1983/1984 Audit Reports I
PEAT
I MARWICK
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ICITY OF OKEECHOBEE, FLORIDA
Financial Statements
ISeptember 30, 1984
I (With Auditors' Report Thereon)
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I CITY OF OKEECHOBEE, FLORIDA
Financial Statements
September 30, 1984
City Council
Oakland Chapman
Mayor, Chairman
Andy Rubin Edward W. Douglas
Councilmember, Vice Chairman Councilmember
Richard R. Collins Oscar Thomas
Councilmember Councilmember
1 Administrative
Bonnie S. Thomas, CMC David Conlon
City Clerk City Attorney
Larry Mobley L. C. Fortner, Jr.
Chief of Police Administrative Assistant and
Public Utilities Director
Louis K. Torrey II J. M. Westbrook
1 Chief of Fire Department Building Inspector
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CITY OF OKEECHOBEE, FLORIDA
Table of Contents
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Auditors' Report
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures, and Changes
in Fund Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - General and
Special Revenue Fund Types
Combined Statement of Revenues, Expenses, and Changes in
1 Retained Earnings/Fund Balances - All Proprietary
Fund Types and Pension Trust Funds
Combined Statement of Changes in Financial Position -
All Proprietary Fund Types and Pension Trust Funds
Notes to Combined Financial Statements
Schedule
Supplementary Information to Financial Statements:
General Fund:
Schedule of Revenues (Budget and Actual) 1
Schedule of Expenditures (Budget and Actual) 2
Pension Trust Funds:
11 Combining Balance Sheet 3
Combining Statement of Revenues, Expenses, and
Changes in Fund Balances 4
Combining Statement of Changes in Financial Position 5
Special Revenue Fund - Federal Revenue Sharing -
Statement of Revenues and Expenditures (Budget and Actual) 6
Debt Service Fund - Statement of Revenues and Expenditures
1 (Budget and Actual)
Water and Sewer Enterprise Fund - Schedule of Changes in
Reserve Accounts 8
Statistical Information:
Summary of Insurance Coverage 9
Schedule of Assessed Values, Tax Levies and Rates --
Last Ten Years 10
Schedule of Certain Revenues and Utility Customers Last Ten Years 11
Management. Letter
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j PEAT Peat,Marwick, Mitchell & Co.
Certified Public Accountants
MARWlCK 427 North Magnolia Avenue
P.O.Box 3031
Orlando,Florida 32802
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The Honorable Mayor and Members
of the City Council
City of Okeechobee, Florida:
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11 We have examined the combined financial statements of the City of Okeechobee,
Florida as of and for the year ended September 30, 1984, as listed in the
accompanying table of contents. Our examination was made in accordance with
generally accepted auditing standards and, accordingly, included such tests of
the accounting records and such other auditing procedures as we considered
necessary in the circumstances, except as indicated in the following paragraph.
The City has not maintained adequate detail records in support of the cost of
the water and sewer utility plant in service (carrying value of $3,559,324 at
September 30, 1984) and land and improvements, buildings and improvements,
furnishings and equipment, and rolling stock included in the general fixed
assets group of accounts (carrying value of $1,601,626 at September 30, 1984)
and we were unable to obtain sufficient supporting documentation to form an
opinion with respect to the stated cost of these items acquired in years prior
to October 1, 1981 or the accumulated depreciation applicable to the water and
sewer utility plant in service at September 30, 1984 or the provision for
depreciation for the year then ended. Accordingly, we are unable to express, and
I we do not express an opinion on the accompanying financial statements of the
proprietary fund type and the general fixed assets group of accounts.
In our opinion, except that, as described in the preceding paragraph, we do not
express an opinion on the proprietary fund type and general fixed assets group
of accounts, the aforementioned combined financial statements present fairly the
financial position of the City of Okeechobee, Florida, at September 30, 1984,
1 and the results of its operations and the changes in financial position of its
fiduciary pension trust fund types for the year then ended, in conformity with
generally accepted accounting principles applied on a basis consistent with that
' of the preceding year, after giving retroactive effect to the changes, with
which we concur, as described in note 3 to the combined financial statements.
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Our examination was made for the purpose of forming an opinion on the combined
I/ financial statements taken as a whole. The supplementary information included in
Schedules 1 through 11, as listed in the accompanying table of contents, is
presented for purposes of additional analysis and is not a required part of the
combined financial statements. Such information, except for Schedules 9
through 11 which we did not audit, has been subjected to the auditing procedures
applied in the examination of the combined financial statements and, in our
opinion, except for Schedules 8 through 11 on which we express no opinion, is
fairly stated in all material respects in relation to the combined financial
statements taken as a whole.
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December 13, 1984
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Special Debt Wi
Assets General Revenue Service and
Cash, including $125,086 in interest bearing
accounts $ 55,282 1 443 (
Investments 280,643 - 77,722 1,0(
Receivables (less allowances for doubtful
accounts) :
Taxes (notes 2 and 3) 63,796 - -
Customer accounts, less allowances
of $1,475 18,247 - - f
Due from other governmental agencies (note 3) 29,015 22,846 -
Accrued interest - - - '
Due from other funds 3,198 - -
Inventories 3,664 - -
Restricted assets (notes 7 and 8) :
Cash - - - '
Investments - - - 2(
Property, plant, and equipment, net (where
applicable) of accumulated depreciation
(notes 4 and 5) - - - 3,5`
Amount available in Debt Service Fund - - -
Amount to be provided for retirement of
general long-term debt - - -
Total assets $ 453,845 22,847 78,165 5 0(
See accompanying notes to combined financial statements.
CITY OF OKEECHOBEE, FLORIDA
Combined Balance Sheet
All Fund Types and Account Groups
September 30, 1984
Fiduciary
Proprietary Funds Account Groups
Governmental Fund Types Fund Employee General General Totals
Special Debt Water Pension Fixed Long- (Memorandum
Assets General Revenue Service and Sewer Trust Funds Assets Term Debt Only)
Cash, including $125,086 in interest bearing
accounts $ 55,282 1 443 88,947 35,770 - - 180,443
Investments 280,643 - 77,722 1,003,523 766,000 - - 2,127,888
Receivables (less allowances for doubtful
accounts) :
Taxes (notes 2 and 3) 63,796 - - - - - - 63,796
Customer accounts, less allowances
of $1,475 18,247 - - 85,733 - - - 103,980
Due from other governmental agencies (note 3) 29,015 22,846 - - - - - 51,861
Accrued interest - - - 26,102 - - - 26,102
Due from other funds 3,198 - - 27,230 - - - 30,428
Inventories 3,664 - - - - - - 3,664
Restricted assets (notes 7 and 8) :
Cash - - - 20,943 - - - 20,943
Investments - - - 287,651 - - - 287,651
Property, plant, and equipment, net (where
applicable) of accumulated depreciation
(notes 4 and 5) - - - 3,559,324 - 1,601,626 - 5,160,950
Amount available in Debt Service Fund - - - - - - 76,153 76,153
Amount to be provided for retirement of
general long-term debt - - - - - - 435,173 435,173
Total assets $ 453,845 22,847 78,165 5,099,453 801,770 1,601,626 511,326 8,569,032
See accompanying notes to combined financial statements.
(Continued)
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CITY OF OKEECHOBEE, FLORIDA
Combined Balance Sheet
All Fund Types and Account Groups, Continued
Fiduciary
Proprietary Funds Account Groups
Governmental Fund Types Fund Employee General General Totals
Special Debt Water Pension Fixed Long- (Memorandum
Liabilities and Fund Equity General Revenue Service and Sewer Trust Funds Assets Term Debt Only)
Liabilities:
Accounts payable $ 45,513 - - 34,287 - - - 79,800
Contracts payable - - - - - - - -
Customer deposits - - - 114,312 - - - 114,312
Accrued liabilities 5,360 - - 12,920 - - 41,184 59,464
Payable from restricted assets:
Accrued interest on bonds payable - - - 39,394 - - - 39,394
Current portion of bonds payable - - - 16,000 - - - 16,000
Matured bonds and interest coupons - - 2,012 - - - - 2,012
Due to other funds 30,428 - - - - - - 30,428
Deferred revenues 21,964 - - - - - - 21,964
Long-term indebtedness (note 5) - - - 1,308,984 - - 470,142 1,779,126
Total liabilities 103,265 - 2,012 1,525,897 - - 511,326 2,142,500
Fund equity:
Contributed capital (note 6) - - - 2,088,921 - - - 2,088,921
Investment in general fixed assets - - - - - 1,601,626 - 1,601,626
Retained earnings:
Reserved for -
Revenue bond retirement (note 7) - - - 146,661 - - - 146,661
Renewal and replacement -- - - 15,000 - - - 15,000
Unreserved - - - 1,322,974 - - - 1,322,974
Fund balances:
Reserved for -
Employees' retirement system - - - - 801,770 - - 801,770
Debt service (note 5) - - 76,153 - - - - 76,153
Inventories 3,664 - - - - - - 3,664
Undesignated 346,916 22,847 - - - - - 369,763
Total fund equity 350,580 22,847 76,153 3,573,556 801,770 1,601,626 - 6,426,532
Total liabilities and fund equity $ 453,845 22,847 78,1 5 5,099,453 801_x770 1,601,6=2266 511,326 8,569,032
See accompanying notes to combined financial statements.
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CITY OF OKEECHOBEE, FLORIDA
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
All Governmental Fund Types
Year ended September 30, 1984
Totals
Special Debt (Memorandum
General Revenue Service Only)
Revenues (note 5) :
Taxes (note 3) $ 616,351 - 12,902 629,253
Intergovernmental (note 3) 534,902 91,375 - 626,277
Charges for services 248,138 - - 248,138
Licenses and permits 71,577 - - 71,577
Fines and forfeitures 22,764 - - 22,764
Interest income 34,363 3,202 9,554 47,119
Miscellaneous 31,083 - - 31,083
Total revenues 1,559,178 94,377 22,456 1,676,211
Expenditures:
Public safety 795,571 - - 795,571
General government 242,113 - - 242,113
Transportation 365,619 - - 365,619
Physical environment 229,710 - - 229,710
Health, human services 18,825 - - 18,825
Parks and recreation 26,520 - - 26,520
Intragovernment service - public works 23,883 - - 23,883
Debt service:
Principal retirement - - 20,000 20,000
Interest charges - - 23,143 23,143
Professional fees - - 500 500
Total expenditures 1,702,241 - 43,643 1,745,884
Excess (deficiency) of revenues over expenditures (143,063) 94,577 (21,187) (69,673)
Other financing sources (uses) :
Operating transfers in 158,560 - - 158,560
Operating transfers out - (158,.560) - (158,560)
Total other financing sources (uses) 158,560 (158,560) - -
Excess (deficiency) of revenues and other financing
sources over expenditures and other uses 15,497 (63,983) (21,187) (69,673)
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Fund balances, as restated, September 30, 1983 (note 3) 335,083 86,830 97,340 519,253
Fund balances, September 30, 1984 $ -219-' 2 2 22,847 76,153 449,580
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See accompanying notes to combined financial statements.
