Audit Report 09.30.2009City Olicie 'ho'bee
'Gateway to South Florida"
CITY OF OKEECHOBEE, FLORIDA
Financial Statements
Year Ended September 30, 2009
i
i
CITY OF OKEECHOBEE, FLORIDA
Table of Contents
As of September 30, 2009
Page
Introductory Section
Title Page 1
Table of Contents 2
City Officials 3
Financial Section
Independent Auditors' Report 5
Management's Discussion and Analysis 7
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets Governmental Activities 15
Statement of Activities Governmental Activities 16
Fund Financial Statements
Governmental Funds
Balance Sheet 17
Statement of Revenues, Expenditures, and Changes in Fund Balances 18
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 19
Fiduciary Funds (Component Units that are Fiduciary in Nature)
Statement of Fiduciary Net Assets Pension Trust Funds 20
Statement of Changes in Fiduciary Net Assets Pension Trust Funds 21
Notes to Financial Statements 23
Required Supplementary Information Other Than Management's Discussion and Analysis
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
General Fund 43
Schedule of Funding Progress Pensions 44
Notes to Required Supplementary Information 45
Independent Auditors' 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 47
Independent Auditors' Management Letter 49
Affidavit of Impact Fee Compliance 53
2
1
CITY OF OKEECHOBEE, FLORIDA
City Officials
As of September 30, 2009
James E. Kirk
Mayor, Chairman
Roscoe Lowry Markham
Dowling R. Watford, Jr.
Clayton Williams
Mike O'Connor
Council Members
John R. Cook
City Attorney
Brian Whitehall
City Administrator
Lane Gamiotea
City Clerk
India Riedel
Account Supervisor
Herbert Smith
Chief of Fire
Denny Davis
Chief of Police
Donnie Robertson
Director of Public Works
Oscar Bermudez
City Engineer
3
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Independent Auditors' Report
I The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
I We have audited the accompanying financial statements of the governmental activities, the major fund, and the
aggregate remaining fund information of the City of Okeechobee, Florida, as of and for the year ended September
30, 2009, which collectively comprise the City's basic financial statements as listed in the table of contents. These
I financial statements are the responsibility of the City of Okeechobee, Florida's management. Our responsibility is to
express opinions on these financial statements based on our audit. We did not audit the financial statements of the
fiduciary fund type and the discretely presented component unit. Those financial statements were audited by
I other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the
fiduciary fund type and the discretely presented component unit is based on the reports of the other auditors.
I 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. Those standards require that we plan and perform the audit to obtain
I reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and the significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
I opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
I financial position of the governmental activities, the major fund, and the aggregate remaining fund information of
the City of Okeechobee, Florida, as of September 30, 2009, and the respective changes in financial position thereof
for the year then ended in conformity with accounting principles generally accepted in the United States of America.
I In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2010, on our
consideration of the City of Okeechobee, Florida's internal control over financial reporting and on our tests of its
I 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
I 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.
I
I rr t!lie ri had ir:lc,:1itI.!attl•
215 Baytree Drive Melbourne, FL 32940 p: (321) 255.0088 i f: (321) 259.8648
4767 New Broad Street Orlando, FL 32814 p: (407) 422.1681 f: (407) 514.2604
I www.hoyman.com
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
Page Two
The management's discussion and analysis (pages 7 through 12) and required supplementary information (pages 43
through 45) are not a required part of the basic financial statements but are supplementary information required by
accounting principles generally accepted in the United States of America. 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.
Hoyman Dobson
Melbourne, Florida
March 30, 2010
okvgool*,
6
CITY OF OKEECHOBEE, FLORIDA
Management's Discussion and Analysis
September 30, 2009
Our discussion and analysis of the City of Okeechobee, Florida's (the City) financial performance provides an
overview of the City's financial activities for the year ended September 30, 2009. Please read it in conjunction
with the City's basic financial statements, which immediately follow this discussion.
FINANCIAL HIGHLIGHTS
The following are highlights of financial activity for the year ended September 30, 2009:
The City's total assets exceeded its liabilities at September 30, 2009 by $19,079,881.
The City's total revenues were $6,346,085 for the year ended September 30, 2009, compared to
total expenses of $5,831,049, which resulted in a $515,036 increase in net assets.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund
financial statements, and 3) notes to basic financial statements.
A. Government -Wide Financial Statements
The government -wide financial statements, which consist of the following two statements, are designed to
provide readers with a broad overview of the City's finances, in a manner similar to a private sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the year. All
changes in net assets 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.
The government -wide financial statements can be found on pages 15 and 16 of this report.
B. 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 City's funds can be divided into two fund types: governmental funds and
fiduciary funds.
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 balances of spendable resources available at the end of the year. Such information
may be useful in evaluating a government's near -term financing requirements.
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CITY OF OKEECHOBEE, FLORIDA
Management's Discussion and Analysis
September 30, 2009
B. Fund Financial Statements (continued)
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 City's near -term financing decisions. Both the governmental fund balance sheet and
the statement of revenues, expenditures and changes in fund balances provide reconciliations to facilitate this
comparison between governmental funds and governmental activities.
The basic governmental fund financial statements can be found on pages 17 through 19 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government -wide financial statement because the resources
of those funds are not available to support the City's own programs.
The basic fiduciary fund financial statements can be found on pages 20 and 21 of this report.
C. Notes to Basic Financial Statements
The notes provide additional information that is essential for a full understanding of the data provided in the
government -wide and fund financial statements. The notes to basic financial statements can be found on pages
23 through 39 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of financial position. The following table
reflects the condensed government -wide statement of net assets.
City of Okeechobee
Statement of Net Assets
2009 2008
Current and other assets 12,443,647 11,852,801
Capital assets 7,801,521 7,815,361
Total assets 20,245,168 19,668,162
Other liabilities 325,145 203,591
Noncurrent liabilities 840,142 899,726
Total liabilities 1,165,287 1,103,317
Net assets:
Invested in capital assets, net of related debt 7,291,924 7,220,632
Restricted 977,398 787,942
Unrestricted 10,810,559 10,556,271
Total net assets 19,079,881 18,564,845
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CITY OF OKEECHOBEE, FLORIDA
Management's Discussion and Analysis
September 30, 2009
Governmental Activities
Total net assets increased by approximately $515,000 primarily as a result of an approximately $577,000 increase
in total assets, offset by the approximately $62,000 increase in total liabilities. The increase in total assets was
due to an approximately $858,000 increase in cash and cash equivalents, which was due primarily to an excess of
property tax revenue and operating and capital grants and contributions in excess of operating expenses.
Increases in cash and cash equivalents were offset by an approximately $125,000 decrease in balances due from
other governments. The increase in total liabilities is due primarily to a $100,000 increase in accrued workers'
compensation liability, offset by a reduction in the capital lease for the CAD system.
The following table shows condensed revenue and expense data:
REVENUES:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Public utility taxes
Franchise fees
Shared revenues
Investment income and other
Total revenues
EXPENSES:
General government
Public safety
Transportation
Physical environment
Interest on long -term debt
Total expenses
Change in net assets
NET ASSETS, beginning
NET ASSETS, ending
City of Okeechobee, Florida
Statement of Activities
2009
753,433
830,135
57,522
2,131,154
751,042
582,859
1,116,640
123,300
6,346,085
1,236,129
3,073,326
699,496
792,278
29,820
5,831,049
515,036
18,564,845
19,079,881
2008
777,979
820,690
196,560
2,205,807
802,096
545,528
1,298,145
279,772
6,926,577
1,186,333
3,074,911
611,782
712,910
27,949
5,613,885
1,312,692
17,252,153
18,564,845
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CITY OF OKEECHOBEE, FLORIDA
Management's Discussion and Analysis
September 30, 2009
Governmental Activities (continued)
The City experienced a decrease of approximately 8.4% in total revenues an approximately $580,000 decrease
to $6.3 million. Capital grants and contributions decreased approximately $139,000 based on the completion of
the Commerce Park Retention Project. Shared revenues decreased approximately $182,000 due to the general
reduction of funds collected by the State. The approximately $156,000 decrease in investment income and other
revenue is due primarily to a general decrease in available interest rates. Total expenses increased approximately
$217,000. The increase in expenses is due primarily to additional legal cost related to prior claims.
FUND FINANCIAL ANALYSIS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related
legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved 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 the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$11,443,756, an increase of $527,081 in comparison with the prior year. Approximately 90.7 percent of this total
amount, $10,378,671, constitutes unreserved fund balance, which is available for spending at the government's
discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it
has already been committed 1) for public facilities of $974,791 and 2) for a variety of other restricted purposes of
$90,294.
The general fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved fund
balance of the general fund was $10,308,486 while total fund balance was $11,348,552. As a measure of the
general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total
fund expenditures. Unreserved fund balance and total fund balance represent approximately 154% and 169% of
total general fund expenditures, respectively.
The capital improvement impact fee fund, the largest fund included in nonmajor funds, recorded a year -end fund
balance of $92,547, due to receipted and unexpended impact fees. Impact fees receipted are to be used for capital
improvements; projects and/or equipment needs identified within the City's Comprehensive Improvement Plan.
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CITY OF OKEECHOBEE, FLORIDA
Management's Discussion and Analysis
September 30, 2009
General Fund Budgetary Highlights
The amount appropriated for expenditures in the original 08/09 budget decreased from $6,895,164 to $6,769,100
in the final 08/09 budget, a decrease of $126,064. The decrease in public safety expenses largely contributed to
the overall decrease in expenditures.
CAPITAL ASSETS AND LONG -TERM LIABILITIES
Capital assets. The City's investment in capital assets as of September 30, 2009, amounts to $7,801,521 (net of
accumulated depreciation). This investment in capital assets includes land, buildings, improvements, equipment,
and construction in progress. During the year, the City's net capital asset balance decreased $13,840 from
$7,815,361.
The City's major additions of $914,537 to capital assets during the current fiscal year included the following:
Entered into a lease for twenty -two police vehicles.
Repurchase of one lot of land within the commerce park
Completion of storm water retention project.
Completion of asphalt and resurfacing of streets.
Improvements to sidewalks.
Commencement of reconstructing the vertical lift in City Hall.
