Audit Report 09.30.2000
GENERAL PURPOSE FINANCIAL STATEMENTS AND
ACCOMPANYING INFORMATION
CITY OF OKEECHOBEE, FLORIDA
SEPTEMBER 30, 2000
Ei .J,D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
CITY COUNCIL AND ADMINISTRATIVE PERSONNEL
Noel A. Chandler
Councilmember
Lowry Markham
Councilmember
Bill L. Veach
City Administrator
General Services Director
Bonnie S. Thomas, CMC
City Clerk
Lola Parker
Finance Coordinator
John Cook
City Attorney
September 30, 2000
CITY COUNCIL
James E. Kirk
Mayor, Chairman
ADMINISTRA TION
Dowling R. Watford, Jr,
Councilmember
Robert Oliver
CounciImember
Louis Keith Tomey II
Chief of Fire
Denny Davis
Chief of Police
Donnie Robertson
Director of Public Works
Ei .J,D, GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
September 30, 2000
TABLE OF CONTENTS
PAGE
Independent Auditors' Report.,.....,........,..................,.,.....,..............................,....................,............................,...... .. 1
General Purpose Financial Statements:
Combined Balance Sheets - All Fund Types and Account Groups ......................................................................2
Combined Statement of Revenue, Expenditures and Changes in Fund Balances-
All Governmental Fund Types.....,........,.,.................,......,.,...,.,..........................,..,....,..................,.....,.....,..,...... 3
Statement of Revenue, Expenditures and Changes in Fund Balances _
Budget and Actual - Governmental Fund Types..................................................................................................4
Statement of Changes in Plan Net Assets - Fiduciary Fund Type _
Employee Pension Trust Funds,.,..,..,....,.,.,.,.,.,.,..,...,.,....,.,......,.,.....,.....".,.,..,.,.,..,.,.,.....,....,..........,......,........,.... 5
Notes to Combined Financial Statements ....................................................................................................... 6-17
Accompanying Information:
General Fund -
Schedule of Revenue - Budget and Actua1.............................................................................................. 18-19
Schedule of Expenditures - Budget and ActuaI.............................................................................................20
Employee Pension Trust Funds -
Combining Statements of Plan Net Assets ....................................................................................................21
Combining Statements of Changes in Plan Net Assets .................................................................................22
Required Supplementary Information,...,........,......,.......,.....,.,..............................,......,.................,......,.,..... 23
Schedule of Expenditures of Federal and State Financial Awards .....................................................................24
Unaudited Information:
Summary of Insurance Coverage - Unaudited ....,.....,.,.....,......"..............,.,.....,.,.....,............,..,........,.,......,....,..25
Schedule of Assessed Values, Tax Levies and Rates - Unaudited......................................................................26
Schedule of Certain Revenue - Unaudited.....,......,.,.....,.,......,.....,.......,.......,.,..............,.......,....,.....,.................. 27
Other Reports:
Report on Compliance and on Internal Control over Financial Reporting
Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards....,......,...................,............,.,.....,...............,....,.,.......,....,.....,...........,.....,....... 28
Schedule of Findings and Questioned Costs ................................................................................................. 29-31
Management Letter,.......,.,...,.,....,..,...".....,.,......,......,...,.,............,.,.............,......,.,...,..,.....,....,.......,....... .,.... 32-33
Ei .J.D. GILBERT & COMPANY
~.D. GILBERT & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
600 West Hillsboro Blvd.. Suite 510, Deerfield Beach, Florida 33441 . (954 J 419-1000 . Fax (9541 419-1040
Toll Free (8881 419-2727 . E-Mail cpas@jdgilbert.com
Independent Auditors' Report
We have audited the accompanying general purpose financial statements of the City ofOkeechobee, Florida
(City) as of September 30, 2000, and for the year then ended, as listed in the table of contents. These general purpose
financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these
general purpose financial statements based on our audit. We did not audit the financial statements of the Employee
Pension Trust, which represent the amounts shown as the Fiduciary Fund Types, Those financial statements were
audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the
amounts included for the Fiduciary Fund Types - Employee Pension Trust, is based solely on the report of the other
auditors.
Except as discussed in the following paragraphs, we conducted our audit in accordance with generally accepted
auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall general purpose
financial statement presentation, We believe that our audit and the report of other auditors provide a reasonable basis for
our opll1lOn.
As disclosed in Note 5 to the general purpose financial statements, the City has not maintained adequate
detailed fixed asset records to support the cost of the real property assets included in the City general fixed asset group.
Due to the inadequate records, we were unable to satisfy ourselves, in accordance with generally accepted auditing
standards, as to the propriety of the recorded cost of real property assets. It is not practicable to determine the effects on
the fixed asset group of the general purpose financial statements of this departure from generally accepted accounting
principles.
In our opinion, based on our audit and the report of other auditors, except for the effects of the valuation of the
general fixed asset account group as discussed in the preceding paragraph, the general purpose financial statements
referred to above present fairly, in all material respects, the financial position of the City ofOkeechobee, Florida as of
September 30, 2000 and the results of its operations for the year then ended in conformity with generally accepted
accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated March 26,2001 on
our consideration of the City of Okeechobee's internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grants.
Our audit was made for the purpose offorming an opinion on the general purpose financial statements taken as
a whole. The accompanying information listed in the table of contents, including the schedule of expenditures offederal
awards as required by the V,S. Office of Management and Budget Circular A-133, "Audits of States, Local
Governments, and Non-Profit Organizations", is presented for purposes of additional analysis and is not a required part
of the general purpose financial statements ofthe City. Such information, except for the portion marked "unaudited", on
which we express no opinion, has been subjected to the auditing procedures applied in the audit ofthe general purpose
financial statements and, in our opinion, based upon our audit and the report ofthe other auditors, is fairly stated in all
material respects in relation to the general purpose financial statements taken as whole.