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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, 1984
General Fund Special Revenue Totals (Memorandum Only)
Variance Variance Variance
Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues:
Taxes $ 583,400 616,351 32,951 - - - 583,400 616,351 32,951
Intergovernmental 493,400 534,902 41,502 90,000 91,375 1,375 583,400 626,277 42,877
Charges for services 213,775 248,138 34,363 - - - 213,775 248,138 34,363
Licenses and permits 39,230 71,577 32,347 - - - 39,230 71,577 32,347
Fines and forfeitures 19,750 22,764 3,014 - - - 19,750 22,764 3,014
Interest income 30,000 34,363 4,363 - 3,202 3,202 30,000 37,565 7,565
Miscellaneous 39,723 31,083 (8,640) - - - 39,723 31,083 (8,640)
Total revenue 1,419,278 1,559,178 139,900 90,000 94,577 4,577 1,509,278 1,653,755 144,477
Expenditures:
Public safety 793,521 795,571 (2,050) - - - 793,521 795,571 (2,050)
General government 232,452 242,113 (9,661) - - - 232,452 242,113 (9,661)
Transportation 375,477 365,619 9,858 - - - 375,477 365,619 9,858
Physical environment 195,000 229,710 (34,710) - - - 195,000 229,710 (34,710)
Health, human services 18,825 18,825 - - - - 18,825 18,825 -
Parks and recreation 34,421 26,520 7,901 - - - 34,421 26,520 7,901
Intragovernment service - public works 24,978 23,883 1,095 - - - 24,978 23,883 1,095
Total expenditures 1,674,674 1,702,241 (27,567) - - - 1,674,674 1,702,241 (27,567)
Excess (deficiency) of revenues over expenditures (255,396) (143,063) 112,333 90,000 94,577 4,577 (165,396) (48,486) 116,910
Other financing sources (uses):
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O ..rutir. transfers in 90,000 158,560 68,560 90,000 158,560 68,560
Operating
Operating transfers out - - - (90,000) (158,560) (68,560) (90,000) (158,560) (68,560)
Total other financing sources (uses) 90,000 158,560 68,560 (90,000) (158,560) (68,560) - - -
Excess (deficiency) of revenues and other financing
sources over expenditures and other uses (165,396) 15,497 180,893 - (63,983) (63,983) (165,396) (48,486) 116,910
Fund balances, as restated, September 30, 1983 (note 3) 335,083 335,083 - 86,830 86,830 - 421,913 421,913 -
Fund balances, September 30, 1984 $ 16M87 3 50,580 180.89_3 86,830 22,847 63 983) 256,517 373,427 116,910
See accompanying notes to combined financial statements.
CITY OF OKEECHOBEE, FLORIDA
Combined Statement of Revenues, Expenses, and Changes in Retained
Earnings/Fund Balances - All Proprietary Fund Types and Employee Pension Trust Funds
Year ended September 30, 1984
Fiduciary
Proprietary Funds
Fund Employee Total
Water Pension (Memorandum
and Sewer Trust Funds Only)
Revenues:
Charges for services $ 1,022,134 - 1,022,134
Interest income - 73,328 73,328
Contributions - 123,874 123,874
Other operating income 303 - 303
Total operating revenues 1,022,437 197,202 1,219,639
Expenses:
Personal services 350,927 - 350,927
Contractual services 77,915 - 77,915
Depreciation 129,272 - 129,272
Materials and operating supplies 197,525 - 197,525
Utilities 104,254 - 104,254
Rentals and leases 580 - 580
Insurance 12,662 - 12,662
Repairs and maintenance 81,472 - 81,472
Administrative supplies and expense 6,005 - 6,005
Contribution refunds - 15,145 15,145
Retirement benefits paid - 1,371 1,371
General Fund administrative charge 60,000 - 60,000
Total operating expenses 1,020,612 16,516 1,037,128
Operating income (loss) 1,825 180,686 182,511
Nonoperating income (expense) :
Interest income 110,367 - 110,367
Interest expense (43,432) - (43,432)
Miscellaneous 21,312 - 21,312
Total nonoperating income, net 88,247 - 88,247
Net income 90,072 180,686 270,758
Retained earnings/fund balance, September 30, 1983 1,394,563 621,084 2,015,647
Retained earnings/fund balance, September 30, 1984 $ 161.1.§A4,21 801,770 2,2
See accompanying notes to combined financial statements.
CITY OF OKEECHOBEE, FLORIDA
Combined Statement of Changes in Financial Position -
All Proprietary Fund Types and Pension Trust Funds
Year ended September 30, 1984
Fiduciary
Proprietary Funds
Fund Employee Totals
Water Pension (Memorandum
and Sewer Trust Funds Only)
Sources of working capital:
Operations:
Net income $ 90,072 180,686 270,758
Items not requiring working capital:
Depreciation 129,272 - 129,272
Amortization of bond discount 984 - 984
Working capital provided by operations 220,328 180,686 401,014
Proceeds from bond issue 970,000 - 970,000
Decrease in current portion of bonds payable 10,000 - 10,000
Contributed capital 20,112 -- 20,112
$ 1,220,440 180,686 1,401,126
Uses of working capital:
Retirement of revenue bonds 106,000 - 106,000
Acquisition of property, plant, and equipment 307,042 - 307,042
Increase in restricted assets 192,429 - 192,429
Increase in working capita1. 614,969 180,686 795,655
$ 1,220,440 180,686 1,401®
Elements of net increase (decrease) in working capital:
Cash 7,739 686 8,425
Investments 571,105 180,000 751,105
Accounts receivable 39,296 - 39,296
Due from otherunds 11,741 - 11,741
Accounts payable (19,344) - (19,344)
Bonds payable 10,000 - 10,000
Contracts payable 42,494 - 42,494
Customers' deposits (10,553) - (10,553)
Accrued liabilities (37,509) - (37,509)
Increase (decrease) in working capital $ .2.1.2,A2.6:2 18 7� 95�655
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See accompanying notes to combined financial statements.
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CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
iSeptember 30, 1984
I/ (1) Summary of Significant Accounting Policies
The City of Okeechobee was originally incorporated in 1915 and its present
charter was adopted in 1919 under Chapter 8318 of Special Acts of 1919. The
City operates under the council form of government and provides the following
services as authorized by its charter: public safety, public works, and
culture and recreation.
It is the policy of the City of Okeechobee to conform its accounting policies
to generally accepted accounting principles applicable to governmental units.
The following is a summary of the more significant principles and practices
used in the preparation of these financial statements.
(a) Basis of Presentation - Fund Accounting
The accounts of the City are organized on the basis of funds or account
I/ groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, fund balance/
1 retained earnings, revenues, and expenditures/expenses. The various
funds are summarized by type in the financial statements. The following
fund types and account groups are used by the City:
Governmental Fund Types
Governmental Funds are those through which most governmental functions
of the City are financed. The acquisition, use, and balances of the
City's expendable financial resources and the related liabilities
(except those accounted for in proprietary funds) are accounted for
through governmental funds. The measurement focus is upon determi-
nation of changes in financial position, rather than upon net income
determination. The following are the City's governmental fund types.
11 General Fund
The General Fund is the general operating fund of the City. It is
used to account for all financial resources except those required
to be accounted for in another fund.
Special Revenue Fund
Special Revenue Fund is used to account for the proceeds of
specific revenue sources (other than special assessments,
expendable trusts, or major capital projects) that are legally
restricted to expenditures for specified purposes.
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(Continued)
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CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
I/ (1), Continued
Debt Service Funds
Debt Service Funds are used to account for the accumulation of re-
sources for, and the payment of, general long-term debt principal,
interest, and related costs.
Proprietary Fund Type
1 A Proprietary Fund is used to account for the City's ongoing organi-
zations and activities which are similar to those often found in the
private sector. The measurement focus is upon determination of net
income. The following is the City's proprietary fund type:
Enterprise Fund
I/ The Enterprise Fund is used to account for operations (a) that are
financed and operated in a manner similar to private business enter-
1 prises - where the intent of the governing body is that the costs
(expenses, including depreciation) of providing goods or services to
the general public on a continuing basis be financed or recovered
primarily through user charges; or (b) where the governing body has
decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes
Fiduciary Fund Type
Fiduciary Funds are used to account for assets held by the City in a
trustee capacity for individuals and/or other funds
Trust Fund
Trust Funds include pension trust funds and pension trust funds are
accounted for and reported as proprietary funds since capital main-
tenance is critical.
The accrual basis of accounting is used by proprietary funds and
pension and nonexpendable trust funds.
(b) Basis of Accounting
All governmental funds are accounted for using the modified accrual
basis of accounting. Revenues are recognized when they become measurable
and available as a resource to finance operations of the current year.
Uncollected ad valorem taxes are not recorded as revenues because,
although measurable, they are not available until collected. Accounts
receivable for refuse collection and interest on investments are recorded
as revenues as earned.
(Continued)
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CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
I/ (1) , Continued
Expenditures are generally recognized, under the modified accrual basis,
in the accounting period in which the liability is incurred. Exceptions
to the rule include accumulated unpaid employee vacation and sick pay,
which would not normally be liquidated with expendable available re-
sources within 60 days, principal and interest on general long-term
debt which is recognized when due, and non-recognition of prepaid ex-
penses to allocate expenditures between years.
Proprietary Funds and Pension Trust Funds are accounted for on the
accrual basis. Revenues are recognized when earned and expenses are
recognized when they are incurred. Unbilled water and sewer utility
service revenues ($27,000 at September 30, 1984) are recorded at year
end.
I/ (c) Budgetary Data
The City enacts an annual budget, by ordinance, after conducting the
1 required public hearings. The budget adopted is on a basis consistent
with the accounting principles followed by the City.
