                      CITY OF

                                      FORT LAUDERDALE
   '()e llke OfJ/ 11lerica
             March 12, 2012


            Mayor John P. "Jack" Seiler
            Vice Mayor Bobby B. DuBose
            Commissioner Bruce G. Roberts
            Commissioner Charlotte E. Rodstrom
            Commissioner Romney Rogers


            Dear Mayor and Commissioners:

            This letter transmits the Comprehensive Annual Financial Report (CAFR) for the
            City of Fort Lauderdale, Florida for the fiscal year ended September 30, 2011.
            This submission meets the requirements of the City Charter Section 10.02, the
            Fort Lauderdale City Code Section 2-147(b)(14) , Section 166.241 Florida Statutes,
            and Rules of the Florida Auditor General Section 10.550. The financial statements
            included in this report conform to generally accepted accounting principles in the
            United States (GAAP) , as prescribed by the Governmental Accounting Standards
            Board (GASB).

            The City is responsible for the accuracy of the data and the completeness and
           fairness of the presentation including all disclosures .                Management has
            established internal controls to ensure that the City fulfills its fiduciary responsibility
           as custodian of public monies. The purpose of internal controls is to provide
            reasonable , but not absolute, assurance that City assets are safeguarded against
           loss through unauthorized use or disposition.            The concept of reasonable
           assurance recognizes that the cost of a control should not exceed the benefits
           likely to be derived and the valuation of costs and benefits requires estimates and
           judgments by management.

           The financial statements have been audited by Ernst & Young LLP, Certified
           Public Accountants. The independent auditor has issued an unqualified opinion
           that the basic financial statements included in this report fairly present the financial
           position of the City and comply with all reporting standards noted above.

           This report is divided into three parts. The Introductory Section provides a
           summary of the contents of the entire report and general information about the
           reporting entity.    The Financial Section includes the Auditor's Opinion,
           Management's Discussion and Analysis (MD&A) , the Basic Financial Statements,
           Notes to Financial Statements, Required Supplementary Information, and the
           Combining and Individual Fund Financial Statements and Schedules. The MD&A
           provides a narrative introduction, overview and analysis of the basic financial



                                100 N . ANDREWS AVENUE, F ORT L AUDERDALE, FLORIDA 3330'
                                                  www.fortiauderdale.goY
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 statements. It complements this letter of transmittal and should be read in
 conjunction with it.

 Other financial information, including budget and other schedules, is also provided
 to supplement required financial data. The Statistical Section includes schedules
 that provide historic, social, economic, and financial trend data that offers an
 overview of the City's fiscal position.
 Profile of the Government

The City of Fort Lauderdale was founded in 191 f. It operates under the
commission/manager form of government where the Mayor, elected at large, and
four Commissioners, elected by geographic district, determine the policies that
guide the operation of the City. The City Commission hires a City Manager, who
implements City policies and administers those policies on a full-time basis. The
City Commission also appoints a City Attorney who is responsible for legal affairs,
a City Clerk who is responsible for public records and a City Auditor responsible
for review of business practices, procedures, internal controls, and procurement
practices.

Fort Lauderdale is a full-service city that provides police protection, fire-rescue
services, parks and recreation programs, delivers potable drinking water to a
customer base both within and outside the City limits along with wastewater
collection and treatment, sanitation services, development regulation, parking, and
street maintenance. The City is known for its beaches and waterways including
Fort Lauderdale beach, the New River, the Middle River, and numerous canals.
The City also owns a sports complex, a general aviation airport, a downtown
heliport, an aquatic complex and an auditorium.

This financial report includes all funds and component units of the City, in
accordance with the Governmental Accounting Standards Board Statement No. 14
entitled "The Financial Reporting Entity" and Statement No. 39 entitled
"Determining Whether Certain Organizations Are Component Units."             This
reporting entity consists of the primary government, organizations for which the
primary government is financially accountable and other organizations for which
the nature and significance of their relationship with the primary government are
such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete.

The Sunrise Key Safe Neighborhood Improvement District and the Lauderdale
Isles Water Control District (LlWCD) are included as component units along with
the Fort Lauderdale Community Redevelopment Agency (CRA).                  These
organizations have been included as component units, since the City is financially
accountable for and has ultimate decision-making authority. The transactions and
balances of the CRA are blended with those of the City (primary government),
while the Sunrise Key and the LlWCD financial information are discretely
presented in the government-wide financial statements.



                                      - 11 -
 The City of Fort Lauderdale Downtown Development Authority (DDA), the Housing
 Authority of the City of Fort Lauderdale, and the Northwest Neighborhood
  Improvement District (NWNID) are related organizations, but separate and distinct.
 They are not included in this financial report since they do not meet the
 established criteria for reporting herein. Along with the Performing Arts Center
 Authority and the DDA, the City is a participant in a joint venture in the Arts and
 Science District Parking Garage with each party maintaining an ongoing financial
 interest.

The City of Fort Lauderdale is required to adopt an annual budget in accordance
with the City Charter and state statute. The City Manager is charged with
preparing a proposed budget for submission in July of each year for the fiscal year
that begins the following October 1. Appropriations by department within funds
and tax levies are adopted in September. The budget also authorizes the number
of full-time equivalent positions available to City departments to deliver services.
The budget may be amended by Resolution if altering the total budget of a
particular fund, by City Commission motion if changing a department total within a
fund, or administratively if the change is within the same department and fund.
Various thresholds of review and approval have been established for purchases
and hiring throughout the fiscal year.

The City has two defined-benefit pension plans: 1) the General Employees
Pension Plan and 2) the Police and Fire Pension Plan. A board of trustees
administers each plan. The boards are composed of members elected by active
employees and appointees of the Mayor. The Boards have responsibility for
investment of the pension assets and determination of benefits as employees
retire or seek other benefits under the plans. At September 30, 2011, the plans
had total assets of $751 million. The General Employees Pension Plan was
closed to new participants beginning October 1, 2007 and replaced with a new
defined contribution plan.

Economic Condition

The City of Fort Lauderdale has felt the effects of the current economic downturn
with a loss of over $3 billion in taxable assessed value in FY2011. This is in
addition to $3.7 billion lost in the previous two years. New construction, which
represents improvements to real property that were not on the tax roll in the prior
year, increased for FY2011 adding $494 million to the tax roll. The City's taxable
value has increased 1.7 times within the last ten years from $14.5 billion in
FY2002 to $24.6 billion in FY2011 . The following table shows new construction
and total taxable assessed value for the last five years.




                                      - 111 -
                             New Construction          Taxable Value
                                     (In millions of dollars)

 FY 2007                         $592                       $28,369
 FY 2008                          757                        31,322
 FY 2009                          625                        30,510
 FY 2010                          271                        27,656
 FY 2011                          494                        24,591

As of October 2011, the greater Fort Lauderdale metropolitan area (Broward
County) had 982,300 civilians in the labor force compared with 987,100 in the prior
year. Unemployment declined to 9.4% compared to 11.9% a year earlier.
Comparative data within the State of Florida as reported by the U.S. Census
Bureau shows the Greater Fort Lauderdale metropolitan area as the second
largest in the State in terms of population (1,748,066 as of 2010). The Greater Fort
Lauderdale Convention and Visitors Bureau reported 10.9 million visitors in 2010,
up slightly from 10.8 million the prior year. Average hotel occupancy for 2011 was
65.0%, up from 61 .8% in 2010.

Long-term Financial Planning

The City strives to link its vision for the future, its departmental goals and
objectives, and the allocation of its financial and human resources. The vision of
Fort Lauderdale as a safe, secure, attractive environment in which to live, work
and play, is reflected in the City's organization structure and the priorities given in
the annual budget. Over 66% of the General Fund budget for operating
expenditures is dedicated to public safety through police, fire rescue and building
services. Another 13% is allocated to cultural and recreational quality of life
programs. Completion of $691 million in capital improvements to the City's water,
sewer and stormwater systems under the Water Works 2011 plan and economic
development activities in the community redevelopment areas are also critical to
maintaining this envisioned environment for our citizens.

In the course of making capital improvements to serve the residents of Fort
Lauderdale, the City finances certain projects with bonds, loans and capital leases.
At September 30, 2011, the City had outstanding debt of $595 million for this
purpose. This included $392 million water and sewer revenue bonds and $85
million in Florida state revolving fund loans to fund the Water Works 2011 plan.

Financial Policies

The City has established a policy to maintain the unassigned fund balance for the
General Fund between 10% and 15% of budgeted operating expenditures. During
FY2011 the General Fund unassigned balance decreased from $58.5 million to
$36.6 million . This amount is above the minimum requirement, equating to almost
14% of the final General Fund budget for operations.



                                        - IV -
The City maintains an investment policy that strives to protect capital above all
else while seeking investment earnings and providing for daily cash needs. The
City's portfolio at September 30, 2011 was $434.9 million excluding investments of
the permanent and fiduciary funds . The City's master and payroll accounts are
swept nightly to maximize interest earnings.

The City of Fort Lauderdale has a combination of insurance policies and self-
insured programs to address the City's risks as a municipality. The City is self-
insured for automobile, general liability, police professional liability, workers'
compensation and employment practices claims and certain medical benefits.
Insurance policies have been purchased to cover damage to City property,
including windstorm and terrorism coverage, losses due to fraud or criminal
actions of City officials, major employment practices liability and workers'
compensation and medical claims. Outside actuaries assist in assessing the
City's liabilities and establishing claim reserves.

Major Initiatives of FY 2011

   •   March 27, 2011 marked the 100 th anniversary of the date Fort Lauderdale
       was incorporated . The City of Fort Lauderdale's Centennial kicked off in late
       2010 and continued throughout 2011 with numerous events.

   •   An additional $20 million in General Obligation Bonds were issued to
       finance the completion of the improvements to the City's fire rescue
       facilities begun in 2005.

   •   The City completed the construction of three advanced technology fire
       stations aimed at reducing response times and improving service delivery,
       including pre-hospital care. Plans were completed and groundbreaking
       began for two additional replacement fire stations.

   •   The City completed the restoration of the historic 11 th Avenue Bridge.

  •    The City launched a multi-year Community Investment Plan (CIP) to
        prioritize funding for transportation , parks, buildings and other infrastructure ,
       which are the foundation of our community. The CIP aims to delineate what
       the community needs to build now and what it will need to build in years to
       come.        CIP highlights included $18.4 million for water and sewer
       improvements, $1 .8 million for reg ional waste water system projects, $1.6
       million for Fort Lauderdale Executive Airport improvements and $25 million
       from Community Redevelopment Agency contributions for improvements to
       the aquatic complex.




                                          -v-
    •    The City completed the development of the Sustainability Action Plan to
         promote community sustainability by protecting, preserving and restoring
         the natural environment through reducing the City's contribution of
         greenhouse gas emissions to the environment. The City installed solar
         panels at the Beach Community Center, solar-powered parking meters and
         LED lighting.

    •   The City partnered with the Museum of Discovery and Science to promote
        "Smart Watts" energy efficiency rebates and renewable energy workshops.
        Through the program, energy retrofits and solar rebates were offered to
        residents and small businesses.

•       To reduce paper consumption and mailing costs, the City launched a web-
        based utility payment system.

•       Three new parks and a nature preserve opened as part of a broad initiative
        for land preservation.     Playground replacement improvements were
        completed at three additional facilities. Lightning prediction systems were
        installed in 13 parks and community centers. The City's Parks and
        Recreation Department received the prestigious accreditation of the
        Commission for the Accreditation of Parks and Recreation Agencies.

Major Initiatives for FY 2012

•       The City Commission approved a Bonus Incentive for Retirement Program
        for eligible employees who are members of the General Employees
        Retirement System. The fiscal year 2012 total payroll cost (salary plus
        fringe benefits) for the 131 Bonus Incentive for Retirement Program (BIRP)
        participants is approximately $12.83 million. The estimated final termination
        payout cost (vacation and sick leave pay) for these employees is
        approximately $2 million.

•       Development began on the City's Strategic Plan, a comprehensive blueprint
        for identifying goals and objectives across six core service areas, referred
        to as "Cylinders of Excellence." The City's leadership team continues to
        collaborate to connect strategic planning, performance management,
        process improvement and results-based budgeting.           More than 100
        employees are participating in strategic planning.

•       To fuel staff innovation, the City developed plans for launching the City's
        first online, interactive Employee Suggestion Box. Working with the
        nationally recognized technology provider Granicus, Fort Lauderdale
        became one of the nation's first cities to create a social ideation process to
        promote productive employee engagement aimed at improving the delivery
        of services, allocation of resources and the maximization of efficiencies.




                                        - VI -
    •   A 1-year project to improve ADA access and beautify the Fort Lauderdale
        Beach Park parking lot was completed.            The City placed utilities
        underground . The retaining wall was replaced with a new wave wall that
        matches the existing wall located north of the park. The existing sidewalk
        was widened and turtle compliant lighting was installed.

Recognition and Acknowledgments

The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City of Fort Lauderdale for its comprehensive annual financial
report for the fiscal year ended September 30, 2010 . This was the 34th
consecutive year that the City has received this award . In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and
efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted accounting principles and applicable legal
requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that
our current report continues to meet the program's requirements and we are
submitting it to the GFOA to determine its eligibility for another award .
Additionally, the City has received the GFOA Distinguished Budget Presentation
Award each fiscal year since 1985.

This report could not have been prepared without the dedicated service of all
employees in the Finance Department and the support of the other City
departments. Sincere appreciation is expressed to all for their efforts.




                                                cv.,~~.o
Lee R. Feldman, ICMA-CM
City Manager
                                                Douglas ~    Wood
                                                Director of Finance




                                      - Vll -
         Certificate of
          Achievement
         for Excellence
           in Financial
            Reporting
                     Presented to


 City of Fort Lauderdale
         Florida
          For its Comprehensive Annual
                  Financial Report
             for the Fiscal Year Ended
                 September 30,2010
 A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
     Association of the United States and Canada to
    government units and public employee retirement
     systems whose comprehensive annual finsncial
           reports (CAFRs) achieve the highest
           standards in government accounting
                  and financial reporting.




                                 President



                           Executive Director




                         -viii-
                 THE PEOPLE OF FORT LAUDERDALE



                            CITY COMMISSION



ADVISORY BOARDS AND
 AD HOC COMMITTEES




 CITY CLERK         CITY AUDITOR            CITY MANAGER      CITY ATTORNEY




                                                    OFFICE OF
        BUILDING SERVICES                         PROFESSIONAL
                                                   STANDARDS



                                                PARKING AND FLEET
      BUSINESS ENTERPRISES
                                                    SERVICES



           ECONOMIC
                                              PARKS AND RECREATION
          DEVELOPMENT




               FINANCE                         PLANNING AND ZONING




              FIRE-RESCUE                            POLICE




        HUMAN RESOURCES                           PROCUREMENT




      INFORMATION SYSTEMS                       PUBLIC INFORMATION




                              PUBLIC WORKS



                                   - ix -
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                                                                       Ernst & Young LLP
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                                                                       5100 Town Center Circle
                                                                       Boca Raton, Florida 33486

                                                                       Tel: +1 561 955 8000
                                                                       Fax: +1 561 955 8200
                                                                       www.ey.com



                  Report of Independent Certified Public Accountants

To the Honorable Mayor, Members of the City
    Commission and City Manager,
    City of Fort Lauderdale, Florida

We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the City of Fort Lauderdale, Florida (the City),
as of and for the year ended September 30, 2011, which collectively comprise the City’s basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of the City’s management. Our responsibility is to express opinions on these
financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an audit of the
City’s internal control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control over financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City as of September 30, 2011, and the respective changes in financial
position and, where applicable, cash flows thereof and the budgetary comparison for the general
fund for the year then ended in conformity with US generally accepted accounting principles.

As more fully discussed in Note 13, as of October 1, 2010, the City adopted Governmental
Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definition.




1205-1363429                                     1
                                                                       A member firm of Ernst & Young Global Limited
In accordance with Government Auditing Standards, we have also issued our report dated
March 12, 2012 on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.

The management’s discussion and analysis, pension plan and other post employment benefits
required supplementary information on pages 3 through 10 and 64 through 66, respectively, are
not a required part of the basic financial statements but are supplementary information required
by the Governmental Accounting Standards Board. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory and statistical
sections, combining financial statements and other financial information, as listed in the
accompanying table of contents, are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The schedule of expenditures of federal awards
and state financial assistance is required by US Office of Management and Budget Circular
A-133, Audits of States, Local Governments, and Non-Profit Organizations; Section 215.97,
Florida Statutes; and Chapter 10.550, Rules of the Auditor General, State of Florida. The
combining financial statements and other financial information and the schedule of expenditures
of federal awards and state financial assistance have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory
and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we express no opinion on them.




March 12, 2012
                                                                    



1205-1363429                                     2
                                                                       A member firm of Ernst & Young Global Limited
                  CITY OF FORT LAUDERDALE, FLORIDA
                   MANAGEMENT’S DISCUSSION AND ANALYSIS
                    FISCAL YEAR ENDED SEPTEMBER 30, 2011

This section is intended to provide readers of this report with a general overview of the financial
activities of the City during FY2011. The information in this section should be considered only in
the context of the Transmittal Letter at the beginning of this report, as well as the financial
statements and notes to financial statements, which follow.

Financial Highlights

       The City’s total assets exceeded its liabilities at September 30, 2011 by $1.057 billion
        (net assets). Of this amount, $386 million was from governmental activities and $671
        million was from business-type activities.

       The City’s revenues for governmental activities, excluding transfers, totaled $305.5
        million, a 0.4% increase from FY2010. Charges for services increased by $11.6 million
        and property taxes decreased by $9.3 million. Expenses for governmental activities
        increased by 2.7% to $315 million. Transportation expenses decreased by $1.2 million,
        while General Government and Physical Environment expenses increased by $3.3 million
        and $0.8 million, respectively.

       Revenues related to business-type activities decreased by $2.5 million to $155.3 million
        and expenses decreased by $5.2 million to $124 million.

       The General Fund’s balance decreased by $16.6 million to $63.1 million due primarily to
        the City Commission’s directive to not increase the property tax millage rate despite an
        11% decline in property values. The unassigned fund balance of $36.6 million when
        compared with the $58.5 million fund balance at the end of FY2010 represents a $6.9
        million decrease and a reclassification of $15 million to non-spendable fund balance.
        This was primarily due to the prepayment of a $15 million required employer contribution
        to the Police and Fire Pension Plan not due until FY2012, to reduce interest costs.

       The City’s long-term debt increased by $22.9 million net of retirements to $594.8 million.
        This resulted from the issuance of $34 million General Obligation Bonds and $9.9 million
        in Special Obligation Loans, net of refundings.

       The total fair value of the City’s primary government investments at September 30, 2011
        was $517.2 million. Interest rates steadily declined throughout the fiscal year.

Overview of Financial Statements

The basic financial statements are comprised of government-wide statements that offer a broad
overview of financial activity and more specific fund statements that present more detailed
information.

Government-Wide Statements (pages 11 through 13) include the statement of net assets and
statement of activities. They provide a broad overview of the City as a whole similar to private
sector financial statements. The statement of net assets shows the total assets and liabilities for
the City with the difference being net assets. The statement of activities provides a breakdown of
revenues and expenditures by function.          Functions generally supported by taxes and
intergovernmental revenues such as police, fire-rescue, parks and recreation, and public works
are considered governmental activities. Those functions that are primarily funded through user



                                                3
fees and charges are identified as business-type activities. In Fort Lauderdale, the latter activities
include Water and Sewer, Sanitation, the Parking System, the Executive Airport, and Stormwater.

The government-wide statements include three component units. The financial information of the
City’s Community Redevelopment Agency (CRA) is blended within the primary government. The
Lauderdale Isles Water Control District (LIWCD) and the Sunrise Key Safe Neighborhood District
(SK) are discretely presented on the Statement of Activities and Statement of Net Assets. Refer
to Summary of Significant Accounting Policies for additional information on individual component
units. Fiduciary funds which include pension and agency funds, are not included as part of the
primary government because those resources are not available for use on City activities. Details
of the fiduciary funds are provided in the fund statements.

The Fund Financial Statements are found on pages 14 through 27. The City of Fort Lauderdale
uses fund accounting to track the sources and uses of resources for specific purposes. The City
categorizes funds into three basic fund types: governmental funds, proprietary funds, and
fiduciary funds.

Governmental Funds (beginning on page 14) are used to account for essentially the same
functions reported as governmental activities in the government-wide statements. However,
unlike the previous statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.

Since the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
This comparison highlights the long-term impact of the City’s near term financial decisions. Both
the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances offer a reconciliation to assist with this comparison.

The City of Fort Lauderdale maintains 21 individual governmental funds. Of this number, only the
General Fund is considered a major fund and thus is reflected separately in the fund financial
statements. All the other governmental funds are combined for presentation purposes as
nonmajor funds.

Proprietary Funds (beginning on page 21) are comprised of two different categories. Enterprise
funds include business-type activities such as Water and Sewer, Sanitation, the Parking System,
the Executive Airport, and Stormwater. Internal service funds include vehicle rental, central
services (telecommunications and printing services), and insurance services.           The latter
functions provide support to internal City departments rather than services to the public. These
funds are also reported as either major or nonmajor funds depending upon the significance of
their financial activity.

Fiduciary Funds (beginning on page 26), which are not included in the government-wide
statements, are presented in this section and include the City’s Police and Fire Retirement
System and the General Employee Retirement System as well as the financial activity of the Arts
and Science District Garage.

Notes to Financial Statements (beginning on page 28) are integral to a complete understanding
of both the government-wide and fund financial statements. They provide additional explanation
of the amounts shown in the various statements.

Other Information

This report also includes required supplementary information related to the City’s employee
pension and other post employment benefits obligations. The combining statements in


                                                  4
connection with non-major governmental and enterprise funds, internal service funds, fiduciary
funds and non-major component units are presented following the required supplementary
information.

Additional statistical information is presented to give report users a better historical perspective
and assist in assessing current financial status and trends of the governmental unit. Economic
data is presented to allow a broader understanding of the economic and social environment in
which the City government operates.

Government-wide Financial Analysis

The table below summarizes the City’s Net Assets for the fiscal years 2011 and 2010.

                                        City of Fort Lauderdale, Florida
                                        Net Assets (in thousands of $)

                                         Governmental               Business-type
                                           Activities                    Activities                      Total
                                        2011       2010           2011                2010      2011              2010


Current and other assets            $ 331,793    302,593        263,347          270,513      595,140            573,106
Capital assets                       271,692     266,376        915,087          893,804     1,186,779      1,160,180
  Total assets                       603,485     568,969       1,178,434       1,164,317     1,781,919      1,733,286


Long-term liabilities outstanding    185,632     144,209        487,577          502,445      673,209            646,654
Other liabilities                     32,119      30,752         19,886           21,151       52,005             51,903
  Total liabilities                  217,751     174,961        507,463          523,596      725,214            698,557


Net Assets:
  Invested in capital assets
    net of related debt              197,494     209,996        463,595          440,499      661,089            650,495
  Restricted                         101,595      18,731         39,871           40,013      141,466             58,744
  Unrestricted                        86,645     165,281        167,505          160,209      254,150            325,490
  Total net assets                  $ 385,734    394,008        670,971          640,721     1,056,705      1,034,729


The City’s investment in capital assets (land, buildings, improvements, infrastructure and
equipment) net of the related debt outstanding used to acquire those assets of $661.1 million
represents 63% of its net assets. These capital assets are used to provide services to the
citizens and are not available for future spending. The resources needed to repay the debt
incurred to acquire these assets will come from future revenues.

The balance of net assets includes resources subject to external restrictions ($141.5 million) and
unrestricted net assets ($254.2 million) that may be used to meet the City’s ongoing obligations.
The unrestricted amount is $71.3 million lower than at the end of fiscal year 2010 due to the
reclassification of fund balances of the governmental funds.

Total net assets increased by $22 million, a 2.1% gain over the prior year. The following table
summarizes changes in net assets for governmental and business-type activities for the past two
fiscal years.




                                                           5
                                        City of Fort Lauderdale, Florida
                                            Changes in Net Assets
                                                (in thousands of $)

                                           Governmental             Business-type
                                              Activities               Activities                        Total
                                          2011         2010        2011         2010          2011                2010


Revenues:
Program revenues:
 Charges for services               $    85,927      74,284      152,175      149,456       238,102              223,740
 Operating grants/contributions          27,940      32,686          283        2,757        28,223               35,443
 Capital grants/contributions            14,329        5,130       1,461        3,593        15,790                8,723
General revenues:
 Property taxes                         104,294     113,606               -            -    104,294              113,606
 Other taxes                             55,901      57,796               -            -     55,901               57,796
 Grants and contributions                15,058      14,327               -            -     15,058               14,327
 Investment earnings                      1,523        4,319       1,412        2,030         2,935                6,349
 Other                                      560        2,312              -            -        560                2,312
  Total revenues                        305,532     304,460      155,331      157,836       460,863              462,296


Expenses:
 General government                      44,591      41,228               -            -     44,591               41,228
 Public safety                          187,108     181,863               -            -    187,108              181,863
 Physical environment                     9,958        9,130     105,313      107,215       115,271              116,345
 Transportation                           7,258        8,456      18,685       22,013        25,943               30,469
 Economic environment                    21,429      23,599               -            -     21,429               23,599
 Culture and recreation                  41,782      38,792               -            -     41,782               38,792
 Interest on long-term debt               2,763        3,501              -            -      2,763                3,501
  Total expenses                        314,889     306,569      123,998      129,228       438,887              435,797


Increase (decrease) in net assets
 before transfers                        (9,357)     (2,109)      31,333       28,608        21,976               26,499
Transfers in (out)                        1,083            584    (1,083)       (584)                -                   -
Increase (decrease) in net assets        (8,274)     (1,525)      30,250       28,024        21,976               26,499


Net assets beginning of year            394,008     395,533      640,721      612,697      1,034,729        1,008,230


Net assets end of year              $ 385,734       394,008      670,971      640,721      1,056,705        1,034,729


Revenues from governmental activities increased by $1.1 million compared to 2010. The
property tax levy was not increased for the fourth consecutive year despite an 11% decrease in
property values. Consequently, there was a $9.3 million reduction in property tax revenues.
Another $2.8 million decline in investment earnings resulted from the weak economy. These
decreases were offset by an $11.6 million increase in charges for services of which approximately
$5 million resulted from a building permit fee increase and rate restructuring.

Expenses for governmental activities increased by 2.7% or $8.3 million. Increases occurred in
the general government ($3.4 million), public safety ($5.2 million) and culture and recreation ($3
million) functions. Transportation and economic environment expenses showed decreases of
$1.2 million and $2.2 million, respectively.




                                                             6
As the following chart of revenues from governmental activities (by source) shows, property and
other taxes provided 52% of the revenues used to fund governmental functions. Charges for
services, such as parks and recreation programs and emergency medical transport, comprised
28% of total revenues.


                        Revenues for Governmental Activities

                                                 Other
                                 Other Taxes                Charges for
                                                  1%
                                    18%                      Services
                                                               28%




                             Property Taxes                 Grants and
                                  34%                      Contributions
                                                               19%




Expenses for governmental activities (by function) are guided by City priorities as seen in the
following chart. Public Safety, comprised of Police, Fire-Rescue, and Building department
services, is clearly the highest priority, consuming 60% of all resources. General government and
culture and recreation expenses accounted for 14% and 13%, respectively.


                        Expenses for Governmental Activities
                                   Culture and   Debt Service
                         Economic Recreation         1%        General
                        Environment 13%                      Government
                            7%                                  14%

                     Transportation
                          2%
                             Physical
                           Environment
                                3%
                                                         Public Safety
                                                             60%



For the business-type activities, net assets showed an increase of $30.2 million. Total revenues
for these activities decreased by $2.5 million with grants and contributions showing a decrease of
$4.6 million and investment earnings a decrease of $618,000. Charges for services increased by
$2.7 million.

The expenses for business-type activities decreased by $5.2 million. Physical environment
expenses decreased by $1.9 million, with $1.2 million attributed to lower solid waste disposal
costs in the current year. Transportation expenses decreased by $3.3 million of which $2.9
million is attributed to higher expenses in the prior year for maintenance of the airport taxiways.




                                                   7
Financial Analysis of the Government’s Funds

The fund financial statements for governmental funds provide information on the near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City of Fort Lauderdale’s financing requirements. In particular, the unassigned fund balance
is a useful indicator of the City’s net resources available for spending at the end of the fiscal year.

The General Fund balance at September 30, 2011 was $63.1 million, a decrease of $16.6 million
from the prior year balance of $79.7 million. This was primarily due to a planned $11 million
utilization of fund balance in lieu of a tax increase to replace the revenue lost to lower property
values.

General fund revenues for fiscal year 2011 totaled $243.3 million, a $19 million decrease from
2010. Property taxes levied for operations accounted for $12.5 million of the decrease. Another
$8.5 million is attributed to the transfer of revenues that were previously recorded in the General
Fund to other governmental funds, including $4.9 million in permit fees and $3.6 million in
property taxes levied for debt service. Charges for services increased by $1.6 million of which
$1.1 million was attributed to increased EMS transport fees. Intergovernmental revenue
increased $.7 million and fines and forfeitures increased by $1 million.

Total General Fund expenditures decreased $4.3 million in 2011 from $256.4 million to $252.1
million. Of this decrease, $4.2 million resulted from a reduction in Vehicle Rental Fund charges to
the General Fund. An extensive fleet utilization study identified significant savings opportunities
in this area that were incorporated into the FY2011 budget. Employee pension cost increases of
$4.9 million were offset by lower health insurance premiums of $1.9 million and decreased
salaries and wages of $2.7 million.

The combined fund balances of the non-major governmental funds increased by $37.9 million or
29.8% to $164.8 million. New debt issues, net of advance refundings, amounted to $44.9 million.
The governmental funds ended the year with $228.5 million in fund balance.

The City’s proprietary funds are presented in more detail in the fund statements but represent the
same activities reflected in the business-type activities. Proprietary funds include both the
enterprise and internal service funds. Net assets of the Water and Sewer fund grew by $26.7
million to $495.7 million with total enterprise net assets growing by $31.3 million to $661.6 million.
Water and Sewer Fund operating income grew by $0.4 million compared to 2010 while total
enterprise operating income increased $9.1 million from $21.5 million in 2010 to $30.6 million in
2011, an increase of 42.2%. The Sanitation Fund showed the greatest improvement with an
operating income of $1.8 million compared to a loss of $2.2 million in 2010. This resulted from a
$2.4 million write down of the City’s liability for post closure care costs for the Wingate landfill and
incinerator site based upon lower projected future monitoring costs. Lower solid waste disposal
costs in the current year of $1.2 million also added to the bottom line. The Airport Fund also went
from an operating loss of $4.2 million in 2010 to a loss of $1 million in 2011. The prior year
results included $2.7 million of non-capitalizable repair costs to resurface the Airport taxiways.
The Parking System and the Stormwater funds had net operating incomes of $1.8 million and
$1.2 million, respectively.

At September 30, 2011, the City Insurance Fund had a net assets balance of $17 million, up from
$14.5 million in 2010. Favorable claims experience in the workers’ compensation and police
professional casualty areas contributed to this increase. The Vehicle Rental Fund’s net asset
balance of $35.8 million decreased by $6.8 million from $42.6 million in 2010. This was a
planned reduction resulting from an extensive fleet utilization study that lead to the elimination of
the replacement component of vehicle rental charges to the various departments for the current
year. These charges totaled $5.6 million in 2010.




                                                   8
General Fund Budgetary Highlights

Actual General Fund revenues for fiscal year 2011 were lower than the final FY2011 budget by
$16 million. The greatest shortfall of $7.9 million of budgeted traffic fine revenue came almost
exclusively ($7.6 million) from the red light camera program. The program provided for the
installation of twelve (12) cameras throughout the City, however, only six (6) have been approved
to date by Broward County. In addition, changes in state law concerning the distribution of fines,
as well as, unfavorable Broward judiciary rulings that resulted in overturned citations on
technicalities, have had a severe impact on anticipated revenues. A shortfall in property tax
collections of $1.8 million reflects the ongoing effects of the weak economy while the loss of $5.1
million in utility and franchise taxes was due to the overestimation of those revenues.

Total expenditures of $254.9 million (including encumbrances of $2.8 million) were $9.2 million
below the final FY2011 Budget. This is mainly attributed to services and materials costs that
were $7.2 million lower than budgeted. Of those, $1.1 and $5.4 million respectively, were not
used for professional and other services. Within the other services category, $4.2 million in
savings is attributed to the red light camera program described above, making the net shortfall for
the program $3.4 million. Salary and employee benefits savings amounted to another $3.2
million resulting from unfilled vacancies in multiple departments due to a hiring freeze.

Capital Assets and Debt Administration

The City’s investment in capital assets, net of accumulated depreciation, for governmental and
business-type activities is shown in the following table. Net additions for the year for
governmental activities totaled $5.3 million. During the year, replacement Fire Stations No. 3 and
No. 49 were completed at a cost of $6.3 million. In addition, the $4.6 million restoration of the
11th Avenue Bridge was finished.

Capital asset balances of the business-type activities increased by $21.3 million, again reflecting
major ongoing capital improvements in the water and sewer systems. Among completed projects
were $97 million for the wastewater collection system, force mains and pumping stations, and
$25.5 million for water mains. Additional information about the City’s capital assets can be found
in Note 7 to the financial statements.

                                         City of Fort Lauderdale, Florida
                                        Capital Assets (net of depreciation)
                                                 (in thousands of $)

                                           Governmental             Business-type
                                             Activities                Activities                   Total
                                          2011        2010         2011         2010       2011              2010
Land                                $    64,466     63,168        32,035      31,486      96,501             94,654
Buildings                                97,773     92,810       172,126     163,486     269,899            256,296
Improvements other than buildings        36,992     35,979       631,417     521,069     668,409            557,048
Machinery and equipment                  31,956     38,274         7,918       8,571      39,874             46,845
Infrastructure                           16,114     11,784             -            -     16,114             11,784
Construction in progress                 24,391     24,361        71,591     169,192      95,982            193,553
 Total                              $ 271,692      266,376       915,087     893,804    1,186,779       1,160,180



In the governmental activities, $34 million in general obligation bonds were issued, of which $14
million is being used to refund the City’s 2002 series bonds and $20 million will finance the
completion of the improvements to the City’s fire rescue facilities begun in 2005. Another $33.9
million in special obligation borrowings have been used to refund $24 million in 2008 special
obligation loans and $9.9 million in general construction projects. Principal retirements for


                                                             9
governmental activities and business-type activities totaled $6.3 million and $13.3 million,
respectively. Additional information about the City’s long-term debt can be found in Notes 10 and
11 to the financial statements.

                                     City of Fort Lauderdale, Florida
                                           Outstanding Debt *
                                             (in thousands of $)

                                             Governmental             Business-type
                                                Activities               Activities                   Total
                                            2011         2010        2011         2010        2011            2010
General obligation bonds               $ 65,900        34,465             -           -      65,900       34,465
Revenue bonds                                    -             -   391,805     400,610     391,805       400,610
Tax Increment revenue bonds               13,843       15,120             -           -      13,843       15,120
Capital leases                              7,111       8,425             -           -       7,111           8,425
Loans payable and other
 Obligations                              31,408       24,022       84,693      89,193     116,101       113,215
 Total debt outstanding                $ 118,262       82,032      476,498     489,803     594,760       571,835


* Excludes unamortized bond premiums, discounts, gains/losses on advance refundings and other liabilities such
 as estimated insurance claims and compensated absences.



Economic Factors and Next Year’s Budget and Rates

The State of Florida, by constitution, does not have a state personal income tax and therefore the
State operates primarily using sales, gasoline and corporate income taxes. Local governments
(cities, counties and school boards) rely on property and a limited array of permitted other taxes
(sales, gasoline, and utilities) and fees (franchise, occupational license) for their governmental
activities. For the business-type and certain governmental activities (construction services and
recreational programs), the user pays a related fee or charge associated with the service.

The adopted operating budget for expenditures for FY2012 is $445.7 million which is 1.9% higher
than the FY2011 adopted budget. The General Fund expenditure budget for FY2012 is $256
million which is 1.8% lower than FY2011. Included in the General Fund FY2012 budget is a
carry-forward fund balance of $57.1 million of which $6 million will be used to cover lower
anticipated revenues and $2 million is earmarked for other post employment benefits “OPEB”.
The millage rate was decreased slightly from 4.3366 to 4.2888 to match debt service payment
requirements. The operating millage of 4.1193 was not changed and equates to a 3.2%
decrease in revenues considering the decline in property values.

The adopted General Fund budget in FY2012 addresses key priorities established by the City
Commission to meet the challenges the current economic conditions, including no property tax
increase, maintenance of adequate reserve funds, no reductions in vital City services and no
layoffs.

Requests for Information

This financial report is designed to provide a general overview of the City of Fort Lauderdale’s
finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Director of Finance, City of Fort
Lauderdale, 100 North Andrews Avenue, Fort Lauderdale, Florida 33301, or he may be contacted
at dwood@fortlauderdale.gov or (954) 828-5165.




                                                          10
BASIC FINANCIAL
  STATEMENTS
THIS PAGE INTENTIONALLY LEFT BLANK
                                          CITY OF FORT LAUDERDALE, FLORIDA
                                              STATEMENT OF NET ASSETS
                                                  SEPTEMBER 30, 2011
                                                                              PRIMARY GOVERNMENT                              COMPONENT UNITS
                                                           GOVERNMENTAL          BUSINESS-TYPE                              SUNRISE LAUDERDALE
                                                             ACTIVITIES            ACTIVITIES                TOTAL            KEY      ISLES
ASSETS
Cash and Cash Equivalents                        $           206,423,891            155,115,898            361,539,789       90,238     68,502
Receivables
     Property Taxes                                            4,577,906                       -              4,577,906         -          -
     Accounts and Loans (Net of $7,825,290
          Allowance for Uncollectibles                         7,461,683               8,980,555             16,442,238         -          -
     Unbilled Service                                            190,909               4,743,989              4,934,898         -          -
     Assessments                                                 369,430                 221,816                591,246         -          -
     Due from Fiduciary Funds                                        -                 2,941,893              2,941,893         -          -
     Due from Other Governments (Net of
          $3,029,661 Allowance for Uncollectibles             15,008,736                 860,955             15,869,691         -          -
Internal Balances                                             (8,940,658)              9,328,994                    -   *       -          -
Inventories                                                   10,395,913               1,157,679             11,553,592         -          -
Prepaids                                                      15,000,000                     -               15,000,000         -          -
Restricted Assets
     Cash and Cash Equivalents                                 1,600,428             25,714,777             27,315,205          -          -
     Investments                                              79,005,048             49,311,800            128,316,848          -          -
     Accrued Interest and Dividends                               80,766                    -                   80,766          -          -
     Internal Balances                                          (388,336)                   -                      -   *        -          -
Investment in Joint Venture                                          -                  885,919                885,919          -          -
Deferred Debt Issuance Costs                                     918,096              4,082,485              5,000,581          -          -
Deposits                                                          89,214                    -                   89,214          -          -
Capital Assets
     Land and Construction in Progress                        88,856,441            103,626,135            192,482,576          -          -
     Other (Net of Accumulated Depreciation)                 182,835,805            811,460,738            994,296,543          -          -
               Total Assets                                  603,485,272          1,178,433,633          1,781,918,905       90,238     68,502
LIABILITIES
Vouchers and Other Current Liabilities                        15,261,999               7,597,323             22,859,322         -          -
Due to Other Governments                                       6,449,245                  11,593              6,460,838       1,064        -
Deposits                                                       2,475,212                 710,816              3,186,028         -          -
Unearned Revenue                                               5,756,360               1,040,738              6,797,098         -          -
Payable from Restricted Assets
    Vouchers and Other Current Liabilities                     2,176,493               3,624,493              5,800,986         -          -
    Deposits                                                         -                 6,900,231              6,900,231         -          -
Noncurrent Liabilities
    Net OPEB Obligation                                        7,562,601              1,955,157              9,517,758          -          -
    Due Within One Year                                       37,541,316             13,516,166             51,057,482          -          -
    Due in More Than One Year                                140,527,805            472,106,167            612,633,972          -          -
             Total Liabilities                               217,751,031            507,462,684            725,213,715        1,064        -
NET ASSETS
Invested in Capital Assets, Net of Related Deb               197,493,944            463,595,323            661,089,267          -          -
Restricted for
    Debt Service                                              16,045,899             23,988,885              40,034,784         -          -
    Community Redevelopment                                   44,935,346                    -                44,935,346         -          -
    Capital Replacement and Improvements                             -               15,882,190              15,882,190         -          -
    Endowments
         Expendable                                            7,071,112                    -                7,071,112          -          -
         Nonexpendable                                        11,265,762                    -               11,265,762          -          -
    Other Purposes                                            22,277,614                    -               22,277,614          -          -
Unrestricted                                                  86,644,564            167,504,551            254,149,115       89,174     68,502
               Total Net Assets                        $     385,734,241            670,970,949          1,056,705,190       89,174     68,502


 * Although the two Internal balances accounts net to zero in total, each individual line does not crossfoot due to
     GASB Statement No. 34 requirement that internal balances be eliminated.




The accompanying notes are an integral part of these financial statements.


                                                                         11
                                           CITY OF FORT LAUDERDALE, FLORIDA
                                                STATEMENT OF ACTIVITIES
                                     FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                           PROGRAM REVENUES
                                                                             CHARGES           OPERATING       CAPITAL
                                                                               FOR            GRANTS AND     GRANTS AND
                                                       EXPENSES              SERVICES        CONTRIBUTIONS  CONTRIBUTIONS
FUNCTIONS/PROGRAMS
PRIMARY GOVERNMENT
Governmental Activities
    General Government                            $    44,590,842             21,387,521              -               348,438
    Public Safety                                     187,107,876             49,288,543        3,313,166              47,049
    Physical Environment                                9,957,967              3,991,132        1,145,361           1,297,964
    Transportation                                      7,258,157              1,269,912          632,470           6,336,746
    Economic Environment                               21,428,604              1,193,847       22,514,765           1,458,705
    Culture and Recreation                             41,781,558              8,796,433          334,495           4,840,213
    Interest on Long-term Debt                          2,763,728                    -                -                   -
         Total Governmental Activities                314,888,732             85,927,388       27,940,257          14,329,115
Business-type Activities
    Water and Sewer                                    80,320,657            105,395,277              -               612,339
    Sanitation                                         20,812,922             22,084,671              -                   -
    Parking System                                     10,659,494             12,489,487              -                   -
    Airport                                             8,025,774              6,983,850          282,568             331,426
    Stormwater                                          4,178,998              5,221,319              -               516,830
         Total Business-type Activities               123,997,845            152,174,604          282,568           1,460,595
Total Primary Government                          $   438,886,577            238,101,992       28,222,825          15,789,710

COMPONENT UNITS
Sunrise Key                                       $          25,679                  -                 -                  -
Lauderdale Isles                                             10,572                  -                 -                  -
                                                  $          36,251                  -                 -                  -

                                                      General Revenues
                                                         Property Taxes
                                                         Utility Taxes
                                                         Franchise Taxes
                                                         Insurance Premium Taxes
                                                         Grants and Contributions not Restricted to Specific Programs
                                                         Unrestricted Investment Earnings
                                                         Miscellaneous
                                                      Transfers
                                                              Total General Revenues and Transfers
                                                                  Change in Net Assets
                                                      Net Assets - Beginning of Period
                                                      Net Assets - End of Period




The accompanying notes are an integral part of these financial statements.

                                                                    12
                         NET (EXPENSES) REVENUES AND CHANGES IN NET ASSETS
                     PRIMARY GOVERNMENT                                        COMPONENT UNITS
    GOVERNMENTAL        BUSINESS-TYPE                                   SUNRISE          LAUDERDALE
      ACTIVITIES          ACTIVITIES               TOTAL                   KEY              ISLES




      (22,854,883)               -                   (22,854,883)           -                   -
     (134,459,118)               -                  (134,459,118)           -                   -
       (3,523,510)               -                    (3,523,510)           -                   -
          980,971                -                       980,971            -                   -
        3,738,713                -                     3,738,713            -                   -
      (27,810,417)               -                   (27,810,417)           -                   -
       (2,763,728)               -                    (2,763,728)           -                   -
     (186,691,972)               -                  (186,691,972)           -                   -

              -           25,686,959                  25,686,959            -                   -
              -            1,271,749                   1,271,749            -                   -
              -            1,829,993                   1,829,993            -                   -
              -             (427,930)                   (427,930)           -                   -
              -            1,559,151                   1,559,151            -                   -
              -           29,919,922                  29,919,922            -                   -
     (186,691,972)        29,919,922                (156,772,050)           -                   -


              -                  -                           -          (25,679)                -
              -                  -                           -              -               (10,572)
              -                  -                           -          (25,679)            (10,572)


$     104,294,035                -                   104,294,035        33,951               7,375
       34,725,638                -                    34,725,638           -                   -
       16,439,174                -                    16,439,174           -                   -
        4,735,930                -                     4,735,930           -                   -
       15,057,706                -                    15,057,706           -                   -
        1,523,212          1,412,567                   2,935,779           420                 909
          560,208                -                       560,208           -                   -
        1,082,900         (1,082,900)                        -             -                   -
      178,418,803            329,667                 178,748,470        34,371               8,284
       (8,273,169)        30,249,589                  21,976,420         8,692              (2,288)
      394,007,410        640,721,360               1,034,728,770        80,482              70,790
$     385,734,241        670,970,949               1,056,705,190        89,174              68,502




                                              13
                                    CITY OF FORT LAUDERDALE, FLORIDA
                                                    BALANCE SHEET
                                                 GOVERNMENTAL FUNDS
                                                  SEPTEMBER 30, 2011

                                                                               NONMAJOR         TOTAL
                                                                             GOVERNMENTAL   GOVERNMENTAL
                                                                GENERAL          FUNDS         FUNDS
ASSETS
Cash and Cash Equivalents                                  $    49,893,167     83,655,676    133,548,843
Investments                                                              -     79,005,048     79,005,048
Receivables
    Property Taxes                                               4,423,493       154,413       4,577,906
    Accounts and Loans (Net of $1,306,525
        Allowance for Uncollectibles)                            6,553,035       309,210       6,862,245
    Unbilled Service                                               190,909             -         190,909
    Assessments                                                          -       369,430         369,430
    Accrued Dividends and Interest                                       -        80,766          80,766
Due from Other Funds                                             3,591,851       205,933       3,797,784
Due from Other Governments (Net of $3,029,661
    Allowance for Uncollectibles)                                3,087,478     11,921,258     15,008,736
Inventories                                                         52,422     10,343,491     10,395,913
Prepaids                                                        15,000,000              -     15,000,000
Advances to Other Funds                                             25,000              -         25,000
Deposits                                                            64,214              -         64,214
            Total Assets                                   $    82,881,569    186,045,225    268,926,794

LIABILITIES AND FUND BALANCES
LIABILITIES
Vouchers Payable                                           $     1,809,325      7,673,050      9,482,375
Contracts Payable                                                        -      1,359,011      1,359,011
Accrued Payroll                                                  5,152,893        292,971      5,445,864
Due to Other Funds                                                       -      3,797,784      3,797,784
Due to Other Governments                                         3,699,627      2,749,618      6,449,245
Advances from Other Funds                                                -         25,000         25,000
Compensated Absences and Longevity                                 238,458        183,637        422,095
Deposits                                                         2,154,602         99,229      2,253,831
Deferred Revenue                                                 4,651,753      1,403,338      6,055,091
Unearned Revenue                                                 2,101,739      3,654,621      5,756,360
           Total Liabilities                                    19,808,397     21,238,259     41,046,656

FUND BALANCES
Nonspendable                                                    15,077,422     11,272,512     26,349,934
Restricted                                                               -    126,997,499    126,997,499
Committed                                                          464,915      7,395,146      7,860,061
Assigned                                                        10,915,133     19,141,809     30,056,942
Unassigned                                                      36,615,702              -     36,615,702
           Total Fund Balances                                  63,073,172    164,806,966    227,880,138
           Total Liabilities and Fund Balances             $    82,881,569    186,045,225    268,926,794




The accompanying notes are an integral part of these financial statements.


                                                           14
                                             CITY OF FORT LAUDERDALE, FLORIDA
                           RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
                                         TO THE STATEMENT OF NET ASSETS
                                             AS OF SEPTEMBER 30, 2011



Amounts reported for governmental activities in the statement of net assets are different because:

     Total fund balances of governmental funds in the balance sheet, page 14                    $    227,880,138

     Capital assets used in governmental activities are not financial resources
         and, therefore, are not reported in the funds.                                              251,760,501

     Other long-term assets are not available to fund current operations and,
         therefore, are either deferred or not included in the governmental funds.                      6,055,091

     Internal service funds are used by management to charge the costs of
          City insurance, communications, printing and central stores services
          and for operation of a maintenance facility for City vehicles. The assets
          and liabilities of the internal service funds are included in governmental
          activities in the statement of net assets.                                                  44,990,059

     Long-term liabilities such as bonds payable are not due and payable in the
         current period and therefore are not reported in the funds.                                 (144,951,548)

     Net assets of governmental activities, page 11                                             $    385,734,241




The accompanying notes are an integral part of these financial statements.



                                                                   15
                                            CITY OF FORT LAUDERDALE, FLORIDA
                    STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                                           GOVERNMENTAL FUNDS
                               FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                              NONMAJOR           TOTAL
                                                                                            GOVERNMENTAL     GOVERNMENTAL
                                                                             GENERAL            FUNDS           FUNDS
REVENUES
Property Taxes                                                        $       96,703,744        5,083,903      101,787,647
Utility Taxes                                                                 34,725,638              -         34,725,638
Franchise Taxes                                                               16,439,174              -         16,439,174
Insurance Premium Taxes                                                        4,735,930              -          4,735,930
Licenses and Permits                                                           3,122,525       10,611,017       13,733,542
Fines and Forfeitures                                                          2,690,287        1,078,976        3,769,263
Intergovernmental
      Federal                                                                     84,164       17,176,129       17,260,293
      State                                                                   14,754,495        1,026,185       15,780,680
      Other Local Units                                                        2,260,609       14,869,175       17,129,784
Charges for Services                                                          19,426,937          212,197       19,639,134
Other
      Assessments and Other Fees                                              20,868,749          687,021       21,555,770
      Interest and Dividends                                                     436,702        1,212,938        1,649,640
      Rents and Concession                                                     2,852,586          170,406        3,022,992
      Contributions and Donations                                                792,337          122,049          914,386
      Net Change in Fair Value of Investments                                        -           (359,384)        (359,384)
      Interfund Service Charges                                               21,147,155           40,441       21,187,596
      Sale of Cemetery Plots                                                         -            578,150          578,150
      Sale of Surplus Property                                                   401,411              -            401,411
      Miscellaneous                                                            1,863,611        1,101,000        2,964,611
        Total Revenues                                                       243,306,054       53,610,203      296,916,257

EXPENDITURES
Current
    General Government                                                        39,670,754          659,649       40,330,403
    Public Safety                                                            168,701,937       11,578,549      180,280,486
    Physical Environment                                                       7,712,390        1,935,435        9,647,825
    Transportation                                                             2,691,748          625,200        3,316,948
    Economic Environment                                                       1,566,534       17,817,675       19,384,209
    Culture and Recreation                                                    31,745,121          256,720       32,001,841
Debt Service
    Principal Retirement                                                          49,168        6,396,251        6,445,419
    Interest and Fiscal Charges                                                    1,940        2,413,772        2,415,712
    Cost of Issuance                                                                 -            659,897          659,897
Capital Outlay                                                                       -         27,509,896       27,509,896
        Total Expenditures                                                   252,139,592       69,853,044      321,992,636
            Excess Revenues Over (Under) Expenditures                         (8,833,538)     (16,242,841)     (25,076,379)

OTHER FINANCING SOURCES (USES)
Transfers In                                                                   1,519,812       62,334,360       63,854,172
Transfers Out                                                                 (9,317,478)     (53,103,785)     (62,421,263)
Debt Issuance                                                                        -         67,854,000       67,854,000
Premiums on Debt Issuance                                                                       1,063,156        1,063,156
Payments to Refunding Debt Escrow Agent                                              -        (24,022,327)     (24,022,327)
        Total Other Financing Sources (Uses)                                  (7,797,666)      54,125,404       46,327,738
            Net Change in Fund Balances                                      (16,631,204)      37,882,563       21,251,359
Fund Balances - Beginning of Period                                           79,704,376      126,924,403      206,628,779
Fund Balances - End of Period                                         $       63,073,172      164,806,966      227,880,138


The accompanying notes are an integral part of these financial statements.