March 26, 2001
~J]~f~
Arnerican Institute of Certified Public Accountants . Florida Institute of Certified Public Accountants
CITY OF OKEECHOBEE, FLORIDA
COMBINED BALANCE SHEETS -
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2000
Governmental Fiduciary
Fund Types Fund Types Account Groups
Employee General General Total
Pension Fixed Long-Term (Memorandum
General Trust Assets Debt Only)
ASSETS
Cash $ 2,324,244 $ 190,351 $ 2,514,595
Investments 2,744,984 8,809,177 11,554,161
Receivables:
Taxes 118,529 118,529
Accounts less Allowance of$13,OOO 20,222 20,222
Due from Other Government Agencies 120,978 12,556 133,534
Due from Other Funds 10,673 10,673
Inventory 1,999 1,999
Restricted Assets-Cash 25,441 25,441
Fixed Assets 2,412,877 2,412,877
Amount Available in Debt Service Reserv 63,044 63,044
Amount to be Provided for Retirement
of General Long-Term Debt 1,037,594 1,037,594
TOTAL ASSETS $ 5,356,397 $ 9,022,757 $ 2,412,877 $ 1,100,638 $ 17,892,669
LIABILITIES
Accounts Payable $ 55,886 $ 18,606 $ $ $ 74,492
Accrued Liabilities 19,307 149,830 169,137
Accrued Interest 31,450 31,450
Matured Bonds and Interest Coupons 2,012 2,012
Due to Other Funds 10,673 10,673
Deferred Revenue 32,558 32,558
Long- Term Debt 950,808 950,808
TOTAL LIABILITIES 151,886 18,606 1,100,638 1,271,130
FUND EQUITY
Investment in General Fixed Assets 2,412,877 2,412,877
Fund Balance Reserved for Empoyees'
Pension Benefits 9,004,151 9,004,151
Fund Balances:
Reserved for:
Debt Service 63,044 63,044
Public Facilities 717,192 717,192
Emergency and Disaster Relief 518,325 518,325
Inventory 1,999 1,999
Encumbrances 315,327 315,327
Unreserved 3,588,624 3,588,624
TOTAL FUND EQUITY 5,204,511 9,004,151 2,412,877 16,621,539
TOTAL LIABILITIES AND
FUND EQUITY $ 5,356,397 $ 9,022,757 $ 2,412,877 $ 1,100,638 $ 17,892,669
The Notes to Combined Financial Statements
are an Integral Part of this Statement
2
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 2000
GENERAL
1999
(Memorandum
Revenue 2000 Only)
Taxes $ 1,734,001 $ 1,593,117
Intergovernmental 1,336,000 1,290,677
Charges for Services 246,439 241,483
Licenses and Permits 93,123 107,235
Fines and Forfeitures 37,932 38,881
Interest Income 258,811 242,473
Grants 25,103 6,945
Miscellaneous 7,913 7,278
Total Revenue 3,739,322 3,528,089
Expenditures
Current:
Public Safety 1,815,153 1,636,601
General Government 632,963 573,410
Transportation 588,239 677,952
Physical Environment 189,830 187,477
Debt Service:
Principal 181,149 172,081
Interest 54,641 63,811
Total Expenditures 3,461,975 3,311,332
Excess of Revenue over Expenditures 277,348 216,757
Fund Balances, beginning of year 4,927,163 4,710,406
Fund Balances, end of year $ 5,204,511 $ 4,927,163
The Notes to Combined Financial Statements
are an Integral Part of this Statement
3
Ei .J.D. GILBERT & COMPANY
-,
CITY OF OKEECHOBEE, FLORIDA
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - GOVERNMENTAL FUND TYPES
Year Ended September 30, 2000
General Fund
Actual (on Variance
Budgetary Favorable
Budget Basis) (Unfavorable)
REVENUE
Taxes $ 1,759,829 $ 1,734,001 $ (25,828)
Taxes Intergovernmental 1,293,969 1,336,000 42,03 I
Charges for Services 225,720 246,439 20,719
Licenses and Permits 90,000 93,123 3,123
Fines and Forfeitures 22,225 37,932 15,707
Interest Income 195,425 258,811 63,386
Grants 50,000 25,103 (24,897)
Miscellaneous 8,883 7,913 (970)
TOTAL REVENUE 3,646,051 3,739,322 93,271
EXPENDITURES
Public Safety 1,908,763 1,808,23 I 100,532
General Government 680,431 632,433 47,998
Transporation 1,037,825 882,993 154,832
Physical Environment 192,000 189,830 2,170
Debt Service 239,365 239,365
TOTAL EXPENDITURES 4,058,384 3,752,852 305,532
EXCESS OF EXPENDITURES OVER REVENUE $ (412,333) (13,530) $ 398,803
FUND BALANCES
Beginning of Year 4,927,163
Adjustment to conform to generally accepted
accounting principles:
Adjustment for Encumbrances 287,302
Adjustment for Interest 3,575
End of Year $ 5,204,510
The Notes to Combined Financial Statements
are an Integral Part of this Statement
4
Ei .J.D, GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
STATEMENT OF
CHANGES IN PLAN NET ASSETS -
FIDUCIARY FUND TYPE - EMPLOYEE PENSION TRUST FUNDS
Year Ended September 30,2000
Additions:
Contributions:
State Contribution $ 149,149
Employer Contributions 47,168
Employee Contributions 152,024
Total Contributions 348,341
Investment Income:
Net Appreciation in Fair Value of Investments 54,607
Interest and Dividends 277,611
332,218
Less: Investment Expenses (66,889)
Investment Income, net 265,329
Total Additions 613,670
Deductions:
Benefits Paid to Participants 142,187
Refunds on Termination 43,355
Administrative Expenses 30,935
Total Deductions 216,477
Net Increase 397,193
Net Assets Held in Trust for Pension Benefits:
Beginning of Year 8,606,958
End of Year $ 9,004,151
The Notes to Combined Financial Statements
are an Integral Part of this Statement
5
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Okeechobee (the City) 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. The accounting
policies of the City conform to generally accepted accounting principles as applicable to governmental units. The
following is a summary of the more significant policies:
A. SCOPE OF REPORTING ENTITY
The accompanying financial statements include all organizations, activities and functions over which the City
maintains direct manifestations of oversight responsibility, and those organizations where other circumstances
or relationships require their inclusion to conform with generally accepted accounting principles. These
circumstances include special financing relationships and consideration of the scope of public services
provided by a particular organization or agency.
This report includes all funds and account groups ofthe City. The specific organizations and agencies included
in the accompanying financial statements, and a summary description of how the specific elements of oversight
responsibility, and other criteria, were considered in the determination of whether or not to include the
organization in the financial statements are presented below.
The City of Okeechobee Pension Trust Funds
The three retirement plans included in the financial statements are the General Employees' Pension Trust Fund,
the Municipal Police Officers' Pension Trust Fund and the Municipal Firefighters' Pension Trust Fund. All are
governed by a separate Board of Trustees, as appointed by the City Council, subject to the requirements of
local ordinances and by applicable provisions of Florida law.
The plans require participation by all employees in the respective governing authorities. Additionally, the
organizations exist for the benefit of the employees of the City. The separate financial statements of the
pension plans can be obtained from the City,
B. BASIS OF PRESENTATION - FUND ACCOUNTING AND ACCOUNT GROUPS
The accounts of the City are organized on the basis of funds and account 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 equity, revenues and expenditures/expenses. Government
resources are allocated to and accounted for in individual funds based upon the purposes for which they are to
be spent, and the means by which spending activities are controlled. The various funds are summarized by
type in the combined 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 ofthe City's expendable financial resources and related liabilities are accounted
for through governmental funds. The measurement focus is upon determination of changes in financial
resources, rather than upon net income determination. The following are the City's governmental fund types:
6
Ei .J.D, GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
Fiduciary Fund Type
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governmental units or other funds. The following is the City's
fiduciary fund type:
Employee Pension Trust Fund - Pension trust funds are used to account for net assets held in trust for
pension benefits, Because ofthe long-term nature of defined benefit plans, financial statements alone
cannot provide sufficient information to accomplish the financial reporting objective. Therefore,
historical trend information is included as supplementary information.
Account Groups
Account groups are used to establish accounting control and accountability for the City's general fixed assets
and general long-term debt. The two account groups are not "funds", They are not involved with measurement
of results of operations, The following are the City's account groups:
General Fixed Assets Account Group - The account group is established to account for all fixed assets
of the City used for general purposes. No depreciation is recorded on general fixed assets,
General Long-Term Debt Account Group - This account group is used to account for long-term debt
to be financed from governmental fund types.
Total Columns on Combined Statements
Total columns on the combined financial statements are captioned "Memorandum Only" to indicate they are
presented only to facilitate financial analysis. Data in these columns do not present [mancial position or results
of operations in conformity with generally accepted accounting principles. Neither is such data comparable to
a consolidation. Interfund eliminations have not been made in the aggregation of this data.
C. BASIS OF ACCOUNTING AND MEASUREMENT FOCUS
Basis of accounting refers to the timing of the recognition of revenues and expenditures (or expenses) in the
accounts and in the financial statements. The basis of accounting is independent of the measurement focus,
which refers to objectives in recording of financial resources and expenditures or expenses.
Governmental Fund Types
Governmental funds are accounted for using the modified accrual basis of accounting. Therefore, revenues are
generally recognized when they become measurable and available as current assets. Property taxes and other
revenues are accrued when the amounts are due for assessment periods prior to September 30 provided that the
collection period does not exceed sixty days after that date. Revenues collected in advance of the benefit
period (e.g., business licenses) are deferred and recorded as revenue in the benefit period. Expenditures are
generally recognized when the related fund liability is incurred. Exceptions to this general rule include
accumulated unpaid compensated absences and unmatured principal and interest on general long-term debt;
these expenditures are recognized when due or when expected to be paid with expendable available financial
resources.
7
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30,2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The measurement focus is on current financial resources. The accounting and reporting treatment applied to
fixed assets and long-term liabilities associated with a fund is determined by its measurement focus. This
means that only current assets and current liabilities are generally included on governmental fund balance
sheets. Their reported governmental fund balance (net current assets) is considered a measure of "expendable
available financial resources".
