HomeMy WebLinkAboutComprehensive Annual Financial Report 2024-2025 CRA City of Clermont, Florida
Community Redevelopment Agency
Table of Contents
Page
FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................................. 1
Management’s Discussion and Analysis ................................................................................................... 4
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ................................................................................................................... 9
Statement of Activities ....................................................................................................................... 10
Fund Financial Statements:
Balance Sheet – Governmental Fund ...................................................................................................... 11
Statement of Revenues, Expenditures and Changes in
Fund Balance – Governmental Fund ................................................................................................. 12
Notes to Financial Statements ................................................................................................................ 13
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual – General Fund .................................................................................................... 24
Budgetary Notes to Required Supplementary Information ................................................................... 25
COMPLIANCE SECTION
Independent Auditor’s Report 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 .................................................... 26
Independent Auditor’s Management Letter ........................................................................................... 28
Independent Accountant’s Report on Compliance with Local Government Investment Policies………32
Independent Accountant’s Report on Compliance with Redevelopment Trust Fund ........................... 33
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Council
City of Clermont, Florida
Community Redevelopment Agency
City of Clermont, Florida
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and the major
fund of the City of Clermont, Florida, Community Redevelopment Agency (the Agency), a component
unit of the City of Clermont, Florida, as of and for the year ended September 30, 2025, and the related
notes to the financial statements, which collectively comprise the Agency’s basic financial statements
as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the major fund of the Agency as of
September 30, 2025, and the respective changes in financial position for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the Agency and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our
audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Emphasis of Matter
Reporting Entity
As discussed in Note 1, the financial statements of the entity are intended to present the financial
position and the changes in financial position of only the Agency. They do not purport to, and do not,
present fairly the financial position of the City of Clermont, Florida, as of September 30, 2025, the
changes in its financial position for the year then ended in conformity in accordance with accounting
principles generally accepted in the United States of America. Our opinions are not modified with
respect to this matter.
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error. In preparing the financial statements, management is required to evaluate whether there
are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Agency’s internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Agency’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the budgetary comparison information as listed in the
table of contents be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 26, 2026 on our consideration of the Agency’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 solely 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 effectiveness of the Agency’s internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Agency’s internal control over financial reporting
and compliance.
Orlando, Florida
February 26, 2026
City of Clermont, Florida
Community Redevelopment Agency
Management Discussion and Analysis
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As the management of the City of Clermont, Florida, Community Redevelopment Agency (the Agency)
we offer readers of the CRA’s financial statements this narrative overview and analysis of the financial
activities of the Agency for the fiscal year ended September 30, 2025.
Financial Highlights
• The assets of the Agency exceeded its liabilities at September 30, 2025 by $1,710,720 (net
position). All of this amount is restricted for community redevelopment.
• The Agency’s total net position increased by $625,058 (or 58%).
• At September 30, 2025, the Agency’s governmental funds reported ending fund balances
of $1,710,720. Of this amount $1,710,370 is restricted for the purpose of community
redevelopment.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Agency’s basic financial
statements. The Agency’s basic financial statements are comprised of three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of
the Agency’s financial position, in a manner similar to a private-sector business. They include a
Statement of Net Position and a Statement of Activities.
The Statement of Net Position presents information on all of the Agency’s assets and liabilities and
deferred inflows/outflows of resources, with the difference reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position
of the Agency is improving or deteriorating.
The Statement of Activities presents information showing how the Agency’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements distinguish functions of the Agency that are principally
supported by taxes and intergovernmental revenues (governmental activities).
The government-wide financial statements include only the Agency itself (known as the primary
government).
City of Clermont, Florida
Community Redevelopment Agency
Management Discussion and Analysis (Continued)
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Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Agency, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The
general fund of the Agency is categorized as a governmental fund.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
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 the Agency’s near-term financing requirements.
Because 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. By
doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The Agency adopts an annual appropriated budget for the general fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 11-12 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided
in the government-wide and fund financial statements. The notes to financial statements can be found
on pages 13 – 23 of this report.
City of Clermont, Florida
Community Redevelopment Agency
Management Discussion and Analysis (Continued)
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Government-Wide Financial Analysis
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Agency, assets exceeded liabilities by $1,710,720 at the close of the most
recent fiscal year. All of the Agency’s net position is subject to external restrictions as to how it may be
used.
The following table reflects the condensed statement of net position for the current and prior year. For
more detail see the Statement of Net Position on page 9.
September 30,2025 2024
Current and other assets 1,730,548$ 1,103,028$
Total assets 1,730,548$ 1,103,028$
Current liabilities 19,828$ 17,366$
Total liabilities 19,828 17,366
Net position:
Restricted 1,710,720 1,085,662
Total net position 1,710,720$ 1,085,662$
City of Clermont, Florida
Community Redevelopment Agency
Management Discussion and Analysis (Continued)
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Statement of Activities
The following table reflects the condensed Statement of Activities for the current year and prior year.
