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Audit Report 09.30.1980 I ' CITY OF OKEECHOBEE, FLORIDA ' FINANCIAL STATEMENTS September 30, 1980 I I iMcALPIN CURTIS&ASSOCIATES.( RTIFIEU Iann.I('AcccrovrANIs 1 ' CITY OF OKEECHOBEE, FLORIDA CITY OFFICIALS ' September 30, 1980 i ' MAYOR - COUNCIL Mayor and President of Council Edward W. Douglas ' Councilman Oakland Chapman ' Councilman Donald L. Burk Councilman Lytle Raulerson ' Councilman J. H. Knight ADMINISTRATIVE City Clerk Bonnie S. Thomas City Attorney David Conlon Director of Public Works L. C. Fortner, Jr. Chief of Police Larry Mobley ' Chief of Fire Department Louis K. Tomey, II Building Inspector J. M. Westbrook I I r I I I MCALPIN CURTIS&ASSOCIATES.CERTIFIED PUBLIC .0 C.(1 A il.\TA\TS II CITY OF OKEECHOBEE, FLORIDA IIFINANCIAL STATEMENTS September 30, 1980 II TABLE OF CONTENTS I Page Accountants' Report 1 IIFinancial Section Combined Balance Sheet - All Fund Types and Account Groups 2 I Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Fund Types 4 I Combined Statement of Revenues, Expenditures and Changes . in Fund Balances - Budget and Actual - General and Special Revenue Fund Types 5 IICombined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances - All Proprietary Fund IITypes and Similar Trust Funds 6 Combined Statement of Changes in Financial Position - All Proprietary Fund Types and Similar Trust Funds 7 Notes to Financial Statements 8 IIOther Financial Information Accountants' Report On Other Financial Information 10 I Statement to Bondholders 11 Combining Balance Sheet - All Fiduciary Fund Types 12 Combining Statement of Revenues, Expenses and Changes I in Fund Balances - All Fiduciary Fund Types 13 Combining Statement of Changes in Financial Position - All Fiduciary Fund Types 14 II Schedule of General Fund Revenues - Budget and Actual 15 Schedule of Fund Revenues - Budget and Actual 16 Federal Revenue Sharing Fund I Debt Service Fund Schedule of General Fund Expenditures - Budget and Actual 17 Schedule of Fund Expenditures - Budget and Actual - 19 I General Fund - Other Financing Uses Federal Revenue Sharing Fund Debt Service Fund I Schedule of Changes in General Fixed Assets 20 Schedule of Changes in Reserve Accounts - Water and Sewer Fund 21 tStatistical Tables Schedule of Bond Principal and Interest to Maturity II General Obligation Bonds 22 1958 Water and Sewer Revenue Bonds 23 1972 Water and Sewer Revenue Bonds 24 ' Schedule of Insurance Coverage 25 Schedule of Assessed Values, Tax Levies and Rates - Last Ten Years 26 I Schedule of Revenues and Utility Customers - Last Ten Years 27 IIMCALPIN CURTIS&ASSOCIATE,CERTIFIED I'UIU rr A( IMCALPIN, CURTIS IRA M.W M.1'tx.Ik.C.P.A. 111 ORANGE AVENUE LYMAN U.CURTIS.C.P.A. & ASSOCIATES L.LEE THOMAS.C.P.A. P.O. BOX 3346 GERALD A.DtBARTOLOMIEO..IR..C.P.A. FORT PIERCE',FLORIDA 33450 I ROBERT W.SUMMERUAYS..IR.C.P.A CERTIFIED PUBLIC ACCOUNTANTS ROBERT k.LYONS.C.P.A. (305)461-6120 I 1 Honorable Mayor and City Council City of Okeechobee Okeechobee, Florida i We have examined the combined financial statements of the City of Okeechobee at September 30, 1980 and for the year then ended as listed in the financial section of the foregoing Table of Contents (pages 2-9 inclusive). Our examination was made in accordance with generally ac- cepted auditing standards and accordingly included such tests of the ac- counting records and such other auditing procedures as we considered necessary in the circumstances. The City does not maintain detailed records of the Water and Sewer Property or General Fixed Assets, nor is adequate control maintained over capital additions and retirements, particularly as with regard to items constructed by the City. We do not know, and it is impractical to ascertain, if the recorded cost of property and equipment in the Water and Sewer Fund and in the Statement of General Fixed Assets is a fair presentation of the cost of the City investment in Fixed Assets. In our opinion, except for the effect of the lack of records and con- trols on the assets and net income in the Water and Sewer Fund and assets in the Statement of General Fixed Assets, the aforementioned combined financial statements present fairly the financial position of the City ' of Okeechobee, Florida at September 30, 1980 and the results of its operations and the changes in financial position of the proprietary and trust fund types for the year then ended in conformity with gen- erally accepted accounting principles applied on a basis consistent with that of the preceding year. McAlpin, urtis & Associates Certified Public Accountants 11 December 2, 1980 I I - 1 - CITY OF OKEECHOBEE, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1980 Governmental Fund Types Federal Revenue Debt Assets General Sharing Service Cash $149,396 $16,327 $ 3,032 Certificates of deposit 400,000 124,133 Receivables (net of allowances for uncollectibles): Accounts Accrued interest 5,247 Due from other funds 143 Inventory 2,733 Restricted assets: Cash Certificates of deposit Land and improvements Buildings and improvements Furnishings and equipment Rolling stock Utility Plant in service Accumulated depreciation Amount available in Debt Service Fund Amount to be provided for retirement of long-term debt Total Assets $557,519 $16,327 $.127,165 See Notes to Financial Statements - 2 - MCALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS II I I IProprietary Fiduciary I Fund Types Fund Types Water Account Groups Totals General General (Memorandum Only) and Pension Fixed Long-Term September 30, ISewer Funds Assets Debt 1980 1979 $ 179,537 $ 41,397 $ 389,689 $ 227,225 I425,019 242,621 1,191 ,773 1,629,619 I 46,814 46,814 10,377 118,717 5,130 41 ,176 125 14,297 14,565 125 ., 2,733 3,400 27,654 27,654 27,672 I 80,167 80,167 80,167 $507,864 507,864 128,712 133,748 133,748 97,758 I 125,852 125,852 194,233 120,677 194,233 184,951 3,916,156 3,916,156 3,586,231 I (831,871) (831,871) 125,153 (733,967) $125,153 117,069 I259,847 259,847 282,931 $3,848,731 $298,315 $961 ,697 $385,000 $6,194,754 $5,912,463 I I I I I II II IIMCALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1980 Governmental Fund Types Federal Revenue Debt Liabilities and Fund Equity General Sharing Service Liabilities Accounts payable $ 28,247 Employee payroll deductions Contracts payable Water deposits Payable from restricted assets: Matured interest coupons Due to other funds Deferred revenues 9,895 Matured bonds and interest coupons $ 2,012 Revenue bonds payable (Note 2) General obligation bonds payable (Note 3) Total Liabilities 38,142 2,012 Fund Equity Investments in General Fixed Assets Contributed capital (Note 