Governmental fund operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a
summary of sources and uses of current financial resources during a period,
Special reporting treatment is also applied to governmental fund inventories to indicate that they do not
represent "expendable available financial resources", even though they are a component of net current assets,
Such amounts are offset by fund balance reserve accounts,
Pension Trust Funds
Pension trust funds are accounted for on the accrual basis of accounting. Therefore, revenues are recognized
when earned and expenses are recognized when incurred. The measurement focus is on the flow of economic
resources. Therefore, all assets and liabilities associated with the operation of these funds are included on the
balance sheet.
D. BUDGET AND BUDGETARY ACCOUNTING
The City enacts by ordinance, an annual budget for the revenues and expenditures ofthe governmental funds.
The budget is prepared on a basis consistent with generally accepted accounting principles except
encumbrances are presented as expenditures.
The City follows these procedures in establishing the budgetary data included in the financial statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year
commencing on October 1 st. The operating budget includes proposed expenditures and means of
financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through the passage of an ordinance by City Council on or before the
fifteenth day of September of the fiscal year currently ending.
4. The level of budgetary control is the department. The City Administrator is authorized to transfer
budgeted amounts within departments of any fund; revisions to budgeted totals of any department
require approval of the City Council. Unencumbered appropriations lapse at year end.
The reported budgetary data represents the final approved budget after amendments adopted by the City
Council.
Formal budget integration is not employed for trust funds because effective budgetary control is achieved by
alternate measures.
8
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. ENCUMBRANCES
The governmental funds use encumbrance accounting under which purchase orders, contracts and other
commitments related to unperformed contracts for goods and services which will require expenditure of funds
are recorded at year end as a reserve of fund balance. They do not constitute expenditures or liabilities, but are
recorded to reserve that portion of the applicable appropriation.
F. CASH AND TIME DEPOSITS
Cash accounts for the City are maintained in interest-bearing accounts which may include local government
surplus funds trust fund and certificates of deposit with maturity dates ofthree months or less. These deposits
are carried on the balance sheet under the caption "cash", Certificates of Deposit purchased with initial
maturities of greater than three months are included in investments.
G. INVESTMENTS
The governmental fund investments consist of nonnegotiable certificates of deposit which are valued at cost.
The fiduciary fund investments are reported at fair value. Short-term investments are reported at cost which
approximates market value, Securities traded on a national exchange are valued at the last reported sales price.
Interest income is recognized when earned. Realized gains and losses from the sale or exchange of investments
are recognized on the transaction date.
The fiduciary funds had no investments in, loans to, or leases with parties related to the pension plans as of or
for the year ended September 30,2000,
H. INVENTORY
Inventory consists of motor fuels which is stated at cost determined on the first-in, first out method. Inventory
is considered an expenditure or expense when used.
I. FIXED ASSETS
Fixed assets used in governmental funds are recorded as expenditures in the governmental fund and capitalized
in the General Fixed Assets Account Group. Assets are accounted for at cost, or if the cost is not practically
determinable, at estimated cost. Assets contributed to the City are recorded at their estimated fair value on the
date donated. Public domain general fixed assets ("infrastructure", including unimproved land, roads, bridges,
curbs and gutters, streets and sidewalks, drainage systems, and lighting systems) are not capitalized, No
depreciation has been provided on governmental fund fixed assets.
J. COMPENSA TED ABSENCES
Full-time employees accrue a paid vacation ranging from 6 days after 6 months of continuous service, up to 20
days after 15 years of service. Unused vacation may be accumulated up to a maximum of 30 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 50% of the unused sick leave balance.
9
Ei .J.D, GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The amount of vacation leave expected to be paid from current financial resources of the general fund is
included with accrued liabilities. The vested portion of sick leave and the remaining balance of vacation leave
for the general fund is included under long-term debt. A long-term liability of$149,830 has been recorded in
the General Long-Term Debt Group of accounts, representing the City's commitment to fund such costs from
future operations for the general fund.
K. 1999 AMOUNTS
The amounts shown as 1999 are presented for analysis only and do not represent presentation in accordance
with the generally accepted accounting principles.
NOTE 2 - COMPARISON OF BUDGET TO ACTUAL RESULTS
The actual results of operations are presented in accordance with generally accepted accounting principles which differ
in certain respects from those practices used in the preparation of the annual budget. For purposes of preparing the
combined statements of revenue, expenditures and changes in fund balances - budget and actual- governmental funds,
the actual results of operations have been adjusted to a basis consistent with the City's budgeted revenues and
expenditures, formulated on the encumbrance system of accounting.
The adjustrnents for encumbrances shown on the combined statements of revenue, expenditures and changes in fund
balances - budget and actual - governmental funds is as follows:
GENERAL FUND
Actual expenditures
Accrued Interest
Encumbrances - September 30, 2000
Less prior year encumbrances paid
Adjustment for encumbrances
$3,461,975
3,575
$313,328
(26,026)
287,302
Expenditures on Budgetary Basis
W52.852
NOTE 3 - CASH AND INVESTMENTS
Florida Statutes require state and local governmental units to deposit monies with a financial institution classified as a
"Qualified Public Depository", which is a multiple financial institution pool whereby groups of securities pledged by the
various financial institutions provide common collateral for their deposits of public funds. This pool is additional
insurance to the federal depository insurance and allows for additional assessments against the member institutions,
providing full insurance for public deposits, The City had deposits with qualifying institutions at September 30, 2000
which are included in cash and investments in the accompanying combined balance sheets in the amount of$3,340,60 1,
At September 30, 2000, the City has $1,918,978 invested in the Florida State Board of Administration Local
Government Surplus Funds Trust Fund investment pool. These funds are recorded at cost which approximates market
value, and are included in cash in the accompanying balance sheet. The fair value of the position in the pool is the same
as the value of pool shares held.
The investments of the fiduciary fund type are managed by Invesco Capital Management, Inc, Cash equivalent
investments, consisting of money market accounts, are stated at cost which approximates market value.
10
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 3 - CASH AND INVESTMENTS (Continued)
The investment guidelines, as established by local ordinance and Florida Statutes, allow surplus funds to be invested in
the local government surplus funds trust fund, obligations of the U.S. government or agencies thereof, banking
institutions within the state and other such institutions within the guidelines of the state statutes which are insured by the
Federal Deposit Insurance Corporation, commercial paper with certain ratings, pre-refunded municipal obligations,
banker's acceptances maturing within one year, investment agreements, direct and general long-term obligations of any
state with proper credit rating and full faith and credit pledge, municipal obligations with proper credit rating and
repurchase agreements with maturities of30 days or less with organizations with certain stipulations and requirements.
For the Pension Trust Funds, investments in stocks, bonds and certain commingled funds are also allowed, and equity
investments are not to exceed 60% of the assets of the fund on a cost basis,
The City's investments are categorized by type to give an indication of the level of credit risk assumed by the City at
year end. Category I includes investments that are insured or registered or for which the securities are held by the City
or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are
held by the City's custodian in the City's name. Category 3 includes uninsured and unregistered investments for which
the securities are held by the counterparty's trust department or agent, but not in the City's name.