For more detailed information see the Statement of Activities on page 10. Note that the government’s
total net position increased by $625,058 or 58% in fiscal year 2025. For the previous fiscal year, net
position increased by $471,051.
For the year ended September 30,2025 2024
Revenues:
Governmental activities:
General revenues:
Tax increment revenues 877,337$ 754,960$
Investment income 45,007 43,438
Miscellaneous income 56 -
Total revenue 922,400 798,398
Expenses:
General government 297,342 327,347
Total expenses 297,342 327,347
Change in net position 625,058 471,051
Net position, beginning of year 1,085,662 614,611
Net position, end of year 1,710,720$ 1,085,662$
Revenues increased by $122,433 from the previous year and total expenses decreased $30,005. The
increased revenues were primarily due to increased property values and despite a reduction in the
millage rate. The decrease in expenses during 2025 was primarily due to the lack of capital spending.
Projects planned for the year were delayed until a later date.
City of Clermont, Florida
Community Redevelopment Agency
Management Discussion and Analysis (Continued)
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Financial Analysis of the Agency’s Funds
As noted earlier, the Agency uses fund accounting to ensure and demonstrate compliance with finance-
related requirements.
Governmental Funds
The focus of the Agency’s governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Agency’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s
net resources available for spending at the end of the fiscal year.
As of September 30, 2025, the Agency’s governmental fund reported an ending fund balance of
$1,710,720 an increase of $625,058 in comparison with the prior year due to increase in funding, as
well as reduced spending as expected for projects.
General Fund Budgetary Highlights
During the year revenues were less than budgetary estimates by $600.
The original general fund appropriations increased due to a change in accounting procedures in relation
to the City’s receipt of Ad Valorem revenue within the CRA fund.
The comparison of budgeted results to actual results for the general fund is shown on page 24.
Requests for Information
This financial report is designed to provide a general overview of the Agency of Clermont’s finances for
all those with an interest in the government’s finances. Questions concerning any of the information
should be addressed to the office of the Finance Director, City of Clermont, P.O. Box 120219, Clermont,
Florida 34712.
BASIC FINANCIAL STATEMENTS
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City of Clermont, Florida
Community Redevelopment Agency
Statement of Net Position - Government-wide
The accompanying notes are an integral part of this financial statement.
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Governmental
September 30, 2025 Activities
Assets
Cash and cash equivalents 1,460,235$
Investments 269,143
Other receivables 820
Prepaid items 350
Total assets 1,730,548
Liabilities
Accounts payable and accrued expenses 19,828
Total liabilities 19,828
Net Position
Restricted for:
Community development 1,710,720
Total net position 1,710,720$
City of Clermont, Florida
Community Redevelopment Agency
Statement of Activities - Government-wide
The accompanying notes are an integral part of this financial statement.
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Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities:
General government 297,342$ -$ -$ -$ (297,342)$
Total governmental activities 297,342$ -$ -$ -$ (297,342)
877,337
44,607
Investment earnings 400
Miscellaneous revenue 56
922,400
625,058
1,085,662
1,710,720$
For the year ended September 30, 2025
General revenues
Governmental
Activities
Net (Expense)
Revenues and
Changes in Net
PositionProgram Revenues
Net position, beginning of year
Net position, end of year
Tax increment financing
Interest income
Total general revenues
Change in net position
City of Clermont, Florida
Community Redevelopment Agency
Balance Sheet – Governmental Fund
The accompanying notes are an integral part of this financial statement.
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September 30, 2025 General Fund
Assets
Cash and cash equivalents 1,460,235$
Investments 269,143
Other receivables 820
Prepaid items 350
Total assets 1,730,548$
Liabilities
Accounts payable and accrued expenses 19,828$
Total liabilities 19,828
Fund balance
Nonspendable 350
Restricted 1,710,370
Total fund balance 1,710,720
Total liabilities and fund balance 1,730,548$
City of Clermont, Florida
Community Redevelopment Agency
Statement of Revenues, Expenditures and Changes in Fund Balance –
Governmental Fund
The accompanying notes are an integral part of this financial statement.
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For the year ended September 30, 2025 General Fund
Revenues
Taxes increment financing 877,337$
Interest Income 44,607
Investment earnings 400
Miscellaneous revenue 56
Total revenues 922,400
Expenditures
Current
General government 297,342
Total expenditures 297,342
Net change in fund balance 625,058
Fund balance, beginning of year 1,085,662
Fund balance, end of year 1,710,720$
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Clermont, Florida, Community Redevelopment Agency (Agency), a public body was
established in May, 1997. Pursuant to the requirements of Chapter 163, Part III of Florida Statutes, the
City of Clermont, Florida (the City) with the consent of Lake County, created the Agency and designated
the Redevelopment Area to foster improvement activities in Clermont. The Agency uses future tax
increment revenues to fund a variety of improvement projects.