4) Retained earnings: Reserve for Revenue Bond Retire- ment (Note 5) Reserve for Depreciation Fund (Note 6) Unreserved Fund balances: Reserved for employees' retire- ment system Unreserved: Designated for Debt Service 125,153 Undesignated 519,377 $16,327 Total Fund Equity 519,377 16,327 125,153 Total Liabilities and Fund Equity $557,519 $16,327 $1.27,165 See Notes to Financial Statements - 3 - MCALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS • I I I I Proprietary Fiduciary I Fund Types Water Fund Types Account Groups Totals (Memo General General (Memorandum Only) and Pension Fixed Long-Term September 30, ISewer Funds Assets Debt 1980 1979 I $ 34,729 $ 62,976 $ 53,050 6,190 42,494 42,494 53,419 I77,425 77,425 73,115 1 ,080 1,080 1,148 I 125 $ 14,440 14,565 125 9,895 10,544 2,012 2,012 I531 ,000 531,000 553,000 $385,000 385,000 400,000 I686,853 14,440 385,000 1,126,447 1,152,603 I $961 ,697 961 ,697 532,098 1 ,958,521 1,958,521 1,651,275 I74,849 74,849 74,978 1 31 ,767 31,767 31,767 1,096,741 1,096,741 1 ,031,943 I283,875 283,875 195,905 I 125,153 117,069 535,704 1,124,825 I3,161 ,878 283,875 961 ,697_ 5,068,307 4,759,860 I $3,848,731 $298,315 $961 ,697 $385,000 $6,194,754 $5,912,463 I I I IMCALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUND TYPES Year Ended September 30, 1980 Federal Revenue Debt General Sharing Service Revenues Taxes $ 390,487 $ 40,000 Licenses and permits 34,492 Intergovernmental revenues 250,985 $ 86,544 Charges for services 6,189 Fines and forfeitures 19,827 Miscellaneous 68,714 11,109 Total Revenues 770,694 86,544 51,109 Expenditures General government 640,021 Public safety 423,266 Physical environment 15,213 Transportation 206,533 Human services 13,533 Parks and recreation 7,041 Debt Service: Principal retirement 15,000 Interest and fiscal charges 28,025 Total Expenditures 1 ,305,607 43,025 Excess (Deficiency) of Revenues Over Expenditures (534,913) 86,544 8,084 Other Financing Sources and (Uses) Operating transfers - in 90,122 Operating transfers - out (5,863) (225,011) Total Other Financing Sources and (Uses) 84,259 (225,011) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses (450,654) (138,467) 8,084 Fund Balance - October 1 , 1979 970,031 154,794 117,069 Fund Balance - September 30, 1980 $ 519,377 .$ 16,327 $125,153 See Notes to Financial Statements - 4 - McAI PIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS ox Totals (Memorandum Only) September 30, 1 980 1979 $ 430,487 $ 397,048 ' 34,492 31,407 337,529 350,425 6,189 1,049 ' 19,827 18,125 79,823 96,818 908,347 894,872 640,021 209,294 423,266 403,259 15,213 12,460 206,533 163,970 13,533 11 ,924 7,041 15,000 15,000 28,025 29,400 1 ,348,632 845,307 (440,285) 49,565 90,122 84,481 (230,874) (128,022) (140,752) (43,541) I (581,037) 6,024 1 ,241 ,894 1 ,235,870 $ 660,857 $1 ,241 ,894 MCALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES Year Ended September 30, 1980 General Fund Over (Under) Budget Actual Budget Revenues Taxes $ 356,915 $ 390,487 $ 33,572 Licenses and permits 29,800 35,161 5,361 Intergovernmental revenues 243,450 250,985 7,535 Charges for services 5,620 5,520 (100) Fines and forfeitures 18,700 19,827 1 ,127 Miscellaneous 40,748 68,714 27,966 Total Revenues 695,233 770,694 75,461 Expenditures General government 662,607 640,021 • (22,586) Public safety 426,130 423,266 (2,864) Physical environment 15,338 15,213 (125) Transportation 239,990 206,533 (33,457) Human services 14,940 13,533 (1 ,407) Parks and recreation 6,050 7,041 991 Contingencies 9,500 -0- Total Expenditures 1,374,555 1,305,607 -768,948) Excess (Deficiency) of Revenues Over Expenditures (679,322) (534,913) (144,409) Other Financing Sources and (Uses) Operating transfers - in 103,715 90,122 13,593 Operating transfers - out (5,865) (5,863) 2 Total Other Financing . Sources and (Uses) 97,850 84,259 13,591 Excess (Deficiency) of Revenues and Other Sources Over Expen- ditures and Other Uses (581 ,472) (450,654) (130,818) Fund Balance - October 1, 1979 970,031 970,031 -0- Fund Balance - September 30, 1980 $ 388,559 $ 519,377 $(130,818) See Notes to Financial Statements - 5 - MCALPIN CURTIS&ASSOCIATES,CERTIFIED.PUBLIC ACCOUNTANTS HI II II II 1 IFederal Revenue Sharing .Fund Totals Over (Memorandum Only) Over I (Under) (Under) Budget Actual Budget Budget Actual Budget I $ 356,915 $ 390,487 $ 33,572 29,800 35,161 5,361 $ 83,810 $ 86,544 $ 2,734 327,260 337,529 10,269 t 5,620 5,520 (100) 1 18,700 19,827 1,127 3,000 (3,000) 43,748 68,714 24,966 I86,810 86,544 (266) 782,043 857,238 75,195 I 662,607 640,021 (22,586) 426,130 423,266 (2,864) 15,338 ' 15,213 (125) II 239,990 206,533 (33,457) 14,940 13,533 (1,407) 6,050 7,041 991 9,500 -0- (9,500) 1,374,555 1,305,607 (68,948) II86,810 86,544 (266) (592,512) (448,369) (144,143) II103,715 90,122 (13,593) (238,604) (225,011) (13,593) (244,469) (230,874) (13,595) I (238,604) (225,011) (13,593) (140,754) (140,752) (2) II (151 ,794) (138,467) 13,327 (733,266) (589,121) (144,145) I 154,794 154,794 -0- 1,124,825 1,124,825 -0- ' $ 3,000 $ 16,327 $ 13,327 $ 391 ,559 $ 535,704 $(144,145) II I II IIMCALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS IICITY OF OKEECHOBEE, FLORIDA I COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES I ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS Year Ended September 30, 1980 I Proprietary Fiduciary Fund Type Fund Type Totals Water and Pension (Memorandum Only) I Operating Revenues Sewer Fund Funds 1980 1979 Charges for services $ 629,006 $ 629,006 $ 582,973 Interest and dividends $ 22,731 22,731 10,720 I Contributions 77,825 77,825 63,626 Contributions transferred 13,927 13,927 Hydrant Rental 23,280 23,280 22,440 ITotal Operating Revenues 652,286 114,483 766,769 679,759 Operating Expenses I Salaries and wages 193,340 193,340 168,796 Payroll taxes 13,769 13,769 11,426 Group insurance 8,209 2,787 10,996 7,789 I Chemicals 89,325 89,325 66,213 Materials and supplies 57,773 57,773 37,537 Truck expense 14,912 14,912 10,570 I Electricity 59,443 59,443 48,725 General insurance 12,583 12,583 14,072 Repairs 33,496 33,496 20,033 I Office expense 7,181 7,181 7,195 Legal and audit 13,297 13,297 6,617 Engineering fees 5,411 5,411 24,825 I Pension plan contribution 9,964 9,964 10,500 Contributions transferred 13,927 13,927 Telephone 1,530 1,530 1 ,529 I Miscellaneous 5,145 5,145 5,266 Depreciation 97,904 97,904 89,655 Refunds on terminations 8,149 8,149 16,867 I Benefits paid on surrender of insurance policies 2,532 Actuarial fees 1,650 1,650 1,810 ITotal Operating Expenses 623,282 26,513 649,795 551,957 Operating Income 29,004 87,970 116,974 127,802 I Non-Operating Revenues (Expenses) Interest revenue 53,657 