The following is a list of the City's investments (excluding certificates of deposit of the general fund) by categories of
risks established by Governmental Accounting Standards Board Statement No.3:
Category 3:
Pension trust funds:
Municipal police officers' pension trust fund:
Cash equivalents
Government and agency securities
Corporate bonds
Corporate stocks
Accrued income
Historical
Cost
Market
Value
Total Investments
$ 44,886 $ 44,886
939,557 921,101
439,939 422,615
1,842,199 2,279,387
21 ,286 21,286
3,287,867 3,689,275
22,299 22,299
315,869 309,865
206,036 198,495
707,316 878,436
7,990 7,990
1,259,510 1,417,085
42,523 42,523
904,904 888,218
494,555 477,522
1,842,558 2,274,794
19,760 19,760
3,304,300 3,702,817
~~lli21 WQ2J27
Municipal firefighters' pension trust fund:
Cash equivalents
Government and agency securities
Corporate bonds
Corporate stocks
Accrued income
Municipal general employees' pension trust fund:
Cash Equivalents
Government and agency securities
Corporate bonds
Corporate stocks
Cash and accrued income
II
e; .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 4 - PROPERTY TAXES
The City's property tax is levied annually on the real and personal property located in the City on January 1 st of the prior
year. The assessed value on which the 1999-00 levy was based was $175,312,911. The assessed values are established
by the Okeechobee County Property Appraiser. Tax collections by the Okeechobee County Tax Collector begin
normally in November of each year with a due date of March 31 of the following year. Tax collections for the year
ended September 30, 2000 were 85.3% of the total tax levied. The City is permitted by state law to levy taxes up to 10
mills of assessed valuation for the general fund. The tax rate for the 1999-00 fiscal year was 5.44 mills.
NOTE 5 - CHANGES IN GENERAL FIXED ASSETS
A summary of changes in general fixed assets follows:
Balance
October 1, 1999 Additions Retirements
Land and improvements $ 805,358 $ 13,131 $
Buildings 445,524
Equipment and Furniture 1,118,845 154,898 10,000
Totals $~,)_6~227 $18tiZ.2 $114O!JQ
Other
Changes
Balance
September 30, 2000
$
(114,879)
$ 818,489
445,524
1,148,864
~~~221
~412,871
The City has not maintained adequate detailed fixed asset records to support the cost or donated value of its land and
buildings. At September 30, 2000, the recorded value of real property acquired for which detail records of cost has not
been maintained is $744,438. In 2000, the City prepared an analysis of its general fixed assets to determine the cost
basis of its equipment and furniture and the estimated value of ittJand and buildings. The other changes column above
represents the adjustment to the historical cost ofthe equipment and furniture. The analysis of the real property is not
yet complete,
NOTE 6 - LONG-TERM DEBT
Long-term debt as of September 30, 2000 is summarized as follows:
5.25% gas tax revenue note to a bank, payment of$99,682,
including interest, due semi-annually through December 30,
2004; collateralized by and payable from a pledge of the City's
share of the local option gas tax, municipal tax on motor fuels
and motor fuel rebate
$ 790,053
5.527% note to a bank, payment of $40,000, including interest,
due annually through October 1,2003 with final payment due
October 2004 of $27, 171; collateralized by annually budgeted
non-ad valorem revenues
160,755
~. 950.808
12
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 6 - LONG-TERM DEBT (Continued)
A summary of changes in all long-term debt for the year ended September 30, 2000 is as follows:
Balance at September 30, 1999
Payments
Net Change in Accrued Liabilities
Balance at September 30, 2000
Accrued
Liabilities
$ 177,191
(27,361)
tL49.830
GENERAL LONG-TERM DEBT
Municipal Gas Tax
Promissory Revenue
Note Note
$ 190,240 $ 941,717
(29,485) (151,664)
Notes
Total
$1,131,957
(181,149)
L95~-.8
The annual principal requirements and the annual requirements to amortize all debt outstanding, (including interest
payments aggregating $133,505) for the next five years and thereafter are as follows:
Year Ending
September 30,
2001
2002
2003
2004
2005
Municipal Promissory Note
Principal
and
Interest
$ 40,000
40,000
40,000
40,000
27,171
$18-'lilll
Principal
$ 31,086
32,827
34,641
36,457
25,744
U6Q.15j
~l~~
~39Q,Q5~
Gas Tax Revenue Note
Principal
and
Interest
$ 199,365
199,365
199,365
199,365
99,682
U-2LJ1l
Aggregate
Principal
and
Interest
$ 239,365
239,365
239,365
239,365
126,853
$1.084.31J
The Water and Sewer Refunding and Improvement Revenue Bonds, Series 1987, the Water and Sewer Improvement
Revenue Bonds, Series 1989, and the Water and Sewer Improvement Revenue Bonds, Series 1992A were defeased on
September 28, 1995 upon the transfer ofthe water and sewer system to the Okeechobee Utility Authority. Monies were
deposited in an irrevocable trust to provide for all future debt service payments on these bonds. Accordingly, trust assets
and liabilities for the defeased bonds are not included in the City's financial statements.
Principal
$ 160,066
168,472
177,433
186,843
97,239
$ 72QJL~
NOTE 7 -INTERFUND RECEIVABLES AND PAYABLES
Principal
$ 191,152
201,299
212,074
223,300
122,983
.~ ~50.80~
The following is a summary of amounts due from and due to other funds:
General fund
Fiduciary fund
Total all Funds
13
Due from
Other Funds
$
10,673
$JO.6'U
Due to
Other Funds
$10,673
tlM11
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30,2000
NOTE 8 - PENSION PLANS
The City has three pension plans covering substantially all the City's regular employees. The City of Okeechobee,
Florida Municipal Police Officers' and Municipal Firefighters' plans are under a single employer public employee
retirement system. The City of Okeechobee, Florida and Okeechobee Utility Authority General Employees' Pension
Trust is under a cost sharing multiple employer public employee retirement system and also covers substantially all of
the employees ofthe Okeechobee Utility Authority. The plans were established by the City in accordance with the City
charter and state statutes. Total pension contribution by the City for the year was $17,417 (the Utility Authority
contributed $29,751) based on a covered payroll and a total payroll as follows:
Police
Firefighters
General - City
General - Utility Authority
Covered
Payroll
$659,956
272,224
579,670
1,025,877
Total
Payroll
$659,956
341,540
629,485
1,178,032
Covered
Payroll as
Percent of
Total Payroll
100.0%
79.7%
92.1%
87.1%
The City and the Utility Authority fund the General pension plan at the rate of2.9% of covered payroll for participants.
The City funds the Police and Fire pension plans for any contribution deficit determined by actuarial valuation for the
Police and Firefighters' plans beyond the contributions by employees and the State Insurance premium tax contribution,
Employee contributions are at a rate of 6% of payroll (5% for police and firefighters),
All regular employees working over 20 hours per week are eligible to participate on the date of employment following
attainment of age 18. Participation is mandatory. Normal retirement is provided for at age 55 (age 65 for general) and
10 years of service (5 years for general), or at 25 years of service (30 years for general) regardless of age. The benefit is
calculated at 3.0% for police and firefighters, and 2.1 % for general, of average monthly earnings times years of
continuous service with the City. Benefits are payable by monthly annuity for 10 years certain and life thereafter with
other options available.
The Police Officers' benefits are based on total compensation, normal retirement is available at 25 years of service,
regardless of age, and the disability benefits are 42% and 25% of average final compensation for service and nonservice
connected disabilities, respectively.
Early retirement is provided for at age 50 (55 for general) and 10 years of participation. Death and disability benefits are
also available through the plans. Upon termination of employment with less than 10 years of service (5 years for
general) the plan refunds accumulated employee contributions. After 10 years of service (5 years for general) the
pension benefit is accrued to date of termination and payable at normal retirement age if employee contributions are left
in the fund.
The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same
as those used to compute the pension benefit obligation. The actuarially determined pension contributions for the year
ended September 30,2000 were as follows:
Police
Firefighters
General
$83,941
14,884
45,375
14
Ei .J,D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 8 - PENSION PLANS (Continued)
The employer and employee actual contributions for the year ended September 30,2000 were as follows:
Employer Employee
City $17,417 $ 90,471
Utility Authority 29,751 61 ,553
Totals $47,168 $152.024
The plans covering the City's firefighters and police officers are also funded by the State of Florida from a tax on fire
insurance and casualty insurance premiums collected. State contributions to the firefighters and police officers plans
totaled $60,079 and $89,070, respectively, during the year ended September 30, 2000, Contributions were made in
accordance with applicable Florida Statutes and meet the actuarially determined contribution requirements. These
amounts have been included in intergovernmental revenues and current expenditures in the governmental fund type.