Budgets presented in the accompanying financial statements include all
amendments made to the original adopted budget and are in substantial
compliance with generally accepted accounting principles.
(d) Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and
other commitments for the expenditure of funds are recorded in order
to reserve that portion of the applicable appropriation, is employed
in the governmental funds. Open encumbrances are reported as reserva-
tions of fund balances since the commitments will be honored through
subsequent years' budget appropriations. Encumbrances do not constitute
expenditures or liabilities. As of September 30, 1984 there were no
outstanding encumbrances.
(e) Investments
Investments, consisting of certificates of deposit, repurchase agree-
ments, and money market accounts are stated at cost which approximates
market.
(f) Inventories
Inventories of motor fuels are stated at cost determined on a first-in,
first-out basis.
(Continued)
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CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
I/ (1), Continued
(g) Property, Plant, and Equipment
Property, plant, and equipment acquired for general governmental pur-
poses are recorded as expenditures in the General Fund and capitalized
I/ at cost in the general fixed assets group of accounts. No depreciation
has been provided on general fixed assets. The utility plant and equip-
ment utilized in the City's water and sewer system is stated at cost.
Depreciation has been provided principally at a composite rate of 2-1/2%
for assets acquired prior to October 1, 1981. Assets acquired after
October 1, 1981 are depreciated by the straight-line method over their
estimated useful lives for periods of five to forty years. Interest
costs on construction in progress for the City's sewer plant are capit-
alized and added to the cost of construction and will be amortized over
I/ the estimated useful life of the plant (see note 4).
(h) Allocation of Administrative Charges
' Certain administrative expenses are incurred by the City's General Fund
on behalf of the City's Water and Sewer Fund. The General Fund charges
for these services based upon estimates of City management personnel.
The reimbursement for these services is recorded as an operations ex-
pense of the Water and Sewer Fund and as a reduction of financial and
administrative expense of the General Fund. For 1984 these charges
1 amounted to $60,000.
(i) Vacation and Sick Leave
I/ Full-time and permanent employees accrue a paid vacation period ranging
from six days after six months of continuous service up to 20 days after
fifteen years of service. Unused vacation may be accumulated up to a
maximum of thirty days.
Sick leave for employees is accumulated at the rate of 12 days per year.
Payment for unused sick leave upon termination of employment may be made
for employees with 10 years or more of continuous service at a rate of
25% of the unused sick leave balance.
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(Continued)
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CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
' (1), Continued
(j) Total Columns on Combined Statements
The columns entitled "Totals (Memorandum Only)" included in the combined
financial statements section of this report are presented only to
facilitate financial analysis. These total columns are not comparable
to consolidated financial information as the basic reporting entity is
by fund type which utilizes differing bases of accounting. In addition,
interfund eliminations have not been made in the aggregation of this
data.
(2) Property Taxes
The City's property tax is levied each October 1 on the assessed value listed
as of the prior January 1 for all real and tangible personal property located
in the City. Assessed values are established by the County Property Appraiser
at 100 percent of estimated market value. The assessed value for the list of
October 1, 1983, upon which the 1983/84 levy was based, was $70,880,718.
1 Taxes are due no later than March 31 with discounting of taxes being offered
for early payment. Discounts range from 4% if taxes are paid in November to
1% for taxes paid in February. Current tax collections for the year ended
1 September 30, 1984 were 96.3% of the tax levy.
Property taxes levied for 1983/84 are recorded as receivables, net of esti-
mated uncollectibles. The net receivables collected during 1983/84 and ex-
pected to be collected in 1984/85 are recognized as revenues in 1983/84.
Net receivables estimated to be collectible subsequent to 1984/85 are re-
flected as deferred revenue. Prior year levies were recorded using these
same principles, and remaining receivables are reevaluated annually.
(3) Change in Recognition of General Fund Revenues
Prior to October 1, 1983, the City followed the policy of recognizing certain
tax and intergovernmental revenues on a cash basis. Effective October 1,
1983, the City adopted the policy of recognizing these revenues on the accrual
basis to conform with generally accepted accounting principles.
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(Continued)
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CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
I/ (3) , Continued
Fund balance as of September 30, 1983 of the General Fund has been restated
to retroactively apply the accounting change as follows:
Fund balance, as previously
reported, September 30, 1983 $ 259,646
Add: Effect of change in
recognition of franchise
and utility service taxes 57,592
Effect of change in
recognition of inter-
11 governmental revenues 17,845
Fund balance, as restated,
September 30, 1983 $ 335,083
(4) Property, Plant, and Equipment
The carrying value of property, plant, and equipment recorded in the water
and sewer fund as of September 30, 1984 is summarized as follows:
Utility plant in service -
Balance, September 30, 1983 $ 4,546,849
Acquired during the year ended
September 30, 1984 (including
additions to construction-in-
progress of $209,572) 307,042
I/ Total 4,853,891
Less accumulated depreciation 1,294,567
Net book value $ 3,559,324
The carrying value of property, plant, and equipment at September 30, 1984
included $2,882,243 in carrying value of assets acquired prior to October 1,
1981. Depreciation expense for the year ended September 30, 1984 was
$129,272.
Construction-in-progress in the amount of $341,164 at September 30, 1984
primarily represents engineering fees and capitalized interest of $41,887
associated with a new wastewater treatment facility to be constructed by
the City (see note 10).
I
I
(Continued)
II
II 7
CITY OF OKEECHOBEE, FLORIDA
1 Notes to Combined Financial Statements
II (4), Continued
II A summary of changes in General Fixed Assets for the year ended September 30,
1984 is as follows:
Balance Balance
IIOctober 1, 1983 Additions Retirements September 30, 1984
Land and im-
11 provements $ 664,577 96,076 - 760,653
Buildings and
improvements 219,116 38,789 257,905
Furnishings and
II equipment 208,680 52,391 - 261,071
Rolling stock 324,380 7,816 10,199 321,997
II Total $ 1,416,753 195,072 10,1999 1,6®O1
limmiss
(5) Long-term Debt
IILong-term debt as of September 30, 1984 is summarized as follows:
General Long-term Debt
II $480,500 original issue General
Obligation Bonds, due in annual
installments of $15,000 to $35,000
I through July 1, 1996 $ 320,000
Notes and capitalized lease obligation:
7% capital improvement notes to a bank,
due $9,500 semiannually plus interest,
II through May, 1988 secured by and payable
from a pledge of the City's share of
one half cent Florida State sales tax 76,000
II 8% capital improvement note to a bank,
due $9,167 annually, plus interest,
through 1988; collateralized by funds
II other than ad valorem taxes 36,666
8.5% installment note, due $1,123 monthly
including interest through January 1,
1987; secured by equipment with a
II carrying value of $48,754 27,812
8.49% installment note, due $304 monthly
including interest through September 15,
I 1987; secured by equipment with a
carrying value of $10,500 9,664
IITotal General Long-term Debt $ ,470,142,
II (Continued)
1
1 8
CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
I/ (5), Continued
Revenue Bonds
$400,000 original issue 1972 Water
and Sewer Serial Bonds, due in
annual installments of $5,000
to $24,000 through January 1, 2012;
interest at 5% $ 354,000
$1,000,000 original issue 1983 Water
and Sewer Serial Bonds, Series A,
due in annual installments of
$10,000 to $110,000 through January 1,
2004; interest rate of 10-1/2%; net
of unamortized discount of $29,016 970,984
Total Revenue Bonds $ 1,1V1.1114
Outstanding general obligation bonds above are redeemable at the option of
the City on any interest date by payment of a premium of 3 percent through
1986; 2 percent between 1986-91 and 1 percent after July 1, 1991. Interest
is payable at 6.75 percent for bonds maturing through 1990; at 6.875 percent
for bonds maturing 1991 through 1995, and at 6. 75 percent for bonds maturing
in 1996.
The 1972 water and sewer revenue bonds are secured by a pledge of the net
revenues of the water and sewer system and cigarette taxes. The bonds are
redeemable in whole or in part in inverse order on any interest date at par
and accrued interest.
1983 Water and Sewer Revenue Bonds, Series A, are secured by a pledge of the
' net revenues of the water and sewer system, public service taxes, franchise
revenues and state revenue sharing funds. The pledge of and lien on
pledged funds rank on a parity with the pledge of and lien on the pledged
funds to secure payment of the outstanding 1972 water and sewer revenue bonds.
Bonds maturing after January 1, 1994 and prior to January 1, 2000 are
redeemable by payment of a premium ranging from 3% to 1/2%. Bonds maturing
after January 1, 2000 are redeemable at par.
The various bond indentures contain provisions which require maintenance
and flow of monies through various specific funds, minimum and maximum
amounts to be maintained in various sinking funds and restricted funds.
The City is in compliance with all such significant limitations and
restrictions.
I
I
(Continued)
I
9
CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
I/ (5), Continued
In conjunction with the issuing of the 1983, Series A, Water and Sewer Revenue
Bonds, the City entered into an escrow deposit agreement with Barnett Banks
Trust Company, N. A. of Jacksonville, Florida for the purpose of depositing
sufficient funds in escrow to provide sufficient funds to refund the re-
maining principal and interest payments of the 1958 Water and Sewer Revenue
Bond issue and to pay all costs associated with the management of the escrow
account.
The early extinguishment of debt resulted in a gain of $11,000, which is
represented by the remaining carrying value of the 1958 Water and Sewer
Revenue Bonds of $100,000 less the escrow deposit of $89,000.