53,657 33,288 Miscellaneous 2,935 2,935 5,557 I Interest expense (26,790) (26,790) (27,760) Total Non-Operating Revenues (Expenses) 29,802 29,802 11 ,085 IIncome Before Operating Transfers 58,806 146,776 IIOperating Transfers In 5,863 5,863 Net Income 64,669 87,970 152,639 138,887 II Retained Earnings/Fund Balance - October 1 , 1979 1,138,688 195,905 1 ,334,593 1,195,706 II Retained Earnings/Fund Balance - September 30, 1980 $1 ,203,357 $283,875__ $1 ,487,232 $1,334,593 See Notes to Financial Statements II - 6 - MCALPIN CURTIS&ASSOCIATES.CERTIFIED I'M I('AC C()UsTANTS IICITY OF OKEECHOBEE, FLORIDA ICOMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS IIYear Ended September 30, 1980 IIProprietary Fiduciary II Fund Type Fund Type Totals _ Water and Pension (Memorandum Only) Sewer Fund Funds 1980 1979 I Sources of Working Capital Operations: Net income $ 64,669 $87,970 $152,639 $138,887 11 Item not requiring working capital - depreciation 97,904 97,904 89,655 Working Capital Provided I By Operations 162,573 87,970 250,543 228,542 Contributed capital 307,246 307,246 265,607 Increase (Decrease) in liabilities II payable from restricted assets (68) (68) 1,058 Total Sources of Working Capital 469,751 87,970 557,721 495,207 I Uses of Working Capital Additions to utility plant 329,925 329,925 496,948 Increase (Decrease) in restricted I assets (18) 28,000 (18) 762 Payments on long-term debt 000 28,000 34,300 Payments on contract _ 14,097 IITotal Uses of Working Capital 357,907 357,907 546,107 Net Increase (Decrease) in 11 Working Capital $111 ,844 $87,970 $199,814 $(50,900) Elements of Net Increase (Decrease) II in Working Capital Cash $ 63,699 $ 5,507 .$ 69,206 $(90,356) Certificates of deposit 134,724 82,606 217,330 30,712 II Due from other funds 14,297 14,297 -0- Cash surrender value of life insurance (15,884) l Receivables (74,460) (74,460) 9,198 Accounts payable (14,625) (14,625) (8,805) Due to other funds (14,440) (14,440) -0- II Employee payroll deductions 1 ,891 1,891 (66) Contracts payable 10,925 10,925 29,563 Current portion of long-term debt (6,000) (6,000) (13,300) I Water deposits Escrow deposits (4,310) (4,310) (3,232) 11,270 I Net Increase (Decrease) in Working Capital $111 ,844 $87,970 $199,814 $(50,900) IISee Notes to Financial Statements I7 -11 MCALPIN CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOUNTANTS IICITY OF OKEECHOBEE, FLORIDA INOTES TO FINANCIAL STATEMENTS September 30, 1980 INote 1 - Significant Accounting Policies Generally accepted accounting principles applicable to local governmental units I have been promulgated by the Municipal Finance Officers Association's National Committee on Governmental Accounting and the American Institute of Certified Public Accountants' Committee on Governmental Accounting and Auditing. The accounting I policies of the City of Okeechobee conform to these generally accepted accounting principles. I Basis of Accounting - The modified accrual basis of accounting is followed for all governmental funds. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become susceptible to accrual and I expenditures are recognized in the accounting period in which the liability is in- curred. Proprietary and fiduciary funds follow the accrual basis of accounting. Investments - Investments in certificates of deposit are stated at cost. IGeneral Fixed Assets - General fixed assets are recorded as expenditures in the General Fund at the time of purchase and capitalized at cost in the general fixed I asset group of accounts. Utility Plant - Additions to Utility Plant are stated at cost. Depreciation is computed on a composite annual rate of 2-1/2 percent. INote 2 - Revenue Bonds Payable The 1958 Water and Sewer Revenue Bonds are secured by a pledge of net revenues of the I Water and Sewer System and the utility taxes. The bonds bear interest at the rate of 4-1/2 percent and are due in annual principal installments ranging from $16,000 to $23,000 with the final payment due in 1988. II The 1972 Water and Sewer Revenue Bonds are secured by a pledge of net revenues of the Water and Sewer System and cigarette taxes. The bonds bear interest at the rate of I 5 percent and are due in annual principal installments ranging from $5,000 to $24,000 with the final payment due in 2012. • I Note 3 - General Obligation Bonds Payable The general obligation bonds are secured by the full faith and credit of the City. The bonds are being retired by a levy of ad valorem taxes. The bonds bear interest I at rates varying between 6.75 percent to 7.5 percent and are due in annual principal installments ranging from $15,000 to $35,000 with the final payment due in 1996. I Note 4 - Contributed Capital The source and additions to contributed capital are as follows: I Source Balance Balance October 1, 1979 Additions September 30, 1980 I Connection fees $ 167,838 $ 15,650 $ 183,488 Developers 150,238 141 ,323 291 ,561 Federal grant 71 ,160 71,160 I Local Public Works Grant 402,356 15,384 417,740 Federal Revenue Sharing Funds 484,683 134,889 619,572 General Fund 100,000 100,000 I Okeechobee Beach Water Association 275,000 275,000 Total $1,651 ,275 $307,246 $1 ,958,521 I - 8 - IIMCALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA iNOTES TO FINANCIAL STATEMENTS (CONTINUED) September 30, 1980 Note 5 - Revenue Bond Reserve and Retirement Funds The 1958 and 1972 Water and Sewer Revenue Bond Ordinances require, among other things, 11 deposits on a monthly basis, of amounts necessary to provide for semi-annual interest and annual principal requirements. In addition, the 1958 Revenue Bond Ordinance re- quires a reserve equal to the largest annual bond principal and interest payment while the 1972 Revenue Bond Ordinance requires a reserve of $23,400. At September 30, 1980, the amounts required and the amounts on deposit are as follows: 1958 Revenue 1972 Revenue Bonds Bonds Maximum reserve $24,975 $23,400 ' Deposits for bond principal and interest requirements 6,244 17,850 Matured interest coupons 1,080 Balance of construction funds required to be deposited in Sinking Fund 2,380 Reserve Balance - September 30, 1980 32,299 43,630 Due to Revenue Fund 125 Cash Balance - September 30, 1980 $32,424 $43,630 Note 6 - Depreciation Fund The 1958 Water and Sewer Revenue Bond Ordinance requires that a Depreciation Fund of $25,000 be maintained. The Fund may be used, with the approval of the City Council, to pay for capital additions or unforeseen emergencies. At September 30, 1980, the Fund was $6,767 in excess of requirements. Note 7 - Pensions The City has three pension plans, which cover substantially all employees except the City Council, Mayor, and