At September 30, 2000, the Plans included the following:
Terminated members entitled to, but not receiving benefits
Retirees currently receiving benefits
Beneficiaries either receiving or entitled to receive benefits
Total active current employees (vested) (not vested)
Police Firefighters General
NA 1 1
NA 7
7 NA NA
19(7)(12) 10(3)(7) 60(27)(33)
Changes in benefits since the previous actuarial valuation were as follows:
· Normal retirement provided at age 55 (was 60) for police and firefighters
Principal actuarial assumptions used in the most recent actuarial valuation are summarized as follows. Effective October
1, 1999, the valuation asset method was changed from the average of market value and cost value method to a method
which recognizes actual investment return in excess of the assumed return evenly over a four year period. The fund
earnings assumption was also changed from 8.0% to 7.0% net of investment expenses.
Mortality - The 1983 Group Annuity Mortality Table.
Interest - 7% per year compounded annually, after paying investment management fees.
Retirement age - 60 for police officers and firefighters, 65 for all other employees; or immediately, if over assumed
retirement age.
Salary increases - 6% for police and general; 7% for firefighters, until the assumed retirement age.
Funding method - Aggregate actuarial cost method,
Administrative expense (other than investment management fees) - $12,000 for Police, $10,000
for Firefighters and $11,000 for General.
Inflation rate - 4%
15
e; .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
NOTE 8 - PENSION PLANS (Continued)
At the end of2000, the funds had assets in excess ofthe actuarial accrued liabilities, therefore, the disclosure regarding
the amortization method used for any unfunded actuarial liabilities is not applicable, Detailed information regarding
funding is contained in the supplementary information accompanying the financial statements.
Three year historical information is disclosed in the accompanying supplementary information. Ten year historical
information is included in the stand-alone audited financial statements of each plan which are available from the City of
Okeechobee, 55 S,E. Third A venue, Okeechobee, Florida 34974 (phone 863-763-3372).
NOTE 9 - GRANTS AND CONTRACTS
Local Law Enforcement Block Grants
During the year September 30,2000, the City was awarded a local Law Enforcement Block Grant (00-CJ-G3-07-57-02-
115) of $6,972 for acquisition of computers, which was expended in 2000.
During the year ended September 30, 1999, the City was awarded a Local Law Enforcement Block Grant (99-CJ-A2-07-
57-02-079) of $6,945 for police intoxilyzer and video equipment. The City expended the remaining $2,085 of the
monies in 2000.
Land Development Regulation
In 1997, the City entered into a highway maintenance agreement (contract #BA-920) with the State of Florida
Department of Transportation for an annual amount of$28,880. The contract is renewable annually, In 2000, $28,880
was recorded as reimbursement for expenditures incurred by the City relating to the project under this contract.
NOTE 10 - COMMITMENTS
In September 2000, the City executed a construction contract of$459,61 0 for renovation of a donated building to serve
as the police station. Construction commenced subsequent to September 30, 2000.
The City has contracts for engineering and maintenance projects at September 30,2000 in the normal course of business.
In 2000, the City executed a three year lease for police and other City vehicles. Payments under the lease are due in
quarterly installments of $15,000. The lease provides for termination based upon annual appropriations. The City
disposed of the vehicles and terminated the lease in March 2001. Rent expense under this and a previous lease was
$60,000 in 2000.
NOTE 11 - CONTINGENCIES
The City is exposed to various risks of loss, including, but not limited to theft, damage or destruction of its buildings,
equipment, records, and monetary assets, and liability for personal injury, property damage and consequences of
employee and public official actions. The City participates in a public risk pool to cover significant loss exposure, and
purchases commercial insurance for third party pollution liability coverage. There have been no significant reductions in
benefits and settlement arnounts have not exceeded coverage for the current year or the three prior years.
16
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
September 30,2000
NOTE 11 - CONTINGENCIES (Continued)
In 1999, the City became a member of Public Risk Management of Florida (PRM), an intergovernmental risk
management pool. PRM is a non-assessable pool, funded by its approximately 43 members which are all public
agencies of the State of Florida. PRM maintains a loss reserve and purchases specific excess insurance, aggregate excess
insurance and multiple loss coverage from commercial carriers or underwriters. If losses in anyone fiscal year
extinguish all available funds provided by the pool, then the members are individually responsible for claims.
The City's workers' compensation coverage in fiscal year 1997 was provided by Government Risk Insurance Trust
(GRIT) which filed for bankruptcy on March 17,2000. Because GRIT did not obtain reinsurance prior to July 1998, the
City could be responsible for claims for injuries sustained prior to that date. A City employee injured in 1997, will have
additional medical bills and lost wages from that incident and those costs could exceed $100,000. The City is evaluating
the potential liability, but no determination has been made of the future cost to the City.
The City is the defendant in a pending lawsuit for wrongful arrest with a claim for damages. The City and its liability
insurance carrier will vigorously defend the actions of the City; however, the outcome of the case is not determinable at
this time.
NOTE 12 - DISPOSITION OF UTILITY
In November 1994, the City entered into an interlocal agreement with Okeechobee County, Florida (the County)
creating the Okeechobee Utility Authority (OUA). The OUA was established for the purpose of acquiring, owning,
operating and maintaining a regional water and wastewater system for Okeechobee County and areas in the service area
of the Okeechobee Beach Water Association.
On September 28, 1995, the City transferred its water and sewer utility plant and related equipment, accounts receivable,
customer deposits and prepayments, and monies on deposit in the bond sinking and reserve funds to the OUA in
exchange for $3,000,000. The City also transferred certain real property that was not recorded in the fixed assets of the
proprietary fund. Certain other real property relating to the water and sewer utility operations was not transferred, but
perpetual easements were granted to the OUA.