The Redevelopment Plan for the City is intended to formulate and implement a strategy for the Agency,
for the comprehensive and coordinated revitalization of the City's Redevelopment Area (CRA) which
encompasses the entire extent of the City limits. In 2015, the City expanded the CRA and passed
Ordinance No. 2015-77 and modification of the Community Redevelopment Plan was approved.
The Community Redevelopment Act (Florida Statutes, Chapter 163, Part III), as adopted by the Florida
Legislature, provides the legislative authority for local governments to use creative approaches to
redevelopment of unused or underutilized property within their communities. The Act primarily focuses
upon overcoming the burdens of deteriorated, older areas of a community by outlining a
comprehensive program to provide the legal framework and financing mechanisms for local
government's use to arrest the deterioration and encourage redevelopment of those 'blighted' areas.
The funds shall be used by the Agency to finance or refinance any community redevelopment the
Agency undertakes in the designated Area pursuant to the approved community redevelopment plan.
The Agency is a component unit of the City of Clermont, Florida (City) for financial reporting purposes;
the Agency has no component units that meet the criteria for inclusion in the Agency's basic financial
statements. The governing board of the Agency consists of five members of the Clermont City Council
and two individuals appointed by the City Council.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the government. Governmental
activities are those which normally are supported by taxes, intergovernmental revenues, and other
non-exchange transactions. The Agency does not engage in any business-type activities.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Government-Wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function. Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services or privileges provided by a given function or segment, and 2)
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The accounting and reporting policies of the Agency relating to the accompanying financial statements
conform to accounting principles generally accepted in the United States of America applicable to state
and local governments. Accounting principles generally accepted in the United States of America for
local governments include those principles prescribed by the Governmental Accounting Standards
Board (GASB).
Measurement focus refers to what is being measured. Basis of accounting refers to the process of
revenues and expenditures being recognized in the accounts and reported in the financial statements.
Basis of accounting relates to the timing of the measurement made regardless of the measurement
focus applied.
The government-wide financial statements are reported using the economic resources measurement
focus and 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 revenue 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. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay the liabilities of the current
period. For this purpose, the Agency considers revenues to be available if they are collected within
ninety days of the end of the current fiscal period. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
However, debt service expenditures, as well as expenditures related to compensated absences, and
claims and judgments, are recorded only when payment is due. General capital asset acquisitions are
reported as expenditures in the governmental fund. Issuance of long-term debt and acquisitions
under finance leases are reported as other financing sources. Taxes associated with the current fiscal
period are considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period.
Fund Financial Statements
The Agency has only one major governmental fund reported in the basic financial statements, the
general fund. The general fund is the general operating fund of the Agency. It is used to account for all
financial resources. When both restricted and unrestricted resources are available for use, it is the
government's policy to use unrestricted resources first for qualifying expenditures, then restricted
resources as they are needed.
Deposits and investments
Cash and Cash Equivalents
The Agency’s cash and cash equivalents are considered to be cash on hand, demand deposits and
short-term investments with original maturities of three months or less from the date of acquisition.
Investments
Deposits available within various funds of the Primary Government were consolidated for investment
purposes. Substantially all deposits of the Primary Government at September 30, 2025, were invested
using the pooled investment concept. Interest earned was allocated monthly to the Agency based on
its month ending cash and investment balances in proportion to the Primary Government.
Investments for the Agency are reported at fair value for the position in the investment pool. The Florida
Public Assets for Liquidity Management external investment pool meets all of the specified criteria in
Section I50: Investments of the GASB Codification to qualify to elect to measure its investments at
amortized cost. Accordingly, the fair value of the Agency’s position in the pool is equal to the value of
the pooled shares.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deposits and investments (Continued)
Investments (Continued)
The Agency is empowered by statute to invest in the following instruments and may divest itself of
such investments, at prevailing market prices or rates subject to the limitations of Section 218.415 –
a) the Local Government Surplus Funds Trust Fund, administered by the Florida State Board of
Administration or any intergovernmental investment pool authorized pursuant to the Florida
Interlocal Cooperation Act of 1969, as provided in s. 163.01, Florida Statutes; b) Securities and
Exchange Commission registered money market funds with the highest credit quality rating from a
nationally recognized rating agency; c) savings accounts in state-certified qualified public
depositories, as defined in Florida Statute 280.02; d) certificates of deposits and Repurchased
Agreements in state-certified qualified public depositories, as defined in Florida Statute 280.02; e)
direct obligation of the U.S. Treasury; and f) Federal agencies and instrumentalities.
Banks and savings and loans in which Agency funds are deposited must be classified as a qualified
public depository as defined in the Florida Security for Public Deposits Act, Chapter 280, Florida
Statutes, before any deposits are made with those institutions.
Accounts Receivable
Accounts receivable consist of account balances less than forty-five days overdue. As of
September 30, 2025, the Agency did not have any accounts receivable.
Allowance for doubtful accounts will be reported net of the allowance for doubtful accounts.