City Attorney, The total pension expense for the year 1980 was $22,987. The actuarially computed value of vested benefits for all plans as of January 1 , 1980 was $49,784. Note 8 - Litigation The City is currently engaged in complex litigation, the exact contingencies of which cannot be ascertained at this time. In the case known as Brown vs the City of Okeechobee, which was filed as a civil rights class action in the federal courts, the plaintiffs are seeking in addition to injunctive relief, the payment of $740,000. In the case of the City vs La Grow Irrigation, the City is suing the contractor and engineer for breach of contract in construction of a water holding tank and the City is refusing to pay the last draw on the contract of $60,000. The contractor has countersued for damages. II I McALPIN CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOUNTANT., I I MCALPIN, CURTIS IRA M N II.CURTIS, (•PA 111 ORANGE AVENUE Ll D1A\B.cuen�,c..P A P.O. BOX 3346 L.i.EE TI IOMAS.C.P.A & ASSOCIATES GERAALD A.DiBARTOLOMEO.JR..C.P.A. FORT PIEKCE,FLORIDA 33450 IROBERT W.SUMMERIIAN'S.JR..C.P.A. CERTIFIED PUBLIC ACCOUNTANTS ROBERT K.LYONS.C.Y.A. (305)461-6120 I I I I IHonorable Mayor and City Council City of Okeechobee IOkeechobee, Florida IOur examination of the combined financial statements of the City of Okeechobee, Florida was made primarily for the purpose of formulating I an opinion on the combined financial statements taken as a whole. The information presented on Pages 11 through 21 inclusive, although not considered necessary for a fair presentation of financial position, I results of operations, and changes in financial position in conformity with generally accepted accounting principles, is presented for supple- mentary analysis purposes. This information has been subjected to the I audit procedures applied in our examination of the combined financial statements and is, in our opinion, fairly stated in all material re- spects in relation to the basic combined financial statements taken as Ia whole. McAlpin, eurtis & Associates ICertified Public Accountants December 2, 1980 I I I I I - 10 - I I IMcALPIN, CURTIS IRA M MrALI'IN..IR.C.P.A. 111 ORANGE AVENUE LYMAN B.CURTIS.C.PA 111 BOX 3346 ASSOCIATES L.LEE THOMAS.C 1'.A GERALD A.DIBARTOLOMEO..JR..C.P.A. FORT PIERCE,FLORIDA 33450 ROBERT W.SUMMERIIAYS..JR..CPA 305)461-6120 CERTIFIED PUBLIC ACCOUNTANTS ROBERT R.LYONS.C.P.A. I II Honorable Mayor and City Council City of Okeechobee Okeechobee, Florida I I We have examined the combined financial statements of the City of Okeechobee, Florida for the year ended September. 30, 1980. Our examina- tion was made in accordance with generally accepted auditing standards I and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. I The ordinance authorizing the issuance of the 1958 Water and Sewer Revenue Bonds requires that the audit contain an analysis regarding the adequacy of the acts of the City and its officers in carrying out Ithe requirements of the resolution. Among the requirements of the ordinance are the following: I (1) Money in the Sinking Fund in excess of the amount I of interest and principal coming due in the ensuing twelve months may be invested in direct obligations or guaranteed securities of the United States of America. II (2) All or any part of the Depreciation Fund may be invested in direct obligations or guaranteed t securities of the United States of America. I The investments made from the Sinking Fund and Depreciation Fund during the year were in certificates of deposit in the Okeechobee County Bank and First Savings and Loan Association of Okeechobee County. Nothing ' came to our attention that caused us to believe that any other require- ments of the 1958 Water and Sewer Revenue Bond Ordinance were not complied with. However, it should be noted that our examination was not directed IIprimarily toward obtaining knowledge of such noncompliance. • McAlpin, urtis & Associates ICertified Public Accountants December 2, 1980 I II - 11 - 1 I CITY OF OKEECHOBEE, FLORIDA COMBINING BALANCE SHEET ' ALL FIDUCIARY FUND TYPES Year Ended September 30, 1980 ' General Police Fire Employees Employees Employees Total Total ASSETS Pension Pension Pension 1980 1979 ' Cash $ 14,078 $ 22,627 $ 4,692 $ 41,397 $ 35,890 ' Certificates of deposit 94,820 93,858 53,943 242,621 160,015 Due from other funds 14,297 14,297 TOTAL ASSETS $123.195 $116,485 $ 58,635 $298,315 $195,905 ' LIABILITIES AND FUND EQUITY Liabilities ' Due to other funds $ 143 $ 14,297 $ 14,440 Fund Equity Fund balance 123,052 102,188 $ 58,635 283,875 $195,905 TOTAL LIABILITIES AND —FUND EQUITY $123.195 $116,485 $ 58.635 $298,315 $195,905 ' - 12 - IIMcALPIN CURTIS&ASSOCIATES,CERT1IIE1r PUBLIC ACCOUNTANTS II CITY OF OKEECHOBEE, FLORIDA IICOMBINING STATEMENT OF REVENUES, EXPENSES IAND CHANGES IN FUND BALANCES ALL FIDUCIARY FUND TYPES IIYear Ended September 30, 1980 IIGeneral Police Fire Employees Employees Employees Total Total IIPension Pension Pension 1980 1979 Operating Revenues I Municipal contributions Employee contributions $ 18,254 $ 4,295 $ 437 $ 22,986 $ 20,400 18,220 8,311 4,344 30,875 26,268 Contributions transferred 13,927 13,927 II Interest 8,596 9,278 4,857 22,731 10,720 State contributions 17,923 6,041 23,964 16,958 Total Operating Revenues 58,997 39,807 15,679 114,483 74,346 II Operating Expenses Actuarial fee 977 429 244 1,650 1,810 II Group insurance 1,674 920 1, 193 2,787 1,974 Refunds on termination 4,340 560 2,249 8,149 16,867 Contributions transferred 13,927 13,927 1 Benefits paid on surrender of insurance policies 2,532 Total Operating Expenses 6,991 16,836 2,686 26,513 23,183 IINet Income 52,006 22,971 12,993 87,970 51 ,163 IFund Balance - October 1 , 1979 71 ,046 79,217 45,642 195,905 144,742 Fund Balance - ' September 30, 1980 $123,052 $102,188 $ 58,635 $283,875 $195,905. II II II II II II - 13 - IIMcALPIN CURTIS&ASSOCIATES.ceimeIEU PUBLIC ACC UUNTA\TS CITY OF OKEECHOBEE, FLORIDA 11 COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ALL FIDUCIARY FUND TYPES Year Ended September 30, 1980 General Police Fire Employees Employees Employees Total Total Pension Pension Pension 1980 1979 Sources of Working Capital Net income $52,006 $ 22,971 $12,993 $ 87,970 $ 51,163 ' Net Increase in Working Capital $52,006 $ 22,971 $12,993 $ 87,970 $ 51,163 11 Elements of Net Income (Decrease) in Working Capital Cash $(3,722) $ 9,495 $ (266) $ 5,507 $(13,359) Certificates of deposit 41,574 27,773 13,259 82,606 80,406 Due from other funds 14,297 14,297 ' Cash surrender value of life insurance (15,884) Due to other funds (143) (14,297) (14,440) 1 Net Increase in Working Capital $52,006 $ 22,971 $12,993 $ 87,970 $ 51 ,163 1 11 I I 1 I - 14 - 1 MCALPIN CURTIS&ASSOCIATES.CERTIFIED MIMIC ACCOUNTANTS 1 CITY OF OKEECHOBEE, FLORIDA IISCHEDULE OF GENERAL FUND REVENUES - BUDGET AND ACTUAL IIYear Ended September 30, 1980 • II Over (Under) I Budget Actual Budget Taxes Ad valorem taxes $174,915 $179,043 $ 4,128 II Franchise fees 90,000 110,587 20,587 Utility service taxes 92,000 100,857 8,857 356,915 390,487 33,572 ILicenses and Permits Occupational licenses 19,000 20,084 1 ,084 II Building permits 4,200 9,420 5,220 Animal licenses 3,400 669 (2,731) Competency cards 3,200 3,575 375 II Rezoning and variance fees 1 ,413 1 ,413 29,800 35,161 5,361 Intergovernmental Revenues I State shared revenue Cigarette tax 62,000 64,001 2,001 State revenue sharing 176,000 176,013 13 I Mobile home licenses 4,250 2,093 (2,157) Homestead Exemption Trust Fund -0- 6,596 6,596 Alcoholic beverage licenses -0- 1,334 1 ,334 II Gasoline tax refund 1 ,200 948 (252) 243,450 250,985 7,535 11 Charges for Services Fire protection service 5,520 5,520 -0- Humane Department fees 100 -0- (100) I5,620 5,520 (100) Fines and Forfeitures II Court fines 18,000 19,104 1,104 Police education 700 723 23 II 18,700 19,827 1 ,127 Miscellaneous Interest earnings 38,748 61,733 22,985 IIOther 2,000 23 (1,977) Insurance proceeds -0- 6,958 6,958 II40,748 68,714 27,966 Total $695,233 $770,694 $75,461 I II II - 15 - ' MCALPIN CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOU rANrs CITY OF OKEECHOBEE, FLORIDA tSCHEDULE OF FUND REVENUES - BUDGET AND ACTUAL Year Ended September 30, 1980 ' Over (Under) ' Federal Revenue Sharing Fund Budget Actual Budget Intergovernmental Revenue ' Federal revenue sharing proceeds $83,810 $86,544 $ 2,734 Miscellaneous Interest earnings 3,000 (3,000) Total $86,810 $86,544 $ (266) ' Debt Service Fund Taxes ' Ad valorem taxes $38,284 $40,000 $ 1 ,716 Miscellaneous ' Interest earnings 11,984 11,109 (875) Total $50,268 $51 ,109 $ 841 General Fund ' Other Financing Sources Operating transfers - in $103,715 $90,122 $(13,593) ' - 16 - IIMcALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS ICITY OF OKEECHOBEE, FLORIDA SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTUAL II Year Ended September 30, 1980 Over (Under) I General Government Budget Actual Budget Legislative City Council salaries $ 8,160 $ 8,160 II Chairman salary 4,200 4,200 City Council expense 3,000 3,000 15,360 15,360 Executive I City Clerk's salary 12,500 12,501 $ 1 City Clerk's office expense 750 750 City Clerk's capital outlay 900 2,279 1,379 ' 14,150 15,530 1,380 Financial and Administrative Deputy Clerks' salaries 27,290 27,290 I City Clerk's office - overtime 1,445 1 ,473 28 Clerk's office expense 5,840 5,107 (733) Clerk's office equipment repair 3,620 305 (3,315) I Audit fee 5,000 4,975 (25) Board of Adjustment fees 1 ,500 1,500 44,695 40,650 (4,045) I Legal Counsel City Attorney's salary 10,000 10,000 City Attorney's expense 300 -0- (300) II Attorney special fees 3,000 17,253 14,253 Discrimination suit 15,000 10,309 (4,691) 28,300 37,562 9,262 II Comprehensive Planning and Zoning Planning board fees 1,800 1,725 (75) Contractual services 6,800 382 (6,418) t Maps and reproductions 2,050 328 (1 ,722) 10,650 2,435 (8,215) Other General Governmental Services I Telephone and telegraph 7,400 7,766 366 City Hall operation and maintenance 10,000 11 ,996 1 ,996 New construction and additions 383,662 383,152 (510) II Department of Public Works - director and assistant salaries 5,145 4,892 (253) Department of Public Works - secretary I salary 5,305 5,318 13 Department of Public Works - equipment and office expense 1,250 1,450 200 1 Termite control 75 4,5 73 5,002 (2) Communication expense 60 02 442 Donations 13,500 13,500 I Utilities 3,500 2,354 (1 ,146) Health insurance 12,050 12,298 248 Disability insurance 2,350 2,453 103 I General insurance 37,500 29,274 (8,226) City Hall landscaping 2,500 703 (1,797) Payroll taxes 29,580 28,955 (625) II Unemployment taxes 300 -0- (300) City Clerk's retirement 4,740 4,739 (1) Pension plan payments 23,500 13,023 (10,477) I Employee Christmas bonus 585 585 Condemnation proceedings 1 ,500 -0- (1,500) Other 450 951 501 II 549,452 528,484 (20,968) Total - General Government 662,607 640,021 (22,586) I - 17 - McALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS ICITY OF OKEECHOBEE, FLORIDA SCHEDULE OF GENERAL FUND EXPENDITURES - BUDGET AND ACTUAL (CONTINUED) IYear Ended September 30, 1980 Over (Under) ' Budget Actual Budget Public Safety Law Enforcement I Salaries $ 221 ,455 $ 211 ,480 $ (9,975) Overtime 6,500 4,970 (1,530) Incentive pay 5,560 6,052 492 ' Education 700 450 (250) Investigation 400 274 (126) Operating expense 34,485 37,236 2,751 II Crime lab 2,145 1 ,606 (539) Capital outlay 8,450 12,727 4,277 279,695 274,795 (4,900) I Fire Control Salaries 87,245 88,770 1,525 Overtime 2,500 1 ,726 (774) I Operating expense 12,100 13,667 1,567 Capital outlay 1,000 318 (682) Hydrant demand charge 23,280 23,280 II 126,125 127,761 1,636 Protective Inspections Building official salary 16,075---- 16,660 585 II Expense allowance 2,860 2,674 (186) Office expense 1 ,175 1 ,376 201 20,110 20,710 600 I Emergency and Disaster Relief Services - Civil Defense 200 -0- (200) Total - Public Safety 426,130 423,266 (2,864) IPhysical Environment Garbage/Solid Waste Control Services IRefuse collection 15,338 15,213 (125) Transportation II Road and Street Facilities Salaries 67,690 60,528 (7,162) Mechanic 11,050 9,817 (1,233) I Overtime 2,500 3,455 955 Operating expense 60,735 38,013 (22,722) Capital outlay 22,750 15,818 (6,932) I Street lighting 44,000 46,912 2,912 City barn addition 31,265 31 ,990 725 239,990 206,533 (33,457) Human Services I Health Humane Officer's salary 12,540 10,975 (1,565) Office expense 1,200 1,131 (69) I Animal Pound expense 1,200 1 ,427 227 14,940 13,533 (1,407) Parks and Recreation IIParks - landscaping 6,050 7,041 Contingencies 9,500 ITotal - General Fund $1 ,374,555. $1 ,305, II - 18 - IIMCALPIN CURTIS&ASSOCIATES,CERTIFIE 1 CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF FUND EXPENDITURES - BUDGET AND ACTUAL 1 Year Ended September 30, 1980 1 Over (Under) General Fund Budget Actual Budget 1 Other Financing Uses Operating transfers - 1 Water and Sewer Fund $ 5,865 $ 5,863 $ (2) Federal Revenue Sharing Fund 1 Operating Transfers General Fund $103,715 $ 90,122 $(13,593) 1 Water and Sewer Fund 134,889 134,889 -0- Total $238,604 $225,011 $(13,593) 1 Debt Service Fund Principal retirement $ 15,000 $ 15,000 1 Interest 27,525 27,525 Fiscal agent's fee 500 500 1 Total $ 43,025 $ 43,025 1 1 1 1 i i 1 1 - 19 - 1 MCALPIN CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACC(IC.