17
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUE - BUDGET AND ACTUAL
Year Ended September 30, 2000
Variance
Favorable
Budget Actual (Unfavorable)
TAXES
Ad valorem taxes $ 934,610 $ 859,758 $ (74,852)
Franchise fees 288,000 297,257 9,257
Utility service taxes 408,000 423,255 15,255
Public service taxes 3,000 4,582 1,582
Insurance premium taxes 126,219 149,149 22,930
1,759,829 1,734,001 (25,828)
INTERGOVERNMENTAL
State shared revenue:
Local option gasoline tax 423,369 394,943 (28,426)
One-cent sales surtax 380,000 407,363 27,363
Cigarette tax - .02 70,000 60,713 (9,287)
Revenue sharing 169,000 193,915 24,915
Mobile home licenses 3,000 15,377 12,377
Alcoholic beverage licenses 1,000 1,463 463
One-half cent sales tax 240,000 251,404 11 ,404
Firefighters supplement 600 450 ( 150)
Gasoline tax refund 2,000 1,348 (652)
1,288,969 1,326,976 38,007
Shared revenue from other local units:
County occupational licenses 5,000 9,024 4,024
1,293,969 1,336,000 42,031
CHARGES FOR SERVICES
Sanitation fees 192,000 210,666 18,666
Highway maintenance contract 28,880 28,880
Railroad maintenance contract 4,600 5,750 1,150
Miscellaneous 240 1,143 903
225,720 246,439 20,719
18
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUE - BUDGET AND ACTUAL (CONTINUED)
Year Ended September 30, 2000
Budget
Actual
Variance
Favorable
(Unfavorable)
LICENSES AND PERMITS
Occupational licenses and regulatory fees
Building permits and fees
42,000
48,000
52,794
40,329
10,794
(7,671)
90,000
93,123
3,123
INTERGOVERNMENTAL
Court fines
Confiscated Property and Administration Fees
Radio communication
Police education
Code enforcement fines
Investigation cost reimbursement
20,000 18,643 (1,357)
10,600 10,600
1,500 8,038 6,538
125 310 185
500 305 (195)
100 36 (64)
22,225 37,932 15,707
195,425 258,811 63,386
INTEREST INCOME
GRANTS
FRDAP Grant
Public Safety Grant
Miscellaneous
50,000
13,131
6,972
5,000
(36,869)
6,972
5,000
50,000
25,103
(24,897)
MISCELLANEOUS
Sale of assets
Police Accident Reports
Refunds of prior year expenditures
Miscellaneous and other
Total Revenue
2,883 800 (2,083)
400 528 128
500 (323) (823)
5,100 6,908 1,808
8,883 7,913 (970)
$ 3,646,051 $ 3,739,322 $ 93,271
19
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
September 30, 2000
ENCUMBRANCES
AND INTEREST ACTUAL ON VARIANCE
BUDGETARY FAVORABLE
BUDGET ACTUAL 1999 2000 BASIS (UNFAVORABLE)
PUBLIC SAFETY
Law enforcement:
Personal services 902,502 923,822 923,822 (21,320)
Operating expenses 196,387 164,778 925 163,853 32,534
Capital outlay 6,200 10,716 4,695 6,021 179
Grants and aids 10,080 10,080 ( 10,080)
1,105,089 1,109,396 5,620 1,103,776 1,313
Fire control:
Personal services 610,279 597,955 597,955 12,324
Operating expenses 81,700 67,540 1,302 66,238 15,462
Capital outlay 18,195 16,970 16,970 1,225
710,174 682,465 1,302 681,163 29,011
Emergency and disaster relief:
Capital outlay 93,500 23,292 23,292 70,208
Total Public Safety 1,908,763 1,815,153 6,922 1,808,231 100,532
GENERALC~VERNMENT
Legislative:
Personal services 42,632 42,508 42,508 124
Operating expenses 14,000 16,886 16,886 (2,886)
56,632 59,394 59,394 (2,762)
Executive - city administrator:
Personal services 90,083 80,344 80,344 9,739
Operating expenses 17,650 17,338 17,338 312
Capital outlay 600 600 1,250 (650) 1,250
108,333 98,282 1,250 97,032 11,301
Executive - city clerk:
Personal serivces 84,783 75,349 75,349 9,434
Operating expenses 17,650 17,709 720 18,429 (779)
102,433 93,058 720 93,778 8,655
Financial and administrative:
Personal services 94,730 95,030 95,030 (300)
Operating expenses 35,700 41,684 41,684 (5,984)
Capital outlay 1,100 1,100 1,100
131,530 137,814 137,814 (6,284)
General services:
Personal services 77,453 62,70 I 62,701 14,752
Operating expenses 160,050 153,678 153,678 6,372
Capital outlay 1,200 2,250 2,250 (1,050)
238,703 218,629 218,629 20,074
Judicial:
Operating expenses 42,800 25,786 25,786 17,014
Total General Government 680,431 632,963 1,250 720 632,433 47,998
TRANSPORTATION
Road and street facilities:
Personal services 274,289 238,227 238,227 36,062
Operating expenses 237,450 220,518 640 16,052 235,930 1,520
Capital outlay 526,086 129,494 17,214 296,556 408,836 117,250
Total Transportation 1,037,825 588,239 17,854 312,608 882,993 154,832
PHYSICAL ENVIRONMENT
Garbage/solid waste control services:
Operating expenses 192,000 189,830 189,830 2,170
DEBT SERVICE
Principal 181,245 181,149 181,149 96
Interest 58,120 54,641 (10,522) (6,947) 58,216 (96)
Total Debt Service 239,365 235,790 (10,522) (6,947) 239,~65
TOTAL EXPENDITURES $ 4,058,384 $ 3,461,975 $ 15,504 $ 306,381 $ 3,752,852 305,532
20
Ei .J,D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
EMPLOYOEE PENSOIN TRUST FUNDS
COMBINING STATEMENTS OF PLAN NET ASSETS
ASSETS
Cash
Contributions Receivable
Investments (at fair value):
Cash Equivalents
Government and Agency Securities
Corporate Bonds
Corporate Stocks
Accrued Income
Total Investments
Total Assets
LIABILITIES
Accounts Payable
Net Assets Held in Trust for
Pension Benefits
Year Ended September 30,2000
Municipal
Police
Officers'
Pension
Trust Fund
Municipal
Fire-
Fighters'
Pension
Trust Fund
General
Employees'
Pension
Trust Fund
Total
$ 86,060 $ 57,199 $ 47,092 $ 190,351
2,163 1,212 19,854 23,229
44,886 22,299 42,523 109,708
921,101 309,865 888,218 2,119,184
422,615 198,495 477,522 1,098,632
2,279,387 878,436 2,274,794 5,432,617
21,286 7,990 19,760 49,036
3,689,275 1,417,085 3,702,817 8,809,177
3,777,498 1,475,496 3,769,763 9,022,757
7,207
4,166
7,233
18,606
$ 3,770,291
$ 1,471,330
$ 3,762,530
9,004,151
21
Gi .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
EMPLOYEE PENSION TRUST FUNDS
COMBINING STATEMENTS OF CHANGE IN PLAN NET ASSETS
Year Ended September 30, 2000
Municipal Municipal
Police Fire- General
Officers' Fighters' Employees'
Pension Pension Pension
Trust Fund Trust Fund Trust Fund Total
ADDITIONS
Contributions:
State Contribution $ 89,070 $ 60,079 $ $ 149,149
Employer Contributions 600 46,568 47,168
Employee Contributions 32,972 22,373 96,679 152,024
Total Contributions 122,042 83,052 143,247 348,341
Investment Income:
Net Appreciation in Fair Value of
Investments 21,911 5,415 27,281 54,607
Interest and Dividends 115,051 44,583 117,977 277,611
136,962 49,998 145,258 332,218
Less: Investment Expense (28,053) (10,763) (28,073) (66,889)
Investment Income, net 108,909 39,235 117,185 265,329
Total Additions 230,951 122,287 260,432 613,670
DEDUCTIONS
Benefits Paid to Participants 70,810 71,377 142,187
Refunds on Termination 7,784 4,834 30,737 43,355
Administrative Expenses 12,104 10,650 8,181 30,935
Total Deductions 90,698 15,484 110,295 216,477
Net Increase 140,253 106,803 150,137 397,193
NET ASSETS HELD IN TRUST FOR
PENSION BENEFITS
Beginning of year 3,630,038 1,364,527 3,612,393 8,606,958
End of year $ 3,770,291 $ 1,471,330 $ 3,762,530 $ 9,004,151
22
Ei .J,D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
EMPLOYEE PENSION TRUST FUNDS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
September 30,2000,1999 AND 1998
Municipal
Police Municipal General
Officers' Firefighters' Employees'
Pension Pension Pension
Trust Fund Trust Fund Trust Fund
Actuarial Valuation Date 2000 2000 2000
Actuarial Value of Plan Assets $ 3,850,889 $ 1,498,686 $ 3,840,131
Actuarial Accrued Liability (AAL) - Entry Age 2,801,347 827,336 3,205,183
Total Overfunded AAL $ 1,049,542 $ 671,350 $ 634,948
Actuarial Value of Assets as a Percentage of
the AAL (Percent Funded) 137.5% 181.1% 119,8%
Annual Covered Payroll $ 659,956 $ 272,224 $ 1,669,598
Ratio of Overfunded AAL to Annual Covered
Payroll (as a percentage) 159.0% 246.6% 38.0%
Actuarial Valuation Date 1999 1999 1999
Actuarial Value of Plan Assets $ 3,589,546 $ 1,340,127 $ 3,577,597
Actuarial Accrued Liability (AAL) - Entry Age 2,665,193 653,420 2,878,747
Total Overfunded AAL $ 924,353 $ 686,707 $ 698,850
Actuarial Value of Assets as a Percentage of
the AAL (Percent Funded) 134.7% 205.1% 124.3%
Annual Covered Payroll $ 615,832 $ 264,778 $ 1,519,065
Ratio of Overfunded AAL to Annual Covered
Payroll (as a percentage) 150.1% 259.4% 46.0%
Actuarial Valuation Date 1998 1998 1998
Actuarial Value of Plan Assets $ 2,745,519 $ 1,000,779 $ 2,742,164
Actuarial Accrued Liability (AAL) - Entry Age 2,184,269 451,048 2,190,008
Total Overfunded AAL $ 561,250 $ 549,731 $ 552,156
Actuarial Value of Assets as a Percentage of
the AAL (Percent Funded) 125,7% 221.9% 125.2%
Annual Covered Payroll $ 601,783 $ 261,670 $ 1,353,672
Ratio of Overfunded AAL to Annual Covered
Payroll (as a percentage) 93.3% 210.1% 40.8%
NOTE: Additional historical and trend information is included in the stand-alone audited financial statements of
each plan. These statements are public ally available by contacting the City ofOkeechobee, 55 S.E. Third Avenue
Okeechobee, Florida 34974 (phone 863-763-3372),
23
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AND
STATE FINANCIAL AWARDS
Year Ended September 30, 2000
Federal or State
Grantor/
Program Title
Federal
CFDA No.
Cash (Receivable)
October 1,
1999
Beginning
Balance Receipts
Expenditures
Cash (Receivable)
September 30,
2000
Ending
Balance
A ward
Amount
u.s. DEPARTMENT OF JUSTICE
Passed through State Department of
Community Affairs
Local Law Enforcement Block Grant
#00CJ-GJ-07-57-02-115
#99CJ-A2-07 -57 -02-079
16.592
16.592
$ 6,972
$ 6,945 $
$ 6,972 $
2,085 $ $
6,972 $
2,085 $
FLORIDA DEPARTMENT OF
ENVIRONMENTAL PROTECTION
FRDAP Project #F20 112
NA
$ 50,000 $
$
$ 13,131 $
(13,131)
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL
AND STATE AWARDS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
The Schedule of expenditures of federal and state awards is a summary of the activity in the City's federal and state award
programs presented on the accrual basis of accounting in accordance with generally accepted accounting principles.
NOTE 2 - LOCAL LAW ENFORCEMENT BLOCK GRANTS
In accordance with the terms of the grants, the City has expended matching contributions totaling $906 during the year
ended September 30, 2000.
NOTE 3 - FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION GRANT
In 1999, the City was granted a $50,000 grant under the Florida Recreation Development Assistance Program (FRDAP) to
construct a park on land donated to the City. The project was completed in November 2000, and the funds were received
after completion.
24
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
SUMMARY OF INSURANCE COVERAGE - UNAUDITED
September 30, 2000
DESCRIPTION
PROPERTY:
Buildings ($500 deductible)
Contents ($500 deductible)
Business Income/Extra Expense
INLAND MARINE ($500 deductible):
Receivables and Valuable Papers
Street and Highway Equipment
Miscellaneous Property
Electronic Data Processing
BOILER AND MACHINERY ($1,000 deductible)
COMMERCIAL CRIME ($500 deductible):
Public Employees Faithful PerformanceiEmployee Dishonesty
Forgery, Alteration, Theft, Distruction
GENERAL LIABILITY LIMIT
UMBRELLA/EXCESS
VEHICULAR EQUIPMENT:
Bodily Injury and Property Damage
Collison ($500 deductible)
Comprehensive ($500 deductible)
PUBLIC OFFICIAL LIABILITY (no deductible)
WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY
THIRD PARTY POLLUTION LIABILITY COVERAGE ($10,000 deductible)
25
COVERAGE
$
$
$
1,166,200
355,100
2,000,000
$ 2,000,000
$ 189,500
$ 67,084
$ 100,000
$ 2,000,000
$
$
25,000
25,000
$
2,000,000
$
2,000,000
$
2,000,000
$
2,000,000
$
2,000,000
$
1,000,000
Ei .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF ASSESSED VALUES, TAX LEVIES AND RATES - UNAUDITED
1991 - 2000
FISCAL REAL PERSONAL HOMESTEAD
YEAR PROPERTY PROPERTY TOTAL EXEMPTION
2000 $ 136,898,668 $ 38,414,243 $ 175,312,911 $ 27,542,215
1999 128,792,388 38,720,585 167,512,973 27,195,529
1998 124,144,705 34,967,816 159,112,521 27,195,529
1997 124,437,676 31,912,944 156,350,620 27,180,431
1996 121,623,003 27,473,001 149,096,004 26,195,730
1995 112,605,782 27,593,835 140,199,617 26,108,828
1994 112,759,343 23,222,652 135,981,995 25,365,390
1993 109,479,471 23,748,480 133,227,951 25,288,396
1992 112,820,753 22,702,940 135,523,693 24,745,181
1991 106,606,185 21,489,024 128,095,209 24,718,577
TAX LEVIES AND APPLICABLE RATES
LEVIES RATES
DEBT GENERAL
FISCAL DEBT GENERAL SERVICE GOVERNMENT
YEAR SERVICE GOVERNMENT MILLS MILLS
2000 $ $ 849,414 .000 5.4399
1999 823,915 .000 5.4399
1998 785,999 .000 4,9399
1997 616,021 .000 3.940
1996 46,604 602,080 .260 3.940
1995 23,470 675,914 ,170 4,940
1994 48,006 664,734 .300 4.940
1993 61,821 552,896 .390 4.150
1992 62,523 562,423 .390 4.150
1991 59,597 531,595 .390 4.150
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C!i .J.D. GILBERT & COMPANY
CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF CERTAIN REVENUE - UNAUDITED
1991 - 2000
GENERAL FUND
State
Revenue
Sharing Occupational Utility Franchise Fines and
Year (Note) Licenses Taxes Fees Forfeitures Interest
2000 $ 506,032 $ 52,794 $ 423,255 $ 297,257 $ 37,932 $ 258,811
1999 493,338 53,570 419,931 292,679 38,881 242,4 73
1998 480,821 48,926 413,247 291,073 25,471 256,060
1997 469,287 47,914 395,437 323,254 38,782 267,825
1996 461,371 52,714 416,880 304,600 35,376 261,338
1995 449,994 40,366 398,522 285,257 33,691 82,613
1994 442,009 40,517 388,291 281,300 22,456 44,998
1993 446,009 36,973 370,882 278,668 28,654 24,438
1992 425,807 45,002 292,615 272,414 44,615 29,246
1991 422,873 34,565 287,490 289,239 45,107 32,541
NOTE - INCLUDES ADDITIONAL TWO CENT CIGARETTE TAX AND HALF-CENT SALES TAX
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Ei .J.D. GILBERT & COMPANY
~.D. GILBERT & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
600 West Hillsboro Blvd., Suite 510, Oeerfield Beach, Florida 33441 . (9541419-1000 . Fax (9541 419-1040
Toll Free (8881 419-2727 . E-Mail cpas@jdgilbert.com
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and
Members of the City Council
City of Okeechobee, Florida
We have audited the financial statements of the City of Okeechobee, Florida (City) as of and for the year ended
September 30, 2000, and have issued our report thereon dated March 26, 2001, which was qualified as discussed therein.
Except as discussed in our auditors' report, we conducted our audit in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants,
noncompliance with which could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to
be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting in order to
detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to
provide assurance on the internal control over financial reporting. However, we noted certain matters involving the
internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable
conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the
internal control over financial reporting that, in our judgment, could adversely affect the City's ability to record, process,
summarize and report financial data consistent with the assertions of management in the financial statements.
Reportable conditions are described in the accompanying schedule of findings and questioned costs as items 00-1
through 00-3.
A material weakness is a condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. Our consideration of the internal control over financial reporting would
not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not
necessarily disclose all reportable conditions that are also considered to be material weaknesses, However, none of the
reportable conditions described above are considered to be material weaknesses. We also noted other matters involving
the internal control over financial reporting that we have reported to management of the City ofOkeechobee, Florida in
a separate letter dated March 26, 2001.
This report is intended for the information of the audit committee, management and federal awarding agencies, pass-
through entities and the Auditor General of the State of Florida.
March 26, 2001
9-/J.~/~
28
Arnerican Institute of Certified Public Accountants . Florida Institute of Certified Public Accountants
CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended September 30,1999
SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of auditor's report issued: qualified
Internal control over financial reporting:
Material weakness( es) identified?
Reportable condition(s) identified
not considered to be material weaknesses?
-yes -K. no
lyes _none reported
Noncompliance material to financial statements noted?
_yeslno
Federal Awards
Internal Control over major programs:
Material weakness(es) identified?
Reportable condition(s) identified
not considered to be material weaknesses?
-yeslno
_yes lnone reported
Type of auditor's report issued on compliance for
major programs: unqualified
Any audit findings disclosed that are required to be reported
in accordance with Circular A-133, Section .51O(a)?
-yeslno
Identification of major program:
CFDA Number
None
Name of Federal Program or Cluster
Dollar threshold used to distinguish between Type A and
Type B programs:
$ 300,000
Auditee qualified as low-risk auditee?
_yeslno
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Ei .J.D. GILBERT & COMPANY
SECTION II - FINANCIAL STATEMENT FINDINGS
00-1 Fixed Assets Group
Condition: The City has not maintained adequate detailed fixed asset records in support of the recorded costs of the real
property assets included in the general fixed assets group of accounts, The city contracted with a firm to evaluate the
historic cost or donated value of all existing physical assets of the City; the project was not completed, The City did
receive an insurance valuation for buildings in 1999. In 2000, the City prepared a schedule ofland holdings with
assessed values per the 1999 tax roll. These schedules have not been compared to the recorded assets.
Context: We were unable to obtain sufficient supporting documentation to form an opinion with respect to the stated
costs of real property acquired.
Recommendation: The schedule of land holdings prepared by the City clerk should be used to evaluate the recorded cost
of land holdings. Additionally, the City should compare the insurance values for the buildings with recorded historical
costs. Where historical cost cannot be determined, a discount factor should be applied to the current value to estimate
the historical cost.
Management's Response: The City council passed a resolution in September 2001 authorizing the administrator and
staff to prepare a schedule of historical and insurance value of assets. The staff has completed the preliminary step of
scheduling current values and will address historical cost and estimated costs during 200 I.
00-2: General Lede:er
Condition: The City's reconciliations of the manual and computerized subsidiary ledgers to the general ledger control
accounts are not done on a routine basis. If such reconciliations were done monthly, discrepancies could be corrected on
a current basis.
Context: The City utilizes a third-party software package to maintain its general ledger. While the accounts payable
system interfaces with the general ledger, there exists a small differences between the detail listings for this and for other
accounts that are maintained manually, While these differences are not large, the potential for larger differences does
exist.
Recommendation: We recommend the City reconcile all subsidiary accounts on a monthly basis.
Management's Response: The City reviews the general ledger control accounts periodically during the year. These
reconciliations will be done on a quarterly or monthly basis, as necessary, in 2001.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters are reported.
SECTION IV - STATE A WARD FINDINGS AND QUESTIONED COSTS
00-3: Grant Reportine:
Condition: The City prepared the "Detail of Operating Capital Outlay" form LLEBGP-OOl(E) for the Local Law
Enforcement Block Grant #00CJ-G3-07-57-02-115 to complete the grant procedures, We noted that the description of
the computer equipment acquired with the grant did not agree with the description of the computer equipment acquired
on the vendor invoice,
Context: The Form LLEBGP contained a typographical error in reporting the number of computers acquired. Once this
error was discovered, the discrepancy between the Form LLEBGP and the vendor invoice concerned the specifications
of the computers acquired. Based upon the equipment on-site, the vendor invoice was in error on the specifics, but not
in the quantities.
30
Ei .J.D. GILBERT & COMPANY
SECTION IV - STATE A WARD FINDINGS AND QUESTIONED COSTS (Continued)
00-3: Grant Reporting (Continued)
Recommendation: The City should ensure that grant reports and vendor invoices support the actual service or property
acquired with the grant funds.
Management's Response: The Form LLEBGP contained a typographical error in under-reporting the number of
computers acquired with the grant; however, the monies expended and equipment specifications were accurate.
31
Ei .J.D. GILBERT & COMPANY
~.D. GILBERT & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
600 West Hillsboro Blvd., Suite 510, Oeerfield Beach, Florida 33441 . (9541419-1000 . Fax [954J 419-1040
Toll Free (888J 419-2727 . E-Mail cpas@jdgilbert.com
Management Letter
The Honorable Mayor and
Members of the City Council
City of Okeechobee, Florida
We have audited the combined financial statements of the City of Okeechobee, Florida (City) for the year ended
September 30, 2000, and have issued our report thereon dated March 26, 2001. We did not audit the financial
statements of the Employee Benefit Trust included in the combined financial statements. The following comments are
submitted in accordance with the Rules of the Auditor General of the State of Florida, Chapter 10.550. Additional
comments on the internal control structure appear in a schedule of findings and questioned costs.
Prior Year Irre!!ularities
There were no irregularities reported in the preceding financial audit to correct.
~
Status of Prior Year Recommendations
The items 99-3 and 99-4 included in the 1999 "Schedule of Findings and Questioned Costs" have been resolved in the
current year. The portion of 99-1 relating to personal property was resolved in the current year. For item 99-2, the
issues have been resolved in the current year except for the regular reconciliation of manual subsidiary ledgers
The City has addressed those items regarding city use of credit cards, receipt of garbage billing ledgers, pension plan
reports and federal reporting included in "recommendations for improvement" of the prior year management letter, all
other comments are repeated herein,
Consideration of Financial Emer!!encv
The City is not, nor at any time during the year ended September 30,2000 was, in a state of financial emergency as a
consequence of conditions described in Chapter 218.503, Florida Statutes.
Florida Department of Bankin!! and Finance Annual Financial Report
The annual financial report to be filed with the Florida Department of Banking and Finance pursuant to Section
218.32(1 )(b) Florida Statutes is in agreement with the audited financial statements and is expected to be filed on a timely
basis.
Recommendations for Improvement
Accounts Receivable - Garbage - The City should periodically review the billing procedures and detail billing reports
generated by the OUA to ensure that all customers are being billed and that billed amounts are proper. The City should
also evaluate old uncollected receivables for potential write-off or collection efforts.
General Ledger - We noted that transactions in the general ledger are not necessarily posted on the date they occur.
Instead, most entries carry a date ofthe end of the month or, in the case of po stings from accounts payable, some other
date. Cash receipts should be posted using the date received and, generally, invoices should be posted based upon
invoice date and disbursements on the check date. Additionally, correcting entries should include a description of the
date of the original transaction, for proper tracking, The general ledger serves as the primary record of the financial
transactions of the City, and as such should contain a clear record ofthose transactions. While improvement was noted
in this area in the current year, further improvement can be made.
32
Arnerican Institute of Certified Public Accountants . Florida Institute of Certified Public Accountants
Payroll Taxes -In September 2000, the Internal Revenue Service (IRS) visited the City to review its payroll tax filings
for calendar years 1998 and 1999. At the conclusion of their procedures they requested a check for $13,171, but did not
provide the City with a report ofthe findings. Additionally, they did not reconcile the quarterly payroll tax filings with
the earnings statements issued at the end of the calendar years to the employees. To determine the accuracy ofthe IRS
assessment of additional taxes, penalties and interest, the City should request a formal report on the results of the
procedures. This report should be compared to the general ledger as well as the year end payroll tax filings. The City
can then evaluate whether an overpayment has been made, or if it has reason to request an abatement of penalties
assessed.
Violations of Laws, Rules and Regulations
We did not become aware of any violations of laws, rules, and regulations during the course of our audit.
Illegal or Improper Expenditures
We did not become aware of any illegal or improper expenditures during the course of our examination,
* * *
This letter is intended solely for the use of the Mayor and City Council, management and the Auditor General of the
State of Florida.
~AQ~/~
March 26, 200 I
33
Ei .J.D. GILBERT & COMPANY