Accounts receivable in excess of 120 days are subject to being considered as uncollectible. As of
September 30, 2025, the Agency did not have any uncollectible amounts.
Inventory and prepaid items
Inventories of governmental funds are recorded as expenditures when consumed rather than when
purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements. Prepaid items are recorded
using the consumption method of accounting. Under the consumption method, services paid for in
advance are reported as an asset until the period in which the services are consumed.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Capital Assets
Capital assets, which include property, plant and equipment, intangible and infrastructure assets (e.g.
roads, bridges, sidewalks and similar items) are reported in the applicable governmental activities
column in the government-wide financial statements. Capital assets are defined by the Agency as
assets with an initial cost of more than $5,000 and an estimated useful life in excess of one year. Such
assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at acquisition value at the date of donation. Any assets
purchased with Agency funds are transferred to the City upon acquisition or upon completion of
construction or renovation. As a result, the Agency does not own any capital assets at
September 30, 2025. The costs of normal maintenance and repairs that do not add to the value of an
asset or materially extend asset lives are not capitalized.
Transfers
Transfers with primary government are for services provided and netted as part of the reconciliation
to the government-wide presentation. As of September 30, 2025, the Agency had no transfers with
the primary government.
Long-term Obligations
In the government-wide financial statements, long-term debt is reported as liabilities in the applicable
governmental activities statement of net position. As of September 30, 2025, the Agency had no long-
term debt obligations.
Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will not be
recognized as an outflow of resources (expenses/expenditures) until then.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized
as an inflow of resources (revenue) until that time. The governmental funds report unavailable
revenues that are deferred and recognized as an inflow of resources in the period that the amounts
become available. As of September 30, 2025, the Agency had no deferred outflows or inflows of
resources.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
- 18 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Categories and Classification of Net Position and Fund Balance
Net position flow assumptions – Sometimes the Agency will fund outlays for a particular purpose from
both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to
calculate the amounts to report as restricted – net position and unrestricted – net position in the
government-wide financial statements, a flow assumption must be made about the order in which
the resources are considered to be applied. It is the Agency’s policy to consider restricted – net
position to have been depleted before unrestricted – net position is applied.
Fund balance flow assumptions – Sometimes the Agency will fund outlays for a particular purpose
from both restricted and unrestricted resources (the total of committed, assigned, and unassigned
fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and
unassigned fund balance in the governmental fund financial statements a flow assumption must be
made about the order in which the resources are considered to be applied. It is the Agency’s policy
to consider restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be used
for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
Fund balance policies – Fund balance of the governmental fund is reported in various categories
based on the nature of any limitations requiring the use of resources for specific purposes. The
Agency itself can establish limitations on the use of resources through either a commitment
(committed fund balance) or an assignment (assigned fund balance).
The provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, specifies the following classifications:
Nonspendable fund balance – Nonspendable fund balances are amounts that cannot be spent
because they are either (a) not in spendable form or (b) legally or contractually required to be
maintained intact.
Restricted fund balance – Restricted fund balances are restricted when constraints placed on the use
of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws or
regulations of other governments; or (b) imposed by law through constitutional provisions or
enabling legislation.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
- 19 -
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Categories and Classification of Net Position and Fund Balance (Continued)
Committed fund balance – The committed fund balance classification includes amounts that can be
used only for the specific purposes determined by a formal action of the Agency’s highest level of
decision-making authority. The governing council is the highest level of decision-making authority for
the Agency that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund
balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action
is taken (the adoption of another ordinance) to remove or revise the limitation.
Assigned fund balance – Amounts in the assigned fund balance classification are intended to be used
by the Agency for specific purposes but do not meet the criteria to be classified as committed. The
governing council (council) has by resolution authorized the Agency manager to assign fund balance.
The council may also assign fund balance as it does when appropriating fund balance to cover a gap
between estimated revenue and appropriations in the subsequent year’s appropriated budget.
Unlike commitments, assignments generally only exist temporarily. In other words, an additional
action does not normally have to be taken for the removal of an assignment. Conversely, as discussed
above, an additional action is essential to either remove or revise a commitment.
Unassigned fund balance – Unassigned fund balance is the residual classification for the General
Fund.
Revenues
The Agency’s primary source of revenue is tax-increment funds. This revenue is computed by applying
the respective operating tax rates for the City and Lake County, Florida (the County) multiplied by the
increased value of property located within the boundaries of the redevelopment areas of the Agency
in excess of the base property value less 5%. The City, County and Lake County Water Authority are
required to fund the amount annually by January 1 of each year without regard to tax collections or
other obligations.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make various estimates. Actual results could differ from those estimates.