A summary of the changes in all long-term debt for the year ended Septem-
ber 30, 1984 is as follows:
I
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11
I
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11 (Continued)
1
1
10
CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
(5), Continued
Proprietary
General Long-Term Debt Water and Sewer
General Notes and Revenue Bonds Total
Obligation Capitalized 1958 1972 1983A Long-Term
Bonds Lease Total Series Series Series Total Debt
Balance, September 30, 1983 $ 340,000 186,186 526,186 100,000 360,000 - 460,000 986,186
Additions - 20,162 20,162 - - 1,000,000 1,000,000 1,020,162
Payments during the year 20,000 56,206 76,206 100,000 6,000 - 106,000 182,206
Total 320,000 150,142 470,142 - 354,000 1,000,000 1,354,000 1,824,142
Less unamortized bond discount - - - - - 29,016 29,016 29,016
Balance, September 30, 1984 $ 320,000 150,142 470,142 - 354,000 970,984 1,324,984 1,795,126,
1
Annual principal requirements for
the next five years are as follows:
1 Year ended September 30,
1985 20,000 42,706 62,706 - 6,000 10,000 16,000 78,706
1 1986 20,000 44,002 64,002 - 6,000 20,000 26,000 90,002
1987 20,000 35,269 55,269 - 7,000 20,000 27,000 82,269
1988 25,000 28,165 53,165 - 7,000 25,000 32,000 85,165
1989 25,000 - 25,000 - 7,000 25,000 32,000 57,000
Thereafter 210,000 - 210,000 - 321,000 900,000 1,221,000 1,431,000
Total $ 320,000 150,142 470,142 - 354,000 1,000,000 1,354,000 1,824,142
1
1
11
CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
II
(5), Continued
Proprietary
General Long-Term Debt Water and Sewer
General Notes and Revenue Bonds Total
Obligation Capitalized 1983A 1972 Long-Term
Bonds Lease Total Series Series Total Debt
The annual requirements to amortize
all debt outstanding as of September 30,
1984, including interest payments
totalling $1,868,593 are as follows:
Year ended September 30,
1985 $ 41,788 53,217 95,005 114,475 23,700 138,175 233,180
1986 40,437 51,154 91,591 122,900 23,400 146,300 237,891
1987 39,087 40,104 79,191 120,800 24,100 144,900 224,091
1988 42,738 29,385 72,123 123,438 23,750 147,188 219,311
1989 41,050 - 41,050 120,813 23,400 144,213 185,263
1990 39,363 - 39,363 122,925 24,050 146,975 186,338
1991 37,675 - 37,675 119,775 23,650 143,425 181,100
1992 40,956 - 40,956 121,363 24,250 145,613 186,569
' 1993 38,894 - 38,894 117,688 23,800 141,488 180,382
I 1994 36,831 - 36,831 118,750 24,350 143,100 179,931
1995 39,769 - 39,769 119,287 23,850 143,137 182,906
1996 37,362 - 37,362 119,300 24,350 143,650 181,012
1997 - - - 118,787 23,800 142,587 142,587
1998 - - - 117,750 24,250 142,000 142,000
1999 - - - 116,187 23,650 139,837 139,837
2000 = _ - 118,837 24,050 142,887 142,887
2001 - _ - 115,700 23,400 139,100 139,100
2002 - - - 116,775 23,750 140,525 140,525
2003 - - - 116,800 23,050 139,850 139,850
2004 - - - 115,775 23,350 139,125 139,125
2005 - - - - 22,600 22,600 22,600
2006 - - _ - 22,850 22,850 22,850
2007 - - - 23,050 23,050 23,050
2008 - - - - 23,200 23,200 23,200
2009 - - - - 23,300 23,300 23,300
2010 - - - - 24,350 24,350 24,350
2011 - - - - 24,300 24,300 24,300
2012 - - - = 25,200 25,200 25,200
Total $ 42,1&219. 173,8600 649,8100 2,378,125 664,800 3,042,925 3,692,735
i (Continued)
II
12
ICITY OF OKEECHOBEE, FLORIDA
IINotes to Combined Financial Statements
II (6) Contributed Capital
The source and additions to contributed capital are as follows:
IIBalance Balance
Source September 30, 1983 Additions September 30, 1984
IIConnection fees $ 246,576 20,112 266,688
Developers 338,761 - 338,761
II Federal grant 71,160 - 71,160
Local Public Works
Grant 417,740 - 417,740
Federal Revenue
Sharing Funds 619,572 _ 619,572
General Fund 100,000 100,000
Okeechobee Beach
IIWater Association 275,000 - 275,000
Total $ 2,068,809 29_11-1Z 2 088 921
II T ��
(7) Revenue Bond Reserve and Retirement Funds
The 1972 and 1983, Series A, Water and Sewer Revenue Bond ordinances require,
I among other things, deposits on a monthly basis, of amounts necessary to pro-
vide for semi-annual interest and annual principal requirements. In addition
the 1972 Revenue Bond ordinance requires a reserve of $23,400 while the 1983
I Revenue Bond ordinance requires a reserve equal to the maximum annual debt
service requirement on outstanding bonds, which was $124,750 at September 30,
1984. At September 30, 1984, the amounts required and the amounts on deposit
are as follows:
I/ 1972 1983, Series A
Revenue Bonds Revenue Bonds Total
IIMaximum reserve $ 23,400 124,750 148,150
Deposits for bond principal
II and interest requirements 17,775 33,750 51,525
Balance of construction funds
required to be deposited
in sinking fund 2,380 - 2,380
IIReserve balance - Septem-
ber. 30, 1984 $ 433,,55555 158,x,500 202,055
11 At September 30, 1984 amounts included in restricted assets (cash and invest-
ments) in the accompanying combined balance sheets for these requirements
II totalled $283,594.
II (Continued)
I
13
CITY OF OKEECHOBEE, FLORIDA
Notes to Combined Financial Statements
(8) Revenue and Replacement Fund
The 1983 Revenue Bond ordinance requires monthly deposits of $1,667 into a
renewal and replacement fund until accumulated deposits total $100,000. The
fund may be used for costs of extensions, enlargements, or additions to, or
replacement of capital assets of the sewer system and emergency repairs. At
September 30, 1984, $15,000 was required to be on deposit. Investments in-
cluded as restricted assets in the accompanying combined balance sheet for
the renewal and replacement fund totalled $25,000.
(9) Pension Plans
The City has three pension plans covering substantially all the City's regular
employees. Total pension expense for the year was $42,901 including, with
respect to the general employees benefit plan, amortization of past service
cost over a 33 year period. It is the City's policy to fund pension expense
11 as determined by actuarial valuation. Mandatory employee contributions to
the plans are at the rate of 5% of earnings. Accumulated employee contri-
butions totalled $198,927 at September 30, 1984 as follows:
' General $ 133,376
Police 48,881
Fire 16,670
ITotal $ 1WIWI
The City's contribution by fund as of September 30, 1984 was:
General Fund 26,299
Proprietary Fund 16,602
' Total $ 42,901
The plans covering the City's firefighters and police officers are also
funded by the State of Florida from a tax on fire insurance premiums col-
lected. State contributions to these plans totalled $7,552 and $24,719,
respectively, during the year ended September 30, 1984.
A summary of the actuarial present value of accumulated plan benefits and
plan net assets as of October 1, 1984 (the most recent valuation date) is
' as follows:
1
I
(Continued)
•
II
II 14
CITY OF OKEECHOBEE, FLORIDA
IINotes to Combined Financial Statements
II (9), Continued
General Police Fire
I Vested benefits:
Members currently receiving payments $ 14,050 - -
Other members 216,032 83,260 16,194
Total vested benefits 230,082 83,260 16,194
IINonvested benefits 12,010 9,001 1,938
Total actuarial present value of
I
accumulated plan benefits $ 242,092 9.2,261 18,132
Net assets available for benefits $ 418��680 280,793 102,297
IIActuarial assumed investment rate of return 6% 6% 6%
Principal actuarial assumptions used in the valuation above are summarized
II as follows:
Mortality - The 1951 Group Annuity Mortality Table
I Projected by Scale C to 1970 (regraduated) ;
females set back 5 years.
IInterest - 6% per year compounded annually, net expenses.
Retirement age - 60 for police officers and firefighters,
65 for all other employees, immediately if over
IIassumed retirement age.
Salary increases - 5% per year until the assumed retirement
I age.
Funding method - Frozen entry age actuarial cost method.
II (10) Commitments and Contingencies
On October 1, 1984, the City issued $2,212,900 in bond anticipation notes,
I with a due date of October 1, 1985 in anticipation of receipt of proceeds
from the sale of $2,212,900 in additional Water and Sewer Revenue Bonds
Series 1983 authorized by ordinance 487, enacted June 20, 1983, as amended.
As of September 30, 1984, the City has been awarded grants totalling
$1,000,000 from Farmers Home Administration and $1,477,109 from the
Environmental Protection Agency to be used in connection with construction
IIof the City's new wastewater treatment plant.
In conjunction with the construction of its new wastewater treatment plant,
1 the City has entered into contracts with Widell and Associates, Inc. totalling
$3,250,530 for plant construction; Taddie Underground Utility Company, Inc.
and M & M Contracting Co., Inc. , a joint venture for wastewater collection
system construction for $1,816,080; and Broome Van Ostran and Associates, Inc.
1 for related engineering services totalling $261,829.