                                                                    16
                                           CITY OF FORT LAUDERDALE, FLORIDA
                          RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
                            AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
                                        TO THE STATEMENT OF ACTIVITIES
                                 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011



Amounts reported for governmental activities in the statement of activities are different because:

     Net change in fund balances of governmental funds, page 16                                  $   21,251,359

     Governmental funds report capital outlays as expenditures. However, in the
        statement of activities the cost of those assets is allocated over their
        estimated useful lives and reported as depreciation expense. This is the
        amount by which capital outlays exceeded depreciation in the current year.                    9,725,342

     The net effect of various transactions involving capital assets (sales, trade-ins
         and donations) is to increase net assets.                                                      909,100

     Some revenues reported in the statement of activities are not considered
        current financial resources and, therefore, are not reported as revenues
        in governmental funds.                                                                        4,740,137

     The issuance of long-term debt (e.g., bonds, capital leases) provides current
         financial resources to governmental funds, while the repayment of the
         principal of long-term debt consumes the current financial resources of
         governmental funds. Neither transaction, however, has any effect on net
         assets. Also, governmental funds report the effect of issuance costs,
         premiums, discounts and similar items when debt is first issued, whereas
         these amounts are deferred and amortized in the statements of activities.
         This amount is the net effect of these differences in the treatment of
         long-term debt and related items.                                                           (37,789,514)

     Some expenses reported in the statement of activities do not require the use of
        current financial resources and, therefore, are not reported as expenditures
        in governmental funds.                                                                        (4,009,946)

     Internal service funds are used by management to charge the costs of
          City insurance, communications, printing and central stores services
          and for operation of a maintenance facility for City vehicles. The net
          revenue (expense) of certain activities of the internal service funds is reported
          with governmental activities.                                                               (3,099,647)

     Change in net assets of governmental activities, page 13                                    $    (8,273,169)




The accompanying notes are an integral part of these financial statements.


                                                                   17
THIS PAGE INTENTIONALLY LEFT BLANK
                                          CITY OF FORT LAUDERDALE, FLORIDA
                   STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                                   BUDGET AND ACTUAL - BUDGET BASIS
                                              GENERAL FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                                                 VARIANCE
                                                                BUDGETED AMOUNTS                                 WITH FINAL
                                                              ORIGINAL       FINAL              ACTUAL            BUDGET
REVENUES
Property Taxes                                         $      98,475,975          98,475,975    96,703,744        (1,772,231)
Utility Taxes                                                 36,697,209          36,697,209    34,725,638        (1,971,571)
Franchise Taxes                                               19,538,752          19,538,752    16,439,174        (3,099,578)
Insurance Premium Taxes                                        4,197,286           5,097,537     4,735,930          (361,607)
Licenses and Permits
      Occupational Licenses                                    2,736,000           2,736,000     2,860,910           124,910
      Contractor Permits                                         288,655             288,655       261,615           (27,040)
Fines and Forfeitures
      Court Fines and Forfeitures                              9,373,684           9,373,684     1,501,768        (7,871,916)
      Code Enforcement Fines                                     458,000             458,000       531,212            73,212
      Other Fines and Forfeitures                                860,479             860,479       657,307          (203,172)
Intergovernmental
      Federal
           Federal Other                                                     -             -       84,164             84,164
      State
           State Revenue Sharing                               4,350,000           4,350,000     4,663,469           313,469
           Half Cent Sales Tax                                 9,844,728           9,844,728     9,503,251          (341,477)
           State Other                                           545,000             545,000       587,775            42,775
      Other Local Units
           County Shared Gas Tax                               1,904,314           1,904,314     1,957,399            53,085
           County Occupational License                            60,000              60,000       303,210           243,210
Charges for Services
      General Government                                       1,599,622           1,599,622     1,198,668          (400,954)
      Public Safety
           Police Service Fees                                   247,061             247,061       256,865             9,804
           Alarm Fees                                          1,480,867           1,480,867     1,150,055          (330,812)
           Fire Services                                       1,558,650           1,558,650     1,759,722           201,072
           EMS Transport Fees                                  6,654,206           6,654,206     7,285,138           630,932
      Transportation-Parking                                     782,000             782,000       842,181            60,181
      Culture and Recreation
           Auditorium                                          1,175,400           1,475,400     1,171,991          (303,409)
           Stadiums                                               40,000              40,000        45,577             5,577
           Swimming Pools                                        800,760             500,760       362,672          (138,088)
           Tennis Courts                                         652,640             652,640       627,727           (24,913)
           Parks                                                 668,699             668,699       557,353          (111,346)
           Docks                                               2,348,708           2,348,708     2,869,221           520,513
           Program Fees                                        1,609,767           1,627,767     1,015,964          (611,803)
           Special Events                                         25,000              25,000        31,666             6,666
           Miscellaneous                                         253,022             253,022       252,137              (885)
Other
      Assessments and Other Fees                             20,050,000           20,598,169    20,868,749           270,580
      Interest and Dividends                                    658,000              658,000       436,702          (221,298)
      Rents and Concession                                    2,561,262            2,561,262     2,852,586           291,324
      Interfund Service Charges                              21,691,695           21,691,695    21,147,155          (544,540)
      Miscellaneous                                           3,341,749            3,700,898     3,057,359          (643,539)
        Total Revenues                                      257,529,190          259,354,759   243,306,054       (16,048,705)




                                                                                                         Continued on Next Page
The accompanying notes are an integral part of these financial statements.


                                                                     18
                                          CITY OF FORT LAUDERDALE, FLORIDA
                   STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                                   BUDGET AND ACTUAL - BUDGET BASIS
                                              GENERAL FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                                             VARIANCE
                                                                BUDGETED AMOUNTS                             WITH FINAL
                                                              ORIGINAL       FINAL           ACTUAL           BUDGET
EXPENDITURES
General Government
    City Commission                                    $       1,013,512       1,019,512      1,019,167              345
    City Auditor                                                 749,367         749,367        733,714           15,653
    City Manager                                               2,987,805       2,982,882      2,607,003          375,879
    City Attorney                                              3,863,877       3,863,877      3,776,543           87,334
    City Clerk                                                   758,938         758,938        758,062              876
    Information Systems                                        4,629,936       4,629,936      4,588,756           41,180
    Finance                                                    5,791,124       5,791,244      5,719,566           71,678
    Human Resources                                            2,178,769       2,130,831      2,015,812          115,019
    Office of Management and Budget                                1,197               -              -                -
    Office of Professional Standards                             527,345         527,345        524,691            2,654
    Procurement                                                1,426,510       1,426,510      1,417,827            8,683
    Planning and Zoning                                        4,053,578       4,033,478      3,928,228          105,250
    Public Works                                               5,832,706       5,838,546      5,762,829           75,717
    Public Information                                         1,403,311       1,659,418      1,466,374          193,044
    Other General Government                                   6,056,236       6,065,711      5,936,878          128,833
         Total General Government                             41,274,211      41,477,595     40,255,450        1,222,145
Public Safety
    Building Services                                         4,000,944        4,023,361      4,065,625          (42,264)
    Fire Rescue                                              69,704,978       70,635,229     70,163,980          471,249
    Police                                                  100,535,817      100,539,602     95,433,721        5,105,881
         Total Public Safety                                174,241,739      175,198,192    169,663,326        5,534,866
Physical Environment
    Business Enterprises                                         127,945         127,945        130,948           (3,003)
    Public Works                                               7,860,067       7,925,067      7,627,572          297,495
         Total Physical Environment                            7,988,012       8,053,012      7,758,520          294,492
Transportation
    Parks and Recreation                                         382,227         382,227        405,662          (23,435)
    Public Works                                               2,908,357       2,908,357      2,491,179          417,178
         Total Transportation                                  3,290,584       3,290,584      2,896,841          393,743
Economic Environment
    Economic Development                                       1,155,781       1,203,719      1,041,804          161,915
    Planning and Zoning                                          548,766         548,766        548,769               (3)
         Total Economic Environment                            1,704,547       1,752,485      1,590,573          161,912
Culture and Recreation
    Business Enterprises                                       6,495,952       6,495,952      6,065,190          430,762
    Parks and Recreation                                      27,547,442      27,749,542     26,667,232        1,082,310
         Total Culture and Recreation                         34,043,394      34,245,494     32,732,422        1,513,072
Debt Service
    Principal Retirement                                         90,210           90,210         49,168           41,042
    Interest and Fiscal Charges                                   5,764            5,764          1,940            3,824
         Total Debt Service                                      95,974           95,974         51,108           44,866
        Total Expenditures                                  262,638,461      264,113,336    254,948,240        9,165,096
            Excess Revenues Over (Under) Expenditures        (5,109,271)      (4,758,577)   (11,642,186)      (6,883,609)




The accompanying notes are an integral part of these financial statements.                            Continued on Next Page

                                                                     19
                                           CITY OF FORT LAUDERDALE, FLORIDA
                    STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                                    BUDGET AND ACTUAL - BUDGET BASIS
                                               GENERAL FUND
                               FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                                                  VARIANCE
                                                                BUDGETED AMOUNTS                                  WITH FINAL
                                                              ORIGINAL       FINAL               ACTUAL            BUDGET
OTHER FINANCING SOURCES (USES)
Transfers In
    General Obligation Construction 1997 Fund           $                    -      685,719        685,719                     -
    Water and Sewer Fund                                                     -      283,359        283,359                     -
    Sanitation Fund                                                          -       92,742         92,742                     -
    Parking System Fund                                                      -       83,945         83,945                     -
    Airport Fund                                                             -       21,994         21,994                     -
    Stormwater Fund                                                          -       31,892         31,892                     -
    Vehicle Rental Fund                                                      -      320,161        320,161                     -
        Total Transfers In                                                   -    1,519,812      1,519,812                     -

Transfers Out
    Community Redevelopment Agency Fund                        (4,178,305)        (4,178,305)    (4,138,538)          (39,767)
    Intergovernmental Revenue Fund                               (597,693)          (868,055)      (343,688)         (524,367)
    Building Fund                                                       -           (509,726)      (509,726)                -
    Special Obligation Loans Fund                              (3,167,788)        (3,190,526)    (3,167,048)          (23,478)
    General Capital Projects Fund                                       -         (1,158,478)    (1,158,478)                -
         Total Transfers Out                                   (7,943,786)        (9,905,090)    (9,317,478)         (587,612)
       Total Other Financing Sources (Uses)                    (7,943,786)        (8,385,278)    (7,797,666)         (587,612)
           Net Change in Fund Balances                        (13,053,057)       (13,143,855)   (19,439,852)       (6,295,997)
Fund Balances - Beginning of Period                            61,586,766         61,586,766     76,734,940        15,148,174
Encumbrances at September 30, 2010                              2,969,436          2,969,436      2,969,436                 -
Fund Balances - End of Period                           $      51,503,145         51,412,347     60,264,524         8,852,177




                                                                                                          Continued from Prior Page
The accompanying notes are an integral part of these financial statements.

                                                                     20
                                           CITY OF FORT LAUDERDALE, FLORIDA
                                                  STATEMENT OF NET ASSETS
                                                     PROPRIETARY FUNDS
                                                     SEPTEMBER 30, 2011

                                                       BUSINESS-TYPE ACTIVITIES-ENTERPRISE FUNDS           GOVERNMENTAL
                                                     MAJOR FUNDS                                             ACTIVITIES
                                                        WATER                             TOTAL              INTERNAL
                                                         AND          NONMAJOR         ENTERPRISE             SERVICE
                                                        SEWER           FUNDS             FUNDS                FUNDS
ASSETS
Current Assets
    Cash and Cash Equivalents                 $         101,782,008           53,333,890    155,115,898      75,845,433
    Receivables
        Accounts and Notes (Net of $6,518,765
             Allowance for Uncollectibles)                 7,247,212           1,733,343      8,980,555         599,438
        Unbilled Service                                   4,088,721             655,268      4,743,989               -
        Assessments                                          195,950              25,866        221,816               -
    Due from Fiduciary Funds                               2,941,893                   -      2,941,893               -
    Due from Other Governments                                     -             860,955        860,955               -
    Inventories                                            1,157,679                   -      1,157,679               -
    Restricted Assets
        Cash and Cash Equivalents                        22,948,035            2,766,742     25,714,777          28,631
        Investments                                      49,311,800                    -     49,311,800               -
             Total Current Assets                       189,673,298           59,376,064    249,049,362      76,473,502

Noncurrent Assets
   Investment in Joint Venture                                     -            885,919         885,919                -
   Deferred Debt Issuance Costs                            4,082,485                  -       4,082,485                -
   Deposits                                                        -                  -               -           25,000
   Capital Assets (Net of Accumulated
       Depreciation)                                    829,833,578           85,253,295     915,086,873     19,931,745
            Total Noncurrent Assets                     833,916,063           86,139,214     920,055,277     19,956,745
            Total Assets                              1,023,589,361          145,515,278   1,169,104,639     96,430,247

LIABILITIES
Current Liabilities
    Vouchers Payable                                      4,564,147            1,426,317      5,990,464         640,233
    Contracts Payable                                       402,006              117,653        519,659               -
    Accrued Payroll                                         741,822              343,853      1,085,675          69,475
    Accrued Interest                                              -                1,525          1,525               -
    Due to Other Governments                                      -               11,593         11,593               -
    Current Portion of Long-Term Debt                    13,240,601              275,565     13,516,166      11,381,226
    Payable from Restricted Assets
        Vouchers Payable                                    795,155                    -        795,155               -
        Contracts Payable                                   584,193                    -        584,193               -
        Accrued Interest                                  2,245,145                    -      2,245,145          28,631
        Deposits                                          5,850,970            1,049,261      6,900,231               -
             Total Current Liabilities                   28,424,039            3,225,767     31,649,806      12,119,565

Noncurrent Liabilities
   Deposits                                                 632,999               77,817        710,816         221,381
   Unearned Revenue                                         700,000              340,738      1,040,738               -
   Net OPEB Obligation                                    1,306,228              648,929      1,955,157          99,474
   Long-Term Debt                                       470,119,170            1,986,997    472,106,167      29,670,774
            Total Noncurrent Liabilities                472,758,397            3,054,481    475,812,878      29,991,629
            Total Liabilities                           501,182,436            6,280,248    507,462,684      42,111,194




The accompanying notes are an integral part of these financial statements.                            Continued on Next Page


                                                                    21
                                          CITY OF FORT LAUDERDALE, FLORIDA
                                                     STATEMENT OF NET ASSETS
                                                        PROPRIETARY FUNDS
                                                        SEPTEMBER 30, 2011

                                                         BUSINESS-TYPE ACTIVITIES-ENTERPRISE FUNDS                GOVERNMENTAL
                                                       MAJOR FUNDS                                                  ACTIVITIES
                                                          WATER                             TOTAL                   INTERNAL
                                                           AND          NONMAJOR         ENTERPRISE                  SERVICE
                                                          SEWER           FUNDS             FUNDS                     FUNDS
NET ASSETS
Invested in Capital Assets, Net of
    Related Debt                                   $      378,482,031              85,113,292       463,595,323      12,820,861
Restricted for
    Debt Service                                           23,988,885                      -         23,988,885               -
    Replacement and Improvement                             8,587,451                 37,516          8,624,967               -
    Capital Improvements                                    5,577,258              1,679,965          7,257,223               -
Unrestricted                                              105,771,300             52,404,257        158,175,557      41,498,192
             Total Net Assets                      $      522,406,925            139,235,030        661,641,955      54,319,053


            Adjustment to reflect the consolidation of internal service fund activities
                related to enterprise funds                                                           9,328,994

            Net Assets of Business-type Activities                                              $   670,970,949




The accompanying notes are an integral part of these financial statements.                                  Continued from Prior Page


                                                                        22
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                                      CITY OF FORT LAUDERDALE, FLORIDA
                 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
                                     PROPRIETARY FUNDS
                        FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                BUSINESS-TYPE ACTIVITIES-ENTERPRISE FUNDS                GOVERNMENTAL
                                               MAJOR FUNDS                                                 ACTIVITIES
                                                  WATER                                     TOTAL          INTERNAL
                                                   AND               NONMAJOR             ENTERPRISE        SERVICE
                                                 SEWER                 FUNDS                FUNDS            FUNDS
OPERATING REVENUES
Charges for Services                       $   104,495,309            33,569,345          138,064,654      54,920,481
Equity in Earnings of Joint Venture                      -               120,390              120,390               -
Private Collectors Operating Fees                        -             3,939,758            3,939,758               -
Parking Citations                                        -             2,610,755            2,610,755               -
Land Leases                                              -             3,200,078            3,200,078               -
Other                                              899,968             3,339,001            4,238,969         659,617
         Total Operating Revenues              105,395,277            46,779,327          152,174,604      55,580,098

OPERATING EXPENSES
Personal Services                               25,293,928            12,785,605           38,079,533       2,629,232
Current Expenses                                33,291,495            26,111,617           59,403,112      49,042,735
Depreciation                                    20,029,435             4,089,178           24,118,613       7,225,124
        Total Operating Expenses                78,614,858            42,986,400          121,601,258      58,897,091
        Operating Income (Loss)                 26,780,419             3,792,927           30,573,346      (3,316,993)

NON-OPERATING REVENUES
    (EXPENSES)
Revenues
    Interest                                      1,007,616               404,951           1,412,567        326,657
    Other                                                 -               282,568             282,568              -
         Total                                    1,007,616               687,519           1,695,135        326,657
Expenses
    Interest and Fiscal Charges                      30,204                  1,525             31,729        420,895
    Loss on Disposal of Capital Assets            1,357,218                      -          1,357,218        346,047
         Total                                    1,387,422                  1,525          1,388,947        766,942
         Net Non-Operating Revenues
             (Expenses)                            (379,806)              685,994            306,188         (440,285)
         Income (Loss) Before
             Contributions and Transfers        26,400,613              4,478,921          30,879,534      (3,757,278)
Capital Contributions                              612,339                848,256           1,460,595               -
Transfers Out                                     (283,359)              (799,541)         (1,082,900)       (350,009)

Change in Net Assets                            26,729,593              4,527,636          31,257,229      (4,107,287)


Net Assets - Beginning of Period               495,677,332           134,707,394                           58,426,340

Net Assets - End of Period                 $   522,406,925           139,235,030                           54,319,053

        Adjustment to reflect the consolidation of internal service fund activities
            related to enterprise funds                                                    (1,007,640)
        Changes in Net Assets of Business-type Activities                             $    30,249,589




The accompanying notes are an integral part of these financial statements.

                                                                        23
                                            CITY OF FORT LAUDERDALE, FLORIDA
                                              STATEMENT OF CASH FLOWS
                                                 PROPRIETARY FUNDS
                                    FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                        BUSINESS-TYPE ACTIVITIES-ENTERPRISE FUNDS            GOVERNMENTAL
                                                      MAJOR FUNDS                                              ACTIVITIES
                                                         WATER                                TOTAL            INTERNAL
                                                          AND                NONMAJOR       ENTERPRISE          SERVICE
                                                         SEWER                 FUNDS          FUNDS              FUNDS
CASH FLOWS FROM OPERATING
   ACTIVITIES
Receipts from Customers                           $    105,695,160            45,827,334    151,522,494                    -
Receipts from Other Funds                                  543,774               989,230      1,533,004           55,643,813
Other Operating Receipts                                         -                     -              -                3,344
Payments to Suppliers                                  (17,023,748)          (20,665,097)   (37,688,845)         (49,795,040)
Payments for Services of Employees                     (24,532,039)          (12,381,301)   (36,913,340)          (2,552,206)
Payments to Other Funds                                (15,660,261)           (8,573,536)   (24,233,797)            (813,166)
   Net Cash Provided by
        Operating Activities                             49,022,886           5,196,630      54,219,516            2,486,745

CASH FLOWS FROM NON-CAPITAL
    FINANCING ACTIVITIES
Repayment of Loans to Other Funds                         2,062,080                   -       2,062,080                    -
Operating Grant Receipts                                          -             248,680         248,680                    -
Loans to Fiduciary Funds                                 (2,941,893)                  -      (2,941,893)                   -
Transfers to Other Funds                                   (283,359)           (799,541)     (1,082,900)            (350,009)
    Net Cash Used by Non-
        Capital Financing Activities                     (1,163,172)           (550,861)     (1,714,033)            (350,009)

CASH FLOWS FROM CAPITAL AND
     RELATED FINANCING ACTIVITIES
Proceeds from Disposal of Capital Assets                          -               33,888         33,888                     -
Capital Contributions                                       816,009            1,094,856      1,910,865                     -
Investment in Joint Venture                                       -              168,402        168,402                     -
Acquisition of Capital Assets                           (24,336,827)          (3,703,273)   (28,040,100)           (2,253,600)
Retirement of Debt                                      (13,304,798)                   -    (13,304,798)           (1,267,688)
Interest Paid on Debt                                   (20,219,660)                   -    (20,219,660)             (395,547)
     Net Cash Used by Capital
         and Related Financing Activities               (57,045,276)          (2,406,127)   (59,451,403)           (3,916,835)

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sales and Maturities
     of Investments                                      34,473,156                   -      34,473,156                    -
Interest and Dividends on Investments                     1,083,388             404,951       1,488,339              326,657
Purchase of Investments                                 (21,542,123)                  -     (21,542,123)                   -
     Net Cash Provided by Investing
          Activities                                     14,014,421             404,951      14,419,372              326,657
Net Increase (Decrease) In Cash And
     Cash Equivalents                                     4,828,859           2,644,593       7,473,452            (1,453,442)
Cash And Cash Equivalents -
     Beginning of Period                               119,901,184           53,456,039     173,357,223           77,327,506
Cash And Cash Equivalents -
     End of Period                                $    124,730,043           56,100,632     180,830,675           75,874,064




The accompanying notes are an integral part of these financial statements.                                 Continued on Next Page

                                                                     24
                                         CITY OF FORT LAUDERDALE, FLORIDA
                                              STATEMENT OF CASH FLOWS
                                                 PROPRIETARY FUNDS
                                    FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                        BUSINESS-TYPE ACTIVITIES-ENTERPRISE FUNDS            GOVERNMENTAL
                                                      MAJOR FUNDS                                              ACTIVITIES
                                                         WATER                                TOTAL            INTERNAL
                                                          AND                NONMAJOR       ENTERPRISE          SERVICE
                                                         SEWER                 FUNDS          FUNDS              FUNDS
RECONCILIATION OF OPERATING
   INCOME (LOSS) TO NET CASH PROVIDED
   (USED) BY OPERATING ACTIVITIES

OPERATING INCOME (LOSS)                           $      26,780,419           3,792,927      30,573,346            (3,316,993)

ADJUSTMENTS TO RECONCILE OPERATING
   INCOME (LOSS) TO NET CASH PROVIDED
   BY OPERATING ACTIVITIES
Depreciation                                             20,029,435           4,089,178      24,118,613             7,225,124
Equity in Earnings of Joint Venture                               -            (120,390)       (120,390)                    -
Changes in Assets and Liabilities
   (Increase) Decrease in Receivables
         Accounts                                            849,104             99,546         948,650              (366,251)
         Unbilled Service                                   (106,591)           (30,214)       (136,805)                    -
   Increase in Due from Other Governments                          -            (97,736)        (97,736)                    -
   Increase in Inventories                                  (137,429)                 -        (137,429)                    -
   Decrease in Deferred Debt Issue Costs                     302,792                  -         302,792                     -
   Increase (Decrease) in Vouchers Payable                   442,123           (720,776)       (278,653)             (160,346)
   Increase in Accrued Payroll                                66,778             54,224         121,002                 5,153
   Decrease in Due to Other Governments                            -             (2,322)         (2,322)                    -
   Decrease in Estimated Insurance Claims
         Payable                                                     -                  -             -              (380,878)
   Increase in Deposits Payable from
         Restricted Assets                                  322,377             39,158         361,535                        -
   Increase in Compensated Absences
         and Longevity                                      203,396             114,016         317,412                40,786
   Increase in Net OPEB Obligation                          491,715             236,064         727,779                31,087
   Decrease in Deposits                                    (193,469)               (126)       (193,595)             (590,937)
   Increase (Decrease) in Unearned Revenue                  (27,764)            146,999         119,235                     -
   Decrease in Landfill Closure Costs                             -          (2,403,918)     (2,403,918)                    -
         Total Adjustments                               22,242,467           1,403,703      23,646,170             5,803,738
NET CASH PROVIDED BY
   OPERATING ACTIVITIES                    $             49,022,886           5,196,630      54,219,516             2,486,745




The accompanying notes are an integral part of these financial statements.                               Continued from Prior Page




                                                                     25
                                         CITY OF FORT LAUDERDALE, FLORIDA
                                           STATEMENT OF FIDUCIARY NET ASSETS
                                                   FIDUCIARY FUNDS
                                                  SEPTEMBER 30, 2011



                                                                                                  AGENCY
                                                                                                 ARTS AND
                                                                                                 SCIENCE
                                                                                   PENSION       DISTRICT
                                                                                    TRUST         GARAGE

ASSETS
Cash and Cash Equivalents                                                      $    17,803,316      62,360
Investments, at Fair Value
     U.S. Treasury Securities                                                       26,962,077              -
     Federal Instrumentalities                                                      74,644,183              -
     Corporate Obligations                                                          92,525,090              -
     Other Bonds                                                                    12,464,435              -
     Mutual Funds and Other                                                         86,859,643              -
     Money Market Funds                                                              5,710,384              -
     Common and Preferred Stock                                                    358,053,262              -
     Real Estate                                                                    42,110,495              -
     Venture Capital and Partnerships                                               28,954,543              -
          Total Investments                                                        728,284,112              -
Receivables
     Accounts                                                                        2,615,150           -
     Accrued Dividends and Interest                                                  2,496,060           -
Due from Other Governments                                                                   -      15,399
Deposits                                                                                 4,050           -
Capital Assets (Net of Accumulated
     Depreciation)                                                                      21,856           -
          Total Assets                                                             751,224,544      77,759

LIABILITIES
Vouchers Payable                                                                     4,138,756       2,496
Accrued Payroll                                                                         15,218       4,303
Due to Primary Government                                                            2,941,893           -
Due to Other Governments                                                                     -      65,478
Compensated Absences and Longevity                                                           -       5,482
Deposits                                                                                13,500           -
Unearned Revenue                                                                    15,000,000           -
          Total Liabilities                                                         22,109,367      77,759

NET ASSETS
Held in Trust for Pension Benefits                                             $   729,115,177              -




The accompanying notes are an integral part of these financial statements.

                                                                    26
                                        CITY OF FORT LAUDERDALE, FLORIDA
                                  STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
                                         PENSION TRUST FIDUCIARY FUNDS
                                   FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




ADDITIONS
Contributions
    City                                                                          $    51,940,568
    Employee                                                                            9,410,930
    State                                                                               4,735,930
    County                                                                                 35,242
          Total                                                                        66,122,670

Investment Income (Loss)
     Interest                                                                           8,951,997
     Dividends                                                                          5,130,869
     Net Change in Fair Value of Investments                                          (15,462,763)
     Other                                                                              1,934,032
          Total                                                                           554,135
     Investment Expense                                                                 3,587,480
          Net Investment Income (Loss)                                                 (3,033,345)

Other Income                                                                             125,065

           Total Additions                                                             63,214,390

DEDUCTIONS
Benefits Paid
    Retirement                                                                         60,303,141
    Disability                                                                          1,267,903
    Death                                                                               5,658,068
          Total                                                                        67,229,112

Employee Contribution Refunds                                                            421,074

Administrative Costs                                                                     920,121

           Total Deductions                                                            68,570,307

Change In Net Assets                                                                   (5,355,917)

Net Assets - Beginning of Period                                                      734,471,094

Net Assets - End of Period                                                        $   729,115,177




The accompanying notes are an integral part of these financial statements.


                                                                    27
THIS PAGE INTENTIONALLY LEFT BLANK
                                       CITY OF FORT LAUDERDALE, FLORIDA
                                      NOTES TO THE FINANCIAL STATEMENTS
                                               SEPTEMBER 30, 2011

                                                               INDEX

Note                                                                                                                            Page
(1)    Summary of Significant Accounting Policies.................................................................. 29
(2)    Reconciliation of Government-wide and Fund Financial Statements............................. 35
(3)    Stewardship, Compliance and Accountability................................................................ 37
(4)    Deposits and Investments……………………………………………………………………. 38
(5)    Property Taxes...........................................................................................................… 45
(6)    Inter-fund Receivables, Payables and Transfers.............................................................45
(7)    Capital Assets................................................................................................................ 47
(8)    Investment in Joint Venture........................................................................................… 48
(9)    Risk Management ......................................................................................................… 48
(10)   Capital Lease Obligations…………………………………………………………………….. 49
(11)   Long-Term Debt.........................................................................................................… 50
(12)   Estimated Landfill Closure Costs................................................................................… 53
(13)   Fund Balances…………………………………………………………………………………. 54
(14)   Employee Retirement Systems..................................................................................… 55
(15)   Other Postemployment Benefits.................................................................................… 59
(16)   Deferred Compensation Plan ....................................................................................… 61
(17)   Operating Leases......................................................................................................…. 61
(18)   Commitments and Contingent Liabilities.....................................................................… 62
(19)   Subsequent Events …………………........…..............................................................…                            63




                                                                  28
                             CITY OF FORT LAUDERDALE, FLORIDA
                            NOTES TO THE FINANCIAL STATEMENTS
                                     SEPTEMBER 30, 2011

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The financial statements of the City of Fort Lauderdale, Florida (the City) have been prepared in
accordance with accounting principles generally accepted in the United States (GAAP) applicable
to governmental units. The following is a summary of the more significant accounting policies of
the City:

     (A) The Financial Reporting Entity

     The City was incorporated in the State of Florida in 1911 and covers an area of
     approximately 36 square miles. The City is governed by an elected five-member commission
     composed of a Mayor and four District Commissioners and provides services to its
     approximately 165,500 residents in many areas, including law enforcement, community
     enrichment and development and various human services. As required by GAAP, these
     financial statements present the City of Fort Lauderdale (the primary government) and its
     component units. The component units discussed in note 1(B) below are included in the
     City's reporting entity because of the significance of their operational and financial
     relationships with the City.

     (B) Individual Component Unit Disclosure

     The criteria for including component units consists of identification of legally separate
     organizations for which the elected officials of the City are financially accountable. This
     criteria also includes identification of organizations for which the nature and significance of
     their relationship with the primary government are such that exclusion would cause the
     reporting entity's financial statements to be misleading or incomplete. Blended component
     units, although legally separate entities, are in substance, part of the government’s
     operations and so data from these units are combined with data of the primary government.
     Discretely presented component units are reported in a separate column in the government-
     wide financial statements to emphasize that they are legally separate from the government.

     A five-member board appointed by the City Commission (currently composed of the City
     Commission, itself) governs the Fort Lauderdale Community Redevelopment Agency (CRA).
     Although it is legally separate from the City, the CRA is reported as part of the primary
     government because its sole purpose is to finance and redevelop the City's designated
     redevelopment areas. The operations of the CRA are reported within the special revenue
     fund type and the capital expenditures are accounted for in a capital projects fund type using
     the blended method. Separate financial information for the CRA can be obtained from the
     City's Economic Development department.

     A seven-member board appointed by the City Commission governs the Sunrise Key Safe
     Neighborhood Improvement District (SK). While legally separate from the City, it is reported
     as part of the reporting entity under the discretely presented method because the City's
     elected officials are financially accountable for SK. The City Commission has the power to
     approve, disapprove or modify the budget and millage rates or assessments submitted by the
     board. Separate financial information can be obtained from SK.




                                                29
                         CITY OF FORT LAUDERDALE, FLORIDA
                        NOTES TO THE FINANCIAL STATEMENTS
                                 SEPTEMBER 30, 2011

The Lauderdale Isles Water Control District (LIWCD) is governed by a three-member board,
which consists of a member of the City Commission and two elected members. The City
provides no financial support to the District and is in no way responsible for their operations
or debt (if any). The City is considered financially accountable for the District since the City
Commission approves the budget and assessments submitted by the District. The District is
shown as part of the reporting entity under the discretely presented method. Separate
financial information can be obtained from LIWCD.

(C) Related Organizations

The City's officials are also responsible for appointing the members of the boards of other
organizations, but the City's accountability for these organizations does not significantly
extend beyond making the appointments. The City Commission appoints the governing
board of the City of Fort Lauderdale Downtown Development Authority (DDA) and the
Housing Authority of the City of Fort Lauderdale (HA). The City is not financially accountable
for either the DDA or HA.

A five-member board appointed by the City Commission governs the Northwest
Neighborhood Improvement District (NWNID).

(D) Joint Ventures

The City is a participant with the Performing Arts Center Authority (PACA) and the DDA in a
joint venture to own and operate the 950 space Arts and Science District Parking Garage.
The City has an ongoing financial interest in this joint venture, which is discussed in note 8.

(E) Government-wide and Fund Financial Statements

The government-wide financial statements, including the statement of net assets and the
statement of activities, report information on all of the non-fiduciary activities of the City. For
the most part, the effect of inter-fund activity has been removed from the statements.
Governmental activities, which are primarily supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely extensively on
fees and charges for support. Likewise, the City’s primary government is reported separately
from its legally separate component units for which the City is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include charges to
customers or applicants who purchase, use or directly benefit from goods, services or
privileges provided by a given function or segment and grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Other than for depreciation, indirect expenses are not allocated to specific
functions. Taxes and other items not properly included among program revenues are
reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and enterprise funds are reported as
separate columns in the fund financial statements.


                                             30
                         CITY OF FORT LAUDERDALE, FLORIDA
                        NOTES TO THE FINANCIAL STATEMENTS
                                 SEPTEMBER 30, 2011

(F) Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary, except agency, fund financial statements. Agency funds have no measurement
focus but follow the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Grants and similar items are recognized as revenues as soon as all eligibility
requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified
accrual basis of accounting, revenues are recognized when they become susceptible to
accrual, i.e., measurable and available to finance the City's operations. Available means
collectible within the current period or soon enough thereafter to be used to pay liabilities of
the current period. For this purpose, the City considers revenues to be available if they are
collected within 60 days of the end of the current fiscal year. Expenditures are recognized in
the accounting period in which the related fund liabilities are incurred, if measurable, except
for interest on long-term debt and the long-term portion of accumulated compensated
absences and longevity pay, which are recognized when due.

Property taxes are recorded as revenues in the fiscal year levied, provided they are collected
in the current period or within sixty days thereafter. Those remaining uncollected are
recorded as deferred revenues. The utility and franchise taxes from major sources are
recorded as revenues when earned. Licenses and permits, fines and forfeitures, charges for
services, and other revenues (except investment earnings) are recorded as revenues when
received in cash because they are generally not measurable until actually received.
Investment income is recorded as revenue when earned. Special assessments are recorded
as revenues only to the extent that individual installments are considered available.

In applying the susceptible to accrual concept to intergovernmental revenues, the legal and
contractual requirements of the numerous individual programs are used as guidance. There
are, however, essentially two types of these revenues. In one, monies must be expended for
the specific purpose or project before any amounts will be paid to the City; therefore,
revenues are recognized based upon the expenditures incurred. In the other, monies are
virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to
comply with prescribed compliance requirements. These resources are reflected as
revenues at the time of receipt or earlier if susceptible to accrual.

The City reports the following major governmental fund:

     The General Fund is the City’s primary operating fund. It accounts for all financial
     resources of the general government except those required to be accounted for in a
     separate fund.

The City reports the following major proprietary fund:

     The Water and Sewer Fund accounts for the provision of water and sewer services to
     the residents of the City and surrounding areas.




                                            31
                         CITY OF FORT LAUDERDALE, FLORIDA
                        NOTES TO THE FINANCIAL STATEMENTS
                                 SEPTEMBER 30, 2011

Additionally, the City reports the following fund types:

     Internal service funds account for the financing of goods and services provided to
     departments within the City in the following three areas: 1) costs of insuring the City in
     the areas of general liability, auto liability, workers’ compensation, police professional
     liability, employee relations and medical benefits; 2) communications and print center
     operations; and 3) operation of a maintenance facility for City vehicles.

     Pension trust funds account for the activities of the General Employees’ Retirement
     System and the Police and Firefighters Retirement System, which accumulate
     resources for pension, benefit payments to qualifying City employees.

     The Arts and Science District Garage Agency Fund accounts for the assets and
     liabilities held by the City for the District’s parking garage.

Private-sector standards of accounting and financial reporting issued prior to December 1,
1989 are followed in both the government-wide and enterprise fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments have the option of following
subsequent private-sector guidance for business activities and enterprise funds subject to
this same limitation. The City has chosen not to follow subsequent private-sector guidance.

As a general rule, the effect of inter-fund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and
other charges between the City’s enterprise funds and the General Fund as well as cost
reimbursement transactions between the enterprise funds and various other functions of City
government. Elimination of these charges would distort the direct costs and program
revenues reported for those sectors.

The proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenues of the Water and Sewer, Sanitation and
Parking System funds and all the internal service funds are charges to customers for sales
and services. The Sanitation Fund also collects operating fees from private collectors and
the Parking System Fund collects fines for parking citations. The City Insurance Fund bills
the other funds to cover insurance premiums and claims. Operating expenses for the
enterprise and internal service funds include the cost of sales and services, administrative
expenses and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.

The preparation of the basic financial statements in conformity with GAAP requires
management to make use of estimates that affect reported amounts in the basic financial
statements. Actual results could differ from estimates.

When both restricted and unrestricted resources are available for use, it is the City’s policy to
use restricted resources first, and then unrestricted resources as they are needed.




                                             32
                            CITY OF FORT LAUDERDALE, FLORIDA
                           NOTES TO THE FINANCIAL STATEMENTS
                                    SEPTEMBER 30, 2011

(G)   Assets, Liabilities and Net Assets or Equity

      (1) Cash and Cash Equivalents

      The City considers cash on hand, cash with fiscal agents, demand deposits, certificates
      of deposit and bank repurchase agreements as cash and cash equivalents. Each fund's
      equity in the City's investment pool has been treated as a cash equivalent since cash
      may be deposited or withdrawn from the pool at any time without prior notice or penalty.

      (2) Investments

      Investments are stated at fair value. Income from investments held by the individual
      funds is recorded in the respective fund as it is earned. All other investments owned by
      the City are accounted for in the City's investment pool. Income earned from this pool is
      allocated to the respective funds based upon average monthly equity balances.

      (3) Receivables and Payables

      Activity between funds that are representative of lending or borrowing arrangements
      outstanding at the end of the fiscal year of a short-term nature and any other
      outstanding balances between funds are reported as due to and due from other funds.
      The long-term portion of any borrowings between funds is reported as advances to and
      from other funds. Long-term advances of the governmental funds are recorded by the
      advancing fund as a receivable and non-spendable fund balance. Any residual
      outstanding balances between the governmental activities and business-type activities
      at year-end are reported in the government-wide financial statements as internal
      balances.

      All accounts and notes receivable are reported net of any allowances for uncollectibles.

      (4) Inventories

      Inventories in the governmental funds are composed of land held for redevelopment or
      resale and are stated at cost. Inventories of materials and supplies in the enterprise
      funds are based on year-end physical counts priced at weighted average cost.
      Inventories are recognized as expenditures or expenses when consumed.

      (5) Restricted Assets

      Certain proceeds of long-term bonds issued by the capital project, enterprise and
      internal service funds, as well as resources set aside for their repayment, are classified
      as restricted assets on the statement of net assets and their use is limited by applicable
      bond covenants.

      (6) Capital Assets

      Capital assets, including land, buildings, improvements other than buildings,
      infrastructure (i.e., roads, bridges, street lighting and other similar items) and
      equipment, are reported in the applicable governmental and business-type activities
      columns in the government-wide financial statements. The City defines capital assets


                                            33
                   CITY OF FORT LAUDERDALE, FLORIDA
                  NOTES TO THE FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2011

as assets with an initial cost of $1,000 or more and an estimated useful life of more than
one year. Such assets are stated at cost or estimated historical cost. Contributions or
donations of capital assets received from federal, state or local sources are recorded as
contributions when received and are stated at estimated fair value. Additions,
improvements and expenditures that significantly extend the useful life of an asset are
capitalized. Interest is capitalized in the enterprise funds on projects during the
construction period based upon average accumulated project expenses.

Depreciation of capital assets is provided on the straight-line basis over the following
estimated useful lives:
                  Buildings                40-50 years
                  Improvements             20-50 years
                  Infrastructure           15-50 years
                  Equipment                 3-15 years

The City follows the requirements of GASB Statement No. 42 – Accounting and
Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries
regarding potential impairment of capital assets.

(7) Employee Compensated Absences and Longevity

City employees are granted; sick, vacation, and longevity pay in varying amounts based
on length of service, date of hire, and employee group. Compensatory time is granted
to employees in lieu of overtime pay at the employee's request. Sick leave payments to
terminated employees are based on length of service and usage on a last-in-first-out
basis. Unused vacation pay and compensatory time are paid upon an employee's
termination. Longevity pay is paid to eligible employees annually based on length of
service. Accumulated compensated absences and longevity are recorded as expenses
in the government-wide and proprietary fund financial statements when earned.
Expenditures for accumulated compensated absences and longevity have been
recorded in the governmental funds only for amounts payable to employees who have
terminated as of the end of the fiscal year.

(8) Estimated Insurance Claims Payable

The City is self-insured for general liability, automobile liability, police professional
liability, workers' compensation, employee relations and certain death benefits and
medical plans. The operating funds are charged premiums by the City Insurance
internal service fund. The accrued liability for estimated claims represents an estimate
of the eventual loss on claims arising prior to year-end including claims incurred and not
yet reported.

(9) Landfill Post closure Costs

Landfill post closure care costs represent an estimate of the City’s remaining costs to
monitor the City’s former landfill site. These costs are accounted for in the Sanitation
Fund.




                                      34
                           CITY OF FORT LAUDERDALE, FLORIDA
                          NOTES TO THE FINANCIAL STATEMENTS
                                   SEPTEMBER 30, 2011

        (10) Other Long-term Obligations

        Long-term debt and other long-term obligations are reported as liabilities in the
        applicable governmental and business-type activities and proprietary fund financial
        statements. Bond premiums, discounts and issuance costs are deferred and amortized
        over the life of the bonds using the effective interest method. Bonds payable are
        reported net of the applicable premiums and discounts. Issuance costs are reported as
        deferred charges.

        In the governmental fund financial statements, bond premiums, discounts and issuance
        costs are recognized during the current period. The face amount of debt issued and
        any premiums received are reported as other financing sources while discounts are
        reported as other financing uses. Issuance costs are reported as debt service
        expenditures.

        (11) Fund Balance and Net Assets

        In the governmental funds, fund balances are reported as non-spendable if they are not
        in spendable form or are legally or contractually required to be maintained intact. In
        addition, fund balances are reported as restricted, committed or assigned to specific
        purposes based upon the extent to which governments are bond to honor constraints
        placed on those funds. Unassigned fund balance is the residual fund balance
        classification of the General Fund.

        Encumbrance accounting, under which purchase orders and other commitments for the
        expenditure of funds are recorded in order to reserve that portion of the applicable
        appropriation, is utilized in the governmental funds. Encumbered amounts for specific
        purposes are reported within the applicable restricted, committed or assigned fund
        balance classifications.

        Net assets of the government-wide and proprietary funds are categorized as invested in
        capital assets net of related debt, restricted or unrestricted. Invested in capital assets,
        net of related debt consists of capital assets reduced by the outstanding debt issued to
        acquire, construct or improve those assets, less any unspent debt proceeds. Restricted
        net assets have regulatory or third party limitations on their use.

(2) RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS:

    (A) Explanation of certain differences between the governmental fund balance sheet and the
        government-wide statement of net assets.

    The governmental funds balance sheet includes a reconciliation between fund balance total
    governmental funds and net assets – governmental activities as reported in the government-
    wide statement of net assets. One element of that reconciliation explains that long-term
    liabilities, including bonds payable are not due and payable in the current period and
    therefore are not reported in the funds. The details of this $144,951,548 difference follow:




                                              35
                         CITY OF FORT LAUDERDALE, FLORIDA
                        NOTES TO THE FINANCIAL STATEMENTS
                                 SEPTEMBER 30, 2011


      Bonds payable                                                                 $    79,743,000
      Notes payable                                                                      31,408,400
      Other post employment benefits                                                      7,463,127
      Compensated absences and longevity pay                                             24,850,872
      Accrued interest payable                                                              412,903
      Deferred debt issuance costs                                                        (918,096)
      Unamortized bond premiums and discounts                                               975,839
      Unamortized gains and losses on advance refunding of bonds                          (383,085)
      Elimination of investment in special assessment loan                                1,398,588
      Net adjustment to reduce fund balance - total governmental funds
      to arrive at net assets - governmental activities                             $ 144,951,548

(B) Explanation of certain differences between the governmental fund statement of
    revenues, expenditures and changes in fund balances and the government-wide
    statement of activities.
The governmental fund statement of revenues, expenditures and changes in fund balances
includes a reconciliation between net change in fund balances – total governmental funds
and changes in net assets – governmental activities as reported in the government-wide
statement of activities. One element of that reconciliation explains that governmental funds
report capital outlays as expenditures. However, in the statement of activities, the cost of
those assets is allocated over their estimated useful lives and reported as depreciation
expense. The details of this $9,725,342 difference are as follows:

      Capital outlay                                                                $     20,441,693
      Depreciation expense                                                              (10,716,351)

      Net adjustment to increase net changes in fund balance - total governmental
      funds to arrive at changes in net assets - governmental activities            $     9,725,342

Another element of that reconciliation states that the net effect of various miscellaneous
transactions involving capital assets is to increase net assets. In the statement of activities,
only the gain on the sale or loss from impairment of capital assets is reported. However, in
the governmental funds, the proceeds from the sale increase financial resources. Thus, the
change in net assets differs from the change in fund balances by the book value of the capital
assets $909,100.

Another element of that reconciliation states that the issuance of long-term debt provides
current financial resources to governmental funds while the repayment of the principal of
long-term debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets. The details of this $(37,789,514)
difference are as follows:




                                             36
                             CITY OF FORT LAUDERDALE, FLORIDA
                            NOTES TO THE FINANCIAL STATEMENTS
                                     SEPTEMBER 30, 2011


          Principal repayments
            Bonds payable                                                               $      3,822,000
            Notes payable                                                                      2,574,251
            Capital lease obligations                                                             49,168
          Deferred debt issuance costs                                                           659,896
          Advance refunding of debt                                                           24,022,327
          Debt proceeds                                                                     (67,854,000)
          Unamortized bond premiums                                                          (1,063,156)
          Net adjustment to increase net changes in fund balance - total governmental
          funds to arrive at changes in net assets - governmental activities            $ (37,789,514)

    Another element of the reconciliation states that some expenses reported in the statement of
    activities do not require the use of current financial resources and therefore are not reported
    as expenditures in governmental funds. The details of this $(4,009,946) difference are as
    follows:

         Accrued interest payable                                                       $        212,003
         Amortization of deferred debt issuance costs                                          (119,796)
         Amortization of bond discounts                                                         (18,554)
         Amortization of gains and losses on advance refunding of debt                         (120,570)
         Other post employment benefits                                                      (2,716,060)
         Compensated absences and longevity pay                                              (1,246,969)
         Net adjustment to decrease net changes in fund balance - total governmental
         funds to arrive at changes in net assets - governmental activities             $    (4,009,946)

(3) STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY:

    (A) Budgetary Data

    The City Commission follows these procedures in establishing the budgetary data reflected in
    the financial statements:
         (1)   Prior to August 1, the City Manager submits to the City Commission a proposed
               operating budget for the fiscal year commencing on October 1. The operating
               budget includes proposed expenditures and the means of financing them.
         (2)   Public hearings are conducted.
         (3)   Prior to October 1, the budget is legally enacted.
         (4)   The level of control (level at which expenditures may not exceed budget) is the
               department. The City Manager is authorized to transfer budgeted amounts within
               departments of any fund. The City Commission must approve any revisions that
               alter the total expenditures of any department. Unencumbered balances of
               appropriations lapse at year-end.
         (5)   Annual budgets are adopted for all governmental and proprietary funds except the
               Intergovernmental Revenue, State Housing Initiative Partnership and Law
               Enforcement Confiscated Property special revenue funds and the capital project
               funds. The original and final budgets, as presented, include re-appropriated
               encumbrances of the prior year. The budgets have been adopted on a basis
               consistent with GAAP with the following exceptions: Budgetary expenditures


                                                 37
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

                 include GAAP expenditures adjusted for encumbrances at September 30, 2011
                 and principal on the long-term debt of proprietary funds.

     The reported budgetary data represents the final approved budget after amendments
     adopted by the City Commission with one exception. Budgets for grants and shared
     revenues from other governmental units which do not lapse at year-end are only reported to
     the extent of revenues recognized and expenditures incurred for the current year. Individual
     amendments were not material in relation to the original adopted budget.

     (B) Comparison of Budget to Actual Results
     As discussed above, certain adjustments are necessary to compare actual data on a GAAP
     versus budget basis. Adjustments necessary to compare the fund balances of the General
     Fund at year-end follow:
     Statement of revenues, expenditures and
       changes in fund balances – page 16                                              $ 63,713,106
     Basis of accounting adjustments
        Encumbrances as of September 30, 2011                                            (2,808,648)
     Statement of revenues, expenditures and
       changes in fund balances – budget and actual – page 20                          $ 60,904,458

     The Building Services Department within the General Fund had an excess of actual
     expenditures over budget for the year of $42,264.

(4) DEPOSITS AND INVESTMENTS:

The City maintains a pooled cash and investment fund for the City’s operating and capital funds.
In addition, cash and investments are separately held for the City's debt service, capital projects,
permanent, and enterprise funds.

In accordance with Section 218.415, Florida Statutes, the City’s Investment Policy applies to all
cash and investments held or controlled by the City and shall be identified as “general operating
funds” of the City with the exception of the City’s Cemetery Perpetual Care and Pension Funds.
The policy was adopted on September 4, 2001 and subsequently amended on March 1, 2008.

Permitted investments, asset allocation limits, issuer limits, credit rating requirements and maturity
limits are detailed in the policy in order to protect the City’s cash and investments. The current
policy allows for the purchase of the following investments: U.S. Government Securities, U.S.
Government Agency Securities, Federal Instrumentalities, interest bearing time deposits or saving
accounts, repurchase agreements, commercial paper, corporate notes, bankers’ acceptances,
state or local government taxable or tax exempt debt, City of Fort Lauderdale debt obligations,
registered investment companies (money market mutual funds), and intergovernmental investment
pools. As of September 30, 2011, the total cash and investments for the City of Fort Lauderdale’s
primary government, was $517,171,842.




                                                 38
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

CASH AND CASH EQUIVALENTS

Custodial Credit Risk – Deposits

Custodial Credit Risk for deposits is the risk in the event of the failure of a depository financial
institution; a government may not be able to recover deposits. Monies placed on deposit with
financial institutions in the form of demand deposits, time deposits or certificate of deposits are
defined as public deposits. The City’s Investment Policy requires that the City’s public deposits be
held in a State Qualified Public Depository as defined in Section 280.02, Florida Statutes.

As of September 30, 2011, the bank balances totaled $83,891,592 of which $83,099,014 was
deposited in a State Qualified Public Depository and $792,578 was insured by the Federal
Depository Insurance Corporation (FDIC). Cash on hand totaled $43,182. The carrying value of
cash is $81,119,128.

INVESTMENTS

The City’s investment holdings are organized into six portfolios. Three portfolios are governed by
the City’s Investment Policy (the City’s Portfolios): Surplus Funds Pooled Investments, Water and
Sewer Construction Portfolio, and General Obligation Capital Project Portfolio. The remaining three
portfolios, the Cemetery Perpetual Care Fund, the Police and Fire Retirement System Fund, and
the General Employees’ Retirement System Fund are controlled by their respective policies.

In accordance with GASB Statement No. 31, “Accounting and Financial Reporting for Certain
Investments and for External Investment Pools”, all investments are reported at fair value.
Compositions of the portfolios as of September 30, 2011 are:

Portfolio No. 1       Surplus Funds Pooled Investments, $350,960,628

The pooled investments portfolio consists of investments in U.S. Government Securities, U.S.
Government Agency Securities, Federal Instrumentalities, corporate obligations, including
government guaranteed, asset and mortgage backed securities, Wells Fargo Money Market
Account, Morgan Stanley Government Portfolio Institutional Class Fund, Goldman Sachs Financial
Government Institutional Fund, Federated Government Obligation Fund and Florida Municipal
Investment Trust. Interest receivable on this portfolio at September 30, 2011 was $417,529.

The remaining proceeds of several long-term debt issues are a part of this portfolio. All of these
funds are in the Florida Municipal Investment Trust, which complies with each individual debt
issue’s investment requirements. There was no Interest receivable on these long-term debt issues
at September 30, 2011.

                  2004 Tax Increment Revenue Bonds, Non-AMT $          8,715,480
                  2004 Tax Increment Revenue Bonds, AMT                1,673,196
                  2010A Special Obligation Bonds                         318,744
                  1997 General Obligation Construction                   197,157
                  2010B Special Obligation Bonds                       6,540,222
                  2011A Special Obligation Bonds                       7,051,776
                  1998C Excise Tax Improvement Bonds                   1,280,037
                                                                $     25,776,612



                                                39
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

Portfolio No. 2       Water and Sewer Construction Portfolio, $49,311,800

This portfolio includes investments of the Water and Sewer Enterprise Fund. At September 30,
2011, $27,886,330 was deposited in Wells Fargo Money Market Account and $21,425,470 in
Florida Municipal Investment Trust. There was no interest receivable on this portfolio at September
30, 2011.

Portfolio No. 3       General Obligation Capital Projects Portfolio, $34,646,169

The General Obligation Bonds, Series 2011A and Series 2011B, proceeds may be invested by the
City in such investments as are permitted by applicable law. These proceeds are in Regions Bank,
Cash Money Market Account, $14,511,939 and Fidelity Institutional Government Money Market
Fund, $20,134,230. No interest receivable on this portfolio existed September 30, 2011.