These additions were offset by depreciation expense of $385,330, and equipment disposals of $543,047, which
largely relates to the sale of 24 police vehicles.
City's Capital Assets
(net of depreciation)
2009 2008
Land 1,308,014 1,257,925
Buildings 1,144,706 1,198,599
Improvements other than
building 4,145,109 3,628,846
Equipment 1,164,668 1,214,794
Construction in progress 39,024 515,197
Total 7,801,521 7,815,361
Additional information on the City's capital assets can be found in note 4.C. on pages 32 through 33 of this
report.
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CITY OF OKEECHOBEE, FLORIDA
Management's Discussion and Analysis
September 30, 2009
Long -term Liabilities
City's Outstanding Debt
Long -term Liabilities
2009 2008
Capital leases 509,597 594,729
Compensated absences 330,545 304,997
Total 840,142 899,726
The City's long-term liabilities decreased $59,584 during the current fiscal year. Fewer vehicles purchased under
capital lease equated to a decrease in long-term liabilities. This decrease was offset by the increased additional
liability for compensated absences.
Additional information on the City's long -term debt can be found in notes 4.E. and 4.F. on pages 33 through 34
of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The City Council adopted the same millage rate 6.7432 for budget year 2010 as the prior budget year 2009. The
adopted 6.7432 millage rate is 15.33% less than the roll -back rate and will generate 12.3% less ad valorem
revenue than last year.
Revenues for the fiscal year 2010 adopted budget for all funds of the City total approximately $18,000,821, an
increase from the prior year budget of approximately $301,000. These revenues represent restricted and
unrestricted fund balances including General, Public Facility, Capital Projects, and Special Law Enforcement
funds. The change in revenue is based mostly on the usage of transferred funds from the public facilities fund for
additional transportation expenses.
Expenditures for the fiscal year 2010 adopted budget for all funds of the City total approximately $6,800,000, a
decrease of approximately 1% from the prior year budget for all funds of approximately $6,900,000. Changes to
the 2010 budget, coupled with the 4.17% and 7.7% decrease in expenditures in the prior two years budget, results
in a 11.87% decrease over a three year period. The major changes occur in the General Fund and Public
Facilities Fund.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Okeechobee's finances for all those
with an interest. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the City of Okeechobee, 55 S.E. Third Avenue, Okeechobee, Florida 34974.
12
CITY OF OKEECHOBEE, FLORIDA
Statement of Net Assets Governmental Activities
September 30, 2009
ASSETS
Cash and cash equivalents
Investments
Accounts receivable
Due from other governments
Inventory
Overfunded pension costs
Capital assets:
Nondepreciable
Land
Construction in progress
Depreciable, net of accumulated depreciation
Buildings
Improvements other than buildings
Equipment
Total assets
LIABILITIES
Accounts payable 131,629
Accrued expenses 154,517
Unearned revenue 38,999
Noncurrent liabilities:
Due within one year 192,844
Due in more than one year 647,298
Total liabilities 1,165,287
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Law enforcement
Public facilities
Unrestricted
Total net assets
11,357,272
123,801
105,908
186,310
7,588
662,768
1,308,014
39,024
1,144,706
4,145,109
1,164,668
20,245,168
7,291,924
2,607
974,791
10,810,559
19,079,881
The accompanying notes are an integral part of this financial statement. 15
CITY OF OKEECHOBEE, FLORIDA
Statement of Activities Governmental Activities
Year Ended September 30, 2009
Functions /Programs
General government
Public safety
Transportation
Physical environment
hiterest on long term debt
Total governmental
activities
Charges for
Expenses Services
1,236,129
3,073,326
699,496
792,278
29,820
669,290
37,430
46,713
Program Revenues
Operating
Grants and
Contributions
131,507
15,078
683,550
5,831,049 753,433 830,135
General revenues:
Property taxes
Public utility taxes
Franchise fees
Shared revenues not restricted to specific programs
Unrestricted investment earnings
Miscellaneous
Total general revenues
Change in net assets
Net assets, beginning
Net assets, ending
Capital
Grants and
Contributions
4,678
4,471
48,373
Net (Expense)
Revenue and
Changes in
Net Assets
(435,332)
(3,016,140)
35,238
(743,905)
(29, 820)
57,522 (4,189,959)
2,131,154
751,042
582,859
1,116,640
71,975
51,325
4,704,995
515,036
18,564,845
19,079,881
The accompanying notes are an integral part of this financial statement. 16
1
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CITY OF OKEECHOBEE, FLORIDA
Balance Sheet Governmental Funds
September 30, 2009
Total
Nonmajor Governmental
General Funds Funds
ASSETS
Cash and cash equivalents 11,330,945 26,327 11,357,272
Investments 123,801 123,801
Accounts receivable 105,908 105,908
Due from other governments 186,310 186,310
Due from other funds 68,877 68,877
Inventory 7,588 7,588
Total assets 11,754,552 95,204 11,849,756
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 131,629 131,629
Accrued expenses 154,517 154,517
Due to other funds 68,877 68,877
Unearned revenue 38,999 38,999
Deferred revenue 11,978 11,978
Total liabilities 406,000 406,000
Fund balances:
Reserved for:
Encumbrances 57,687 22,412 80,099
Inventory 7,588 7,588
Law enforcement 2,607 2,607
Public facilities 974,791 974,791
Unreserved, undesignated 10,308,486 70,185 10,378,671
Total fund balances 11,348,552 95,204 11,443,756
Total liabilities and fund balances 11,754,552 95,204
Amounts reported for governmental activities in the statement
of net assets are different because:
Negative net pension obligation resulting from overfunding of
the police officers' and firefighters' pension plans. 662,768
Deferred FEMA grant revenue recorded in the funds has been
reversed and recorded as revenue in governmental activities. 11,978
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 7,801,521
Long -term liabilities, including capital leases and compensated
absences are not due and payable in the current period and,
therefore, are not reported in the funds.
Net assets of governmental activities
The accompanying notes are an integral part of this financial statement.
(840,142)
19,079,881
17
CITY OF OKEECHOBEE, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended September 30, 2009
General
Total
Nonmajor Governmental
Funds Funds
Revenues
Taxes 2,780,986 2,780,986
Intergovernmental 2,203,560 2,203,560
Charges for services 483,555 483,555
Permits and fees 716,195 9,149 725,344
Fines and forfeitures 49,701 49,701
Investment earnings 21,772 3,564 25,336
Miscellaneous 51,325 1,929 53,254
Total revenues 6,307,094 14,642 6,321,736
Expenditures
Current:
General government 1,171,464
Public safety 2,825,144
Transportation 699,496
Physical environment 525,062
Capital outlay 914,537
Debt service:
Principal retired 542,325
Interest 29,820
Total expenditures 6,707,848
Excess (deficiency) of revenues
over (under) expenditures (400,754) 14,642
The accompanying notes are an integral part of this financial statement.
1,171,464
2,825,144
699,496
525,062
914,537
542,325
29,820
6,707,848
(386,112)
Other financing sources (uses)
Transfers in/(out) 659,745 (659,745)
Capital lease proceeds 457,193 457,193
Proceeds from sale of capital assets 456,000 456,000
Total other financing sources (uses) 1,572,938 (659,745) 913,193
Net change in fund balances 1,172,184 (645,103) 527,081
Fund balances, beginning of year 10,176,368 740,307 10,916,675
Fund balances, end of year 11,348,552 95,204 11,443,756
18
CITY OF OKEECHOBEE, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
Year Ended September 30, 2009
Net change in fund balances total governmental funds
527,081
Amounts reported for governmental activities in the statement of activities
are different because:
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 as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current
period.
In the statement of activities, only the gain (loss) on the sale of capital assets
is reported, whereas in the governmental funds, the proceeds from the sale
increase financial resources. Thus, the change in net assets differs from
the change in fund balance by the book value of the capital assets sold.
The net effect of overfunded pension contributions that are reported as
expenditures in the fund financial statements and are recorded
as a net pension asset on the statement of net assets.
The issuance of long -term debt (capital lease) 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. This amount is the net effect of these differences in the
treatment of long -term debt and related items.
Some revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. This is the amount of
revenues recorded in the statement of activities in the prior year, and now
being reported as revenues in the governmental funds in the current year.
Compensated absences are reported in the statement of activities when earned.
As they do not require the use of current financial resources, they are not
reported as expenditures on governmental funds until they have matured.
This is the amount of compensated absences reported in the statement of
activities in the prior year that has matured in the current year.
476,050
(489,890)
(35,499)
85,132
(22,290)
(25,548)
Change in net assets of governmental activities 515,036
19
CITY OF OKEECHOBEE, FLORIDA
Statement of Fiduciary Net Assets Pension Trust Funds
September 30, 2009
LIABILITIES
Accounts payable
The accompanying notes are an integral part of this financial statement.
COMPONENT
UNIT
General
Pension Employees'
Trust Funds Pension Trust
ASSETS
Cash equivalents 1,696,623 1,466,176
Investments:
U.S. Government agencies 118,646
Corporate and foreign bonds
909,079 75757,,565 565
Common equity securities 4,168,337
Receivables 3,394,931
17,519 64,607
Accrued interest and dividends 15,449 12,840
Prepaid expenses 5,289
Total assets 4,312
6,930,942 5,799,303
20,857 14,439
NET ASSETS
Held in trust for pension benefits 6,910,085 5,784,864
20
CITY OF OKEECHOBEE, FLORIDA
Statement of Changes in Fiduciary Net Assets Pension Trust Funds
Year Ended September 30, 2009
COMPONENT
UNIT
General
Pension Employees'
Trust Funds Pension Trust
ADDITIONS
Contributions:
State 135,505
City 102,947 358,463
Employees 70,201 188,170
Total contributions 308,653 546,633
Investment earnings:
Net appreciation in the
fair value of investments 28,370 25,523
Interest and dividends 61,119 50,208
Total investment earnings 89,489 75,731
Less investment expenses (70,911) (47,024)
Net investment earnings 18,578 28,707
Total additions 327,231 575,340
DEDUCTIONS
Benefits paid to participants 173,559 203,385
Refunds on termination 29,464 23,076
Administrative expenses 36,779 17,911
Total deductions 239,802 244,372
Change in net assets 87,429 330,968
Net assets held in trust for pension
benefits, beginning of year 6,822,656 5,453,896
Net assets held in trust for pension
benefits, end of year 6,910,085 5,784,864
The accompanying notes are an integral part of this financial statement. 21
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
e City of Okeechobee (the "City was originally incorporated in 1915 and its present charter was adopted in
The ty operates under the council form of government and
1919 under Chapter 8318 of Special Acts of 1919. The
safety, transportation, and physical environment.
provides the following services: general government, p
These financial statements present the primary government and its component units. Blended component units,
so data from these units
although althoug h legally separate entities, are, in substance, part of the h overnment's no blended component uerations
Discretely t ly presented
are combined with data of the primary g overnment. The City the City
are such
component units are entities that are legally separate from ments to be misleading or incompletewTh efinancial data of
that the exclusion would cause the City's financial statements
entities are reported in a separate column in the combined financial statements.