Ammo
1 Schedule 1
CITY OF OKEECHOBEE, FLORIDA
1
GENERAL FUND
Schedule of Revenues
II (Budget and Actual)
Year ended September 30, 1984
II
Variance
favorable
BEIratt Actual (unfavorable)
I Taxes:
Ad valorem taxes $ 294,000 297,155 3,155
Franchise fees 166,400 185,428 19,028
II Utility service taxes 123,000 133,768 10,768
583,400 616,351 32,951
Intergovernmental revenues:
II State shared revenue:
Cigarette tax 80,000 78,629 (1,371)
State revenue sharing 160,000 176,013 16,013
II Mobile home licenses 1,500 1,494 (6)
7,1
1/2c sales tax 85,000 92,100 7,100
Alcoholic beverage licenses 1,200 2,381 1,181
Gasoline tax refund 1,200 1,347 147
Local option gasoline tax 100,000 122,155 22,155
Shared revenues from other
local units:
I/ Road and bridge 1,000 982
3,937 (18)
County occupational licenses 3,000 937 937
Dual tax - county 7,000 548 (6,452)
II 1/2C sales tax - county 3,500 3,300 (200)
City share of 5th and 6th
cent gas tax 50,000 52,016 2,016
493,400 534,902 41,502
1 Charges for services:
Fire protection service 7,200 - (7,200)
1 Sanitation fees 206,000 246,366 40,366
Miscellaneous 575 1,772 1,197
213,775 248,138 34,363
ILicenses and permits:
Occupational licenses 25,000 42,119 17,119
Building permits 11,730 25,508 13,778
II Competency cards 2,500 3,950 1,450
39,230 71,577 32,347
II Fines and forfeitures:
Court fines 19,000 21,637 2,637
Police education 750 957 207
Code enforcement fines - 170 170
II 19,750 22,764 3,014
II (Continued)
ISchedule 1
(Page 2 of 2)
I CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
I Schedule of Revenues, Continued
(Budget and Actual)
IYear ended September 30, 1984
11 Variance
favorable
Budget Actual (unfavorable)
IInterest earnings 30,000 34,363 4,363
II Miscellaneous:
Other 28,566 21,076 (7,490)
Sale of assets 1,000 - (1,000)
Rents and royalties 2,750 2,850 100
I Refunds of prior year expenditures 7,407 7,157 (250)
39,723 31,083 (8,640)
IITotal $ 1,419,278 1,559,178 139,900
II
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ISchedule 2
II CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
Schedule of Expenditures
II (Budget and Actual)
Year ended September 30, 1984
II
II Variance
favorable
Budget Actual (unfavorable)
11 Public safety:
Law enforcement:
Personal services $ 385,541 372,488 13,053
II Operating expenses 67,125 76,267 (9,142)
Capital outlay 58,513 69,032 (10,519)
Total law enforcement 511,179 517,787 (6,608)
Fire control:
I Personal services 172,549 163,453 9,096
Operating expenses 38,495 40,745 (2,250)
Capital outlay 20,485 21,465 (980)
II Total fire control 231,529 225,663 5,866
Protective inspections:
Personal services 41,128 40,791 337
II Operating expenses 8,785 10,879 (2,094)
Capital outlay 900 451 449
Total protective inspections 50,813 52,121 (1,308)
Total public safety 793,521 795,571 (2,050)
II General government:
Legislative:
1 Personal services 22,697 22,941 (244)
(1
Operating expenses 31,155 32,949 (1,794)
Capital outlay 500 - 500
Total legislative 54,352 55,890 (1,538)
II Executive:
Personal services 53,570 52,815 755
Operating expenses 8,850 7,899 951
II Capital outlay -
62 - -
Total executive 62,420 60,714 1,706
Financial and administrative:
II Personal services 98,817 98,094 723
Operating expenses 45,085 50,360 (5,275)
Capital outlay 21,362 30,739 (9,377)
Allocation of administrative
II charges (60,000) (60,000) -
Total financial and
administrative 105,264 119,193 (13,929)
II
II
II (Continued)
II Schedule 2
(Page 2 of 3)
11 CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
II Schedule of Expenditures, Continued
(Budget and Actual)
1 Year ended September 30, 1984
1 Variance
favorable
Budget Actual (unfavorable)
IIGeneral government, continued:
Comprehensive planning:
I Personal services - -
Operating expenses 5,483 3,552 1,931
Capital outlay
Total comprehensive planning 5,483 3,552 1,931
II Judicial:
Personal services - -
Operating expenses 4,933 2,764 2,169
II Capital outlay -
4,933
-
2,764 -
Total judicial 933 764 2,169
Total general government 232,452 242,113 (9,661)
II Transportation:
Road and street facilities:
Personal services 134,067 133,892 175
Operating expenses 106,960 112,553 (5,593)
Capital outlay 134,450 119,174 15,276
Total transportation, road
IIand street facilities 375,477 365,619 9,858
Physical environment:
Garbage/solid waste control services:
II Personal services - - -
Operating expenses 195,000 229,710 (34,710)
Capital outlay - _ - -
II Total physical environment,
solid waste services 195,000 229,710 (34,710)
II Human services: - -
Heal.th:
Personal services
Operating expenses 18,500 18,500 -
1 Capital outlay 325
18,825 325
Total human services, health 825 18,825
-
I
1
(Continued)
II
IISchedule 2
II
(Page 3 of 3)
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
I Schedule of Expenditures, Continued
(Budget and Actual)
Year ended September 30, 1984
I Variance
favorable
Budget Actual (unfavorable)
1 Culture/recreation:
Parks and recreation:
Personal services - _
-
Operating expenses
-
Capital outlay 34,421 26,520 7,901
Total culture/recreation,
IIparks and recreation 34,421 26,520 7,901
Intragovernment services:
I Public works:
Personal services 23,253 22,435 818
Operating expenses 1,725 1,306 419
Capital outlay - 142 (142)
Total intragovernment services,
public works 24,978 23,883 1,095
II
IITotal expenditures $ 1,66774.67744 1,7 27 567)
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Schedule 3
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
Combining Balance Sheet
September 30, 1984
Police General
officers' Firemen's employees'
retirement retirement retirement
Assets fund fund fund Total
111111 Cash $ 8,793 5,197 21,780 35,770
Investments in savings
certificates and savings
accounts (at cost, which
approximates market) 272,000 97,100 396,900 766,000
II
II
$ 280,793 102,297, 418,y580 801,770
II
Fund balances -
Reserved for retirement 280,793 102,297 418,680 801,770
$ 280,793 102,297 418,6800 801,770
I
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II
II
II
II
II
Schedule 4
CITY OF OKEECHOBEE, FLORIDA
1 PENSION TRUST FUNDS
Combining Statement of Revenues, Expenses,
and Changes in Fund Balances
Year ended September 30, 1984
Police General
officers' Firemen's employees'
retirement retirement retirement
fund fund fund Total
Revenues:
State tax on insurance premiums $ 24,719 7,552 - 32,271
Employer's contributions - 1,037 41,864 42,901
Employees' contributions 11,112 5,593 31,997 48,702
Interest earnings 25,472 9,639 38,217 73,328
Total revenues 61,303 23,821 112,078 197,202
Expenses:
Employees' contribution refunds 1,394 6,185 7,566 15,145
Retirement benefits paid - - 1,371 1,371
Total expenses 1,394 6,185 8,937 16,516
Revenues over (under) expenses 59,909 17,636 103,141 180,686
Fund balances, September 30, 1983 220,884 84,661 315,539 621,084
Fund balances, September 30, 1984 $ 280,793 10� 2,297 418,680 801,770
Schedule 5
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
Combining Statement of Changes in Financial Position
Year ended September 30, 1984
Police General
officers' Firemen's employees'
retirement retirement retirement
fund fund fund Total
Sources of working capital:
Excess of revenues over (under) expenses -
working capital provided by operations $ 59,909 17,636 10,141 18
Uses of working capital:
Increase in working capital $ 59,909 57,636 103,141 180,686
Elements of increase in working capital:
Cash (91) (464) 1,241 686
Investments, at cost 60,000 18,100 101,900 180,000
Increase (dec.raare) in working capital $ 59,909 17,636 103,141 180:686
Schedule 6
11 CITY OF OKEECHOBEE, FLORIDA
SPECIAL REVENUE FUND - FEDERAL REVENUE SHARING
Statement of Revenues and Expenditures
(Budget and Actual)
Year ended September 30, 1984
11
Variance
favorable
Budget Actual (unfavorable)
Revenues:
Revenue sharing entitlements $ 90,000 91,375 1,375
Interest earnings - 3,202 3,202
Total revenues 90,000 94,577 4,577
Expenditures - - -
Revenues over expenditures 90,000 94,577 4,577
Other financing uses:
Operating transfers out 90,000 158,560 (68,560)
11 Revenues over expenditures $ - (63.983) U.12.§.1.)
1
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Schedule 7
CITY OF OKEECHOBEE, FLORIDA
IDEBT SERVICE FUND
Statement of Revenues and Expenditures
(Budget and Actual)
Year ended September 30, 1984
I
11 Variance
favorable
Budget Actual (unfavorable)
Revenues:
Ad valorem taxes $ 12,877 12,902 25
Interest income 4,000 9,554 5,554
Total revenues 16,877 22,456 5,579
Expenditures:
Bond principal retirements 20,000 20,000 -
Bond interest expense 23,138 23,143 -(5)
Professional fees 500 500
Total expenditures 43,638 43,643 (5)
iExpenditures over revenues $ 26 761) (21.1.1z) 5,574
I
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Schedule 8
CITY OF OKEECHOBEE, FLORIDA
WATER AND SEWER ENTERPRISE FUND
Schedule of Changes in Reserve Accounts
Year ended September 30, 1984
Renewal Bond Reserve and
and Retirement Fund
Total Depreciation Replacement Current Maximum
Reserved Fund Fund Total Maturities Reserve
Balance - September 30, 1983 $ 116,165 41,760 - 74,405 26,505 47,900
Additions:
From Operating Fund:
Bond principal requirement 150,750 - - 150,750 26,000 124,750
Bond interest requirement 75,000 - - 75,000 75,000 -
Renewal and replacement requirement 15,000 - 15,000 - - -
Interest earned on investment 21,630 1,459 994 19,177 8,937 10,240
Total additions 262,380 1,459 15,994 244,927 109,937 134,990
Deductions:
Payments for:
Bond principal 6,000 - - 6,000 6,000
Bond interest 72,480 - - 72,480 72,480 -
Transfer to Revenue Fund 83,010 43,219 994 38,797 4,057 34,740
Total deductions 161,490 43,219 994 117,277 82,537 34,740
Total 217,055 - 15,000 202,055 $ 539.05 148,150
Liabilities payable:
From restricted assets:
Current portion of bonds payable 16,000 - - 16,000
Accrued interest 39,394 - - 39,394
55,394 - - 55,394
Balance - September 30, 1984 $ 211.8111 ====12 00
- 15, 0 146,661
■
Schedule 9
CITY OF OKEECHOBEE, FLORIDA
Summary of Insurance Coverage
September 30, 1984
Description Coverage
Fire and extended coverage:
Buildings and contents (90 percent
co-insurance - $100 deductible) $ 1,828,170
Comprehensive general liability:
Bodily injury 500,000
Property damage 500,000
Personal injury liability 500,000
Law enforcement liability:
Bodily injury, personal injury,
property damage ($100 deductible) 500,000/1,000,000
Workers' compensation and employer's liability Statutory rates
Vehicular equipment:
Bodily injury 100,000/300,000
Property damage 50,000
Uninsured motorist 35,000
Collision ($100 deductible) ACV
Comprehensive ($50 deductible) ACV
Scheduled property floater ($250 deductible) 192,722
Public officials bonds:
City clerk 15,000
Other employees 15,000
Public official liability ($1,000
deductible) 1,000,000
CITY OF OKEECHOBEE, FLORIDA Schedule 10
Schedule of Assessed Values, Tax Levies
and Rates - Last Ten Years
Real Personal Homestead
Year property property Total exemption
1984 $ 57,820,098 13,060,620 70,880,718 19,007,098
1983 54,725,644 12,102,101 66,827,745 17,665,060