\TA\Th CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS Year Ended September 30, 1980 11 Balance Balance October 1, 1979 Additions Retirements September 30, 1980 Land and improvements $128,712 $379,152 $507,864 Buildings and improvements 97,758 35,990 133,748 Furnishings and equipment 120,677 5,175 125,852 Rolling stock 184,951 25,977 $16,695 194,233 Total $532,098 $446,294 $16,695 $961 ,697 I I 1 I 1 I I I I 11 I 11 11 11 - 20 - ' MCALPIN CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOUNTANTS ICITY OF OKEECHOBEE, FLORIDA ISCHEDULE OF CHANGES IN RESERVE ACCOUNTS IWATER AND SEWER FUND Year Ended September 30, 1980 I Bond Reserve and Retirement Fund I Current Maximum Depreciation Total Maturities Reserve Fund IBalance - October 1 , 1979 $106,745 $26,603 $48,375 $31,767 Additions I From Operating Fund: Bond principal requirement 22,000 22,000 Bond interest requirement 26,790 26,790 I Interest earned on investment 6,643 4,042 2,601 Total Additions 55,433 48,790 4,042 2,601 I Deductions Payments for: Bond principal 22,000 22,000 I Bond interest 26,790 26,790 Transfer to Revenue Fund 6,772 129 4,042 2,601 Total Deductions 55,562 48,919 4,042 2,601 I . Balance - September 30, 1980 $106,616 $26,474 $48,375 $31,767 I I I II I II II I - 21 - IIMCALPIN CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACC OUNTANTti II CITY OF OKEECHOBEE, FLORIDA ISCHEDULE OF BOND PRINCIPAL AND INTEREST TO MATURITY IGENERAL OBLIGATION BONDS September 30, 1980 II I Principal Interest Total Principal and Interest Payments Due For Year Ended September 30 1981 $ 15,000 $ 26,400 $ 41 ,400 I 1982 15,000 25,275 40,275 1983 15,000 24,150 39,150 1984 20,000 23,138 43,138 II 1985 20,000 21 ,788 41 ,788 1986 20,000 20,437 40,437 1987 20,000 19,087 39,087 II 1988 25,000 17,738 42,738 1989 25,000 16,050 41 ,050 1990 25,000 14,363 39,363 II 1991 25,000 12,675 37,675 1992 30,000 10,956 40,956 1993 30,000 8,894 38,894 II 1994 30,000 6,831 36,831 1995 35,000 4,769 39,769 1996 35,000 2,362 37,362 ITotal $385,000 $254,913 $639,913 IIBonds maturing 1982-1996 are redeemable at the option of the City on any interest date by payment of a premium of 3 percent between 1982-86; 2 percent between 1986-91 II and 1 percent after July 1 , 1991. Interest is payable at 7.5 percent on bonds matur- ing through 1982; at 6. 75 percent for bonds maturing 1983 through 1990; at 6.875 per- cent for bonds maturing 1991 through 1995, and at 6.75 percent for bonds maturing in II1996. II II II II II - 22 - ' McALPIN CuRTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOUNTANTS IIIIIIIIIIIIMMMIIIIIMIIIIMIIIIIIIIIIIIIIIMIIMIIIIIIIIIIIIIMIIMMIMIIIIIIII CITY OF OKEECHOBEE, FLORIDA ' SCHEDULE OF BOND PRINCIPAL AND INTEREST TO MATURITY 1958 WATER AND SEWER REVENUE BONDS September 30, 1980 Principal Interest Total Principal and Interest Payments Due For Year Ended September 30 r1981 $ 18,000 $ 6,975 $ 24,975 1982 18,000 6,165 24,165 1983 19,000 5,355 24,355 1984 20,000 4,500 24,500 1985 21,000 3,600 24,600 1986 22,000 2,655 24,655 1987 23,000 1,665 24,665 1988 14,000 630 14,630 Total $155,000 $31 ,545 $186,545 The bonds bear interest at the rate of 4-1/2 percent and are secured by the net revenues of the Water and Sewer System and the utility taxes. The bonds are redeem- able in whole or in part in inverse order of maturity on any interest date at par and accrued interest plus a redemption premium of 4-1/2 percent. I I ' - 23 - IIMCALPIN CURTIS&ASSOCIATES,CERTIFIED f'I HI.0 ArruuNr.lNiti I CITY OF OKEECHOBEE, FLORIDA ISCHEDULE OF BOND PRINCIPAL AND INTEREST TO MATURITY 11 1972 WATER AND SEWER REVENUE BONDS September 30, 1980 1 IIPrincipal Interest Total Principal and Interest Payments Due IIFor Year Ended September 30 1981 $ 5,000 $ 18,800 $ 23,800 II 1982 5,000 18,550 23,550 1983 6,000 18,300 24,300 1984 6,000 18,000 24,000 II 1985 6,000 17,700 23,700 1986 6,000 17,400 23,400 1987 7,000 17,100 24,100 II 1988 7,000 16,750 23,750 1989 7,000 16,400 23,400 1990 8,000 16,050 24,050 II 1991 8,000 15,650 23,650 1992 9,000 15,250 24,250 1993 9,000 14,800 23,800 II 1994 10,000 14,350 24,350 1995 10,000 13,850 23,850 1996 11,000 13,350 24,350 1 1997 11,000 12,800 23,800 1998 12,000 12,250 24,250 1999 12,000 11,650 23,650 II 2000 13,000 11,050 24,050 2001 13,000 10,400 23,400 2002 14,000 9,750 23,750 II2003 14,000 9,050 23,050 2004 15,000 8,350 23,350 II 2005 15,000 7,600 22,600 2006 16,000 6,850 22,850 2007 17,000 6,050 23,050 II 2008 18,000 5,200 23,200 2009 19,000 4,300 23,300 2010 21,000 3,350 24,350 II 2011 22,000 2,300 24,300 2012 24,000 1,200 25,200 IITotal $376,000 $384,450 $760,450 II The bonds bear interest at the rate of 5 percent and are secured by a pledge of the net revenues of the Water and Sewer System and cigarette taxes. The bonds are sub- ordinate to the outstanding 1958 Water and Sewer Revenue Bonds. The bonds are re- ' deemable in whole or in part in inverse order on any interest payment date at par and accrued interest. II - 24 - IIMcAu'IN CURTIS&ASSOCIATES.CERTU'JEn ITRLN A(rnrNTAN N I CITY OF OKEECHOBEE, FLORIDA ISCHEDULE OF INSURANCE COVERAGE ISeptember 30, 1980 I Description Coverage IFire and Extended Coverage City Hall (80 percent Co-Insurance - $100 deductible) 110,000 I Water Department buildings 82,000 Fire Station and buildings 91,300 I Comprehensive General Liability Bodily injury 300,000 Property damage 50,000 I Medical payments 500/10,000 Personal injury liability 300,000 I Law Enforcement Liability Bodily injury, personal injury, property damage ($250 deductible) 150/300,000 I First aid 5/25,000 Punitive damages 5/25,000 IWorkmen's Compensation and Employer's Liability Statutory Rates Vehicular Equipment II Bodily injury 100/300,000 Property damage 50,000 Uninsured motorist 35,000 I Collision ($100 deductible) ACV Comprehensive ($50 deductible) ACV IScheduled Property Floater ($100 deductible) ACV Public Officials Bonds I City Clerk 15,000 Other employees 15,000 I Police and Full-Time Firemen Accidental death 20,000 I Volunteer Firemen Accidental death 10,000 Medical payments 5,000 IIDisability - total 100 Disability partial 50 I II II - 25 - ' McAL'JN CURTIS&ASSOCIATES.el-RTIEII I)NMI It•AC(UUNTANTS I CITY OF OKEECHOBEE, FLORIDA IISCHEDULE OF ASSESSED VALUES, TAX LEVIES IAND RATES - LAST TEN YEARS IReal Personal Homestead Year Property Property Total Exemption I1980 $51,225,720 $9,725,167 $60,950,887 $5,173,430 1979 34,756,690 8,787,664 43,544,354 5,034,700 t 1978 34,065,350 8,587,844 42,653,194 4,905,430 1977 28,053,703 6,872,990 34,926,693 4,702,690 1976 24,370,665 7,241 ,590 31 ,612,255 4,585,570 I 1975 23,630,191 5,987,420 29,617,611 4,479,230 1974 22,237,112 4,668,340 26,905,452 4,336,100 1973 21,760,494 3,153,530 24,914,024 3,680,710 ' 1972 12,295,670 3,031,848 15,327,518 3,223,765 1971 11,119,065 2,299,576 13,418,641 3,030,375 I IITax Levy and Applicable Rates Levies Rates I Debt General Debt General Service Government Year Service Government Mills Mills II1980 $36,386 $335,209 .58 5.50 1979 40,248 179,780 .83 4.137 II 1978 41 ,852 168,054 .88 3.94 1977 43,989 157,519 1. 