Portfolio No. 4       Cemetery Perpetual Care Fund, $18,582,267

Investments permitted by this fund’s investment policy include U. S. government securities, U.S.
government guaranteed obligations, federal instrumentalities, commercial paper, bankers
acceptances, corporate bonds or notes, state or local government taxable or tax-exempt debt,
intergovernmental investment pools, common and preferred stocks from domestic and foreign
corporations, repurchase agreements composed of permitted instruments, real estate and real
estate securities, and high yield bond mutual funds, and other mutual funds and co-mingled
Common Trust Funds investing in permitted instruments, including money-market funds.

As of September 30, 2011 this portfolio consists of investments in money market funds, corporate
obligations, common stock and preferred stock. Interest receivable on this portfolio at September
30, 2011 was $80,749.

Portfolio No. 5       Police and Fire Retirement System Fund, $421,444,459

Investments permitted by this fund’s investment policy include equity securities and fixed income
securities including cash, U.S. government agency securities, federal instrumentalities, corporate
obligations, government national mortgage association loans, U.S. government agency
collateralized mortgage-backed securities, debentures, preferred stocks, commercial paper,
certificates of deposits and other such instruments deemed prudent by the investment manager.
Also permitted are other co-mingled vehicles invested in permitted investments.

As of September 30, 2011 investments of this portfolio include U.S. government securities, U.S.
government agency securities, federal instrumentalities, mutual funds, corporate obligations,
municipal bonds, real estate, venture capital and partnerships and common and preferred stock.
Interest receivable on this portfolio at September 30, 2011 was $1,568,330.

Portfolio No. 6       General Employees’ Retirement System Fund, $306,839,653

Investments permitted by this fund’s investment policy include U.S. government securities, U.S.
government agency securities, federal instrumentalities, common and preferred stocks from
domestic and foreign corporations, repurchase agreements, commercial paper, corporate
obligations, banker’s acceptances, state or local government taxable or tax exempt debt, real
estate and real estate securities, money market funds invested in permitted securities and
intergovernmental investment pools.



                                                40
                               CITY OF FORT LAUDERDALE, FLORIDA
                              NOTES TO THE FINANCIAL STATEMENTS
                                       SEPTEMBER 30, 2011

As of September 30, 2011 this portfolio consists of investments in U.S. government securities, U.S.
government agency securities, federal instrumentalities, money market funds, corporate
obligations, common and preferred stock and real estate. Interest receivable on this portfolio at
September 30, 2011 was $927,730.

Interest Rate Risk

Interest rate risk is the possibility that interest rates will rise and reduce the fair value of an
investment. The City manages its portfolios’ exposures to declines in fair value due to rising
interest rates by limiting individual investments to maturities of ten (10) years or less from the date
of purchase. Also, the overall “weighted average maturity” shall be less than three (3) years. The
total weighted average maturity for portfolio no. 1 is 2.38 years. The other portfolios use either the
“duration” method or the “weighted average maturity” as measurements of interest rate risk. The
following table illustrates the interest rate risk for debt investments:



                        Portfolio No. 1                                       Weighted
              Surplus Funds Pooled Investments             Fair Value      Average Maturity
        U.S. Treasury Securities                       $   20,962,373           2.41
        U.S. Government Agency
           US Dept of Housing & Urban Development           1,131,614            2.98
        Federal Instrumentalities
          Federal Farm Credit Bank                          5,798,190            1.28
          Federal Home Loan Bank                            5,559,896            2.51
          Federal Home Loan Mortgage Company               13,892,599            2.34
          Federal National Mortgage Association            12,772,332            2.07
          Mortgage Backed Securities Pass-Through             964,518            4.74
        Collateralized Mortgage Obligations                 3,487,508            6.70
        Asset Backed Securities                             3,675,856            2.77
        U.S. Government Supported Corporate Debt            4,978,138            2.11
        Municipal Bonds                                     4,207,613            2.45
        Commercial Paper                                    1,409,517            0.22
        Corporate Obligations                              16,673,049            2.05

                        Portfolio No. 4
               Cemetery Perpetual Care Fund                Fair Value          Duration
        Corporate Obligations                          $    5,006,666           8.50

                          Portfolio No 5                                      Weighted
            Police and Fire Retirement System Fund         Fair Value      Average Maturity
        Agincourt Bond Fund (aggregate) *              $   83,134,716           13.73
        Atlanta Capital (aggregate)                        25,777,228           4.10
        Boyd (aggregate)                                   32,955,340           4.29

                       Portfolio No. 6                                        Weighted
         General Employees' Retirement System Fund         Fair Value      Average Maturity
        Debt Investment (aggregate) **                 $   64,728,501           2.59

        *The aggregate debt investments of Portfolios No. 5 and No. 6 include U.S. Treasury
        Securities, U.S. Government Agency Securities, Mutual Funds and Corporate Obligations.
                                                  41
                               CITY OF FORT LAUDERDALE, FLORIDA
                              NOTES TO THE FINANCIAL STATEMENTS
                                       SEPTEMBER 30, 2011

Credit Risk

GASB Statement No. 40 requires that governments provide information about the credit risk
associated with their investments by disclosing the credit quality ratings of investments in debt
securities as described by nationally recognized statistical rating organizations. Unless there is
information to the contrary, obligations of the U.S. government or obligations explicitly guaranteed
by the U.S. government are not considered to have credit risk and do not require disclosure of
credit quality.

Portfolio No. 1        Surplus Funds Pooled Investments

The City investment policy provides for the following investments which are limited to credit quality
ratings from nationally recognized rating agencies as follows:

Corporate Notes
Corporate notes issued by corporations organized and operating within the United States or by
depository institutions licensed by the United States that have a long term debt rating, at the time
of purchase, at a minimum “Aa” by Moody’s Investor Service and a minimum long term debt rating
of “AA” by Standard & Poor’s. As of September 30, 2011, $16,673,049 of the City’s investments
was in corporate issues. These issues met or exceeded the minimum rating requirements at the
time of purchase.

Registered Investment Companies (Money Market Funds)
The policy requires money market funds, other than funds which are invested 100% in U.S.
treasury securities, be rated “AAAm.” The City portfolios included Morgan Stanley Government
Portfolio Institutional Class Fund, $22,469,758; Goldman Sachs Financial Government Institutional
Fund, $20,022,923; and federated government obligation funds, $20,012,936. As of September 11,
2011, all three funds were rated “AAAm.”

Federal Instrumentalities
Although the City’s investment policy states no rating requirement for federal instrumentalities, all
investments of this type were rated AA+ by Standard & Poor’s or Aaa by Moody’s Investor Service.
This portfolio held $38,023,016 in this type of investment.

Portfolio No. 2        Water and Sewer Construction Portfolio

Investments in this portfolio are not required to have a rating per the City’s investment policy.

Portfolio No. 3        General Obligation Capital Projects Portfolio

This portfolio has $20,134,230 invested in Fidelity Institutional Government Money Market Fund,
which has a AAAm rating.




                                                  42
                                CITY OF FORT LAUDERDALE, FLORIDA
                               NOTES TO THE FINANCIAL STATEMENTS
                                        SEPTEMBER 30, 2011

Portfolio No. 4         Cemetery Perpetual Care Fund

This portfolio’s investment policy requires investments in corporate bonds or notes to be rated A or
better by a nationally recognized rating service. All of these investments met the policies
requirement at September 30, 2011.


Portfolio No. 5         Police & Fire Retirement System Fund

As permitted by GASB Statement No. 40, interest rate risk and credit risk are managed in this
portfolio in the aggregate by asset class. The portfolio includes one investment grade core bond
fund, Agincourt.

Portfolio No. 6         General Employees’ Retirement System Fund

This portfolio’s investment policy requires investments in corporate bonds or notes to be rated A or
better by a nationally recognized rating service. All of these investments met this requirement at
September 30, 2011.

Custodial Credit Risk

The custodial credit risk for investments is the risk that, in the event of the failure of the counter-
party to the transaction, a government may not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party.

The Wachovia Money Market Account is covered under Section 280.02, Florida Statutes, as a
deposit in a State Qualified Public Depository. All other portfolio investments were held with third-
party custodians as required by the their respective investment policies.

Concentration of Credit Risk

GASB Statement No. 40 requires disclosure of investments in any one issuer that represent five
percent or more of total investments, excluding investments issued or explicitly guaranteed by the
U.S. government, investments in mutual funds, external investment pools, and other pooled
investments. Per this disclosure requirement, none of city’s investments were with any one single
issuer that represents 5% or more of all of the City’s portfolios which total $434,918,597.

Composition of Portfolios

Each of the City’s investment policies establish limits on portfolio composition, both by investment
type and by issuer. As of September 30, 2011, the compositions of the portfolios consisted of the
following:




                                                  43
                                        CITY OF FORT LAUDERDALE, FLORIDA
                                       NOTES TO THE FINANCIAL STATEMENTS
                                                SEPTEMBER 30, 2011

                     Portfolio No. 1                                             Percent of      Maximum           Maximum
                       Investments                                  Amount        Portfolio       Portfolio        per Issuer
U.S. Agency Securities                                    $
  US Dept of Housing & Urban Development                             1,131,614     0.32%             50.00%            25.00%
Federal Instrumentalities                                                                           100.00%
  Federal Farm Credit Bank                                           5,798,190     1.65%                               25.00%
  Federal Home Loan Bank                                             5,559,896     1.58%                               25.00%
  Federal Home Loan Mortgage Company                                13,892,599     3.96%                               25.00%
  Federal National Mortgage Association                             12,772,332     3.64%                               25.00%
Mortgage Backed Securities Pass-Through*                              964,518      0.27%                               25.00%
Collateralized Mortgage Obligations                                  3,487,508     0.99%                               25.00%
Asset Backed Securities*                                             3,675,856     1.05%             25.00%             5.00%
U.S Government Supported Corporate Debt                              4,978,138     1.42%             50.00%            25.00%
Municipal Bonds                                                      4,207,613     1.20%             25.00%            25.00%
Commercial Paper                                                     1,409,518     0.40%             25.00%             5.00%
Corporate Obligations                                            16,673,049        4.75%               25.00%           5.00%
*Mortgage Backed Securities are a subcomponent of Instrumentalities; Asset Backed Securities are a subcomponent 
 of Corporate Obligations. 
 
                      Portfolio No. 4                                            Percent of         Maximum        Maximum
            Cemetery Perpetual Care Fund                            Amount        Portfolio       Portfolio        Per Issuer
Fixed Income Securities                                  $
   Corporate Obligations                                             5,006,666    26.94%             50.00%            -


                     Portfolio No. 5                                             Percent of      Maximum           Maximum
       Police and Fire Retirement System Fund                       Amount        Portfolio       Portfolio        Per Issuer
Fixed Income Securities                                    $                                       30.00%               5.00%
U.S. Treasury Securities                                            26,183,598     6.21%
   Federal Instrumentalities:
      Federal National Mortgage Assoc                               28,802,359     6.83%
      Federal Home Loan Mortgage Corp                               14,997,499     3.56%
      Federal Home Loan Banks                                         818,469      0.19%
Corporate Obligation                                                58,600,924    13.90%
Other Bonds                                                         12,464,435     2.96%

                     Portfolio No. 6                                             Percent of      Maximum           Maximum
    General Employees' Retirement System Fund                       Amount        Portfolio       Portfolio        Per Issuer
Fixed Income Securities                                    $                                       25.00%              -
U.S. Treasury Securities                                              778,479      0.25%
   Federal Instrumentalities:
      Federal Home Loan Mortgage Corp                               10,412,185     3.39%
      Federal National Mortgage Assoc                               19,613,671     6.39%
   Corporate Obligations                                            33,924,166    11.06%




                                                               44
                                       CITY OF FORT LAUDERDALE, FLORIDA
                                      NOTES TO THE FINANCIAL STATEMENTS
                                               SEPTEMBER 30, 2011

Foreign Currency Risk

GASB Statement No. 40 requires governments to disclose deposits or investments exposed to
foreign currency risk, the risk that changes in exchange rates will adversely affect the fair value of
an investment or a deposit. None of the portfolios have exposure to foreign currency risk. All
investments are in US dollars.

(5) PROPERTY TAXES:

The City’s property tax is levied, becomes a lien on real and personal property located in the City
and is recorded as a receivable on November 1 of each year based upon the assessed value listed
as of the prior January 1. The Broward County Property Appraiser establishes assessed values.
The assessed value at January 1, 2010, upon which the 2010-11 levy was based, was
approximately $24.6 billion.

The City is permitted by state law to levy taxes up to 10 mills of assessed valuation for General
Fund operations exclusive of voted debt levies. Taxes levied for the General Fund for the 2010-11
fiscal year were 4.1193 mills for operations and 0.2173 for debt service.

All taxes are due from property holders on March 31, become delinquent on April 1 and become
subject to the issuance of tax sale certificates on June 1. Current tax collections for the year
ended September 30, 2011 were approximately 98.4% of the total tax levy.

(6) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:

Individual inter-fund receivable and payable balances at September 30, 2011 follow:

                                                                                Advances      Advances
                                                   Due From       Due To          From           To
                                                  Other Funds   Other Funds    Other Funds   Other Funds
Governmental Funds
General Fund                                  $    3,591,851               -            -       25,000
Non-Major Governmental Funds
     Intergovernmental Revenue Fund                        -     3,409,448              -             -
     Community Redevelopment Agency Fund                   -               -      25,000              -
     General Capital Projects Fund                  205,933                -            -             -
     General Obligation Construction 2005
      and 2011A Fund                                       -      182,403               -             -
     Perpetual Care Fund                                   -      205,933               -             -
                                                   3,797,784     3,797,784        25,000        25,000
Enterprise Funds
Water and Sewer Fund                               2,941,893               -            -             -
                                                   2,941,893               -            -             -
Fiduciary Funds
General Employees Pension Fund                             -      471,429               -             -
Police and Fire Pension Fund                               -     2,470,464              -             -
                                                           -     2,941,893              -             -
                                              $    6,739,677     6,739,677        25,000        25,000


The payables to the Water and Sewer Fund from the pension trust funds totaling $2,941,893 were
for operating expenses of the funds paid by the City that were reimbursed from the pension trusts


                                                          45
                                     CITY OF FORT LAUDERDALE, FLORIDA
                                    NOTES TO THE FINANCIAL STATEMENTS
                                             SEPTEMBER 30, 2011

in October 2011. The amount due to the General Capital Projects Fund from the Perpetual Care
Fund is for facilities being constructed and will be liquidated, as cash is needed to meet contractor
obligations. The Intergovernmental Revenue Fund payables to the General Fund totaling
$3,409,448 represent short-term borrowings that will be repaid using grant receipts. The General
Obligation Construction 2005 and 2011A Fund amount due to the General Fund is for short-term
borrowings until a drawdown is made from the 2011A General Obligation Bond proceeds. The
$25,000 advance to the Community Redevelopment Agency Fund from the General Fund
represents a short-term loan for the creation of a new CRA Plan for the New Middle River-South
Middle River-Sunrise Boulevard CRA area.

The composition of inter-fund transfers for the year ended September 30, 2011 was as follows:

                                                                             Transfers In
                                                                           Non-major Governmental Funds

                                                                 Special      Debt            Capital
Transfers Out                                  General          Revenue      Service          Projects       Total
Governmental Funds
     General Fund                          $          -        4,991,952   3,167,048         1,158,478     9,317,478
     Non-Major Governmental Funds
          Special Revenue Funds                       -                -   1,604,113        49,772,643    51,376,756
          Capital Projects Funds               685,719          841,310            -                 -     1,527,029
          Permanent Fund                              -                -            -          200,000       200,000
                                               685,719          841,310    1,604,113        49,972,643    53,103,785
Enterprise Funds
     Water and Sewer Fund                      283,359                 -            -               -       283,359
     Non-Major Enterprise Funds                230,573          553,968             -          15,000       799,541
                                               513,932          553,968             -          15,000      1,082,900
Internal Service Funds                         320,161                -       29,848                -        350,009
                                           $ 1,519,812         6,387,230   4,801,009        51,146,121    63,854,172




The City transfers funds from the General Fund and the Community Redevelopment Agency
special revenue fund to the debt service funds to meet debt service requirements. Funds are
provided from the corresponding revenues pledged for those purposes. Transfers from the
General Fund to the Community Redevelopment Agency special revenue fund represent tax
increment revenues derived from appreciation of the tax bases in the redevelopment areas. The
transfers from the General Fund to the special revenue fund types also includes $509,726 of
General Fund balance that applied to Building Services Department permits, technology and
maintenance certifications that are now being accounted for in a separate “Building” special
revenue fund. Funding for non-debt financed governmental capital projects is provided through
transfers from the General Fund. Other transfers to the capital projects funds provide funding for
specific projects within the capital improvement program. Of the $49,772,643 transfer to the
capital projects funds from the special revenue funds $49,574,344 represents the capital projects
portion of the CRA’s special revenue fund that was reclassified into a capital projects fund,
$30,089,245 applied to the Central Beach area and $19,485,099 applied to the NW Progresso
area.




                                                          46
                                     CITY OF FORT LAUDERDALE, FLORIDA
                                    NOTES TO THE FINANCIAL STATEMENTS
                                             SEPTEMBER 30, 2011

(7) CAPITAL ASSETS:

Capital Asset activity for governmental and business-type activities for the year ended September
30, 2011 was as follows:

                                                        Beginning                                  Ending
                                                         Balance      Additions     Deletions      Balance
Governmental activities:
Capital assets not being depreciated
     Land                                           $    63,167,751     1,297,964             -     64,465,715
     Construction in progress                            24,360,637    19,089,698    19,059,609     24,390,726
     Total capital assets not being depreciated          87,528,388    20,387,662    19,059,609     88,856,441
Capital assets being depreciated
     Buildings                                          137,627,724     8,218,736             -    145,846,460
     Improvements                                        82,654,926     4,149,342             -     86,804,268
     Infrastructure                                      15,032,727     4,818,970             -     19,851,697
     Equipment                                          154,885,841     5,529,549     5,230,778    155,184,612
     Total capital assets being depreciated             390,201,218    22,716,597     5,230,778    407,687,037
Less accumulated depreciation for:
     Buildings                                           44,817,838     3,255,064             -     48,072,902
     Improvements                                        46,675,695     3,136,521             -     49,812,216
     Infrastructure                                       3,248,829       489,215             -      3,738,044
     Equipment                                          116,611,416    11,060,675     4,444,021    123,228,070
     Total accumulated depreciation                     211,353,778    17,941,475     4,444,021    224,851,232
     Total capital assets being depreciated, net        178,847,440     4,775,122       786,757    182,835,805
     Governmental activities capital assets, net    $   266,375,828    25,162,784    19,846,366    271,692,246


                                                        Beginning                                  Ending
                                                         Balance      Additions     Deletions      Balance
Business-type activities:
Capital assets not being depreciated
     Land                                           $    31,485,732       549,803             -     32,035,535
     Construction in progress                           169,192,124    45,789,255   143,390,779     71,590,600
     Total capital assets not being depreciated         200,677,856    46,339,058   143,390,779    103,626,135
Capital assets being depreciated
     Buildings                                          243,124,601    13,825,855        71,300     256,879,156
     Improvements                                       666,605,060   128,692,352     3,126,266     792,171,146
     Equipment                                           42,053,907     1,291,950        19,504      43,326,353
     Total capital assets being depreciated             951,783,568   143,810,157     3,217,070   1,092,376,655
Less accumulated depreciation for:
     Buildings                                           79,638,480     5,151,381        37,076     84,752,785
     Improvements                                       145,535,848    17,022,025     1,803,277    160,754,596
     Equipment                                           33,482,826     1,945,207        19,497     35,408,536
     Total accumulated depreciation                     258,657,154    24,118,613     1,859,850    280,915,917
     Total capital assets being depreciated, net        693,126,414   119,691,544     1,357,220    811,460,738
     Business-type activities capital assets, net   $   893,804,270   166,030,602   144,747,999    915,086,873


Depreciation expense, including the amortization of assets held under capital leases, was charged
to the various functions of the City as follows:



                                                        47
                                 CITY OF FORT LAUDERDALE, FLORIDA
                                NOTES TO THE FINANCIAL STATEMENTS
                                         SEPTEMBER 30, 2011

Governmental Activities
General Government                                                           $   1,194,315
Public Safety                                                                    3,721,547
Physical Environment                                                               120,877
Transportation                                                                     644,971
Economic Environment                                                                29,852
Culture and Recreation                                                           5,004,789
Capital Assets held in the City's internal service funds are charged
   to general government                                                         7,225,124

                                                                             $ 17,941,475

Business-type activities
Water and Sewer                                                              $ 20,029,435
Sanitation                                                                        146,152
Parking System                                                                  1,109,506
Airport                                                                         2,152,193
Stormwater                                                                        681,327

                                                                             $ 24,118,613

This report includes all general infrastructure acquired or constructed since October 1, 1979 in
accordance with GASB Statement No. 34, “Basic Financial Statements – and Management’s
Discussion and Analysis – for State and Local Governments.”

The capital asset values include in-house built software and city acquired easements in
accordance with GASB Statement No. 51, “Accounting and Financial Reporting for Intangible
Assets”.

(8) INVESTMENT IN JOINT VENTURE:

The City has agreements with the Performing Arts Center Authority (PACA) and the Downtown
Development Authority (DDA) for the operation of a 950 space-parking garage in the Arts and
Science District of the City. The City, as operating agent, has full and exclusive responsibility for
operation and maintenance of the garage, which is being accounted for as a joint venture in the
Parking System Fund using the equity method of accounting.

The City collects all revenues and pays all operating expenses for the garage and determines the
allocation to each of the participants monthly. The increase in Net Assets for the year of $899,517
was derived exclusively from operations. The equity interests of the City, the PACA and the DDA
totaled $885,919, $1,110,231 and $607,341, respectively at September 30, 2011. Separate
financial statements for the joint venture are available from the City’s Finance Department.

(9) RISK MANAGEMENT:

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees and natural disasters. The City Insurance
Fund is used to account for and finance both uninsured and insured risks of loss. Coverage is



                                                      48
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

provided for workers’ compensation, employment practices, general liability, automobile liability,
police professional liability, public officials and certain medical benefits. The City has obtained
commercial insurance for workers’ compensation claims in excess of $1.5 million for employees
with statutory limits per occurrence. Property insurance has been purchased for City structures
with a standard deductible of $50,000, a windstorm deductible of $5,000,000 per loss on both the
utility and non-utility property programs, and a flood deductible of $500,000 or $50,000 per
location, depending on the location. Commercial, specific, stop-loss insurance is also purchased
for medical benefits claims in excess of $225,000. The City also has coverage for employment
practices liability with a $150,000 deductible, public officials liability coverage with a $100,000
deductible and a $4 million combined coverage limit for both policies. Settlements have not
exceeded the retention for each of the past seven fiscal years.

All operating funds of the City participate in the program and make payments to the fund based on
estimates of the amounts needed to pay prior and current claims and to provide fund equity for
catastrophic losses. The estimated insurance claims payable at September 30, 2011 of
$33,686,734 (discounted at 3.5%) is based on the requirements of GASB Statement No. 10,
“Accounting and Financial Reporting for Risk Financing and Related Insurance Issues” as
amended by GASB Statement No. 30 “Risk Financing Omnibus”, which requires that claims
liabilities be based upon the estimated ultimate costs of settling the claims. The liability also
includes incurred but not reported claims developed through actuarial analysis of loss history.
Changes in the balance of estimated insurance claims payable for the fiscal years ended
September 30, 2010 and 2011 follow:

                                                       Medical
                                                       Benefits        Other           Total

Balance September 30, 2009                             1,770,331     32,533,964     34,304,295

New Claims and Changes in Estimates                    20,507,739     5,579,871      26,087,610
Claim Payments                                        (19,969,219)   (6,355,075)    (26,324,294)

Balance September 30, 2010                             2,308,851     31,758,760     34,067,611

New Claims and Changes in Estimates                    19,569,258     6,492,858      26,062,116
Claim Payments                                        (19,485,070)   (6,957,923)    (26,442,993)

Balance September 30, 2011                        $    2,393,039     31,293,695     33,686,734

(10) CAPITAL LEASE OBLIGATIONS:
In June 2001, the City entered into a master lease agreement with SunTrust Bank as lessee for
financing the acquisition of equipment on an as needed basis. In May 2005 the City entered into a
$2,854,000 seven-year lease agreement for fire apparatus under the master lease. The lease
carries an interest rate of 4.25% and provides for semi-annual principal and interest payments.

In September 2009 the City entered into a ten-year lease agreement with Capital One for fire
apparatus for $7,969,602. The lease carries an interest rate of 4.87% with annual payments of
principal and interest. Both leases qualify as capital leases for accounting purposes and, therefore
have been recorded at the present value of the future lease payments as of their inception dates in




                                                49
                                CITY OF FORT LAUDERDALE, FLORIDA
                               NOTES TO THE FINANCIAL STATEMENTS
                                        SEPTEMBER 30, 2011

the Vehicle Rental Fund. The capital assets and depreciation thereon acquired under theses
leases are also accounted for in the Vehicle Rental Fund.

The future (minimum) lease obligations and the net present value of capital lease payments as of
September 30, 2011 are as follows:

         Year Ending
        September 30
              2012                                                      $   1,505,425
              2013                                                          1,022,419
              2014                                                          1,022,419
              2015                                                          1,022,419
              2016                                                          1,022,419
          Later Years                                                       3,067,257
       Total Lease Payments                                                 8,662,358
       Less: Amount of Interest                                           (1,551,474)
       Present Value of Lease Payments                                  $ 7,110,884


(11) LONG-TERM DEBT:

Bonds outstanding at September 30, 2011 mature in varying amounts during succeeding fiscal
years through 2041. Interest rates on fixed rate debt follow: 2.0% to 4.5% on general obligation
bonds, 2.43% to 2.98% on special obligation loans, 3.0% to 5.0% on water and sewer, 4.25% on
tax increment revenue bonds and 2.1% to 2.9% on State revolving fund loans. The average
variable rate on tax increment revenue bonds is 1.14%. The variable rate for the Tax Increment
Revenues Bonds is set at 77% of the 1 month LIBOR rate plus 83 basis points for the Series
2004A bonds and 77% of the 1 month LIBOR rate plus 106 basis points for the Series 2004B
bonds.

The annual requirements to pay principal and interest on the bonds, notes and loans outstanding
at September 30, 2011 (in thousands) follow and include estimated amounts for interest on the
variable rate debt:

                                                     Governmental Activities
                              General
    Year Ending          Obligation Bonds             Tax Increment Bonds          Special Obligation Loans
   September 30      Principal        Interest       Principal      Interest       Principal        Interest
       2012     $         17,645            3,439           1,382            167          2,429              726
       2013                3,125            1,720         12,461             135          3,215              754
       2014                3,200            1,647              -              -           2,740              672
       2015                3,275            1,571              -              -           2,811              601
       2016                3,385            1,472              -              -           2,883              528
     2017-2021              7,835           6,336              -              -         13,087            1,510
     2022-2026              6,335           5,277              -              -           3,655              319
     2027-2031              7,690           3,928              -              -             588                9
     2032-2036             8,330            2,127              -              -              -               -
     2037-2041             5,080               662             -              -              -               -
       Total    $         65,900           28,179         13,843             302        31,408            5,119




                                                       50
                               CITY OF FORT LAUDERDALE, FLORIDA
                              NOTES TO THE FINANCIAL STATEMENTS
                                       SEPTEMBER 30, 2011

                                                 Business-Type Activities
                                        Water and Sewer             State Revolving
                   Year Ending           Revenue Bonds                Fund Loans
                  September 30       Principal     Interest     Principal      Interest
                      2012     $           9,100       17,578         3,445         2,029
                      2013                 9,420       17,259         4,641         1,925
                      2014                 9,770       16,914         4,753         1,812
                      2015               10,150        16,551         4,869         1,697
                      2016               10,555        16,161         4,986         1,579
                    2017-2021            59,515        73,987       26,808          6,020
                    2022-2026            73,890        59,377       29,502          2,601
                    2027-2031            93,185        40,107         5,689           134
                    2032-2036           106,390        15,529             -             -
                    2037-2041              9,830          559             -             -
                      Total    $        391,805       274,022       84,693         17,797


General obligation bonds are secured by the full faith and credit of the City. Tax increment
revenue bonds are secured by a pledge of the tax increment revenues generated within the City’s
community redevelopment areas. The special obligation loans are secured by a pledge of non-ad
valorem tax revenues and a covenant to budget and appropriate.

The bond resolutions of the various revenue bond issues require that sufficient funds be available
to meet the largest debt service requirement in any ensuing fiscal year. At September 30, 2011,
funds available met the debt service requirements for revenue bonds.

Periodically, the City will issue conduit debt to fulfill a public need or purpose. These obligations
are not reported as liabilities in the City’s financial statements and the City is not obligated in any
manner for repayment of the debt. As of September 30, 2011, the City had no conduit debt
outstanding.

In order to take advantage of low interest rates, the City is participating in the State of Florida
revolving loan program to finance sewer system capital improvements and had five loans
outstanding as of September 30, 2011. The loan program operates on a reimbursement basis.
When proceeds are issued, the loan accrues interest based upon the rate approved by the State at
the date of closing. The liability due to the State is the original loan amount plus accrued interest
until the date repayments commence, which is in approximately three years from date of issue.
The first loan authorized in fiscal year 2003 was for $8,882,659, carries an interest rate of 2.9%
and provides for semi-annual principal and interest payments beginning in May 2007. As of
September 30, 2011, the City’s liability for this loan totaled $7,330,263.

On June 29, 2004 a second loan agreement was entered into for $20,350,400, carrying an interest
rate of 2.71% and providing for semi-annual principal and interest payments beginning in May
2006. The loan principal was increased to $22,407,342 on January 3, 2005. The loan principal
was decreased to $22,244,216 on August 17, 2010. As of September 30, 2011, the City’s liability
for this loan totaled $17,283,199.

On May 5, 2005 the City entered into its third loan agreement for $7,256,416, which carries an
interest rate of 2.19% and provides for semi-annual principal and interest payments beginning in
November 2006. The loan principal was increased to $19,116,208 on August 23, 2005. The loan



                                                  51
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

principal was decreased to $17,384,060 on April 30, 2010. As of September 30, 2011, the City’s
liability for this loan totaled $13,316,559.

On March 3, 2006 the City entered into its fourth loan agreement for $20,393,500, which carries an
interest rate of 2.1% and provides for semi-annual principal and interest payments beginning in
May 2008. The loan principal was increased to $40,619,300 on October 6, 2006. The additional
principal amount of $20,225,800 carried an interest rate of 2.24%. On February 15, 2008, the loan
principal was decreased to $35,606,400, with no effect on the interest rate. The loan principal was
increased to $45,334,292 in March 2009. The addition carries an interest rate of 2.65%. The loan
principal was decreased to $44,902,893 on September 20, 2011. As of September 30, 2011, the
City’s liability for this loan totaled $38,177,891.

On February 11, 2008 the City entered into its fifth loan agreement for $10,032,200, which carries
an interest rate of 2.24% and provides for semi-annual principal and interest payments beginning
in November 2008. The loan principal was decreased to $10,000,000 on September 20, 2011. As
of September 30, 2011, the City’s liability for this loan totaled $8,585,035.

On October 6, 2009 the City Commission declared its intent to issue $20 million previously
authorized General Obligation Bonds to upgrade existing and construct new fire-rescue facilities.

On June 10, 2010 the City sold $82,300,000 of Water and Sewer Revenue Bonds, Series 2010.
The proceeds are being used to finance certain improvements and upgrades to the City’s water
and sewer system. The issue provides for semi-annual principal and interest payments with
interest rates ranging from 3% to 5% and a final maturity on September 1, 2038.

On October 29, 2010 the City issued a $14,015,000 Special Obligation Refunding Bond, Series
2010A and a $10,095,000 Special Obligation Refunding Bond, Series 2010B. The Series 2010A
was the refunding of Special Obligation Refunding Bond, Series 2008A which had an outstanding
principal amount of $13,971,127. This refinancing reduced the interest rate from 5.14% to 2.43%.
and resulted in a gross calculated savings of $2,130,503 or a Net Present Value Savings of
$1,897,896. The September 1, 2020 maturity date remained unchanged.

The Series 2010B proceeds were used to reissue the City’s Special Obligation Note, Series 2008B
which had a principal balance of $10,051,200. The issued debt in the amount of $10,095,000, was
for both the outstanding principal plus the cost of issuance. The Series 2010B provides for semi-
annual payments at a rate of 2.66%, maturing on June 1, 2022.

On September 9, 2011 the City issued Special Obligation Note, Series A for $7,218,000 and
Special Obligation Note, Series B for $2,546,000. The proceeds for Series A are being used to
finance certain governmental capital improvements. Series B proceeds are financing the 800MHZ
microwave equipment. The Series A note provides for semi-annual interest payments at a rate of
2.98% and annual principal payments until maturity in 2027. The Series B note provides for semi-
annual interest payments at a rate of 2.45% and annual principal payments until maturity in 2019.

On September 28, 2011 the City issued General Obligation Bonds, Series 2011A for $20,000,000
and General Obligation Refunding Bonds, Series 2011B for $13,980,000. The proceeds for Series
A are financing upgrades to existing fire rescue facilities and construction of new facilities. Series
B proceeds are being used to refund the City’s General Obligation Refunding Bonds, Series 2002.




                                                 52
                                       CITY OF FORT LAUDERDALE, FLORIDA
                                      NOTES TO THE FINANCIAL STATEMENTS
                                               SEPTEMBER 30, 2011

The Series A bonds provide for semi-annual interest payments at an average rate of 3.454% and
annual principal payments until maturity in 2041. The Series B bonds provide for semi-annual
interest payments at an average rate of 2.583% and semi-annual principal payments until maturity
in 2017.

Following is a summary of the changes in the City’s long-term liabilities for the fiscal year ended
September 30, 2011:

                                              Beginning                                      Ending      Due Within
                                               Balance      Additions       Reductions       Balance     One Year
Governmental Activities:
General Obligation Bonds                  $   34,465,000    33,980,000       (2,545,000)    65,900,000   17,645,000
Tax Increment Bonds                           15,120,000                -    (1,277,000)    13,843,000    1,382,000
Special Obligation Loans                      24,022,327    33,874,000      (26,487,927)    31,408,400    2,429,200
Unamortized Bond Premiums and Discounts        (609,527)        1,063,156      139,125        592,754             -
Lease Purchase Agreements                      8,425,472                -    (1,314,588)     7,110,884    1,166,812
Estimated Insurance Claims Payable            34,067,611    26,062,116      (26,442,993)    33,686,734   10,178,884
Compensated Absences                          23,902,883    16,450,181      (14,825,715)    25,527,349    4,739,420

     Total Governmental Activities        $ 139,393,766    111,429,453      (72,754,098)   178,069,121   37,541,316


                                              Beginning                                      Ending      Due Within
                                               Balance      Additions       Reductions       Balance      One Year
Business-Type Activities:
Revenue Bonds                             $ 400,610,000                 -    (8,805,000)   391,805,000    9,100,000
State Revolving Fund Loans                    89,192,744                -    (4,499,797)    84,692,947    3,445,190
Unamortized Bond Premiums and Discounts        3,771,012                -     (204,147)      3,566,865            -
Land-fill Post Closure Costs                   3,454,755                -    (2,403,919)     1,050,836      31,465
Compensated Absences                           4,189,273        3,159,611    (2,842,199)     4,506,685     939,511

     Total Business-Type Activities       $ 501,217,784         3,159,611   (18,755,062)   485,622,333   13,516,166



Internal service funds predominantly serve the governmental funds. Accordingly, their long-term
liabilities totaling $41.1 million are included as part of the above totals for governmental activities.
Also, for the governmental activities, compensated absences are generally liquidated by the
General Fund.

(12) ESTIMATED LANDFILL CLOSURE COSTS:

The Wingate landfill and incinerator was an active disposal site from 1954 to 1978. In 1990, the
site was designated by the Environmental Protection Agency (EPA) as a superfund site requiring
the City to take remedial action. Based on the results of a 1994 Remedial Investigation and
Feasibility Study, the EPA agreed to various remedies including a single layer cap in 1996 in a final
Record of Decision at an estimated remediation cost of $20,500,000, which was recognized
as a liability in the Sanitation Fund. In 1998, the City entered into an agreement with the
Potentially Responsible Parties (PRPs), know as the Wingate Superfund Group, to oversee
compliance with a 1998 Consent Decree between the City, the EPA and the PRP’s. As a result of
the agreement, the City reduced its estimated remediation liability to $10,000,000.



                                                           53
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

The consent decree provided for payment of expenses associated with the remediation, promoted
cost effective response actions, allocated management and financial responsibilities and resolved
claims for cost recovery between the parties. The consent decree was validated December 28,
1999, allowing site remediation to commence. The agreement with the Wingate Superfund Group
created a trust fund for collection and disbursement of funds for the remediation and limited the
City’s share of remediation costs to $8,325,000, excluding ancillary costs. The Second Five-Year
Review Report was issued by the United States Environmental Protection Agency, in July 2011.
Monitoring data suggest that cleanup levels are being achieved and O&M procedures are currently
maintaining the effectiveness of the remedy, The remedy currently protects human health and the
environment in the short term because the landfill cap construction is complete and the required
institutional controls (ground water and land use restrictions) are in place., Based upon a favorable
USEPA report reducing the amount of required monitoring the liability was reduced by $2,368,781.
As of September 30, 2011, the liability is $1,050,836 to provide for estimated post closure care
costs.

(13) FUND BALANCES:

In accordance with the requirements of Governmental Accounting Standards Board Statement No.
54, “Fund Balance Reporting and Governmental Fund Type Definitions”, the City classifies
governmental fund balances as follows:

   (A)     Non-spendable - includes fund balance amounts that cannot be spent because they are
           either not in spendable form or legal or contractually required to be maintained intact.

   (B)     Restricted – includes fund balance amounts that are constrained to be spent only for
           specific purposes which are externally imposed by creditors, grantors, contributors or
           laws or regulations of other governments; or imposed by law through constitutional
           provisions or enabling legislation.

   (C)     Committed – includes unrestricted fund balance amounts that can only be used for
           specific purposes pursuant to internal constraints imposed by the City’s Code of
           Ordinances which can only be established, modified or rescinded through the passage
           of ordinances by the City Commission, the City’s highest level of decision making
           authority.

   (D)     Assigned – includes unrestricted fund balance amounts that are constrained by the
           City’s intent to be used for specific purposes, but are neither restricted or committed.
           Either the City Commission or the City Manager has the authority to assign amounts to
           a specific purpose.

   (E)     Unassigned – includes the residual fund balance of the General Fund not included in
           the above restricted, committed or assigned categories. It may also include negative
           fund balances of other governmental funds resulting from expenditures for specific
           purposes, which exceeded restricted, committed or assigned amounts available for
           those purposes.

It is the City’s policy to use restricted fund balances before unrestricted funds when both are
available for a specific purpose unless contractual requirements, such as for a specific grant that
requires dollar for dollar spending, prohibit doing so. In addition, the order of use for unrestricted
fund balances available for a specific purpose is committed, then assigned amounts.


                                                 54
                                        CITY OF FORT LAUDERDALE, FLORIDA
                                       NOTES TO THE FINANCIAL STATEMENTS
                                                SEPTEMBER 30, 2011

The City’s formal minimum fund balance policy provides for the maintenance of a General Fund
balance of between 10% and 15% of annual General Fund operating expenditures. Should the
projected or actual fund balance fall below this minimum, a plan will be submitted by the Director of
Finance to the City Manager to restore the minimum balance within a three-year period. Use of the
fund balance below the 10% level is permitted only in an emergency, or in the case of an
unanticipated economic downturn, which causes a material loss of revenues.

The details of individual governmental fund balances by category at September 30, 2011 follow:

                                                           Special          Debt          Capital
                                            General        Revenue        Service         Projects       Permanent       Total
Nonspendable
  Inventories                          $      52,422                 -              -         6,750               -       59,172
  Prepaid Pension Contributions            15,000,000                -              -                -            -    15,000,000
  Advances to Other Funds                     25,000                 -              -                -            -       25,000
  Endowments                                          -              -              -                -   11,265,762    11,265,762
Restricted For
  Debt Service                                        -              -   16,045,899                  -            -    16,045,899
  Inventories                                         -   10,263,427                -                -            -    10,263,427
  Grants and Special Programs                         -     255,654                 -                -            -      255,654
  Community Redevelopment                             -     177,875                 -    44,757,471               -    44,935,346
  Building Code Enforcement                           -    4,495,544                -                -            -     4,495,544
  Law Enforcement                                     -    3,819,919                -                -            -     3,819,919
  Capital Projects                                    -              -              -    46,433,337               -    46,433,337
  Transportation                                      -              -              -       748,373               -      748,373
Committed To
  Grants and Special Programs                464,915                 -              -                -            -      464,915
  Beach Improvements                                  -     149,173                 -                -            -      149,173
  Endowments                                          -              -              -       174,861       7,071,112     7,245,973
Assigned To
  Grants and Special Programs                106,485                 -              -                -            -      106,485
  Community Redevelopment                             -          90                 -                -            -              90
  Law Enforcement                                     -     534,934                 -                -            -      534,934
  Beach Improvements                                  -      18,399                 -                -            -       18,399
  Capital Projects                                    -              -              -    18,380,417               -    18,380,417
  Transportation                                      -              -              -       207,969               -      207,969
  Other Post Employment Benefits            2,000,000                -              -                -            -     2,000,000
  Subsequent Year's Expenditures            8,808,648                -              -                -            -     8,808,648
Unassigned                                 36,615,702                -              -                -            -    36,615,702
                 Total Fund Balances   $ 63,073,172       19,715,015     16,045,899     110,709,178      18,336,874   227,880,138



(14) EMPLOYEE RETIREMENT SYSTEMS:

The City’s pension plans are presented in accordance with GASB Statements No. 25, “Financial
Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans”,
No. 27, “Accounting for Pensions by State and Local Governmental Employers” No. 50, “Pension
Disclosures an Amendment of GASB Statements No. 25 an No. 27”. The objective of these
statements, prepared on the accrual basis of accounting, is to enhance the understandability and
usefulness of pension information included in the financial statements of state and local
governmental employers. Member and City contributions are recognized when due. Benefits and


                                                                55
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

refunds are recognized when due and payable in accordance with the terms of the plans. Plan
investments are reported at fair value. Securities traded on a national or international exchange
are valued at the last reported sales price at current exchange rates. The fair value of real estate
investments is based on independent appraisals.

Defined Benefit Plans - Plan Descriptions and Funding Policies

General Employees Retirement System

The General Employees Retirement System is a single-employer defined benefit plan administered
by an eight-member board of trustees, which covers City employees, except police and firefighters.
Through collective bargaining with the general, supervisory and professional City employees, a
new single-employer defined contribution pension plan was established for Teamster Union
employees hired on or after October 1, 2007, Supervisory Union employees hired on or after
November 7, 2007, and all other Non-Union employees hired on or after February 20, 2008. The
General Employees Retirement System was then closed to new entrants. The City's payroll for
employees covered by the plan applicable to the September 30, 2010 actuarial valuation was
approximately $71,416,400. The total City payroll at that time was approximately $163,414,800.
As of the valuation date, employee membership data related to the pension plan was as follows:

               Retirees and beneficiaries currently receiving
                  benefits                                                   1,212
               Terminated employees entitled to
                  benefits but not yet receiving them                          117
               Fully, partially and non-vested active plan
                  participants                                               1,227
               Participants in DROP                                             32

Under the vesting provisions of the plan, employees are entitled to 100% of normal retirement
benefits after 5 years of service. Members who terminate prior to vesting are entitled to a refund of
employee contributions plus interest at 3% per year. Employees are eligible to retire after 30 years
of service, regardless of age, or at age 55 with 5 years of service. Members who continue in
employment past normal retirement may either accrue larger pensions or freeze their accrued
benefit and enter the Deferred Retirement Option Plan (DROP). Each participant in the DROP has
an account credited with benefits not received plus interest. Participation in the DROP must end
no later than 36 months after normal retirement. Certain employees hired on or after October 1,
1983 electing reduced benefits are entitled to 100% of normal retirement benefits after 10 years of
service beginning at age 65. These benefit provisions and all other requirements are established
by City ordinance.

Employees contribute from 4% to 6% of their earnings to the plan. The City is required to
contribute the remaining amounts necessary to fund the plan, based on an amount determined by
the plan's actuaries as of September 30 each year. For the current year, the City’s contribution
rate as a percentage of annual covered payroll was 30.0%.

Police and Firefighters Retirement System

The Police and Firefighters Retirement System is a single-employer defined benefit plan
administered by an eight-member board of trustees, which covers all police and firefighters. The
City's payroll for employees covered by the plan applicable to the December 31, 2010 actuarial


                                                 56
                               CITY OF FORT LAUDERDALE, FLORIDA
                              NOTES TO THE FINANCIAL STATEMENTS
                                       SEPTEMBER 30, 2011

valuation was approximately $62,571,400. The total City payroll at that time was approximately
$164,416,800. As of the valuation date, employee membership data related to the pension plan
was as follows:

               Retirees and beneficiaries currently receiving
                  benefits                                                      865
               Terminated employees entitled to
                  benefits but not yet receiving them                            16
               Fully, partially and non-vested active plan
                  participants                                                  802
               Participants in DROP                                              84

Under the vesting provisions of the plan, employees are entitled to 100% of normal retirement
benefits after 10 years of service. Members who terminate prior to vesting are entitled to a refund
of employee contributions plus interest at 3% per year. Employees are eligible to retire after 20
years of service, regardless of age, or at age 55 with 10 years of service. Members who continue
in employment after completion of 20 years of service may either accrue larger pensions or freeze
their accrued benefit and enter the Deferred Retirement Option Plan (DROP). Each participant in
the DROP has an account credited with benefits not received plus interest. Participation in the
DROP must end no later than 60, 72, 84 or 96 months after normal retirement depending on years
of service. These benefit provisions and all other requirements are established by City ordinance.

Employees hired on or before April 18, 2010 contribute 8% of their earnings to the plan.
Employees hired after April 18, 2010 contribute 8.5% of their earnings to the plan. In addition,
contributions in the amount of $4,735,930 were received from the State of Florida from fire and
casualty insurance premium taxes. These on-behalf payments were also recognized as tax
revenues and public safety expenditures in the General Fund. The City is required to contribute
the remaining amounts necessary to fund the plan, based on an amount determined by the plan's
actuaries as of December 31 each year. For the current year, the City and State of Florida
contribution rates as percentages of annual covered payroll were 49.4% and 7.7%, respectively.

Annual Pension Cost and Funding Status

Annual Pension Cost (APC) is a measure of the periodic cost of an employer’s participation in a
defined benefit pension plan. The APC for the General Employees and Police and Firefighters
plans for the last three fiscal years follow:
                                                  General Employees Police and Firefighters
                                                           Percent              Percent
                                                 Amount Contributed  Amount Contributed
Fiscal Year Ended In:
    2009                                      $ 18,325,484    100% $19,146,573       100%
    2010                                        19,351,946    100   25,752,119       100
    2011                                        21,498,801    100   30,441,767       100

Since the City contributed 100% of the APC in each of the years indicated, there was no net
pension obligation at the end of any year for either plan. The current funding status (in millions) for
the General Employees and Police and Firefighters plans as of the most recent valuation dates
follows:




                                                  57
                                  CITY OF FORT LAUDERDALE, FLORIDA
                                 NOTES TO THE FINANCIAL STATEMENTS
                                          SEPTEMBER 30, 2011

                                                    Actuarial
                                   Actuarial        Accrued        Unfunded                Annual       UAAL as a
                     Valuation      Value of     Liability (AAL)     AAL      Funded       Covered     % of Covered
    Pension Plan       Date       Plan Assets      Entry Age        (UAAL)     Ratio        Payroll       Payroll

General Employees    09/30/10     $      353.5       499.9          146.4      70.7%      $     71.4     205.0%
Police & Fire        12/31/10     $      482.2       674.2          192.0      71.5%      $     62.6     306.7%

Actuarial Methods and Assumptions

Actuarial methods and significant actuarial assumptions used to determine the annual required
contributions for the current year follow:
                                                  General                              Police and
                                                 Employees                             Firefighters
Valuation Date                         September 30, 2009                     December 31, 2009
Actuarial Cost Method                  Entry Age                              Entry Age
Amortization Method                    Level Percent Closed                   Level Percent Closed
Remaining Amortization Period          14-30 Years                            13-20 Years
Asset Valuation Method                 Five year smoothed                     20% Write-Up method
                                       market
Actuarial Assumptions:
  Investment Rate of Return            7.75% Including 3.25% Inflation        7.75% Including 3.25% Inflation
  Projected Salary Increases           4.25% - 8.25%                          3.25% - 10.75%
Cost-of-Living Adjustments             Ad Hoc COLA’s are granted              A COLA, limited to the change
(COLA)                                 with City Commission ap-               in the CPI, is granted each year
                                       proval if investment earnings          to the extent it can be funded by
                                       exceeded the funding assump-           the net experience gains during
                                       tions in the prior year.               the prior year.

Six-year historical trend information is presented in supplementary schedules following these notes
to show whether the actuarial value of plan assets is increasing or decreasing over time relative to
the actuarial accrued liability (see page 64). In addition, the General Employees and Police and
Firefighters Retirement Systems issue separate financial statements that can be obtained from the
board of trustees. The statements are issued annually.

Defined Contribution Plans

General Employees Defined Contribution Plan

The General Employees Defined Contribution Plan is a single-employer defined contribution plan
administered by the City, which covers all City employees hired on or after October 1, 2007, except
police and firefighters. The City’s current year payroll for employees covered by the plan was
approximately $6,924,900. The total City payroll for the year was approximately $163,807,900.

The City contribution requirement of 9% on earnings of participants was paid on a biweekly basis
and amounted to $626,164 for the current year. Employee contributions are neither required nor
permitted under the plan. Employees become fully vested in the plan upon entry. These benefit
provisions and all other requirements are established by City ordinance.




                                                       58
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011


General Employees Special Class Plan

The General Employees Special Class Plan is a single-employer defined contribution plan
administered by the City. It is available to City employees (except police and firefighters) as an
alternative to participation in the General Employees Retirement System. The City's current year
payroll for employees covered by the plan was approximately $330,700. The total City payroll for
the year was approximately $163,807,900.

The City contribution requirement of 30.95% on earnings of participants was paid on a biweekly
basis and amounted to $102,686 for the current year. Employee contributions are neither required
nor permitted under the plan. Employees become fully vested in the plan upon entry. These
benefit provisions and all other requirements are established by City ordinance.

Non-classified Employees Retirement Plan

The Non-classified Employees Retirement Plan is a single-employer defined contribution plan
administered by the City, which covers certain non-classified City employees who have elected not
to participate in the City’s General Employees Retirement System. The City's current year payroll
for employees covered by the plan was approximately $1,402,900. The total City payroll for the
year was approximately $163,807,900.

The City contribution requirement of 25.88% on earnings of participants was paid on a biweekly
basis and amounted to $380,152 for the current year. Employee contributions are neither required
nor permitted under the plan. Employees become fully vested in the plan upon entry. These
benefit provisions and all other requirements are established by City ordinance.

(15) OTHER POSTEMPLOYMENT BENEFITS:

The City’s Other Postemployment Benefits (OPEB) is presented in accordance with GASB
Statement 45, “Accounting and Financial Reporting by Employers for Postemployment Benefits
Other Than Pensions”. The provisions of this pronouncement were implemented prospectively
with the actuarially determined liability of $43,578,232 at the October 1, 2007 date of transition
being amortized over 30 years. Accordingly, for financial statement purposes, this liability is not
reported at the transition date.

Benefit Description and Funding Policy

The City provides a single employer defined benefit postemployment health insurance benefit to its
general employees, sworn police officers and certified firefighters. Employees are paid from $100
to $400 per month upon normal retirement for the purchase of health insurance. The benefit
continues until age 65 and is funded on a pay-as-you-go basis. In addition, pursuant to Section
112.0801, Florida Statutes, general employees and certified firefighters who retire from the City
may continue their participation in a City sponsored health and/or dental insurance plan at the
same premiums applicable to active employees. Since retiree claims are expected to result in
higher costs to the plans, on average, than those for active employees on an actuarial basis, there
is an implicit subsidy included in the premiums for the retirees.

Benefit provisions and City contribution requirements are established and may be amended by the
City Commission through collective bargaining. As of September 30, 2011, there were 590 retired


                                                59
                               CITY OF FORT LAUDERDALE, FLORIDA
                              NOTES TO THE FINANCIAL STATEMENTS
                                       SEPTEMBER 30, 2011

employees receiving a monthly benefit with an additional 2,257 employees eligible for participation
in the future. Payments totaled $2,841,073 for the year, of which retiree implicit subsidies
amounted to $490,946 of that total.

Annual OPEB Cost, Funding Status and Funding Progress

Annual OPEB Cost (AOC) is a measure of the periodic cost of an employer’s participation in a
defined benefit OPEB plan. Details of the City’s AOC and Net OPEB Obligation (NOO) for the
year ended September 30, 2011 follow:

      Annual Required Contribution                                                 $     6,321,000
      Interest on NOO                                                                      230,000
      Amortization of NOO                                                                (235,000)
       Annual OPEB Cost (AOC)                                                            6,316,000
      Actual Contributions Made                                                        (2,841,073)
       Increase in NOO                                                                   3,474,927
      NOO Beginning of Year                                                              6,042,831
      NOO End of Year                                                              $     9,517,758

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed and the net OPEB
obligation for the last three fiscal years follow:

                                                                          Percent
                                               AOC        Contribution   Contributed     NOO
Fiscal Year Ended In:
        2009                              $   3,905,000      2,379,593        60.9%      2,547,826
        2010                                  5,951,000      2,455,994        41.3%      6,042,831
        2011                                  6,316,000      2,841,073        45.0%      9,517,758

As of the September 30, 2011 valuation date, the actuarial accrued liability           for benefits was
$62,166,000 and the actuarial value of assets was $0, resulting in an unfunded         actuarial accrued
liability of $62,166,000. The payroll for active participating employees for           that period was
approximately $141,906,000 and the unfunded actuarial accrued liability as             a percentage of
payrolls were 43.8%.

Actuarial Methods and Assumptions

Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Amounts determined regarding the funding
status of benefits and the annual required contributions of the City are subject to continual revision
as actual results are compared with past expectations and new estimates are made about the
future. Projections of benefits for financial reporting purposes are based on the substantive plan
and include the types of benefits provided at the time of each valuation and the historical pattern of
sharing of benefits between the City and participants. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.




                                                  60
                               CITY OF FORT LAUDERDALE, FLORIDA
                              NOTES TO THE FINANCIAL STATEMENTS
                                       SEPTEMBER 30, 2011

Following are the actuarial methods and significant actuarial assumptions used to determine the
annual required contributions for the current year:

       Valuation Date                                  September 30, 2010
       Actuarial Cost Method                           Projected Unit Credit
       Amortization Method                             Level Dollar and Level Percent Closed
       Remaining Amortization Period                   28 Years
       Investment Rate of Return/ Discount Rate        4.0%
       Projected Salary Increases                      3.5%
       Medical Trend Rate of Inflation                 3.2%

Four year historical trend information is presented in a supplementary schedule following these
notes (see page 66). Separately issued financial statements for the benefits are not available.

(16) DEFERRED COMPENSATION PLAN:

The City offers a deferred compensation plan to its employees in addition to the pension plans.
Participation is optional. The City has adopted the provisions of IRS code Section 457(g) and
GASB Statement No. 32, “Accounting and Financial Reporting for IRS Code Section 457 Deferred
Compensation Plans”. Under these provisions, all assets and income of the plan are held in trust
for the exclusive benefit of participants. Accordingly, the assets and liabilities of the plan are not
reported within the City’s financial statements.

(17) OPERATING LEASES:

On September 1, 1962, the City entered into a lease agreement as lessor with Bahia Mar Yachting
Center, Inc. (Bahia Mar) for the purpose of constructing and operating a restaurant, lounge, yacht
club, motel/hotel, convention hall, marine facilities and other similar businesses. The cost of the
property at the inception of the lease was $552,000. On June 30, 1994, this lease was assumed
by RAHN Bahia Mar, LTD. and, as amended, will terminate on August 31, 2062, at which time, all
additions to the property originally leased to Bahia Mar will revert to the City. The lease agreement
provides for a minimum guaranteed annual rental of $300,000 per year. In addition, the City
receives contingent rentals ($668,540 in 2011) based upon escalating percentages of gross
receipts for the duration of the agreement.

The City has various aviation leases and non-aviation land leases, which are accounted for as
operating leases in the Airport Fund. Minimum future rentals on these leases as of September 30,
2011 follow:

                                          Aviation              Land
                                          Leases               Leases              Total
           Fiscal Year Ending in:
                     2012            $     1,824,498           2,557,446          4,381,944
                     2013                  1,760,073           2,557,446          4,317,519
                     2014                  1,754,216           2,557,446          4,311,662
                     2015                  1,752,379           2,557,446          4,309,825
                     2016                  1,735,193           2,557,446          4,292,639
                  Later Years             27,331,620          53,012,869         80,344,489
                                     $    36,157,979          65,800,099        101,958,078




                                                  61
                             CITY OF FORT LAUDERDALE, FLORIDA
                            NOTES TO THE FINANCIAL STATEMENTS
                                     SEPTEMBER 30, 2011

(18) COMMITMENTS AND CONTINGENT LIABILITIES:

The City has outstanding encumbrances in the governmental funds, as well as, other significant
commitments in the various enterprise funds. The following is a summary of these commitments at
September 30, 2011:

             Governmental Funds
             General Fund                                          $    2,808,648
             Non-Major Governmental Funds:
             Special Revenue Funds:
              Law Enforcement Confiscated Property Fund                   34,682
              Community Redevelopment Agency Fund                        202,675
              Beach Business Improvements Fund                             2,863
              Building Fund                                               11,102
                                                                         251,322
             Capital Projects Funds:
             General Capital Projects Fund                              6,169,787
             General Obligation Construction 2005 and 2011A Fund        4,861,900
             Excise Tax Construction 1998C Fund                           137,764
             Florida Intergovernmental Construction 2002 Fund              13,282
             Tax Increment Construction 2004 Fund                       3,667,649
             Special Obligation Construction 2008B Fund                 2,529,092
             Special Obligation Construction 2011A Fund                   342,401
             Community Redevelopment Agency Projects Fund               3,160,124
             Gas Tax Fund                                                 165,569
                                                                       21,047,568
             Enterprise Funds
             Water and Sewer                                           14,069,915
             Non-Major Enterprise Funds:
             Sanitation Fund                                              519,815
             Parking System Fund                                          957,318
             Airport Fund                                                 894,262
             Stormwater Fund                                              874,302
                                                                        3,245,697

                                                                   $ 41,423,150

On September 23, 2010, the Federal Emergency Management Agency (FEMA) was notified by the
Office of Inspector General, U.S. Department of Homeland Security, after their review of costs
claimed for Hurricane Wilma and Hurricane Katrina for the City of Fort Lauderdale, $15.1 million
was deemed questionable. City staff has been working with FEMA preparing all documentation
requested which will support submitted claims. The City has not established a liability as it is
unlikely that any significant amount of the funds will have to be returned to FEMA. The City has
justified approximately $14.5 million of the above claim and has resubmitted new project
worksheets to FEMA. The City has recognized a net additional liability for Hurricanes Katrina and
Wilma of $523,260 and Hurricane Frances $81,821. The City believes firmly that the
reimbursements from FEMA were justified and has the documentation to support its claims.




                                               62
                              CITY OF FORT LAUDERDALE, FLORIDA
                             NOTES TO THE FINANCIAL STATEMENTS
                                      SEPTEMBER 30, 2011

As of September 30, 2011, the City has $3,029,661 of project worksheets on its books that FEMA
has classified as unobligated. To be conservative the City has established a 100% Allowance for
Uncollectible accounts for this receivable thus not being reflected in the Intergovernmental Funds
financial statement. The establishment of this Allowance for Uncollectible accounts is not due to
the ineligibility of the request but rather due to the uncertainty of FEMA making any additional
payments on these disasters.

The City has $981,086 of old accounts in the HOME program that will need to be closed out by
April 23, 2012 to avoid a liability to HUD. Neither the City, nor the agencies that were awarded
these funds properly tracked the HOME program beneficiaries in accordance with the HUD
regulations. It is possible that the City may have to pay back part or all of the $981,086. The City
has recognized a liability for an additional $639,634 expended under the HOME program that did
not meet eligibility requirements

Various substantial lawsuits have been filed against the City including personal injury claims;
liability claims related to police activities and general liability claims. The estimated liabilities
related to the various claims have been accrued in the City’s insurance internal service fund. In
the opinion of City management, the expected liability for these claims would not materially exceed
the amounts recorded in the financial statements.

(19) SUBSEQUENT EVENTS:

On September 28, 2011, General Obligation Refunding Bonds, Series 2011B were issued to
refund the City’s outstanding General Obligation Refunding Bonds, Series 2002 with an aggregate
principal amount of $14,345,000. The gross savings of the refunding was $1,128,268.33, with a net
present value savings of $1,083,202.26. The proceeds of the refunding were placed into escrow
until October 28, 2011, at which time the outstanding principal of $14,345,000 and accrued interest
of $166,938.75 were paid.

On December 14, 2011, the City issued a $30,000,000 Series Special Obligation Note Series
2011C maturing on October 15, 2012 at an interest rate of 1.4%. These funds will be used to
prepay the City’s annual required contribution to the Police and Fire Pension Fund to defray the
7.75% annual interest cost of the plan. The anticipated interest savings to the City is $1,473,289.

In an effort to reduce future payroll costs, on December 6, 2011 the City Commission approved a
one time bonus incentive that would allow eligible General Employee Retirement System (GERS)
members to receive up to an additional 30 months of service credit in exchange for retiring from
City employment no later than March 16, 2012. Of the eligible 411 GERS plan members, 131 City
employees with an estimated payroll of $12.83 million retired under the program. There are no
anticipated payroll savings in FY2012 with the termination benefit payouts being offset by the
replacement of only 50% of the retiring employees. The payroll savings for FY2013 are estimated
between $5.9 and $6.9 million. As per the GERS Actuarial Valuation Report for September 30,
2011 the plan’s unfunded actuarial accrued liability (UAAL) will increase by approximately $17.54
million due to the bonus incentive. This UAAL will be amortized over a period of five years. After
the five-year period, the annual required contribution will decrease by $4.21 million.

The GERS plan also experienced a lower than expected investment return for the year of -1.2%
based upon the market value and 1.5% based upon the actuarial value of plan assets, resulting in
an actuarial experience loss of $18.2 million. This net loss has increased the required employer
contribution for FY2013 by 2.54% of covered payroll.


                                                 63
   REQUIRED
SUPPLEMENTARY
 INFORMATION
                             CITY OF FORT LAUDERDALE, FLORIDA
                            REQUIRED SUPPLEMENTARY INFORMATION
                 SCHEDULE OF FUNDING PROGRESS - EMPLOYEE RETIREMENT SYSTEMS
                                    LAST SIX FISCAL YEARS
                                        (IN MILLIONS)

                           GENERAL EMPLOYEES RETIREMENT SYSTEM


                            ACTUARIAL                                               UAAL AS A
             ACTUARIAL       ACCRUED         UNFUNDED                    ANNUAL    PERCENTAGE
VALUATION    VALUE OF     LIABILITY (AAL)-       AAL      FUNDED        COVERED    OF COVERED
  DATE      PLAN ASSETS     ENTRY AGE          (UAAL)      RATIO        PAYROLL      PAYROLL

 09/30/05   $   283.0           392.6          109.6         72.1   %   $   60.5      181.2 %

 09/30/06       301.2           408.7          107.5         73.7           64.2      167.4

 09/30/07       327.7           430.0          102.3         76.2           69.1      148.0

 09/30/08       338.7           454.3          115.6         74.6           69.5      166.3

 09/30/09       345.2           482.1          136.9         71.6           71.5      191.5

 09/30/10       353.5           499.9          146.4         70.7           71.4      205.0




                          POLICE AND FIREFIGHTERS RETIREMENT SYSTEM


                            ACTUARIAL                                               UAAL AS A
             ACTUARIAL       ACCRUED         UNFUNDED                    ANNUAL    PERCENTAGE
VALUATION    VALUE OF     LIABILITY (AAL)-       AAL      FUNDED        COVERED    OF COVERED
  DATE      PLAN ASSETS     ENTRY AGE          (UAAL)      RATIO        PAYROLL      PAYROLL

 12/31/05   $   413.8           543.2          129.4         76.2   %   $   41.1      314.8 %

 12/31/06       428.3           557.1          128.8         76.9           42.5      303.1

 12/31/07       480.9           586.5          105.6         82.0           51.3      205.8

 12/31/08       444.4           614.0          169.6         72.4           52.8      321.2

 12/31/09       451.6           649.0          197.4         69.6           61.7      319.9

 12/31/10       482.2           674.2          192.0         71.5           62.6      306.7




                                             64
                                    CITY OF FORT LAUDERDALE, FLORIDA
                                  REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES - EMPLOYEE RETIREMENT SYSTEMS
                                          LAST SIX FISCAL YEARS




                GENERAL EMPLOYEES                        POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
                RETIREMENT SYSTEM                          CITY                        STATE OF FLORIDA

FISCAL        ANNUAL                              ANNUAL
 YEAR        REQUIRED       PERCENTAGE           REQUIRED       PERCENTAGE           ANNUAL       PERCENTAGE
ENDED      CONTRIBUTION     CONTRIBUTED        CONTRIBUTION     CONTRIBUTED        CONTRIBUTION   CONTRIBUTED

09/30/06   $   14,749,038       100   %    $     19,824,618          100   %   $      4,216,411           100 %

09/30/07       15,188,106       100              20,472,413          100              5,872,529           100

09/30/08       15,991,230       100              21,332,840          100              5,262,367           100

09/30/09       18,325,484       100              19,146,573          100              4,409,900           100

09/30/10       19,351,946       100              25,752,119          100              4,816,576           100

09/30/11       21,498,801       100              30,441,767          100              4,735,930           100




                                                    65
                              CITY OF FORT LAUDERDALE, FLORIDA
                             REQUIRED SUPPLEMENTARY INFORMATION
                SCHEDULE OF FUNDING PROGRESS - OTHER POST EMPLOYMENT BENEFITS
                                   LAST THREE FISCAL YEARS
                                         (IN MILLIONS)


                             ACTUARIAL
                              ACCRUED                                               UAAL AS A
             ACTUARIAL     LIABILITY (AAL)-   UNFUNDED                    ANNUAL   PERCENTAGE
VALUATION     VALUE OF    PROJECTED UNIT          AAL     FUNDED         COVERED   OF COVERED
  DATE      PLAN ASSETS        CREDIT           (UAAL)     RATIO         PAYROLL     PAYROLL

 09/30/08   $      -             43.6              43.6          -   %   $ 122.5       35.6 %

 09/30/09          -             45.8              45.8          -         125.8       36.4

 09/30/10          -             59.1              59.1          -         140.1       42.2

 09/30/11          -             62.2              62.2          -         141.9       43.8




                                              66
COMBINING FINANCIAL
   STATEMENTS
                                 Nonmajor Governmental Funds


                                     Special Revenue Funds

Special revenue funds are used to account for the proceeds of specific revenue sources (other than
debt service or major capital projects) requiring separate accounting because of legal or regulatory
provisions or administrative action.

Intergovernmental Revenue Fund – to account for revenues from Federal, State and local
governments restricted to expenditure for specific current operating purposes or the acquisition of
capital assets.

State Housing Initiative Partnership Fund – to account for revenues from the State Housing
Initiative Partnership restricted to expenditure for low income housing.

Community Redevelopment Agency Fund – to account for the operation of the agency overseeing
the financing and redevelopment of the designated redevelopment areas.

Law Enforcement Confiscated Property Fund – to account for the proceeds from court awarded
forfeitures of currency and personal property that are restricted to expenditure for law enforcement
purposes.

Beach Business Improvements Fund – to account for the services and improvements to a portion
of the beach area funded through assessments imposed on the businesses within that area.

Building Fund – to account for revenues derived from building permit fees restricted to expenditures
associated with the enforcement of the Florida building Code.

                                       Debt Service Funds

Debt Service funds are used to account for resources that are restricted, committed or assigned to
payment of principal, interest and other expenditures on general long-term debt, other than bonds
payable from the operations of the enterprise funds.

Tax Increment Revenue Bonds Fund – to accumulate monies for payment of the Series 2003 and
2004 Tax Increment Revenue Bonds with remaining principal and interest due in varying amounts
until maturity in 2013.

General Obligation Bonds Fund – to accumulate monies for payment of the Series 1997, 1998,
2002, 2005 and 2011 General Obligation Bonds with remaining principal and interest due in varying
amounts until maturity in 2041.

Special Obligation Loans Fund – to accumulate monies for payment of the Special Obligation
Loans with remaining principal and interest due in varying amounts until maturity in 2026.
                                      Capital Projects Funds

Capital projects funds are used to account for financial resources segregated for the acquisition or
construction of major capital facilities other than those financed by enterprise operations.

General Capital Projects Fund – to account for the acquisition or construction of, or improvements
to, major capital facilities.

General Obligation Construction Fund 1997 – to account for the acquisition or construction of
parks and recreation facilities financed through the issuance of long-term debt.

General Obligation Construction Fund 2005 and 2011 – to account for the construction of, or
improvements to fire rescue facilities financed through the issuance of long-term debt.

Excise Tax Construction Fund 1998C, Florida Intergovernmental Construction Fund 2002,
Special Obligation Construction 2008B and Special Obligation Construction 2011A – all four
funds are used to account for the acquisition or construction of, or improvements to, major capital
facilities financed through the issuance of long-term debt.

Tax Increment Construction Fund 2004 – to account for the acquisition or construction of major
capital facilities in the City’s Community Redevelopment Area financed through the issuance of tax
increment revenue bonds.

Community Redevelopment Agency Projects Fund – to account for the construction of, or
improvements to infrastructure within the designated redevelopment areas of the Community
Redevelopment Agency.

Gas Tax Fund – to account for the construction of, or improvements to, streets and highways
financed by county-shared gas tax revenues.

                                          Permanent Fund

Permanent funds are used to report resources that are legally restricted to the extent that only
earnings, not principal, may be used for purposes that support the reporting government’s programs.

Perpetual Care Fund – to account for a portion of the lot sale proceeds of the City’s cemeteries to be
used for maintenance of the cemetery grounds and lots.
                                    CITY OF FORT LAUDERDALE, FLORIDA
                                          COMBINING BALANCE SHEET
                                       NONMAJOR GOVERNMENTAL FUNDS
                                             SEPTEMBER 30, 2011


                                                                                                 SPECIAL

                                                                                   STATE      COMMUNITY
                                                                INTERGOVERN-      HOUSING     REDEVELOP-
                                                                    MENTAL       INITIATIVE      MENT
                                                                   REVENUE     PARTNERSHIP      AGENCY
ASSETS
Cash and Cash Equivalents                                   $       568,981      3,763,632       270,255
Investments                                                               -              -             -
Receivables
    Property Taxes                                                        -              -             -
    Accounts and Loans (Net of $776,267 Allowance
        for Uncollectibles)                                         304,499              -         4,711
    Assessments                                                           -              -             -
    Accrued Dividends and Interest                                        -              -             -
Due from Other Funds                                                      -              -             -
Due from Other Governments (Net of $$3,029,661 Allowance
    for Uncollectibles)                                          11,845,994              -             -
Inventories                                                       3,216,331         16,667     7,103,743
Deposits                                                                  -              -             -
               Total Assets                                 $    15,935,805      3,780,299     7,378,709

LIABILITIES AND FUND BALANCES
LIABILITIES
Vouchers Payable                                            $     4,808,065         69,771        35,037
Contracts Payable                                                   477,187              -             -
Accrued Payroll                                                      81,274              -        36,964
Due to Other Funds                                                3,409,448              -             -
Due to Other Governments                                          2,346,531        403,087             -
Advances from Other Funds                                                 -              -        25,000
Compensated Absences and Longevity                                  149,825              -             -
Deposits                                                              4,545              -             -
Deferred Revenue                                                    976,132              -             -
Unearned Revenue                                                    539,781      3,035,120             -
              Total Liabilities                                  12,792,788      3,507,978        97,001

FUND BALANCES
Nonspendable                                                              -              -             -
Restricted                                                        3,143,017        272,321     7,281,618
Committed                                                                 -              -             -
Assigned                                                                  -              -            90
             Total Fund Balances                                  3,143,017        272,321     7,281,708
             Total Liabilities and Fund Balances            $    15,935,805      3,780,299     7,378,709




                                                      67
REVENUE                                          DEBT SERVICE         CAPITAL PROJECTS

    LAW         BEACH                                                            GENERAL
ENFORCEMENT   BUSINESS                            GENERAL       GENERAL         OBLIGATION
CONFISCATED   IMPROVE-                           OBLIGATION      CAPITAL       CONSTRUCTION
  PROPERTY      MENTS        BUILDING              BONDS        PROJECTS           1997

  4,444,452     189,990      4,692,811             1,529,797    21,820,454               -
          -           -              -            14,569,903             -         197,157

          -              -              -            154,413               -              -

          -              -              -                  -            -                 -
          -              -              -                  -      369,430                 -
          -              -              -                  -            -                 -
          -              -              -                  -      205,933                 -

          -           -              -                     -             -               -
          -           -              -                     -         6,750               -
          -           -              -                     -             -               -
  4,444,452     189,990      4,692,811            16,254,113    22,402,567         197,157




     35,863      22,418          8,669                53,801       538,698                -
          -           -              -                     -       193,736            4,925
     19,947           -        154,786                     -             -                -
          -           -              -                     -             -                -
          -           -              -                     -             -                -
          -           -              -                     -             -                -
          -           -         33,812                     -             -                -
     33,789           -              -                     -        60,895                -
          -           -              -               154,413       272,793                -
          -           -              -                     -        79,720                -
     89,599      22,418        197,267               208,214     1,145,842            4,925


          -           -              -                     -         6,750               -
  3,819,919           -      4,495,544            16,045,899     2,694,697         192,232
          -     149,173              -                     -       174,861               -
    534,934      18,399              -                     -    18,380,417               -
  4,354,853     167,572      4,495,544            16,045,899    21,256,725         192,232
  4,444,452     189,990      4,692,811            16,254,113    22,402,567         197,157




                                                                      Continued on Next Page
                                            68
                                   CITY OF FORT LAUDERDALE, FLORIDA
                                         COMBINING BALANCE SHEET
                                      NONMAJOR GOVERNMENTAL FUNDS
                                            SEPTEMBER 30, 2011


                                                                                                   CAPITAL
                                                                                                FLORIDA
                                                                  GENERAL                    INTERGOVERN-
                                                                OBLIGATION        EXCISE TAX    MENTAL
                                                               CONSTRUCTION     CONSTRUCTION CONSTRUCTION
                                                               2005 AND 2011A       1998C         2002
ASSETS
Cash and Cash Equivalents                                  $               -               -        3,090
Investments                                                       20,076,266       1,280,037      318,744
Receivables
    Property Taxes                                                         -               -            -
    Accounts and Loans (Net of $776,267 Allowance
        for Uncollectibles)                                               -                -            -
    Assessments                                                           -                -            -
    Accrued Dividends and Interest                                       17                -            -
Due from Other Funds                                                      -                -            -
Due from Other Governments (Net of $$3,029,661 Allowance
    for Uncollectibles)                                                    -               -            -
Inventories                                                                -               -            -
Deposits                                                                   -               -            -
               Total Assets                                $      20,076,283       1,280,037      321,834

LIABILITIES AND FUND BALANCES
LIABILITIES
Vouchers Payable                                           $        249,807               -             -
Contracts Payable                                                    55,419           1,548        15,237
Accrued Payroll                                                           -               -             -
Due to Other Funds                                                  182,403               -             -
Due to Other Governments                                                  -               -             -
Advances from Other Funds                                                 -               -             -
Compensated Absences and Longevity                                        -               -             -
Deposits                                                                  -               -             -
Deferred Revenue                                                          -               -             -
Unearned Revenue                                                          -               -             -
              Total Liabilities                                     487,629           1,548        15,237

FUND BALANCES
Nonspendable                                                               -               -            -
Restricted                                                        19,588,654       1,278,489      306,597
Committed                                                                  -               -            -
Assigned                                                                   -               -            -
             Total Fund Balances                                  19,588,654       1,278,489      306,597
             Total Liabilities and Fund Balances           $      20,076,283       1,280,037      321,834




                                                     69
                                                                     PERMANENT
PROJECTS                                                                FUND
                                         COMMUNITY
    TAX         SPECIAL      SPECIAL     REDEVELOP-
 INCREMENT    OBLIGATION   OBLIGATION       MENT
CONSTRUCTION CONSTRUCTION CONSTRUCTION     AGENCY                    PERPETUAL
    2004         2008B        2011A       PROJECTS     GAS TAX         CARE             TOTAL

           -            -           -    45,389,253     944,051          38,910       83,655,676
  10,388,676    6,540,222   7,051,776             -           -      18,582,267       79,005,048

           -            -           -              -             -            -          154,413

           -            -           -              -             -           -           309,210
           -            -           -              -             -           -           369,430
           -            -           -              -             -      80,749            80,766
           -            -           -              -             -           -           205,933

           -            -           -             -       75,264              -       11,921,258
           -            -           -             -            -              -       10,343,491
           -            -           -             -            -              -                -
  10,388,676    6,540,222   7,051,776    45,389,253    1,019,315     18,701,926      186,045,225




   1,142,005      84,241       32,937       424,045       8,574        159,119         7,673,050
     299,193      49,630            -       207,737      54,399              -         1,359,011
           -           -            -             -           -              -           292,971
           -           -            -             -           -        205,933         3,797,784
           -           -            -             -           -              -         2,749,618
           -           -            -             -           -              -            25,000
           -           -            -             -           -              -           183,637
           -           -            -             -           -              -            99,229
           -           -            -             -           -              -         1,403,338
           -           -            -             -           -              -         3,654,621
   1,441,198     133,871       32,937       631,782      62,973        365,052        21,238,259


           -            -           -             -            -     11,265,762       11,272,512
   8,947,478    6,406,351   7,018,839    44,757,471      748,373              -      126,997,499
           -            -           -             -            -      7,071,112        7,395,146
           -            -           -             -      207,969              -       19,141,809
   8,947,478    6,406,351   7,018,839    44,757,471      956,342     18,336,874      164,806,966
  10,388,676    6,540,222   7,051,776    45,389,253    1,019,315     18,701,926      186,045,225




                                                                         Continued from Prior Page
                                              70
                                   CITY OF FORT LAUDERDALE, FLORIDA
         COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                               NONMAJOR GOVERNMENTAL FUNDS
                         FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                                   SPECIAL

                                                                     STATE      COMMUNITY          LAW
                                                    INTERGOVERN-    HOUSING     REDEVELOP-     ENFORCEMENT
                                                        MENTAL     INITIATIVE      MENT        CONFISCATED
                                                       REVENUE   PARTNERSHIP      AGENCY         PROPERTY
REVENUES
Property Taxes                                  $              -                          -              -
Licenses and Permits                                           -                          -              -
Fines and Forfeitures                                          -           -              -      1,078,976
Intergovernmental
    Federal                                          17,176,129            -              -             -
    State                                               470,662      555,523              -             -
    Other Local Units                                 6,403,685            -      7,486,790             -
Charges for Services                                          -            -              -       188,445
Other
    Assessments                                               -            -              -              -
    Interest and Dividends                               12,891       80,810        145,454         18,932
    Rents and Concession                                170,406            -              -              -
    Contributions and Donations                               -            -              -              -
    Net Change in Fair Value of Investments                   -            -              -              -
    Interfund Service Charges                                 -            -              -         40,441
    Sale of Cemetery Plots                                    -            -              -              -
    Miscellaneous                                       693,955      227,558          7,972         56,902
        Total Revenues                               24,927,728      863,891      7,640,216      1,383,696

EXPENDITURES
Current
   General Government                                   641,421            -              -              -
   Public Safety                                      3,342,792            -              -      1,563,246
   Physical Environment                               1,145,351            -              -              -
   Transportation                                       625,200            -              -              -
   Economic Environment                              13,886,119      863,891      2,524,349              -
   Culture and Recreation                               256,720            -              -              -
Debt Service
   Principal Retirement                                       -            -              -              -
   Interest and Fiscal Charges                                -            -              -              -
   Cost of Issuance                                           -            -              -              -
Capital Outlay                                       11,657,933            -              -              -
        Total Expenditures                           31,555,536      863,891      2,524,349      1,563,246
           Excess Revenues Over (Under)
               Expenditures                           (6,627,808)          -      5,115,867       (179,550)

OTHER FINANCING SOURCES (USES)
Transfers In                                           1,199,998           -      4,677,506              -
Transfers Out                                           (328,034)          -    (51,048,722)             -
Debt Issuance                                                  -           -              -              -
Premiums on Debt Issuance                                      -           -              -              -
Payments to Refunding Debt Escrow Agent                        -           -              -              -
       Total Other Financing Sources (Uses)              871,964           -    (46,371,216)             -
           Net Change in Fund Balances                (5,755,844)          -    (41,255,349)      (179,550)
Fund Balances - Beginning of Period                    8,898,861     272,321     48,537,057      4,534,403
Fund Balances - End of Period                   $      3,143,017     272,321      7,281,708      4,354,853



                                                    71
REVENUE                                    DEBT SERVICE                     CAPITAL PROJECTS

   BEACH                        TAX                                                       GENERAL
 BUSINESS                    INCREMENT      GENERAL        SPECIAL       GENERAL         OBLIGATION
 IMPROVE-                     REVENUE      OBLIGATION     OBLIGATION      CAPITAL       CONSTRUCTION
   MENTS        BUILDING       BONDS         BONDS          LOANS        PROJECTS           1997

                         -            -      5,083,903              -               -              -
                10,611,017            -              -              -               -              -
            -            -            -              -              -               -              -

            -           -             -              -              -               -              -
            -           -             -              -              -               -              -
            -           -             -              -              -               -              -
            -      23,752             -              -              -               -              -

   576,183               -            -              -              -      110,838                -
     1,531          12,407                         196              -      102,495            4,427
         -               -            -              -              -            -                -
         -               -            -              -              -      122,049                -
         -               -            -              -              -            -                -
         -               -            -              -              -            -                -
         -               -            -              -              -            -                -
         -          11,153            -              -              -       99,857                -
   577,714      10,658,329            -      5,084,099              -      435,239            4,427



         -               -            -              -              -       15,777               83
         -       6,672,511            -              -              -            -                -
         -               -            -              -              -            -                -
         -               -            -              -              -            -                -
   543,316               -            -              -              -            -                -
         -               -            -              -              -            -                -

         -               -    1,277,000      2,545,000     2,465,600        108,651               -
         -               -      197,377      1,337,739       863,105         15,551               -
         -               -            -        113,661        85,600         19,478               -
         -               -            -              -             -      2,733,560         622,572
   543,316       6,672,511    1,474,377      3,996,400     3,414,305      2,893,017         622,655

    34,398       3,985,818   (1,474,377)     1,087,699     (3,414,305)   (2,457,778)       (618,228)


         -         509,726    1,474,377              -      3,326,632     1,571,776                -
         -               -            -              -              -             -         (685,719)
         -               -            -     13,980,000     24,110,000     2,546,000                -
         -               -            -        649,762              -             -                -
         -               -            -              -    (24,022,327)            -                -
         -         509,726    1,474,377     14,629,762      3,414,305     4,117,776         (685,719)
    34,398       4,495,544            -     15,717,461              -     1,659,998       (1,303,947)
   133,174               -            -        328,438              -    19,596,727        1,496,179
   167,572       4,495,544            -     16,045,899              -    21,256,725          192,232

                                                                           Continued on Next Page

                                                72
                                   CITY OF FORT LAUDERDALE, FLORIDA
         COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
                               NONMAJOR GOVERNMENTAL FUNDS
                         FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                                     CAPITAL
                                                                                   FLORIDA
                                                     GENERAL                    INTERGOVERN-       TAX
                                                   OBLIGATION        EXCISE TAX    MENTAL       INCREMENT
                                                  CONSTRUCTION     CONSTRUCTION CONSTRUCTION   CONSTRUCTION
                                                  2005 AND 2011A       1998C         2002          2004
REVENUES
Property Taxes                                $               -               -           -               -
Licenses and Permits                                          -               -           -               -
Fines and Forfeitures                                         -               -           -               -
Intergovernmental
    Federal                                                   -               -           -               -
    State                                                     -               -           -               -
    Other Local Units                                         -               -           -               -
Charges for Services                                          -               -           -               -
Other
    Assessments                                              -                -           -               -
    Interest and Dividends                               7,154            3,984       1,502          34,496
    Rents and Concession                                     -                -           -               -
    Contributions and Donations                              -                -           -
    Net Change in Fair Value of Investments                  -                -           -               -
    Interfund Service Charges                                -                -           -               -
    Sale of Cemetery Plots                                   -                -           -               -
    Miscellaneous                                            -                -           -               -
        Total Revenues                                   7,154            3,984       1,502          34,496

EXPENDITURES
Current
   General Government                                       171              20        270             442
   Public Safety                                              -               -          -               -
   Physical Environment                                       -               -          -               -
   Transportation                                             -               -          -               -
   Economic Environment                                       -               -          -               -
   Culture and Recreation                                     -               -          -               -
Debt Service
   Principal Retirement                                      -               -            -               -
   Interest and Fiscal Charges                               -               -            -               -
   Cost of Issuance                                    408,414               -            -               -
Capital Outlay                                       3,024,414          60,568      470,595       3,011,060
        Total Expenditures                           3,432,999          60,588      470,865       3,011,502
           Excess Revenues Over (Under)
               Expenditures                         (3,425,845)         (56,604)   (469,363)     (2,977,006)

OTHER FINANCING SOURCES (USES)
Transfers In                                                 -                -           -               -
Transfers Out                                                -                -           -               -
Debt Issuance                                       20,000,000                -           -               -
Premiums on Debt Issuance                              413,394                -           -               -
Payments to Refunding Debt Escrow Agent                      -                -           -               -
       Total Other Financing Sources (Uses)         20,413,394                -           -               -
           Net Change in Fund Balances              16,987,549          (56,604)   (469,363)     (2,977,006)
Fund Balances - Beginning of Period                  2,601,105        1,335,093     775,960      11,924,484
Fund Balances - End of Period                 $     19,588,654        1,278,489     306,597       8,947,478



                                                       73
                                                                 PERMANENT
PROJECTS                                                           FUND
                               COMMUNITY
   SPECIAL         SPECIAL     REDEVELOP-
 OBLIGATION      OBLIGATION       MENT
CONSTRUCTION    CONSTRUCTION     AGENCY                          PERPETUAL
    2008B           2011A       PROJECTS           GAS TAX         CARE              TOTAL

           -               -             -                   -            -          5,083,903
           -               -             -                   -            -         10,611,017
           -               -             -                   -            -          1,078,976

           -               -             -                -               -         17,176,129
           -               -             -                -               -          1,026,185
           -               -             -          978,700               -         14,869,175
           -               -             -                -               -            212,197

           -              -             -                 -               -            687,021
      21,201           (153)       58,204             5,339         702,068          1,212,938
           -              -             -                 -               -            170,406
           -              -             -                 -               -            122,049
           -              -             -                 -        (359,384)          (359,384)
           -              -             -                 -               -             40,441
           -              -             -                 -         578,150            578,150
           -              -             -                 -           3,603          1,101,000
      21,201           (153)       58,204           984,039         924,437         53,610,203



       1,465               -             -                   -            -            659,649
           -               -             -                   -            -         11,578,549
           -               -             -                   -      790,084          1,935,435
           -               -             -                   -            -            625,200
           -               -             -                   -            -         17,817,675
           -               -             -                   -            -            256,720

           -              -             -                 -               -          6,396,251
           -              -             -                 -               -          2,413,772
           -         32,744             -                 -               -            659,897
     829,602        166,264     4,033,768           899,560               -         27,509,896
     831,067        199,008     4,033,768           899,560         790,084         69,853,044

    (809,866)      (199,161)    (3,975,564)          84,479         134,353        (16,242,841)


           -               -   49,574,345                 -               -         62,334,360
           -               -     (841,310)                -        (200,000)       (53,103,785)
           -       7,218,000            -                 -               -         67,854,000
           -               -            -                 -               -          1,063,156
           -               -            -                 -               -        (24,022,327)
           -       7,218,000   48,733,035                 -        (200,000)        54,125,404
    (809,866)      7,018,839   44,757,471            84,479         (65,647)        37,882,563
   7,216,217               -            -           871,863      18,402,521        126,924,403
   6,406,351       7,018,839   44,757,471           956,342      18,336,874        164,806,966

                                                                      Continued from Prior Page

                                              74
THIS PAGE INTENTIONALLY LEFT BLANK
                      Nonmajor Enterprise Funds and Internal Service Funds


                                          Enterprise Funds

Each of the enterprise funds accounts for all activities necessary to provide the respective services of
the fund, including but not limited to, administration, operations, maintenance, financing and related debt
service.

Sanitation Fund – to account for the provision of solid waste disposal services to City residents,
including collection and disposal of solid waste, curbside recycling, street sweeping, lot clearing and
canal cleaning.

Parking System Fund - to account for the operations of various parking facilities throughout the City.

Airport Fund - to account for the operation of the Fort Lauderdale Executive Airport.

Stormwater Fund - to account for the development and operation of the City’s stormwater management
program.


                                        Internal Service Funds

Internal service funds are used to account for the financing of goods or services provided by one
department or fund to the other departments or funds of the City on a cost reimbursement basis.

City Insurance Fund - to account for the costs of insuring the City in the areas of general liability,
auto liability, workers’ compensation, police professional liability, employment practices and medical
benefits. The City is primarily self-insured in these areas. Other funds are billed to cover actual costs
of premiums and claims and to maintain an adequate balance in fund equity.

Central Services Fund - to account for the costs of providing communications and printing services
to other departments. The other departments are billed at actual cost.

Vehicle Rental Fund - to account for the costs of operating a maintenance facility for City vehicles.
Departments are billed to cover operating costs and to provide for future replacement of the vehicles.
Funding for the initial purchase of vehicles is provided by the user departments.
                                      CITY OF FORT LAUDERDALE, FLORIDA
                                          COMBINING STATEMENT OF NET ASSETS
                                             NONMAJOR ENTERPRISE FUNDS
                                                  SEPTEMBER 30, 2011


                                                           PARKING
                                              SANITATION   SYSTEM         AIRPORT       STORMWATER     TOTAL
ASSETS
Current Assets
   Cash and Cash Equivalents          $        4,063,588   14,855,496     19,860,712     14,554,094    53,333,890
   Receivables
       Accounts and Notes (Net of
           $1,565,143 Allowance for
           Uncollectibles)                       845,623              -         523        887,197      1,733,343
       Unbilled Service                          655,268              -           -              -        655,268
       Assessments                                     -              -           -         25,866         25,866
   Due from Other Governments                    218,379              -     141,716        500,860        860,955
   Restricted Assets
       Cash and Cash Equivalents               1,049,261       37,516      1,679,965              -     2,766,742
           Total Current Assets                6,832,119   14,893,012     21,682,916     15,968,017    59,376,064
Noncurrent assets
   Investment in Joint Venture                         -        885,919             -             -      885,919
   Capital Assets (Net of Accumulated
       Depreciation)                           2,521,148   30,614,146     36,747,034     15,370,967    85,253,295
           Total Noncurrent Assets             2,521,148   31,500,065     36,747,034     15,370,967    86,139,214
           Total Assets                        9,353,267   46,393,077     58,429,950     31,338,984   145,515,278

LIABILITIES
Current Liabilities
   Vouchers Payable                              794,071        181,281     222,154        228,811      1,426,317
   Contracts Payable                                   -         50,232      15,942         51,479        117,653
   Accrued Payroll                               124,706        136,921      37,112         45,114        343,853
   Accrued Interest                                    -              -           -          1,525          1,525
   Due to Other Governments                            -         11,593           -              -         11,593
   Current Portion of Long-Term Debt             147,822         64,462      30,481         32,800        275,565
   Payable from Restricted Assets
       Deposits                                1,049,261              -           -              -      1,049,261
           Total Current Liabilities           2,115,860        444,489     305,689        359,729      3,225,767
Noncurrent Liabilities
   Deposits                                            -       42,330        35,487              -         77,817
   Unearned Revenue                                    -            -             -        340,738        340,738
   Net OPEB Obligation                           237,650      270,361        60,936         79,982        648,929
   Long-Term Debt                              1,399,642      350,544       144,852         91,959      1,986,997
           Total Noncurrent Liabilities        1,637,292      663,235       241,275        512,679      3,054,481
           Total Liabilities                   3,753,152    1,107,724       546,964        872,408      6,280,248

NET ASSETS
Invested in Capital Assets, Net of
    Related Debt                               2,521,148   30,614,146     36,747,034     15,230,964    85,113,292
Restricted for
    Replacement and Improvement                        -       37,516              -              -        37,516
    Capital Improvements                               -            -      1,679,965              -     1,679,965
Unrestricted                                   3,078,967   14,633,691     19,455,987     15,235,612    52,404,257
            Total Net Assets              $    5,600,115   45,285,353     57,882,986     30,466,576   139,235,030




                                                           75
                                      CITY OF FORT LAUDERDALE, FLORIDA
                COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
                                    NONMAJOR ENTERPRISE FUNDS
                            FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




                                                             PARKING
                                              SANITATION     SYSTEM        AIRPORT       STORMWATER      TOTAL
OPERATING REVENUES
Charges for Services                      $    15,298,927     9,750,026     3,304,975      5,215,417     33,569,345
Parking Citations                                       -     2,610,755             -              -      2,610,755
Equity in Earnings of Joint Venture                     -       120,390             -              -        120,390
Private Collectors Operating Fees               3,939,758             -             -              -      3,939,758
Land and Operator Leases                                -             -     3,200,078              -      3,200,078
Other                                           2,845,986         8,316       478,797          5,902      3,339,001
        Total Operating Revenues               22,084,671    12,489,487     6,983,850      5,221,319     46,779,327

OPERATING EXPENSES
Personal Services                               4,827,537     4,919,413     1,437,773      1,600,882     12,785,605
Current Expenses                               15,324,887     4,628,944     4,398,898      1,758,888     26,111,617
Depreciation                                      146,152     1,109,506     2,152,193        681,327      4,089,178
       Total Operating Expenses                20,298,576    10,657,863     7,988,864      4,041,097     42,986,400
       Operating Income (Loss)                  1,786,095     1,831,624    (1,005,014)     1,180,222      3,792,927

NON-OPERATING REVENUES
Revenues
   Interest                                       74,593          64,821      96,343        169,194        404,951
   Other                                               -               -     282,568              -        282,568
        Total                                     74,593          64,821     378,911        169,194        687,519
Expenses
   Interest and Fiscal Charges                         -               -           -          1,525          1,525
        Total                                          -               -           -          1,525          1,525
        Total Non-Operating Revenues              74,593          64,821     378,911        167,669        685,994
        Income Before Contributions and
            Transfers                           1,860,688     1,896,445      (626,103)     1,347,891      4,478,921
Capital Contributions                                   -             -       331,426        516,830        848,256
Transfers Out                                    (107,742)     (637,913)      (21,994)       (31,892)      (799,541)

Change In Net Assets                            1,752,946     1,258,532      (316,671)     1,832,829      4,527,636

Net Assets - Beginning of Period                3,847,169    44,026,821    58,199,657     28,633,747    134,707,394

Net Assets - End of Period                $     5,600,115    45,285,353    57,882,986     30,466,576    139,235,030




                                                             76
                                         CITY OF FORT LAUDERDALE, FLORIDA
                                     COMBINING STATEMENT OF CASH FLOWS
                                         NONMAJOR ENTERPRISE FUNDS
                                 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011



                                                                PARKING
                                                 SANITATION     SYSTEM        AIRPORT       STORMWATER       TOTAL
CASH FLOWS FROM OPERATING
    ACTIVITIES
Receipts from Customers                   $       21,979,777    12,155,816     6,431,176       5,260,565     45,827,334
Receipts from Other Funds                            215,721       213,155       559,590             764        989,230
Payments to Suppliers                            (15,078,457)   (2,056,517)   (2,477,372)     (1,052,751)   (20,665,097)
Payments for Services of Employees                (4,693,300)   (4,757,762)   (1,362,365)     (1,567,874)   (12,381,301)
Payments to Other Funds                           (2,818,636)   (2,524,004)   (2,625,989)       (604,907)    (8,573,536)
    Net Cash Provided (Used) by Operating
          Activities                               (394,895)     3,030,688      525,040       2,035,797      5,196,630

CASH FLOWS FROM NON-CAPITAL
    FINANCING ACTIVITIES
Operating Grant Receipts                                  -              -      248,680               -        248,680
Transfers to Other Funds                           (107,742)      (637,913)     (21,994)        (31,892)      (799,541)
    Net Cash Provided (Used) by Non-
          Capital Financing Activities             (107,742)      (637,913)     226,686         (31,892)      (550,861)

CASH FLOWS FROM CAPITAL AND
     RELATED FINANCING ACTIVITIES
Proceeds from Disposal of Fixed Assets                     -             -        33,888              -          33,888
Capital Contributions                                      -             -       900,795        194,061       1,094,856
Investment in Joint Venture                                -       168,402             -              -         168,402
Acquisition of Capital Assets                        (97,412)   (1,140,553)   (1,623,995)      (841,313)     (3,703,273)
     Net Cash Used by Capital and
          Related Financing Activities               (97,412)     (972,151)     (689,312)      (647,252)     (2,406,127)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and Dividends on Investments                74,593         64,821       96,343         169,194        404,951
     Net Cash Provided by Investing Activities       74,593         64,821       96,343         169,194        404,951

Net Increase (Decrease) In Cash and Cash
     Equivalents                                   (525,456)     1,485,445      158,757       1,525,847      2,644,593

Cash and Cash Equivalents - Beginning
    of Period                                     5,638,305     13,407,567    21,381,920     13,028,247     53,456,039

Cash and Cash Equivalents - End of
    Period                                  $     5,112,849     14,893,012    21,540,677     14,554,094     56,100,632




                                                                                                Continued on Next Page

                                                          77
                                    CITY OF FORT LAUDERDALE, FLORIDA
                                   COMBINING STATEMENT OF CASH FLOWS
                                       NONMAJOR ENTERPRISE FUNDS
                               FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011



                                                              PARKING
                                               SANITATION     SYSTEM        AIRPORT       STORMWATER       TOTAL
RECONCILIATION OF OPERATING INCOME
   (LOSS) TO NET CASH PROVIDED (USED)
   BY OPERATING ACTIVITIES

OPERATING INCOME (LOSS)                  $       1,786,095    1,831,624     (1,005,014)     1,180,222     3,792,927

ADJUSTMENTS TO RECONCILE OPERATING
     INCOME (LOSS) TO NET CASH
     PROVIDED (USED) BY OPERATING
     ACTIVITIES
Depreciation                                      146,152     1,109,506     2,152,193        681,327      4,089,178
Equity in Earnings of Joint Venture                     -      (120,390)            -              -       (120,390)
Changes in Assets and Liabilities
     (Increase) Decrease in Accounts
           Receivables                            199,619               -       6,916        (106,989)        99,546
     Increase in Unbilled Service                 (30,214)              -           -               -        (30,214)
     Increase in Due from Other
           Governments                             (97,736)          -              -              -         (97,736)
     Increase (Decrease) in Vouchers Payable      (168,288)     50,745       (704,463)       101,230        (720,776)
     Increase in Accrued Payroll                    14,561      25,913          4,879          8,871          54,224
     Decrease in Due to Other Governments                -      (2,322)             -              -          (2,322)
     Increase in Deposits Payable from
           Restricted Assets                       39,158               -             -             -        39,158
     Increase (Decrease) in Compensated
           Absences and Longevity                   32,559       39,018        46,938         (4,499)        114,016
     Increase in Net OPEB Obligation                87,117       96,720        23,591         28,636         236,064
     Decrease in Deposits                                -         (126)            -              -            (126)
     Increase in Unearned Revenue                        -            -             -        146,999         146,999
     Decrease in Landfill Closure Costs         (2,403,918)           -             -              -      (2,403,918)
           Total Adjustments                    (2,180,990)   1,199,064     1,530,054        855,575       1,403,703

NET CASH PROVIDED (USED) BY
    OPERATING ACTIVITIES                 $        (394,895)   3,030,688       525,040       2,035,797     5,196,630




                                                                                            Continued from Prior Page

                                                        78
                                      CITY OF FORT LAUDERDALE, FLORIDA
                                          COMBINING STATEMENT OF NET ASSETS
                                               INTERNAL SERVICE FUNDS
                                                  SEPTEMBER 30, 2011


                                                             CITY      CENTRAL      VEHICLE
                                                          INSURANCE    SERVICES     RENTAL        TOTAL

ASSETS
Current Assets
   Cash and Cash Equivalents                          $   50,837,984    1,463,986   23,543,463   75,845,433
   Receivables
       Accounts and Notes (Net of $3,500
           Allowance for Uncollectibles)                    575,232       12,411       11,795      599,438
   Restricted Assets
       Cash and Cash Equivalents                                   -            -       28,631       28,631
           Total Current Assets                           51,413,216    1,476,397   23,583,889   76,473,502
Noncurrent Assets
   Deposits                                                   25,000            -            -       25,000
   Capital Assets (Net of Accumulated Depreciation)           87,167      234,527   19,610,051   19,931,745
           Total Noncurrent Assets                           112,167      234,527   19,610,051   19,956,745
           Total Assets                                   51,525,383    1,710,924   43,193,940   96,430,247

LIABILITIES
Current Liabilities
   Vouchers Payable                                          416,681      18,773       204,779      640,233
   Accrued Payroll                                            29,762      32,541         7,172       69,475
   Current Portion of Long-Term Debt                      10,194,599      17,922     1,168,705   11,381,226
   Payable from Restricted Assets
       Accrued Interest                                            -           -        28,631       28,631
           Total Current Liabilities                      10,641,042      69,236     1,409,287   12,119,565
Noncurrent Liabilities
   Deposits                                                  221,381           -             -      221,381
   Net OPEB Obligation                                        38,082      46,156        15,236       99,474
   Long-Term Debt                                         23,601,773     114,171     5,954,830   29,670,774
           Total Noncurrent Liabilities                   23,861,236     160,327     5,970,066   29,991,629
           Total Liabilities                              34,502,278     229,563     7,379,353   42,111,194

NET ASSETS
Invested in Capital Assets, Net of Related Debt               87,167      234,527   12,499,167   12,820,861
Unrestricted                                              16,935,938    1,246,834   23,315,420   41,498,192
           Total Net Assets                           $   17,023,105    1,481,361   35,814,587   54,319,053




                                                           79
                                      CITY OF FORT LAUDERDALE, FLORIDA
                COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
                                       INTERNAL SERVICE FUNDS
                            FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                            CITY        CENTRAL      VEHICLE
                                                         INSURANCE      SERVICES     RENTAL         TOTAL

OPERATING REVENUES
Charges for Services
   Premiums                                          $   40,206,342              -            -    40,206,342
   Printing                                                       -        378,725            -       378,725
   Communications                                                 -      2,780,153            -     2,780,153
   Vehicle Rental                                                 -              -   11,555,261    11,555,261
           Total                                         40,206,342      3,158,878   11,555,261    54,920,481
Other
   Miscellaneous                                              3,344         35,210      621,063       659,617
           Total                                              3,344         35,210      621,063       659,617
           Total Operating Revenues                      40,209,686      3,194,088   12,176,324    55,580,098

OPERATING EXPENSES
Personal Services                                         1,098,765      1,195,954      334,513     2,629,232
Current Expenses                                         36,745,715      1,630,067   10,666,953    49,042,735
Depreciation                                                 11,944        254,851    6,958,329     7,225,124
           Total Operating Expenses                      37,856,424      3,080,872   17,959,795    58,897,091
           Operating Income (Loss)                        2,353,262        113,216   (5,783,471)   (3,316,993)

NON-OPERATING REVENUES (EXPENSES)
Revenues
   Interest on Pooled Investments                             211,884       5,534      109,239       326,657
           Total                                              211,884       5,534      109,239       326,657
Expenses
   Interest and Fiscal Charges                                    -             -       420,895       420,895
   Loss on Disposal of Capital Assets                             -             -       346,047       346,047
           Total                                                  -             -       766,942       766,942
           Total Non-Operating Revenues (Expenses)          211,884         5,534      (657,703)     (440,285)
           Income (Loss) Before Transfers                 2,565,146       118,750    (6,441,174)   (3,757,278)
Transfers Out                                                     -       (29,848)     (320,161)     (350,009)

Changes in Net Assets                                     2,565,146        88,902    (6,761,335)   (4,107,287)

Net Assets - Beginning of Period                         14,457,959      1,392,459   42,575,922    58,426,340

Net Assets - End of Period                           $   17,023,105      1,481,361   35,814,587    54,319,053




                                                         80
                                      CITY OF FORT LAUDERDALE, FLORIDA
                                     COMBINING STATEMENT OF CASH FLOWS
                                            INTERNAL SERVICE FUNDS
                                 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                         CITY        CENTRAL       VEHICLE
                                                      INSURANCE      SERVICES      RENTAL           TOTAL

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Other Funds                         $    40,206,342     3,265,391     12,172,080     55,643,813
Other Operating Receipts                                    3,344             -              -          3,344
Payments to Suppliers                                 (37,950,246)   (1,464,767)   (10,380,027)   (49,795,040)
Payments for Services of Employees                     (1,062,015)   (1,157,142)      (333,049)    (2,552,206)
Payments to Other Funds                                  (188,128)     (209,176)      (415,862)      (813,166)
    Net Cash Provided by Operating Activities           1,009,297       434,306      1,043,142      2,486,745

CASH FLOWS FROM NON-CAPITAL FINANCING
    ACTIVITIES
Transfers to Other Funds                                         -      (29,848)     (320,161)       (350,009)
    Net Cash Used by Non-Capital
          Financing Activities                                   -      (29,848)     (320,161)       (350,009)

CASH FLOWS FROM CAPITAL AND RELATED
     FINANCING ACTIVITIES
Acquisition of Capital Assets                                    -      (26,080)    (2,227,520)    (2,253,600)
Retirement of Debt                                               -            -     (1,267,688)    (1,267,688)
Interest Paid on Debt                                            -            -       (395,547)      (395,547)
     Net Cash Used by Capital and
          Related Financing Activities                           -      (26,080)    (3,890,755)    (3,916,835)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and Dividends on Investments                      211,884       5,534        109,239         326,657
     Net Cash Provided by Investing Activities             211,884       5,534        109,239         326,657

Net Increase (Decrease) In Cash and
     Cash Equivalents                                   1,221,181      383,912      (3,058,535)    (1,453,442)

Cash and Cash Equivalents - Beginning of Period        49,616,803     1,080,074    26,630,629      77,327,506

Cash and Cash Equivalents - End of Period         $    50,837,984     1,463,986    23,572,094      75,874,064




                                                                                        Continued on next page

                                                      81
                                    CITY OF FORT LAUDERDALE, FLORIDA
                                   COMBINING STATEMENT OF CASH FLOWS
                                          INTERNAL SERVICE FUNDS
                               FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                            CITY        CENTRAL       VEHICLE
                                                         INSURANCE      SERVICES      RENTAL           TOTAL

RECONCILIATION OF OPERATING INCOME
   (LOSS) TO NET CASH PROVIDED BY
   OPERATING ACTIVITIES

OPERATING INCOME (LOSS)                              $    2,353,262       113,216     (5,783,471)     (3,316,993)

ADJUSTMENTS TO RECONCILE OPERATING
    INCOME (LOSS) TO NET CASH PROVIDED
    BY OPERATING ACTIVITIES
Depreciation                                                  11,944      254,851     6,958,329       7,225,124
Changes in Assets and Liabilities
    (Increase) Decrease in Accounts Receivable             (433,310)        71,303       (4,244)        (366,251)
    Increase (Decrease) in Vouchers Payable                  12,466        (43,876)    (128,936)        (160,346)
    Increase (Decrease) in Accrued Payroll                    3,685          3,866       (2,398)           5,153
    Decrease in Estimated Insurance Claims Payable         (380,878)             -            -         (380,878)
    Increase (Decrease) in Compensated Absences
          and Longevity                                       25,324       17,499        (2,037)         40,786
    Increase in Net OPEB Obligation                            7,741       17,447         5,899          31,087
    Decrease in Deposits                                    (590,937)           -             -        (590,937)
          Total Adjustments                               (1,343,965)     321,090     6,826,613       5,803,738

NET CASH PROVIDED BY OPERATING
    ACTIVITIES                                       $    1,009,297       434,306     1,043,142       2,486,745




                                                                                        Continued from Prior Page
                                                         82
THIS PAGE INTENTIONALLY LEFT BLANK
                                         Fiduciary Funds


                                       Pension Trust Funds

The General Employees’ and Police and Fire pension trust funds are used to account for the
accumulation of resources to be used for retirement benefit payments to City employees. Resources are
contributed by employees at rates fixed by law and by the City at amounts determined by annual
actuarial valuations.

                                            Agency Fund

The Arts and Science District Garage Fund – to account for the operations of the Arts and Science
District Garage.
                                     CITY OF FORT LAUDERDALE, FLORIDA
                               COMBINING STATEMENT OF FIDUCIARY NET ASSETS
                                      PENSION TRUST FIDUCIARY FUNDS
                                            SEPTEMBER 30, 2011




                                                                             POLICE
                                                              GENERAL         AND
                                                             EMPLOYEES        FIRE         TOTAL

ASSETS
Cash and Cash Equivalents                                $         4,638     17,798,678    17,803,316
Investments, at Fair Value
     U.S. Treasury Securities                                    778,479    26,183,598     26,962,077
     Federal Instrumentalities                                30,025,856    44,618,327     74,644,183
     Corporate Obligations                                    33,924,166    58,600,924     92,525,090
     Other Bonds                                                       -    12,464,435     12,464,435
     Mutual Funds and Other                                   68,357,247    18,502,396     86,859,643
     Money Market Funds                                        5,710,384             -      5,710,384
     Common and Preferred Stock                              164,853,521   193,199,741    358,053,262
     Real Estate                                               3,190,000    38,920,495     42,110,495
     Venture Capital and Partnerships                                  -    28,954,543     28,954,543
          Total Investments                                  306,839,653   421,444,459    728,284,112
Receivables
     Accounts                                                  2,219,035        396,115     2,615,150
     Accrued Dividends and Interest                              927,730      1,568,330     2,496,060
Deposits                                                           4,050              -         4,050
Capital Assets (Net of Accumulated
     Depreciation)                                                20,914           942         21,856
          Total Assets                                       310,016,020   441,208,524    751,224,544

LIABILITIES
Vouchers Payable                                               2,079,321      2,059,435     4,138,756
Accrued Payroll                                                    6,504          8,714        15,218
Due to Primary Government                                        471,429      2,470,464     2,941,893
Deposits                                                          13,500              -        13,500
Unearned Revenues                                                      -     15,000,000    15,000,000
          Total Liabilities                                    2,570,754     19,538,613    22,109,367

NET ASSETS
Held in Trust for Pension Benefits                       $   307,445,266   421,669,911    729,115,177




                                                    83
                                     CITY OF FORT LAUDERDALE, FLORIDA
                            COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
                                        PENSION TRUST FIDUCIARY FUNDS
                                 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                               POLICE
                                                               GENERAL          AND
                                                              EMPLOYEES         FIRE          TOTAL
ADDITIONS
Contributions
     City                                                 $    21,498,801      30,441,767     51,940,568
     Employee                                                   4,277,966       5,132,964      9,410,930
     State                                                              -       4,735,930      4,735,930
     County                                                        35,242               -         35,242
           Total                                               25,812,009      40,310,661     66,122,670

Investment Income (Loss)
     Interest                                                   4,095,205       4,856,792      8,951,997
     Dividends                                                  3,166,206       1,964,663      5,130,869
     Net Change in Fair Value of Investments                   (9,390,722)     (6,072,041)   (15,462,763)
     Other                                                        234,649       1,699,383      1,934,032
           Total                                               (1,894,662)      2,448,797        554,135
     Investment Expense                                         1,766,011       1,821,469      3,587,480
           Net Investment Income (Loss)                        (3,660,673)        627,328     (3,033,345)

Other Income                                                       10,459        114,606        125,065

          Total Additions                                      22,161,795      41,052,595     63,214,390

DEDUCTIONS
Benefits Paid
    Retirement                                                 25,379,963      34,923,178     60,303,141
    Disability                                                    524,711         743,192      1,267,903
    Death                                                       2,722,822       2,935,246      5,658,068
          Total                                                28,627,496      38,601,616     67,229,112

Employee Contribution Refunds                                     222,317        198,757        421,074

Administrative Costs                                              388,201        531,920        920,121

          Total Deductions                                     29,238,014      39,332,293     68,570,307

Change In Net Assets                                            (7,076,219)     1,720,302     (5,355,917)

Net Assets - Beginning of Period                              314,521,485     419,949,609    734,471,094

Net Assets - End of Period                                $   307,445,266     421,669,911    729,115,177




                                                     84
                                 CITY OF FORT LAUDERDALE, FLORIDA
                             STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                             ARTS AND SCIENCE DISTRICT GARAGE AGENCY FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                     BALANCE                                 BALANCE
                                                    BEGINNING                                  END
                                                    OF PERIOD     ADDITIONS    DELETIONS    OF PERIOD

ASSETS

Cash and Cash Equivalents                       $        37,426    1,336,708    1,311,774      62,360
Due from Other Governments                                2,074       15,399        2,074      15,399

                                                $        39,500    1,352,107    1,313,848      77,759

LIABILITIES

Vouchers Payable                                $         9,910       2,496        9,910        2,496
Accrued Payroll                                           5,545       4,303        5,545        4,303
Due to Other Governments                                 24,045      65,478       24,045       65,478
Compensated Absences and Longevity                            -       5,482            -        5,482

                                                $        39,500      77,759       39,500       77,759




                                                    85
OTHER FINANCIAL
 INFORMATION
                                          CITY OF FORT LAUDERDALE, FLORIDA
             SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - BUDGET BASIS
                      COMMUNITY REDEVELOPMENT AGENCY SPECIAL REVENUE FUND
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




                                                                                 BUDGET               ACTUAL            VARIANCE
REVENUES AND OTHER FINANCING SOURCES
Revenues
    Intergovernmental
         Other Local Units Shared
            Broward County                                                $      4,874,466            5,126,262           251,796
            North Broward Hospital District                                      1,704,316            1,887,738           183,422
            Children's Services Council                                            423,906              472,790            48,884
    Other
       Interest                                                                    200,000              145,454           (54,546)
       Miscellaneous                                                                 1,480                7,972             6,492
                Total Revenues                                                   7,204,168            7,640,216           436,048

Other Financing Sources
    Proceeds from Debt Issuance                                                      25,000                     -          (25,000)
    Transfers In
        General Fund                                                             4,178,305            4,138,538           (39,767)
        Parking System Fund                                                        540,724              538,969            (1,755)
                 Total Other Financing Sources                                   4,744,029            4,677,507           (66,522)
                Total Revenues and Other Financing Sources                      11,948,197           12,317,723           369,526

EXPENDITURES AND OTHER FINANCING USES
Current
    Economic Environment
       Planning and Economic Development                                         3,137,474            2,727,025           410,449
               Total Economic Environment                                        3,137,474            2,727,025           410,449
                Total Expenditures                                               3,137,474            2,727,025           410,449

Other Financing Uses
   Transfers Out
        Tax Increment Revenue Bonds Fund                                         1,480,142            1,474,377              5,765
        Community Redevelopment Agency Projects Fund                               904,044            2,125,830         (1,221,786)
                Total Other Financing Uses                                       2,384,186            3,600,207         (1,216,021)
                Total Expenditures and Other Financing Uses                      5,521,660            6,327,232           (805,572)
                Excess Revenues and Other Financing Sources Over
                    (Under) Expenditures and Other Financing Uses         $      6,426,537            5,990,491           (436,046)




The above schedule reflects certain adjustments to actual revenues and expenses to present data on a basis comparable
to adopted budgets.

                                                                   86
                                         CITY OF FORT LAUDERDALE, FLORIDA
             SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - BUDGET BASIS
                        BEACH BUSINESS IMPROVEMENTS SPECIAL REVENUE FUND
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




                                                                                 BUDGET               ACTUAL            VARIANCE
REVENUES
Revenues
    Other
       Interest                                                           $          1,336                1,531               195
       Assessments                                                                 530,000              576,183            46,183
                Total Revenues                                                     531,336              577,714            46,378

EXPENDITURES
Current
    Economic Environment
       Economic Development                                                        541,077              543,316             (2,239)
               Total Economic Environment                                          541,077              543,316             (2,239)
                Total Expenditures                                                 541,077              543,316             (2,239)

                Excess Revenues Over (Under) Expenditures                 $          (9,741)              34,398           44,139




The above schedule reflects certain adjustments to actual revenues and expenses to present data on a basis comparable
to adopted budgets.

                                                                   87
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                                         CITY OF FORT LAUDERDALE, FLORIDA
              SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - BUDGET BASIS
                                            BUILDING FUND
                            FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




                                                                                 BUDGET               ACTUAL            VARIANCE
REVENUES AND OTHER FINANCING SOURCES
Revenues
    Licenses and Permits
        Contractor Permits                                                $      7,781,902           10,611,017          2,829,115
    Charges for Services                                                            55,500               23,752            (31,748)
    Other
        Interest                                                                         -               12,407             12,407
        Miscellaneous                                                                    -               11,153             11,153
                Total Revenues                                                   7,837,402           10,658,329          2,820,927

Other Financing Sources
    Transfers In
        General Fund                                                               509,726              509,726                  -
                 Total Other Financing Sources                                     509,726              509,726                  -
                Total Revenues and Other Financing Sources                       8,347,128           11,168,055          2,820,927

EXPENDITURES AND OTHER FINANCING USES
Current
    Public Safety
       Building Services                                                         6,955,795            6,683,613           272,182
                 Total Public Safety                                             6,955,795            6,683,613           272,182
                Total Expenditures                                               6,955,795            6,683,613           272,182

                Excess Revenues and Other Financing Sources Over
                   (Under) Expenditures                                   $      1,391,333            4,484,442          3,093,109




The above schedule reflects certain adjustments to actual revenues and expenses to present data on a basis comparable
to adopted budgets.
                                                                   88
                                        CITY OF FORT LAUDERDALE, FLORIDA
            SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - BUDGET BASIS
                                      DEBT SERVICE FUNDS
                          FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




                                                                                             TAX INCREMENT REVENUE BONDS
                                                                                            BUDGET      ACTUAL    VARIANCE

REVENUES AND OTHER FINANCING SOURCES
Revenues
    Property Taxes
         Current                                                                        $             -                 -        -
         Delinquent                                                                                   -                 -        -
         Discounts                                                                                    -                 -        -
         Interest and Penalties                                                                       -                 -        -
    Interest
         Pooled Investments                                                                           -                 -        -
         Property Tax Collections                                                                     -                 -        -
              Total Revenues                                                                          -                 -        -

Other Financing Sources
    Transfers In
         General Fund                                                                                -              -            -
         Intergovernmental Revenue Fund                                                              -              -            -
         Community Redevelopment Agency Fund                                                 1,480,142      1,474,377       (5,765)
         Central Services Fund                                                                       -              -            -
    Debt Issuance                                                                                    -              -            -
    Premiums on Debt Issuance                                                                        -              -            -
             Total Other Financing Sources                                                   1,480,142      1,474,377       (5,765)
             Total Revenues and Other
                 Financing Sources                                                           1,480,142      1,474,377       (5,765)

EXPENDITURES AND OTHER FINANCING USES
Debt Service
    Principal Retirement                                                                     1,277,000      1,277,000           -
    Interest and Fiscal Charges                                                                203,142        197,377       5,765
    Cost of Issuance                                                                                 -              -           -
              Total Expenditures                                                             1,480,142      1,474,377       5,765

Other Financing Uses
    Payments to Refunding Debt Escrow Agent                                                           -                 -        -
             Total Expenditures and Other
                  Financing Uses                                                             1,480,142      1,474,377       5,765

             Excess Revenues and Other
                 Financing Sources Over
                 (Under) Expenditures                                                   $             -                 -        -




The above schedule reflects certain adjustments to actual revenues and expenses to present data on a basis comparable
to adopted budgets.
                                                                    89
             GENERAL OBLIGATION BONDS                                    SPECIAL OBLIGATION LOANS
BUDGET                ACTUAL            VARIANCE           BUDGET                 ACTUAL            VARIANCE




5,313,885             5,230,128            (83,757)                 -                     -                  -
   35,600                16,578            (19,022)                 -                     -                  -
 (268,268)             (175,128)            93,140                  -                     -                  -
   10,600                12,325              1,725                  -                     -                  -

    1,100                    11             (1,089)                 -                     -                  -
        -                   185                185                  -                     -                  -
5,092,917             5,084,099             (8,818)                 -                     -                  -




         -                    -                  -          3,190,526             3,167,048            (23,478)
         -                    -                  -            122,583               129,736              7,153
         -                    -                  -                  -                     -                  -
         -                    -                  -             29,848                29,848                  -
         -           13,980,000         13,980,000         24,110,000            24,110,000                  -
         -              649,762            649,762                  -                     -                  -
         -           14,629,762         14,629,762         27,452,957            27,436,632            (16,325)

5,092,917            19,713,861         14,620,944         27,452,957            27,436,632            (16,325)




3,210,000             2,545,000            665,000          3,856,932             2,465,600          1,391,332
1,926,127             1,337,739            588,388           (528,975)              863,105         (1,392,080)
        -               113,661           (113,661)           102,673                85,600             17,073
5,136,127             3,996,400          1,139,727          3,430,630             3,414,305             16,325



         -                    -                  -         24,022,327            24,022,327                  -

5,136,127             3,996,400          1,139,727         27,452,957            27,436,632            16,325




  (43,210)           15,717,461         15,760,671                  -                     -                  -




                                                      90
                                         CITY OF FORT LAUDERDALE, FLORIDA
             SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - BUDGET BASIS
                                       PERPETUAL CARE FUND
                           FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




                                                                                 BUDGET               ACTUAL            VARIANCE
REVENUES
Revenues
    Interest and Dividends                                                $          615,000              702,068            87,068
    Net Change in Fair Value of Investments                                                -             (359,384)         (359,384)
    Other
         Sale of Cemetery Plots                                                      600,000              578,150           (21,850)
         Miscellaneous                                                                     -                3,603             3,603
                Total Revenues                                                     1,215,000              924,437          (290,563)


EXPENDITURES AND OTHER FINANCING USES
Current
    Physical Environment
       Business Enterprises                                                          775,000              790,084           (15,084)
                Total Physical Environment                                           775,000              790,084           (15,084)
                Total Expenditures                                                   775,000              790,084           (15,084)


Other Financing Uses
   Transfers Out
        General Capital Projects Fund                                                200,000              200,000                  -
                Total Other Financing Uses                                           200,000              200,000                  -
                Total Expenditures and Other Financing Uses                          975,000              990,084           (15,084)
                Excess Revenues and Other Financing Sources Over
                    (Under) Expenditures and Other Uses                   $          240,000              (65,647)         (305,647)




The above schedule reflects certain adjustments to actual revenues and expenses to present data on a basis comparable
to adopted budgets.
                                                                   91
                                           CITY OF FORT LAUDERDALE, FLORIDA
                  SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                          WATER AND SEWER FUND
                               FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                 BUDGET                  ACTUAL          VARIANCE
REVENUES
Charges for Services
     Water Sales                                                            $    61,330,000              59,184,112      (2,145,888)
     Water and Sewer Service Installation                                         1,615,500               2,187,260         571,760
     Sewer Service Charges - City                                                39,100,000              39,828,934         728,934
     Sewer Service Charges - Regional                                             3,892,610               3,233,484        (659,126)
Interest                                                                            360,000                 661,070         301,070
Other                                                                             5,351,728               4,389,574        (962,154)
              Total Revenues                                                    111,649,838             109,484,434      (2,165,404)

EXPENSES
Personal Services                                                                30,706,860              30,079,234         627,626
Current Expenses                                                                 41,174,067              35,578,808       5,595,259
Capital Outlay                                                                      783,547                 782,727             820
Debt Service                                                                     33,380,118              33,262,702         117,416
Transfers Out                                                                                                                     -
     General Fund                                                                   283,359                 283,359               -
               Total Expenses                                                   106,327,951              99,986,830       6,341,121

     Excess Revenues Over (Under) Expenses                                  $      5,321,887                 9,497,604    4,175,717



                  SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                             SANITATION FUND
                               FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                 BUDGET                  ACTUAL          VARIANCE
REVENUES
Charges for Services
     Refuse Collection Fees                                                 $    14,628,708              14,506,774        (121,934)
     Private Collectors Operating Fees                                            4,565,000               3,939,758        (625,242)
     Wingate Remediation Fee                                                        802,000                 798,341          (3,659)
Interest                                                                             76,000                  74,593          (1,407)
Other                                                                             2,620,050               2,839,798         219,748
               Total Revenues                                                    22,691,758              22,159,264        (532,494)

EXPENSES
Personal Services                                                                 5,014,438               4,827,537         186,901
Current Expenses                                                                 17,516,747              15,377,772       2,138,975
Capital Outlay                                                                        2,300                       -           2,300
Transfers Out
     General Fund                                                                    92,742                  92,742               -
     Intergovernmental Revenue Fund                                                  15,000                  15,000               -
               Total Expenses                                                    22,641,227              20,313,051       2,328,176

     Excess Revenues Over (Under) Expenses                                  $         50,531                 1,846,213    1,795,682




The above schedules reflect certain adjustments to actual revenues and expenses to present data on a basis
comparable to adopted budgets.

                                                                   92
                                          CITY OF FORT LAUDERDALE, FLORIDA
                 SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                          PARKING SYSTEM FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                    BUDGET               ACTUAL          VARIANCE
REVENUES
Charges for Services
     Street Meters                                                             $    3,715,000            4,157,282         442,282
     Lot Meters                                                                     2,073,700            2,609,270         535,570
     Lot Attendant                                                                    440,000              436,927          (3,073)
     Parking Permits                                                                1,562,060            1,629,012          66,952
     Parking Garage                                                                   715,000              704,380         (10,620)
Parking Citations                                                                   2,615,000            2,610,755          (4,245)
Equity in Earnings of Joint Venture                                                   125,000              120,390          (4,610)
Interest                                                                               67,200               64,821          (2,379)
Other                                                                                 136,413              221,471          85,058
               Total Revenues                                                      11,449,373           12,554,308       1,104,935

EXPENSES
Personal Services                                                                   5,110,602                4,919,413     191,189
Current Expenses                                                                    5,857,405                4,813,159   1,044,246
Capital Outlay                                                                        230,490                  230,490           -
Transfers Out
     General Fund                                                                      83,945               83,945               -
     Community Redevelopment Agency Fund                                              540,724              538,969           1,755
     Central Services Fund                                                                  -                    -               -
     Vehicle Rental Fund                                                                    -                    -               -
               Total Expenses                                                      11,823,166           10,585,976       1,237,190

     Excess Revenues Over (Under) Expenses                                     $      (373,793)              1,968,332   2,342,125



                 SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                              AIRPORT FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                    BUDGET               ACTUAL          VARIANCE
REVENUES
Land and Operator Leases                                                       $    5,271,773                5,368,624      96,851
Fuel Commissions                                                                      752,500                1,136,429     383,929
Interest                                                                              103,622                   89,259     (14,363)
Other                                                                                 660,917                  512,686    (148,231)
             Total Revenues                                                         6,788,812                7,106,998     318,186

EXPENSES
Personal Services                                                                   1,518,573                1,437,773      80,800
Current Expenses                                                                    4,721,493                4,248,381     473,112
Capital Outlay                                                                          9,230                    8,735         495
Transfers Out                                                                                                                    -
     General Fund                                                                      21,994                   21,994           -
               Total Expenses                                                       6,271,290                5,716,883     554,407

     Excess Revenues Over (Under) Expenses                                     $      517,522                1,390,115     872,593




The above schedules reflect certain adjustments to actual revenues and expenses to present data on a basis
comparable to adopted budgets.

                                                                   93
                                          CITY OF FORT LAUDERDALE, FLORIDA
                SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                          STORMWATER FUND
                             FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                    BUDGET               ACTUAL            VARIANCE
REVENUES
Stormwater Fees                                                                 $   4,977,787           5,215,417           237,630
Interest                                                                               60,000             169,194           109,194
Other                                                                                   6,000               5,902               (98)
             Total Revenues                                                         5,043,787           5,390,513           346,726

EXPENSES
Personal Services                                                                   1,712,117           1,600,883           111,234
Current Expenses                                                                    1,393,315           1,327,257            66,058
Capital Outlay                                                                        107,785              83,785            24,000
Debt Service                                                                                -               1,525            (1,525)
Transfers Out
     General Fund                                                                      31,892              31,892                 -
               Total Expenses                                                       3,245,109           3,045,342           199,767

     Excess Revenues Over (Under) Expenses                                      $   1,798,678           2,345,171           546,493




The above schedule reflects certain adjustments to actual revenues and expenses to present data on a basis comparable to
adopted budgets.
                                                                   94
                                          CITY OF FORT LAUDERDALE, FLORIDA
                 SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                          CITY INSURANCE FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                 BUDGET                ACTUAL           VARIANCE
REVENUES
Premiums                                                                    $    39,289,419           40,206,342          916,923
Interest                                                                            240,000              211,884          (28,116)
Other                                                                                 2,000                3,344            1,344
                Total Revenues                                                   39,531,419           40,421,570          890,151

EXPENSES
Human Resources
   Current Expenses                                                                  83,239                51,859          31,380

Finance
     Personal Services                                                            1,079,900            1,107,170          (27,270)
     Current Expenses                                                               637,387              470,493          166,894
     Capital Outlay                                                                       -                    -                -
               Total                                                              1,717,287            1,577,663          139,624

Insurance
     Personal Services                                                                    -               (8,405)            8,405
     Current Expenses                                                            40,387,946           37,261,199         3,126,747
              Total                                                              40,387,946           37,252,794         3,135,152

                Total Expenses                                                   42,188,472           38,882,316         3,306,156

                Excess Revenues Over (Under) Expenses                       $    (2,657,053)           1,539,254         4,196,307



                 SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                         CENTRAL SERVICES FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                 BUDGET                ACTUAL           VARIANCE
REVENUES
Service Charges
     Printing                                                               $       526,520              378,725          (147,795)
     Communications                                                               2,845,654            2,780,153           (65,501)
Interest                                                                              4,000                5,534             1,534
Other                                                                                28,370               35,210             6,840
           Total Revenues                                                         3,404,544            3,199,622          (204,922)

EXPENSES
Personal Services                                                                 1,174,253            1,195,954          (21,701)
Current Expenses                                                                  2,172,421            1,692,319          480,102
Capital Outlay                                                                       97,763               87,742           10,021
Transfers Out
     Special Obligation Loans Fund                                                   29,848               29,848                -
          Total Expenses                                                          3,474,285            3,005,863          468,422

           Excess Revenues Over (Under) Expenses                            $        (69,741)            193,759          263,500



The above schedules reflect certain adjustments to actual revenues and expenses to present data on a basis comparable
to adopted budget.

                                                                   95
                                          CITY OF FORT LAUDERDALE, FLORIDA
                 SCHEDULE OF REVENUES AND EXPENSES COMPARED TO BUDGET - BUDGET BASIS
                                          VEHICLE RENTAL FUND
                              FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011


                                                                                 BUDGET                ACTUAL           VARIANCE
REVENUES
Vehicle Rental
     Operating                                                              $    10,667,177           11,555,261           888,084
     Replacement                                                                    608,327                    -          (608,327)
Loss on Disposal of Capital Assets                                                        -             (346,047)         (346,047)
Interest                                                                            121,000              109,239           (11,761)
Other                                                                               787,577              621,063          (166,514)
         Total Revenues                                                          12,184,081           11,939,516          (244,565)

EXPENSES
Personal Services                                                                   406,880              334,513            72,367
Current Expenses                                                                 10,895,271           10,668,789           226,482
Capital Outlay                                                                    4,587,351            2,277,142         2,310,209
Debt Service                                                                      5,655,886            1,686,314         3,969,572
Transfers Out
     General Fund                                                                   320,161              320,161                 -
          Total Expenses                                                         21,865,549           15,286,919         6,578,630

           Excess Revenues Over (Under) Expenses                            $    (9,681,468)          (3,347,403)        6,334,065




The above schedule reflects certain adjustments to actual revenues and expenses to present data on a basis comparable
to adopted budgets.


                                                                   96
                                             CITY OF FORT LAUDERDALE, FLORIDA
                          CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
                              SCHEDULE OF CAPITAL ASSETS BY FUNCTION AND ACTIVITY
                                            AS OF SEPTEMBER 30, 2011


                                                                          IMPROVE-
                                                                            MENTS
                                                                         OTHER THAN   INFRA-
                                               LAND        BUILDINGS      BUILDINGS STRUCTURE       EQUIPMENT          TOTAL
FUNCTION AND ACTIVITY

General Government                      $      5,422,707    19,003,245       40,167             -    20,568,676        45,034,795

Public Safety
      Law Enforcement                            299,301    11,669,274      281,966             -    30,434,089        42,684,630
      Detention                                        -     2,255,237            -             -             -         2,255,237
      Fire Control                             1,366,054    34,073,917       15,233             -     8,979,932        44,435,136
      Ambulance                                        -             -            -             -       348,848           348,848
      Emergency Medical Services                       -             -            -             -     1,435,266         1,435,266
      Protective Inspections                           -             -            -             -     1,206,071         1,206,071
      Other Public Safety                              -             -            -             -     2,078,079         2,078,079
            Total Public Safety                1,665,355    47,998,428      297,199             -    44,482,285        94,443,267

Physical Environment                              5,308      1,652,903      648,294             -      906,383          3,212,888

Transportation
     Road and Street Facilities               11,897,604            -             -    15,191,187       477,736        27,566,527
     Transit Systems                                   -            -             -             -       519,406           519,406
     Water Transportation System                 216,000            -       978,927     4,660,510        39,409         5,894,846
     Parking Facilities                           35,608      572,849             -             -             -           608,457
           Total Transportation               12,149,212      572,849       978,927    19,851,697     1,036,551        34,589,236

Economic Environment                           1,443,154             -             -            -      433,983          1,877,137

Culture and Recreation
      Parks and Recreation                    42,280,212    33,118,602    66,395,069            -     5,350,447       147,144,330
      Cultural Services                          251,006    36,142,048             -            -             -        36,393,054
      Special Recreation Facilities              840,812     5,519,842    16,864,997            -       278,309        23,503,960
      Other Culture and Recreation               407,949     1,045,277       202,897            -             -         1,656,123
            Total Cultural and Recreation     43,779,979    75,825,769    83,462,963            -     5,628,756       208,697,467
            Total General Fixed Assets
                  Allocated to Functions $    64,465,715   145,053,194    85,427,550   19,851,697    73,056,634       387,854,790

Work In Progress                                                                                                       24,390,726

           Total General Fixed Assets                                                                             $   412,245,516




                                                                97
                                   CITY OF FORT LAUDERDALE, FLORIDA
                    CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
                   SCHEDULE OF CHANGES IN CAPITAL ASSETS BY FUNCTION AND ACTIVITY
                             FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011




                                              BALANCE                                   BALANCE
                                             BEGINNING                                    END
                                             OF PERIOD     ADDITIONS     DELETIONS     OF PERIOD
FUNCTION AND ACTIVITY

General Government                       $    42,612,153     2,435,714       13,072     45,034,795

Public Safety
     Law Enforcement                          41,922,071       827,085       64,526     42,684,630
     Detention                                 2,255,237             -            -      2,255,237
     Fire Control                             36,662,214     7,789,057       16,135     44,435,136
     Ambulance                                   285,229        68,360        4,741        348,848
     Emergency Medical Services                1,152,894       282,372            -      1,435,266
     Protective Inspections                    1,206,071             -            -      1,206,071
     Other Public Safety                       1,794,646       283,433            -      2,078,079
          Total Public Safety                 85,278,362     9,250,307       85,402     94,443,267

Physical Environment                           3,102,347      122,905        12,364      3,212,888

Transportation
    Road and Street Facilities                22,742,579     4,823,948             -    27,566,527
    Transit Systems                            1,799,862             -     1,280,456       519,406
    Water Transportation System                5,894,846             -             -     5,894,846
    Parking Facilities                           608,457             -             -       608,457
         Total Transportation                 31,045,744     4,823,948     1,280,456    34,589,236

Economic Environment                           1,776,920      100,217              -     1,877,137

Culture and Recreation
     Parks and Recreation                    144,071,285     3,073,045             -   147,144,330
     Cultural Services                        36,393,054             -             -    36,393,054
     Special Recreation Facilities            22,275,217     1,228,743             -    23,503,960
     Other Culture and Recreation              1,656,123             -             -     1,656,123
          Total Culture and Recreation       204,395,679     4,301,788             -   208,697,467
          Total General Fixed Assets
               Allocated to Functions        368,211,205    21,034,879     1,391,294   387,854,790

Work In Progress                              23,634,103    19,056,226    18,299,603    24,390,726

         Total General Fixed Assets      $   391,845,308    40,091,105    19,690,897   412,245,516




                                                      98
                                       CITY OF FORT LAUDERDALE, FLORIDA
                                       SCHEDULE OF SOURCES AND USES
                                  GENERAL OBLIGATION CONSTRUCTION FUND 1997
                                     FROM INCEPTION TO SEPTEMBER 30, 2011


                                                                                  INCEPTION
                                                                                   TO DATE
SOURCES
Proceeds from Bond Issue (Net of $349,330 Discount)                           $    34,650,670
Federal Grants
      US Fish and Wildlife Service                                                   150,000
      US Department of the Interior                                                  200,000
State of Florida
      Department of Environmental Protection                                          400,000
      Department of Transportation                                                     54,900
      Department of Culture and Recreation                                          1,275,000
Other Local Units
      Broward County                                                                1,703,152
      Downtown Development Authority                                                4,147,557
      Florida Boating Improvement Program                                             103,000
      Florida Inland Navigation District                                            1,475,650
Earnings on Investments                                                             8,320,062
Impact Fees                                                                            70,363
Contributions                                                                         328,530
Miscellaneous                                                                         550,327
Transfers from Other Funds
      Intergovernmental Revenue Fund                                                  127,500
      General Capital Projects Fund                                                   674,228
      General Obligation Construction Fund 1987                                     1,253,057
      Sunshine State Construction Fund 1996                                            32,492
      Parking System Fund                                                               8,000
                  Total Sources                                                    55,524,488

USES
Bond Issue and Other Expenses                                                        788,954
Cost of Municipal Improvements
     ADA Access Improvements                                                           72,044
     Bass Park                                                                      1,068,632
     Carter Park                                                                    8,334,108
     Croissant Park                                                                 2,099,549
     D.C. Alexander Park                                                              121,736
     Dillard High School Grant                                                        485,000
     Galt Area Recreation Center                                                    2,970,567
     George English Park                                                            2,446,569
     Greenway Park                                                                      1,409
     Fort Lauderdale Aquatic Complex                                                1,043,281
     Holiday Park                                                                  11,726,096
     Lauderdale Manors Park                                                         1,630,342
     Middle River Terrace Park                                                        906,920
     Mills Pond Park                                                                  457,620
     Ocean Access Park                                                                481,356
     Palm Aire Village Park                                                         2,164,159
     Parks in Annexed Areas                                                           103,266
     Riverland Park                                                                 5,560,645
     Riverwalk                                                                      2,726,492
     Snyder Park                                                                      325,849
     Streetscape Improvements                                                       4,889,433
     Tree Planting Program                                                            234,331
     Warfield Park                                                                    813,813
     Other Park Improvements                                                        3,253,366
Transfer to General Fund                                                              626,719
                 Total Uses                                                        55,332,256

FUND BALANCE - SEPTEMBER 30, 2011                                             $      192,232



                                                      99
                                  CITY OF FORT LAUDERDALE, FLORIDA
                                  SCHEDULE OF SOURCES AND USES
                        GENERAL OBLIGATION CONSTRUCTION FUND 2005 AND 2011A
                               FROM INCEPTION TO SEPTEMBER 30, 2011




                                                                                  INCEPTION
                                                                                   TO DATE

SOURCES
Proceeds from 2005 Bond Issue (Net of $52,034 Discount)                       $   19,947,966
Proceeds from 2011A Bond Issue (Including $413,394 Premium)                       20,413,394
Earnings on Investments                                                            2,613,840
               Total Sources                                                      42,975,200

USES
Bond Issue and Other Expenses                                                       306,446
Cost of Municipal Improvements
     Fire Control
          Executive Airport Fire Fighting and Emergency Operations Center          6,050,721
          Fire Station No. 3 Replacement                                           4,409,557
          Fire Station No. 13 Replacement                                             98,092
          Fire Station No. 29 Replacement                                          3,866,769
          Fire Station No. 35 Replacement                                            315,391
          Fire Station No. 46 Replacement                                            172,876
          Fire Station No. 47 Replacement                                          4,033,510
          Fire Station No. 49 Replacement                                          3,833,269
          Fire Station No. 54 Replacement                                            206,021
          Fire Station Southeast                                                      16,260
          Miscellaneous Costs                                                         77,634
               Total Uses                                                         23,386,546

FUND BALANCE - SEPTEMBER 30, 2011                                             $   19,588,654




                                                        100
                                  CITY OF FORT LAUDERDALE, FLORIDA
                                    SCHEDULE OF SOURCES AND USES
                                  EXCISE TAX CONSTRUCTION FUND 1998C
                                  FROM INCEPTION TO SEPTEMBER 30, 2011




                                                                             INCEPTION
                                                                              TO DATE

SOURCES
Proceeds from Bond Issue (Net of $72,204 Discount)                       $   11,927,796
Contributions                                                                    69,789
Earnings on Investments                                                       2,016,755
Transfers from Other Funds
     Excise Tax Construction Fund 1993                                          152,965
               Total Sources                                                 14,167,305

USES
Bond Issue and Other Expenses                                                  233,323
Cost of Municipal Improvements
     City Hall Annex Improvements                                                95,377
     City Hall Improvements                                                     503,206
     General Fund Building Renovations                                          176,561
     Parks and Recreation Infrastructure Improvements                           446,526
     Carter Park Improvements                                                   302,414
     Holiday Park Land Acquisition/Improvements                                 147,961
     Neighborhood Improvements                                                  132,730
     Marine Facilities                                                           68,371
     Seawall Reconstruction                                                     470,332
     Street Improvements                                                      1,160,485
     Wingate Landfill Site Closure                                                6,106
     Fire Rescue Department Infrastructure Improvements                       1,706,187
     Replacement of Fire Station No. 2                                          385,499
     Police Department Infrastructure Improvements                            2,071,008
     Las Olas Dockage                                                           237,829
     Water Transportation Improvements                                          155,499
     Northwest Seventh to Ninth Avenue Connector                                158,079
     Welcome Center Park                                                        200,000
     Harbordale Park                                                             15,484
Transfers to Other Funds
     Sunshine State Construction Fund 1996                                    4,215,839
                Total Uses                                                   12,888,816

FUND BALANCE - SEPTEMBER 30, 2011                                        $    1,278,489




                                                          101
                                   CITY OF FORT LAUDERDALE, FLORIDA
                                    SCHEDULE OF SOURCES AND USES
                         FLORIDA INTERGOVERNMENTAL CONSTRUCTION FUND 2002
                                FROM INCEPTION TO SEPTEMBER 30, 2011




                                                                                INCEPTION
                                                                                 TO DATE

SOURCES
Proceeds from Bond Issue                                                    $   10,000,000
Earnings on Investments                                                            689,713
               Total Sources                                                    10,689,713

USES
Bond Issue and Other Expenses                                                     177,146
Arbitrage Rebate                                                                   69,742
Cost of Municipal Improvements
      Building Services Center Construction                                      1,386,970
      City Hall Air Conditioner                                                    500,000
      Police Department Infrastructure Improvements                                310,264
      Fire Station No. 47 Reroof and Renovations                                   224,304
      Fire Station No. 13 Reroof and Renovations                                   208,500
      Fire Station No. 29 Renovations                                               17,872
      Fire Station No. 35 Rehabilitation                                             1,510
      Modular Fire Station                                                          13,000
      Bass Park Athletic Field Renovations                                         207,178
      Holiday Park Gym and Activity Center                                         314,354
      Riverside Park Improvements                                                  115,305
      Carter Park Improvements                                                     719,558
      Croissant Park Athletic Field Improvements                                     3,871
      Bayview Park Improvements                                                    595,299
      Other Parks and Recreation Infrastructure                                    889,435
      War Memorial Renovations                                                   2,508,319
      Fort Lauderdale Stadium Roof Repairs                                          33,072
      Bridge Repairs                                                             1,332,954
      Riverwalk at Marshall's Point Seawall Repairs                                550,791
      New River Floating Docks for Small Boats                                      76,017
      Marine Facilities Improvements                                                77,119
      Miscellaneous                                                                 50,536
                 Total Uses                                                     10,383,116

FUND BALANCE - SEPTEMBER 30, 2011                                           $     306,597




                                                      102
                                   CITY OF FORT LAUDERDALE, FLORIDA
                                       SCHEDULE OF SOURCES AND USES
                               TAX INCREMENT REVENUE CONSTRUCTION FUND 2004
                                     FROM INCEPTION TO SEPTEMBER 30, 2011


                                                                                  INCEPTION
                                                                                   TO DATE
SOURCES
Proceeds from Bond Issue                                                      $   18,000,000
Earnings on Investments                                                            2,403,593
Contributions                                                                        329,867
Miscellaneous                                                                            198
               Total Sources                                                      20,733,658

USES
Bond Issue and Other Expenses                                                       235,318
Cost of Municipal Improvements
     Sweeting Land Acquisition/Infrastructure Improvement                            523,238
     Sistrunk Streetscape                                                          4,848,194
     Sweeting Estates Property Acquisition                                         1,076,925
     Mid-Town Property Acquisition                                                   787,044
     North Fork Infrastructure                                                       688,501
     Flagler Heights Property Acquisition                                            158,110
     Flagler Heights Development Assistance                                        1,977,762
Transfers to Other Funds
     Community Redevelopment Agency                                                1,061,476
     Water and Sewer Fund                                                            176,612
     Stormwater Fund                                                                 253,000
               Total Uses                                                         11,786,180

FUND BALANCE - SEPTEMBER 30, 2011                                             $    8,947,478




                                                        103
                                    CITY OF FORT LAUDERDALE, FLORIDA
                                     SCHEDULE OF SOURCES AND USES
                                  SPECIAL OBLIGATION CONSTRUCTION 2008B
                                   FROM INCEPTION TO SEPTEMBER 30, 2011


                                                                              INCEPTION
                                                                               TO DATE
SOURCES
Proceeds from Debt Issue                                                  $   10,051,200
Earnings on Investments                                                           76,172
               Total Sources                                                  10,127,372

USES
Bond Issue and Other Expenses                                                    11,159
Cost of Municipal Improvements
     Parks and Recreation Infrastructure/Recapitalization                        382,244
     South Side School Restoration                                               496,393
     Street Improvements                                                          94,523
     Hortt Property Acquisition and Improvements                               1,078,702

Transfers to Other Funds
    General Capital Projects Fund                                              1,658,000
               Total Uses                                                      3,721,021

FUND BALANCE - SEPTEMBER 30, 2011                                         $    6,406,351




                                                            104
                                   CITY OF FORT LAUDERDALE, FLORIDA
                                     SCHEDULE OF SOURCES AND USES
                                  SPECIAL OBLIGATION CONSTRUCTION 2011A
                                   FROM INCEPTION TO SEPTEMBER 30, 2011


                                                                              INCEPTION
                                                                               TO DATE
SOURCES
Proceeds from Debt Issue                                                  $    7,218,000
Earnings on Investments                                                             (153)
               Total Sources                                                   7,217,847

USES
Bond Issue and Other Expenses                                                    32,744
Cost of Municipal Improvements
     Parks and Recreation Infrastructure/Recapitalization                        31,601
     Neighborhood Improvements                                                   15,250
     Street Improvements                                                        106,651
     Water Transportation                                                         9,167
     Northwest 19th Street Medians                                                1,605
     Sailboat Bend Preserve                                                       1,990
               Total Uses                                                       199,008

FUND BALANCE - SEPTEMBER 30, 2011                                         $    7,018,839




                                                            105
                                  CITY OF FORT LAUDERDALE, FLORIDA
                               SCHEDULE OF SOURCES AND USES
           WATER AND SEWER REVENUE BOND CONSTRUCTION SERIES 2003, 2006 2008 AND 2010
                            FROM INCEPTION TO SEPTEMBER 30, 2011




                                                                                   INCEPTION
                                                                                    TO DATE

SOURCES

Proceeds from 2003 Bond Issue (Net of $890,573 Discount)                       $    89,109,427
Proceeds from 2006 Bond Issue (Including $1,130,591 Premium)                       101,130,591
Proceeds from 2008 Bond Issue (Including $1,127,010 Premium)                       156,127,010
Proceeds from 2010 Bond Issue (Including $2,454,284 Premium)                        84,754,284
Earnings on Investments                                                              9,131,848
Transfer from Water and Sewer Regional Capital Projects Fund                           797,189
               Total Sources                                                       441,050,349

USES

Bond Issuance Costs                                                                  2,401,694
Debt Service Reserve                                                                21,107,636
Cost of Municipal Improvements
     Water Treatment Plant Improvements                                             47,010,303
     Wastewater Treatment Plant Improvements                                        57,547,177
     Water Distribution & Sewer Systems                                            267,741,833
     Water Collection and Storage                                                   14,693,348
     Other                                                                           5,917,578
               Total Uses                                                          416,419,569

BALANCE - SEPTEMBER 30, 2011                                                   $    24,630,780




                                                      106
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                                CITY OF FORT LAUDERDALE, FLORIDA
                                       STATISTICAL SECTION
                              FISCAL YEAR ENDED SEPTEMBER 30, 2011



This part of the City of Fort Lauderdale’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the City’s overall financial health.


CONTENTS:
                                                                                                      Page

FINANCIAL TRENDS ………………………………………………………………………………..………… 108

    These schedules contain trend information to help the reader understand how the
    City’s financial performance and well-being have changed over time.

REVENUE CAPACITY ………………………………………………………………………………………… 113

    These schedules contain information to help the reader assess the City’s most
    significant local revenue source, the property tax.

DEBT CAPACITY …………………………………………………………………………………………..….. 117

    These schedules present information to help the reader assess the affordability of
    the City’s current levels of outstanding debt and the City’s ability to issue additional
    debt in the future.

DEMOGRAPHIC AND ECONOMIC INFORMATION …………………………………………………..….. 121

    These schedules offer demographic and economic indicators to help the reader
    understand the environment within which the City’s financial activities take place.

OPERATING INFORMATION ……………………………………………………………………………..….. 123

    These schedules contain service and infrastructure data to help the reader
    understand how the information in the City’s financial report related to the services
    the City provides and the activities it performs.



Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The City implemented GASB
Statement 34 in 2002; schedules presenting government-wide information include information
beginning in that year.




                                                   107
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                                                                                         CITY OF FORT LAUDERDALE, FLORIDA
                                                                                                NET ASSETS BY COMPONENT
                                                                                                  LAST TEN FISCAL YEARS




                                                      2002*            2003*            2004*            2005*          2006          2007          2008           2009            2010            2011
      Governmental Activities
          Invested in Capital Assets,
               Net of Related Debt             $    92,359,291       93,787,075      130,052,615       144,363,415    170,955,510   192,894,698   199,485,665    210,703,404     209,995,876     197,493,944
          Restricted                                31,773,184       37,472,316       14,041,860        14,841,251     16,093,910    17,776,682    15,771,651     16,676,117      18,730,959     101,595,733
          Unrestricted                              21,928,392       14,938,737       28,418,582        68,023,921     97,626,948   136,745,995   159,037,505    168,153,605     165,280,575      86,644,564
                                                   146,060,867      146,198,128      172,513,057       227,228,587    284,676,368   347,417,375   374,294,821    395,533,126     394,007,410     385,734,241

      Business-type Activities
           Invested in Capital Assets,
                Net of Related Debt                340,916,567      351,540,780      369,661,225       384,485,191    405,589,577   434,102,107   440,451,256    450,050,617     440,499,100     463,595,323
           Restricted                                6,785,245        7,203,543        7,754,367         9,158,590     11,950,993    20,146,498    32,244,774     33,339,230      40,013,546      39,871,075
           Unrestricted                             98,271,556       82,553,541       95,613,834       114,947,489    112,468,065   109,920,156   124,040,567    129,307,321     160,208,714     167,504,551
                                                   445,973,368      441,297,864      473,029,426       508,591,270    530,008,635   564,168,761   596,736,597    612,697,168     640,721,360     670,970,949

      Primary Government
          Invested in Capital Assets,
               Net of Related Debt                  433,275,858      445,327,855      499,713,840      528,848,606    576,545,087   626,996,805   639,936,921     660,754,021     650,494,976     661,089,267
          Restricted                                 38,558,429       44,675,859       21,796,227       23,999,841     28,044,903    37,923,180    48,016,425      50,015,347      58,744,505     141,466,808
          Unrestricted                              120,199,948       97,492,278      124,032,416      182,971,410    210,095,013   246,666,151   283,078,072     297,460,926     325,489,289     254,149,115
                                               $    592,034,235      587,495,992      645,542,483      735,819,857    814,685,003   911,586,136   971,031,418   1,008,230,294   1,034,728,770   1,056,705,190
108




       *   Net assets for governmental activities have been restated to include major general infrastructure assets
           and land inventory acquired or constructed between October 1, 1979 and September 30, 2001.
                                                                                      CITY OF FORT LAUDERDALE, FLORIDA
                                                                                            CHANGES IN NET ASSETS
                                                                                            LAST TEN FISCAL YEARS


                                                     2002*         2003*         2004*         2005*         2006**         2007          2008          2009          2010           2011
      EXPENSES
      Governmental Activities
            General Government                  $    28,390,607    30,348,356    33,482,611    39,432,964    86,484,280    45,029,336    43,145,739    42,893,044    41,228,117    44,571,363
            Public Safety                           128,766,967   135,367,345   129,213,222   131,564,761   152,861,295   154,935,987   165,091,013   166,442,120   181,863,251   187,107,876
            Physical Environment                      6,822,705     7,464,823     7,922,113     7,098,458     8,175,763     8,178,965     8,908,460     9,835,224     9,130,582     9,957,967
            Transportation                            6,378,071     8,065,333     5,553,990     6,640,660     8,506,570     6,676,614    12,463,589     7,842,119     8,455,954     7,258,157
            Economic Environment                     16,903,009    17,209,566    13,807,924    13,704,274    15,628,036    17,984,059    17,174,238    22,281,381    23,598,717    21,428,604
            Culture and Recreation                   34,646,773    36,704,007    30,451,406    32,495,037    36,251,303    37,650,692    38,828,494    40,801,321    38,792,196    41,781,558
            Interest on Long-term Debt                4,110,118     3,434,141     3,404,667     3,885,586     4,588,108     4,297,933     3,665,826     3,535,247     3,500,713     2,783,207
      Total Governmental Activities Expenses        226,018,250   238,593,571   223,835,933   234,821,740   312,495,355   274,753,586   289,277,359   293,630,456   306,569,530   314,888,732
      Business-type Activities
            Water and Sewer                          58,248,372    78,358,875    56,965,953    54,575,263    64,531,717    63,316,413    68,791,000    86,644,340    80,645,935    80,320,657
            Sanitation                               19,182,990    20,238,522    20,413,119    19,588,475    21,168,314    19,448,837    20,944,976    21,780,670    22,585,575    20,812,922
            Parking System                            6,998,590     7,302,254     7,927,309     7,736,482     8,770,699     8,635,470    11,199,791    10,814,893    11,268,044    10,659,494
            Airport                                   4,797,424     4,633,959     4,804,348     4,953,478     5,819,448     7,528,128     6,740,363     7,500,584    10,745,183     8,025,774
            Stormwater                                2,716,211     2,942,257     2,621,054     2,437,365     2,886,784     2,850,726     3,739,948     4,261,529     3,983,439     4,178,998
      Total Business-type Activities Expenses        91,943,587   113,475,867    92,731,783    89,291,063   103,176,962   101,779,574   111,416,078   131,002,016   129,228,176   123,997,845
      Total Primary Government Expenses         $   317,961,837   352,069,438   316,567,716   324,112,803   415,672,317   376,533,160   400,693,437   424,632,472   435,797,706   438,886,577
      PROGRAM REVENUES
      Governmental Activities
            Charges for Services
                  General Government            $    17,237,276    17,425,056    17,228,790    19,890,189    15,393,649    16,371,640    15,687,344    16,717,807    16,766,802     21,387,521
109




                  Public Safety                      16,082,558    28,697,314    35,520,256    37,151,033    40,746,919    42,736,277    43,187,187    41,368,726    43,184,612     49,288,543
                  Culture and Recreation              6,787,251     8,004,979     8,110,116     7,235,956     7,506,549     8,022,930    10,357,702     7,915,653     8,383,214      8,796,433
                  Other Activities                    7,165,769     4,819,431     6,453,435     6,496,599     7,305,792     5,597,025     6,582,097     6,823,977     5,949,294      6,454,891
            Operating Grants/Contributions           22,685,022    18,866,662    17,762,611    25,273,668    68,625,286    28,738,123    26,545,136    25,520,014    32,685,788     27,940,257
            Capital Grants/Contributions              2,298,408     4,849,982     8,278,248     4,239,703    18,779,777     6,088,182     5,486,309    12,038,395     5,129,927     14,329,115
      Total Governmental Activities Program
            Revenues                                 72,256,284    82,663,424    93,353,456   100,287,148   158,357,972   107,554,177   107,845,775   110,384,572   112,099,637    128,196,760
      Business-type Activities
            Charges for Services
                 Water and Sewer                     65,118,499    69,816,685    70,754,315    77,193,531    75,216,166    77,983,185    84,838,237    94,554,904   105,959,129    105,395,277
                 Sanitation                          19,070,940    19,820,569    22,187,902    22,646,422    22,837,949    23,594,514    23,061,312    20,112,154    20,206,509     22,084,671
                 Parking System                       7,661,517     8,793,564    10,292,948    10,533,585    11,335,784    10,751,079    12,248,308    11,487,377    11,804,349     12,489,487
                 Airport                              4,633,939     4,780,876     5,061,743     5,403,499     5,954,668     6,031,077     6,748,592     6,163,142     6,587,136      6,983,850
                 Stormwater                           3,151,713     3,329,154     3,363,594     3,604,927     3,893,651     4,136,551     4,263,776     4,500,095     4,899,289      5,221,319
            Operating Grants/Contributions              428,595       107,679             -       250,031        41,114       323,946       374,424       658,598     2,757,142        282,568
            Capital Grants/Contributions              6,339,706     1,858,476     7,944,539     4,663,484     2,475,734     5,416,946     8,070,020     6,726,808     3,592,719      1,460,595
      Total Business-type Activities Program
            Revenues                                106,404,909   108,507,003   119,605,041   124,295,479   121,755,066   128,237,298   139,604,669   144,203,078   155,806,273    153,917,767
      Total Primary Government Program
            Revenues                            $   178,661,193   191,170,427   212,958,497   224,582,627   280,113,038   235,791,475   247,450,444   254,587,650   267,905,910   282,114,527



                                                                                                                                                                         Continued on Next Page
                                                                                            CITY OF FORT LAUDERDALE, FLORIDA
                                                                                                  CHANGES IN NET ASSETS
                                                                                                  LAST TEN FISCAL YEARS


                                                    2002*            2003*             2004*              2005*          2006**           2007            2008            2009           2010             2011
      NET (EXPENSE) REVENUE
      Governmental Activities                $    (153,761,966)   (155,930,147)     (130,482,477)    (134,534,592)     (154,137,383)   (167,199,409)   (181,431,584)   (183,245,884)   (194,469,893)   (186,691,972)
      Business-type Activities                      14,461,322      (4,968,864)       26,873,258       35,004,416        18,578,104      26,457,724      28,188,591      13,201,062      26,578,097      29,919,922
      Total Primary Government Net Expense   $    (139,300,644)   (160,899,011)     (103,609,219)     (99,530,176)     (135,559,279)   (140,741,685)   (153,242,993)   (170,044,822)   (167,891,796)   (156,772,050)
      GENERAL REVENUES AND TRANSFERS
      Governmental Activities
            Property Taxes                    $    73,910,812       81,614,549       89,413,561       111,654,626      124,380,246     138,197,801     128,014,149     124,802,652     113,605,675     104,294,035
            Other Taxes                            49,908,697       51,845,862       52,232,657        52,851,298       56,034,895      57,463,229      57,390,103      57,910,367      57,795,756      55,900,742
            Grants and Contributions               10,718,014       13,876,516       13,288,988        14,426,809       15,538,608      17,031,731      15,664,768      14,387,834      14,327,166      15,057,706
            Investment Earnings                     2,753,951        3,230,398        2,602,690         5,338,898       10,256,870      14,960,660       5,496,984       5,578,518       4,318,825       1,523,212
            Other                                   5,143,632        1,578,623        2,494,653         2,377,933        1,738,827       1,243,208       1,151,167       1,647,348       2,312,406         560,208
            Transfers                               2,332,175        2,494,427       (3,235,143)        2,600,558        3,635,718       1,043,787         591,859         157,470         584,349       1,082,900
      Total Governmental Activities Revenues      144,767,281      154,640,375      156,797,406       189,250,122      211,585,164     229,940,416     208,309,030     204,484,189     192,944,177     178,418,803
      Business-type Activities
            Investment Earnings                     4,440,722        2,765,446        1,623,161         3,157,986        6,474,979       8,746,189       4,971,104       2,916,979       2,030,444       1,412,567
            Other                                     540,141           22,341                -                 -                -               -               -               -               -               -
            Transfers                              (2,332,175)      (2,494,427)       3,235,143        (2,600,558)      (3,635,718)     (1,043,787)       (591,859)       (157,470)       (584,349)     (1,082,900)
      Total Business-type Activities Revenues       2,648,688          293,360        4,858,304           557,428        2,839,261       7,702,402       4,379,245       2,759,509       1,446,095         329,667
      Total Primary Government Revenues       $   147,415,969      154,933,735      161,655,710       189,807,550      214,424,425     237,642,818     212,688,275     207,243,698     194,390,272     178,748,470
      CHANGES IN NET ASSETS
110




      Governmental Activities                $     (8,994,685)      (1,289,772)       26,314,929          54,715,530    57,447,781      62,741,007      26,877,446      21,238,305      (1,525,716)     (8,273,169)
      Business-type Activities                     17,110,010       (4,675,504)       31,731,562          35,561,844    21,417,365      34,160,126      32,567,836      15,960,571      28,024,192      30,249,589
      Total Primary Government               $      8,115,325       (5,965,276)       58,046,491          90,277,374    78,865,146      96,901,133      59,445,282      37,198,876      26,498,476      21,976,420



       *   Changes in net assets for governmental activities have been restated for the following items

           For fiscal years 2002 through 2005, transportation expenses have been increased to include depreciation
           on major infrastructure assets acquired or constructed between October 1, 1979 and September 30, 2001

           For fiscal years 2002 through 2004, public safety expenses and other taxes have been increased to include
           state insurance premium taxes received for contribution to the Police and Fire Pension Trust Fund

       ** In fiscal year 2006 general government and public safety expenses and operating grants/contributions show
          significant increases due to cleanup and repair costs resulting from Hurricanes Katrina and Wilma and
          related reimbursements from federal and state sources.




                                                                                                                                                                                           Continued from Prior Page
                                      CITY OF FORT LAUDERDALE, FLORIDA
                                     FUND BALANCES - GOVERNMENTAL FUNDS
                                            LAST TWO FISCAL YEARS*




                                                                                                 2010              2011
General Fund
    Nonspendable                                                                          $         58,191        15,077,422
    Spendable
          Unrestricted
               Committed                                                                         1,915,988           464,915
               Assigned                                                                         19,204,828        10,915,133
               Unassigned                                                                       58,525,369        36,615,702
                                                                                          $     79,704,376        63,073,172


All Other Governmental Funds
      Nonspendable                                                                        $     10,694,362        11,272,512
      Spendable
           Restricted                                                                           85,965,422    126,997,499
           Unrestricted
                 Committed                                                                       7,831,215      7,395,146
                 Assigned                                                                       22,433,404     19,141,809
                                                                                          $    126,924,403    164,806,966




 *   Years prior to fiscal year 2010 have not been presented due to the implementation of GASB Statement No. 54
     which provided for new categories for classifying governmental fund balances.




                                                         111
                                                                                      CITY OF FORT LAUDERDALE, FLORIDA
                                                                           CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
                                                                                        LAST TEN FISCAL YEARS




                                                        2002            2003              2004            2005            2006*           2007             2008            2009             2010            2011
      REVENUES
      Property Taxes                            $     73,910,812       81,122,039       89,591,912      111,804,148     124,356,082    138,103,588      127,981,444      124,597,389     112,811,703      101,787,647
      Utility Taxes                                   35,195,157       34,912,119       33,622,403       33,467,636      33,546,383     33,343,709       33,935,730       35,441,037      34,754,319       34,725,638
      Franchise Taxes                                 11,249,732       12,395,361       13,433,621       14,419,408      17,250,122     18,246,991       18,192,005       18,059,429      18,224,861       16,439,174
      Insurance Premium Taxes                          3,344,323        3,695,313        4,105,057        3,950,276       4,216,411      5,872,529        5,262,368        4,409,901       4,816,576        4,735,930
      Licenses and Permits                             9,476,357       10,839,138       10,674,843       11,273,726      12,884,161     13,350,790       10,993,869        8,374,250       8,031,790       13,733,542
      Fines and Forfeitures                            3,553,352        3,662,057        5,211,507        3,352,821       3,335,730      3,630,280        6,642,582        2,518,229       2,534,228        3,769,263
      Intergovernmental                               34,214,428       41,364,810       42,170,122       50,217,713     101,391,365     50,649,813       42,314,742       49,338,512      50,969,453       50,170,757
      Charges for Services                            14,962,401       15,551,916       17,545,036       17,477,001      17,877,228     19,012,859       17,792,259       16,746,172      17,858,717       19,639,134
      Other                                           29,997,021       30,420,474       35,646,682       41,631,800      48,971,095     51,638,304       50,606,239       53,414,160      52,771,901       51,915,172
          Total Revenues                             215,903,583      233,963,227      252,001,183      287,594,529     363,828,577    333,848,863      313,721,238      312,899,079     302,773,548      296,916,257

      EXPENDITURES
      Current
           General Government                         25,191,565       27,491,516       33,259,859       40,863,171      84,404,902     44,396,739       40,491,020       40,364,222      39,618,402       40,330,403
           Public Safety                             120,433,309      131,580,837      130,852,791      137,496,196     156,111,515    158,659,250      165,436,737      167,391,135     176,169,662      180,280,486
           Physical Environment                        6,291,524        7,174,356        6,646,560        6,864,712       7,676,713      8,284,747        8,637,526        9,281,905       9,097,912        9,647,825
           Transportation                              4,094,509        3,604,706        3,363,483        4,433,860       4,707,323      5,070,122        3,860,924        3,795,541       3,339,100        3,316,948
           Economic Environment                       15,148,001       15,679,882       13,098,917       13,577,222      14,620,127     15,171,424       15,429,392       19,736,991      21,013,746       19,384,209
           Culture and Recreation                     28,727,862       31,905,959       26,504,866       28,079,389      30,421,782     32,358,082       33,745,058       34,400,119      32,964,316       32,001,841
112




      Debt Service
           Principal Retirement                        8,941,258        9,626,542       10,430,567       12,625,449      13,968,377     11,644,228        9,675,345        8,166,361       5,319,175        6,445,419
           Interest and Fiscal Charges                 3,938,982        3,786,478        3,017,822        3,327,108       4,190,646      4,605,876        3,384,245        3,252,722       2,951,548        2,634,451
      Capital Outlay                                  14,884,410       22,593,382       26,451,998       21,036,146      26,995,740     31,152,965       20,107,032       27,490,445      20,361,391       27,951,054
           Total Expenditures                        227,651,420      253,443,658      253,626,863      268,303,253     343,097,125    311,343,433      300,767,279      313,879,441     310,835,252      321,992,636
           Excess Revenues Over (Under)
               Expenditures                          (11,747,837)     (19,480,431)       (1,625,680)     19,291,276      20,731,452      22,505,430      12,953,959         (980,362)      (8,061,704)    (25,076,379)

      OTHER FINANCING SOURCES (USES)
      Debt Issuance                                    3,353,327       14,935,685       18,800,000       20,198,000       2,493,776                -        183,850       25,514,081               -       68,917,156
      Discount on Bonds                                         -                -                -         (52,034)               -               -               -                -               -                -
      Advance Refunding Debt Issuance                           -      38,593,212                 -                -               -               -               -                -               -                -
      Transfers In                                    19,694,384       18,005,833       21,788,061       25,011,235      32,358,689      31,834,831      20,865,609       32,214,791      15,680,731       63,854,172
      Transfers Out                                  (20,023,118)     (16,072,720)     (24,896,087)     (23,251,756)    (30,099,821)    (25,973,041)    (20,399,689)     (32,091,665)    (15,065,330)     (62,421,263)
      Payments to Refunding Escrow Agent                       -      (38,154,498)                -                -               -               -               -                -               -                -
      Current Debt Repayment                                    -                -                -                -               -               -               -     (15,410,001)               -     (24,022,327)
          Total Other Financing Sources (Uses)         3,024,593       17,307,512       15,691,974       21,905,445       4,752,644       5,861,790         649,770       10,227,206         615,401       46,327,738
          Net Change in Fund Balances          $      (8,723,244)      (2,172,919)      14,066,294       41,196,721      25,484,096      28,367,220      13,603,729        9,246,844      (7,446,303)      21,251,359

      Debt Service as a Percentage of
           Non-capital Expenditures                            6.0%            5.7%              5.8%            6.3%          5.7%              5.7%             4.5%            3.9%             2.8%            3.0%

       * In fiscal year 2006 general government and public safety expenditures and intergovernmental revenues show significant increases due to cleanup and repair costs resulting from Hurricanes
          Katrina and Wilma and related reimbursements from federal and state sources.
                                                                                                 CITY OF FORT LAUDERDALE, FLORIDA
                                                                                       ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY*
                                                                                                       LAST TEN FISCAL YEARS




                                                                                                                                                                                                                TOTAL
                   TAX                                                                                         TOTAL                                  LESS: EXEMPTIONS                                         TAXABLE         TOTAL
      FISCAL      ROLL        RESIDENTIAL       COMMERCIAL        INDUSTRIAL          ALL OTHER              ASSESSED                         GOVERN-       INSTI-      SAVE                                  ASSESSED         DIRECT
       YEAR      YEAR**        PROPERTY          PROPERTY          PROPERTY          PROPERTIES               VALUE**        HOMESTEAD        MENTAL      TUTIONAL    OUR HOMES                OTHER            VALUE         TAX RATE

       2002       2001    $               n/a              n/a               n/a                   n/a      18,379,383,238    852,845,200    1,319,359,800    508,197,127    1,176,171,110     17,317,280    14,505,492,721     5.3730

       2003       2002                    n/a              n/a               n/a                   n/a      21,510,615,094    937,805,980    1,384,255,440    524,413,789    2,224,645,190     54,470,970    16,385,023,725     5.2685

       2004       2003                    n/a              n/a               n/a                   n/a      24,566,994,298    942,970,110    1,533,662,870    588,557,357    3,224,464,200     62,994,860    18,214,344,901     5.1970

       2005       2004                    n/a              n/a               n/a                   n/a      27,640,714,113    945,901,780    1,672,048,950    628,570,368    3,989,884,510     68,718,210    20,335,590,295     5.7698

       2006       2005        23,106,467,840    5,020,317,020     1,097,981,160        3,613,345,530        32,838,111,550    957,364,860    1,959,151,830    711,100,131    5,381,892,200     76,955,680    23,751,646,849     5.4313

       2007       2006        29,227,062,360    5,659,182,700     1,271,704,860        3,828,669,983        39,986,619,903    995,285,660    2,180,471,780    773,484,362    7,584,788,110     83,554,370    28,369,035,621     5.0826

       2008       2007        31,911,017,420    6,676,046,380     1,371,873,980        3,977,400,822        43,936,338,602   1,002,229,190   2,601,151,780    909,169,645    7,980,212,270    122,045,892    31,321,529,825     4.2482

       2009       2008        23,989,228,770    7,364,478,220     1,542,409,500        9,370,403,541        42,266,520,031   1,139,384,963   2,684,215,740   1,048,082,000   5,882,957,177   1,002,072,203   30,509,807,948     4.2495
113




       2010       2009        19,971,276,110    7,046,764,320     1,388,063,510        9,045,911,355        37,452,015,295   1,111,967,564   2,715,484,570   1,125,944,388   3,694,693,873   1,147,579,150   27,656,345,750     4.2536

       2011       2010        19,516,645,480    6,496,097,520     1,260,821,960        5,573,129,580        32,846,694,540   1,092,050,541   2,726,130,832   1,053,661,814   2,226,829,360   1,157,436,098   24,590,585,895     4.3366



              * State Law requires that assessed values be established at 100% of estimated actual value.

          ** Assessed values are as of January 1 of each year.

                 Source: State of Florida Department of Revenue
                                                                                       CITY OF FORT LAUDERDALE, FLORIDA
                                                                                          PROPERTY TAX MILLAGE RATES*
                                                                                      DIRECT AND OVERLAPPING GOVERNMENTS
                                                                                              LAST TEN FISCAL YEARS




                                  FORT LAUDERDALE                                                                      OVERLAPPING RATES**
                                                                                                 SO. FLORIDA FLORIDA     BROWARD                                           SPECIAL DISTRICTS
                                                                                   BROWARD         WATER       INLAND   CHILDREN'S                               DOWNTOWN DEV. AUTH. NO. BROW.              HILLS-
      FISCAL      TAX                      DEBT         TOTAL       BROWARD         COUNTY         MGMT.     NAVIGATION SERVICES     TOTAL                                   DEBT     HOSPITAL              BORO
       YEAR      ROLL     OPERATING       SERVICE        CITY        COUNTY        SCHOOLS        DISTRICT    DISTRICT    COUNCIL  CITY-WIDE                     OPERATING  SERVICE    DISTRICT             INLET

      2002       2001        4.8762         0.4968       5.3730       7.4005         9.0596          0.6970          0.0385          0.0000         22.5686          0.6444          0.6000        2.4803   0.0951

      2003       2002        4.8472         0.4213       5.2685       7.3650         9.2141          0.6970          0.0385          0.3055         22.8886          0.6444          0.6000        2.4803   0.1170

      2004       2003        4.8288         0.3682       5.1970       7.1880         8.8096          0.6970          0.0385          0.3316         22.2617          0.6279          0.6000        2.5000   0.2490

      2005       2004        5.4066         0.3632       5.7698       7.0230         8.2695          0.6970          0.0385          0.3920         22.1898          0.6279          0.6000        2.4803   0.1845

      2006       2005        5.0924         0.3389       5.4313       6.7830         8.0623          0.6970          0.0385          0.4231         21.4352          0.6750          0.4200        2.1746   0.1845

      2007       2006        4.8066         0.2760       5.0826       6.0661         7.8687          0.6970          0.0385          0.4073         20.1602          0.6150          0.4800        1.8317   0.1170

      2008       2007        4.1193         0.1289       4.2482       5.2868         7.6484          0.6240          0.0345          0.3572         18.1991          0.4933          0.6089        1.6255   0.0860

      2009       2008        4.1193         0.1302       4.2495       5.3145         7.4170          0.6240          0.0345          0.3754         18.0149          0.4802          0.4289        1.7059   0.0860
114




      2010       2009        4.1193         0.1343       4.2536       5.3889         7.4310          0.6240          0.0345          0.4243         18.1563          0.4970          0.4313        1.7059   0.0860

      2011       2010        4.1193         0.2173       4.3366       5.5530         7.6310          0.6240          0.0345          0.4696         18.6487          0.4970          0.4313        1.8750   0.0860




             * State law requires all counties to assess at 100% valuation and limits millage for operating purposes to ten mills.

          **    Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners (e.g. the rates
                for special districts apply only to the proportion of the City's property owners whose property is located within the geographic boundaries of the special districts).


                Source: Broward County Property Appraiser.
                                                                    CITY OF FORT LAUDERDALE, FLORIDA
                                                                       PRINCIPAL PROPERTY TAXPAYERS
                                                                      CURRENT YEAR AND NINE YEARS AGO




                                                                                                            2011                                          2002*
                                                                                                                        PERCENT                                       PERCENT
                                                                                              TAXABLE                   OF TOTAL             TAXABLE                  OF TOTAL
                                                                    TYPE OF                  ASSESSED                   ASSESSED            ASSESSED                  ASSESSED
                        TAXPAYER                                   BUSINESS                    VALUE          RANK        VALUE               VALUE       RANK          VALUE

      Northwestern Mutual Life Insurance Company           Insurance                    $     150,854,740           1       0.46 %      $   132,590,542           1      0.72 %
      Capri Hotel LLC                                      Hotel                              126,434,950           2       0.38
      Florida Power & Light Co.                            Utility                            123,727,633           3       0.38
      Keystone Florida Property Holdings                   Real Estate                        117,102,310           4       0.36            118,601,165           2      0.65
      Fifth Avenue Partners Ltd.                           Real Estate                         96,435,800           5       0.29
      FL Grande LLC                                        Real Estate                         76,301,550           6       0.23
      US Las Olas LLC                                      Investment                          75,084,420           7       0.23
      Sunrise Harbour Multifamily, Inc.                    Real Estate                         74,134,160           8       0.23
      Bellsouth Telecommunications Inc.                    Telecommunications                  71,064,388           9       0.22
      WF Investment Holdings LLC                           Timeshare Management                67,048,460          10       0.20
115




      Marriott Ownership Resorts, Inc.                     Timeshare Management                                                              88,823,879        3         0.48
      Knickerbocker Properties                             Real Estate/Hotel                                                                 58,571,839        4         0.32
      Pier Properties Inc.                                 Real Estate/Hotel                                                                 51,631,393        5         0.28
      Genesis Capital Partners IX Ltd.                     Real Estate                                                                       50,084,082        6         0.27
      RSP II Barnett Bank Plaza Ltd.                       Real Estate                                                                       45,715,516        7         0.25
      Brickell Station Associates                          Entertainment                                                                     43,730,159        8         0.24
      CFT Properties Ltd.                                  Real Estate                                                                       43,155,531        9         0.23
      Lauderdale River Inc.                                Real Estate                                                                       42,343,013       10         0.23
                                                                                        $     978,188,411                   2.98 %      $   675,247,119                  3.67 %




       * The assessed values for fiscal year 2002 were extrapolated from the taxes levied and the millage rate in effect at the time.

          Source: Broward County Property Appraiser.
                                                          CITY OF FORT LAUDERDALE, FLORIDA
                                                          PROPERTY TAX LEVIES AND COLLECTIONS
                                                                LAST TEN FISCAL YEARS




                         TAXES LEVIED             COLLECTED WITHIN THE
                           FOR THE               FISCAL YEAR OF THE LEVY            COLLECTIONS     TOTAL COLLECTIONS TO DATE
      FISCAL                FISCAL                              PERCENTAGE         IN SUBSEQUENT                     PERCENTAGE
      YEAR                   YEAR               AMOUNT            OF LEVY               YEARS       AMOUNT             OF LEVY

      2002           $      69,257,080          68,887,052          99.5 %         $    318,989      69,206,041        99.9 %

      2003                  78,070,948          76,945,768          98.6                511,328      77,457,096        99.2

      2004                  86,322,917          85,882,476          99.5                253,688      86,136,164        99.8

      2005                 108,470,506         107,872,382          99.4                265,788     108,138,170        99.7

      2006                 120,645,437         119,708,465          99.2                376,533     120,084,998        99.5
116




      2007                 135,607,404         134,386,183          99.1                593,130     134,979,313        99.5

      2008                 128,954,993         127,212,927          98.6                547,437     127,760,364        99.1

      2009                 125,137,680         123,421,092          98.6               1,055,614    124,476,706        99.5

      2010                 112,960,028         110,925,089          98.2                594,742     111,519,831        98.7

      2011                 100,485,419          98,916,252          98.4                        -    98,916,252        98.4




               Source: Broward County Revenue Collector
                                                                                               CITY OF FORT LAUDERDALE, FLORIDA
                                                                                                 RATIO OF OUTSTANDING DEBT BY TYPE
                                                                                                         LAST TEN FISCAL YEARS
                                                                                                  (Dollars in Thousands Except per Capita)




                                                  GOVERNMENTAL ACTIVITIES                                                          BUSINESS-TYPE ACTIVITIES **
                                                                     FLORIDA                                         WATER                     STATE      FLORIDA
                     GENERAL       EXCISE        TAX     SUNSHINE GOVERN-               SPECIAL                    AND SEWER     SANITATION REVOLVING GOVERN-        EXCISE         TOTAL      PERCENTAGE
      FISCAL        OBLIGATION      TAX       INCREMENT   STATE      MENTAL            OBLIGATION      CAPITAL      REVENUE       REVENUE       FUND      MENTAL      TAX          PRIMARY     OF PERSONAL        PER
       YEAR           BONDS        BONDS        BONDS     LOANS       LOANS              LOANS         LEASES        BONDS         BONDS       LOANS       LOANS     BONDS       GOVERNMENT       INCOME         CAPITA*

      2002      $       46,100     23,360           4,415        11,785           -              -        2,887             -          5,220         -          -      3,355          97,122       0.18 %    $     578.80
      2003              43,005     15,740           4,127        13,540      15,575              -        4,562        89,040          4,935         -      1,325          -         191,849       0.34          1,144.68
      2004              38,110     13,645          21,705        11,265      14,600              -        4,349        87,105          4,635     6,897          -          -         202,311       0.34          1,197.11
      2005              53,005     11,480          20,946         8,885      12,275              -        7,025        85,150          4,320    19,233          -          -         222,319       0.34          1,305.46
      2006              47,405      9,240          19,803         7,995      11,150              -        5,339        83,165          3,985    36,038          -          -         224,120       0.34          1,279.20
      2007              41,620      6,900          18,691         7,075      10,000              -        3,657       180,335          3,635    61,236          -          -         333,149       0.51          1,898.28
      2008              39,305      3,520          17,544         6,110       9,300              -        2,639       331,840          3,265    72,316          -          -         485,839       0.69          2,703.61
      2009              36,920          -          16,352             -           -         25,433        9,750       325,195          2,870    89,131          -          -         505,651       0.70          2,807.61
      2010              34,465          -          15,120             -           -         24,022        8,425       400,610              -    89,193          -          -         571,835       0.78          3,169.82
      2011              65,900          -          13,843             -           -         31,408        7,111       391,805              -    84,693          -          -         594,760       0.82          3,593.72


        *      See Schedule of Demographic and Economic Statistics on page 121 for personal income and population data.

        **     The per capita debt cost for business-type activities is somewhat overstated since the service area for the Water and Sewer Fund extends to surrounding cities.
117
                                   CITY OF FORT LAUDERDALE, FLORIDA
                             RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING
                                          LAST TEN FISCAL YEARS




                                                              NET               PERCENTAGE OF
                     GENERAL              LESS              GENERAL             ACTUAL TAXABLE
FISCAL              OBLIGATION           SINKING            BONDED                 VALUE OF                    PER
 YEAR                 BONDS               FUND               DEBT                 PROPERTY*                  CAPITA**

 2002           $    46,100,000           270,829           45,829,171                0.32 %             $     273.12

 2003                43,005,000              4,446          43,000,554                0.26                     256.57

 2004                38,110,000                733          38,109,267                0.21                     225.50

 2005                53,005,000           385,768           52,619,232                0.26                     308.98

 2006                47,405,000           586,789           46,818,211                0.20                     267.07

 2007                41,620,000           586,703           41,033,297                0.14                     233.81

 2008                39,305,000           628,769           38,676,231                0.12                     215.23

 2009                36,920,000           628,426           36,291,574                0.12                     201.51

 2010                34,465,000           328,438           34,136,562                0.12                     189.23

 2011                65,900,000        16,045,899           49,854,101                0.20                     301.23




    *    See Schedule of Assessed Value and Actual Value of Taxable Property on page 113 for property value data.

   **    See Schedule of Demographic and Economic Statistics on page 121 for population data.




                                                         118
                                CITY OF FORT LAUDERDALE, FLORIDA
                    DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES NET DEBT
                                                SEPTEMBER 30, 2011




                                                                                                        ESTIMATED
                                                                                 ESTIMATED              SHARE OF
                                                                 NET DEBT       PERCENTAGE             OVERLAPPING
                                                               OUTSTANDING       APPLICABLE              NET DEBT
GOVERNMENTAL UNIT

Debt Repaid with Property Taxes

    Downtown Development Authority                         $      7,819,822        100.00%       $         7,819,822

    Broward County                                              356,215,000         19.00%                67,680,850

Other Debt

    Broward County School District Capital Outlay Plan         1,971,331,000        19.00%               374,552,890

    Broward County

         Tourist Development Refunding Bonds                      7,020,000         19.00%                 1,333,800
         Gas Tax Revenue Bonds                                            0         19.00%                         0
         Special Obligation Bonds                               367,960,000         19.00%                69,912,400

Subtotal Overlapping Debt                                                                                521,299,762

City Of Fort Lauderdale Direct Debt                              49,854,101        100.00%                49,854,101

Total Direct And Overlapping Debt                                                                $       571,153,863




    Sources: Assessed value data used to estimate applicable percentages was provided by the Broward
    County Property Appraiser. Debt outstanding data was provided by each governmental unit.




                                                         119
                                                                               CITY OF FORT LAUDERDALE, FLORIDA
                                                                                      PLEDGED REVENUE COVERAGE
                                                                                         LAST TEN FISCAL YEARS
                                                                                           (Dollars in Thousands)


                                                  TAX INCREMENT BONDS                                                                SPECIAL OBLIGATION LOANS
                                                     NET                                                                                   NET
      FISCAL        GROSS        OPERATING        AVAILABLE             DEBT SERVICE             COVER-       GROSS      OPERATING      AVAILABLE         DEBT SERVICE       COVER-
       YEAR        REVENUE       EXPENSES*        REVENUE         PRINCIPAL     INTEREST          AGE        REVENUE     EXPENSES*      REVENUE      PRINCIPAL    INTEREST     AGE
       2002      $    2,969          1,043             1,926            320           286           3.18            0            0              0            0           0      0.00
       2003           2,521          1,245             1,276            483           197           1.88            0            0              0            0           0      0.00
       2004           2,964          1,416             1,548            422           367           1.96            0            0              0            0           0      0.00
       2005           3,726          1,157             2,569            759           685           1.78            0            0              0            0           0      0.00
       2006           5,190          1,926             3,264          1,143           931           1.57            0            0              0            0           0      0.00
       2007           8,492          1,766             6,726          1,112           970           3.23            0            0              0            0           0      0.00
       2008           8,409          1,661             6,748          1,147           717           3.62            0            0              0            0           0      0.00
       2009           9,419          1,934             7,485          1,192           365           4.81      144,779            0        144,779           81         906    146.69
       2010           8,877          2,101             6,776          1,232           227           4.64      144,696            0        144,696        1,410       1,262     54.15
       2011           7,640          2,524             5,116          1,277           196           3.47      141,866            0        141,866        2,466         862     42.63



                                           WATER AND SEWER REVENUE BONDS                                                             SANITATION REVENUE BONDS
                                                     NET                                                                                   NET
      FISCAL        GROSS        OPERATING        AVAILABLE             DEBT SERVICE             COVER-       GROSS      OPERATING      AVAILABLE        DEBT SERVICE        COVER-
       YEAR        REVENUE       EXPENSES*        REVENUE         PRINCIPAL     INTEREST          AGE        REVENUE     EXPENSES*      REVENUE      PRINCIPAL   INTEREST     AGE
       2002      $        0              0                 0              0              0          0.00       19,313       18,318             995        267         274      1.84
       2003          71,169         47,925            23,244            960          1,943          8.01       19,946       19,258             688        285         260      1.26
120




       2004          71,429         43,676            27,753          1,935          3,633          4.98       22,270       20,030           2,240        300         248      4.09
       2005          78,777         42,007            36,770          1,955          3,594          6.63       22,931       19,128           3,803        315         233      6.94
       2006          78,109         46,423            31,686          1,985          3,551          5.72       23,211       20,513           2,698        335         214      4.91
       2007          82,804         48,749            34,055          2,830          7,935          3.16       24,093       19,229           4,864        350         197      8.89
       2008          85,741         50,296            35,445          3,495         11,925          2.30       23,456       20,370           3,086        370         178      5.63
       2009          92,071         52,576            39,495          6,645         14,821          1.84       20,438       20,092             346        395         159      0.62
       2010         103,156         55,207            47,949          6,885         15,663          2.13            0            0               0          0           0      0.00
       2011         105,231         50,958            54,273          8,805         17,849          2.04            0            0               0          0           0      0.00



                                                               STATE REVOLVING FUND LOANS
                                                      REVENUE BOND                   NET              STATE LOANS
      FISCAL        GROSS        OPERATING             DEBT SERVICE               AVAILABLE          DEBT SERVICE         COVER-
       YEAR        REVENUE       EXPENSES*        PRINCIPAL     INTEREST          REVENUE       PRINCIPAL     INTEREST     AGE
       2005      $   82,800         47,674            1,955         3,594             29,577            0          491       60.24
       2006          82,052         54,728            1,985         3,551             21,788           77          442       41.98
       2007          89,077         56,208            2,830         7,935             22,104        2,074          925        7.37
       2008          90,701         57,364            3,495        11,925             17,917        3,006        1,792        3.73
       2009          97,376         60,169            6,645        14,821             15,741        4,663        1,956        2.38
       2010         107,784         62,466            6,885        15,663             22,770        4,286        2,138        3.54
       2011         107,049         58,869            8,805        17,849             21,526        4,500        2,081        3.27



               * Total expenses excluding depreciation and payment in lieu of taxes
                                         CITY OF FORT LAUDERDALE, FLORIDA
                                        DEMOGRAPHIC AND ECONOMIC STATISTICS
                                              LAST TEN FISCAL YEARS




                                                                     BROWARD             COUNTY
                   FORT                  BROWARD                      COUNTY            PER CAPITA
FISCAL          LAUDERDALE                COUNTY                     PERSONAL           PERSONAL              UNEMPLOYMENT
 YEAR           POPULATION              POPULATION                    INCOME*            INCOME                   RATE

 2002               167,800                 1,703,998            $    54,850,632              32,189               5.6    %

 2003               167,600                 1,728,336                 55,790,306              32,280               5.4

 2004               169,000                 1,753,000                 59,615,576              34,008               4.4

 2005               170,300                 1,753,000                 65,213,329              37,201               3.5

 2006               175,300                 1,751,100                 65,213,329              37,241               3.1

 2007               175,500                 1,751,100                 65,213,329              37,241               4.2

 2008               179,700                 1,763,600                 70,454,147              39,743               6.4

 2009               180,100                 1,756,500                 71,994,871              41,169               10.9

 2010               180,400                 1,742,900                 73,590,969              41,974               12.1

 2011               165,500      **         1,748,100                 72,752,112              41,618               10.7




  *      Personal income in thousands of dollars.
  **     Reduction in population estimate in 2011 for Fort Lauderdale attributed to the 2010 U.S. Census taking.


         Sources: Fort Lauderdale population obtained from the Bureau of Economic and Business Research, University of
         Florida. Broward County population and personal income obtained from the Bureau of Economic Analysis, U.S.
         Department of Commerce (as of 2009). Unemployment rates obtained from the Bureau of Labor Statistics, U.S.
         Department of Labor.




                                                           121
                                 CITY OF FORT LAUDERDALE, FLORIDA
                                        PRINCIPAL EMPLOYERS
                                           CURRENT YEAR



                 ESTIMATED
                 NUMBER OF
                 EMPLOYEES                                    EMPLOYER


                  Over 5,000                     Broward County School Board
                                                 Broward County Government
                                                 Broward Health

                 2,500 - 4,999                   Secor Holdings
                                                 Kaplan University
                                                 City of Fort Lauderdale

                 1,000 - 2,499                   Citrix Systems
                                                 SFN Group (formerly Spherion Corporation)
                                                 Sun-Sentinel Co./ WSFL-TV

                 Under 1,000                     Saveology.com
                                                 Aviall
                                                 Zimmerman Advertising




Note: Little reliable data currently exists on employment within the City of Fort Lauderdale. The above
estimates are assembled from data provided by the Broward Alliance, Broward County Government, the
Broward County School District, and the City of Fort Lauderdale's Economic Development Department.
Information for prior years is unavailable.


Fort Lauderdale is a part of the diverse economy of Broward County. Service industries dominate the
local employment environment. Primary sectors of the services within the City are marine-related
industries, tourism, retail and wholesale trade.




                                                  122
                                                            CITY OF FORT LAUDERDALE, FLORIDA
                                          FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
                                                                 LAST SEVEN FISCAL YEARS*



                                                                            2005           2006          2007       2008       2009       2010       2011
      FUNCTION/PROGRAM
      General Government
           Business Enterprises                                                8.00          8.00          10.00     10.00      10.00      10.00      10.00
           City Commission                                                     5.00         12.00          12.00     12.00      12.00      12.00      12.00
           City Manager                                                       10.00         10.00          18.00     18.00      18.00      18.00      21.00
           City Attorney                                                      24.00         25.00          26.00     26.00      26.00      26.00      25.00
           City Auditor                                                         -            2.00           5.00      5.00       5.00       5.00       5.00
           City Clerk                                                         12.00          5.00           6.00      6.00       6.00       6.50       6.50
           Finance                                                            55.00         55.00          56.00     64.00      64.00      64.00      65.00
           Human Resources                                                    25.00         26.00          26.00     24.00      24.00      20.00      19.00
           Information Systems                                                38.00         39.00          39.00     38.80      38.60      38.30      38.12
           Office of Management and Budget                                    12.00         13.00          13.00     13.00      13.00      12.00        -
           Office of Professional Standards                                    3.00          4.00           4.00      4.00       4.00       3.00       3.00
           Procurement                                                        12.50         12.50          12.50     11.30      11.00      11.00      11.00
           Planning and Zoning                                                37.00         38.00          38.00     36.20      36.40      31.30      31.00
           Public Works                                                       62.00         59.00          61.00     52.00      52.00      36.00      48.00
           Public Information                                                  8.00         11.00          11.00     11.00      11.00      11.00      10.00
      Public Safety
           Building Services                                                 120.50        118.00         123.00    117.40     117.00     108.00      98.00
123




           Fire Rescue                                                       439.20        453.00         455.00    464.70     465.20     461.00     458.90
           Police                                                            667.25        719.00         712.00    693.50     696.70     702.90     696.00
      Physical Environment
           Business Enterprises                                                1.00          1.00           1.00      1.00       1.00       1.00       1.00
           Public Works                                                      527.50        516.50         519.50    521.30     523.50     520.50     492.38
      Transportation
           Business Enterprises                                               13.50         13.50          13.50     14.00      14.00      16.00      16.00
           Parking and Fleet Services                                         47.50         49.50          52.00     52.90      54.60      51.90      49.80
           Police                                                             23.00         23.00          23.00     23.00      23.00      23.00      22.00
           Public Works                                                       12.00         11.50          12.50     11.60      11.60       8.50       5.20
           Arts & Science District Garage                                       -             -              -         -          -         5.60       8.80
      Economic Environment
           Economic Development                                               16.00         18.00          21.00     21.00      21.00      20.00      18.00
           Planning and Zoning                                                20.50         20.50          20.50     19.00      17.00      17.00      17.00
      Culture and Recreation
           Parks and Recreation                                              330.00        336.50         351.75     337.00     344.40     314.90     281.40
           Business Enterprises                                               36.50         41.50          39.50      40.20      40.70      40.40      40.20
                Total                                                      2,565.95      2,641.00       2,681.75   2,647.90   2,660.70   2,594.80   2,509.30

           Source: Annual Operating Budget Books

       *   Years prior to fiscal year 2005 have not been presented due to a substantial reorganization of City
           departments effective October 1, 2004.
                                                                  CITY OF FORT LAUDERDALE, FLORIDA
                                                              OPERATING INDICATORS BY FUNCTION/PROGRAM
                                                                        LAST TEN FISCAL YEARS




      FUNCTION/PROGRAM                                        2002       2003       2004       2005       2006      2007      2008      2009      2010      2011*

      Public Safety
           Police
                911 & Non Emergency Calls Received            625,000    578,809    605,395    593,331    610,210   703,119   654,123   684,524   588,913   567,692
                Citations Issued                               63,412     47,435     53,039     50,443     48,368    63,897    51,470    44,140    50,541    60,479
                Arrests                                        14,377     14,768      9,620     10,435     12,492    14,112    14,018    13,903    14,601    17,159
                Parking Citations Issued (Excluding Voids)    118,618    144,090    117,482    127,370    125,200   115,371   112,485   107,092    99,786    97,922

           Fire Rescue
                Total Incidents                                37,877     38,239     41,007     42,258     42,891    41,066    41,778    41,416    41,468    42,379
                Total Fire Incidents                               n/a        n/a       865        842        917       739       645       636       521       637
                Inspections Performed                              n/a    17,631     17,631     18,753     20,668    18,936    20,352    16,663    16,754    20,267

      Physical Environment
124




          Water Distribution
                Water Main Failures/Repairs                        65         98         64        184        233       114       107        86        52        86
                New Water Mains Construction (Feet)            38,762     29,869     23,817     23,180     23,310    22,076    22,976    21,827    19,927    21,925

           Water and Wastewater Treatment
               Raw Wastewater Treated (Billions of Gallons)     14.20      13.00      13.00      13.40      13.60     13.50     13.50     14.20     12.90     13.70
               Raw Water Treated (Billions of Gallons)          17.60      18.23      18.23      18.40      18.40     15.83     15.64     16.57     15.42     15.28

           Sanitation
                Household Refuse Collected (Tons)              42,754     44,752     44,752     47,550     49,899    45,911    48,408    45,350    43,528    43,528
                Recycling Tonnage                                  n/a        n/a     6,950      7,227      6,708     6,280     7,989     8,269     8,650     7,800

      Culture and Recreation
           Parks and Recreation
                Pavilion Rentals                                  592        682        624        564        737       969       900     1,020     1,145     1,050
                Learn to Swim Registrants                          n/a     3,700      3,800      3,400      3,580     3,938     3,594     3,596     2,942     2,988
                Youth Sports Club Participants                     n/a        n/a        n/a        n/a       590       700     1,122     1,664     1,200        n/a
                Summer Camp Registrants                            n/a        n/a        n/a        n/a       740       808     1,317     1,284     1,010     1,058


       *   Figures Estimated for fiscal year 2011
                                                                             CITY OF FORT LAUDERDALE, FLORIDA
                                                                         CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
                                                                                     LAST TEN FISCAL YEARS



                                                                              2002       2003       2004       2005       2006     2007     2008     2009     2010     2011
      FUNCTION/PROGRAM
      General Government
           City Buildings                                                       112        112        112        112        112      112      112      112      112      112
      Public Safety
           Police
                 Police Stations                                                     1          1          1          1       1        1        1        1        1        1
                 Marked Units (cars, vans, trailers, bomb van)                                                              310      408      408      414      420      405
                 Unmarked Units (cars)                                                                                      199      209      209      214      214      229
           Fire Rescue
                 Fire Stations                                                   12         12         12         12         12       13       11       11       11       10
                 Fire Apparatus                                                                                              20       20       20       20       20       20
                 Ambulances                                                                                                  20       20       20       20       20       19
      Physical Environment
           Public Works - Water and Sewer
                 Fire Hydrants                                                 5,181      5,105      5,107      5,204      5,288    5,352    5,352    5,352    5,420    5,621
                 Water Mains (miles)                                             769        751        751        751        750      750      750      750      757      782
                 Water Plants (2) - capacity per day (million gallons)            90         90         90         90         90       90       82       82       82       82
                 Wastewater Plant - capacity per day (million gallons)            43         43         56         56         56       56       56       56       56       56
                 Sanitary Sewers (miles)                                         484        486        488        481        467      503      503      503      546      577
125




                 Storm Drainage (miles)                                          128        216        216        216        149      149      149      149      160      163
                 Storm and Wastewater Pumping Stations                           149        149        150        150        150      153      153      153      198      208
      Transportation
           Public Works - Road and Street Facilities
                 Streets (miles)                                                442        497        497        497        497      497      497      497      497      498
                 Sidewalks (miles)                                              312        312        312        312        312      312      312      312      312      312
                 Bridges                                                         51         51         51         51         51       51       51       51       51       51
                 Community Bus                                                    0          0          0          0          3       11       11       11        3        3
           Parking and Fleet Services
                 City Maintained Parking Spaces                               10,242     10,242      9,214      9,214      9,214    9,078    9,078    9,224    9,438    9,506
                 City Parking Garages                                              4          4          4          4          4        4        4        4        4        4
                 Meters (single and multi-space)                                                                           2,580    2,641    2,495    2,104    2,477    2,104
      Culture and Recreation
           Public Beach (miles)                                                      5          5          5       5           5        5        5        5        5        5
           Municipal Swimming Pools                                                  8          8          9      15          15       15       14       13       13       13
           Public Parks (acres)                                                                                              766      766      744      756      786      786
           War Memorial Auditorium (Seating Capacity)                          2,110      2,110      2,110      2,110      2,110    2,110    2,110    2,110    2,110    2,110
           Lockhart Stadium (Seating Capacity)                                19,500     19,500     19,500     19,500     19,500   19,500   19,500   18,800   19,500   19,500
           Fort Lauderdale Stadium (Seating Capacity)                          8,340      8,340      8,340      8,340      8,340    8,340    8,340    8,340    8,340    8,340
           Fort Lauderdale Aquatic Complex (Seating Capacity)                  2,300      2,300      2,330      2,330      2,540    2,540    2,540    2,540    2,465    1,840
           Bahia Mar Yachting Center - Municipal Yacht Slips                     200        200        200        200        200      200      200      200      200      200



          Source: Various City departments and the budget book
                                                                      Ernst & Young LLP
                                                                      Suite 500
                                                                      5100 Town Center Circle
                                                                      Boca Raton, Florida 33486

                                                                      Tel: +1 561 955 8000
                                                                      Fax: +1 561 955 8200
                                                                      www.ey.com



    Report of Independent Certified Public Accountants on Internal Control Over
      Financial Reporting and on Compliance and Other Matters Based on an
           Audit of Financial Statements Performed in Accordance With
                         Government Auditing Standards

To the Honorable Mayor, Members of the City Commission and
 City Manager
City of Fort Lauderdale, Florida

We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Fort Lauderdale, Florida (the City) as of and
for the year ended September 30, 2011, and have issued our report thereon dated March 12,
2012. We conducted our audit in accordance with auditing standards generally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.

Internal control over financial reporting

Management of the City is responsible for establishing and maintaining effective internal control
over financial reporting. In planning and performing our audit, we considered the City’s internal
control over financial reporting as a basis for designing our auditing procedures for the purpose
of expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly,
we do not express an opinion on the effectiveness of the City’s internal control over financial
reporting.

Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weaknesses have been identified. However, as
described in the accompanying schedule of findings and questioned costs, we identified certain
deficiencies in internal control that we consider to be material weaknesses and other deficiencies
that we consider to be significant deficiencies.

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



1205-1363429                                   126
                                                                      A member firm of Ernst & Young Global Limited
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. We consider the deficiencies described in the
accompanying schedule of findings and questioned costs as items PY-1 and PY-2, to be material
weaknesses.

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. We consider the deficiency described in the accompanying schedule of
findings and questioned costs as item PY-3 to be a significant deficiency.

Compliance and other matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free
of 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.

The City’s responses to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. We did not audit the City’s responses and
accordingly, we express no opinion on them.

This report is intended solely for the information and use of the Honorable Mayor, members of
the City Commission, the City Manager, City management and others within the entity, the audit
advisory board, the Auditor General of the State of Florida, federal and state awarding agencies,
and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.




March 12, 2012
                                                                    



1205-1363429                                    127
                                                                        A member firm of Ernst & Young Global Limited
                                                                    Ernst & Young LLP
                                                                    Suite 500
                                                                    5100 Town Center Circle
                                                                    Boca Raton, Florida 33486

                                                                    Tel: +1 561 955 8000
                                                                    Fax: +1 561 955 8200
                                                                    www.ey.com




      Report of Independent Certified Public Accountants on Compliance With
     Requirements That Could Have a Direct and Material Effect on Each Major
       Program and on Internal Control Over Compliance in Accordance with
     OMB Circular A-133, Section 215.97 Florida Statutes, and Chapter 10.550,
                           Rules of the Auditor General

To the Honorable Mayor, Members of the City Commission, and
 City Manager
City of Fort Lauderdale, Florida

Compliance

We have audited the City of Fort Lauderdale, Florida (the City)’s compliance with the types of
compliance requirements described in the US Office of Management and Budget (OMB)
Circular A-133 Compliance Supplement and the requirements described in the Department of
Financial Services’ State Projects compliance supplement that could have a direct and material
effect on each of the City’s major federal programs and state projects for the year ended
September 30, 2011. The City’s major federal programs and state projects are identified in the
summary of auditor’s results section of the accompanying schedule of findings and questioned
costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to
each of its major federal programs and state projects is the responsibility of the City’s
management. Our responsibility is to express an opinion on the City’s compliance based on our
audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular
A-133, Audits of States, Local Governments, and Non-Profit Organizations; Section 215.97,
Florida Statutes (Section 215.97); and Chapter 10.550, Rules of the Auditor General (Chapter
10.550). Those standards, OMB Circular A-133, Section 215.97, and Chapter 10.550 require that
we plan and perform the audit to obtain reasonable assurance about whether noncompliance with
the types of compliance requirements referred to above that could have a direct and material
effect on a major federal program or state project occurred. An audit includes examining, on a
test basis, evidence about the City’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination of
the City’s compliance with those requirements.




1205-1363429                                  128
                                                                    A member firm of Ernst & Young Global Limited
As described in items 2011-01 through 2011-03 and 2011-09 through 2011-11 in the
accompanying schedule of findings and questioned costs, the City did not comply with
requirements regarding procurement, suspension, and debarment, reporting, subrecipient
monitoring, program income, and special tests and provisions that are applicable to its CDBG –
Entitlement Grants Cluster (CFDA Nos. 14.218 and 14.253); and as described in items 2011-03
and 2011-11, the City did not comply with requirements regarding subrecipient monitoring that
are applicable to the HOPWA program (CFDA No. 14.241). Compliance with such requirements
is necessary, in our opinion, for the City to comply with requirements applicable to those
programs.

In our opinion, except for the noncompliance described in the preceding paragraph, the City
complied, in all material respects, with the compliance requirements referred to above that could
have a direct and material effect on each of its major federal programs and state projects for the
year ended September 30, 2011. The results of our auditing procedures also disclosed other
instances of noncompliance with those requirements that are required to be reported in
accordance with OMB Circular A-133, Section 215.97, or Chapter 10.550, and which are
described in the accompanying schedule of findings and questioned costs as items 2011-04
through 2011-08.

Internal control over compliance

The management of the City is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts and grants
applicable to federal programs and state projects. In planning and performing our audit, we
considered the City’s internal control over compliance with the requirements that could have a
direct and material effect on a major federal program and state project to determine the auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on
internal control over compliance in accordance with OMB Circular A-133, Section 215.97, and
Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the
City’s internal control over compliance.

Our consideration of internal control over compliance was for the limited purpose described in
the preceding paragraph and was not designed to identify all deficiencies in internal control over
compliance that might be significant deficiencies or material weaknesses and therefore, there can
be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been
identified. However, as discussed below, we identified certain deficiencies in internal control
over compliance that we consider to be material weaknesses and other deficiencies that we
consider to be significant deficiencies.




1205-1363429                                   129
                                                                      A member firm of Ernst & Young Global Limited
A deficiency in internal control over compliance 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, noncompliance with a type of compliance
requirement of a federal program or state project on a timely basis. A material weakness in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance
with a type of compliance requirement of a federal program or state project will not be
prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal
control over compliance described in the accompanying schedule of findings and questioned
costs as items 2011-01 through 2011-03, 2011-07, 2011-09, and 2011-10 to be material
weaknesses.

A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program or state project that is less severe than a material weakness, yet important
enough to merit attention by those charged with governance. We consider the deficiencies in
internal control over compliance described in the accompanying schedule of findings and
questioned costs as items 2011-04 through 2011-06, 2011-08, and 2011-11 to be significant
deficiencies.

The City’s responses to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. We did not audit the City’s responses and,
accordingly, we express no opinion on the responses.

This report is intended solely for the information and use of management, the Honorable Mayor,
members of the City Commission, the City Manager, City management and others within the
entity, the audit advisory board, the Auditor General of the State of Florida, and federal and state
awarding agencies and pass-through entities and is not intended to be and should not be used by
anyone other than these specified parties.




June 8, 2012
                                                                    




1205-1363429                                   130
                                                                       A member firm of Ernst & Young Global Limited
                                                City of Fort Lauderdale, Florida

                                         Schedule of Expenditures of Federal Awards
                                               and State Financial Assistance

                                       For the Fiscal Year Ended September 30, 2011


                       Federal/State Grantor,
                       Pass-through Grantor                       CFDA#        Contract/                              Disbursements to
                   Federal Programs/State Projects                CSFA #     Grant Number              Expenditures    Subrecipients

I. CASH FEDERAL FINANCIAL ASSISTANCE

U. S. Department of Agriculture:
   Indirect Programs:
   Summer Food Service Program for Children
      Passed Through Florida Department of Education
        FY11 Summer Food Service Program for Children               10.559 04-0987                 $        80,770                   –
   Cooperative Forestry Assistance
      Passed Through Florida Department of Agriculture &
        Consumer Services
        Fort Lauderdale Buffer Tree Demonstration                   10.664 015160                              625                   –
   American Recovery and Reinvestment Act
   Recovery Act of 2009: Wildland Fire Management
      Passed Through Florida Department of Agriculture &
        Consumer Services
        ARRA Forest Health Improvement Initiative Grant Program     10.688 016164                           18,217                   –

        Total U. S. Department of Agriculture                                                               99,612                   –


U.S. Department of Housing and Urban Development:
   Direct Programs:
        Community Development Block / Entitlement Grants            14.218                               3,057,220             627,705
        Community Development Block / Entitlement Grants - NSP      14.218 B-08-MN-12-0007               1,127,928                   –
        Total CFDA # 14.218                                                                              4,185,148             627,705
   American Recovery and Reinvestment Act
        Community Development Block / ARRA Entitlement
          (CDBG-R) Recovery Act Funded                              14.253 B-09-MY-12-0005                 148,107             133,913

        Total CDBG Entitlement Grants Cluster                                                            4,333,255             761,618

        Emergency Shelter Grants Program                            14.231                                  90,850              86,382
        Home Investment Partnerships Program                        14.239                               1,773,192                   –
        Housing Opportunities for Persons with AIDS                 14.241                               8,788,349           8,418,379
   American Recovery and Reinvestment Act
        Homeless Prevention and Rapid -ReHousing Program
         Technical Assistance (Recovery Act Funded)                 14.262                                 399,505             397,011
   Indirect Programs:
     Passed Through Broward County
        Community Development Block Grants/ State's Program
        and Non-Entitlement Grants                                  14.228 07-DB-3V-11-16-01-Z08            57,634                   –

        Total U.S. Department of Housing and Urban Development                                          15,442,785           9,663,390

Continued on next page.




1205-1363429                                                      131
                                                    City of Fort Lauderdale, Florida

                                           Schedule of Expenditures of Federal Awards
                                            and State Financial Assistance (continued)




                       Federal/State Grantor,
                       Pass-through Grantor                            CFDA#        Contract/                          Disbursements to
                   Federal Programs/State Projects                     CSFA #     Grant Number         Expenditures     Subrecipients

U.S. Department of the Interior, National Park Service:
   Indirect Programs:
   Outdoor Recreation_Acquisition Development and Planning
      Passed Through Florida Department of Environmental Protection
        Land & Water Conservation Fund - Bill Keith Preserve Project     15.916 LW563                       195,000                   –

        Total U.S. Department of Interior, National Park Service                                            195,000                   –


U.S. Department of Justice:
   Direct Programs:
   Bulletproof Vest Partnership Program
        FY 2007 Program                                                  16.607 N/A                           2,420                   –
        FY 2009 Program                                                  16.607 N/A                           3,940                   –
        FY 2010 Program                                                  16.607 N/A                          15,438                   –
                                                                                                             21,798                   –
   American Recovery and Reinvestment Act
      COPS Hiring Recovery Program                                       16.710 2009-RJ-WX-0025            1,040,463                  –
                                                                                                           1,040,463                  –
   Indirect Programs:
   Edward Byrne Memorial Justice Assistance Grant Program
     Passed Through Florida Department of Law Enforcement
        Operation Last Call 4                                            16.738 2011-JAGC-BROW-13-B2-228     45,912                   –
     Passed Through Broward Sheriff's Office
        2008 Byrne Justice Assistance Grant (JAG)                        16.738 2008-DJ-BX-0537                 655                   –
        2009 Byrne Justice Assistance Grant (JAG)                        16.738 2009-DJ-BX-1425              68,161                   –
        2010 Edward Byrne Justice Assistance Grant (JAG)                 16.738 2010-DJ-BX-0414              21,524                   –
        Total CFDA #16.738                                                                                  136,252                   –
   American Recovery and Reinvestment Act
   Recovery Act - Edward Byrne Memorial Justice Assistance Grant
     Passed Through Broward Sheriff's Office
        2009 Byrne Justice Assistance Grant - Recovery Funds             16.804 2009-SB-B9-3324              96,585                   –
        Total Justice Assistance Grant Cluster                                                              232,837                   –

        Total U.S. Department of Justice                                                                   1,295,098                  –


U.S. Department of Transportation:
   Direct Programs:
   Federal Transit_Capital Investment Grant
        Shuttles/PM Admin - Beach Shuttle Program                        20.500 FTA-G11                     114,464                   –
        Design/Engineering Sistrunk Corridor                             20.500 FTA-G14                      68,599                   –

   Indirect Programs:
     Passed Through Broward County
        Convention Connection Shuttle Service                            20.500 N/A                          60,107                   –
                                                                                                            243,170                   –



1205-1363429                                                           132
                                                  City of Fort Lauderdale, Florida

                                          Schedule of Expenditures of Federal Awards
                                           and State Financial Assistance (continued)




                       Federal/State Grantor,
                       Pass-through Grantor                                CFDA#         Contract/                      Disbursements to
                   Federal Programs/State Projects                         CSFA #      Grant Number      Expenditures    Subrecipients

   Direct Programs:
   Airport Improvement Program
        Rehabilitate and Realign Taxiway Golf - Phase 1 Design               20.106 3-12-0024-025-2010        49,748                   –

   Indirect Programs:
   Highway Planning and Construction
     Passed Through Florida Department of Transportation
        NW 7/9 Avenue Connector                                              20.205   ANT82                  437,987                   –
        Flagler Drive Greenway & Bicycle Facilities                          20.205   AP732                   27,608                   –
        NE 15th Avenue Median Landscaping                                    20.205   APZ02                   78,960                   –
        Sistrunk Boulevard from Andrews Avenue to 19th Avenue Streetscap     20.205   APX83                1,513,785                   –
        Harborage Isle Drive Bridge #865778 Rehabilitation                   20.205   APY18                  410,776                   –
        SR-838 / Sunrise Boulevard Landscaping                               20.205   APY82                   85,767                   –
        SR-870 / Commercial Boulevard from E of NE 19 Landscaping            20.205   APY84                  131,495                   –
        NW 7th Terrace Sidewalk                                              20.205   APY54                   24,557                   –
        SE 10th Avenue Sidewalk                                              20.205   APY53                   89,180                   –

                                                                                                           2,800,115                   –
   American Recovery and Reinvestment Act
   Highway Planning and Construction Recovery
     Passed Through Florida Department of Transportation
       NW Neighborhood Enhancements for Pedestrian & Facilities
       Improvement                                                           20.205 APV11                    352,337                   –

                                                                                                           3,152,452                   –

        Total U.S. Department of Transportation                                                            3,445,370                   –


U.S. Environmental Protection Agency:
   Nonpoint Source Implementation Grants
   Indirect Programs:
      Passed Through Florida Department of Environmental Protection
        North Fork of the New River Water Quality Improvements               66.460 G0265                        813                   –

        Total U.S. Department of Environmental Protection                                                        813                   –


U.S. Department of Energy:
   Direct Programs:
   American Recovery and Reinvestment Act
   Energy Efficiency and Conservation Block Grant Program (EECBG)
        Fort Lauderdale, FL Energy Efficiency Block Grant - Recovery Act     81.128 DE-EE0000776             841,199             332,868

        Total U.S. Department of Energy                                                                      841,199             332,868




1205-1363429                                                               133
                                                    City of Fort Lauderdale, Florida

                                          Schedule of Expenditures of Federal Awards
                                           and State Financial Assistance (continued)




                        Federal/State Grantor,
                        Pass-through Grantor                                 CFDA#            Contract/                          Disbursements to
                    Federal Programs/State Projects                          CSFA #         Grant Number          Expenditures    Subrecipients

U.S. Department of Homeland Security:
   Direct Programs:
   Assistance to Firefighters Grant
        FY 2009 Assistance to Firefighters Grant                                 97.044 EMW-2009-FO-11090             854,289                   –

                                                                                                                      854,289                   –
   Indirect Programs:
   Hazard Mitigation Grant
     Passed Through Florida Division of Emergency Management
        Fort Lauderdale, Police Department, Wind Retrofit Project                97.039 09HM-37-11-16-02-052          296,593                   –

                                                                                                                      296,593                   –
   Homeland Security Grant Program
     Passed Through Florida Division of Emergency Management
       Fiscal Year 2009-10 SHSGP - Citizen Corps and CERT program                97.067 10-CI-43-11-16-02-305           1,199                   –
       Fiscal Year 2008-2009 SHSGP - Metropolitan Medical Response               97.067 10-DS-44-11-16-02-437         319,969                   –
       Fiscal Year 2009-10 SHSGP - FY09 Metropolitan Medical Response            97.067 10-DS-44-11-16-20-439              44                   –
     Passed Through City of Miramar
       FY 2006 Urban Area Security Initiative (UASI) Grant Program               97.067   07-DS-5S-11-16-02-259        63,654                   –
       FY 2007 Urban Area Security Initiative (UASI) Grant Program               97.067   08-DS-62-11-16-02-296        12,651                   –
       FY 2008 Urban Area Security Initiative (UASI) Grant Program               97.067   09-DS-48-11-16-02-448       259,210                   –
       FY 2009 Urban Area Security Initiative (UASI) Grant Program               97.067   11-DS-32-11-16-02-017        11,759                   –
       FY 2006 Urban Area Security Initiative (UASI) Grant Program               97.067   07-DS-5S-11-16-02-259         2,587                   –
       FY 2008 Urban Area Security Initiative (UASI) Grant Program               97.067   09-DS-48-11-16-02-448        18,812                   –
       FY 2009 Urban Area Security Initiative (UASI) Grant Program               97.067   11-DS-32-11-16-02-017        27,850                   –

                                                                                                                      717,735                   –
   Disaster Grants - Public Assistance (Presidentially Declared Disasters)
     Passed Through Florida Department of Community Affairs
       Public Assistance Grants - Wilma                                       97.036      06-WL-&K-11-16-02-650       418,624                   –
                                                                                                                      418,624                   –

        Total U.S. Department of Homeland Security                                                                  2,287,241                   –




        Total Expenditures of Federal Awards                                                                      $ 23,607,118   $      9,996,258




1205-1363429                                                                 134
                                                    City of Fort Lauderdale, Florida

                                         Schedule of Expenditures of Federal Awards
                                          and State Financial Assistance (continued)




                       Federal/State Grantor,
                       Pass-through Grantor                             CFDA#        Contract/                   Disbursements to
                   Federal Programs/State Projects                      CSFA #     Grant Number   Expenditures    Subrecipients

III. STATE FINANCIAL ASSISTANCE

Florida Department of Law Enforcement:
   Direct Projects:
   Drug Control/Money Laundering Investigations - Matching Funds
        Operation Cross Town                                              71.005 N/A                    3,340                   –
        Operation Creole Express                                          71.005 N/A                   10,750                   –
        Operation Crack Down                                              71.005 N/A                    4,671                   –

        Total Florida Department of Law Enforcement                                                    18,761                   –


Florida Department of Environmental Protection:
   Direct Projects:
   Florida Recreation Development Assistance Program
        Flagler Village Park ( FRDAP)                                     37.017 A9139                129,611                   –

   Statewide Surface Water Restoration and Wastewater Projects
        Fort Lauderdale NE Drainage Area Improvements                     37.039 LP6719                15,969                   –
        Fort Lauderdale River Oaks Preserve Stormwater Project            37.039 LP06101              500,047                   –

                                                                                                      516,016                   –

        Total Florida Department of Environmental Protection                                          645,627                   –


Florida Housing Finance Corporation:
   Direct Projects:
        State Housing Initiative Partnership Program (SHIP)               52.901 N/A                   16,394                   –
        State Housing Initiative Partnership Program (SHIP)               52.901 N/A                  850,747                   –

        Total Florida Housing Finance Corporation                                                     867,141                   –


Florida Department of Transportation
   Direct Projects:
   State Highway Project Reimbursement
        Sea Turtle Friendly Decorative Lighting Fixtures along SR-A1A     55.023 APK-19                33,812                   –

   Intermodal Development Program
        Streetscape and Enhancement along Sistrunk Boulevard              55.014 APP03                149,752                   –
                                                                                                      149,752                   –




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                                                    City of Fort Lauderdale, Florida

                                        Schedule of Expenditures of Federal Awards
                                         and State Financial Assistance (continued)




                       Federal/State Grantor,
                       Pass-through Grantor                               CFDA#          Contract/                             Disbursements to
                   Federal Programs/State Projects                        CSFA #       Grant Number             Expenditures    Subrecipients

   Aviation Development Grants
       Rehabilitation of Taxiways C & D                                     55.004   APZ37                          223,688                   –
       Rehabilitate Taxiway B at Fort Lauderdale Executive Airport          55.004   AP021                           24,992                   –
       Aviation Equipment & Service Facility Project                        55.004   APX07                          247,233                   –
       Design Customs Building & Apron                                      55.004   AP091                           34,390                   –
       Design Taxiway Golf at Fort Lauderdale Executive Airport             55.004   APZ38                            1,309                   –

                                                                                                                    531,612                   –

       Total Florida Department of Transportation                                                                   715,176                   –


Florida Department of Health
   Indirect Projects:
   County Grant Awards
      Passed Through Broward County
        Automatic Chest Compression Devices                                 64.005   08-OMETS-8261-01                61,620                   –
        Ambulance Safety for Kids                                           64.005   09-OMETS-8261-02                20,667                   –
        Child Safety Restraint and Laryngectomy & Tracheostomy Awarenes     64.005   09-HSD-EMS-8261-01               1,409                   –
        All-terrain Medics and Training Manikins                            64.005   10-OMETS-8261-01(02)(03)        27,060                   –

       Total Florida Department of Health                                                                           110,756                   –




IV. NON CASH STATE FINANCIAL ASSISTANCE

   Indirect Projects:
   County Grant Awards
     Passed Through City of Sunrise
        Scanning Hardware and Software for Victim Tracking                  64.005 10-OMETS-8151-01(09)(10)           7,180                   –
        Trauma Tuurniquets for Mass Casualty Incidents                      64.005 N/A                                3,192                   –
     Passed Through City of Tamarac
        Therapeutic Hypothermia Induction Case                              64.005 10-OMETS-8271-01(14)(15)           9,728                   –
     Passed Through City of Pompano Beach
        ALS Non-Transport Refrigerated Drug Box                             64.005 10-OMETS-8271-01(07)               9,900                   –
        Mobile Bench Cabinets with Cabents Inventory                        64.005 07-OMETS-8153-01                   4,514                   –

                                                                                                                     34,514                   –


       Total Expenditures of State Financial Assistance                                                         $ 2,391,975    $              –

       See accompanying notes.




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                              City of Fort Lauderdale, Florida

                      Notes to Schedule of Expenditures of Federal
                        Awards and State Financial Assistance

                                Year Ended September 30, 2011


1. General

The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance
(the Schedule) presents the activity of all federal awards programs and state financial assistance
projects of the City of Fort Lauderdale, Florida (the City) for the year ended September 30, 2011.
Federal awards programs and state financial assistance projects received directly as well as
passed through other government agencies are included on the Schedule.

2. Basis of Accounting

The accompanying Schedule is presented using the modified accrual basis of accounting for
expenditures accounted for in the governmental funds and the accrual basis of accounting for
expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is
both measurable and available for use during the fiscal year and expenditures are recognized in
the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are
recognized in the period liabilities are incurred.

3. Program Clusters

OMB Circular A-133 defines a cluster of programs as a grouping of closely related programs
that share common compliance requirements. Based on this definition, similar programs deemed
to be a cluster of programs are presented accordingly.

4. Contingency

The grant revenue amounts received are subject to audit and adjustment. If any expenditures or
expenses are disallowed by the grantor agencies as a result of such an audit, any claim for
reimbursement to the grantor agencies would become a liability of the City. In the opinion of
management, all grant expenditures are in compliance with the terms of the grant agreements and
applicable federal and state laws and regulations.




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                              City of Fort Lauderdale, Florida

                       Notes to Schedule of Expenditures of Federal
                     Awards and State Financial Assistance (continued)




5. Financial Project Numbers

The following are the financial project numbers and contract numbers for the various Florida
Department of Transportation and U.S. Department of Transportation grants with expenditures
incurred during fiscal year 2011.

 Financial Project        Contract
     Number               Number                                 Description

Florida Department of Transportation

424027-1-58-01             APK-19          Sea Turtle Friendly Decorative Lighting Fixtures
425124-1-94-01             APP03           Streetscape and Enhancement along Sistrunk Blvd
420763-1-94-01             APZ37           Rehabilitation of Taxiways C & D
420762-1-94-01             AP021           Rehabilitate Taxiway B at Fort Lauderdale Executive
                                              Airport
428556-1-94-01             APX07           Aviation Equipment & Service Facility Project
420767-1-94-01             AP091           Design Customs Building & Apron
420765-1-94-01             APZ38           Design Taxiway Golf at Fort Lauderdale Executive Airport

U.S. Department of Transportation

FL-03-0291-00              FTA-G11         Shuttles/PM Admin – Beach Shuttle Program
FL-03-0326-00              FTA-G14         Design/Engineering Sistrunk Corridor
420765-1-94-01        3-12-0024-025-2010   Rehabilitate and Realign Taxiway Golf – Phase 1 Design
230726-1-38-01              ANT82          NW 7/9 Avenue Connector
418029-1-38/58-01           AP732          Flagler Drive Greenway & Bicycle Facilities
414158-1-58-01              APZ02          NE 15th Avenue Median Landscaping
409421-1-58-01              APX83          Sistrunk Boulevard from Andrews Avenue to 19th Avenue
408352-1-58-01              APY18          Harborage Isle Drive Bridge #865778 Rehabilitation
416317-1-58-01              APY82          SR-838 / Sunrise Boulevard Landscaping
414157-1-58-01              APY84          SR-870 / Commercial Boulevard from E of NE 19
423185-1-58-01              APY54          NW 7th Terrace Sidewalk
423184-1-58-01              APY53          SE 10th Avenue Sidewalk
423787-1-58-01              APV11          NW Neighborhood Enhancements




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                               City of Fort Lauderdale, Florida

                     Notes to Schedule of Expenditures of Federal
                   Awards and State Financial Assistance (continued)




6. Florida Department of Revenue – Pro Sports Distribution Grant

During fiscal year 2007, the City entered into an agreement with the Baltimore Orioles Limited
Partnership (the Agreement) for the utilization of a City facility. The City became eligible to
receive funding from the State of Florida in connection with fulfilling its commitments under the
Agreement. As of September 30, 2011, the State of Florida has remitted approximately
$2.3 million to the City in connection with this Agreement. The Baltimore Orioles subsequently
decided not to utilize the City’s facility and the City has not incurred the planned costs related to
preparing the facility for the Orioles. Accordingly, the City has on deposit approximately
$2.3 million that may be required to be repaid to the State of Florida. This amount has not been
reflected on the Schedule for the year ended September 30, 2011 as the City did not incur any
expenditures.

These funds were returned to the state in December 2011.




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                               City of Fort Lauderdale, Florida

                        Schedule of Findings and Questioned Costs

                             For the Year Ended September 30, 2011


                            Part I – Summary of Auditor’s Results

Financial Statements Section

 Type of auditor’s report issued:                                    Unqualified

 Internal control over financial reporting:
   Material weakness(es) identified?                     X    Yes             No
   Significant deficiency(ies) identified?               X    Yes             None reported
   Noncompliance material to financial statements
    noted?                                                    Yes        X    No

Federal Awards and State Projects Section

 Internal control over major programs:
   Material weakness(es) identified?                     X    Yes             No
   Significant deficiency(ies) identified?               X    Yes             None reported

 Type of auditor’s report issued on compliance for      Qualified for the CDBG-Entitlement
  major programs:                                        Grants Cluster (CFDA Nos. 14.218
                                                         and 14.253) and the HOPWA
                                                         program (CFDA No. 14.241);
                                                         Unqualified for all other major
                                                         programs

 Any audit findings disclosed that are required to be
  reported in accordance with section .510(a) of
  OMB Circular A-133, Section 215.97, Florida
  Statutes, and Chapter 10.550, Rules of the Auditor
  General, State of Florida?                             X    Yes             No




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                              City of Fort Lauderdale, Florida

                  Schedule of Findings and Questioned Costs (continued)




Identification of major federal programs and state projects:

Federal Programs

         CFDA Number                      Federal Agency/Name of Federal Program
                                 U.S. Department of Housing and Urban Development:
  14.218 and ARRA-14.253          CDBG Entitlement Grants Cluster
           14.239                 Home Investment Partnerships Program
           14.241                 Housing Opportunities for Persons With AIDS
                                 U.S. Department of Justice:
               16.710             Public Safety Partnership and Community Policing Grants –
                                    ARRA
        20.205, including        U.S. Department of Transportation:
          ARRA-20.205            Highway Planning and Construction

               81.128            U.S. Department of Energy
                                  Energy Efficiency and Conservation Block Grant – ARRA
                                 U.S. Department of Homeland Security:
               97.044             Assistance to Firefighters Grant
               97.067             Homeland Security Grant Program
State Financial Assistance Projects

         CSFA Number                          State Agency/Name of State Project
                                 Florida Department of Transportation:
               55.004              Aviation Development Grants

                                 Florida Housing Finance Corporation:
               52.901              State Housing Initiative Partnership Program
 Dollar threshold used to distinguish between
  Type A and Type B programs:
    • Federal Programs                                                $ 708,214
    • State Projects                                                  $ 300,000
 Auditee qualified as low-risk auditee?                         Yes        X      No


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                Schedule of Findings and Questioned Costs (continued)




                        Part II – Financial Statement Findings Section

This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts,
violations of provisions of contracts and grant agreements, and abuse related to the financial
statements for which Government Auditing Standards require reporting in a Circular A-133
Audit.

A. Current Year Findings

None.

B. Prior Year (PY) Findings

The following findings reported in prior years remain applicable and are deemed significant
deficiencies and/or material weaknesses in the current year.

PY – 1 Capital Assets

Criteria

Controls over the process of recording and tracking capital assets should be designed and
operating effectively to ensure that the amounts recorded in the financial statements are an
accurate representation of the capital assets actually owned by the City, as well as the value of
those capital assets, as of the end of the fiscal year.

Condition/Cause

The City had in excess of $1 billion as of September 30, 2011, invested in capital assets net of
accumulated depreciation. The detail of capital assets is currently maintained in Excel
spreadsheets, which increases the risk of error.

Effect

Capital assets recorded in the financial statements may not reflect actual capital assets owned by
the City, or the appropriate value of those assets, including the effects of depreciation on assets
placed into service.




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                               City of Fort Lauderdale, Florida

                 Schedule of Findings and Questioned Costs (continued)




Recommendation

We have been informed that the City has acquired an automated property control system. The
City should ensure that the property control system is implemented in a timely manner to ensure
that all fixed assets are properly accounted for. The property control ledger should be reconciled
to FAMIS on a monthly basis. Additionally, capital asset records should be maintained in
sufficient detail to enable the identification of costs associated with specific assets (i.e. individual
asset records should exist for each significant component of a larger asset as such level of
information will assist in accurately evaluating and recording asset deletions and/or
impairments).

Management Response and Corrective Action Plan

As of December 1, 2011, the Finance Department has developed a Request for Proposals to
acquire specialized project management services to develop the implementation plan, coordinate
the physical inventory to build a new data base, with related costing, lives, etc. The expected
implementation date is summer 2015.

PY – 2 Capital Assets – Physical Inventory

Criteria

Controls over the process of recording and tracking capital assets should be designed and
operating effectively to ensure that the amounts recorded in the financial statements are an
accurate representation of the capital assets actually owned by the City, as well as the value of
those capital assets, as of the end of the fiscal year.

Condition/Cause

The City has not performed a physical inventory of capital assets for several years.

Effect

Capital assets recorded in the financial statements may not reflect actual capital assets owned by
the City, or the appropriate value of those assets, including the effects of depreciation on assets
placed into service.




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                              City of Fort Lauderdale, Florida

                Schedule of Findings and Questioned Costs (continued)




Recommendation

In connection with the implementation of a new property control system, the City should
perform a physical inventory of all capital assets to ensure that all recorded assets exist and the
carrying amounts, depreciable lives and salvage value are proper.

Management Response and Corrective Action Plan

The original physical inventory will be taken as part of the data gathering project to build a new
data base. Part of the overall project is to develop procedures for the acquisition, depreciation,
disposal and periodic physical inventories. The expected completion date is summer 2015.

PY-3 Calculation of Compensated Absences

Criteria

Controls over the process of calculating the liability for compensated absences should be
designed and operating effectively to ensure that the amounts recorded in the financial
statements are an accurate representation of the amounts actually due to employees as of the end
of the fiscal year.

Condition/Cause

During our testing of the compensated absences liability, we identified errors in the underlying
data used in the calculation. Specifically, we noted that accumulated sick hours per the City’s
compensated absences detail did not always correspond to the City’s payroll system records. The
City performed an analysis to extrapolate the errors identified and estimate the total dollar impact
on the liability. An estimate was necessary as the City could identify the number of sick hours
owed to employees as of fiscal year end based on the payroll system records, however, the rate
of pay corresponding to the hours owed was estimated by using an average rate. Per City policy,
sick days are accrued at the pay rate in effect in the period in which they are earned and days
taken are used on a last in first out (LIFO) basis. Accordingly, applying the employees’ current
rate of pay to the hours owed as of fiscal year end would overstate the actual amount of the
liability since part or all of the hours owed may have been earned at lower rates of pay. A manual
process is completed at employee termination in order to determine the actual payment amount
based on the rate of pay as sick time was earned and used over the period of employment. As
performing the manual calculation for all employees was not feasible, an average rate of pay
over the length of employment for each individual was used.



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                              City of Fort Lauderdale, Florida

                Schedule of Findings and Questioned Costs (continued)




Effect

Compensated absences of the City may not reflect actual liability amounts, based on the method
of estimation. Payouts to employees could be substantially different from the accrued amount,
based on the change each individual employee’s rate of pay at the time the compensated absence
hour was earned.

Recommendation

We recommend that the City review the current inputs into the compensated absences calculation
process and implement monitoring controls to ensure that the data used in the calculation is
accurate and complete. Further, the City should review the mechanics of the sick leave payable
and determine if the process can be automated in order to alleviate the need for manual
calculations.

Management Response and Corrective Action Plan

In order to ascertain that current inputs into the compensated absences calculation process were
accurate and complete for financial reporting for fiscal 2011, the Human Resource Department
manually calculated, from a listing of all active employees, the sick leave payout balances for 30
employees as of September 30, 2011. The manual calculations were compared to calculations
based upon the payroll system provided rates of pay with accrued hours at each rate of pay. We
determined the percentage of error and adjusted our original calculation to more accurately
approximate the manually calculated amounts. Using this process, we believe we will more than
likely find that only a certain percentage of the population will need adjusting due to the
incorrect data conversion in 2002. Hires after that date should equal or approximate the manual
calculation. We have partially implemented this plan; however, the data base in place is not
sufficient to eliminate the manual procedures described.




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                              City of Fort Lauderdale, Florida

                 Schedule of Findings and Questioned Costs (continued)




               Part III – Federal Awards and State Financial Assistance Projects
                              Findings and Questioned Costs Section

This section identifies the audit findings required to be reported by OMB Circular A-133
section .510(a), Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor
General, State of Florida, such as material weaknesses, significant deficiencies, and material
instances of noncompliance, including questioned costs, as well as any abuse findings involving
federal awards or state projects that are material to a major program or state project.

Finding 2011-01 Vendor Screening for Suspension and Debarment

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

U.S. Department of Homeland Security:
 Homeland Security Grant Program (HS), CFDA No. 97.067

Criteria

Circular A-102 (d) states that non-Federal entities are prohibited from contracting with or
making sub-awards under covered transactions to parties that are suspended or debarred or
whose principals are suspended or debarred. Non-Federal entities are required to perform a
verification check for covered transactions, by checking the Excluded Parties List System
(EPLS) maintained by the General Services Administration (GSA), collecting a certification
from the entity, or by adding a clause or condition to the covered transaction with the entity. All
nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are
considered covered transactions.

Condition/Context

CDBG

Total procurements in fiscal 2011 amounted to $2,577,007. We selected 8 procurements for
testing, representing $2,042,757 of the fiscal 2011 procurements. For two of our sample
selections representing $480,748 of the total fiscal 2011 procurements, no documentation was
maintained evidencing that the City checked the EPLS database, and certification from the
vendor was not collected or a clause or condition included in the contract.


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                               City of Fort Lauderdale, Florida

                Schedule of Findings and Questioned Costs (continued)




HS

We selected 12 procurements for testing, representing $454,945 of the total fiscal 2011
procurements of $717,734. We noted no documentation evidencing that the City screened
vendors through the EPLS database for four out of 12 vendors selected for testing, representing
$286,191 of total procurements for fiscal 2011. Additionally, we noted no documentation
evidencing the appropriate level of approval to enter into a purchase order or contract for two out
of the 12 vendors selected for testing.

Questioned Cost

N/A

Cause

Internal controls with respect to suspension and debarment were not designed or operating
effectively as the City’s files did not contain evidence that the vendor or the subrecipient, as
applicable, was not included on the EPLS and therefore eligible to receive federal funds. There
was no evidence that the City had obtained a certification from the entity, or added a clause or
condition to the contract with the entity. Additionally, for some vendor transactions, appropriate
approval was not documented, and there was no evidence of review or approval for the
transaction provided.

Effect

This could result in payments being made to suspended or disbarred vendors.

Recommendation

For all new and existing contracts funded with federal grants, the City should develop a
consistent procedure to require that the preparer of the bid tabulation sheet (or other responsible
party) perform verification of the recommended vendor or subrecipient by checking the EPLS
(and documenting when the verification was performed and by whom), collecting a certification
from the entity, or adding a clause or condition to the contract with the entity. The City should
ensure, for all existing contracts that are funded with federal grant programs, that the verification
of proper vendor/subrecipient exclusion from the EPLS system is performed and the
documentation of the EPLS verification check should be maintained by the City.




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                              City of Fort Lauderdale, Florida

                Schedule of Findings and Questioned Costs (continued)




Views of Responsible Officials and Planned Corrective Action

The Finance Department will reinforce the EPLS requirements to the City departments and the
Grant Administrator on ALL grant purchases, to make sure that all EPLS reports are checked at
the time an agency is selected through the City’s Procurement process, by the City department
and/or Grant Administrator. Although some EPLS verification forms were not included in the
files that were reviewed by the auditors, the vendors reviewed were neither disbarred nor
suspended. As recommended by the auditors, the City did incorporate language last year in our
competitive bids that states “The bidder or proposer certifies, by submission of a response to this
solicitation, that neither it nor its principals are presently debarred or suspended by any Federal
department or agency”. The Finance Department will send out a letter to all Departments that
any purchases utilizing grant funds MUST have an EPLS report printed and kept with the file for
that purchase.

The Procurement Division already incorporated into its Procurement Manual additional language
and directions for divisions on March 10, 2010, which will ensure that the City remains in
compliance with all future contracts. The City will also include an affirmative statement in all
future contracts that bidders are required to self-certify that all sub-contractors have been
properly screened through the EPLS.

Finding 2011-02 Reporting

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253
 Home Investment Partnerships Program (HOME), CFDA No. 14.239
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

U.S. Department of Energy:
 Energy Efficiency and Conservation Block Grant Program (EECBG), CFDA No. 81.128
 U.S. Department of Homeland Security:
 Homeland Security Grant Program (HS), CFDA No. 97.067




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                             City of Fort Lauderdale, Florida

               Schedule of Findings and Questioned Costs (continued)




Criteria

2 CFR Section 215.51, Section 1512 of the American Recovery and Reinvestment Act (ARRA),
and 2 CFR Part 170 indicate that performance and special reports are to be prepared accurately
and completely. 2 CFR Section 215.51 requires that for performance reports, data should agree
to records that accumulate and summarize the data, and the underlying data should be
accumulated and summarized in accordance with the required or stated criteria and methodology.
All applicable data elements should be included in the reports.

In addition, 2 CFR Section 215.52 requires that financial reports are prepared accurately and
completely. Reports shall be submitted timely and agree with the accounting records that support
the audited financial statements (general ledger) and the Schedule of Expenditures of Federal
Awards and State Financial Assistance.

Condition/Context

CDBG

We noted that the City did not complete or submit the required Federal Funding and
Transparency Act reports. Additionally, we noted that data included in two out of three
performance reports tested, the annual HUD 60002, Section 3 and NSP 2nd Quarterly
Performance Report (reporting period January 1, 2011 through March 31, 2011), did not agree to
the underlying accounting records.

HOME

We noted that the City did not complete or submit the required Federal Funding and
Transparency Act reports.

HOPWA

We noted there were discrepancies between amounts contained in the reports to expenditures
recorded in the general ledger for the one report we selected to test, the HUD 40110-D
Consolidated Annual Performance and Evaluation Report. Additionally, we noted that the City
did not complete or submit the required Federal Funding and Transparency Act report.




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                              City of Fort Lauderdale, Florida

                Schedule of Findings and Questioned Costs (continued)




EECBG

We noted that the City’s Section 1512 ARRA Reports for the quarters ended June 30 and
September 30, 2011 were not properly completed as they did not contain the required
subrecipient and subaward information.

HS

We noted for two out of five performance reports tested (Report 1 for GUASI07 for the quarter
ended December 31, 2010, and Report 3 for GUASI09 for the quarter ended June 30, 2011),
there were discrepancies between amounts disclosed in the GUASI Quarterly Project Status
Reports to expenditures recorded in the general ledger which were not reconciled. For Report 1
for GUASI07, we noted that the report showed total encumbered funds of $899,999, although the
grant agreement only awarded $698,600. For Report 3 for GUASI09, we noted that quarterly
expenditures were underreported in the amount of $53,408.

Questioned Costs

N/A

Cause/Effect

The reports submitted were not subjected to a thorough supervisory review to ensure accuracy
and completeness, including verification that amounts reported agreed with or were reconciled to
the accounting records. This could result in incorrect and/or inconsistent information between the
reports filed and the underlying financial records and indicates that the City may not be in
compliance with the provisions of the grant programs. Further, some reports were not submitted
to the appropriate grantor agency, which also indicates that the City may not be in compliance
with the provisions of the grant programs. Controls and monitoring activities over the
preparation of the reports, including supervisory review and approval, are not operating
effectively.

Recommendation

The City should ensure that employees are properly trained in reporting requirements.
Additionally, the City should ensure that all required financial/performance statutory reports are
properly prepared, reconciled to the underlying financial records, as applicable, and reviewed by
supervisory personnel prior to being filed with the grantor. Procedures should be put in place to



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                             City of Fort Lauderdale, Florida

                Schedule of Findings and Questioned Costs (continued)




ensure that all required reports are submitted timely to the grantor, and copies of all submitted
reports are maintained in the City’s program files.

Views of Responsible Officials and Planned Corrective Action

CDBG/HOME

The current Housing and Community Development staff was unaware of the new Federal
Funding and Transparency Act (FFATA) report requirements prior to this audit. The staff that
attended training on this Act are no longer employees of HCD and the information was
nottransitioned appropriately. HCD staff will review the requirements and ensure appropriate
training of staff and future compliance. The reports tested under CDBG were corrected during
the quarter following the audit and a copy of the corrected report was provided to the Auditors.
However, because the quarter in which the correction was made was not tested, the finding could
not be cleared. HCD will add the FFATA process within our account set up and finalize the
report as part of the Annual Action Plan process.

HOPWA

For the HOPWA Grant, the discrepancies were caused by the reporting of duplicate clients,
duplicate funding per client and duplicate supportive services within HOPWA’s facility-based
programs, which are reported by the sub recipients. The City has since begun to use the newly
purchased Provide Enterprises software system, which will ensure data is not duplicated between
the CAPER and the City’s General Ledger. The City recently made improvements to the Grant
Management Tracking System (GMTS) that will allow for more efficient tracking and
management of grant reporting requirements, which will aid in compliance of report
submissions.

EECBG

The sub recipient and sub award information for this grant is maintained by the Department in
the City’s Grant Management Tracking System (GMTS). The data from GMTS is uploaded to
the 1512 ARRA report. Inadvertently, data from only one sub recipient was being uploaded to
the report during this automated process. The technical issue is being resolved internally and
staff will also manually verify that all sub recipient data has been uploaded to the ARRA report
in the future.




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                               City of Fort Lauderdale, Florida

                Schedule of Findings and Questioned Costs (continued)




HOMELAND

The quarterly reports for UASI are based on estimates that include what has been spent and what
the City is projecting to spend in the near future. Because the reports include projections, they
will not match the FAMIS system until the grant is closed. However, whenever actual
expenditures are reported, staff will confirm that reported financial data is consistent with what is
in FAMIS, the City’s Financial System.

Finding 2011-03 Subrecipient Monitoring

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253
 Home Investment Partnerships Program (HOME), CFDA No. 14.239
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

U.S. Department of Energy:
Energy Efficiency and Conservation Block Grant Program (EECBG), CFDA No. 81.128

Criteria

31 USC 7502(f)(2)(B) requires that pass-through entities monitor subrecipients’ use of federal
awards through reporting, site visits, regular contact, or other means to provide reasonable
assurance that the subrecipient administers federal awards in compliance with laws, regulations,
and the provisions of contracts or grant agreements and that performance goals are achieved.
Pass-through entities are also responsible for (1) ensuring that subrecipients subject to OMB
Circular A-133 have met the audit requirements and that the required audits be completed within
nine months of the end of the subrecipient’s audit period; (2) issuing a management decision on
audit findings within six months after receipt of the subrecipient’s audit report; and (3) ensuring
that the subrecipient takes timely and appropriate action on all audit findings. Also, pass-through
entities must properly execute award documents/agreements communicating federal award
information and compliance requirements to the subrecipient, including allowable activities
information.




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Condition/Context

CDBG

We noted that three out of four subrecipients selected for testing, representing $389,706 of the
total $761,618 that was disbursed to subrecipients during fiscal 2011, did not respond to the
City’s finding and concerns letter, issued by the City after their initial subrecipient monitoring
visit.

HOME

We noted that, the City did not perform any monitoring activities over the subrecipient selected
for testing during the year, which represented $512,392 of the total $550,667 that was expended
by subrecipients during fiscal 2011.

HOPWA

We noted that one out of two subrecipients tested, representing $4,625,782 of the total amount of
$8,418,379 that was passed through or expended by to subrecipients during fiscal year 2011, did
not respond to the City’s finding and concerns letter, issued by the City after their initial
subrecipient monitoring visits and the City did not perform monitoring of the same one out of
two subrecipients tested.

EECBG

We noted that one out of three subrecipients, tested, representing $75,987 of the total amount of
$637,029 that was passed through or expended by to subrecipients during fiscal year 2011, did
not meet the requirements of Central Contractor Registration (CCR) prior to receiving the
subaward.

Questioned Costs

Not applicable.

Cause

City personnel did not adhere to its subrecipient monitoring policies and procedures or the
provisions of OMB Circular A-133.



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Effect

In the absence of effective monitoring controls over subrecipients, the City may not be able to
support that the grant funds were utilized in accordance with the provisions of the grant
agreement with the grantor, resulting in non-compliance with the subrecipient monitoring
requirements of OMB Circular A-133.

Recommendation

The City should adhere to its policies and procedures to perform monitoring of its subrecipients’
compliance with the provisions of the subrecipient agreements, addendums and OMB Circular
A-133 in order to ensure that proper monitoring of subrecipients occur on an on-going basis
including the timely submission of audit reports and resolution of any audit findings.

Views of Responsible Officials and Planned Corrective Action

CDBG

HCD will update its sub recipient monitoring policies to include penalties to agencies that do not
respond to monitoring requests for meetings and/or information. HCD will set up a reminder
process to ensure the agencies are on task with responding to sub-recipient monitoring.

HOME

HCD attempted to monitor the agency selected for testing; after several attempts monitoring did
not occur. HCD will update its sub recipient monitoring policies to include penalties to agencies
that do not respond to monitoring requests for meetings and/or information.

HOPWA

HCD will update its sub recipient monitoring policies to include penalties to agencies that do not
respond to monitoring requests for meetings and/or information.

EECBG

The sub recipient and sub award information for this grant is maintained by the Department in
the City’s Grant Management Tracking System (GMTS). The data from GMTS is converted and
uploaded to the 1512 ARRA Federal report. All sub recipient and sub award information is
submitted on a quarterly basis and the Department has received email confirmation from Federal


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Reporting listing all sub recipient information as received. However, when the data file was
uploaded to the 1512 report, inadvertently only one sub recipient was being uploaded to the 1512
ARRA Federal report during this automated process. The technical issue is being resolved
internally and staff will also manually verify that all sub recipient data has been uploaded to the
ARRA report in the future.

2011-4 Special Tests and Provisions (Housing Quality Standards)

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

Criteria

24 CFR Sections 574.310(b)(1)-(2) indicates that the City’s projects that expend HOPWA
funding are responsible for (1) tracking units that require housing quality inspections, and (2)
verifying that the grantee performs inspections of acquisition/rehabilitation units and provides
repairs on a timely basis.

Condition/Context

We noted that for 5 out of 18 projects selected, from a total number of 77 fiscal 2011 projects
HOPWA housing projects that involve acquisition, rehabilitation, conversion, lease, repair of
facilities, new construction, project or tenant based rental assistance, the City did not perform re-
inspections or ensure deficiencies were corrected timely by subrecipients and tracked when
housing quality inspections are due to be performed, in accordance with the provisions of the
regulations. Additionally, we noted no evidence of the approval of the City’s authorized
administrator for one housing quality inspection tested. Further, we note that the Homeless
Information Management System does not identify when housing quality inspections are due.

Questioned Costs

Not applicable.




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Cause/Effect

The City did not properly monitor the Housing Quality Standards throughout the entire fiscal
year as required by the regulations. We noted that the City does not have procedures or controls
in place to ensure compliance.

Recommendation

The City should ensure that staff is properly trained with respect to the grant compliance
requirements. Additionally, policies and procedures should be formalized and implemented to
ensure that the required Housing Quality Standards are properly monitored. Inspection
documentation should be reviewed and approved by supervisory personnel, and evidence of this
review and approval maintained in the City’s grant program files.

Views of Responsible Officials and Planned Corrective Actions

HOPWA

HCD conducted all the required monitoring for the HOPWA units. Deficiencies were noted in
certain units and the agencies were awarded HOPWA funds to repair the units. The rehabilitation
funding was provided in the current year, FY 2012. HCD will update its administrative policies
to ensure HOPWA clients are not residing in units that require major repair.

Further, all Housing Quality Standards inspection forms were reviewed by two HCD managers.
While the inspection tested did not contain the administrator’s signature on the actual form, the
cover sheet that accompanied the inspection report was signed by the HOPWA Administrator. In
the future, HCD will ensure that all Housing Quality Standards forms are signed by the HOPWA
Administrator. HCD will require that each agency submit a budget that includes a line item for
repairs and maintenance.

2011-5 Equipment

Federal Program Information

U.S. Department of Homeland Security:
 Assistance to Firefighters Grant (FIRE), CFDA No. 97.044
 Homeland Security Grant Program (HS), CFDA No. 97.067




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Criteria

2 CFR Section 215.34 and 2 CFR Section 215.32 indicate that physical inventories of equipment
acquired using Federal awards are required to be performed at least every two years.

The same CFR Sections require that the City safeguard and maintain equipment acquired using
Federal awards, and that these items should be made available for physical inspection by auditors
or the grantor award agency.

Condition/Context

FIRE

During fiscal year 2011, the City purchased $1,003,890 worth of equipment with FIRE grant
funds. We noted that the City has not performed a physical inventory of equipment purchased
with grant awards in the past two years.

HS

During fiscal year 2011, the City purchased $565,806 worth of equipment with HS grant funds.
We were unable to inspect one item of equipment, costing $21,000, which was purchased with
grant awards. Additionally, we noted that the City has not performed a physical inventory of
equipment purchased with grant award funds in the past two years.

Questioned Costs

None

Cause/Effect

The City was unable to make available for physical inspection one item selected for testing. The
City’s policies and procedures do not provide for performing physical inventories at least every
two years for equipment purchased with grant awards.




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Recommendation

The City’s staff should adopt and incorporate policies and procedures for performing physical
inventories of equipment purchased with grant funding in accordance with OMB Circular A-133.

Views of Responsible Officials and Planned Corrective Actions

The City tracks all capital assets and can provide a listing to the departments of all equipment
acquired with grant funds. The City is presently looking into the acquisition of an automated
property control system and a physical inventory of all capital assets to automate the current
process and to allow for a full physical inventory every two years.

The reason the auditors were unable to inspect the physical equipment is because it happened to
be a software solution that the City had purchased that was still being developed and hosted off
site by the vendor. Development of this software had been delayed from timelines outlined in the
original contract. The vendor did not provide City staff with a login as requested by the auditors
in a timely manner because of this. However, the project has progressed to a point where the City
staff can now login and utilize the software. This situation is unique because software is not like
other assets that can be physically inventoried but City Staff will work closely with vendors in
the future to hold them accountable to timelines.

2011-6 Earmarking

Federal Program Information

U.S. Department of Justice:
 Public Safety Partnership and Community Policing Grants (COPS)-ARRA, CFDA No. 16.710




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Criteria

42 USC 3796dd(b) indicates that the CHRP-Hiring grant funds the approved entry-level salaries
and fringe benefits of newly hired or re-hired full-time officers for 36 months. The approved
entry-level salaries and fringe benefits are based on a grantee agency’s actual entry-level sworn
officer salary and fringe benefit costs and are identified on the Final Financial Clearance
Memorandum that is provided to the grantee agency. Any additional costs for higher than the
approved entry-level salaries and fringe benefits will be the responsibility of the grantee agency.
The Final Funding Memorandum included in the grant award agreement indicates the maximum
amounts for salaries and fringe benefits (which include the employer portions of Social Security
taxes, Medicare, health insurance, worker’s compensation insurance, and pension) that the
grantor may charge to the grant.

Condition/Context

We noted that the City charged more than the allowed employer portions of fringe benefits to the
grant program, as they exceeded the limitations on the amounts approved in the Final Funding
Memorandum in the grant award agreement, resulting in reimbursements requests which
inappropriately included these unallowed amounts.

Questioned Costs

Known questioned costs of $3,103.

Cause/Effect

The City’s policy is to charge ineligible payroll charges or payroll charges that exceed the
limitations of the Final Funding Memorandum to the City’s general fund, based upon the
expenditure amounts maintained in the City’s internal payroll tracking spreadsheet. The City’s
internal payroll tracking spreadsheet does not reconcile to the general ledger, which accounts for
grant expenditures and is used to request reimbursement for allowable grant expenditures.
Therefore, grant expenditures for fringe benefit charges in the general ledger exceeded fringe
benefit charges in the City’s internal payroll tracking spreadsheet and the Final Funding
Memorandum, and were inappropriately submitted for reimbursement by the grant program,
rather than charged to the City’s general fund. This could result in reimbursement for
unallowable costs.




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Recommendation

The City’s staff should reconcile the City’s internal payroll tracking spreadsheet to actual grant
expenditures per the general ledger on a regular basis and apply charges which exceed the Final
Funding Memorandum limitations to the City’s general fund, or use grant expenditures in the
general ledger as the basis of monitoring grant payroll expense limitations for reimbursement
requests and the City’s periodic earmarking requirements compliance checks.

Views of Responsible Officials and Planned Corrective Actions

The COPS Hiring & Recovery Act Grant requires that Federal Reports be submitted by the 10th
calendar day following the quarter’s end (ARRA 1512 Rpt) and the 30th day following the
quarter’s end (FFR 425 Rpt). Since the City reports expenditures under these grants on a cash
basis, the submitted reports only include payroll expenses that have actually been paid (not
accrued) at the quarter’s ending date.

At the grants inception, one (1) of the twelve (12) newly hired officers was certified at the date
of hire and received a salary above the entry level rate. During the course of the grant, negotiated
contractual salary adjustments also increased the officers’ salaries by a greater percentage than
the annual salary increases initially estimated in the 2009 COPS Hiring grant application.
However, the COPS Hiring grant only allows for reimbursement of entry-level salaries/benefits.

As a result of these circumstances, salaries in excess of entry-level, OT, Educational Incentive
Pay, Standby Pay, Holiday Pay, certain Shift Pay, and related FICA and Retirement expenses
that exceed the annual approved “earmarks” per position, must be individually calculated for
each payroll ending date, and charged back to the Department via Expense Transfer Vouchers
(ETV’s).

Throughout the quarter and at the quarter’s end, ETV’s for these ineligible grant expenses must
be reviewed by the Police Department, Finance. and the Senior Grants Accountant in the Finance
Department, before they are approved to be posted to the General Ledger (FAMIS). Additionally
in years one and two, workers compensation and retirement expenses were posted during year-
end close-outs which are not generally completed (with the final PPE’s accrued payroll and other
benefit accruals being posted back to FAMIS) until November/December each year.

With each of the 12 positions having a different 36-month grant “expenditure period,” grant
reporting deadlines which precede ineligible expense charge-back postings in FAMIS and the
length of time between yearend and posting of closeouts, it is extremely difficult for grant
reimbursements to match the GL.


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However; in order to remain in compliance with stated grant reporting deadlines, reports that do
not match the General Ledger at the date of reporting must routinely be submitted to United
States Department of Justice (USDOJ). Based on a similar finding in the prior year’s Single
Audit, a Grants Reimbursement Reconciliation Form was created to document quarterly
expenditures which do not match the GL (FAMIS) at the time of posting. These measures, along
with an annual review of salary/benefits reimbursed, by position and date of hire (not fiscal
year), are completed and additional ETVs are prepared to charge back any excess
salaries/benefits over allowable “earmarks” that are noted. And, as of the quarter ended 3/31/12,
staff has obtained the “earmark review” spreadsheet developed by the auditor during the FY
2011 single-audit and has already begun reconciling Salary/Benefit Reimbursement data to this
format.

2011-7 Statutory Reporting – SHIP

State Project Information

Florida Housing Finance Corporation (the Corporation):
  State Housing Initiatives Partnership (SHIP) Program, CSFA No. 52.901

Criteria

    1. In accordance with Section 420.9075(10), Florida Statutes, each eligible municipality
       shall submit to the Corporation by September 15 of each year, a report of its affordable
       housing programs and accomplishments through June 30, immediately preceding
       submittal of the report.

    2. Annual reports for the Closeout Fiscal Year (2008/2009) and Interim Fiscal Year
       (2009/2010) must be included in the submission to the Corporation.

    3. The reports must be certified and forwarded to the Corporation and shall bear the original
       signature of the authorized official or the authorized official’s designee. If submitted
       electronically, the certification of the report must be sent to the Corporation within three
       (3) working days of the report being electronically sent.

    4. The local SHIP administrator’s tracking system and annual reports must exactly match
       the information recorded in the local city or county’s general ledger.




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    5. SHIP administrators, therefore, are required to regularly reconcile their tracking system
       with the local finance department’s general ledger and meet with the director of their
       finance department to create a process that will ensure compliance with the single audit
       act.

Condition/Context

The financial information included in the Annual Report submitted to SHIP by the City was not
reconciled to and did not agree with the general ledger.

Questioned Costs

Unknown

Cause/Effect

The financial information submitted in the annual statutory reports was not reconciled to the
City’s general ledger. Accordingly, we were unable to validate the amount of expenditures
reported in the Annual Report, which indicates that the City is not in compliance with the
provisions of the SHIP Program Manual.

Recommendation

The City should implement procedures that require that the statutory reports be reconciled to the
general ledger and reviewed and approved by the appropriate supervisory personnel, prior to
being filed with the State.

Views of Responsible Officials and Planned Corrective Actions

Housing and Community Development (HCD) will meet with the Finance Department and
continue to work with them to establish a process by which staff can reconcile the State reports
to the City’s General Ledger prior to the submitting the reports. The City has worked closely
with Florida Housing Finance Corporation (FHFC), the State funders to develop a process that
was acceptable to them. That process has been implemented.




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2011-8 Statutory Earmarking – SHIP

State Project Information

Florida Housing Finance Corporation (the Corporation):
  State Housing Initiatives Partnership (SHIP) Program, CSFA No. 52.901

Criteria

    1. In accordance with Section 420.9075(7), Florida Statutes, each eligible municipality can
       use advanced funding deposited in the local housing assistance trust fund to administer
       and implement the local housing assistance plan.

    2. The cost of administering the plan may not exceed 5 percent of the local housing
       distribution moneys and program income, unless its governing body finds, by resolution,
       that 5 percent is insufficient. Eligible municipalities cost of administering the program
       may not exceed 10 percent of the local housing distribution plus 5 percent of program
       income.

Condition/Content

We noted that the City charged total administrative expenditures to the grant which were greater
than the 5% maximum limit disclosed in the statutes.

Questioned Costs

Known questioned costs of $2,213.

Cause/Effect

The Housing and Community Development (HCD) Department was unable to provide evidence
that the City Commission approved an increase in the allowable limits from 5 percent to 10
percent for the appropriate fiscal year for administering the local housing assistance plan. The
City charged expenditures greater than 5 percent to SHIP for administration of the grant
program.




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Recommendation

The HCD department should ensure that all appropriate Commission approvals are obtained and
that all City Commission Agenda Reports relating to SHIP are retained in the HCD Department’s
files, and ensure that the City does not charge amounts above the allowable limits for
administrating the program to the grant.

Views of Responsible Officials and Planned Corrective Actions

The City Commission has historically approved the increase in administrative funds. HCD will
seek formal City Commission approval to increase the administrative funds from 5% to 10% for
FY 2011 and for all future SHIP funds received by the City.

2011-09 Program Income – CDBG

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

Criteria

2 CFR Section 215.2 indicates that program income includes, but is not limited to, income from
fees for services performed, the use or rental of real property or personal property acquired with
grant funds, the sale of commodities or items fabricated under a grant agreement, and payments
of principal and interest on loans made with grant funds. Unless specified in the Federal
awarding agency regulations or the terms and conditions of the award, program income shall be
deducted from program outlays.

The Code of Federal Regulation (24 CFR sections 570.504(a)) requires that receipts and
expenditures related to program income must be accurately accounted for and program income
from CDBG funds should be treated as additional funds subject to all the same rules. Federal
regulations (24 CFR sections 570.500, 570.501, 570.504, 570.506, and 570.513) require that a
loan origination or servicing system be used to ensure loans are properly authorized, receivables
are properly established, earned income is properly recorded and used, and write-offs of
uncollected amounts are properly authorized.




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Condition/Context

The City’s records indicate that it received approximately $1,139,200 in program income during
fiscal year 2011. Program income amounts primarily represent loan repayments and rental
income. The City utilizes a spreadsheet to track individual program participants who potentially
represent sources of program income based on their involvement in the program. We were
unable to determine whether the program income reported was complete and that all amounts
due to the City were properly received, accounted for and reported in the general ledger and to
the grantor agency.

We noted that program income for CDBG is regularly reported in HUD’s Integrated
Disbursement & Information System (IDIS) by the City, as required by the grant program. The
City utilizes a spreadsheet as its mechanism to track the expenditure of program income.

Questioned Costs

Unknown

Cause

The City utilizes various spreadsheets to track program income from benefits paid on behalf of
participants, real property dispositions, loan repayments, rental income and other sources, which
does not track annual activity appropriately and completely.

Effect

The current reporting system records program income on the cash basis (i.e., when the payment
is received) and there is no evidence of tracking of payments due to the City but not yet paid.

The City does not have an adequate loan origination or servicing system in place to ensure loan
receivable are properly established, earned income is properly recorded, and write-offs of
uncollected amounts are properly authorized. This could result in amounts owed back to the
grantor agency not being properly tracked and accounted for.




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                Schedule of Findings and Questioned Costs (continued)




Recommendation

The City should record all deferred receivables using the City’s accounts receivable system.
Participants payments should be posted by Treasury staff and deferred loans that are added,
reduced, or forgiven should be properly accounted for by Finance staff upon receipt of evidence
that all compliance requirements have been met. We recommend that Finance Department
personnel become the process owners for managing the deferred loans receivable to ensure a
proper segregation of duties. For other sources of program income, the City should implement
procedures to ensure that all sources of program income have been properly captured, accounted
for, and used or returned to HUD in accordance with grant requirements. Additionally,
management should ensure that proper supervisory and review monitoring controls are in place
to ensure completeness of program income.

Views of Responsible Officials and Planned Corrective Action

In recognizing that Financial Reporting of grant activities has been a continuing problem,
beginning in FY 2013 the Finance Department will establish separate funds for all major HCD
grants and begin tracking both grant activity and the use of designated revenue within the City’s
comprehensive financial reporting system (FAMIS). Implementing this decision will begin the
minimization of using spreadsheets as the City’s primary means of tracking grant related
financial activity. The City is also in the process of training HCD staff on using the City’s Grant
Information Management System which will allow us to better anticipate deadlines, coordinate
and anticipate drawdown of grant revenue by sub recipient and ensure compliance with federal
timeliness guidelines for grant funds. The Finance Department is exploring options for an
Accounts Receivable application that will allow for aging, loan processing, interest calculation,
late payment penalties and late payment interest calculations and the all needed proper recording
information for the governmental as well as proprietary accounting needs.

2011-10 Special Tests and Provisions (Required Certifications and HUD Approvals)

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253




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Criteria

Pursuant to federal regulation 24 CFR Section 58.22, CDBG funds cannot be committed or
expended before receipt of HUD’s approval of the City’s Request for Release of Funds (RROF)
and the related certification of expenditure.

Condition/Context

We noted that the City obligated and expended 2010/11 CDBG Entitlement funds in the amount
of $326,253 prior to receiving HUD’s approval of the RROF.

Questioned Costs

$326,253

Cause

HCD’s staff did not adhere to the provisions of the regulation.

Effect

The absence of effective controls over the submission of required documents to HUD could
result in inappropriate expenditure of HUD funds. The lack of controls and effective policies
relating to the obligation and expenditure of CDBG funds may result in the City not be able to
support that they are in compliance with the provisions outlined in the grant agreement and
federal regulations, and may be required to return funding received to HUD.

Recommendation

The City should ensure that employees are properly trained in special tests and provisions
requirements for each grant. Additionally, the City should ensure that policies and procedures are
in place to confirm that the provisions of OMB Circular A-133 and the applicable grant
agreements are adhered to and that there is proper supervision and review.

Views of Responsible Officials and Planned Corrective Action

Prior to releasing any federal funds, staff ensured that all of the environmental reports were clear
of contamination. In the future, staff will be trained on appropriate procedures and will ensure
that the City receives the RROF from HUD prior to the expenditure of federal funds.


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Finding 2011-11 Subrecipient Monitoring

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253
 Home Investment Partnerships Program (HOME), CFDA No. 14.239
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

U.S. Department of Energy:
 Energy Efficiency and Conservation Block Grant Program (EECBG), CFDA No. 81.128

Criteria

31 USC 7502(f)(2)(A) requires that pass-through entities provide award documents/agreements
to subrecipients, which communicate federal award information and compliance requirements to
the subrecipient, including allowable activities information.

Condition/Context

CDBG

We noted that the City excluded the CFDA number, award name and award number in the
subaward agreements to all subrecipients selected for testing, representing $454,605 passed
through to the subrecipients, where total amounts expended by or passed through to subrecipients
during fiscal 2011 was $761,618.

HOME

We noted that the City excluded the CFDA number, award name and award number in the award
agreement to the subrecipient selected for testing, representing $512,392 passed through to the
subrecipient, where total amounts expended by or passed through to subrecipients during fiscal
2011 was $550,667.

HOPWA

We noted that the City excluded the CFDA number, award name and award number in the award
agreements and addendums to both subrecipients selected for testing, representing $5,882,778
passed through to the subrecipients, where total amounts expended by or passed through to
subrecipients during fiscal 2011 was $8,418,379.


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EECBG

We noted that the City excluded the CFDA number in all award agreements to subrecipients,
where total amounts expended by or passed through to subrecipients during fiscal 2011 was
$637,029.

Questioned Costs

Not applicable

Cause

City personnel did not adhere to its subrecipient monitoring policies and procedures or to the
provisions of 31USC Section 7502(f)(2)(A).

Effect

Subrecipients may not be aware that the funds received from the City are subject to the grant
requirements of the grantor agency and the audit requirements of OMB Circular A-133, causing
the subrecipient and the City to be out of compliance with grantor agency and audit
requirements. Non-compliance could result in the funds having to be returned to the grantor
agency.

Recommendation

The City should adhere to its policies and procedures to perform monitoring of its subrecipients’
compliance with the provisions of the subrecipient agreements, addendums and OMB Circular
A-133 in order to ensure that proper monitoring of subrecipients occur on an on-going basis
including the timely submission of audit reports and resolution of any audit findings.

Views of Responsible Officials and Planned Corrective Action

The Housing and Community Development Department is currently in the process of amending
the fiscal year 2012 Participation Agreements to ensure inclusion of CFDA#, award name, and
award number for each subrecipient.




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                       Summary Schedule of Prior Audit Findings

                                Year ended September 30, 2011


The current status of findings reported related to the audit of major federal awards programs or
state financial assistance projects for the years ended September 30, 2010 and 2009 is as follows:

A. Finding

Finding 2010-04 Vendor Screening for Suspension and Debarment

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

U.S. Department of Justice:
 Public Safety Partnership and Community Policing Grants (COPS), CFDA No. 16.710

U.S. Department of Homeland Security:
 Homeland Security Grant Program (HS), CFDA No. 97.067

Condition/Context

CDBG

We selected two vendors out of three in the population (with expenditures over $25,000 during
fiscal year 2010) for testing and noted that there was no evidence indicating that the vendors had
been determined by the City to be eligible to receive federal funds. We performed the EPLS
screening noting that the vendors were not listed in the EPLS system as suspended or debarred.

COPS

We selected two vendors out of five in the population for testing and noted that there was no
evidence indicating that the vendors tested had been determined by the City to be eligible to
receive federal funds. We performed the EPLS screening noting that the vendors were not listed
in the EPLS systems as suspended or debarred.




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                 Summary Schedule of Prior Audit Findings (continued)




HS

We selected 11 vendors for testing and noted that for five vendors there was no evidence
indicating that the vendor was determined by the City to be eligible to receive federal funds. We
performed the EPLS screening noting that the five vendors were not listed in the EPLS systems
as suspended or debarred.

Recommendation

For all new and existing contracts funded with federal grants, the City should develop a
consistent procedure to require that the preparer of the bid tabulation sheet (or other responsible
party) perform verification of the recommended vendor or subrecipient by checking the EPLS
(and documenting when the verification was performed and by whom), collecting a certification
form the entity, or adding a clause or condition to the contract with the entity. The City should
ensure, for all existing contracts that are funded with federal grant programs, that the verification
of proper vendor/subrecipient exclusion from the EPLS system is performed and the
documentation of the EPLS verification check should be maintained by the City.

Current Status

Comment repeated: Also, see current year finding 2011-01 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.

Finding 2010-05 CDBG Program Income

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

Condition/Context

The City’s records indicate that it received approximately $284,500 in program income during
fiscal year 2010. Program income amounts primarily represent loan repayments and rental
income. The City utilizes Microsoft Excel to maintain a listing to track participants that would
potentially be the source of program income. We were unable to determine whether program
income was complete and that all amounts due to the City were properly received, accounted for
and reported in the general ledger and to the grantor agency.



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We noted that program income for CDBG is reported in HUD’s Integrated Disbursement &
Information System (IDIS) by the City. The City utilizes a Microsoft Excel spreadsheet as its
mechanism to track how program income is spent.

Recommendation

The City should record all deferred receivables on the City’s accounts receivable system.
Participants payments should be posted by Treasury staff and deferred loans that are added or
forgiven should be properly accounted for by Finance staff upon receipt of evidence that all
compliance requirements have been met. We recommend that Finance Department personnel
become the process owners for managing the deferred loans receivable to ensure a proper
segregation of duties. For other sources of program income, the City should implement
procedures to ensure that all sources of program income have been properly captured, accounted
for, and used or returned to HUD in accordance with grant requirements. Additionally,
management should ensure that proper supervisory and review monitoring controls are in place
to ensure completeness of program income.

Current Status

HCD is following its Corrective Action Plan. The City has developed procedures that ensure new
deferred receivables are recorded in the receivables log. HCD finance reviews the mortgage and
modification of mortgage documents prior to being recorded. However, HCD has lost its
Accountant. Although the lose will be temporary, this loss will create a critical issue related to
fiscal compliance until the position is filled.

Comment repeated: Also, see current year finding 2011-09 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.




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Finding 2010-06 Reporting

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

U.S. Department of Justice:
 Public Safety Partnership and Community Policing Grants (COPS), CFDA No. 16.710

Condition/Context

CDBG

The City was unable to provide evidence that they submitted the QPR-Recovery Act
Management and Performance System Second Quarter Report. HCD staff noted that the report
was submitted electronically and that it was not printed prior to submission; therefore, we were
unable to audit the above report.

COPS

Two of the three ARRA Section 1512 Special Reports selected for testing contained financial
information that did not agree with and was not reconciled to the City’s general ledger.

Recommendation

The City should ensure that employees are properly trained in reporting requirements.
Additionally, the City should ensure that all required financial/performance statutory reports are
properly prepared and reviewed by supervisory personnel, and a copy is maintained on file.

Current Status

CDBG: The RAMPS reports are printed as they are submitted.

COPS: Meet with Budget & Finance Directors to coordinate, plan and implement training for
Citywide grant administrators regarding reconciliation of grant reports to the City’s general
ledger; and, reemphasis of proper review/approval of grant reports, and maintenance of
electronic and hard copies of reports w/back up financial documentation.



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Comment repeated: Also, see current year finding 2011-02 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.

Finding 2010-07 Subrecipient Monitoring

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253
 Home Investment Partnerships Program (HOME), CFDA No. 14.239
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

Condition/Context

CDBG

We performed testing for three of 14 subrecipients that received approximately $600,500 from
the City (subrecipients tested received approximately $360,000) noting the following:

    •    We noted that for one of the three subrecipients tested, that the City did not maintain
         formal monitoring records or documentation evidencing monitoring procedures were
         performed. This subrecipient received approximately $191,000.

    •    We noted that one of the three subrecipients did not respond to the City’s
         Finding/Monitoring and Concerns Letter noting planned corrective action to the findings
         discovered during the City’s annual monitoring of the subrecipient. This subrecipient
         received approximately $151,000.

    •    We noted that the City did not disclose the CFDA numbers in the executed award
         documents/agreements for either of the subrecipients tested.

HOME

We tested one of the City’s two subrecipients that received approximately $51,000 during fiscal
year 2010. We noted that the City did not maintain formal monitoring records or documentation
evidencing monitoring procedures performed for the subrecipient tested. Additionally, we noted
that the City did not disclose the CFDA number in the executed award document/agreement.




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HOPWA

We tested three of the City’s nine subrecipients. The three subrecipients tested received
approximately $6,234,000 during fiscal year 2010. We noted that the City did not disclose the
CFDA number in the executed award documents/agreements with the three subrecipients tested.
Additionally, the City provided funding to its largest subrecipient prior to entering into a fully
executed award document/agreement which was dated April 2010.

Recommendation

The City should adhere to its policies and procedures to perform annual monitoring of its
subrecipients’ compliance with the provisions of the subrecipient agreements. Additionally, the
reimbursement of expenditures for subrecipients should not be made to subrecipients not in
compliance.

Current Status

The City has an agency that has been reluctant to sign a City Agreement and the City decided to
fund the agency without the agreement in place. HCD and the City Attorney’s Office will
continue to work with the agency. Additionally, the agency has been reluctant to allow staff to
monitor and they have not provided access to the information requested during the City’s
monitoring.

Comment repeated: Also, see current year finding 2011-03 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.

2010-08 Special Tests and Provisions (Required Certifications and HUD Approvals)

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

Condition/Context

We noted that the City obligated and expended 2009/10 CDBG Entitlement funds prior to
HUD’s approval of the RROF.




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Recommendation

The City should ensure that employees are properly trained in special tests and provisions
requirements for each grant. Additionally, the City should ensure that policies and procedures are
in place to confirm that the provisions of OMB Circular A-133 and the applicable grant
agreements are adhered to and that there is proper supervision and review.

Current Status

City staff has attended HUD training and HCD depends on the expertise of the Environmental
Division staff. In September 2011, HCD lost its primary internal environmental staff person due
to budget cuts. Additionally, HCD has no funding available to send anyone else to the additional
trainings needed to ensure future compliance.

Comment repeated: Also, see current year finding 2011-10 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.

2010-09 Special Tests and Provisions (Environmental Reviews)

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

Condition/Context

The City provided unsigned (by Acting City Manager) copies of the applicable environmental
certifications. We were unable to determine whether these certifications were properly submitted
to HUD timely.

Recommendation

The City should ensure that employees are properly trained in special tests and provisions
requirements for each grant. Additionally, the City should ensure that policies and procedures are
in place to confirm that the provisions of OMB Circular A-133 and the applicable grant
agreements are adhered to and that there is proper supervision and review.




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Current Status

HCD is following its Corrective Action Plan. In January 2011, staff from the Housing and
Community Development (HCD) Division, along with an environmental staff person from the
Public Works Department attended HUD training on the environmental process and regulations.
Due to budget cuts, HCD has lost its lead environmental staff person. Additionally, HCD does
not have sufficient funding to have anyone else trained.

Finding 2010-10 Preparation of the Schedule of Expenditures of Federal Awards and State
  Financial Assistance

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 CDBG – Entitlement Grants Cluster, CFDA Nos. 14.218 and 14.253

U.S. Department of Transportation:
 Highway Planning and Construction (HPC) (Federal-Aid Highway Program), CFDA No. 20.205

Condition/Context

The Schedule provides total federal and state financial assistance awards expended for each
individual federal and state program. We understand that it is the City’s policy to establish a
grant general ledger index code to capture all grant related expenditures to be reported in the
Schedule. We noted errors related to the preparation of the Schedule in connection with
performing the fiscal year 2010 single audit. Those errors included the following:

    a. HPC (CFDA 20.205) – The City’s department administering this grant recorded
       unallowable expenditures to the established grant general ledger index code, which
       resulted in certain expenditures being included in the Schedule that were unallowable. The
       Schedule had to be revised to eliminate unallowable costs.

    b. CDBG (CFDA 14.218) – The City’s department administering this grant recorded eligible
       expenditures to the grant index code. Subsequent to incurring the expenditure and
       receiving reimbursement from HUD, the transaction was refunded to the City after year-
       end. The Schedule for fiscal 2010 was not properly adjusted for the refunded amount and
       expenditures reported in the Schedule are overstated by $118,885.




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Recommendation

The City should implement internal controls over the preparation of the Schedule to ensure that
federal and state grant amounts are properly reported, including requiring departmental grant
administrators to periodically review grant expenditures posted to grant index codes for
allowability.

Current status

CDBG

Internal Controls in place as listed in Planned Corrective Actions. The City’s Grant policy
incorporates the requirement that the department’s grant administrator periodically review grant
expenditures posted to the grant index codes for eligibility. HCD has lost its Accountant.
Although the loss will be temporary, it will create a critical issue related to fiscal compliance
until the position is filled.

HPC
Appropriate funds have been transferred to the grant. All the non-grant eligible expenditures
charged to the project are covered by the transfer. Coordination between the grant manager and
Finance/Treasury per City’s grant policy have been implemented in order to insure that only the
eligible expenditures are recorded into the grant index.

2010-11 Eligibility- HOME Program

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Home Investment Partnerships Program (HOME), CFDA No. 14.239

Condition/Context

We selected six participants out of a population of 44 approved applicants to test controls and
compliance with respect to eligibility. Of the six participants tested, we noted that three
participant’s files were incomplete. Specifically, we noted the following:

    •    One participant file examined did not contain the required approval signature from the
         HCD Housing Supervisor on the Purchase Assistance HCD Checklist, noting that the
         staff reviewed and approved the file.


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    •    One participant file examined did not contain the required Housing Program Checklist.

    •    One participant file examined did not contain the required approval signature from the
         HCD Housing Supervisor on the Housing Program Checklist and Resident Income
         Certification, noting that the staff reviewed and approved the file. Additionally, we noted
         that the rehabilitation spanned multiple years and the file did not contain recertification of
         the eligible participants income levels, the participants construction file did not contain
         the necessary interim inspection forms and more than 120 days elapsed from the
         completion of the resident income certification form and the execution of the
         participation agreement.

Recommendation

The City’s staff should adhere to its policies and procedures which includes a checklist that the
preparer and reviewer must sign off on and ensures that required documentation is maintained in
each participant file.

Current Status

HCD has reviewed its internal controls and made the necessary changes to address all current
files.

2010-12 Period of Availability – HOPWA

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

Condition/Context

We noted that one of the 25 transactions tested was an expenditure in the amount of $239,500
that was obligated, incurred and expended outside of the period of availability for current
HOPWA entitlements and was liquidated with current entitlement funds.




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Recommendation

The City’s staff should adhere to the provisions of the federal regulations and ensure that it
adheres to its policy of utilizing HOPWA funding for approved projects during the period of
availability and amending the approved plan for changes.

Current Status

HCD ensures that funds are spent in accordance with Federal and State regulations. No change
was necessary.

2010-13 Special Tests and Provisions (Maintenance of Structures)

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

Condition/Context

We noted that the City provides funding for three (3) structures that provide project-based rental
assistance to owners of existing structures, where the owner agreed to lease the subsidized units
to eligible participants. The City is required to “verify use” of the structures.

We tested each of the three structures. We noted that for two of the three structures, City
personnel indicated that the properties are vacant and are not being properly utilized
continuously in accordance with the provisions of the HOPWA Project-Based Housing Program
Agreements between the City and the owner of the structures.

Additionally, we obtained the June 15, 2010 City Commission Meeting Minutes pertaining
to PH-02 noting that the properties rehabilitated with HOPWA funds have been vacant since
2008-2009.

Recommendation

The City should ensure that staff is properly trained with respect to the grant compliance
requirements. Additionally, policies and procedures should be implemented to ensure
Maintenance of Structures is properly monitored. Evidence of monitoring should be reviewed
and approved by supervisory personnel.


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Current Status

The City Commission approved funding for the Housing Authority to ensure there were funds to
support their Project Based Units. HCD has been helping the agency find applicants to occupy
the HOPWA purchased units. To date all the units have not been occupied.

2010-14 Special Tests and Provisions (Housing Quality Standards)

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Housing Opportunities for Persons With AIDS (HOPWA), CFDA No. 14.241

Condition/Context

We noted that the City was unable to provide evidence that all HOPWA housing projects that
involve acquisition, rehabilitation, conversion, lease, repair of facilities, new construction,
project or tenant based rental assistance housing quality inspections were performed in
accordance with the provisions of the regulations.

Recommendation

The City should ensure that staff is properly trained with respect to the grant compliance
requirements. Additionally, policies and procedures should be implemented to ensure Housing
Quality Standards are properly monitored. Evidence of monitoring should be reviewed and
approved by supervisory personnel.

Current Status

HQS Inspections have been completed.

Comment repeated: Also, see current year Finding 2011-04 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.




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2010-15 Allowable Activities/Costs Indirect Expenditures – COPS

Federal Program Information

U.S. Department of Justice:
 Public Safety Partnership and Community Policing Grants (COPS), CFDA No. 16.710

Condition/Context

The City hired 12 sworn officers during fiscal year 2010. We recomputed from the City’s detail
total salaries and fringe benefits (medicare, health insurance, worker’s compensation insurance,
and pension) noting that the total did not agree with the amount reported in the general ledger
by $15,765. The Final Funding Memorandum was provided to us on April 7, 2011. Upon inquiry
if the Final Funding Memorandum was revised, the City stated that there were no revisions
made. On May 16, 2011 after fieldwork was completed, the City provided the auditors a revised
Final Funding Memorandum.

Recommendation

The City should implement procedures to ensure that amounts charged to the grant index codes
are in accordance with the applicable provisions of the grant agreements.

Current Status

08/19/2010 – Grants Compliance Manager created the Grant/ Project Reimbursement/Advance/
Final Form to aid grant administrators in reconciling Grant Reports to FAMIS 09/2010 – The
City’s PSGM began testing the form (with full implementation citywide planned for a later date
TBD). 03/2011 – With the full implementation of Telestaff, disallowed standby pay and OT no
longer posts to the COPS grant index code. 10/11/11 – PSGM re-confirmed permissibility of
shift pay with Asst. Director of USDOJ Grant Monitoring Div in writing. 10/13/11 – PSGM
completed yr-end reconciliation of allowable salaries/benefits per each grant position’s Date of
Hire in accordance with the grant’s Financial Clearance Memo and prepared ETV to move
excess expenditures out of grant index code. 11/4/11 – PSGM began working with Finance to
correctly calculate and record workers compensation expenses for FY 10/11 & project expenses
for FY 11/12 grant year 12/1/11 – PSGM worked with Finance to correctly calculate and record
retirement for FY 10/11 PSGM will work with Grants Compliance Manager and Grants
Accountant in Finance to develop and fully implement a revised Grant Reporting Reconciliation
Form. PSGM will continue to separately track permissibility of grant expenditures for each grant



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funded position based on date of hire and each position’s allowable expenses by calendar year.
PSGM will continue to work with Finance to determine an appropriate method for reconciling
year end accruals (salaries, w/comp, retirement) that have historically been posted/ reversed by
Finance in Oct – Nov, with the COPS grant reports which PSGM must submit by 10/10 & 10/31.

2010-16 Equipment – COPS

Federal Program Information

U.S. Department of Justice:
 Public Safety Partnership and Community Policing Grants (COPS), CFDA No. 16.710

Condition/Context

We selected five items of equipment out a population of 44 for physical observation. We were
unable to inspect two of the five items of equipment purchased with grant awards. Additionally,
we noted that the City has not performed a physical inventory of equipment purchased with grant
awards in the past two years.

Recommendation

The City’s staff should adopt and incorporate policies and procedures for performing physical
inventories of equipment purchased with grant funding in accordance with OMB Circular A-133.

Current Status

10/2011 – The PD has purchased and installed Fishbowl, a dedicated application for
supply/inventory management, replacing the process formally managed through the
I-Leads/Intergraph System. 11/2011-12/2011 – PD Staff has entered 25% of all supplies/issued
items into the Fishbowl database.

04/2012 – Full implementation of the Fishbowl Inventory system is planned. 07/2012 – Annual
inventory of PD’s grant funded equipment, by PSGM, is planned. 09/2012 – Update of the SOP
regarding inventory and supply management is planned.




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2010-17 Reporting

State Project Information

Florida Department of State and Secretary of State:
  Acquisition, Restoration of Historic Properties – New River Swing Span Bridge, CSFA No. 45.032

Condition/Context

The amounts reflected in the Final Progress and Expenditure report did not agree with and were
not reconciled to the City’s general ledger.

Recommendation

The City should implement procedures that require all grant reports be reconciled to the general
ledger and are reviewed and approved by the appropriate supervisory personnel prior to being
filed with the state agency.

Current Status

Policy implemented May 2011.

2010-18 Eligibility- SHIP

State Project Information

Florida Housing Finance Corporation (the Corporation):
  State Housing Initiatives Partnership (SHIP) Program, CSFA No. 52.901

Condition/Context

We selected a sample of eight participants out of a population of 44 approved applicants to test
controls and compliance with respect to eligibility. Of the eight participants tested, we noted that
two participant files were incomplete. Specifically, we noted the following:

    •    One participant file examined did not contain the required Housing Program Checklist.




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    •    One participant file examined did not contain the required approval signature from HCD
         Housing Supervisor on the Purchase Assistance HCD Checklist, noting that the staff
         reviewed and approved the file.

Recommendation

The City’s staff should adhere to its policies and procedures for determining and documenting
participant eligibility.

Current Status

HCD is following its Corrective Action Plan and we have updated our Administrative Plan and
Procedures to address this issue.

2010-19 Statutory Reporting and Period of Availability- SHIP

State Project Information

Florida Housing Finance Corporation (the Corporation):
  State Housing Initiatives Partnership (SHIP) Program, CSFA No. 52.901

Condition/Context

The financial information included in the Annual Report submitted to SHIP by the City was not
reconciled with and did not agree with the general ledger.

Additionally, we were unable to determine that funds were expended within the required
timeframes as the expenditures were not tracked in the general ledger by entitlement year for the
entire period covered by the SHIP Annual Report. The SHIP funds are required to be expended
within a period of two years of the applicable entitlement grant year which corresponds with the
State’s fiscal year. Accordingly, the 2007/2008 entitlement and related program income was
required to be expended no later than June 30, 2010; and the entitlement amount and the related
program income for fiscal years 2008/2009 and 2009/2010 will expire in June of 2011 and 2012,
respectively.




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Recommendation

The City should implement procedures that require that the statutory reports be reconciled to the
general ledger and reviewed and approved by the appropriate supervisory personnel prior to
being filed with the State. The City should also establish a separate general ledger account or
index code for each entitlement year with unspent funds in order to separately track expenditures
as well as interest and program income.

Current Status

HCD has worked with Florida Housing Coalition to reassign expenditures within eligible
program years. This process has been accepted by the State of Florida. HCD has reached out to
the Finance Department for guidance on how to make those reassignments in Fiscal Years that
have been closed by the City.

Comment repeated: Also, see current year Finding 2011-07 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.

2010-20 SHIP-Special Tests and Provisions (Marketing and Outreach)

State Project Information

Florida Housing Finance Corporation (the Corporation):
  State Housing Initiatives Partnership (SHIP) Program, CSFA No. 52.901

Condition/Context

The City’s 2009/2010 SHIP program advertisement did not contain the ending date of
application period and the contact person’s name and phone number.

Recommendation

The City should update its policies for the established SHIP rules with respect to advertising the
SHIP funds.

Current Status

HCD continues to follow its Corrective Action Plan and ensures that funding is advertised in
accordance with program requirements.


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B. Finding

2009-01 Vendor Screening for Suspension and Debarment

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Community Development Block Grant (CDBG), CFDA No. 14.218

U.S. Department of Homeland Security:
 Homeland Security Grant Program (HS), CFDA No. 97.067

Condition/Context

CDBG

We selected two vendors out of eight in the population (with expenditures over $25,000 during
fiscal year 2009) to test and we noted that there was no evidence indicating that one of the
vendors tested had been determined by the City to be eligible to receive federal funds. We
performed the EPLS screening noting that the vendor was not listed in the EPLS systems as
suspended or debarred.

HS

We selected the largest of two vendors in the population (with expenditures over $25,000 during
fiscal year 2009) to test and we noted that there was no evidence indicating that the vendor was
determined by the City to be eligible to receive federal funds. We performed the EPLS screening
noting that the vendor was not listed in the EPLS systems as suspended or debarred.

Recommendation

For all new contracts funded with federal grants, the City should develop a consistent procedure
to require that the preparer of the bid tabulation sheet (or other responsible party) perform
verification of the recommended vendor or subrecipient by checking the EPLS (and documenting
when the verification was performed and by whom), collecting a certification from the entity, or
adding a clause or condition to the contract with that entity. The City should ensure, for all
existing contracts that are funded with federal grant programs, that the verification of proper
vendor/subrecipient exclusion from the EPLS system is performed and the documentation of the
EPLS verification check should be maintained by the City.



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Current Status

As of March 2009, staff implemented the above procedure for all grant related bids. In March of
2010, the Procurement Manual was updated to reflect the new procedures.

Comment repeated: Also, see current year Finding 2011-01 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.

Finding 2009-02 CDBG Program Income

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Community Development Block Grant (CDBG), CFDA No. 14.218

Condition/Context

The City’s records indicate that it received approximately $235,000 in program income during
fiscal 2009. Program income amounts primarily represent loan repayments and rental income.
The City utilizes Microsoft Excel to maintain a listing to track participants that would potentially
be the source of program income. We were unable to determine whether program income was
complete and that all amounts due the City were properly received, accounted for and reported in
the general ledger and to the grantor agency.

We noted that program income for CDBG is reported in HUD’s Integrated Disbursement &
Information System (IDIS) by the City. The City utilizes a Microsoft Excel spreadsheet as its
mechanism to track how program income is spent. There was no evidence that the spreadsheet
was reviewed and approved by supervisory personnel.

Recommendation

The City should record all deferred receivables on the City’s accounts receivable system.
Participant payments should be posted by Treasury staff and deferred loans that are added or
forgiven should be properly accounted for by Finance staff upon receipt of evidence that all
compliance requirements have been met. We recommend that Finance Department personnel
become the process owners for managing the deferred loans receivable to ensure a proper
segregation of duties. For other sources of program income, the City should implement
procedures to ensure that all sources of program income have been properly captured, accounted



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for, and used or returned in accordance with grant requirements. Additionally, management
should ensure that proper supervisory and review monitoring controls are in place to ensure
completeness of program income.

The City should ensure that supervisory review and approval of the records utilized to
substantiate the proper use of program income (e.g., a summary of the period cash draw downs
which demonstrates how much was grant entitlement and program income) is evidenced.

Current Status

The City has implemented a procedure effective October 1, 2010 to ensure all deferred
receivables are recorded and tracked on a quarterly basis. The report is reviewed and approved
by supervisory personnel and submitted to the compliance and monitoring section for follow-up
as needed.

Comment repeated: Also, see current year Finding 2011-09 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.

Finding 2009-03 Subrecipient Monitoring – CDBG and HOME

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Community Development Block Grant (CDBG), CFDA No. 14.218
 Home Investment Partnerships Program (HOME), CFDA No. 14.239

Condition/Context

CDBG

We noted that for one of the three subrecipients tested, the City had not obtained a recent A-133
audit report (or evidence that the entity was not subject to A-133), as required. Additionally, we
noted that for all three subrecipients tested, the City did not maintain formal monitoring records
or documentation evidencing monitoring procedures performed. These subrecipients received
approximately $588,000 during fiscal year 2009 from the City.




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HOME

We tested two of the City’s three subrecipients that received approximately $186,000 during
fiscal year 2009. We noted that the City did not maintain formal monitoring records or
documentation evidencing monitoring procedures performed for the subrecipients tested.

Recommendation

The City should adhere to its policies and procedures to perform annual monitoring of its
subrecipients’ compliance with the provisions of the subrecipient agreements. Additionally, the
reimbursement of expenditures for subrecipients should not be made for subrecipients not in
compliance (i.e., have not submitted audit reports).

Current Status

CDBG

Financial Statements are requested during the monitoring of each sub-recipient to determine if an
A 133 Audit Report is required. The monitoring schedule has changed to begin earlier in the
year. HCD has also updated its Audit Management System Administrative Policy.

HOME

The monitoring schedule has changed to begin earlier in the year. HCD has updated our Audit
Management System Administrative Policy.

Comment repeated: Also, see current year Finding 2011-03 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.




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                              City of Fort Lauderdale, Florida

                 Summary Schedule of Prior Audit Findings (continued)




2009-04 Statutory Reporting – HOME Program

Federal Program Information

U.S. Department of Housing and Urban Development (HUD):
 Home Investment Partnerships Program (HOME), CFDA No. 14.239

Condition/Context

The City completed its annual Section 3 Summary Report (HUD 60002) with incomplete and
incorrect data. The report is a summary of the City’s efforts to comply with statutory and
regulatory requirements of Section 3 and key items include the dollar amount of the award,
program code, the total number of new hires that are Section 3 residents, and information about
contracts awarded (construction and non-construction). The report provided by the City staff did
not disclose summary information for the City. The amount disclosed as the total award amount
was $5,000 which was not accurate.

Recommendation

The City should ensure that employees are properly trained in reporting requirements.
Additionally, the City should ensure that all required statutory reports are properly prepared and
reviewed by supervisory personnel.

Current Status

HCD staff attended two (2) Section 3 training workshops in FY 09-10 and FY 10-11.

Comment repeated: Also, see current year finding 2011-02 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.




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                             City of Fort Lauderdale, Florida

                 Summary Schedule of Prior Audit Findings (continued)




Finding 2009-06 SHIP – Statutory Reporting and Period of Availability

State Project Information

Florida Housing Finance Corporation (the Corporation):
  State Housing Initiatives Partnership (SHIP) Program, CSFA No. 52.901

Condition/Context

The financial information included in the Annual Report submitted to SHIP by the City was not
reconciled and did not agree with the general ledger.

Additionally, we were unable to determine that funds were expended within the required
timeframes as the expenditures were not tracked in the general ledger by entitlement year for the
entire period covered by the SHIP Annual Report. The SHIP funds are required to be expended
within a period of two years of the applicable entitlement grant year which corresponds with the
State’s fiscal year. Accordingly, the 2006/2007 entitlement and related program income was
required to be expended no later than June 30, 2009; and the entitlement amount and the related
program income for fiscal years 2007/2008 and 2008/2009 will expire in June of 2010 and 2011,
respectively.

Recommendation

The City should implement procedures that require that the statutory reports be reconciled to the
general ledger and reviewed and approved by the appropriate supervisory personnel prior to
being filed with the State. The City should also establish a separate general ledger account or
index code for each entitlement year with unspent funds in order to separately track expenditures
as well as interest and program income.

Current Status

HCD has worked with Florida Housing Coalition to reassign expenditures within eligible
program years. Annual Reports have been updated, submitted and accepted by the State of
Florida.

Comment repeated: Also, see current year Finding 2011-07 in the accompanying Schedule of
Findings and Questioned Costs for the year ended September 30, 2011.




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                 Management Letter and State Reporting Requirements

To the Honorable Mayor, Members of the City Commission, and
 City Manager
City of Fort Lauderdale, Florida

We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Fort Lauderdale, Florida (the City) as of and
for the year ended September 30, 2011, which collectively comprise the City’s basic financial
statements and have issued our report thereon dated March 12, 2012.

We conducted our audit in accordance with auditing standards generally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. We have issued our Report of
Independent Certified Public Accountants on Internal Control over Financial Reporting and
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards dated March 12, 2012, and our Report of
Independent Certified Public Accountants on Compliance with Requirements that Could Have a
Direct and Material Effect on Each Major Program and on Internal Control over Compliance in
Accordance with OMB Circular A-133, Section 215.97 Florida Statutes, and Chapter 10.550,
Rules of the Auditor General Disclosures dated June 4, 2012. Those reports, including significant
deficiencies and material weaknesses in internal controls, should be considered in conjunction
with this management letter.

Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550,
Rules of the Auditor General, which govern the conduct of local governmental entity audits
performed in the State of Florida. The suggestions included in this letter, which resulted from our
consideration of internal control, are submitted to assist in improving procedures and controls. In
addition, this report includes other communications required by the Rules of the Auditor General.

We have the following suggestions for improvement in accounting procedures and controls.




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A. Current Year Recommendations

Financial Statement and Single Audit

No items to report.

IT General Controls

As part of our audit of the financial statements of the City for the year ended September 30,
2011, we performed a review of the IT processes and supporting control environment. Our
review focused on whether sufficient controls are present in the following areas:

    •    Application development and maintenance is appropriately tested and approved before
         being placed into production.

    •    Access to data-files is restricted to authorized users and programs.

The review was limited to those areas which we considered necessary for audit purposes and was
not intended to be a comprehensive examination of the Information Systems function. The
following suggestions, which resulted from our IT process review, are submitted to assist in
improving procedures and controls.

#1 – Formal Risk Assessment Process

Observation

The City did not perform a formal risk assessment process that takes into account business risks
and IT risks during the audit period. An update to the disaster recovery plan was made in
June 2011; however, due to budget cuts, a security assessment was not performed for fiscal 2011.
A formal risk assessment process typically includes the following areas:

    1. People:

         •     Failure of staff to comply with the procedures whether with the intention to commit
               fraud, oversight or negligence

         •     Non-familiarity of staff with the set guidelines and procedures

         •     Segregation on access to the computer system not observed or compromising on the
               staff password




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    2. Process:

         •     Process failure

         •     Inadequate controls in the operational processes

    3. System:

         •     Failure of application system to meet user requirements

         •     Absence of in-built control measures in the application system

    4. External Party/Event:

         •     Imposition/changes of policies by government regulatory bodies

         •     Unsatisfactory/Non-performance by out-sourced service providers

         •     Fraud by syndicates or customers

         •     Legal action taken by customers or fraud committed by internal

         •     Physical and environmental concerns such as disasters

Risk/Implication

A formal risk assessment process is the organization’s identification and analysis of relevant
risks to the achievement of its objectives, and forms a basis for management to determine how
the risks should be managed.

Recommendation

The City should formalize current processes to address risk. A risk assessment should be
performed at least annually, and include representation from key business areas. When assessing
risk, the City should focus on probable events. When evaluating the risks, probability, the
potential for incurring a loss and frequency of occurrence should be considered. Management
should document action plans as a result of such internal assessments.

Management Response

ITS Management reviews the existing COOP plan annually and updates have been made as required.

A security risk assessment is in the process of being bid for a third party to test our configuration
and vulnerability to attacks. This is expected to be completed after award of the contract and
signing of contract with vendor.


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#2 – Standard Change Management Process

Observation

We noted that the documentation around the authorization, testing, and approval to migrate the
change to the production environment was not consistently and formally documented across the
financially significant applications (BuySpeed, Cayenta, Famis, and Cyborg). Cyborg change
control guidelines were noted as not including requirements to address the authorization, testing,
and approval of changes.

Risk/Implication

Unauthorized or unapproved changes can be promoted to the production environment. Changes
promoted to the production environment are not functioning properly or according to the user
requirements.

Recommendation

A standard change management process should be adopted across all the financially significant
applications. Evidence indicating the authorization, testing, and approval to migrate the change
to the production environment should be formally documented.

Management Response

There are currently two separate forms that are used to track changes. A new, single format form
will be created to be used across all of the financially significant applications, which is expected
to be implemented by March 31, 2012.

#3 – Change Management -Segregation of Duties

Observation

A Tech Strategist (developer for Cyborg application) is responsible for approving, developing,
testing, and moving changes to the production environment. A report (named ISWAS) is being
used to monitor the changes made to the Cyborg application; however, this report does not
capture all types of changes made to the application (both data, configuration and system).

Also, a Senior Technology Strategist is responsible for approving and testing changes for the
BuySpeed application, and also has access to move changes to the production environment.




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Risk/Implication

Unauthorized or unapproved changes can be promoted to the production environment. Any
potential changes can be undetected.

Recommendation

Segregation of duties should be in place between the personnel who program the development,
move changes in and out of the production environment, and perform monitoring controls around
the changes. If it is determined that these responsibilities cannot be segregated, a monitoring
control should be put in place that would detect unauthorized system changes. A log showing all
changes to application functionality or data by developers should be produced and reviewed on a
routine basis by a member of IT Management (having no development responsibilities or access
to implement changes into production).

Management Response

Segregation of duties has been put in place as the Tech Strategist’s manager moves changes to
production. Segregation of duties will be implemented so that the Senior Technology Strategist’s
manager also moves changes to production. A log of these changes will be maintained and sent
to the ITS Director for periodic review, which is expected to be implemented by March 31, 2012.

#4 – Change Management -Access to Promote Changes

Observation

A significant number of user accounts (37) were noted with “*****” profile, which allows them
to promote Cyborg changes to the production environment.

Risk/Implication

Key financial data/programs are intentionally or unintentionally modified. Unauthorized users
are granted key privileged rights.




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Recommendation

Access to promote changes to the production environment should be limited to only authorized
IT personnel who do not have development responsibility. User administration for the Cyborg
application should be placed under the responsibility of IT personnel. Access to user
administration functions for individuals outside of IT should be removed. If it is determined that
this access cannot be removed, a log showing activities performed by these individuals should be
produced and reviewed on a routine basis by a member of management.

Management Response

ITS concurs with this recommendation and will remove those users that no longer require this
level of access, with an expected completion date of March 31, 2012.

#5 – Logical Access-Password Settings

Observation

The City of Fort Lauderdale does not currently have an entity-wide password policy to enforce
settings at the application level. Correspondingly, it was noted that password settings at the
application level for the BuySpeed, Cayenta, Cyborg and FAMIS have password settings which
exceed recommended thresholds.

Risk/Implication

Inadequate password settings may result in unauthorized access to the City’s systems,
applications, and information. The protection provided by passwords diminishes over time and
thus appropriate password control features need to be implemented to mitigate this risk.

Recommendation

A standard password policy should be adopted to mitigate risks associated with a breach.
Password settings for key financial systems should be configured in accordance with the policy
requirements. Based on the standard practice some of the recommended settings are as follows:

    •    Passwords should be forced to expire every 45 – 90 days at which time the user must
         select a new password

    •    Passwords should be at least 6 characters long




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    •    Password histories should be retained to prevent employees from reusing old passwords

    •    Password complexity should be enabled when possible

Management Response

ITS has put a standard password policy in place in each of the audited applications. BuySpeed,
Cayenta, Cyborg and FAMIS have been configured to match this policy as much as their
functionality allows.

#6 – Logical Access-Periodic User Review

Observation

The City does not have any formalized process for the periodic user access review around the
active users for the financially significant applications: BuySpeed, Cayenta, Cognos, Cyborg,
and FAMIS.

Risk/Implication

As individuals transfer within the City, their need for access to information in the system may
change. The lack of a periodic review that responds to these changes in the employment status
can result in excess access or conflicting privileges granted to users.

Recommendation

We recommend that active user access privileges be reviewed and challenged periodically by
user department managers for all users to keep current with responsibilities and employment
status of their employees. Users with access that is not appropriate or no longer necessary and
should be communicated to the security administrators. Any apparent conflicts should be
investigated and acted upon, and evidence of management’s review should be retained.

Management Response

ITS has a procedure in place to review user access for employees who terminate and/or transfer.
This process is performed every two weeks. ITS will create an additional process to send user
lists out to department managers to verify user access requirements, which is expected to be
implemented by April 30, 2012.




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#7 – Logical Access-Employee Terminations

Observation

There is no formal process in place to notify helpdesk and system administrators about the
termination of an employee on the same day of the termination. The current process in place
provides notification to IT helpdesk or administrators every pay cycle.

Risk/Implication

Terminated employees could retain access to the applications and other applicable logical access
layers. Key financial data/programs can be intentionally or unintentionally modified.

Recommendation

A formalized policy and procedure should be documented and communicated to notify helpdesk
and other system administrators on the same day of an employee’s termination.

Management Response

ITS has a procedure in place to review user access for employees who terminate and/or transfer.
This process is performed every two weeks. ITS would need to be notified by Human Resources
of terminations that occur prior to the bi-weekly current process.

#8 – Logical Access – Addition or Modification of User Access

Observation

There is no formalized/documented policy or procedure in place for addition or modification of
user access around BuySpeed, Cayenta, and Famis applications. Access request forms or emails
specifying the access requests are not retained for documentation purposes.

Risk/Implication

Unauthorized access can be granted to the system. Key financial data could be intentionally or
unintentionally modified.




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Recommendation

A standard policy should be put in place specifying the documentation requirements for access
requests and access authorizations. An access request form or ticket specifying the access request
should be authorized by the appropriate personnel and retained for documentation purposes.

Management Response

ITS will create a repository for retaining access request forms or ticket requests and emails
authorizing changes, with an expected completion date of April 30, 2012.

#9 – Logical Access- Data Center Access

Observation

Excessive numbers of users are granted access to the data center.

Risk/Implication

Allowing excessive access to the data center increases the risk of equipment damage, either
maliciously or accidentally, or unauthorized system access.

Recommendation

Management should restrict physical access to the data center to key IT personnel responsible for
the maintenance of application and supporting infrastructure.

Management Response

In February 2012, ITS management has reviewed the list and confirmed that it does not contain
any users who do not need the access level.

#10 – Change Requests

Observation

A significant number of user accounts (five out of nine) were noted with supervisor access to the
Cayenta application, where the employee’s job descriptions did not support the level of access
granted.




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Risk/Implication

Key financial data/programs are intentionally or unintentionally modified. Unauthorized users
are granted key privileged rights.

Recommendation

User administration to the key financial applications should be limited to authorized IT personnel
only, with system administration responsibilities.

Management Response

This exception was remediated in February 2012 as the five supervisor users in question were
deleted from the supervisory role.

#11 – Recoverability of Data Testing

Observation

There is no formal process in place for periodically testing recoverability of data. Currently, the
tapes are restored only as needed.

Risk/Implication

Without periodically testing the recoverability of the key financial data, the risk increases that
should a system failure occur, key production data and functionality would be unrecoverable.

Recommendation

Backup and recovery testing should be performed on a semi-annual or annual basis around the
key financial systems.

Management Response

ITS concurs with this finding and will modify policy 02.12.001 to include user validation of
semi-annual system restorations by June 30, 2012.




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B. Prior Year Recommendations
The following is a summary of prior year recommendations that were not implemented or were
only partially implemented by the City during the current year. All prior year recommendations
that have been fully implemented were not repeated in this section.

          Observation                   Recommendation                         Current Status
 Grant Administration
 The City staff managed in          In order to establish an          The Grants, Legislative Affairs &
 excess of $39 million of federal   adequate control environment,     Compliance Administrative
 and state grants in fiscal year    the City should consider          Policies & Procedures Manual
 2008. The grants management        implementing standardized         governing the management of key
 function is decentralized and      written policies and procedures   grant processes for the City was
 each City department is            governing the management of       issued by the Office of Grants,
 responsible for managing their     key grant processes (e.g.,        Legislative Affairs & Compliance
 respective grants. There are a     similar to the procedures for     (Grants Office), with guidance
 number of processes involved       processing of cash                and input from the City’s Finance
 in managing the City’s grants      disbursements throughout the      Department on April 18, 2011.
 (i.e., cash management, vendor     City, which is based on a         The electronic Grants
 suspension and debarment,          standardized process for all      Management Tracking System
 Davis-Bacon Act compliance,        City departments).                (GMTS) has been created as a
 eligibility determination,         Standardizing grant               centralized function to manage
 equipment and real property        administration procedures         and track all grants administered
 management, matching, level of     adequately would significantly    by all City departments. The
 effort and earmarking, program     strengthen internal controls      Grants, Legislative Affairs &
 income, reporting and              operating efficiency and would    Compliance Administrative
 subrecipient monitoring, etc.).    reduce the risk of instances of   Policies & Procedures Manual
 We noted that each department      non-compliance.                   also contains step-by-step
 has established its own                                              instructions for GMTS, with
                                    Additionally, the City should
 individual policies and                                              applications to archive/retain all
                                    consider providing ongoing
 procedures for managing these                                        City grant information and
                                    training to each departmental
 processes and as such policies                                       documents in one centralized
                                    grant administrator to ensure
 and procedures are not                                               location, to confirm compliance
                                    compliance with the established
 standardized amongst the                                             of all grantor requirements, to
                                    standardized policies and
 departments within the City.                                         track expenditures through
                                    procedures for managing key
                                                                      FAMIS, and provide a one-stop
 Additionally, the City is no       grant processes.
                                                                      shop for grant administration
 longer a low-risk auditee under
                                                                      reference and training materials.
 the provisions of the federal
                                                                      The Grants Office centrally
 single audit due to the number
                                                                      monitors grant administration in
 and character of findings that
                                                                      GMTS and provides City
 have been reported by grantor
                                                                      department heads with status
 agencies and in the City’s
                                                                      reports on grants to be entered in
 single audit.
                                                                      GMTS as well as guidance on
                                                                      existing grants in GMTS



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          Observation   Recommendation          Current Status
 Grant Administration                    applicable Florida Statutes,
 (continued)                             Single Audit Act, ARRA, etc.
                                         can be found in GMTS, where
                                         all grant administrators and
                                         their respective directors have
                                         access. GMTS also contains a
                                         centralized ARRA reporting
                                         interface through which all
                                         departmental ARRA quarterly
                                         reporting is submitted through
                                         to the Federal Government
                                         website. Additionally, the City
                                         will continue to emulate best
                                         practice models for governing
                                         the management of key grant
                                         processes.

                                         The Grants Office provides all
                                         departmental grant
                                         administrators with on-going
                                         training (classroom and
                                         individual), technical
                                         assistance, on-going guidance,
                                         and resource materials on grant
                                         administration and how to most
                                         effectively utilize GMTS.
                                         Training materials and copies
                                         of guidelines for Federal, State,
                                         and other reporting
                                         requirements, including
                                         American Recovery and
                                         Reinvestment Act (ARRA),
                                         have been distributed to
                                         departmental grant
                                         administrators. During the
                                         Grants Office grants
                                         administration training sessions
                                         presentations were also made
                                         by both Finance and Internal
                                         Audit to demonstrate the
                                         interface between GMTS and
                                         the City’s Financial Accounting
                                         Management Information




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          Observation   Recommendation          Current Status

 Grant Administration
 (continued)
                                         System and the reinforcement
                                         of universal grants compliance
                                         through grants administration.
                                         All the aforementioned
                                         presentations and documents,
                                         plus the City’s Equal
                                         Employment Opportunity Plan,
                                         Davis-Bacon Act, Buy America
                                         Rule, Federal Circulars A-87,
                                         A-102, A-133, A-47, applicable
                                         Florida Statutes, Single Audit
                                         Act, ARRA, etc. can be found
                                         in GMTS, where all grant
                                         administrators and their
                                         respective directors have
                                         access. GMTS also contains a
                                         centralized ARRA reporting
                                         interface through which all
                                         departmental ARRA quarterly
                                         reporting is submitted through
                                         to the Federal Government
                                         website. The City has
                                         developed a draft of
                                         standardized grants
                                         management and administration
                                         policies and procedures.
                                         Additionally, the City will
                                         continue to emulate best
                                         practice models for governing
                                         the management of key grant
                                         processes.




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Other Required Communications

    1. In connection with our audit, we were not made aware of reportable violations of
       provisions of contracts or grant agreements, fraud, illegal acts, or abuse, or control
       deficiencies that are not significant deficiencies other than the internal control
       recommendations included above.

    2. In connection with our audit, we were not made aware of noncompliance with
       Section 218.415, Florida Statutes, regarding the investment of public funds.

    3. As part of our audit procedures, we have applied financial condition assessment
       procedures pursuant to Rule 10.556(7), Rules of the Auditor General. It is management’s
       responsibility to monitor the County’s financial condition, and our financial condition
       assessment was based in part on representations made by management and the review of
       the financial information provided by same.

    4. During the course of our audit of the City, nothing came to our attention that would cause
       us to believe that the City was in a state of financial emergency, as defined by Section
       218.503(1), Florida Statutes.

    5. The annual financial report filed by the City with the Florida Department of Financial
       Services pursuant to Section 218.32(1)(a), Florida Statutes, is substantially in agreement
       with the audited financial statements as of September 30, 2011, with the exception of the
       Fort Lauderdale Housing Authority. The Housing Authority does not meet the
       Governmental Accounting Standards Board (GASB) criteria for inclusion in the
       Comprehensive Annual Financial Report (CAFR), however, it is included in the financial
       report filed by the City with the Florida Department of Financial Services as a dependent
       special district.

    6. The City was incorporated in 1911 and was reorganized in 1957 under Chapter
       57-1322, Laws of Florida, Special Acts 1957. The City is governed by an elected five-
       member commission composed of a Mayor and four District Commissioners. The City
       has three component units, the Fort Lauderdale Community Redevelopment Agency
       (CRA) that was created by Resolution 89-90, the Sunrise Key Safe Neighborhood
       Improvement District (SK) which was created by Ordinance 92-12, and the Lauderdale
       Isles Water Control District (LI) which was duly created in accordance with Chapter
       61-1969, Laws of Florida, as amended by the Broward County Board of County
       Commissioners by resolution adopted November 17, 1970, whereas the boundaries of the
       District have been annexed into the City of Fort Lauderdale by Chapter 2001-322 Laws
       of Florida. A five-member board appointed by the City Commission (currently composed




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         of the City Commission, itself) governs the CRA. A seven-member board appointed by
         the City Commission governs the SK, and the City is financially accountable for
         theDistrict. A three-member board, which consists of a member of the City Commission
         and two elected members, governs LI, and the City is considered financially accountable
         for the LI since the City Commission approves the budget and assessments submitted by
         LI.

This report is intended solely for the information and use of the Honorable Mayor, members of
the City Commission, the City Manager, management, the audit advisory board, and the Auditor
General, State of Florida and is not intended to be, and should not be, used by anyone other than
these specified parties.




March 12, 2012
                                                                 




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