OUA Audit Report 9-30-2021
OKEECHOBEE UTILITY AUTHORITY
FINANCIAL STATEMENTS WITH INDEPENDENT
AUDITOR’S REPORT THEREON
SEPTEMBER 30, 2021
OKEECHOBEE UTILITY AUTHORITY
SEPTEMBER 30, 2021
TABLE OF CONTENTS
Pages
Independent Auditor's Report 1 - 3
Management’s Discussion and Analysis (required supplementary information) 4 - 9
Basic Financial Statements:
Statement of Net Position 10- 11
Statement of Revenues, Expenses, and Changes in Net Position 12
Statement of Cash Flows 13-14
Statement of Fiduciary Net Position 15
Statement of Changes in Fiduciary Net Position 16
Notes to Financial Statements 17-42
REQUIRED SUPPLEMENTAL INFORMATION
Schedule of Changes in Total OPEB Liability 43
Schedule of Changes in Net Pension Liability and Related Ratios 44
Schedule of Employer Contributions and Investment Returns 45
Notes to the Schedule of Contributions 46
OTHER INFORMATION
Schedule of Revenues and Expenses 47
Information Required by Section 218.39(3)(c), Florida Statutes 48
Budgetary Schedule 49
OKEECHOBEE UTILITY AUTHORITY
SEPTEMBER 30, 2021
TABLE OF CONTENTS
(Continued)
Pages
OTHER REPORTS
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and on Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 50-51
Independent Auditor’s Report on Compliance for Each Major
State Project and on Internal Control Over Compliance
Required by Chapter 10.550, Rules of the Auditor General 52-54
Schedule of Expenditures of State Financial Assistance 55
Schedule of Findings and Questioned Costs 56-57
Management Letter in Accordance with the Rules of the Auditor General
of the State of Florida 58-60
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes 61
1
INDEPENDENT AUDITOR’S REPORT
The Honorable Chairman and Members of the
Okeechobee Utility Authority Board
Okeechobee, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the proprietary fund and aggregate
remaining fund information of the Okeechobee Utility Authority as of and for the year ended
September 30, 2021, and the related notes to the financial statements, which collectively
comprise the Okeechobee Utility Authority’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
2
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the proprietary fund and the aggregate remaining fund
information of the Okeechobee Utility Authority as of September 30, 2021, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 4 through 9, the schedule of changes in the total
OPEB liability on page 43, and the pension schedules on pages 44 through 46 be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Okeechobee Utility Authority’s basic financial statements. The
schedule of expenditures of state financial assistance on page 55 is presented as required by
Chapter 10.550, Rules of the Auditor General, the schedule of revenues and expenses on page 47
is presented for purposes of additional analysis, and the information on pages 48 and 49 is
presented for compliance with Section 218.39(3)(c), Florida Statutes and are not required parts
of the basic financial statements.
3
The schedule of expenditures of state financial assistance is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The schedules and information on pages 47 to 49 have not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 7, 2022, on our consideration of the Okeechobee Utility Authority’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, grant agreements and other matters. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Okeechobee Utility Authority’s internal control over
financial reporting and compliance.
West Palm Beach, Florida
March 7, 2022
4
Okeechobee Utility Authority
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2021
Management’s Discussion and Analysis (MD&A) is intended to provide an objective analysis of the
Okeechobee Utility Authority (the “Authority”) financial activities for fiscal year ended September 30,
2021. The analysis provides summary financial information for the Authority and should be read in
conjunction with the audited financial statements.
FINANCIAL HIGHLIGHTS
The Authority’s assets exceeded its liabilities at September 30, 2021, by $56 million (Net Position).
Of this amount, approximately $5.3 million is its unrestricted net position (Table 1).
The Authority’s operating revenues increased $728,000 over FY2020 and operating expenses
decreased by $849,000 from FY2020 (Table 2).
Operating expenses were $2.1 million less than budget.
The Authority received $1,500,000 in capital grant funding from the Florida Department of
Environmental Protection to help pay for the 1) Septic to Sewer project referred to as the Southwest
Wastewater Service Area, 2) expanding the wastewater collection system for Pine Ridge Park
community and 3)the experimental Algae-wheel system to treat wastewater at the Lakeview Estates
community.
The Authority’s total capital assets, before accumulated depreciation, increased by approximately
$7 million from FY2020 (Table 3).
OVERVIEW OF THE FINANCIAL STATEMENTS
This management discussion and analysis (MD&A) is intended to serve as an introduction to the
Authority’s financial statements. Since the Authority is a special district involved solely in the
provision of water and wastewater services within the service area of the utility system, its operations
are accounted for in a Proprietary Fund, specifically an Enterprise Fund. Enterprise Funds are used to
report business-type functions, which recover all or a significant portion of their costs through user fees
and charges. Over time, significant changes in the Authority’s net position serve as a useful indicator
of whether its financial health is improving or deteriorating. To fully assess the financial health of any
entity, the reader must also consider other non-financial factors such as changes in economic
conditions, customer growth, and legislative mandates.
The Okeechobee Utility Authority Employees’ Retirement System is a component unit of the Authority
as it is fiscally dependent on and imposes a specific financial burden. It is reported in the Authority’s
financial statements as a Fiduciary Fund, the Employee’s Pension Trust Fund. Fiduciary Funds are not
included in the government-wide financial statements because the Authority cannot use these assets to
finance its operations. Therefore, there are no government-wide financial statements, as they would
be redundant to the fund financial statements.
5
REQUIRED FINANCIAL STATEMENTS
The financial statements report information about the Authority using accounting methods similar to
those used by private business entities. The costs of providing goods or services are primarily
recaptured primarily through user charges for water and wastewater services. The full accrual basis of
accounting is used whereby revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows.
The Statement of Net Position includes the Authority’s assets, deferred outflows of resources,
liabilities, and deferred inflows of resources. It provides information about the nature and amounts of
investments in resources (assets) and the obligations to creditors (liabilities). It also provides the basis
for evaluating the capital structure of the Authority and assessing the liquidity and financial flexibility
of the Authority. The current year’s revenues and expenses are accounted for in the Statement of
Revenues, Expenses and Changes in Net Position. This statement measures the results of the
Authority’s operations over the past year and may be used to determine whether the Authority is
efficiently recovering all its costs through its user fees and other charges. These two statements help
the reader understand the Authority’s profitability and credit worthiness.
The third required financial statement is the Statement of Cash Flows. The primary purpose of this
statement is to provide information about the Authority’s cash receipts and cash payments during the
reporting period. This statement reports cash receipts, cash payments, and net changes in cash resulting
from operating, investing and financing activities. Answers to questions regarding sources of cash,
uses of cash, and changes in cash balances during the reporting period may be found in the Statement
of Cash Flows.
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the financial statements.
FINANCIAL ANALYSIS OF THE AUTHORITY AS A WHOLE
The Statement of Net Position and the Statement of Revenues, Expenses and Changes in Net Position
report information about the Authority’s activities in a way that reflects whether the Authority is
improving or deteriorating as a result of the fiscal year’s activities. These two statements report the
net position of the Authority and changes in the net position. Viewing the Authority’s net position
helps one to evaluate the financial health and financial position of the Authority. Net position is the
difference between assets and deferred outflows of resources (what is owned) and liabilities and
deferred inflows of resources (what is owed).
6
FY2021 FY2020 Net Change Percent
Net Capital Assets 63,173,569$ 62,839,322$ 334,247$ 0.53%
Restricted Assets 6,089,584 5,034,317 1,055,267 20.96%
Current and Other Assets 8,972,526 7,034,423 1,938,103 27.55%
Total Assets 78,235,679 74,908,062 3,327,617 4.44%
Total Deferred Outflows 692,070 889,454 (197,384) -22.19%
Noncurrent Liabilities 17,577,792 19,761,202 (2,183,410) -11.05%
Liabilities Payable from
Restricted Assets 642,291 590,071 52,220 8.85%
Current Liabilities 2,914,167 2,769,384 144,783 5.23%
Total Liabilities 21,134,250 23,120,657 (1,986,407) -8.59%
Total Deferred inflows 1,641,218 571,809 1,069,409 187.02%
Net Investment in Capital Assets 44,731,657 42,498,667 2,232,990 5.25%
Restricted for Capital Projects 2,361,411 2,168,736 192,675 8.88%
Restricted for Debt Service 481,018 99,091 381,927 385.43%
Restricted for Rate Stabilization 1,339,359 1,890,225 (550,866) -29.14%
Restricted for Pension Benefits 1,904,107 286,195 1,617,912 565.32%
Unrestricted Net Position 5,334,729 5,162,136 172,593 3.34%
Total Net Position 56,152,281$ 52,105,050$ 4,047,231$ 7.77%
Table 1
Net Position
The Authority’s total net position increased $4,047,231. The condensed analysis below focuses on the
Authority’s net position (Table 1) and changes in net position from fiscal year 2020 to fiscal year 2021.