1982 57,589,660 10,664,660 68,254,320 14,162,210
1981 57,036,510 10,475,123 67,511,633 14,061,980
1980 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
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
1975 23,630,191 5,987,420 29,617,611 4,479,230
Tax levy and applicable rates
Levies Rates
Debt General
Debt General service government
Year service government mills mills
1
1984 $ 13,483 307,480 .150 + 4.338
1983 12,674 261,497 .150 -t-- 3.913
1982 8,668 291,007 .127 -I-- 4.250
1981 8,574 286,924 .127 4.250
1980 36,386 335,209 .58 5.500
1979 40,248 179,780 .83 4.137
1978 41,852 168,054 .88 3.940
1977 43,989 157,519 1.11 4.510
1976 35,090 145,732 1.11 4.610
1 1975 37,848 135,945 1.11 4.590
Schedule 11
CITY OF OKEECHOBEE, FLORIDA
Schedule of Certain Revenues and Utility Customers
Last Ten Years
I Revenues - other than property taxes - general fund
State
revenue Fire
1 sharing Occupational Utility Fines and Franchise department Anti-recession
Year (note) licenses taxes forfeitures fee Permits Interest payment fund Miscellaneous
1984 $ 346,742 42,119 133,768 22,764 185,428 25,508 34,363 - - 31,083
1983 329,260 40,138 118,812 20,493 152,921 14,836 25,091 - - 21,985
1982 251,194 32,175 114,551 23,031 154,823 10,493 64,132 - - 43,250
1981 257,325 22,228 108,286 13,813 137,759 23,459 69,536 - - 4,240
1980 243,055 20,084 100,857 19,827 110,587 12,995 61,733 - - 1,671
1979 251,212 20,551 93,107 18,125 93,232 10,856 76,173 - - 2,035
1978 243,923 17,974 92,458 18,317 87,758 7,401 54,990 7,776 25,863 7,076
1977 235,839 18,783 82,858 24,817 72,821 8,349 49,860 35,000 51,084 16,662
1976 243,536 17,491 80,779 46,477 54,324 9,065 43,099 15,000 - 3,737
1975 237,607 15,725 68,100 42,202 103,703 8,530 31,801 15,000 - 6,456
Connection
Sewer charges Water Water Water Total
j service Water Delinquent Interest on (in aid of Hydrant meters in meters meters non- water Unmetered Sewer
Year charges billings charges W Miscellaneous investments construction) rental operation cut off operative meters customers connections
1984 $ 136,968 354,372 14,573 9,663 110,367 29,662 7,320 3,275 336 - 3,611 - 462
1983 130,189 712,251 20,146 11,219 52,912 25,163 27,000 3,102 370 - 3,472 - 462
1982 109,448 701,272 17,372 22,324 73,181 13,400 27,000 3,129 130 13 3,272 - 462
1981 82,359 569,905 12,228 6,647 70,738 24,525 27,000 2,979 222 13 3,214 - 459
1980 79,453 535,973 9,580 6,732 53,657 15,650 23,280 2,849 272 1 3,122 - 450
1979 66,844 494,849 9,280 5,557 33,288 23,460 22,440 2,738 286 13 3,037 - 430
1978 59,724 436,451 9,140 3,658 30,961 19,975 25,000 2,612 236 19 2,867 - 428
1977 59,506 413,666 10,220 2,838 18,225 13,660 25,000 2,454 281 6 2,741 10 424
1976 49,867 357,349 7,404 47,046 14,289 10,965 25,000 2,394 268 1 2,663 29 423
1975 33,034 249,405 6,514 3,266 13,056 9,400 25,000 2,353 234 11 2,598 - 410
Note - Includes additional two-cent cigarette tax and 1/2 cent sales tax.
a
PEAT Peat, Marwick,Mitchell & Co.
Certified Public Accountants
WICK 427 North Magnolia Avenue
P.O.Box 3031
I/ Orlando,Florida 32802
I
1
The Honorable Mayor and
11 Members of City Council
City of Okeechobee, Florida:
We are presenting, for your consideration, our comments and recommendations
regarding internal accounting control. These came to our attention during
the course of our examination of the combined financial statements of the
City of Okeechobee, Florida (the "City") for the year ended September 30,
1984 which was reported upon on December 13, 1984.
I/ As a result of our examination, we became aware of a material weakness in
the internal accounting control for the City's general fixed asset group of
accounts and property, plant, and equipment of the City's water and sewer
fund, which is discussed in Exhibit I. This information should be
considered in light of Exhibit III which describes the purpose of our study
and evaluation of internal accounting controls as part of our examination,
and such information is intended solely for the use of your management in
assessing the control environment.
The comments and recommendations presented in Exhibit II are intended to
11 improve the system of internal accounting control and are divided into the
following major objectives:
o Increasing Investment Revenues
o Protecting Assets
o Improving Operational Efficiency
We would like to take this opportunity to acknowledge the courtesy and
assistance extended to us by the personnel of the city during the course of
our examination.
December 13, 1984
•
1
I
Establishment of Fixed Assets Controls Exhibit I
The City has not maintained adequate detailed records in support of the
recorded cost of the water and sewer plant in service or the amounts
included in the general fixed assets group of accounts and we were unable
to obtain sufficient supporting documentation to form an opinion with
respect to (a) the stated cost of property items acquired in years prior to
' October 1, 1981 (b) the accumulated depreciation applicable to the water
and sewer utility plant in service at September 30, 1984 or the provision
for the year then ended.
Sound financial administration in safeguarding the City's investment in
fixed assets is of utmost importance in the exercise of stewardship
responsibilities. The responsibilities can be effectively discharged only
through adequate fixed assets accounting.
by maintaining fixed assets records, the City will realize several
benefits:
o Fixed assets can be inventoried periodically to ensure that they
are properly controlled.
o Responsibility for custody and effective use of fixed assets can
be clearly established.
o Information regarding sources of supply, prices, and useful lives
will be readily available. If information regarding maintenance
costs is also included in the subsidiary ledgers, ratios of
cumulative maintenance costs to original costs can be developed.
o Records will be readily available to substantiate the amount of
1 grants used to finance expenditures for fixed assets. Further-
more, the determination of costs for building or equipment use is
facilitated. The latter is important to obtain reimbursement for
the use of buildings and equipment in Federal and state aid
programs.
o Information is readily available both to determine insurance needs
and to substantiate losses recoverable from insurance.
o Information is available for the preparation of a Statement of
Genera]. Fixed Assets.
I
11
1
I/
I/
I/
Establishing fixed assets records when none existed before can be a
I/ difficult and time consuming task. One approach is to:
1. De-fin. clearly what constitutes the fixed assets categories, (e.g. ,
land, " buildings, improvements other than buildings, equipment) ; a
fixed asset (i.e. , minimum dollar value and useful life) ; and the
location "control" areas.
I 2. Plan and perform a complete inventory of all fixed assets. In cre-
ating the inventory records, obtain as much of the information to be
included in the individual assets records as is possible, e.g. , asset
II description, location, vendor or manufacturer, acquisition date.
Fixed assets identification tags should be affixed at the time the
physical inventory is taken.
II 3. Assign values to each fixed asset according to accepted principles.
More specifically, the AICPA Industry Audit Guide, "Audits of State
and Local Governmental Units," sets forth the basis for valuing fixed
I/ assets of a governmental unit: "Such assets should be recorded at
historical cost, or estimated historical cost, if the original cost is
not available, or, in the case of gifts or contributions, at the fair
Imarket value at the time received."
Several procedures can be used to determine the valuation.
II o Reference to the historical records, such as vendors' invoices,
contracts, purchase orders, capital expenditure authorizations,
cancelled checks, gift acknowledgements, or other documents on
II hand.
o Correspondence with vendors, donors, etc.
I/ o Use of an asset valuation reasonably reflective of historical
value, provided it is reliable, if historical or fair market value
is not available.
IIo Historical cost as reasonably estimated by employees for small
items of relatively low value, e.g. , tools, office furniture, and
II equipment.
o Reliance on independent outside appraisals for assets which cannot
be valued by one of the above methods or some other reasonable
II method. It is important to emphasize, however, that the appraisal
should be based upon estimated historical cost, not on replacement
cost or some other basis.
I
I
II
I
II
I
Evaluation of fixed assets in the above manner will enable the City to
establish reasonably accurate initial fixed asset values.
Once initial records are established, the City will want to concurrently
implement the kinds of controls and procedures enabling it to maintain
control over the fixed assets. These procedures should include:
o Control over the proper input into the records for all fixed asset
additions, sales, abandonments, and transfers.
o Periodic reconciliations of detail ledgers to the general ledger.
ro Periodic inventory of fixed assets by location.
o Verification that any asset traded in for a new acquisition is
properly removed from the records.
I
I
I
I
I
I
I
I
1
Exhibit II
I
Increasing Investment Revenues
I/ Pooling Cash Investments
The City currently maintains cash investment accounts in each of the funds
under its control. Consolidation of cash investments into pooled cash
investments similar to the pension trust investments would
1) Maximize investment earnings.
2) Provide more effective safeguarding of liquid assets.
3) Increase efficiency in cash flow management.
I/ As an aid in achieving the above goals, consideration should be given to
the utilization of the City's data base management software to list the
investments by type, account number, issue and maturity date, and interest
rates and to allocate investment earnings and amounts between the various
funds.
Protecting Assets
' Data Processing Disaster Planning
At the present time, the City does not have formal written policies for
safeguarding of processed information or alternative sources of equipment
support in the event of disaster.
We recommend that a comprehensive contingency plan be developed, documented
and periodically tested to ensure continued data processing services as
needed in the event of a disaster. Consideration should be given to the
following areas:
o Assumptions (potential disasters, damage, etc.)
o Disaster recovery team, telephone numbers and responsibilities
o Off-site storage of backup systems, and data documentation and
Iforms
o Inventory of hardware, software, and forms with respective vendors
for rebuilding the data center
o Location of off-site storage and access procedures
11 o Location of backup processing site and access and initiation
procedures
I
i
1
o Application processing priorities, hardware requirements for each
and their approximate run times
o Procedures for updating the contingency plan.
A written agreement would reduce the chance of misunderstanding between
parties and thereby help ensure that alternative processing capability is
available should a disaster disable the City's computer facility. The
contract should cover matters such as:
o Initial contract duration and renewal provisions
o Circumstances constituting an emergency requiring backup
o Priority of contract arrangement relative to other similar
arrangements
o Provision for periodic testing of the backup arrangement
io Basis for backup consideration: fixed fee, usage fee, mutual
backup agreement or some combination thereof
o Specific hardware requirements
o Backup site manpower support expected, if any
o Operating conditions under disaster and testing conditions:
o Hours of operation
o Nature (e.g. , dedicated processing)
11 o Minimum processing units to be supplied on a daily basis
(e.g. , four hours CPU)
' o Process to negotiate extension of service
o Nonmainframe resource requirements
o Software environment to be supplied by the backup site
o Notification of impending changes to either hardware or software
at the backup site
o Handling of proprietary information, programs, and data
! o Special security considerations, if any.
I
I
I
Data Processing Documentation
The City's utility software application has undergone recent modifications
and documentation of the software is incomplete. To increase operator
efficiency and reduce the potential risk of error, the City should request
i its software consultant to provide updated operator's manuals and
documentation of the system currently being operated.
iImproving Operational Efficiency
ICash Disbursements
The City currently uses manual checks to pay some vendors' invoices rather
than process them through its accounts payable system. When manual checks
are employed to pay invoices, care should be taken to ensure that any
outstanding purchase order is removed from encumbrances. To alleviate
problems which may occur by the use of manual checks and the failure to
properly relieve encumbrances, the City should consider increasing the �/
frequency of payment of accounts payable.
Data Processing System Integration
The City's utility and payroll software applications operate independently
from the City's general ledger software application necessitating manual
accumulation of utility billings, adjustments and collections, and payroll
information for posting to the general ledger accounts. The City should
consider having the necessary software modifications to fully integrate its
utility and payroll programs with the general ledger. Integration of the ✓'
various applications should reduce time in accumulating financial
information and decrease the likelihood of error in recording information.
Budget Preparation
In the preparation of its annual budgets for the various operating funds,
the City currently follows the practice of relying on cash surpluses to
fund projected shortfalls between budgeted revenues and expenditures.
As an example, for the years 1981 through 1984 available cash at the
beginning of the City's budget year and actual results for the general fund
are summarized below:
1981:
Beginning cash balances $ 569,396
Excess of expenditures over
revenues at year end 29,380
i
1982:
I Beginning cash balances 506,213
Excess of expenditures over
revenues at year end 167,866
1 1983:
Beginning cash balances 391,177
Excess of expenditures over
revenues at year end 62,485
1984:
Beginning cash balances 300,616
Excess of revenues over
expenditures at year end 15,497
With the continued growth of the community and increased demands for city
services coupled with construction of a new wastewater facility, the City
should explore all possibilities for additional revenue sources and
continue in its cost conscious efforts to maximize services at the least
cost to the City and its taxpayers.
The implementation of changes recommended in this letter can be facilitated
if management and Council:
o Consider and establish priorities for implementing the changes.
o Develop an overall plan and method of implementation that reflects
the priorities.
o Assign the responsibility for carrying out each change to a
specific individual.
o Establish time-frames for implementation of each change.
o Schedule progress reports from the responsible City officials and
' conduct progress meetings to further discuss progress and to
resolve problems that arise.
i
Exhibit III
I
As part of an examination of system financial statements, we perform a study and
' evaluation of an entity's of internal accounting control to the
extent we consider necessary to evaluate the system as required by gener-
ally accepted auditing standards. The purpose of our study and evaluation
is to determine the nature, timing and extent of the auditing procedures
necessary for expressing an opinion on an entity's financial statements.
Our study and evaluation is more limited than would be necessary to express
an opinion on the system of internal accounting control taken as a whole.
The City's management is responsible for establishing and maintaining a
system of internal accounting control. In fulfilling this responsibility,
estimates and judgments made by management are required to assess the
expected benefits and related costs of control procedures. The objectives
of a system are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with manage-
ment's authorization and recorded properly to permit the preparation of
financial statements in accordance with generally accepted accounting
' principles.
Because of inherent limitations in any system of internal accounting
control, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the system to future
periods is subject to the risk that procedures may become inadequate
because of changes in conditions or that the degree of compliance with the
procedures may deteriorate.
A study and evaluation made for the limited purpose described above would
not necessarily disclose all material weaknesses in the system. According-
ly, an expression of an opinion on the system of internal accounting
control taken as a whole cannot be made.
CITY OF OKEECHOBEE
CITY HALL 55 SOUTHEAST THIRD AVENUE
4 �-' OKEECHOBEE,FLORIDA 33472-2932
y�LpR�pPrs
Home of The Second Largest Fresh Water Lake in the United States
CITY COUNCIL March 27, 1985
Dr.Edward Douglas,Mayor
Jim Knight,Sr.,Vice Mayor Earnest Ellison
COUNCIL MEMBERS Auditor General
Oakland Chapman State of Florida
Dowling Watford,Jr. Tallahassee, Florida 32301
Oscar Thomas
Dear Mr. Ellison:
Please find enclosed the annual postaudit report for the 1983-84
fiscal year, the report contains the auditor's comments and the
Chief executive officers written statement of explanation or re-
CITY ADMINISTRATION buttal concerning the auditor's comments which were filed pursuant
Ronnie Thomas to the provisions of Chapter 10.550, RULES OF THE AUDITOR GENERAL--
C3c. Clerk LOCAL GOVERNMENTAL ENTITY AUDITS
813-763-3372
If other information is required pertaining to the above please
advise by calling me at 813-763-3372.
Sincerely,
Landon C.Fortner,Jr.
Dir. of Public Works CITY OF OKEECHOBEE
813-763-7054
%1
1//�
Larry Mobley BONNIE S.THOMAS CMC
Chief of Police
813-763-5521 CITY CLERK/FINANCE DIRECTOR
L.Keith Tomey,II BST:ljw
Fire Chief
813-763-4423 Enclosures
J.Mallette Westbrook
Dir. of General Services
813-763-7292
Richard C.Fellows
City Administrator
813-763-4116
���aaaga�Nt`t1
• O 4
F K FFC►y'o
'; CITY OF OKEECHOBEE
V i. .�i m/ CITY HALL 55 S. E. THIRD AVENUE 813/763-3372 OR 763-3667 ar-z
•
OKEECHOBEE, FLORIDA 33472
•1l de,„ • — `�
h41$.O R10.... Home of The Second Largest Fresh Water Lake in the United States
WRITTEN STATEMENT OF EXPLANATION CONCERNING AUDITOR'S COMMENTS
The Auditor's comments contained in the annual Audit Report for the
fiscal year 1983-84 from the offices of Peat, Marwick, Mitchell & Company
. has been received and is hereby answered with the following explanation and
corrective action:
I. Establishment of Fixed Assets Controls
Fixed asset accounting = Please note the*attached excerpt from the
minutes of the City Council on June 6, 1983.
Because of the expense involved in establishing "adequate fixed asset
accounting" as referred to in this and prior year audit reports the City has
had to choose each year not to pursue this costly project.
It is our intent, however, to continue to seek and accomplish what-
ever is expected of our governmental entity relative to its fiscal procedures,
as far as this fixed asset accounting history update is concerned.
Would you advise us what, if anything more is required, we are not
doing that we are legally required to do? We are satisfied that our records
are appropriately kept, but realize too there is generally room for improve-
ment. A small city is limited as to what it can produce because of both
funding and personnel limitations.
II. Increasing Investment Revenues
Pooling Cash Investments.
The City has and is continuing to place all of its funds in interest
bearing situations. We do have numerous bank accounts, however, and are
presently looking into the possibility of consolidating some of them in order
to:
Maximize our investment earnings
Provide more effective safeguarding of liquid assets
Increase efficiency in cash flow management
a) Concentration Fund Account
Water and Sewer Revenue Fund Concentration Account would
allow the moving of money between accounts.
Funds can be automatically transferred overnight from
daily deposits to a master account. The exact balance to
remain in the subsidiary account can be determined and the
excess funds be transferred to a higher interest bearing
account, with the debits and credits applied accordingly and
adequate audit trail would be supplied from the bank. This
procedure is to become effective as soon as practicable.
Page 2
•
III. Protecting Assets
Data processing Disaster Planning
The City now has a verbal agreement with the County Government Agency
to use their data processing equipment which is identical to the City's data
processing equipment in case of problems in our independant systems. We are
now considering, for good planning sake, changing this into a written agree-
ment.
Our local Barnett Bank has agreed to store our backup systems and data
documentation forms.
Other items stipulated in our auditor's report concerning comprehensive
Data Processing planning are being studied for feasibility and practicality
of implementation.
IV. Improving Operational Efficiency
As recently as mid January 1985 we have had installed a comprehensive
enhancement of our data processing accounting system overall. *Attached here-
with is an overview of just what the enhancement does for us. The update
has clearly improved our efficiency and reflects this City's continuing efforts
to progress in a positive and resourceful manner.
The City has also contracted for professional services to prepare for
us a comprehensive Water/Sewer rate study at a cost of $14,000. This study
will reveal to us our fiscal strengths and/or weakness relative to our enter-
prize fund.
Action from this feasibility study will be taken to improve the system
in whatever ways practicable for the continued good health and welfare of the
citizenery.
As a policy making body the City Council of the City of Okeechobee is
a progressive one as a whole. Its policies handed down to its administration
and management, we realize, can only be as effective as those the responsibi-
lities are handed to.
It is our opinion that our records speak well in establishing our manage
systems creditability and proven ability to continually seek and accomplish
improvement in all areas.
We agree with our auditors in that "The City's management is responsible
for establishing and maintaining a system of internal accounting control. In
fulfilling this responsibility, estimates and judgments made by management are
required to assess the expected benefits and related costs of control procedures.
The objectives of a system are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized
use or disposition, and that transactions are executed in accordance with manage-
ment's authorization and recorded properly to permit the preparation of financial
statements in accordance with generally accepted accounting principles", and
feel this is being accomplished.
' -
Oakland R. Chapman
ity Clerk/Finance Director,
:••. - .•n_
I FMS INHANCEMENT
IMPROVEMENTS FOR OPERATIONAL EFFICIENCY INSTALLED BY CITY OF OKEECHOBEE MID-
JANUARY, 1985.
o The posting date for I F M S will be set by each CRT operator instead of
systems boot date.
- no conflict with other processes
- can process this month and next months work
o Programs will provide the option of selecting any one fund or all funds for
processing.
o Batch and report programs will no longer execute directly from the menu
selection - will display and allow the operator to change his mind.
o End of Period/End of Year processing for the Budget and G/L modules will be
synchronized.