Subsequent Events
Management has evaluated subsequent events through the date that the financial statements were
available to be issued, February 26, 2026, and determined that there were no events that occurred
that required disclosure. No subsequent events occurring after this date have been evaluated for
inclusion in these financial statements.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recently Issued and Implemented Accounting Pronouncements
GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet
the information needs of financial statement users by updating the recognition and measurement
guidance for compensated absences. That objective is achieved by aligning the recognition and
measurement guidance under a unified model and by amending certain previously required
disclosures. There were no significant impacts of implementing this Statement.
GASB Statement No. 102, Certain Risk Disclosures. This Statement was issued in December 2023 to
provide users of government financial statements with essential information about risks related to a
government’s vulnerabilities due to certain concentrations or constraints. This statement defines
concentration as a lack of diversity related to an aspect of a significant inflow of resources our outflow
of resources. A constraint is a limitation imposed on a government by an external party or by formal
action of the government’s highest level of decision-making authority. Concentrations and constraints
may limit a government’s ability to acquire resources or control spending.
This Statement requires a government to assess whether a concentration or constraint makes the
primary government reporting unit or other reporting units that report a liability for revenue debt
vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to
assess whether an event or events associated with a concentration or constraint that could cause the
substantial impact to have occurred, have begun to occur, or are more likely than not to begin to occur
within 12 months of the date the financial statements are issued. If a government determines that those
criteria for disclosure have been met for concentration or constraint, it should disclose information in
notes to financial statements in sufficient detail to enable users of financial statements to understand
the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial
impact. There were no significant impacts of implementing this Statement.
The Government Accounting Standards Board has issued statements that will become effective in
future years. These statements are as follows:
GASB Statement 103, Financial Reporting Model Improvements. This Statement was issued April 2024 to
improve key components of the financial reporting model to enhance its effectiveness in providing
information that is essential for decision making and assessing a government’s accountability. This
Statement also addresses certain application issues.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recently Issued and Implemented Accounting Pronouncements (Continued)
This establishes new accounting and financial reporting requirements—or modifies existing
requirements—related to Management’s discussion and analysis (MD&A); unusual or infrequent items;
presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position;
information about major component units in basic financial statements; budgetary comparison
information; and financial trends information in the statistical section. This Statement will supersede and
amend portions of GASB Statements 34 and 37. This Statement further amends portions of GASB
Statements 14, 41, 42, 44, 49, 56, 58, 61, 62 and 69. Related guidance will also be superseded or
amended upon implementation. Statement 103 will be effective for the fiscal year ending
September 30, 2026.
GASB Statement 104, Disclosure of Certain Capital Assets. This Statement was issued September 2024 to
provide users of government financial statements with essential information about certain types of
capital assets.
This requires certain types of capital assets to be disclosed separately in the capital assets note
disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87,
Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-
Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed
separately by major class of underlying asset in the capital assets note disclosures. Subscription assets
recognized in accordance with Statement No. 96, Subscription-Based Information Technology
Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets
other than those three types to be disclosed separately by major class. This Statement also requires
additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a)
the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will
be finalized within one year of the financial statement date. Governments should consider relevant
factors to evaluate the likelihood of the capital asset being sold within the established time frame. This
Statement requires that capital assets held for sale be evaluated each reporting period. Governments
should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for
historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt
for which the capital assets held for sale are pledged as collateral for each major class of
asset. Statement 104 will be effective for the fiscal year ending September 30, 2026.
The Agency is currently evaluating the requirements of the above statements and the impact on
reporting.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 2: DETAILED NOTES ON ALL FUNDS
Deposits and investments
The Agency pools its deposits with the Primary Government. At September 30, 2025, the Agency’s
carrying amount of cash deposits was $1,460,235. As of September 30, 2025, $250,000 of the
Agency’s bank balance was covered by Federal Depository Insurance Corporation (FDIC). Monies
invested in amounts greater than the insurance coverage are secured by the qualified public
depositories pledging securities with the State Treasurer in such amounts required by the Florida
Security for Public Depositories Act. In the event of a default or insolvency of a qualified public
depositor, the State Treasurer will implement procedures for payment of losses according to the
validated claims of the Agency pursuant to Section 280.08, Florida Statutes.
The investment program is established in accordance with the City’s investment policy, pertinent
bond resolutions and Section 218.415, Florida Statutes, which allows the Agency to invest in the
Florida State Board of Administration intergovernmental investment pool or any intergovernmental
investment pool authorized pursuant to the Florida Interlocal Cooperation Act of 1969, direct
obligations of the United States Government, obligations of the different agencies of the Federal
Government, registered money market funds and accounts of state qualified public depositories.
The Florida Public Assets for Liquidity Management (FL Palm) is a common law trust organized under
the laws of the State of Florida as an intergovernmental investment pool authorized pursuant to the
Florida Interlocal Cooperation Act, as provided in Section 163.01 of the Florida Statutes. At
September 30, 2025, the Agency’s share of FL Palm was $269,143. The fair value of the Agency’s
position in the pool is equal to the value of the pooled shares or net asset value.