11 4.51 1976 35,090 145,732 1.11 4.61 II 1975 37,848 135,945 1.11 4.59 1974 51 ,542 123,475 1.65 4.59 1973 47,181 112,113 1.65 4.50 II1972 55,653 107,292 3.00 7.00 1971 49,347 80,511 3.00 6.00 II I II II II I - 26 - • II McALPIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS CITY OF OKEECHOBEE, FLORIDA SCHEDULE OF REVENUES AND UTILITY CUSTOMERS LAST TEN YEARS Revenues - Other Than Property Taxes - General Fund (Note 1) State Revenue Year Sharing Occupational Utility Fines and Franchise (Note 2) (Note 3) Licenses Taxes Forfeitures Fee 1980 $243,055 $20,084 $100,857 $19,827 $110,587 1979 251,212 20,551 93,107 18,125 93,232 1978 243,923 17,974 92,458 18,317 87,758 1977 235,839 18,783 82,858 24,817 72,821 1976 243,536 17,491 80,779 46,477 54,324 1975 237,607 15,725 68,100 42,202 103,703 1974 210,969 20,106 69,560 52,964 37,330 197? 188,309 4,758 32,953 1972 211,865 24,944 23,529 29,189 1971 159,956 10,220 33,315 23,663 Water and Sewer System Revenues _ Sewer Service Water Delinquent Charges Billings Charges Miscellaneous 1980 $79,453 $535,973 $ 9,580 $ 6,732 1979 66,844 494,849 9,280 5,557 1978 59,724 436,451 9,140 3,658 1977 59,506 413,666 10,220 2,838 1976 49,867 357,349 7,404 47,046 1975 33,034 249,405 6,514 3,266 1974 35,181 244,293 6,430 2,988 1973 24,658 168,080 3,412 1 ,139 1972 30,922 185,747 3,820 2,585 1971 23,659 133,019 367 1 ,762 Water Water Water Total Meters in Meters Meters Non- Water Unmetered Sewer Operation Cut Off Operative Meters Customers Connections 1980 2,849 272 1 3,122 450 1979 2,738 286 13 3,037 430 1978 2,612 236 19 2,867 428 1977 2,454 281 6 2,741 10 424 1976 2,394 268 1 2,663 29 423 1975 2.353 234 11 2,598 410 1974 2,228 267 1 2,496 392 1973 2,219 177 2,396 376 1972 1,854 159 2,013 370 1971 1,669 160 1,829 9 352 - 27 - MCALFIN CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS fli I II II II Fire IIDepartment Anti-Recession Permits Interest Payment Fund Miscellaneous I $12.,995 $61 ,733 $ 1,671 10,856 76,173 2,035 II 7,401 8,349 54,990 $ 7,776 $25,863 7,076 49,860 35,000 51,084 16,662 9,065 43,099 15,000 3,737 II 8,530 31 ,801 15,000 6,456 10,694 20,912 13,750 4,653 6,185 9,691 12,500 4,908 I 6,496 6,240 13,331 11,000 2,355 8,330 1 ,945 Connection II Interest Charges on (In Aid of Hydrant Utility Investments Construction) Rental Taxes II $53,657 $15,650 $23,280 33,288 23,460 22,440 30,961 19,975 25,000 II 18,225 13,660 25,000 14,289 10,965 25,000 13,056 9,400 25,000 ' 12,073 13,467 25,000 7,975 12,685 $44,878 12,639 19,135 52,415 I7,639 7,535 45,976 II I Note 1 - Amounts for years prior to 1974 have been reclassified to correspond with subsequent years. I Note 2 - Amounts reported for 1974 and subsequent are for the twelve months ended September 30. Amounts reported for 1973 are for the nine months ended September 30. Amounts reported for 1972 and prior are Ifor the twelve months ended December 31. Note 3 - Includes additional two-cent cigarette tax. II t IIMCALPIN CURTIS 8 ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS I I MCALPIN, CURTIS IRA`1 D1cA11'1N••1R,C l'A 111 ORANGE AVENUE LYMANI B.CURTIS.C.P.:�- & ASSOCIATES L.LEP,TI COMAS.C.P A P.O. BOX 3346 GERALD A.DiBARTOLONIEO.,IR.,C.P.A. FORT PIERCE.FLORIDA 33450 IROBERT W.SUMMERILAYS.JR..C.P.A. CERTIFIED PUBLIC ACCOUNTANTS ROBERT R.LYONS.C.P.A (305)461-6120 I 1 Honorable Mayor and Members of City Council ICity of Okeechobee, Florida IThis report is to present the results of our final audit of City of Okeechobee, as required by the U. S. Department of Commerce, Economic I Development Administration (EDA) , Office of Public Works for LPW Grant No. 04-51-20988. This grant provides financial assistance for con- struction of a water transmission main to the City distribution system. II The grant provides for reimbursement of costs incurred in an estimated amount not to exceed $418,000. II The objectives of our examination were to (i) review, test and report upon the costs incurred under the grant, and (ii) review, test and report on compliance with grant terms, conditions and EDA requirements. I Accordingly, we have performed an examination of the costs incurred by the grantee and reviewed its method of complying with the LPW grant re- quirements for the period from September 12, 1977 through December 3, 1 1979. Our work did not constitute an audit of financial statements prepared by the organization, other than the Statement of Project Costs Claimed from September 12, 1977 through December 3, 1979 (Exhibit A) Iand the Status of Grant Fund Payments as of December 3, 1979 (Exhibit B). Details concerning the scope of audits, the results of audit and the dis- cussion of audit results with grantee officials for each of the areas described below, are presented in the referenced attachments. I Financial Activities - - Attachment 1 Accountants' Report Exhibit A - - Statement of Project Costs Claimed from I September 12, 1977 through December 3, 1979, and Comparison of Accepted Project Costs with Estimated Project Costs I Exhibit B - - Statement of Status of Grant Fund Pay- ments at December 3, 1979 I Compliance with Grant Terms and Conditions and Other EDA LPW Requirements - - Attachment 2 II The report is intended for use in connection with the grant to which it refers and should not be used for any other purpose. II I II I Honorable Mayor and Members of City Council City of Okeechobee, Florida Page Two ' In accordance with the "Audit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977" and Revision No. 2 thereto, we have sent seven (7) copies of this report and attachments to the Department of Commerce, Regional Audit Manager. ' McAlpin, Curtis & Associates Certified Public Accountants ' December 20, 1979 1 1 I r I I McALPIN, CURTIS IRA NI.