Discretel Presented Com onent Unit m
City of Okeechobee and Okeechobee Utility Authority Employees' Retirement
y stet Su b t t nti lly all of the
City's general employees and the employees of the Okeechobee
multiple employer public employee retirement system. The plan was established by City Ordinance No. 655, as
amended and restated by City Ordinance No. 686.
Complete financial statements for this component unit may be obtained from the City's administrative offices
located at:
55 S. E. Third Avenue
Okeechobee, Florida 34974
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
s in net
The government -wide financial statements (i.e., the statement t it�es f net of the assets
pr nary government. of
Gov nn ental s and the statement
assets) report information on all of the nonfiducrary
ikewise the primary
activities are those which normally are supported by taxes and intergo
component revenues.
for the primary
government is reported separately from certain legally separate
government is financially accountable.
The statement of activities demonstrates the degree to which
identifiable with a specific function. ogramsre by
p revenues. Direct expenses are those that are clearly
ices, or
Hues include 1) charges to customers or applicants who c r•ibutions that are regoodeas�o neeting
privileges provided by a given function or segment, 2) grants and
the operational or capital requirements of a particular
no function.
s. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
23
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. 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 fiduciary fund financial statements. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. 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 liabilities of the current period. For this purpose, the government considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures
generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded
only when payment is due.
Property taxes, franchise taxes, licenses, charges for services, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when cash
received by the government. i is
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 another fund.
The City reports the following nonmajor governmental funds:
The community development capital project fund accounts for the assets, liabilities, revenues and
expenditures related to the construction of infrastructure and other improvements in the City of
Okeechobee, Florida.
The impact fees capital project fund accounts for the City's collection and expenditure of impact fees,
which are restricted to be spent on capital projects related to law enforcement, fire protection and
transportation.
The industrial development capital project fund accounts for the assets, liabilities, revenues and
expenditures related to the construction of infrastructure and other improvements related to the industrial
development within the City of Okeechobee, Florida.
The law er fbrcement special revenue fund accounts for the assets that are restricted to fund certain
expenditures of the City of Okeechobee, Florida's police department.
24
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (CONTINUED)
Additionally, the City reports the following fund types:
The pension trust fund account is used to account for assets held by the City in a fiduciary capacity for the
police officers' and firefighters' pension plans. The funds are operated by carrying out specific terms of
statutes, ordinances and other governing regulations.
Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in the government -wide financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board.
The effect of interfund activity has been eliminated from the government -wide financial statements.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally
dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Expenses for compensated absences are allocated based on the assigned function of the related employee.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY
1. Cash and investments
The investment of municipal funds is authorized by local ordinance and Florida Statutes which allow the City to
invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized
pursuant to the Florida Interlocal Cooperation Act, SEC registered money market funds with the highest credit
quality rating, interest bearing time deposits or savings accounts in qualified public depositories, direct obligations
of the U.S. Treasury, commercial paper with certain ratings, pre- refunded municipal obligations, banker's
acceptances maturing within one year, investment agreements, direct and general long -term and short-term
obligations of any state with proper credit rating and full faith and credit pledge, municipal obligations with
proper credit rating and repurchase agreements with maturities of 30 days or less with organizations with certain
stipulations and requirements.
25
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
1. Cash and investments (continued)
The City of Okeechobee, Florida invests certain surplus funds in an external investment pool, the Local Government
Surplus Funds Trust Fund (the "State Pool The State Pool is administered by the Florida State Board of
Administration "SBA who provides regulatory oversight. On September 30, 2008, the SBA reported that the
State Pool was exposed to potential risks due to indirect exposure in the sub -prime mortgage financial market.
Consequently, the SBA placed some restriction on how participants could access portions of their surplus funds and
ultimately restructured the State Pool into two separate pools "LPIG" and "Fund B During the year ended
September 30, 2009, the SBA renamed LPIG to Florida PRIME.
The Florida PRIME has adopted operating procedures consistent with the requirements for a 2a7 -like fund. The City
of Okeechobee, Florida's investment in the Florida PRIME is reported at amortized cost. The fair value of the City's
position in the pool is equal to the value of pooled shares.
The Fund B is reported at fair value, determined by the fair value per share of the pool's underlying portfolio.
The City pools the investments of its governmental funds. Investment earnings of the pool are allocated to the
participating funds at the end of each month based on the ratio of each participant funds' investment to the total
pooled investment.
Cash and cash equivalents include cash deposits, cash funds held in broker accounts, and investments held in the
Local Government Surplus Funds Trust Fund (Florida PRIME).
Within the pension trust funds, plan assets are managed by Bowen, Hanes and Company. The plans follow the
investment guidelines as established within the ordinance. The pension trust funds are allowed to invest in the State
Pool; obligations of the U.S. Government or agencies thereof; banking institutions within the state and other such
institutions within the guidelines of the state statutes which are insured by the Federal Deposit Insurance
Corporation; investments agreements; direct and general long -term obligations of any state with proper credit rating
and full faith and credit pledge; municipal obligations with proper credit rating; annuity and life insurance contracts;
bonds issued by the State of Israel; and stocks, bonds, and commingled funds administered by National or State
banks or evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United
States, provided that the corporation is listed on a nationally recognized exchange and holds proper credit ratings as
set forth by a major credit rating service. These equity investments are not to exceed 60% of the assets of the
pension trust funds on a cost basis. Temporary investment funds held by the custodian in a money market fund are
classified as cash equivalents within the investment account.
Pension trust fund investments are reported at fair value. Short-term investments are reported at cost, which
approximates fair value. Securities traded on a national or international exchange are valued at the last reported
sales price. Shares of mutual funds, including proprietary funds and common and collective funds, are valued at
quoted market prices, which represent the net asset value of shares held by the pension trust fund at year end.
Interest is recognized when earned. Gains and losses from the sale or exchange of investments are recognized on
the transaction date. The difference between the excess of fair value over cost represents unrealized gains.
26
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
2. Receivables and payables
All trade and property tax receivables are considered to be fully collectible.
The City's property tax is levied annually on the real and personal property located in the City on January 1st of
the prior year. Tax collections by the Okeechobee County tax collector begin in November of each year with a
due date of March 31 of the following year. All property taxes remaining unpaid at May 30 are subject to a tax
certificate sale.
The City is permitted by state law to levy taxes up to 10 mills on assessed valuation for the General Fund. The tax
rate for the fiscal year was 6.7432 mills.
The City Council determines the millage rates and adopts a tax levy by resolution prior to September 30 to fund the
next ensuing fiscal year's budget. The assessment of all properties and collection of municipal taxes are provided by
the County's Property Appraiser and Tax Collector. The ad valorem tax calendar is as follows:
Lien date
Levy date
Due date
Delinquent date
All property taxes remaining unpaid at May 30 are subject to a tax certificate sale by the Tax Collector.
3. Inventory
January 1
Prior to September 30
November 1
April 1
Inventories are valued at cost which approximates market, using the first in/first -out (FIFO) method. The costs of
inventories are recorded as expenditures when used (consumption method).
4. Capital assets
Capital assets, which include: property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the government -wide financial statements. Capital assets are
defined by the government as assets with an initial, individual cost of more than $750 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 estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'
lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
27
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY (CONTINUED)
4. Capital assets (continued)
Property, plant, and equipment is depreciated using the straight -line method over the following estimated useful
lives:
5. Compensated absences
6. Unearned revenues
Assets Years
Buildings 25 -60
Building improvements 12 -20
Vehicles 10
Equipment 5 -15
It is the government's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All sick and vacation pay is accrued when incurred in the government -wide financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of employee
resignations and retirements.
Unearned revenues include amounts collected before the revenue recognition criteria are met. The unearned
items consist primarily of business tax revenues.
7. Deferred revenues
Deferred revenues include receivables which, under the modified accrual basis of accounting, are measurable
but not yet available to finance expenditures of the current fiscal period.
8. Long -term obligations
In the government -wide financial statements, long -term debt and other long-term obligations are reported as
liabilities in the statement of net assets.
In the governmental fund financial statements, the face amount of debt issued is reported as other financing
sources.
9. Fund equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose. Reserves for
encumbrances represent amounts remaining on outstanding purchase orders and contracts that are not available for
appropriation. Reserves for inventory represent amounts paid from current resources for use in future years that are
not available for appropriation. Reserves for law enforcement and public facilities represent amounts that are legally
restricted by outside parties for specific purposes.
28
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 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 fund 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 states that "long-term liabilities, including capital leases and compensated absences, are not due and
payable in the current period and therefore, are not reported in the funds." The details of this $(840,142) difference
are as follows:
Capital leases payable (509,597)
Compensated absences (330,545)
Net adjustment to reduce fund balance total governmental funds
to arrive at net assets governmental activities (840,142)
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 changes in fund balances total governmental funds and changes in net assets of
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 $476,050 difference are as follows:
Capital outlay 914,537
Depreciation expense (438,487)
Net adjustment to increase net changes in fund balances total governmental
funds to arrive at changes in net assets of governmental activities 476,050
Another element of that reconciliation states that "the issuance of long -term debt (e.g., bonds, 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. The details of this $85,132 difference are as follows:
Debt issued or incurred:
Capital lease financing (457,193)
Principal repayments 542,325
Net adjustment to increase net changes in fund balances total governmental
funds to arrive at changes in net assets of governmental activities 85,132
29
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 2 RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
(CONTINUED)
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 (CONTINUED)
Another element of that reconciliation states that "some revenues in the statement of activities that do not provide
current financial resources are not reported as revenues in the funds." The details of this $(22,290) difference are
as follows:
FEMA grant revenue Tropical Storm Fay (3,998)
Charges for services maintenance contract with FDOT (18,292)
Net adjustment to decrease net changes in fund balances total governmental
funds to arrive at changes in net assets of governmental activities (22,290)
NOTE 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
As permitted by GASB Statement No. 34, Basic Financial Statements and Management Discussion and Analysis
for State and Local Governments, the City has elected to disclose all budgetary information in the notes to the
required supplementary information.
NOTE 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
At year end, the City's (Primary Government) carrying amount of deposits was $11,356,908 and the bank balance
was $11,508,929. Monies invested in amounts greater than the FDIC insurance coverage are secured by the banks
pledging securities with the State Treasurer in the multiple financial institutions collateral pool. See also previous
information outlined in Note 1.D.1 regarding the City's policies on cash and investments. In addition, the City
maintained $324 of petty cash.
As of September 30, 2009, $250,000 of the City's bank balances are covered by federal depository insurance
(FDIC) through December 31, 2013 at which time it will revert back to $100,000. 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 City pursuant to Section 280.08, Florida Statutes.
30
i
i
I
i
i
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. DEPOSITS AND INVESTMENTS (CONTINUED)
At September 30, 2009, the City had the following investments:
Investment Maturities (in years)
Investment type Fair Value Less than 1
1 -5
Primary government:
SBA (Florida Prime)
SBA Fund B
Pension trust funds:
Money market fund
U.S. Government agencies
Corporate and foreign bonds
Common equity securities
Credit risk
40 40
123,801
123,841 40
3,162,799
217,518
1,666,644
7,563,268
12,610,229
Interest rate risk exists when there
investment's fair value. In accordance
maturities with known cash needs and
address interest rate risk.
3,162,799
650,144
650,144
220,007
7,563,268
10,946,074
6 -10
123,801
123,801
217,518
597,347
814,865
More
than 10 Rating Agency
AAAm S &P
Not rated
Not rated
AAA S &P
199,146 AA+ -BBB- S &P
199,146
Fixed income securities have inherent financial risks, including credit risk and interest rate risk. Credit risk for fixed
income securities is the risk that the issuer will not fulfill its obligations. The City's investment policy and the
investment policies for the pension trust funds limit investments to securities with specific ranking criteria.
Interest rate risk
is a possibility that changes in interest rates could adversely affect an
with Florida Statute 218.415(6), the City's policy is to match investment
anticipated cash flow requirements. The City's pension trust funds do not
Concentration of credit risk
Concentration of credit risk is an increased risk of loss that occurs as more investments are acquired from one
issuer (i.e. lack of diversification). The City's investment policy and the investment policies for the pension trust
funds do not specifically address concentration of credit risk.
31
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED)
B. RECEIVABLES
Receivables as of September 30, 2009 are as follows:
Franchise/Utility taxes
Contributions
Other
Receivables, net
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Equipment
Total accumulated depreciation
General Fund
96,336
9,572
105,908
Governmental activities:
Capital assets, not being depreciated:
Land 1,257,925
Construction in progress 515,197
Total capital assets, not being depreciated 1,773,122
Municipal
Police Officers'
Pension
Trust
12,756
12,756
C. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2009 was as follows:
Beginning
Balance Increases
50,089
39,024
89,113
1,673,013
4,626,815 738,087
2,252,877 602,534
8,552,705 1,340,621
(474,414) (53,893)
(997,969) (221,824)
(1,038,083) (162,770)
(2,510,466) (438,487)
Total capital assets, being depreciated, net 6,042,239 902,134
Municipal Component Unit
Firefighters' General
Pension Employees
Trust Pension Trust
4,763
4,763 64,607
Decreases
(515,197)
(515,197)
(543,047)
(543,047)
53,157
53,157
(489,890)
64,607
Ending
Balance
1,308,014
39,024
1,347,038
1,673,013
5,364,902
2,312,364
9,350,279
(528,307)
(1,219,793)
(1,147,696)
(2,895,796)
6,454,483
Governmental activities capital assets, net 7,815,361 991,247 (1,005,087) 7,801,521
32
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions /programs of the government as follows:
Governmental activities:
General government 13,640
Public safety 160,867
Physical environment 263,980
Total depreciation expense governmental activities 438,487
D. INTERFUND RECEIVABLES, PAYABLES, ANT) TRANSFERS
During the year ended September 30, 2009, the Impact Fee Capital Project fund (a nonmajor fund) paid certain
expenditures on behalf of the General fund. As of December 30, 2009, the City recorded a payable due from the
General fund to the nonmajor fund in the amount of $68,877, which is expected to be repaid during the
subsequent fiscal year.
During the year ended September 30, 2009, the Impact Fee Capital Project fund (a nonmajor fund) transferred
$652,099 to the General fund. The transfer represented proceeds from the sale of land in a previous year, and was
transferred for the purpose of removing all balances and activity unrelated to the collection and expenditure of
impact fees. Remaining current year transfers of $7,646 were not significant.
E. CAPITAL LEASE
The government has entered into lease agreements as lessee for financing the acquisition of certain computer
equipment and vehicles for the police, fire and public works departments. These lease agreements qualify as capital
leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease
payments as of the inception dates.
The assets acquired through the capital lease are as follows:
Asset:
Vehicles 457,193
Equipment 194,838
Total assets 652,031
Less: Accumulated depreciation (65,210)
Total 586,821
33
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 4 DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. CAPITAL LEASE (CONTINUED)
Obligations of governmental activities under capital leases at September 30, 2009, were as follows:
Year Ending Sept. 30, Principal Interest Total
2010 122,254 24,412 146,666
2011 128,645 18,021 146,666
2012 135,369 11,296 146,665
2013 98,065 4,215 102,280
2014 25,264 306 25,570
Total 509,597 58,250 567,847
F. CHANGES IN LONG -TERM LIABILITIES
Long -term liability activity for the year ended September 30, 2009, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental
activities:
Capital lease 594,729 457,193 (542,325) 509,597 122,254
Compensated absences 304,997 153,726 (128,178) 330,545 70,590
Long -term liabilities 899,726 610,919 (670,503) 840,142 192,844
For the governmental activities, compensated absences and capital leases are generally liquidated by the general
fund.
NOTE 5 OTHER INFORMATION
A. RISK MANAGEMENT
The City is exposed to various risks of loss, including, but not limited to theft, damage or destruction of its
buildings, equipment, records, and monetary assets, and liability for personal injury, property damage, and
consequences of employee and public official actions. The City participates in a non assessable public risk pool to
cover significant loss exposure and purchases commercial insurance for third party pollution liability coverage. The
pool maintains a loss reserve and purchases specific excess insurance, aggregate excess insurance and multiple
loss coverage from commercial carriers and underwriters.
34
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 5 OTHER INFORMATION (CONTINUED)
B. RETIREMENT COMMITMENTS DEFINED BENEFIT PLANS
Plan Descriptions The City contributes to two single employer defined benefit pension plans: City of Okeechobee
Municipal Police Officers' Pension Trust Fund and City of Okeechobee Municipal Firefighters' Pension Trust Fund
(the Plans). The Plans provide retirement, disability, and death benefits to plan members and their beneficiaries.
Chapters 185 and 175 of the Florida Statutes establish the minimum benefits and the minimum standards for the
operation and funding of the Police Officers' and the Firefighters' Municipal Pension Trust Funds, respectively. Per
City Ordinances Nos. 750 and 749, sole responsibility for administering the Plans is vested in the Board of Trustees
of each plan. The Boards cannot amend the provisions of the plans without the approval of the City. The Plans issue
publicly available financial reports that include financial statements and required supplementary information. The
reports are available from the City of Okeechobee, Florida, 55 S.E. Third Avenue, Okeechobee, Florida 34974.
Funding Policies The contribution requirements of plan members and the City are established and may be
amended by City ordinance. Plan members are required to contribute 5% of their annual covered salary for the
Police Officers' and Firefighters' Municipal Trust Funds. The City is required to contribute an amount equal to the
difference in each year between the total aggregate member contributions for the year, plus state contributions for
such year, and the normal cost for the year, as shown by the most recent actuarial valuation of the plan; the current
contribution rate as a percentage of covered payroll is 10.55% for the Police Officers' plan and 4.04% for the
Firefighters' plan.
The City recognized as revenues and expenditures on- behalf payments relating to pension contributions for its
public safety employees that the State of Florida paid to the Police Officers' and Firefighters' Plans in the amounts
of $83,892 and $51,613, respectively. These contributions are funded by an excise tax upon certain casualty
insurance companies on their gross receipts of premiums from policy holders.
Annual Pension Cost The annual required pension contributions for the Plans were determined as part of the
October 1, 2009 actuarial valuations using the aggregate actuarial cost method. The aggregate actuarial cost method
does not identify or separately amortize unfunded actuarial liabilities. The actuarial assumptions included (a) 7%
investment rate of return (net of administrative expenses) for both the Police Officers' Trust and Firefighters' Trust
and (b) projected salary increases of 6% and 7% for the Police Officers' Trust and Firefighters' Trust, respectively.
Both (a) and (b) included an inflation component of 3.5% and 4% for the Police Officers' Trust and Firefighters'
Trust, respectively. The actuarial value of assets was determined using a method which recognizes actual investment
return in excess of the assumed return evenly over a four year period.
35
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 5 OTHER INFORMATION (CONTINUED)
B. RETIREMENT COMMITMENTS DEFINED BENEFIT PLANS (CONTINUED)
Trend information for each of the City's defined benefit plans:
Municipal Police Officers'
Annual Percentage Net
Year Pension Of APC Pension
Ended Cost (APC) Contributed Obligation
9/30/07 258,165 96 (329,530)
9/30/08 233,571 96 (320,687)
9/30/09 215,068 95 (310,869)
Municipal Firefighters' 9/30/07 90,768 94 (350,162)
9/30/08 75,540 102 (351,725)
9/30/09 66,669 100 (351,899)
The annual pension cost and net pension obligation for the years ended September 30, 2007 and 2008 have been
restated by the actuary. Similar adjustments have been reflected in the separately issued pension audit reports.
Funding Status and Funding Progress The funded status of the Plans as of October 1, 2008, the most recent
actuarial valuation date, is shown below:
Actuarial Overfunded
Accrued Liability AAL as a
Actuarial Value (AAL) —Entry Overfunded Funded Covered of Covered
Of Assets Age AAL Ratio Payroll Payroll
(a) (b) (a) -(b) (a) /(b) (c) (b- a) /(c)
Police Officers':
5,424,146 5,201,828 222,318 104.3% 947,296 23.5%
Firefighters':
2,330,746 2,104,641 226,105 110.7% 456,742 49.5%
For purposes of this schedule, the AAL for the Plan is determined using the entry age actuarial cost method. Note
that the ARC for the Plan is calculated using the aggregate actuarial cost method.
The schedule of funding progress presented as required supplementary information (RSI) immediately following the
notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the AAL for benefits.
36
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 5 OTHER INFORMATION (CONTINUED)
B. RETIREMENT COMMITMENTS DEFINED BENEFIT PLANS (CONTINUED)
Pension Plan Discretely Presented Component Unit
Plan Description The City contributes to the City of Okeechobee and Okeechobee Utility Authority Employees'
Retirement System (the System), a cost sharing multiple employer defined benefit pension plan administered by
the System's Board of Trustees. The System provides retirement, disability, and death benefits to plan members
and their beneficiaries. The Board of Trustees is authorized by City Ordinance No. 686 to establish and amend all
plan provisions. The System issues a publicly available financial report that includes financial statements and
required supplementary information. That report is available from the City of Okeechobee, Florida, 55 S.E. Third
Avenue, Okeechobee, Florida 34974.
Funding Policy The contribution requirements of the plan members and the City are established and may be
amended by City ordinance. Plan members are required to contribute 6% of their covered annual salary. The City is
required to contribute at an actuarially determined rate; the current rate is 11.43% of covered payroll. The City's
contributions for the years ended September 30, 2009, 2008, and 2007 were $99,150, $91,285 and $87,634,
respectively, and were equal to the required contributions for each year.
Pension trust funds fiduciary net assets activity as of September 30, 2009 was as follows:
COMPONENT
UNIT
Police Total General
Firefighters' Officers' Pension Employees'
Pension Pension Trust Funds Pension
ASSETS
Cash equivalents 525,512 1,171,111 1,696,623 1,466,176
Investments:
U.S. Government securities 34,605 84,041 118,646 98,872
Corporate and foreign bonds 265,148 643,931 909,079 757,565
Common equity securities 1,240,493 2,927,844 4,168,337 3,394,931
Receivables 4,763 12,756 17,519 64,607
Accrued interest and dividends 4,527 10,922 15,449 12,840
Prepaid expenses 1,450 3,839 5,289 4,312
Total assets 2,076,498 4,854,444 6,930,942 5,799,303
LIABILITIES
Accounts payable
7,973 12,884
20,857 14,439
NET ASSETS
Held in trust for pension
benefits 2,068,525 4,841,560 6,910,085 5,784,864
37
CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 5 OTHER INFORMATION (CONTINUED)
B. RETIREMENT COMMITMENTS DEFINED BENEFIT PLANS (CONTINUED)
Pension trust funds increase in fiduciary net assets activity as of September 30, 2009 was as follows:
COMPONENT
UNIT
Police Total General
Firefighters' Officers' Pension Employees'
Pension Pension Trust Funds Pension
ADDITIONS
Contributions
State 51,613 83,892 135,505
City 5,755 97,192 102,947 358,463
Employees 22,837 47,364 70,201 188,170
Total contributions 80,205 228,448 308,653 546,633
Investment earnings:
Net appreciation in fair value
of investments 14,032 14,338 28,370 25,523
Interest and dividends 18,482 42,637 61,119 50,208
Total investment earnings 32,514 56,975 89,489 75,731
Less investment expenses (28,092) (42,819) (70,911) (47,024)
Net investment earnings 4,422 14,156 18,578 28,707
Total additions 84,627 242,604 327,231 575,340
DEDUCTIONS
Benefits paid to participants 30,782 142,777 173,559 203,385
Refunds on termination 29,464 29,464 23,076
Administrative expenses 16,232 20,547 36,779 17,911
Total deductions 47,014 192,788 239,802 244,372
Change in net assets 37,613 49,816 87,429 330,968
Net assets held in trust for
pension benefits, beginning
of year 2,030,912 4,791,744 6,822,656 5,453,896
Net assets held in trust for
pension benefits, end of year $2,068,525 4,841,560 6,910,085 5,784,864
38
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CITY OF OKEECHOBEE, FLORIDA
Notes to Financial Statements
September 30, 2009
NOTE 5 OTHER INFORMATION (CONTINUED)
C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION
As required by Section 112.0801, Florida Statutes, former employees who have retired prior to October 1, 1987, as
well as those who retire on or after such date, and their eligible dependents, have the option to participate in the
City's Group Health Insurance Plan (the "Plan The City requires retirees to pay 100% of the premiums for retirees
and their dependents. However, inclusion of retirees into the Plan represents an implicit cost to the City, as the
claims experience of active employees is commingled with the claims experience of retirees to determine total health
care costs per employee. The City funds this future implicit cost on a pay -as- you -go basis. Provisions of the Plan
may only be amended by City Council. As of September 30, 2009, there are 2 participants (retirees) receiving
benefits. For the year ended September 30, 2009, the City did not pay premiums for these covered individuals.
D. CONCENTRATION COLLECTIVE BARGAINING UNIT
Members of the City's fire department are covered by a collective bargaining agreement. The agreement with the
employees covered by the International Association of Firefighter's (IAFF) extends through September 30, 2009 and
had not been renewed as of the date of our report.
NOTE 6 SUBSEQUENT EVENTS
Long -term debt. The City entered into a 5 year capital purchase lease agreement for police vehicles on January 19,
2010. The City will make quarterly payments of $21,863, including principal and interest, through maturity. The
nominal annual interest rate is 4.85
39
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REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN
MANAGEMENT'S DISCUSSION AND ANALYSIS
41
CITY OF OKEECHOBEE, FLORIDA
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
General Fund
Year Ended September 30, 2009
Revenues
Taxes
Intergovernmental
Charges for services
Permits and fees
Fines and forfeitures
Investment earnings
Miscellaneous
Total revenues
Expenditures
Current:
General government:
Legislative
Executive
City clerk
Financial services
Legal council
General services
Total general government
Public safety:
Fire
Police
Total public safety
Transportation
Physical environment
Capital outlay
Debt service:
Principal
Interest
Total debt service
Total expenditures
Deficiency of revenues under
expenditures
Other financing sources (uses)
Operating transfers in (out)
Capital lease proceeds
Sale of capital assets
Net other financing sources (uses)
Excess of revenues and other financing
sources over expenditures
and other financing uses
Fund balances, beginning of year
Fund balances, end of year
Reconciliation of budgetary
to GAAP basis
Current year encumbrances
Prior year encumbrances
Fund balance on GAAP basis
Original
Budget
38,290
10,176,368
$10,214,658
Final
Budget
2,791,883 2,762,083
2,114,702 2,034,621
370,524 426,807
544,961 653,493
26,100 34,574
140,509 30,550
80,214 51,323
6,068,893 5,993,451
110,544
10,176,368
10,286,912
Actual
(on Budgetary
Basis)
2,780,986
2,203,560
483,555
716,195
49,701
21,772
51,325
6,307,094
138,938 143,134 135,224 7,910
167,320 159,614 154,711 4,903
188,011 176,837 172,262 4,575
208,191 198,422 195,079 3,343
125,732 148,499 142,861 5,638
458,898 459,277 417,041 42,236
1,287,090 1,285,783 1,217,178 68,605
1,251,345 1,218,875 1,187,252 31,623
1,824,008 1,780,754 1,734,993 45,761
3,075,353 2,999,629 2,922,245 77,384
1,085,502 1,038,344 1,014,240 24,104
565,968 284,258 266,261 17,997
449,982 631,523 630,160 1,363
409,552 507,014 507,013 1
21,717 22,549 20,746 1,803
431,269 529,563 527,759 1,804
6,895,164 6,769,100 6,577,843 191,257
(826,271) (775,649) (270,749) 504,900
659,745 659,745
422,961 457,193 457,193
441,600 429,000 456,000 27,000
864,561 886,193 1,572,938 686,745
1,302,189
10,176,368
11,478,557
57,687
(187,692)
11,348,552
Variance with
Final Budget
Positive (Negative;
18,903
168,939
56,748
62,702
15,127
(8,778)
2
313,643
1,191,645
1,191,645
The accompanying notes to required supplementary information are an integral part of this fmancial schedule. 43
CITY OF OKEECHOBEE, FLORIDA
Required Pension Supplementary Information Schedule of Funding Progress
Last Six Fiscal Years
Police Officers' Pension Plan
Actuarial
Valuation
Date
2009
2008
2007
2006
2005
2004
Firefighters' Pension Plan
Actuarial
Valuation
Date
2009
2008
2007
2006
2005
2004
Actuarial
Value of
Assets (a)
5,424,146
5,253,380
4,973,343
4,479,248
4,057,398
3,804,195
Actuarial
Value of
Assets (a)
2,330,746
2,255,117
2,123,157
1,908,512
1,717,461
1,627,792
Actuarial
Accrued
Liability
AAL
Entry Age (b)
5,201,828
4,966,790
4,722,755
4,437,752
4,276,250
4,075,135
Actuarial
Accrued
Liability
AAL
Entry Age (b)
2,104,641
1,898,670
1,705,380
1,529,760
1,354,645
1,292,045
(Unfunded)
Overfunded
AAL
(b -a)
222,318
286,590
250,588
41,496
(218,852)
(270,940)
Funded
Ratio
(a/b)
104.27%
105.77%
105.31%
100.94%
94.88%
93.35%
Covered
Payroll (c)
947,296
917,647
896,164
862,664
779,567
813,957
(Unfunded)
Overfunded Funded
AAL Ratio Covered
(b -a) (a/b) Payroll (c)
(Unfunded)
Overfunded
AAL as a
of Covered
Payroll
((b -a) /c)
23.5%
31.2%
28.0%
4.8%
-28.1%
-33.3%
(Unfunded)
Overfunded
AAL as a
of Covered
Payroll
((b -a) /c)
226,105 110.74% 456,742 49.5%
356,447 118.77% 461,494 77.2%
417,777 124.50% 450,792 92.7%
378,752 124.76% 404,892 93.5%
362,816 126.78% 396,381 91.5%
335,747 125.99% 409,985 81.9%
The annual required contribution (ARC) is calculated using the aggregate actuarial cost method. Information in this
schedule is calculated using the entry age actuarial cost method as a surrogate for the funding progress of the Plan.
44
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CITY OF OKEECHOBEE, FLORIDA
Notes to Required Supplementary Information
September 30, 2009
A. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all
governmental funds. All annual appropriations lapse at fiscal year end.
The City Administrator may make transfers of appropriations within a department as long as the total budget of
the department is not increased. Transfers of appropriations between departments require the approval of the
council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed
appropriations) is the department level. The council made certain supplemental budgetary appropriations during
the year.
Encumbrances accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts)
outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities
because the commitments will be re- appropriated and honored during the subsequent year.
B. ADDITIONAL ACTUARIAL INFORMATION
The information presented in the required supplementary schedules was determined as part of the actuarial
valuations at the dates indicated. Additional information as of the latest actuarial valuation follows:
Police
Firefighters' Officers'
Pension Plan Pension Plan
Actuarial valuation date 10/01/09 10 /01/09
Actuarial cost method Aggregate Aggregate
Amortization method N/A N/A
Remaining amortization period N/A N/A
Asset valuation method Four year smoothed Four year smoothed
market market
Actuarial assumptions:
Investment rate of return* 7.0% 7.0%
Projected salary increases* 6.0% 7.00
0
Cost -of- living adjustment 0.25% 0.25%
00
*Includes inflation at: 3.5% 4.0%
4.0
45
II-D aYvpttapt e
1
Independent Auditors' 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
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
We have audited the financial statements of the governmental activities, the major fund, and the aggregate remaining
fund information of the City of Okeechobee, Florida, as of and for the year ended September 30, 2009, which
collectively comprise the City of Okeechobee, Florida's basic financial statements and have issued our report
thereon dated March 30, 2010. Our report was modified to include a reference to other auditors. 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. Other auditors audited the financial statements of the fiduciary fund type and the discretely
presented component unit, as described in our report on the City of Okeechobee, Florida's financial statements.
This report does not include the results of the other auditors' testing of internal control over financial reporting or
compliance and other matters that are reported on separately by those auditors.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Okeechobee, Florida'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 of
Okeechobee, Florida's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City of Okeechobee, Florida's internal control over financial reporting.
A control deficiency 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 misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City's
ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a misstatement of the City's financial
statements that is more than inconsequential will not be prevented or detected by the City's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more
than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected'
by the City of Okeechobee, Florida's internal control.
milled! 1'ublii l et omrt,:uts
215 Baytree Drive Melbourne, FL 32940 p: (321) 255.0088 f: (321) 259.8648
4767 New Broad Street Orlando, FL 32814 p: (407) 422.1681 f: (407) 514.2604
www.hoyman.com
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
Page Two
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as described above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Okeechobee, Florida'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.
This report is intended solely for the information and use of management, the Honorable Mayor and Members of the
City Council, others within the entity, and the State of Florida Office of the Auditor General, and is not intended to
be and should not be used by anyone other than these specified parties.
.�r�•, nJdivern,
Hoyman Dobson
Melbourne, Florida
March 30, 2010
48
r�
c)-(v.ktta,K,Dpaa,,,,
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
Independent Auditors'
Management Letter
We have audited the financial statements of the City of Okeechobee, Florida as of and for the fiscal year ended
September 30, 2009, and have issued our report thereon dated March 30, 2010.
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. We have issued our Independent Auditors' Report on Internal Control
over Financial Reporting and Compliance and Other Matters. Disclosures in that report, which is dated March 30,
2010, should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which
govern the conduct of local governmental entity audits performed in the State of Florida. This letter includes the
following information, which is not included in the aforementioned auditor's reports or schedule:
Section 10.554(1)(1)1., Rules of the Auditor General, requires 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 have been taken to address findings and recommendations made in the
preceding annual financial audit report, as noted below:
Internal Control and Compliance Findings:
IC 2008 -1 Year end analytic procedures Con
Management Letter:
ML 2008 -1 Timeliness of budget amendments Corrected
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the City of Okeechobee, Florida complied with Section 218.415,
Florida Statutes.
C.'riif,ert 1'uhL ;i; rn:nrrnnr.
215 Baytree Drive Melbourne, FL 32940. p: (321) 255.0088 f: (321) 259.8648
4767 New Broad Street Orlando, FL 32814 p: (407) 422.1681 f: (407) 514.2604
www.hoyman.com
49
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
Page Two
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Section 10.554(1)(1)4., Rules of the Auditor General, requires that we address violations of laws, regulations,
contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect
on the determination of financial statement amounts that is less than material but more than inconsequential.
In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional
judgment, report the following matters that are inconsequential to the determination of financial statement
amounts, considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts
or grant agreements, or abuse that have occurred, or are likely to have occurred, and (2) control deficiencies
that are not significant deficiencies, including, but not limited to: (a) improper or inadequate accounting
procedures (e.g., the omission of required disclosures from the annual financial statements); (b) failures to
properly record financial transactions; and (c) inaccuracies, shortages, defalcations, and instances of fraud
discovered by, or that come to the attention of, the auditor. In connection with our audit, we did not have
any such findings.
Section 10.554(1)(i)6., Rules of the Auditor General, requires 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 Okeechobee, Florida is disclosed in the footnotes.
Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or
not the local governmental entity has met one or more of the conditions described in Section 218.503(1),
Florida Statutes, and identification of the special condition(s) met. In connection with our audit, we
determined that the City of Okeechobee, Florida did not meet any of the conditions described in Section
218.503(1), Florida Statutes.
Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual
financial report for the City of Okeechobee, Florida for the fiscal year ended September 30, 2009, filed
with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is
in agreement with the annual financial audit report for the fiscal year ended September 30, 2009. In
connection with our audit, we determined that these two reports were in agreement.
Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City of Okeechobee,
Florida'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.
50
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
Page Three
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited.
Auditing standards generally accepted in the United States of America require us to indicate that this letter is
intended solely for the information and use of management, the Honorable Mayor and City Council and others
within the entity, and the Florida Auditor General, and is not intended to be and should not be used by anyone other
than these specified parties.
Hoyman Dobson
Melbourne, Florida
March 30, 2010
asey\-
51
The City of Okeechobee, Florida has complied with Section 163.31801 of Florida Statues
regarding accounting and reporting of impact fee collections and expenditures for Fiscal
Year 2009.
Brian Wh
City Ad
City of Okeechobee
AFFIDAVIT OF IMPACT FEE COMPLIANCE
tor
India Riedel
Finance Department
55 S.E. Third Avenue Okeechobee, Florida 34974 -2903 (863) 763 -3372 Fax: (863) 763 -1686
ED
a piteapu
Significant Audit Findings
Communication with Those Charged with Governance
To the Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
We have audited the financial statements of the governmental activities, the major fund, and the aggregate
remaining fund infonnation of the City of Okeechobee, Florida (the "City for the year ended September
30, 2009. Professional standards require that we provide you with information about our responsibilities
under generally accepted auditing standards and Government Auditing Standards, as well as certain
information related to the planned scope and timing of our audit. We have communicated such
information in our letter to you dated November 23, 2009. Professional standards also require that we
communicate to you the following information related to our audit.
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City 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 fiscal
year 2009. We noted no transactions entered into by the governmental unit 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 most sensitive estimates affecting the financial statements were:
Management's estimate of useful lives of capital assets is based on historical lives of
similar assets and market prices. We evaluated the key factors and assumptions used to
develop the estimated useful lives in determining that they are reasonable in relation to
the financial statements taken as a whole.
Management's estimate of the City's liability for its self insured worker's compensation
claim is based on management's understanding of the circumstances surrounding the
claim, and information provided by the City's third party claims administrator. We
evaluated the key factors and assumptions used to develop the estimated liability in
ci
determining that they are reasonable in relation to the financial statements taken as a
whole.
215 Baytree Drive
Melbourne, FL 32940 p: (321) 255.0088 f: (321) 259.8648
4767 New Broad Street Orlando, FL 32814 p: (407) 422.1681 f: (407) 514.2604
www.hoyman.com
Y7
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
Page Two
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most sensitive disclosure affecting the financial statements was:
The disclosure of pension trust funds in Note S.B. to the financial statements due to the
reported performance of plan assets.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. hl addition, none of the misstatements detected as a
result of audit procedures and corrected by management were material, either individually or in the
aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditors' report. We are pleased to report that no such
disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated March 30, 2010.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves
application of an accounting principle to the governmental unit's financial statements or a determination
of the type of auditors' opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
C./ C y xi Ddalt,
The Honorable Mayor and Members of the City Council
of the City of Okeechobee, Florida
Page Three
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the governmental unit's auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses were
not a condition to our retention.
This information is intended solely for the use of the City Council and management of the City of
Okeechobee, Florida and is not intended to be and should not be used by anyone other than these
specified parties.
Very truly yours,
Yid
Hoyman Dobson
Melbourne, Florida
March 30, 2010
City of Okeechobee
April 27, 2010
Department of Community Affairs
Office of Inspector General
2555 Shumard Oak Blvd
Tallahassee, FL 32399 -2100
RE: Audit Report — City of Okeechobee
10/01/2008-09/30/2009 Fiscal Year
Please find enclosed Audit Certification regarding the 2009 fiscal year
If you need additional information please give me a call at, (863) 763 -3372, ext 223.
Respectfully submitted,
India Riedel
Finance Department
Enclosure
4
55 S.E. Third Avenue • Okeechobee. Florida 34974 -2903 • (863) 763 -3372 • Fax: (863) 763 -1686
Audit Certification
TO: Florida Small Cities Community Development Block Grant (CDBG), Disaster
Recovery and Neighborhood Stabilization Programs
RE: Annual Financial Audit for the 2009 Fiscal Year, which ended September 30, 2009
For the most recent federal fiscal year which ended September 30, 2009, the audit threshold as set out by
federal regulation (Office of Management and Budget Circular A -133) and the Florida Single Audit Act
(pursuant to the authority provided in Section 215.97(2)(a), Florida Statutes) for nonstate entities is
$500,000. All local governments with an open or administratively closed CDBG, Disaster Recovery or
Neighborhood Stabilization contract are required to provide the Department of Community Affairs with an
annual financial audit if the local government has expended $500,000 or more in federal funds. The audit
is due annually by June 30. (However, if the audit can be submitted sooner, p /ease do so.)
I HEREBY CERTIFY THAT:
1. The City of Okeechobee is not required to submit
(Name of local government)
an Annual Financial Audit because the audit threshold of $500,000 was not met.
2. The is required to submit
(Name of local government)
an Annual Financial Audit, but did not, or cannot, meet the deadline date of June 30 due to the
following:
SIGNE
DATE:
Brian Whitehall, City Administr or and Financial Officer
(re7(
/a
TYPED NAME AND TITLE
CERTIFICATION MUST BE MADE BY THE CHIEF ELECTED OFFICIAL OR FINANCIAL OFFICER
THIS FORM MAY BE FAXED TO THE FLORIDA SMALL CITIES CDBG PROGRAM
(ATTENTION JUDY PEACOCK) AT 850/922 -5609
City of Okeechobee
April 27, 2010
Department of Financial Services
Bureau of Accounting
200 E. Gaines Street
Tallahassee, FL 32399 -0354
RE: Audit Report — City of Okeechobee
10/01/2008-09/30/2009 Fiscal Year
Please find enclosed 1 completed copy of the 2008 -2009 Audit Report of the City of
Okeechobee. Also enclosed is the checklist as needed. Thank you for your immediate
assistance and review of the requirements of our municipality.
If you need additional information or additional copies of the audit please give me a call
at, (863) 763 -3372, ext 223.
Respectfully submitted,
India Riedel
Finance Department
Enclosure
55 S.E. Third Avenue • Okeechobee, Florida 34974 -2903 • (863) 763 -3372 • Fax: (863) 763 -1686
DEPARTMENT OF FINANCIAL
SERVICES
STATE OF FLORIDA ANNUAL FINANCIAL REPORT OF UNITS OF
LOCAL GOVERNMENT (SECTION 218.32, FLORIDA STATUTES)
PREPARER'S CHECKLIST
X
N/A
X
Yes
Yes
Yes
X
X
Verify that the name on the certification page is correct for your unit.
If you xvill be using reporting forms generated by your own computer system.
rather than filing electronically, check to sec that they mirror our forms. (Please
note, there have been changes to the names of various funds.)
Report in whole dollars.
Are revenues and expenditures /expenses reported by fund group, i.e., General
Fund, Special Revenue Fund, Debt Service Fund, Capital Project Fund,
Permanent Fund, Enterprise Fund, Internal Service Fund, Pension Fund and Trust
Fund? Use account codes only once; across fund columns where applicable.
Are all like funds rolled up and reported as one fund group?
Are all account codes consistent with those listed in the Uniform Accounting
System Manual? ONLY ACCOUNT CODES THAT APPEAR ON THE
ENCLOSED LIST CAN BE USED. PLEASE CALL IF ADDITIONAL
ACCOUNT NUMBERS ARE NEEDED.
Check to sce that Revenue codes contain 6 digits, none of which is an X. For
example.. 313.XXX should he reported as 313.100. 313.200, 313.300, etc. Codes
with X's cannot be entered electronically or entered manually into our database
and forms containing these codes will be returned as unacceptable. (Refer to the
enclosed list, or the Uniform Accounting System Manual for valid codes.)
Check to see that Expenditure /Expense codes contain 5 digits. 2 of which
represent object codes (10, 30, 60, 70. 80, 90) such as 513.10. 513.30, 513.60. etc.
Do not list sub - objects such as 513.11, 513.21, 513.23, etc. when filing
manually; electronic filing will not accept incorrect account codes. All
expenditures /expenses are to he rolled up to the 10 (11-29). 30 (31 -59), 60 (61-
67), 70 (71 -73). 80 (81 -83). 90 (91 -99) levels. Manual reporting forms which
present sub - object detail will he returned as unacceptable. (Refer to the enclosed
list, or the Uniform Accounting System manual for valid codes.)
X If you are reporting a discretely presented component unit, record the revenues
and expenditures under the COMPONENT UNIT column as you would for any
other fund group.
N/A if you are reporting a dependent district, make sure to complete Component Unit
Reporting — Part 1 and Component Unit Reporting Part 2 forms manually. They
should be submitted along with the certification page. if filing electronically, or
with the annual report if filing manually. Add any units you may have that are
not listed. Also, please list any independent special district which is reported
as a component unit by your agency.
Yes
If filing electronically, has the certification page been completed and signed by
the Chairman of the Board and the Chief Financial Officer and mailed?
Yes
X
If filing manually, have all applicable parts of the form been completed and has
the certification page been completed and signed by the Chairman of the Board
and the Chief Financial Officer and mailed?
Submit one (1) copy of the audit report, (management letter version), with
the completed certification page, and any component unit reports, if filing
electronically, or with all completed forms if filing manually.
Annual Financial Report must he filed electronically, or postmarked by April 30,
2005 if an audit is not required in accordance with Section 218.39 F.S., or within
45 days after the completion of the audit report, but no later than 12 months after
the end of the fiscal year. There are no provisions in the statutes for any
extensions for filing the Annual Financial Report. Nonfilers are subject to having
state revenue sharing funds withheld until reporting deficiencies are remedied.
Note mailing address for the annual report:
Department of Financial Services
Bureau of Accounting
200 E. Gaines Street
Tallahassee, FL 32399 -0354
Do not hesitate to contact this office if assistance or clarification is needed
regarding reporting requirements. Our telephone and fax numbers are as follows:
Otis Smith Otis.Smith(lldfs.corn (850) 413 -5471 Suncom 293 -5471
Pinky Mathis Pinky.Mathis!u`,fldfs.com (850) 413 -5501 Suncom 293 -5501
FAX (850) 413 -5548 Suncom 293 -5548
C. \ word \A Fit clieckh xi ti>r I Y 2007 -04 \pm
City of Okeechobee
April 27, 2010
Office of Criminal Justice Grants
Florida Department of Law Enforcement
2331 Philips Road
Tallahassee, FL 32308
RE: Audit Report — City of Okeechobee
10/01/2008- 09/30/2009 Fiscal Year
Dear Mr. Clayton Wilder:
Please find enclosed one (1) completed copy of the 2008 -2009 Audit Report of the City
of Okeechobee. Thank you for your immediate assistance and review of the requirements
of our municipality.
Also enclosed is certification of audit exemption for the same year.
If you need additional information or additional copies of the audit please give me a call
at, (863) 763 -3372, ext 223.
India Riedel
Finance Department
Enclosure
55 S.E. Third Avenue • Okeechobee, Florida 34974 -2903 • (863) 763 -3372 • Fax: (863) 763 -1686
March 111h, 2010
City of Okeechobee
Florida Department of
Law Enforcement
Office of Criminal Justice Grants
Post Office Box 1489
Tallahassee, FL 32302 -1489
GRANT(S): 2009 - JAGD - OKEE -2TB -204
2009 -SB -B9 -0412
Please find enclosed verification statement of OMB Circular A -133 audit exemption for
our fiscal year 2008 -2009.
If further information is required please give me a call at (863) 763 -3372 ext 223.
/ /
India Rieder
Finance
City of Okeechobee
Enclosure
55 S.F. Third Avenue, Okeechobee, Florida 34974 -2903 (863) 763 -3372; Fax (863) 763 -1666
FILE
Florida Department of
Law Enforcement
Gerald M. Bailey
Commissioner
Office of Criminal Justice Grants
Post Office Box 1489
Tallahassee, Florida 32302 -1489
(850) 617-1250
www.fdle_state.fl.us
Charlie Crist, Governor
Bill McCollum, Attorney General
Alex ink, Chief Financial Officer
Charles H. Bronson, Commissioner of Agriculture
Certification of Audit Exemption
Complete the following information for each audit period for which your agency wishes to
declare exemption from the Annual Audit Report Requirement. This form must be signed by
either the Subgrantee's Authorizing Official or the Chief Financial Officer as specified by the
grant agreement and submitted to the Florida Department of Law Enforcement.
Subgrant Recipient: City of Okeechobee
County:
Grant Number(s):
Okeechobee County
2009 - JAGD - OKEE -2 -TB -204
2009 -SB -B9 -0412
I, the undersigned official, hereby declare that the above listed unit of local government has
expended Tess than $500,000 in Federal funds during the below specified fiscal year:
Subgrantee's Fiscal Year (Enter dates, typically 10 /01 /xxxx to 09 /30 /xxxx.)
From: October 1, 2008 To: _September 30, 2009
Brian Whitehall
Date
Typed name
City Administrator and Chief Financial Officer
Typed title
Service • Integrity • Respect • Quality
City of Okeechobee
April 27, 2010
Auditor General's Office
Local Government Audits /342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, FL 32399 -1450
RE: Audit Report — City of Okeechobee
10/01/2008- 09/30/2009 Fiscal Year
Please find enclosed 2 completed copies of the 2008 -2009 Audit Report of the City of
Okeechobee. Also enclosed is the checklist as needed. Thank you for your immediate
assistance and review of the requirements of our municipality.
Also, I have forwarded a PDF of the audit financials along with the check list
If you need additional information or additional copies of the audit please give me a call
at, (863) 763 -3372, ext 223.
Respectfully submitted,
India Riedel
Finance Department
Enclosure
55 S.E. Third Avenue • Okeeclwhec, Florida 34974 2903 • (863) 763 -3372 • Fax (863) 763 -1686
AUDITOR GENERAL
LOCAL GOVERNMENTAL ENTITY AUDIT REPORT SUBMITTAL CHECKLIST
(SECTION 218.39, FLORIDA STATUTES)
Local Governmental Entity Name City of Okeechobee
Contact Person Name and Title India Riedel, Account Supervisor
Contact Person Mailing Address 55 SE 3rd Avenue, Okeechobee, FL. 34974
(863) 763 -3372 ext. 223
Contact Person Phone Number
Contact Person Email Address
Fiscal Year Audited
iriedel @cityofokeechobee.com
2009
Date Auditor Delivered Audit Report to Governing Body March 30, 2S99� f_
Does the audit report include the following items required by Auditor General Rule 10.557(3):
Required for
Yes
Yes
Yes
Yes
Yes
Yes
**
unicipalities, special districts, the county as a whole, and county agencies
The financial statements described in Auditor General Rules 10.556(3) and (4), as
applicable, together with related notes to financial statements?
Required supplementary information (RSI) such as the Management's Discussion and
Analysis (not required for county agencies). or the Budgetary Comparison Schedule
(required as RS1 if not presented as part of the financial statements)?
The auditor's report on the financial statements?
The auditor's report on compliance and internal control?
The management letter defined in Auditor General Rule 10.554(1)(i)?
The written statement of explanation or rebuttal. including corrective action to be taken,
required by Auditor General Rule 10.558(1)?
Pursuant to Section 218.39(2), Florida Statutes, an audit of the board of county commissioners is not
required. However, if the county report includes an audit of the board of county commissioners, it
should include the items required by Auditor General Rule 10.557(3).
Required for municipalities, special districts, and the county as a whole
Yes
Yes
Any auditor's reports and related financial information required pursuant to the Federal
Single Audit Act Amendments of 1996, OMB Circular A -133, or other applicable Federal
law?
Any auditor's reports and related financial information required pursuant to the Florida
Single Audit Act (see Auditor General Rule 10.557(3)(d))?
In addition to the above, have the following requirements been complied with:
Auditor General Rules Effective September 30, 2009
Page 1 of 2
Yes
Yes
Yes
n/a
Are all of the above elements of the audit report included in a single document as
required by Auditor General Rule 10.557(3)?
Are two paper copies and one electronic copy of the audit report being submitted as
required by Auditor General Rule 10.558(3)?
Is the audit report being submitted within 45 days after receipt of the audit report from
the auditor, but no later than 12 months after the end of the fiscal year? NOTE: There
are no provisions in the statutes for any extensions for filing the audit report.
If the audit report is for a county or municipality, and a dependent special district was
audited as part of the county or municipality audit, did the notes to financial statements
clearly indicate that the special district had been included as part of the county's or
municipality's reporting entity? NOTE: Pursuant to Section 218.39(3), Florida Statutes,
an independent special district may not be audited as part of a county or municipality
audit. When a dependent special district is audited as part of the county or municipality
audit, the county or municipality notes to financial statements should clearly disclose that
the special district is a component unit included within the county's or municipality's
reporting entity.
This checklist should accompany the audit report. It is suggested that you retain a copy of the
checklist for your files. Do not hesitate to contact this office if assistance or clarification is needed
regarding reporting requirements. Our telephone and fax numbers, and electronic addresses, are as
follows:
Address —
Auditor General
Local Government Audits /342
Claude Pepper Building, Room 401
1 1 1 West Madison Street
Tallahassee, FL 32399 -1450
Telephone: (850) 487 -9031
Fax: (850) 487 -4403
Email Address: flaudgen localgovt(d)aud.state.fl.us
Web site Address: www.no tlorida.com /audgen
Auditor General Rules Effective September 30, 2009
Page 2 of 2
March 11 to 2010
City of Okeechobee
Florida Department of Transportation
605 Suwannee Street, MS -17
Tallahassee, F:L 32399 -0450
GRANT# PT- 09 -12 -09
Please find enclosed verification statement of OMB Circular A -133 audit exemption for
our fiscal year 2008 -2009.
1 was unable to locate an FDOT form for submittal, therefore, completed my own based
on other agency's forms in my possession.
If further information is required please give me a call at (863) 763 -3372 ext 223.
India Riedel
Finance
City of Okeechobee
Enclosure
S.E. Third Avenue, OVeenhot e, Florida 34974-- 2973 (863) 763-337 • Fax. (8630 763-1684
City of Okeechobee
March 11th, 2010
Florida Department of Transportation
605 Suwannee Street, MS -17
Tallahassee, FL 32399 -0450
Certification of Audit Exemption
State agency: Florida Department of Transportation
Subgrant Recipient: City of Okeechobee
County: Okeechobee County
Grant Number: PT- 09 -12 -09
1, the undersigned official, hereby declare that the above listed unit of local government
has expended less than $500,000 in Federal funds during the below specified fiscal year:
Suhgrantee's Fiscal year
From: October 1, 2008 lo: September 30, 2009
Brian Whitehall
Date
Typed name
City Administrator and Chief Financial Officer
Typed title
55 S.E. Third Avenue • Okeechobee, Florida 34974 -2903 • (863) 763 -3372 • Fax: (863) 763 -1686
City of Okeechobee
55 SE 3rd Avenue
Okeechobee, FL 34974
Phone #863- 763 -3372 / Fax #863 - 763- 1686EXT 223
Fax Transmittal
DATE: 03/11/2010
NUMBER OF PAGES INCLUDING COVER SHEET:
TO: Florida Dept. of Environmental Protection
ATT: Debbie Skelton
FAX # 850- 245 -2411
FROM: India Riedel, Finance Phn# 863- 763 -3372 ext 223
SUBJECT: Please see following Certification of Audit exemption for our Fiscal
year 2008 -2009.
Any questions please give me a call.
If all pages are not received please call at the above telephone number. The information
contained in this message may be privileged and confidential and protected from disclosure. If the reader of
this message is not the intended recipient, or an employee or agent responsible for delivering this message
to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this
communication is strictly prohibited. If you have received this communication in error, please notify us
immediately by replying to the message and deleting it from your computer.
CERTIFICATION OF APPLICABILITY TO SINGLE AUDIT ACT REPORTING
Brian Whitehall, City Administrator
City of Okeechobee
March 3, 2010
SINGLE AUDIT ACT
Grantee Fiscal Year Period: FROM: October 1, 2008 TO: September 30, 2009
Total State Financial Assistance Expended during Grantee's most recently completed Fiscal Year:
$ 37x875_
Total Federal Financial Assistance Expended during Grantee's most recently completed Fiscal Year:
$ 16,078.
Please identify only those grants to be included in the Single Audit that are provided by the
Department of Environmental Protection.
CSFA/CFDA Number DEP Grant Agreement Number
37.039 LP6847
CERTIFICATION STATEMENT:
I hereby certify that the above information is correct."
Brian Whitehall City Administrator and Chief Financial Officer
Print Name:
City of Okeechobee, Page 1 of 3
Position Title Date
March 3, 2010
Mr. Brian Whitehall
City Administrator
City of Okeechobee
55 Southeast 3rd Avenue
Okeechobee, Florida 34974
Florida Department of
Environmental Protection
Marjory Stoneman Douglas Building
3900 Commonwealth Boulevard
Tallahassee, Florida 32399 -3000
SUBJECT: Certification of Applicability to Single Audit Act Reporting
Dear Mr. Whitehall:
In an effort to document the applicability of Single Audit Act reporting requirements for
department grants, the Department of Environmental Protection is requiring all of its
Grantees to report its fiscal year expenditures for all State and Federal financial assistance. If
your audit for your fiscal year ending 2009 has not yet been completed and submitted to the
Department, the attached form must be completed and returned to the address listed above
no later than April 2, 2010. If it is later determined that the information submitted is not
correct, please submit a revised form no later than May 3, 2010.
Please provide the information requested for all sections of the attached Certification of
Applicability to Single Audit Act Reporting form (Florida and Federal) and sign /date the
Certification Statement provided. A list of "Frequently Asked Questions" as well as step by
step instructions on the completion of the attached form is provided for your convenience.
If you should have any questions regarding this request, please call me at (850) 245 -2361 or
email Debbie.skelton @dep.state.fl.us.
Sincerely,
HL tA.
Debbie Skelton
Grants Development and Review Manager
Attachments
Printed on recycled Paper
CERTIFICATION OF APPLICABILITY TO SINGLE AUDIT ACT REPORTING
FREQUENTLY ASKED QUESTIONS
Question: Can I fax the form to you?
Answer: Yes, you can fax the Certification form, the fax number is 850/245 -2411.
Question: How can I submit the form if our audit is not completed by the due date of this
letter?
Answer: You should be able to complete the form from the information in your accounting
system. This information is just to let our Office of the Inspector General know which
entities they should be getting a single audit from. If you are under the threshold you do not
have to submit a copy of your audit, only the Certification form.
Question: Do you only want what we received from DEP?
Answer: No, the Single Audit threshold amount is the TOTAL AMOUNT of funds that you
expended towards all state or federal grants that you receive. You should list those that are
specific to DEP on the form.
Question: How do I know what the CSFA /CFDA Number is?
Answer: These numbers should be identified in the grant agreement. If you cannot locate
them you should call your grant manager and ask them for the needed information. If it is a
grant funded by DEP, you may contact Debbie Skelton, DEP Grants Development and
Review Manager at (850) 245 -2371.
Question: Do I have to submit the completed form and a copy of my audit?
Answer: No, you do not have to submit your audit unless you are over the threshold of
$500,000. If you would prefer to submit your audit (CAFR) instead of the form, that is fine.
Question: Our CAFR will not be ready before your due date and we don't have the
information necessary to complete the certification. Can we get an extension?
Answer: Yes, just send us an Email letting us know when you will have your CAFR
completed and we will place the Email with your letter in our file so that you don't get a 2°d
notice before your CAFR is completed.
City of Okeechobee, Page 3 of 3
CITY OF OKEECHOBEE
Florida Department of Common
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