Under GASB Codification I50: Investments, if a participant has an investment in a qualifying external
investment pool that measures for financial reporting purposes all of its investments at amortized
cost, it should disclose the presence of any limitations or restrictions on withdrawals (such as
redemption notice periods, maximum transaction amounts, and the qualifying external investment
pool’s authority to impose liquidity fees or redemption gates) in notes to the financial statements. As
of September 30, 2025, there were no redemption fees or maximum transaction amounts, or any
other requirements that serve to limit the Agency’s access to 100 percent of their account value in
the external investment pool.
Custodial credit risk – 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 financial institutions in which the City places its deposits
are certified as “qualified public depositories,” as required under the Florida Security for Public
Deposits Act. For an investment, this is the risk that, in the event of the failure of the counterparty,
the City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party.
City of Clermont, Florida
Community Redevelopment Agency
Notes to Financial Statements
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Note 2: DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and investments (Continued)
Interest rate risk – Interest rate risk is the possibility that interest rates will rise and reduce the fair
value of an investment. The City’s investment policy does not specifically address interest rate risk,
however, the general investment policy is to apply the prudent-person rule, which states investments
are made as a prudent person would be expected to act, with discretion and intelligence, to seek
reasonable income, preserve capital, and in general, avoid speculative investments. The City manages
its exposure to declines in fair values by investing primarily in pooled investments that have a
weighted average maturity of less than three months.
Credit risk – Section I50: Investments of the GASB Codification requires that governments provide
information about credit risk associated with their investments by disclosing the credit rating of
investments in debt securities as described by nationally recognized statistical rating organizations.
The City’s investment policy limits investments to securities with specific ranking criteria.
Foreign currency risk – The City’s investments are not exposed to foreign currency risk and the City’s
investment policy does not address foreign currency risk.
Concentration risk – Section I50: Investments of the GASB Codification requires disclosures of
investments in any one issuer that represents five percent or more of total investments, excluding
investments issued or explicitly guaranteed by the U.S government, investments in mutual funds,
external investments pools and other pooled investments. The City’s investment policy does not
address concentration risk.
Note 3: COMMITMENTS AND CONTINGENCIES
The Agency 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 Agency purchases
commercial insurance for the risks of loss to which it is exposed. Policy limits and deductibles are
reviewed by management and established at amounts to provide reasonable protection from
significant financial loss. The Agency is involved in legal actions and claims arising in the normal course
of business. After taking into consideration legal counsel's evaluations of such actions, management
is of the opinion that their outcome will not have a significant effect on the Agency's financial
statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN
MANAGEMENT’S DISCUSSION AND ANALYSIS
THIS PAGE IS INTENTIONALLY LEFT BLANK.
City of Clermont, Florida
Community Redevelopment Agency
Schedule of Revenues, Expenditures and
Changes in Fund Balance – General Fund
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Variance with
Final Budget
Original Final Positive
For the year ended September 30, 2025 Budget Budget Actual (Negative)
Revenues
Taxes increment financing 437,000$ 878,000$ 877,337$ (663)$
Interest Income 8,000 45,000 44,607 (393)
Intergovernmental - - 400 400
Miscellaneous income - - 56 56
Total revenues 445,000 923,000 922,400 (600)
Expenditures
Current:
General government 445,000 845,281 297,342 547,939
Total expenditures 445,000 845,281 297,342 547,939
Excess (deficit) of revenues over expenditures - 77,719 625,058 547,339
Other financing sources
Issuance of capital lease financing - - - -
Transfers in (400,281) - - -
Total other financing sources (400,281) - - -
Net change in fund balance (400,281) 77,719 625,058 547,339
Fund balance, beginning of year 1,085,662 1,085,662 1,085,662 -
Fund balance, end of year 685,381$ 1,163,381$ 1,710,720$ 547,339$
The Budget is prepared on a modified accrual basis consistent with accounting principles generally
accepted in the United States of America (GAAP). Please refer to the Management Discussion and
Analysis for further analysis of budget to actual activity.
City of Clermont, Florida
Community Redevelopment Agency
Budgetary Notes to Required Supplementary Information
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Note 1: BUDGETARY INFORMATION
The Agency follows these procedures in establishing the budgetary data reflected in the financial
statements:
• Prior to the end of the fiscal year, the City Manager submits to the City Council a proposed
operating budget for the fiscal year commencing the following October 1. The operating budget
includes proposed expenditures and the means of financing them.
• Budget workshops are scheduled as needed.
• The general summary of the budget and notice of public hearing is published in the local
newspaper.
• Public hearings are conducted to obtain taxpayer comments.
• Prior to October 1, the budgets are legally enacted through passage of a resolution.
• A separate Agency board meeting is also held to approve the budget.
• The City Manager is authorized to transfer budgeted amounts within departments; however, any
revisions that alter the total appropriations of any department must be approved by the City
Council.
• The level of classification detail at which expenditures may not legally exceed appropriations is
the department level.
• Appropriations lapse at the close of the fiscal year to the extent they have not been expended.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase
orders and contracts) outstanding at year end are reported as assigned fund balances and do not
constitute expenditures or liabilities because the commitments will be re-appropriated and
honored during the subsequent year.
• Budgets are adopted for the general fund on a basis consistent with generally accepted
accounting principles, except as described below under Budget Basis of Accounting.
• The City Council, by Ordinance or Resolution, may make supplemental appropriations in excess
of those originally estimated for the year up to the amount of available revenues. Budgeted
amounts presented in the accompanying financial statements have been adjusted for legally
authorized revisions.
Budgetary Basis of Accounting
The Agency includes a portion of the prior year’s fund balances represented by unappropriated liquid
assets remaining in the fund as budgeted revenue in the succeeding year. The results of operations on a
GAAP basis do not recognize the fund balance allocation as revenue as it represents prior periods’ excess
of revenues over expenditures. The Agency does not budget for capital outlay expenditures and other
financing sources related to the acquisition of assets through notes payable.
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INDEPENDENT AUDITOR’S REPORT 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
Honorable Mayor and Council
City of Clermont, Florida
Community Redevelopment Agency
City of Clermont, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the City
of Clermont, Florida, Community Redevelopment Agency (the Agency), a component unit of the City
of Clermont, Florida, as of and for the year ended September 30, 2025, and the related notes to the
financial statements, which collectively comprise the Agency’s basic financial statements, and have
issued our report thereon dated February 26, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Orlando, Florida
February 26, 2026
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INDEPENDENT AUDITOR’S MANAGEMENT LETTER
The Honorable Mayor and Council
City of Clermont, Florida
Community Redevelopment Agency
City of Clermont, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Clermont, Florida, Community
Redevelopment Agency (the Agency), a component unit of the City of Clermont, Florida as of and for
the fiscal year ended September 30, 2025, and have issued our report thereon dated
February 26, 2026.
Auditor’s Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the
Auditor General.
Other Reporting Requirements
We have issued our Independent Auditor’s Report 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 and Independent Accountant’s Report on an
examination conducted in accordance with AICPA Professional Standards, AT-C Section 315,
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.
Disclosures in those reports, which are dated February 26, 2026, should be considered in conjunction
with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, require that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. Corrective actions are noted below:
Current Year
Finding #
2023-24 FY
Finding #
2022-23 FY
Finding #
Corrected 2024-02 23-02
2025-01 2024-01 N/A
Tabulation of Uncorrected Audit Findings
- 29 -
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, require that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed
in this management letter, unless disclosed in the notes to the financial statements. The legal
authority of the City of Clermont, Florida, Community Redevelopment Agency is disclosed in the
footnotes. The City of Clermont, Florida, Community Redevelopment Agency has no component units.
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the City of
Clermont, Florida, Community Redevelopment Agency met one or more of the conditions described
in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection
with our audit, we determined that the City of Clermont, Florida, Community Redevelopment Agency
did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures for the City of Clermont, Florida, Community Redevelopment
Agency. It is management's responsibility to monitor the City of Clermont, Florida, Community
Redevelopment Agency's financial condition, and our financial condition assessment was based in
part on representations made by management and the review of financial information provided by
same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Specific Information (unaudited)
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7-9, Rules of the Auditor
General, the City of Clermont, Florida, Community Redevelopment Agency reported the information
below. This information has not been subjected to the auditing procedures applied in the audit of the
financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor
General, the City of Clermont, Florida, Community Redevelopment Agency reported:
a. The total number of Agency employees compensated in the last pay period of
the Agency’s fiscal year as: 1
b. The total number of independent contractors to whom nonemployee
compensation was paid in the last month of the Agency's fiscal year as: None
c. All compensation earned by or awarded to employees, whether paid or accrued,
regardless of contingency: $15,538
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d. All compensation earned by or awarded to nonemployee independent
contractors, whether paid or accrued, regardless of contingency:
$51,898
e. Each construction project with a total cost of at least $65,000 approved by the
Agency that is scheduled to begin on or after October 1 of the following fiscal
year being reported, together with the total expenditures for such projects as: None, $0
f. A budget variance based on the budget adopted under Section 189.016(4),
Florida Statutes, before the beginning of the fiscal year being reported if the
Agency amends a final adopted budget under Section 189.016(6), Florida
Statutes: See Page 25
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor
General, the City of Clermont, Florida, Community Redevelopment Agency reported:
a. The millage rate or rates imposed by the Agency: 4.8800
b. The total amount of ad valorem taxes collected by or on behalf of the Agency: $877,3387
c. The total amount of outstanding bonds issued by the Agency and the terms of
such bonds: None
Information required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)9, Rules of the
Auditor General: The City of Clermont, Florida, Community Redevelopment Agency has not imposed
any special assessments and therefore no reporting is required by Section 218.39(3), Florida Statutes.