`I II.C IR IS, V A. 111 ORANGE AVENUE LYMAh n.CURTIS,CV A. P.O. BOX 3346 L LEE TI IOMAS,C.P.A & ASSOCIATES GEK LD A.DtBARTOLOMSEO.JR,C.P A. FORT PIERCE,FLORIDA 33450 BERT W.SUMMERIIAYS,JR..C.P.A. (505)4f�1 6120 CERTIFIED PUBLIC ACCOUNTANTS ROBERT K.LYONS,C.P.A. I IIATTACHMENT 1 . II To the Mayor and Members of City Council City of Okeechobee, Florida II II We have examined the City of Okeechobee's Statements of Project Costs Claimed and Status of Grant Fund Payments as of and for the period ended December 3, 1979, and tested financial transactions, accounts, reports II and related supporting documentation. Our examination was made in ac- cordance with generally accepted auditing standards and the standards for audit of financial transactions, accounts, and reports, as set forth II in the auditing standards for governmental activities published by the Comptroller General of the United States, and accordingly, included such tests of the accounting records and such other auditing procedures as we II considered necessary in the circumstances, including those set forth in the Department of Commerce's Audit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977 IIand Revision No. 2 thereto. The aforementioned statements of project costs set forth $264 of auditor I questioned costs. The final determination as to whether such costs are allowable under the terms of the grant agreement will be made by EDA. I In our opinion, subject to the ultimate disposition of questioned costs, the accompanying statements of grant costs present fairly the budgeted costs, costs claimed, costs questioned and the status of I grant funds for Grant No. 04-51-20988 at December 3, 1979, in confor- mity with generally accepted accounting principles, the Department of Commerce's audit instructions referred to above and the specific finan- Icial terms of the grant agreement.• --ter , Cu4Z' N - McAlpin Curtis & Associates 1 Certified Public Accountants December 20, 1979 I II 1 • ' EXHIBIT A ' CITY OF OKEECHOBEE LOCAL PUBLIC WORKS PROJECT NO. 04-51-20988 ' STATEMENT OF PROJECT COSTS CLAIMED FROM SEPTEMBER 12, 1977 ' THROUGH DECEMBER 3, 1979, AND COMPARISON OF ACCEPTED PROJECT COSTS WITH ESTIMATED PROJECT COSTS r ' Cost Claimed Audit Recommendations Cost Per ED Questioned Accepted Estimates Overrun Reference Cost Classification 113-A Costs _ Costs Per Grant (Underrun) Notes Architectural engi- neering basic fees $ 8,274 $ -0- $ 8,274 $ 14,600 $ (6,326) Project inspection fees 1,000 -0- 1,000 25,500 (24,500) Construction and project improvement cost 408,730 264 408,466 640,600 (232,134) Note 1 Totals For Project $418,004 $ 264 $417,740 $680,700 ,$.(262,960) Note 2 I I t I i • McALPIN,CLTRTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOUNTANTS ' EXHIBIT B CITY OF OKEECHOBEE LOCAL PUBLIC WORKS PROJECT NO. 04-51-20988 ' STATEMENT OF STATUS OF GRANT FUND PAYMENTS At December 3, 1979 ' Total Authorized Costs Per Grant Budget $418,000 I Project Costs (Per EDA-113A) $418,004 Less: Questioned Costs 264 1 Total Acceptable Project Costs $417,740 ' Amount of LPW Grant Payable - 100% of above acceptable costs or $418,000, whichever is smaller $417,740 Less: Payments Made Authorized by Grant No. 04-51-20988 $418,000 Less: Payment vouchers processed by Okeechobee County Bank 402,356 402,356 ' Available Balance - Letter of Credit $ 15,644 Balance Due From EDA - December 3, 1979 $ 15,384 I I I 1 McALPIN,CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOUNTANT ATTACHMENT 2 CITY OF OKEECHOBEE LOCAL PUBLIC WORKS PROJECT NO. 04-51-20988 ' COMPLIANCE WITH GRANT TERMS AND CONDITIONS AND EDA LPW REQUIREMENTS In connection with our examination of the financial statements as reported in Attachment 1, we have reviewed the terms and conditions of the grant and EDA/LPW instructions and have performed tests of City of Okeechobee opera- tions and records applicable to the compliance requirements set forth in Parts II A and B of the audit program in the Department of Commerce Audit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977 and Revision No. 2 thereto. ' In our opinion, for the items tested, the grantee complied in all material respects with the applicable compliance matters contained in Part II A of ' the audit program referred to above, except for those related to the ques- tioned costs on Exhibit A. Further, based upon procedures performed in accordance with Part II B nothing came to our attention to indicate that the grantee had not complied in all material respects with all applicable items listed in Part II B of the audit program referred to above. • 1 1 1 I I McALPIN,CURTIS&ASSOCIATES.CERTIFIED PUBLIC ACCOUNTANT 1 1 CITY OF OKEECHOBEE LOCAL PUBLIC WORKS PROJECT NO. 04-51-20988 NOTES TO FINANCIAL STATEMENTS December 3, 1979 A. Financial Statement Presentation and Summary of Significant Accounting Policies: 1 1. The financial statements presented are prepared from only the accounts and financial transactions of the Local Public Works Project No. 04-51-20988 of the City of Okeechobee. Accordingly, they do not present the financial ' position or the results of operations of the City of Okeechobee. 2. The financial transactions of the project are recorded in accordance with ' the terms and conditions of the grant, which are not inconsistent with generally accepted accounting principles. 1 3. Expenditures are recorded on the accrual basis of accounting. B. The total budget as approved on Form ED-508 LPW for Grant No. 04-51-20988 is $680,700. However, the approved grant amount was $418,000. 1 1 1 • r 1 1 1 1 1 1 ' McAL• PIN.CURTIS&ASSOCIATES,CERTIFIED PUBLIC ACCOUNTANTS II • CITY OF OKEECHOBEE IILOCAL PUBLIC WORKS PROJECT NO. 04-51-20988 IIREFERENCE NOTES II December 3, 1979 II1. Questioned Costs 11 The questioned costs result from the grantee falling short on the MBE require- ment computed as follows: II Total project costs claimed per EDA 113-A) as paid to MBE's $41,814.00 Less MBE cost questioned 40.40 II MBE costs accepted 41,773.60 MBE requirement (10% $418,000) 41,800.00 IIDeficiency in meeting MBE requirement $ 26.40 Project cost claimed as paid to the MBE is as follows: IIFIS No. Purchase Order Cost Claimed Cost Firm Name And Location Number As Paid Questioned ' Arkansas Meter Repair P. 0. Box 806 and Supply Co. Cabot, AR 72023 16714 $41,814.00 $40.40 IMBE costs questioned of $40.40 apply to a subcontractor-supplier, Arkansas Meter Repair and Supply Co. of Cabot, Arkansas. The MBE anticipated cost was based II on an estimated quantity of 2070' of 24" Class 50 SBT ductile iron pipe cement lined, at a set price per foot. Since actual quantity required and shipped to the grantee was 2068' or 2' less than the original estimates, the total amount II paid to the supplier fell short by $26.40 of the MBE requirement of $41,800. Therefore, questioned costs are $264.00 ($26.40 : 10%). II2. Cost Estimates Per Grant Cost estimates per grant budget Form ED 508 LPW amounted to $680,700. However, II the offer of grant was for an amount not to exceed $418,000. Consequently, the underrun represents the difference between actual accepted costs and the grant budget. I r I 1 IMcALPIN,CURTIS&ASSOCIATES,CEI<TIFIED Mil IC ACCOUNTANT: