Lake County Water Authority 2022-2023 Audit and Financial Statement

Description

March 29, 2023 To the Governing Board Lake County Water Authority Tavares, Florida We have audited the financial statements of the Lake County Water Authority (the “Authority”) as of and for the year ended September 30, 2022, and have issued our report thereon, dated March 29, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter dated July 9, 2020. Professional standards also require that we communicate to you the following information related to our audit. SIGNIFICANT AUDIT FINDINGS Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Authority are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2022. We noted no transactions entered into by the Authority during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The significant estimates affecting the Authority’s financial statements include the following accounts: Compensated Absences, Net Pension Liability, and Other Postemployment Benefits. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The following disclosures are considered significant: Note 2 – Cash and Cash Equivalents; Note 3 – Capital Assets; Note 4 – Long-Term Debt; Note 7 – Florida Retirement System Pension Plan; Note 8 – Other Post-Employment Benefits. The financial statement disclosures are neutral, consistent, and clear.