- now run separately causing problems if not careful
o Completely new USER manual with meaningful examples and better instructions
replacing the confusing array of existing manuals. New error message section.
o End of Day audit trail report more readable with more data.
o Option for user to save the Budget and/or G/L detail to an off line YTD file.
o Conversion programs will be provided.
o Screen handling will be standarized - i.e. DATA OK, up arrow.
o All outstanding problems reported on the RESQ system (through SES -J. Trentel)
will be addressed. This includes the unresolved CASH system problems.
BUDGET PREPARATION SYSTEM
o New series of programs
o Allows using previous years budget as a base that can be adjusted by a + or
factor
o Four iterations of budget are supported
- initial proposed
- requested by department
- preliminary approved
- final approved
DETAIL STATEMENT OF ACCOUNTS
o Reformatted to help readability
o Any or all funds may be included on the report
o Option to print only Revenue or only Expense Accounts
I FMS INHANCEMENT Page 2
o Monthly totals for Encumberance, Expenses & Allotments
o Inactive accounts printed at end of report
o Two digit code will be used to identify transactions:
- PO - item description INV - vendor name
EXPENDITURE CREDIT
o Will allow an expense account to be debited. Also provides for transferring
funds without writing a check
TRANSFER OF EXPENDITURES AND REVENUE
o Will allow transfer of Expense from/to Revenue and Revenue from/to Expense
EXPENSE/REVENUE
o Purchase Orders
- Quantity/Unit Price with extension of amount due
- Budget account will be checked for overrun - with user option to continue
or cancel
- Budget and G/L accounts will be validated as each item is entered rather
than at the end
- Maximum number of line items from 30 to 60
o Invoice (All functions from the special check subsystem will be included -
eliminating this sytem)
- Allow processing of invoice with/without PO on file
- Invoice line items may be charged against any type of account - EXP, REV
or G/L
- Will allow entry of Vendor name and address for temporary vendors
- Additional line items can be added for misc. charges such as freight
- The difference between the quantity/amount received and the quantity/amount
ordered will be recorded
o Hand Written Checks
- The invoice program must be used to input all data concerning who is to be
paid and what for
- This program will record the check number used to pay any or all items for
an INV or DEBIT memo
o Payment Selection
- Easier to use because of the elimination of special checks
- Selection by all open, all due invoices, or By vendor By Fund
- Will allow selection of all items on a particular invoice rather than
forcing the operator to select each item
o Check Reconciliation
- Faster because the check amount doesn't have to be entered. Only
check # and Y or N to reconcile.
I FMS INHANCEMENT Page 3
°Vendor Inquiry
- New program will allow the operator to input a vendor number and check
the status of all purchase orders or invoices for the vendor
- Handle inquiries
o Vendor Maintenance
- Will allow maintenance of all fields including YTD amounts
GENERAL LEDGER
o Validation Program
- New program that will run at end of month and make sure that the G/L file
is ready for month end processing - before it begins
- Will save time and trouble - prevent re-runs from back up
o End of Month/Year
- All G/L funds will be closed at the same time in conjunction with the
budget closing
- Will eliminate the possibility of forgetting to close a fund and having
postings in wrong fiscal month
FUTURE
Updated Demo
QUERY/I (experiment)
DBS (experiment)
CLERKS CERTIFICATE
STATE OF FLORIDA
COIl;1'TY OF OKEECHOBEE_ ) .ca:
CITY OF OKEECHOBEE
I, RONNIE S. THOMAS. HEREBY Ci?R7'IFY THAT I ant the duly
qualified Chin;r of the City of Okeechobee.Florida;r hat the nbore and joregoin
is a trrre and correet rope"rrja!Meuntent the orit;i••r•lof which is on file in the
Office of the Ci ■ Clerk of tl;e City of , '.eecl;n':•_. Florida
11' !I'ITNESS ll"HFRF.OF hone ereanto se•: rbo-or �and affi.red,jte
official seal of said rift'. this2.54r1ny of'.. �y
D. l9.a5....
SEAL
• -Aridifi.doL
BONNIE S. THOMAS 3319
CITY CLERK
i /
3 _ / ' l
/
Actninistrator Fellows advised, "We realize there are certain people in the carunity who
will find it difficult"financially to hook on to the system. The Council may allow such a
moritorium that they Been appropriate fran one to five years; or they can set any kind of a
financial arrangement (ie: $50.00 dawn, pay balance over one or two years). The Council
is aware and is equally concerned and will make suitable arrangements to handle such cases".
Citizen Kim Glassboro stated, "If the new Petition for annexation into the City is
I ,
granted, our house will be within Cme Hundred Feet (100') of the new City limits. Does this
mean we will have to hook into the sewer system?" Chairman Douglas advised that as long as
the moritorium exists for County hook-ups, they would not be required to connect.
Discussion ensued regarding the location of the sewer lines, State Statutes requiring
hook-ups for anyone within One Hundred Feet (100') of a sewer line whether City or County, the
request for annexation of Cbnner's Highlands.
Following the discussion, Councilman Knight moved to set the Final Hearing on the Bond
l Ordinance for Monday, June 20, 1983, Seconded by Councilman Watford. Motion carried.
AGENDA ITEM #X - PROPOSAL - FIXED ASSETS
Chairman Douglas called for action by Council on a proposal from W.O. Daley and Company
to identify and accumulate all data necessary to render an opinion on the City's financial
See Item kI statements on the General Fixed Asset Group of Accounts at a cost of Thirty Five Hundred
Estimate .f , Dollars ($3,500) to Five Thousand Dollars ($5,000).
Fixed Asset
Controls Council discussed at length the need for such a report. Robert Knapp, Representative
from W.O. Daley & Company, explained that the company would research the City records Ten
� l
to Fifteen years, identify and quantify each asset and compile a listing of assets by category.
The`Clerk noted that the project could be contracted out at a cost of approximately
Ten Thousand Dollars ($10,000). Administrator Fellows added that the proposal is reasonable
and should be done now.
With no further discussion, Councilman Watford moved to table the item, Seconded by
1 : Councilman Knight. Notion carried.
AGENDA ITEM #XI - PROPOSAL FOR CITY'S 1982-83 AUDIT
Chairman Douglas called for action by the Council on a proposal from W.O. Daley and
Company to perform the City's annual year end audit due September 30, 1983, in the amount of
Nine Thousand, Five Hundred Dollars ($9,500.00).
Administrator Fellows noted this being a contractual service it does not have to be put
out for bid.
Councilman Chapman moved that W.O. Daley & Company perform the City's 1982-83 Audit for
Nine Thousand, Five Hundred Dollars ($9,500.00), seconded by Councilman Knight. Motion carried.
AGENDA ITEM #XII - PETITION FOR VOLUNTARY ANNEXATION
Chairman Douglas noted receipt of a Petition for Voluntary Annexation of property adjacent
to the City of Okeechobee in Conner's Highlands subdivision and introduced an ordinance to
annex said property. The title was read as follows:
""""
K f C CITY OF OKEECHOBEE
p "a
�'p4, CITY HALL 55 S. E. THIRD AVENUE 813/763-3372 OR 763-3667
y_? a. .,r.c r OKEECHOBEE, FLORIDA 33472
•'ot��,• Home of The Second Largest Fresh Water Lake in the United States
h ORIOP'd
WRITTEN STATEMENT OF EXPLANATION CONCERNING AUDITOR'S COMMENTS
The Auditor's comments contained in the annual Audit Report for the
fiscal year 1982-83 from the offices of W.O. Daley and Company has been
received and is hereby answered with the following explanation and correc-
tive action:
I. Fixed Asset Accounting
The Public Works Department is in the process of updating by inven-
tory all their property records with respect to (a) The stated cost of
property items acquired in years prior to October 1, 1981 and (b) the
accumulated depreciation applicable to the water and sewer utility plant
in service at September 30, 1983 or the provision for the year then ended.
The Finance Department keeps detailed property records on a manual
card file system as always. We do not have the system on computer, at this
time. A property record listing will be implemented this year on the com-
puter as a matter of record.
We are working in cooperation with the Department of Public Works on
a more detailed system such as when a truck load of pipe is ordered, jobs
the material is to be used on can be more readily identified for audit pur-
poses. The record is there in the Public Works Department. It's just not
centralized on property records in the Clerk's office as ideally suggested.
We will get this record during this fiscal year as recommended.
Paid vendor invoices are now and have been used to establish detailed
property records. We also have a complete physical inventory, by department
of city property and a numbering system. Also, property retirements are
made on the pertinent property record cards as they occur.
II. Accounting Systems Development
1
1. The City has budgeted an amount to be used during 1984 to enhance
the computer software programs to help improve our accounting system.
2. The City is considering the possibility of entering into an agree-
ment with a user having a similar equipment configuration for re-
ciprocal equipment back-up.
3. The City has a complete library of operating manuals that was fur-
nished to us when the computer was installed. These manuals are
used in the way they were intended to be used. They include illus-
trations and discriptions and are used as a reference to assist the
operators and answer questions they might have concerning the operation
of the system relative to the city's accounting system. The equipment
is being purchased over a five year period of time and we feel well
within our rights as a customer during this time to use the expertise
Page 2
(3 contd. ) of the company's consultants when trouble arises that we aren't
sure we can handle by ourselves or with the help of a descriptive
manual. We have a flow chart which we feel to be adequate for
our needs.
4. The City has a back-up program of files which insures us against
loss of data. We are anticipating certain remodeling during this
fiscal year which should provide space in our vault for this data.
5. The City has budgeted funds to be used for computer software pro-
, gram enhancements this fiscal year when the program becomes avail-
able.
III. Cash Disbursements
1. Purchase orders paid by manual checks are now being removed from
the encumbrance accounts.
2. Duplicate payment of invoices is not a problem. The computer will
not accept for payment (causing duplication) , the same invoice or
purchase order number twice. It calls your attention to the error .
and won't take it.
IV. Payroll
Our personnel files do contain copies of all payroll deductions
as authorized by City employees. (Insurance, withholding taxes,
Credit Union, etc. )
V. Subsidiary Records
1. We have instituted procedures to reconcile the utility monthly
status report totals with general ledger accounts receivable totals.
2. The detail of utility customer deposits is being reconciled with
general ledger accounts on a monthly basis.
VI. Cash Investments
Except for the Water/Sewer Revenue Account which is regulated by
1 bond ordinance, all checking accounts are interest bearing accounts.
Mayor
City Clerk/Finance Officer