Sarasota County Comprehensive Annual Financial Report 2019

Management’s Discussion and Analysis As management of Sarasota County, Florida, we offer readers of the County’s financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended September 30, 2019. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 11-16 of this report. Financial Highlights  The assets and deferred outflows of Sarasota County exceeded its liabilities and deferred inflows at the close of the fiscal year by $2.3 billion ( net position ). Of this amount, $126.6 million ( unrestricted net position ) may be used to meet Sarasota County’s ongoing obligations to citizens and creditors.  Total net position increased by $32.6 million during the current fiscal year. The major contributors to this increase are described on page 32.  At the close of the current fiscal year, governmental funds reported combined ending fund balances of $512.5 million, an increase of $56.2 million during the current fiscal year. Approximately 3.4 percent or $17.4 million is available for spending at the County’s discretion ( unassigned fund balance ).  In accordance with the Financial Reserves Policy adopted by the Board of County Commissioners, the County committed approximately $52.3 million of General Fund fund balance and allocated assigned General Fund fund balance of $25.1 million. The County also maintains financial reserves in other general government, enterprise and internal service funds in accordance with this policy. Additional information on this policy is available in Note 1, Section Q, to the financial statements.  Total debt increased by $28.9 million, or 4.8 percent during the current fiscal year. Additional information on debt activity is available in Note 7 to the financial statements beginning on page 108.  Sarasota County’s General Fund balance increased by $5.5 million this fiscal year. Key factors in this increase are listed on page 37. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Sarasota County’s basic financial statements. Sarasota County’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. This report also contains a statistical section, single audit and other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of Sarasota County’s finances, in a manner similar to private-sector financial statements. The statement of net position presents Sarasota County’s assets plus deferred outflows of resources less liabilities plus deferred inflows of resources. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Sarasota County is improving or deteriorating. The statement of activities presents information showing how the government’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 which will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 29