Property Assessed Clean Energy (PACE) Programs (Unaudited)
As required by Section 10.554(1)(i)6.a., Rules of the Auditor General, the City did not operate a PACE
program pursuant to Section 163.081 or Section 163.082, Florida Statutes, within the Agency's
geographical boundaries during the fiscal year under audit.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but warrants the
attention of those charged with governance. In connection with our audit, we noted the following:
Finding: In connection with our audit, the Agency did not submit its annual budget or amended
budget for fiscal year 2025 to the Lake County Board of County Commissioners within 10 days after
the adoption of such budget (Finding 2025-01).
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Management Response: The City and Agency transitioned to a new auditor for the FYE 2024 audit,
who notified City and Agency staff of this requirement during fieldwork in March 2025. The City
immediately contacted Lake County to provide a copy of the FYE 2025 budget, though past the
required deadline. During that contact, staff was advised there is no record of the City submitting the
annual budget in prior years, yet this non-compliance item does not appear in prior audits. The City
met the requirement following the adoption of the FYE 2026 budget in September 2025, and thus,
expect to be in compliance for the FYE 2026 audit.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor
General, Federal and other granting agencies, the Agency’s Board Members, and applicable
management, and is not intended to be and should not be used by anyone other than these specified
parties.
Orlando, Florida
February 26, 2026
THIS PAGE IS INTENTIONALLY LEFT BLANK.
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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH LOCAL
GOVERNMENT INVESTMENT POLICIES
The Honorable Mayor and Council
City of Clermont, Florida
Community Redevelopment Agency
City of Clermont, Florida
We have examined the City of Clermont, Florida, Community Redevelopment Agency’s (the Agency),
a component unit of the City of Clermont, Florida, compliance with the requirements of Section
218.415, Florida Statutes, Local Government Investment Policies, during the year ended
September 30, 2025. Management of the Agency is responsible for the Agency’s compliance with the
specified requirements. Our responsibility is to express an opinion on the Agency’s compliance with
the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the AICPA.
Those standards require that we plan and perform the examination to obtain reasonable assurance
about whether the Agency complied, in all material respects, with the specified requirements
referenced above. An examination involves performing procedures to obtain evidence about
whether the Agency complied with the specified requirements. The nature, timing, and extent of the
procedures selected depend on our judgment, including an assessment of the risks of material
noncompliance, whether due to fraud or error. We believe that the evidence obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our ethical responsibilities in accordance with
relevant ethical requirements relating to the examination engagement.
Our examination does not provide a legal determination on the Agency’s compliance with specified
requirements.
In our opinion, the Agency complied, in all material respects, with the requirements of Section
218.415, Florida Statutes, Local Government Investment Policies, for the year ended
September 30, 2025.
This report is intended solely for the information and use of the Agency’s Board, management and
the State of Florida Auditor General and is not intended to be and should not be used by anyone
other than these specified parties.
Orlando, Florida
February 26, 2026
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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH
REDEVELOPMENT TRUST FUND
The Honorable Mayor and Council
City of Clermont, Florida
Community Redevelopment Agency
City of Clermont, Florida
We have examined the City of Clermont, Florida, Community Redevelopment Agency’s (the Agency),
a component unit of the City of Clermont, Florida, compliance with the requirements of Section
163.387(6) and (7), Florida Statutes, Redevelopment Trust Fund Policies, during the year ended
September 30, 2025. Management of the Agency is responsible for the Agency’s compliance with the
specified requirements. Our responsibility is to express an opinion on the Agency’s compliance with
the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the AICPA.
Those standards require that we plan and perform the examination to obtain reasonable assurance
about whether the Agency complied, in all material respects, with the specified requirements
referenced above. An examination involves performing procedures to obtain evidence about whether
the Agency complied with the specified requirements. The nature, timing, and extent of the
procedures selected depend on our judgment, including an assessment of the risks of material
noncompliance, whether due to fraud or error. We believe that the evidence obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our ethical responsibilities in accordance with
relevant ethical requirements relating to the examination engagement.
Our examination does not provide a legal determination on the Agency’s compliance with specified
requirements.
Our examination disclosed the following noncompliance with Section 163.387(6)(b), Florida Statutes,
applicable to the City of Clermont, Florida, Community Redevelopment Agency during the fiscal year
ended September 30, 2025:
• 2025-01 The Agency did not submit its annual or amended budget for fiscal year 2025 to the
Lake County Board of County Commissioners within 10 days after the adoption of such
budget.
In our opinion, the Agency complied, in all material respects, with the requirements of Sections
163.387(6) and 163.387(7), Florida Statutes, Redevelopment Trust Fund, during the year ended
September 30, 2025, except for as noted in the paragraph above.
- 34 -
This report is intended solely for the information and use of the Agency’s Board, management and
the State of Florida Auditor General and is not intended to be and should not be used by anyone
other than these specified parties.
Orlando, Florida
February 26, 2026