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Section 2 - 5: Bond Requirements

Section 2 - 4: The Annual Financial Audit Report

The Annual Financial Audit Report:

Covers the results of an annual financial audit
Examines financial statements in order to assess whether they are fairly presented in conformity with generally accepted accounting principles
Examines whether operations are properly conducted in accordance with legal and regulatory requirements
Must be filed with the Auditor General and the Department of Financial Services

Be careful not to confuse the Annual Financial Audit Report with the Annual Financial Report (see Section 2 - 3: The Annual Financial Report). These are two separate reports with two different filing requirements.

Special Districts That Must Provide For An Annual Financial Audit

As applicable, all special districts must comply with the Annual Financial Audit Report requirement.

Counties and municipalities must also comply with this requirement. As they prepare their financial audit, they may need financial information from special districts located solely within their boundaries. Therefore, special districts must cooperate with any such request and provide the financial information as requested by the county and / or municipality.

All special districts with revenues or combined expenditures and expenses exceeding $100,000
All special districts whose revenues or combined expenditures and expenses falling between $50,000 and $100,000 and have not had a financial audit for the previous two fiscal years
All Housing Authorities in accordance with federal audit requirements
In addition:
- Anytime or at the direction of the Joint Legislative Auditing Committee, the Auditor General may perform audits of any governmental entity in Florida, including special districts
- The Joint Legislative Auditing Committee may investigate any matter within the scope of an audit conducted by the Auditor General, and use its powers of subpoena

Special Procedures For Dependent Special Districts That Are Component Units of a County or Municipality

The audit for dependent special districts that are component units of a county or municipality may be included in the audit of that county or municipality
- "Component Unit" is defined in Summary of Statement No. 14 - The Financial Reporting Entity, Issued June 1991
- Questions concerning whether a special district is a component unit must be directed to the special district's auditor or the appropriate municipality or county.
The audit report must clearly state that the special district is a component unit and the special district must be included within the financial statements of the county or municipality.

Procedures to Follow When An Audit is Required

Establish an auditor selection committee:
- Define auditor selection procedures for the special district (for non-mandatory guidance see Auditor Selection Guidelines), or use the procedures outlined in Section 218.391, Florida Statutes - Auditor selection procedures
- The auditor must be an independent certified public accountant, who is licensed pursuant to Chapter 473, Florida Statutes - Public Accountancy
- The auditor must prepare the Annual Financial Audit Report in accordance with the Rules of the Auditor General (see Rules and Guidelines - Local Government
Arrange for a financial audit to occur shortly after the beginning of the new fiscal year (usually October 1).
Ensure that the Annual Financial Audit Report:
- Is a single document
- Contains the information listed in the Rules of the Auditor General (see Rule 10.557 - Rules and Guidelines - Local Government
- Includes a statement that indicates whether the special district met any financial emergency conditions

Deadline For Submitting the Annual Financial Audit Report

Whichever date is the earliest:
- Within 45 days after the auditor delivers the completed audit report to the special district's governing board
- Nine (9) months after the end of the special district's fiscal year (the due date would be June 30 for most special districts)

How to File the Annual Financial Audit Report

Mail one paper copy to the Auditor General (for the address, see Direct Contact - Auditor General)
Email one electronic copy to the Auditor General (for instructions, see Electronic Submission of Local Governmental Entity Audit Reports to the Auditor General)
Email one electronic copy to the Department of Financial Services at localgov@myfloridacfo.com when filing the Annual Financial Report online (see Section 2 - 3: The Annual Financial Report) or, provide a link to the special district's web site if the special district posts its Annual Financial Audit Report on its web site.
Give one copy to each member of the special district's governing board

The Auditor General's Review

The Auditor General reviews all audit reports submitted by special districts to identify:

Financial Trends
Significant Findings
Whether the special district met one or more conditions to be in a state of financial emergency (see Section 2 - 2: General Financial Requirements - Financial Emergencies)

The Auditor General prepares a report for the Legislature that summarizes the results of audit reviews.

Failure to Comply with the Annual Financial Audit Report Requirement

See Consequences of Failure to Comply With Required Reporting for more information about what will happen when special districts do not comply with the Annual Financial Audit Report requirement.