7
A comparison of the Authority’s revenues and expenses for the fiscal years ended September 30, 2021
and September 30, 2020 is as follows (Table 2):
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2021, the Authority had $63,173,569 after accumulated depreciation invested
in a broad range of utility capital assets including land, ground water plant, surface water plant, water
main system, wastewater plant, lift stations, sanitary sewer system, force mains, equipment and
construction in process.
FY2021 FY2020 Net Change Percent
Revenue
Water System Revenue 6,949,975$ 6,500,587$ 449,388$ 6.91%
Wastewater System Revenue 4,105,049 3,856,063 248,986 6.46%
Miscellaneous Revenue 201,232 172,391 28,841 16.73%
Non-Operating Revenue 47,914 199,322 (151,408) -75.96%
Total Revenue 11,304,170 10,728,363 575,807 5.37%
Expenses
Operating Expenses 8,539,898 9,389,095 (849,197) -9.04%
Non-Operating Expenses 523,113 668,593 (145,480) -21.76%
Total Expenses 9,063,011 10,057,688 (994,677) -9.89%
Excess Revenue over Expenses
Before Capital Contributions 2,241,159 670,675 1,570,484 234.16%
Capital Contributions 1,806,072 1,435,049 371,023 25.85%
Total Change in Net Position 4,047,231 2,105,724 1,941,507 92.20%
Beginning Net Position 52,105,050 49,999,326 2,105,724 4.21%
Ending Net Position 56,152,281$ 52,105,050$ 4,047,231$ 7.77%
Table 2
Revenues and Expenses
8
The Authority’s total capital assets increased after accumulated depreciation from last year by
approximately $334,000 as reflected in the following table (Table 3):
FY2021 FY2020 Net Change
Land and Easements 2,777,823$ 2,743,323$ 34,500$
Buildings 1,108,764 1,108,764 -
Equipment 4,385,822 4,142,602 243,220
Distribution & Collection System 100,977,101 94,222,095 6,755,006
109,249,510 102,216,784 7,032,726
Lease Accumulated Depreciation (48,883,333) (46,536,468) (2,346,865)
60,366,177 55,680,316 4,685,861
Construction in Process 2,807,392 7,159,006 (4,351,614)
63,173,569$ 62,839,322$ 334,247$
Table 3
Changes in Capital Assets
The Authority plans each year for capital improvement projects. Some projects are completed within
the fiscal year, and other projects take longer than a year to complete. In fiscal year ended September
30, 2021 the surface water treatment plant completed construction of a three-million-gallon storage
water tank at a cost of approximately $5.7 million. The Lakeview Estates Wastewater Facility and the
Oak Lake Estates Wastewater expansion projects will be completed during fiscal year September 30,
2022.
Table 4 below reflects future major additions and the costs incurred as of September 30, 2021.
Table 4
Capital Improvement Projects
Lakeview Estates Wastewater Facility $ 878,255
Pine Ridge Park Wastewater expansion 249,550
Oak Lake Estate Wastewater expansion 518,773
SW Wastewater Area Septic to Sewer 939,115
441 SE/36th Ave Water main replacement 131,715
Other Projects 89,984
Total Ongoing CIP Projects $ 2,807,392
See Notes to the Financial Statements (Note 6) for additional information related to capital assets.
9
Debt Management
On September 30, 2021, the Authority had State Revolving Loans and notes payable outstanding in the
amount of $18,995,700. The total principal repaid in FY2021 was $2,028,143. See Notes to the
Financial Statements (Note 7) for additional information related to State Revolving Loans and notes
payable.
ECONOMIC FACTORS AND ASSESSMENT OF GROWTH
The Authority began operations in 1995. Since 1995, the net increase in new customer accounts has
been modest on an annual basis. In the most recent fiscal year ended September 30, 2021, capital
connection charge revenues for 33 water and 30 wastewater residential connections were received.
Florida’s rural central areas do not experience the same rate of growth as both the Atlantic and Gulf
coastal areas. Given current economic environment, a modest growth in the number of connections is
anticipated to be realized from new construction on vacant sites in the existing developed sections of
the Authority’s service area rather than through planned new developments.
The City of Okeechobee is approximately forty-five minutes to one hour from the Atlantic coast. The
main east and west access highways to the Atlantic coastal area are State Road 70 and State Road 710.
As such, the Okeechobee Utility Authority’s service area is within a commutable range of the Atlantic
coast and its life style.
The Authority’s current water treatment plants with a total treatment capacity of six million gallons per
day (6mgd) can accommodate approximately twenty-four thousand (24,000) residential water
connections, which is greater than the existing customer base of approximately nine thousand five
hundred sixty-nine (9,602) residential connections. The Authority’s current wastewater treatment plant
with three million gallons per day (3mgd) of total treatment capacity can accommodate approximately
twelve thousand (12,000) additional wastewater customers, which is greater than the existing customer
base of approximately four thousand four hundred fifty-three (4,483). In the near-term projection of
five years, this available capacity is more than adequate to accommodate the projected level of
customer growth.
This MD&A report is designed to provide a general overview of the Okeechobee Utility Authority’s
financial health for those interested in the Authority’s financial condition. Questions concerning the
information provided in this report or requests for additional information should be addressed to
the Finance Director, 100 SW 5th Avenue, Okeechobee, Florida, 34974-4221. An audit of the financial
statements for the Authority may be obtained at the Main Office of the Authority.
THIS PAGE INTENTIONALLY LEFT BLANK
OKEECHOBEE UTILITY AUTHORITY
Statement of Net Position - Proprietary Fund
September 30, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents 5,279,175$
Restricted assets:
Cash and cash equivalents - customer deposits 638,602
Receivables:
Grants 1,144,767
Accounts receivable, less allowance for
uncollectible accounts of $179,656 1,273,400
Inventories 579,462
Prepaid expenses 57,120
Total current assets 8,972,526
NONCURRENT ASSETS
Restricted assets:
Cash and cash equivalents 4,185,477
Net pension asset 1,904,107
Capital assets:
Land 2,777,823
Utility plants 106,471,687
109,249,510
Less accumulated depreciation (48,883,333)
60,366,177
Construction in progress 2,807,392
Total capital assets 63,173,569
Total noncurrent assets 69,263,153
TOTAL ASSETS 78,235,679
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 138,282
Deferred loss on bond refunding, net 553,788
TOTAL DEFERRED OUTFLOWS OF RESOURCES 692,070
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LIABILITIES
CURRENT LIABILITIES
Accounts payable 544,944$
Accrued expenses 104,720
Due to other governments 31,689
Bonds payable (current)2,073,096
Accrued compensated absences (current)79,398
Unearned connection fees 80,320
Payable from restricted assets:
Accrued interest 3,689
Customer deposits 638,602
Total current liabilities 3,556,458
NONCURRENT LIABILITIES
Long-term portion of bonds payable 16,922,604
Long-term portion of compensated absences 185,263
Total OPEB liability 45,523
Unearned revenues:
Developer fees 424,402
Total noncurrent liabilities 17,577,792
TOTAL LIABILITIES 21,134,250
DEFERRED INFLOWS OF RESOURCES
Pension related items 1,641,218
NET POSITION
Net investment in capital assets 44,731,657
Restricted for capital projects 2,361,411
Restricted for debt service 481,018
Restricted for rate stabilization 1,339,359
Restricted for pension benefits 1,904,107
Unrestricted 5,334,729
TOTAL NET POSITION 56,152,281$
See notes to the financial statements.
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OKEECHOBEE UTILITY AUTHORITY
Statement of Revenues, Expenses, and Changes in Net Position -
Proprietary Fund
For the Fiscal Year Ended September 30, 2021
OPERATING REVENUE
Water system charges for services 6,949,975$
Wastewater system charges for services 4,105,049
Penalties and late charges 121,010
Miscellaneous 80,222
Total operating revenues 11,256,256
OPERATING EXPENSES
Water services 1,327,971
Wastewater services 895,605
Maintenance 1,884,663
Meter reader 207,587
Administrative and general 1,593,220
Depreciation and amortization 2,630,852
Total operating expenses 8,539,898
OPERATING INCOME 2,716,358
NONOPERATING REVENUES (EXPENSES)
Interest revenue 47,914
Interest expense (523,113)
Total nonoperating revenues (expenses)(475,199)
INCOME BEFORE CAPITAL CONTRIBUTIONS 2,241,159
CAPITAL CONTRIBUTIONS
Capital grants 1,497,834
Water capital connection fees 83,437
Wastewater capital connection fees 146,781
Developer contributions for capital projects 78,020
Total capital contributions 1,806,072
INCREASE IN NET POSITION 4,047,231
NET POSITION, BEGINNING OF PERIOD 52,105,050
NET POSITION, END OF PERIOD 56,152,281$
See notes to the financial statements.
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OKEECHOBEE UTILITY AUTHORITY
Statement of Cash Flows - Proprietary Fund
For the Fiscal Year Ended September 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 11,209,636$
Payments to suppliers (2,949,377)
Payments to employees (2,531,089)
Payments for employee benefits (915,190)
Net cash provided (used) by operating activities 4,813,980
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,887,078)
Note and loan principal payments (2,028,143)
Note and loan interest paid (394,168)
Capital connection fees received 199,194
Captial grants 1,140,059
Net cash (used) by capital and related financing activities (3,970,136)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investments 1,500,000
Interest on investments 56,403
Net cash provided by investing activities 1,556,403
Net increase (decrease) in cash and cash equivalents 2,400,247
Cash and cash equivalents at beginning of year 7,703,007
Cash and cash equivalents at end of year 10,103,254$
See notes to the financial statements.
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OKEECHOBEE UTILITY AUTHORITY
Statement of Cash Flows - Proprietary Fund (continued)
For the Fiscal Year Ended September 30, 2021
CASH AND CASH EQUIVALENTS CLASSIFIED AS:
Current assets 5,279,175$
Restricted assets 4,824,079
Total 10,103,254$
ADJUSTMENTS TO RECONCILE OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income 2,716,358$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Change in net pension asset and related deferred amounts (480,518)
Change in total OPEB liability (5,142)
Depreciation and amortization 2,630,852
Change in assets and liabilities:
(Increase) decrease in accounts receivable (99,294)
(Increase) decrease in inventory (43,722)
(Increase) decrease in prepaid expenses 17,091
Increase (decrease) in accounts payable 15,521
Increase (decrease) in accrued liabilities 443
Increase (decrease) in compensated absences 8,815
Increase (decrease) in deposits 52,674
Increase (decrease) in due to other governments 902
Total adjustments 2,097,622
Net cash provided (used) by operating activities 4,813,980$
Noncash investing, capital and financing activities
Developer contributions 78,020$
See notes to the financial statements.
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ASSETS
Cash and cash equivalents 173,561$
Contributions receivable
Employee 12,768
Employer 5,126
Prepaids 2,933
Investments: (at fair value)
Mutual funds- fixed income 4,628,044
Mutial funds - international equity 1,152,637
Mutial funds - domestic equity 6,180,071
Total investments 11,960,752
TOTAL ASSETS 12,155,140
LIABILITIES
Accounts payable 6,919
TOTAL LIABILITIES 6,919
FIDUCIARY NET POSITION - RESTRICTED FOR PENSION BENEFITS 12,148,221$
OKEECHOBEE UTILITY AUTHORITY
Statement of Fiduciary Net Position
Pension Trust Fund
September 30, 2021
See notes to the financial statements.
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ADDITIONS
Contributions
Employer 286,486$
Plan members 138,622
Total contributions 425,108
Investment income
Net appreciation in fair value of investments 1,659,953
Interest and dividends 358,779
2,018,732
Less: investment expenses (20,250)
Net investment income 1,998,482
TOTAL ADDITIONS 2,423,590
DEDUCTIONS
Benefits paid to participants 353,503
Refunds due on terminations 13,463
Administrative expenses 50,818
TOTAL DEDUCTIONS 417,784
NET INCREASE 2,005,806
FIDUCIARY NET POSITION - RESTRICTED FOR PENSION BENEFITS
Beginning of year 10,142,415
End of year 12,148,221$
OKEECHOBEE UTILITY AUTHORITY
Statement of Changes in Fiduciary Net Position
Pension Trust Fund
For the Fiscal Year Ended September 30, 2021
See notes to the financial statements.
16
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
17
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Okeechobee Utility Authority (the “Authority”) have been
prepared in conformity with U.S. generally accepted accounting principles (GAAP) as applied to
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted
standard setting body for establishing governmental accounting and financial reporting
principles. The Authority’s significant accounting policies are described below.
Reporting Entity
The Okeechobee Utility Authority is an independent special district created pursuant to an
Interlocal Agreement (the “Agreement”), dated November 10, 1994, between the City of
Okeechobee (the “City”) and the County of Okeechobee (the “County”) in accordance with the
provisions of Chapters 163 and 189, Florida Statutes.
As required by generally accepted accounting principles, these financial statements include the
Authority (the primary government) and its component units. Component units are legally
separate entities for which the Authority is financially accountable. The Authority is financially
accountable if:
a) the Authority appoints a voting majority of the organization’s governing board and
(1) the Authority is able to impose its will on the organization or (2) there is a potential
for the organization to provide specific financial benefits to or impose specific financial
burdens on the Authority, or
b) the organization is fiscally dependent on the Authority and (1) there is a potential for the
organization to provide specific financial benefits to the Authority or (2) impose specific
financial burdens on the Authority.
Organizations for which the Authority is not financially accountable are also included when
doing so is necessary in order to prevent the Authority’s financial statements from being
misleading.
Based upon application of the above criteria, the Authority has determined that there is one
legally separate entity to consider as a component unit. The Okeechobee Utility Authority
Employees’ Retirement System is a component unit as it is fiscally dependent on and imposes a
specific financial burden on the Authority. It is reported in the Authority’s financial statements
as a Fiduciary Fund, the Employees’ Pension Trust Fund.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
18
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Reporting Entity (Continued)
The Authority was created in order to regionalize the water and wastewater services being
provided to the residents and customers within the service area of the utility system and to assist
in addressing environmental issues concerning the quality and supply of water for Lake
Okeechobee and South Florida. The Authority has broad powers with respect to the operation
and maintenance of the utility system.
The Authority services both residential and commercial customers and its service area includes
the City and County of Okeechobee and extends into part of the unincorporated section of
Glades County.
The Authority began operations on September 28, 1995 and is governed by a Board of Directors
comprised of five (5) members and three (3) alternates. The Board of Directors has financial
accountability and control over all activities relating to the operations of the Authority.
Basis of Presentation
The Authority is accounted for as a proprietary type enterprise fund. Enterprise funds are used to
account for activities that are financed and operated in a manner similar to private business
enterprises. Enterprise funds are used in the following situations: 1) the activity is financed with
debt that is secured solely by a pledge of the net revenues from fees and charges of the activity;
2) laws or regulations require that all costs of providing services, including capital costs, be
recovered from fees and charges; or 3) fees and charges are designed to recover the costs of the
activity, including capital costs.
Measurement Focus and Basis of Accounting
These financial statements are prepared using the economic resources measurement focus and
the accrual basis of accounting in accordance with U.S. generally accepted accounting principles.
Under the accrual basis of accounting, revenues are recognized when earned; expenses are
recognized when incurred. The assets, deferred outflows, liabilities, deferred inflows, and net
position of the Authority are reported in a self-balancing set of accounts, which include restricted
and unrestricted resources, representing funds available for support of the Authority’s operations.
The Employees’ Pension Trust Fund also uses the accrual basis of accounting and the economic
resources measurement focus.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
19
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Operating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from non-operating items. The
Authority’s operating revenues and expenses consist of revenues earned and expenses incurred
relating to the operation and maintenance of its system, including administrative expenses and
depreciation of capital assets. All other revenues and expenses not meeting the definition above
are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Authority’s policy
to use restricted resources first, then unrestricted resources as they are needed.
Budget Process
Pursuant to the interlocal agreement, the Authority is required to adopt a budget and provide a
copy to the City and the County. The Authority adopted its final budget relating to the fiscal year
ended September 30, 2021 on September 13, 2020.
Deposits and Investments
Cash and cash equivalents include amounts on deposit in demand accounts, money market
accounts, and money market mutual funds. For the purposes of the statement of cash flows, the
Authority considers all highly liquid investments and certificates of deposit with an original
maturity of three months or less when purchased to be cash equivalents.
Investments are reported at fair value as required by generally accepted accounting principles.
The fair value of an investment is the amount that the Authority could reasonably expect to
receive for it in a current sale between a willing buyer and a willing seller, other than in a forced
or liquidation sale. The Authority categorizes its investments according to the fair value
hierarchy established by GASB Statement No. 72. The hierarchy is based on observable and
unobservable inputs used in establishing the fair value of a financial asset or liability. Purchases
and sales of investments are recorded on the trade date.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
20
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accounts Receivable
Accounts receivable consist of both billed and unbilled receivables. Unbilled receivables
represent the estimated amount of accounts receivable for services that have not been billed as of
the statement of financial position date. The amounts are a result of a timing difference between
the Authority’s fiscal year end and the date the various utility cycles are subsequently billed.
Inventories
Inventories are recorded at cost using the first-in, first-out method.
Utility Plant
Property, plant, and equipment are stated at cost for items constructed or purchased. Donated
capital assets, donated works of art and similar items, and capital assets received in a service
concession arrangement are recorded at acquisition value. The Authority capitalizes all land
purchases. The capitalization policy for other assets is an initial useful life of more than one year
and an individual cost of $5,000.
Depreciation of exhaustible utility fixed assets, including those acquired through
intergovernmental grants externally restricted to capital acquisition, is charged as an expense
against operations. Depreciation of the various assets is computed over the assets’ estimated
useful lives using the straight-line method. The estimated useful lives range as follows:
Distribution and collection plants 10-60 years
Buildings 15-25 years
Equipment 3-10 years
Unearned Revenues
Unearned revenues primarily represent water and wastewater capital connection and inspection
fees and service payments that are paid in advance by customers. These fees will be recognized
as income in subsequent years as the services are performed.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
21
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deferred Outflow of Resources
In addition to assets, the Statement of Net Position reports a separate section for Deferred
Outflows of Resources. Deferred Outflows of Resources represent the usage of net position
applicable to future periods and will not be recognized as an expense until the future period to
which it applies. The Authority has two items that qualify for reporting in this category. The first
is the deferred amount on bond refunding. The deferred loss on current and advance refunding of
bonds is being charged to operations through the year 2030 based on the effective interest
method. The second is deferred pension items in connection with its pension plan. These
deferred pension charges amortized in a systematic and rational method as pension expense in
future periods.
Deferred Inflows of Resources
In addition to liabilities, the Statement of Net Position reports a separate section for Deferred
Inflows of Resources. Deferred Inflows of Resources represent the acquisition of net position
applicable to future periods and will not be recognized as revenue until the future period to
which it applies. The Authority currently reports deferred pension items in connection with its
pension plan. These deferred pension charges are amortized in a systematic and rational method
as pension expense in future periods.
Compensated Absences
The Authority’s policy is to allow each employee eligible for vacation leave to accumulate up to
thirty (30) days. Employees are paid unused vacation leave at current hourly rates upon
retirement or at termination. Employees of the Authority, with ten (10) years or more of
continuous service, receive payment for unused sick leave at a rate of fifty percent (50%) of
current hourly rates upon retirement or at termination. This also applies to employees at normal
retirement, regardless of length of service.
Accrued liabilities, based on hourly salary rates at September 30, 2021, are reflected in the
accounts of the Authority for vested (not contingent on an employee’s future services) vacation
and sick leave benefits.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
22
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Net Position
Net position is the result of assets and deferred outflows of resources less liabilities and deferred
inflows of resources. Net position is classified in three components:
Net investment in capital assets
This category consists of the Authority’s capital assets net of accumulated depreciation and
reduced by the outstanding balances of any bonds or notes that are attributable to the acquisition,
construction, or improvements of those assets.
Restricted
This category of the net position consists of constraints placed on the net position by external
constraints imposed by creditors (such as through debt covenants), grantors, contributors or laws
or regulations of other governments or constraints imposed by law through constitutional
provisions or enabling legislation.
Unrestricted
This category represents all other Authority net position that do not meet the definition of net
investment in capital assets, restricted for capital projects, or restricted for debt service as defined
earlier.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles requires management to make estimates and assumptions. This will affect the reported
amounts of assets, deferred inflows and outflows, and liabilities, disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these estimates.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
23
NOTE 2 – DEPOSITS AND INVESTMENTS
Authority Deposits
As of September 30, 2021, the amount of deposits in “Qualified Public Depositories” was
$10,202,162 and the book balance was $10,100,504. The Authority also had $2,750 in petty cash
for a total carrying amount of $10,103,254.
In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are
held in banking institutions approved by the State Treasurer of the State of Florida to hold public
funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State
Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or
banking institution eligible collateral. In the event of failure of a qualified public depository, the
remaining public depositories would be responsible for covering any resulting losses. The
Authority’s deposits at year end are considered insured for custodial credit risk purposes.
Authority Investments
The Authority categorizes its investments according to the fair value hierarchy established
GASB Statement No. 72, Fair Value Measurement and Application. The hierarchy is based on
valuation inputs used to measure the fair value of the asset as follows: Level 1 inputs are quoted
prices in active markets for identical assets; Level 2 inputs are significant other observable inputs
to include quoted prices for similar assets in active and non-active markets; Level 3 inputs are
significant unobservable inputs.
The Authority’s investment policy authorizes investments in money market and savings
accounts, certificates of deposits, money market funds; bonds, notes, bills and other obligations
of the U.S. Government; repurchase agreements; securities issued or guaranteed by certain
federal agencies and instrumentalities, Local Government Surplus Trust Fund or any
intergovernmental investment fund authorized pursuant to the Florida Interlocal Cooperation
Act, commercial paper, securities issued by the Authority, any guaranteed investment contract
within the limitations established by Florida Statutes, and any other investment vehicle
authorized by Florida law and determined by the investment officer and the Board of Directors to
be a prudent investment.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
24
NOTE 2 – DEPOSITS AND INVESTMENTS (Continued)
Authority Investments (Continued)
The Authority did not have any investments as of September 30, 2021:
Credit Risk
Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its
obligations. The Authority’s investment policies limit its investments to high quality investments
to control credit risk.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The Authority does not have a formal investment policy that limits investment
maturities as a means of managing exposure to fair value losses arising from increasing interest
rates.
Cash and cash equivalents are presented in the balance sheet as of September 30, 2021, as
follows:
Current cash and cash equivalents $ 5,279,175
Current restricted cash and cash equivalents 638,602
Restricted cash and cash equivalents 4,185,477
Total cash and cash equivalents and investments $ 10,103,254
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
25
NOTE 2 – DEPOSITS AND INVESTMENTS (Continued)
General Employees’ Pension Trust Fund
Salem Trust Company periodically holds uninvested cash in its capacity as custodian for the
Plan. These funds exist temporarily as cash in the process of collection from the sale of securities
and for the payments of benefits and expenses. The pension plan’s policy for the allocation of
invested assets is established by the Plan’s Board of Trustees which pursues an investment
strategy that reduces risk through a prudent diversification of the portfolio across a selection of
distinct asset classes. The policy discourages the use of cash equivalents, except for liquidity
purposes and refrains from shifting asset class allocations over short time spans. Investment
management fees are calculated quarterly as a percentage of the fair market value of the Plan’s
managed assets, where applicable. The plan uses mutual funds as the investment vehicle for
fixed income, international equity and domestic equity investments for further diversification.
These investments are recommended and monitored by the investment performance monitor.
The plan follows the investment guidelines as established within the ordinance and Florida
Statute 112.661. The Pension Trust Fund is authorized to invest in the local government surplus
funds trust fund, obligations of the U.S. Government or agencies thereof, banking institution
within the state and other such institutions within the guidelines of the state statutes which are
insured by the Federal Deposit Insurance Corporation, 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, annuity and life insurance contracts, bonds
issued by the State of Israel, foreign stocks or bonds, and stocks, bonds, and commingled funds
administered by National or State banks or evidences that the corporation is listed on a nationally
recognized exchange and holds proper credit ratings as set forth by a major credit rating service.
These equity investments are not to exceed 60% of the assets of the fund on a cost basis or 70%
of the market value of plan assets. Foreign investments are not to exceed 15% of the market
value of the assets. Temporary investment funds held by the custodian in a money market fund
are classified as cash equivalents within the investment account.
The Plan carried no particular security investment that individually represented 5% or more of
the Plan’s net assets available for benefits as of September 30, 2021.
Investments not evidenced by securities that exist in physical or book-entry form include
investments in mutual funds, domestic investment funds or a commingled pooled trust fund.
The Plan’s independently managed investments are segregated into a separate account. The
investment manager is monitored by the Board of Trustees and an investment performance
monitor.
The Plan has no instrument that, in whole or in part, is accounted for as a derivative instrument
under GASB statement No. 53, Accounting and Financial Reporting for Derivative Instruments
during the current year.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
26
NOTE 2 – DEPOSITS AND INVESTMENTS (Continued)
General Employees’ Pension Trust Fund (Continued)
The Plan invests in mortgage-backed securities representing interests in pools of mortgage loans
as part of its interest rate risk management strategy. The mortgage-backed securities are not used
to leverage investments in fixed income portfolios. The mortgage-backed securities held by the
Plan are guaranteed by federally sponsored agencies such as the Government National Mortgage
Association. These investments are inside of the fixed income open-end mutual fund that the
plan holds.
The Plan invests in a variety of investment vehicles. Investments in general are exposed to
various risks, such as interest rate, credit, and overall volatility risk. Due to the level of risk
associated with certain investments, it is reasonably possible that changes in the values of
investments will occur in the near term and such changes could materially affect the amounts
reported in the statement of fiduciary net position.
For a more detailed and comprehensive list of available investments, the Investment Policy
Statement, as approved by the Board of Trustees, should be referenced. The gain or loss on
financial instruments is recognized in the changes in net position as part of investment income.
The following is a list of the Plan’s investments by categories of risk as of September 30, 2021:
2021
Historical Fair
Cost Value
Money Market Mutual Funds $ 173,561 $ 173,561
Mutual Funds – Domestic Equity 3,198,048 6,180,071
Mutual Funds – International Equity 824,260 1,152,637
Mutual Funds - Fixed Income 4,548,868 4,628,044
$ 8,744,737 $ 12,134,313
The money market mutual funds consist of investments with financial institutions in open end,
institutional, money market funds complying with Securities and Exchange Commission (SEC)
Rule 2a7. Rule 2a7 allows SEC registered mutual funds to use amortized cost rather than fair
value to report net assets used to compute share prices if certain conditions are met. Those
conditions include restrictions on the types of investments held, restrictions on the term-to-
maturity of individual investments and the dollar-weighted average of the portfolio, requirements
for portfolio diversification, and requirements for divestiture considerations in the event of
security downgrades and defaults, and required actions if the fair value of the portfolio deviates
from amortized cost by a specified amount. Money market mutual funds are exempt from the
GASB 72 fair value hierarchy disclosures and are recorded as cash and cash equivalents on the
Statement of Fiduciary Net Position.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
27
NOTE 2 – DEPOSITS AND INVESTMENTS (Continued)
General Employees’ Pension Trust Fund (Continued)
Investment Measurement at Fair Value
The Plan categorizes its investments according to the fair value hierarchy established GASB
Statement No. 72, Fair Value Measurement and Application. The hierarchy is based on valuation
inputs used to measure the fair value of the asset as follows: Level 1 inputs are quoted prices in
active markets for identical assets; Level 2 inputs are significant other observable inputs to
include quoted prices for similar assets in active and non-active markets; Level 3 inputs are
significant unobservable inputs.
The Plan categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The Plan has the following fair value measurements as
of September 30, 2021:
Fair Value Measurement
Balance Level 1 Level 2 Level 3
Investments by fair value level
Mutual Funds – Domestic Equity $ 6,180,071 $ 6,180,071 $ $
Mutual Funds – International Equity 1,152,637 1,152,637
Mutual Funds - Fixed Income 4,628,044 4,628,044
$ 11,960,752 $ 11,960,752 $ $
Credit risk – Credit risk is the risk that an issuer or other counter party to an investment will not
fulfill its obligations. Credit risk does not apply to the Plan’s investments at this time.
Interest rate risk – Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. Generally, the longer the time to maturity, the greater the
exposure to interest rate risks.
At September 30, 2021, the fixed income mutual fund was invested in high quality bonds and other
fixed income securities including U.S. Government obligations, mortgage and asset-backed
securities, corporate and municipal bonds, collateralized mortgage obligations, short-term
instruments, and the other investments A rated by Standard & Poor’s, Moody’s Investor Services or
Fitch. To a lesser extent the fund may also invest in fixed income securities rated Baa or lower.
This fund had an effective duration of 5.1 years of September 30, 2021.
Concentrations of credit risk – Concentration of credit risk is defined as the risk of loss attributed
to the magnitude of an investment in a single user. Not more than five (5) percent of the Plan’s
assets shall be invested in the common stock or capital stock of any one issuing company.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
28
NOTE 2 – DEPOSITS AND INVESTMENTS (Continued)
Employees’ Pension Trust Fund (Continued)
Investment Measurement at Fair Value (Continued)
Investing in Foreign Markets – Investing in foreign markets may involve special risks and
considerations not typically associated with investing in companies in the United States of
America. These risks include revaluation of currencies, high rates of inflation, repatriation
restrictions on income and capital, and future adverse political, social, and economic
developments. Moreover, securities of foreign governments may be less liquid, subject to
delayed settlements, taxation on realized or unrealized gains, and their prices are more volatile
than those of comparable securities in U.S. companies.
NOTE 3 – INVENTORY
Inventory was comprised of the following at September 30, 2021:
Chemicals $ 17,380
Parts and supplies 562,082
Total inventory $ 579,462
NOTE 4 – RESTRICTED ASSETS
Restricted assets consist of the following accounts as of September 30, 2021:
Renewal, replacement & improvement $ 533,351
Capital connection water 468,087
Capital connection wastewater and treatment plant 1,107,134
Fire hydrant 252,839
Total restricted for capital projects 2,361,411
Debt service 484,707
Rate stabilization 1,339,359
Customer deposits 638,602
Total restricted assets $ 4,824,079
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
29
NOTE 5 – UNRESTRICTED NET POSITION
Unrestricted net position consists of the following as of September 30, 2021:
Designated:
Capital improvement project $ 695,556
Operating reserve 1,951,047
Emergency funding 650,680
Total designated 3,297,283
Undesignated 2,037,446
Total unrestricted net position $ 5,334,729
NOTE 6 – CAPITAL ASSETS
Beginning
Balance Additions Deletions
Ending
Balance
Capital assets not being depreciated
Land $ 2,743,323 $ 34,500 $ $ 2,777,823
Construction in progress 7,159,006 2,488,124 (6,839,738) 2,807,392
Total capital assets not being
depreciated 9,902,329 2,522,624 (6,839,738) 5,585,215
Capital assets being depreciated
Buildings 1,108,764 1,108,764
Equipment 4,142,602 297,335 (54,115) 4,385,822
Distribution and
collection plant 94,222,095 6,987,941 (232,935) 100,977,101
Total capital assets being
depreciated 99,473,461 7,285,276 (287,050) 106,471,687
Less accumulated depreciation
Buildings (615,674) (40,497) (656,171)
Equipment (3,380,940) (177,351) 51,052 (3,507,239)
Distribution and
collection plan (42,539,854) (2,413,004) 232,935 (44,719,923)
Total accumulated
depreciation (46,536,468) (2,630,852) 283,987 (48,883,333)
Total capital assets being
depreciated, net 52,936,993 4,654,424 (3,063) 57,588,354
Total capital assets, net $ 62,839,322 $ 7,177,048 $(6,842,801) $ 63,173,569
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
30
NOTE 7 – LONG-TERM LIABILITIES
Loans Payable from Direct Borrowings and Direct Placements
Pledged Revenues
Net Revenues from operating the System, Pledged Capital Connection Charges, Special
Assessments, and earnings and investment income are pledged for the payment of the Capital
Improvement Refunding Revenue Notes, Series 2020 and the Loan Agreement WW615100.
Capital Improvement Refunding Revenue Notes, Series 2020
On April 1, 2020, the Authority issued $16,390,000 Capital Improvement Refunding Revenue
Notes, Series 2020 with Truist Bank (the Senior Debt). The notes were issued to provide funds
to refund the Capital Improvement Refunding Revenue Note, Series 2017.
The Series 2020 Notes are comprised of $7,340,000 Series 2020A and $9,050,000 Series 2020B
as follows:
Mandatory
Original Face Redemption
Series Amount Interest Rate Beginning October 1 Maturity
2020A $7,340,000 1.79% 2020 October 1, 2025
2020B 9,050,000 2.05% 2020 October 1, 2030
Principal and interest is to be paid semiannually on each April 1 and October 1, through October
1, 2030. As of September 30, 2021, the balance due on Series 2020A and 2020B is $5,411,000
and $8,825,000, respectively.
The Authority is to 1) establish rates and collect fees to provide Net Revenues of at least 1.10
times the Annual Debt Service Requirement for the Notes, 2) maintain a Debt Service Account
that is funded monthly to fund semi-annual Debt Service Payments, and 3) maintain a Renewal
Replacement and Improvement Account of 5% of Gross Revenues of the preceding fiscal year.
In the event of default in the payment of interest or principal of any of the bonds or any other
event of default and such default is not cured in sixty days, any Holder shall be entitled to the
appointment of a receiver to manage the System in an appropriate judicial proceeding.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
31
NOTE 7 – LONG-TERM LIABILITIES (Continued)
Loans Payable from Direct Borrowings and Direct Placements (Continued)
Loan Agreement WW615100
The Authority was approved for a construction loan of $10,210,183, with an interest rate of
1.86%, by the Florida Department of Environmental Protection (the Department) under the State
Revolving Fund Loan Program (The Junior Debt). The amount outstanding as of September 30,
2021, was $4,759,700. According to the loan agreement, 40 semi-annual payments of principal
and interest commenced on September 15, 2009, in the amount of $341,431. This loan is junior,
inferior, and subordinate in all regards in right of payment and security to the Capital
Improvement Refunding Revenue Note, Series 2020A and Capital Improvement Refunding
Revenue Note, Series 2020B.
The Authority is to 1) establish rates and collect fees to provide Net Revenues of at least 1.15
times the Annual Debt Service Requirement for the Notes, 2) maintain a Debt Service Account
that is funded monthly to fund semi-annual Debt Service Payments, and 3) satisfy the debt
service coverage requirements of the Senior Debt.
Upon an event of default and subject to the rights of others having prior liens on the Pledged
Revenues the Department may (1) apply to a court of competent jurisdiction, cause to appoint a
receiver to manage the System, or (2) may accelerate the repayment schedule or increase the
interest rate on the unpaid principal of the loan.
Debt service requirements to amortize long term debt at September 30, 2021 are as follows:
Year Ended Principal Interest Total
2022 $ 2,073,096 $ 356,854 $ 2,429,950
2023 2,113,253 318,753 2,432,006
2024 2,153,619 279,859 2,433,478
2025 2,212,198 240,170 2,452,368
2026 2,182,993 198,899 2,381,892
2027-2030 8,260,541 355,755 8,616,296
Total $ 18,995,700 $ 1,750,290 $ 20,745,990
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
32
NOTE 7 – LONG-TERM LIABILITIES (Continued)
Changes in Long-Term Liabilities
A summary of changes in long-term liabilities is as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One year
Notes payable $21,023,842 $ $ (2,028,142) $18,995,700 $ 2,073,096
Compensated absences 255,845 177,250 (168,434) 264,661 79,398
Total OPEB liability 50,665 (5,142) 45,523
Total long-term
liabilities $21,330,352 $ 177,250 $ (2,201,718) $19,305,884 $ 2,152,494
Interest Expense
Interest expense for the year ended September 30, 2021 was $523,113, which consisted of
$129,399 amortization of deferred costs from the issuance of bonds in prior years and interest costs
incurred of $393,714. Total interest paid during the year was $394,168.
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM
General Information
The Employees’ Retirement System of the Okeechobee Utility Authority (the System) is a
single-employer, defined benefit contributory pension trust established by the Authority in
Resolution 2016-03 for the benefit of the Authority employees. The System is under the
supervision of a five-member local independent board of trustees, two of whom shall be a legal
resident within the Authority’s jurisdictional boundaries, who shall be appointed by the
Okeechobee Utility Authority Board; two of whom shall be Employee Members employed by
the Authority and elected by Member employees; and one of whom shall be the Executive
Director of the Authority or his designee. Any changes to the plan requires approval by the
Board of the Authority.
The System issues a publicly available financial report that includes financial statements, ten-
year historical trend information, and other required supplementary information. That report
may be obtained by writing to the attention of the Assistant Finance Director, Okeechobee
Utility Authority, 100 SW. 5th Avenue, Okeechobee, FL 34974-4221.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
33
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM (Continued)
Basis of Accounting
The retirement system is reported on the accrual basis of accounting. Plan members
contributions are recognized as revenues in the period that the contributions are due. Employer
contributions are recognized when due and the employer has made a formal commitment to
provide the contributions. Benefits and refunds are recognized when due and payable in
accordance with the terms of the plan. The plan’s fiduciary net position has been determined on
the same basis used by the pension plan. Investments are reported at fair value
Plan Description
The pension plan provides retirement, death and disability benefits for its participants. Each
person employed by the Authority as a full-time employee becomes a member of the Plan as a
condition of their employment except that the Executive Director of the Utility Authority, may
opt out of the Plan within 60 days of employment. All employees are eligible to participate on
the date of employment following attainment of age 18. Participation is mandatory. Normal
retirement is provided for at age 65 and 5 years of service, or at 30 years of service regardless of
age. The benefit is calculated at 2.1% of average monthly earnings times the last 5 years of
continuous service with the employer. Benefits are payable by monthly annuity for 10 years
certain and life thereafter with other options available. Early retirement is provided for at age 55
and 10 years of participation. Death and disability benefits are also available through the plans.
The early retirement reduction factor is 2% per year.
Upon termination of employment, with less than 5 years of service, the plan refunds accumulated
employee contributions. After 5 years of service, the pension benefit is accrued to date of
termination and payable at normal retirement age if employee contributions are left in the fund.
The Plan contains a deferred retirement option plan (DROP) whereupon the employee could
retire from the pension plan but continue employment with the Utility Authority for an additional
maximum period of up to five years. The retirement benefit is immediately calculated and the
monthly benefit is allocated to the DROP account. An election is made to either earn interest at
the rate of 6.5% per annum or credited or debited with an investment return or loss
approximating the other assets in the fund. Once a participant elects this option, he is no longer
eligible for disability or pre-retirement benefits. The Plan’s guidelines for the DROP are
designed to adhere to IRS regulations. Additional information about the DROP can be obtained
from the ordinance.
The Plan is administered by its Board of Trustees. Any changes to benefit provisions requires
approval by the Board of the Authority.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
34
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM (Continued)
Members of the plan consisted of the following at September 30, 2020:
Retired Plan Members or Beneficiaries
currently receiving benefits 21
Inactive Plan Members entitled to but
not yet receiving benefits 4
Drop Participants -
Active Plan Members 50
Total 75
Contributions
Contributions are made in accordance with applicable Florida Statutes and meeting the
actuarially determined contribution requirements as based on the benefit structure established
within the Plan as approved by the plan sponsor. The employer is required to contribute an
amount equal to the difference between the normal cost, as calculated for the plan year from the
applicable actuarial valuation, less the member contributions for the current year. The Authority
is required to fund the plan according to any contribution deficit as determined by actuarial
valuation for the plan beyond the contributions by employees and the regular employer
contributions by the Okeechobee Utility Authority. After applying the allocable prepaid
contribution from the beginning of the year, the employer contribution was sufficient to meet the
required annual contribution, prepaid employer contributions.
The Utility Authority funded the pension plan at the rate of 12.40% of covered payroll for plan
participants based on the October 1, 2019 actuarial valuation. Employee contributions are at the
rate of 6% of payroll.
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 funding
policy for the Plan is to make an actuarially determined pension contribution in an amount, such
that when combined with the participants’ contributions, all participants’ benefits will be fully
provided for by the time they attain retirement age.
Investments Concentrations. The plan did not hold investments in any one organization that
represents 5 percent or more of the Pension Plan’s fiduciary net position.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
35
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM (Continued)
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of October 1, 2020
updated to September 30, 2021 using the following actuarial assumptions.
Inflation 2.5 %
Salary increases 6.00%, average, including wage inflation of 3.5%
Investment rate of return 7.00%, net of pension plan investment expense, including
inflation
Retirement Age 100% when first eligible for normal retirement or DROP entry
Mortality For healthy participants PUB-2010 Headcount Weighted General
Below Median Employee Mortality Table, separate rates for males
and females, set back 1 year for males, with fully generational
mortality improvements projected to each future decrement date
with Scale MP-2018.
For disabled participants, PUB-2010 Headcount Weighted General
Disabled Retiree Mortality Table, separate rates for males and
females, both set forward 3 years, without projected mortality
improvements
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included the pension
plan’s target asset allocation as of September 30, 2021, are summarized in the following table:
Long-Term
Target Real Rate of
Asset Class Allocation Return*
Domestic Equity 50% 7.5%
International Equity 10% 8.5%
Fixed Income 40% 2.5%
Cash Equivalents 0% 0.0%
Total 100%
*Net of long-term inflation assumption of 2.5%
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
36
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM (Continued)
Rate of Return.
For the year ended September 30, 2021, the annual money-weighted rate of return on Pension
Plan investments, net of pension plan investment expense, was 18.77 percent The money-
weighted rate of return expresses investment performance, net of investment expense, adjusted
for the changing amounts actually invested.
Discount Rate
The discount rate used to measure the total pension liability was 7.0%. The projection of cash
flows used to determine the discount rate assumed that plan member contributions will be made
at the current contribution rate and that sponsor contributions will be made at rates equal to the
difference between actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plans’ fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
The components of the net pension liability at September 30, 2021, were as follows:
Total Fiduciary Net
Pension Net Pension
Description
Liability
(a)
Position
(b)
Liability
(a)-(b)
Balances at September 30, 2020 $ 9,856,220 $ 10,142,415 $ (286,195)
Changes due to:
Service cost 296,197 296,197
Interest 682,179 682,179
Differences between expected
and actual experience (51,853) (51,853)
Change of Assumptions (171,663) (171,663)
Employer contributions 286,486 (286,486)
Employee contributions 138,622 (138,622)
Benefit payments and refunds (366,966) (366,966)
Net investment income 1,998,482 (1,998,482)
Administrative expenses (50,818) 50,818
Total changes 387,894 2,005,806 (1,617,912)
Balances at September 30, 2021 $ 10,244,114 $ 12,148,221 $ (1,904,107)
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
37
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM (Continued)
The change in assumptions due to updating the mortality assumptions.
The Plan fiduciary net position was 118.59% of the total pension liability as of
September 30, 2021.
Sensitivity of the Net Position Liability to Changes in the Discount Rate
The following represents the Authority’s net pension liability calculated using the discount rate
of 7.0%, as well as what the Authority’s net pension liability would be if it were calculated using
a discount rate that is one percentage point lower (6.0%) or one percentage point higher (8.0%)
than the current rate:
1% Decrease Current Rate 1% Increase
6% 7% 8%
Net pension liability $ (599,577) $ (1,904,107) $ (2,993,718)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2021, the Authority recognized a pension credit of
$(194,032). In addition, the Authority reported deferred outflows of resources and deferred
inflows of resources related to the Plan from the following sources:
Deferred Deferred
Outflows Inflows
Description of Resources of Resources
Difference between expected and actual
experience $ 79,661 $ 284,273
Change of assumptions 58,621 145,256
Net difference between projected and actual
earnings on plan investments 1,211,692
Total $ 138,282 $ 1,641,218
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
38
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM (Continued)
The amounts reported as deferred outflows of resources and deferred inflows of resources related
to the plan will be recognized in pension expense as follows:
Year ended September 30: Amount
2020 $ (348,161)
2021 (337,805)
2022 (417,439)
2023 (342,266)
2024 (39,553)
Thereafter (17,712)
$ (1,502,936)
Payables to the Pension Plan
At September 30, 2021, the Authority had a payable of $12,768 for outstanding contributions to
the Pension Plan for the fiscal year ended September 30, 2021.
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (OPEB)
General Information about the OPEB Plan
Effective October 1, 2017, the Authority implemented Governmental Accounting Standards
Board Statement 75 (GASB 75), Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions. Retirees of the Authority pay an amount equal to the actual
premium for health insurance charged by the carrier. The premium charged includes an implied
subsidy, as the amount charged for all participants (active employee or retiree) is the same,
regardless of age. Under GASB 75, an implied subsidy is considered other post-employment
benefits (OPEB).
The following describes the Authority’s OPEB Provisions:
Plan Description
The Authority provides a single employer defined benefit health care plan to all of its employees
and the plan is administered by the Authority. The plan has no assets and does not issue a
separate financial report.
Benefits Provided
The plan allows its employees and their beneficiaries, to continue to obtain health and dental
benefits upon retirement. Normal retirement is provided for at age 65 and 5 years of service, or
at 30 years of service regardless of age. The benefits of the plan are in accordance with Florida
Statutes, which are the legal authority for the plan. The plan has no assets and does not issue a
separate financial report.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
39
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)
Employees Covered by Benefit Terms
At September 30, 2021, the following employees were covered by benefit terms:
Participants
Active employees 52
Inactive employees currently receiving benefits 3
Inactive employees entitled to but not receiving benefits -
Total 55
Contribution Requirements: The Authority does not make direct contributions to the plan on
behalf of retirees. Retirees and their beneficiaries pay the same group health rates as active
employees. However, the Authority’s actuaries, in their actuarial valuation, calculate an offset to
the cost of these benefits as an employer contribution, based upon an implicit rate subsidy. This
offset equals the total annual age-adjusted costs paid by the Authority, or its active employees,
for coverage of the retirees and their dependents net of the retiree’s own payments for the year.
Total OPEB Liability
The Authority’s total OPEB liability of $45,523 was measured as of September 30, 2021 and
was determined by the actuarial valuation as of that date.
Actuarial Assumptions and Methods
The total OPEB liability was determined using the following actuarial assumptions and other
methods:
Valuation Date: September 30, 2021
Discount Rate: 2.27% per annum
Average Retirement Age 65
Age adjustment factor 2.161021
Health Care Trend Rate: Medical – 4.90% initially trending to 4.30% in 10 years
Pharmacy – 5.90% initially trending to 4.30% in 10 years
Dental – 3.50% initially trending to 3.00% in 10 years
Vision – 3.00%
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
40
NOTE 9 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)
Actuarial Assumptions and Methods (Continued)
Actuarial Cost Method: Entry Age Normal
Plan Participation Percentage: 18%
Mortality Rates: Pub-2010 Public Retirement Plans Mortality Tables,
with mortality improvement projected for 10 years.
The valuation was prepared using the Alternate Method in accordance with GASB 75.
Discount Rate
The Authority does not have a dedicated Trust to pay retiree healthcare benefits. Per GASB 75,
the discount rate is a yield or index rate for 20-year, tax-exempt municipal bonds. As a result, the
calculation used a rate of 2.27%.
.
Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at September 30, 2020 $ 50,665
Changes for the Year:
Service Cost 1,959
Interest Cost 1,247
Changes of Assumptions and Other Inputs 419
Differences Between Expected and
Actual Experience
(8,767)
Benefit Payments
Net Change in Total OPEB Liability (5,142)
Balance at September 30, 2021 $ 45,523
Changes in Assumptions
The discount rate was 2.37% at 10/1/20 and 2.27% at 9/30/21.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Authority, and the Authority’s total OPEB
liability if it were calculated using a discount rate that is 1-percentage-point lower or 1-
percentage-point higher (versus the current discount rate):
1.0% Decrease Discount Rate 1.0% Increase
(1.27%) (2.27%) (3.27%)
Total OPEB Liability $ 50,400 $ 45,523 $ 41,786
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
41
NOTE 9 – OTHERPOST EMPLOYMENT BENEFITS (OPEB) (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rates
The following presents the total OPEB liability of the Authority, and the Authority’s total OPEB
liability if it were calculated using healthcare cost trends that are 1-percentage-point lower or 1-
percentage-point higher (versus the current healthcare cost trend rates):
Healthcare cost
1.0% Decrease Trend Rates 1.0% Increase
Total OPEB Liability $ 41,153 $ 45,523 $ 51,247
OPEB Expense
For the year ended September 30, 2021, the Authority recognized OPEB credit of $(5,142).
NOTE 10 – CONTINGENCIES
The Authority is involved in various litigations and claims arising in the course of operations. It
is the opinion of legal counsel that the likelihood of unfavorable outcomes and the amounts of
potential losses cannot be reasonably determined at this time. Accordingly, no provision for any
liability, that may result, has been made in the accompanying financial statements.
In the opinion of management, no present claims exist that would, in the event of an adverse
resolution, result in liabilities in excess of the Authority’s insurance coverage.
NOTE 11 – COMMITMENTS
As of September 30, 2021, the Authority had commitments on outstanding engineering and
construction contracts for improvements to the system of approximately $1,945,332.
NOTE 12 – RISK MANAGEMENT
The Okeechobee Utility Authority is exposed to various risks of loss related to torts; theft of,
damage to, and destruction of assets; errors and omissions; injuries to employees; and natural
disasters. During the 2021 fiscal year, coverage was maintained via membership renewal with
Preferred Governmental Insurance Trust (“PGIT”), a public entity risk pool. The Okeechobee
Utility Authority pays an annual premium to PGIT for the following coverage: property and
inland marine, general liability, automobile, crime, public official’s liability, employment
practices liability, and worker’s compensation. The PGIT purchases excess of loss insurance
policies. The excess of loss insurance policies attaches at $100,000 per occurrence except for
property insurance which is $25,000 per occurrence. Since the PGIT purchases excess of loss
insurance, the pool has not billed and does not plan to bill members for additional assessments.
OKEECHOBEE UTILITY AUTHORITY
Notes to Financial Statements
September 30, 2021
42
NOTE 12 – RISK MANAGEMENT (Continued)
As of September 30, 2021, the Authority’s management is of the opinion that the PGIT is able to
pay claims incurred to date and that the Authority will not be liable to pay any submitted claims.
The Okeechobee Utility Authority continues to carry commercial insurance for the following
risks: pollution liability, health, life, and disability. Settled claims resulting from these risks
have not exceeded commercial insurance coverage in any of the past three fiscal years.
Florida Statutes limit the Authority’s maximum loss for most liability claims to $200,000 per
person and $300,000 per occurrence under the Doctrine of Sovereign Immunity. However, under
certain circumstances, a plaintiff can seek to recover damages in excess of statutory limits by
introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do
not apply to claims filed in Federal courts.
NOTE 13 – CORONAVIRUS
In December 2019, a novel strain of coronavirus surfaced in Wuhan, China, and has spread
around the world, with resulting business and social disruption. The coronavirus was declared
Public Health Emergency of International Concern by the World Health Organization on January
30, 2020. The operations and business results of the Authority may be adversely affected. The
extent to which the coronavirus may impact business activity or investment results will depend
on future developments, which are highly uncertain and cannot be predicted, including new
information which may emerge concerning the severity of the coronavirus and the actions
required to contain the coronavirus or treat its impact, among others.
NOTE 14– NEW ACCOUNTING STANDARDS
Below is a brief description and effective date of new accounting standards that could have a
significant impact on the Authority’s financial statements. Management is currently evaluating
the impact of the adoption of this statement on the Authority’s financial statements.
GASB Statement No. 87, Leases. This Statement will increase the usefulness of governments’
financial statements by requiring recognition of certain lease assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows
of resources based on the payment provisions of the contract. It establishes a single model for
lease accounting that is based on the foundational principle that leases are financings of the right
to use an underlying asset. This Statement is effective for the fiscal year ending September 30,
2022.
2018 2019 2020 2021
Service cost 2,113$ 3,493$ 4,304$ 1,959$
Interest on total OPEB liability 1,636 3,107 2,436 1,247
Effect of economic/demographic
gains or losses 26,276 (22,138) (31,610) (8,767)
Effect of assumption changes (11,009) 4,796 4,176 419
Net change in total OPEB Liability 19,016 (10,742) (20,694) (5,142)
Total OPEB liability - beginning 63,085 82,101 71,359 50,665
Total OPEB liability - ending 82,101$ 71,359$ 50,665$ 45,523$
Covered employee payroll 2,339,518$ 2,384,400$ 2,565,609$ 2,653,458$
Total OPEB liability as a percentage of 3.51%2.99%1.97%1.72%
covered employee payroll
Change of Assumptions
Discount rate (2.51% at 10/1/17)3.63%3.22%2.37%2.27%
Thisscheduleisintendedtoshowinformationfor10years.However,untilafull10-yeartrendiscompiled,
information will be presented for those years for which information is available.
Last Ten Fiscal Years
OKEECHOBEE UTILITY AUTHORITY
Required Supplemental Information
Schedule of Changes in the Total OPEB Liability
43
2017 2018 2019 2020 2021
Total pension liability:
Service cost 285,610$ 282,926$ 269,093$ 285,901$ 296,197$
Interest 723,860 595,025 616,927 655,548 682,179
Differences between expected and
actual experience 181,813 (383,010) (36,680) (51,853)
Change of assumptions 109,828 (171,663)
Benefit payments, including
refunds of employee contributions (206,413) (319,132) (300,238) (328,601) (366,966)
Net change in total pension liability 912,885 740,632 202,772 576,168 387,894
Total pension liability - beginning 7,423,763 8,336,648 9,077,280 9,280,052 9,856,220
Total pension liability - ending (a)8,336,648$ 9,077,280$ 9,280,052$ 9,856,220$ 10,244,114$
Plan fiduciary net position
Contributions - employer 287,362$ 325,097$ 336,605$ 317,039$ 286,486$
Contributions - employees 130,765 129,178 128,067 133,961 138,622
Net investment income 831,485 703,480 327,727 1,067,073 1,998,482
Benefit payments, including
refunds of employee contributions (206,413) (319,132) (300,238) (328,601) (366,966)
Administrative expenses (52,151) (72,819) (59,018) (52,827) (50,818)
Net change in plan fiduciary net position 991,048 765,804 433,143 1,136,645 2,005,806
Plan fiduciary net position - beginning 6,815,775 7,806,823 8,572,627 9,005,770 10,142,415
Plan fiduciary net position - ending (b)7,806,823$ 8,572,627$ 9,005,770$ 10,142,415$ 12,148,221$
Net pension liability (asset) (a) - (b)529,825$ 504,653$ 274,282$ (286,195)$ (1,904,107)$
Plan fiduciary net position as a percentage
of the total pension liability 93.64%94.44%97.04%102.90%118.59%
Covered payroll 2,179,417$ 2,152,963$ 2,134,469$ 2,232,670$ 2,310,371$
Net pension liability (asset) as a percentage of
covered payroll 24.31%23.44%12.85%(12.82)%(82.42)%
NOTE: Prior to October 1, 2016, the Authority participated in the City of Okeechobee and Okeechobee Utility Authority
Employees' Retirement System, a cost-sharing multiple-employer defined benefit plan. Effective October 1, 2016, the Authority
withdrew from that plan and started the Okeechobee Utility Authority Employees' Retirement System, a single-employer
defined benefit plan with the same contribution and benefit provisions as the prior plan.
Change of Assumptions
For the year ending September 30, 2017, the assumed rates of mortality were changed.
For the year ending September 30, 2021, the assumed rates of mortality were changed.
Schedule of Changes in Net Pension Liability and Related Ratios
Thisscheduleisintendedtoshowinformationfor10years.However,untilafull10-yeartrendiscompiled,
information will be presented for those years for which information is available.
Last Ten Fiscal Years
OKEECHOBEE UTILITY AUTHORITY
Required Supplemental Information
Employees' Retirement System
44
Schedule of Employer Contributions
Fiscal Year Actuarially Contribution Authority's Actual Contribution
Ended Determined Actual Excess Covered as a Percentage of
September 30 Contribution Contribution (Deficiency)Payroll Covered Payroll
2017 303,157 287,362 *(15,795) *2,179,417 13.19%
2018 302,922 325,097 22,175 2,152,963 15.10%
2019 335,965 336,605 640 2,134,469 15.77%
2020 317,039 317,039 - 2,232,670 14.20%
2021 286,486 286,486 - 2,310,371 12.40%
* Excess contributions from previous years totaling $15,795 were applied to satisfy the full contribution requirement.
Schedule of Annual Money-Weighted Rate of Return, Net of Investment Expense
Fiscal Year
Ending
September 30
2017 10.83%
2018 8.11%
2019 3.21%
2020 11.53%
2021 18.77%
NOTE: Prior to October 1, 2016, the Authority participated in the City of Okeechobee and Okeechobee Utility Authority'
Employees' Retirement System, a cost-sharing multiple-employer defined benefit plan. Effective October 1, 2016, the Authority
withdrew from that plan and started the Okeechobee Utility Authority Employees' Retirement System, a single-employer
defined benefit plan with the same contribution and benefit provisions as the prior plan.
Thisscheduleisintendedtoshowinformationfor10years.However,untilafull10-yeartrendis
compiled, information will be presented for those years for which information is available.
OKEECHOBEE UTILITY AUTHORITY
Required Supplemental Information
Last Ten Fiscal Years
45
Valuation Date October 1, 2019
Actuarial Cost Method Aggregate
Amortization Method N/A
Remaining Amortization Period N/A
Asset Valuation Method 4-year smoothed market
Inflation 2.50%
Salary Increases 6.00%
Cost of Living Adjustments None
Investment Rate of Return 7.00%
Retirement age 100% when first eligible for normal
retirement or DROP entry
Mortality *RP-2000 Combined Healthy
Participant Mortality Table with
mortality improvement
projected to all future years
using Scale BB
*This assumption was changed in the October 1, 2020 acturial valuation,
which was used for the fiscal year ended September 30, 2021 net pension asset
calculation.
OKEECHOBEE UTILITY AUTHORITY
Notes to the Schedule of Contributions
September 30, 2021
Actuarially determined contribution rates are calculated as of September 30, two years prior to the
end of the fiscal year in which contributions are reported. The contributions for the fiscal year
ended September 30, 2021, were determined by the actuarial valuation as of October 1, 2019 using
the methods and assumptions below.
46
OKEECHOBEE UTILITY AUTHORITY
Schedule of Revenues and Expenses
For the Fiscal Year Ended September 30, 2021
Water Wastewater Unallocated Total
OPERATING REVENUE
Water system charges for services 6,949,975$ $ $ 6,949,975$
Wastewater system charges for services 4,105,049 4,105,049
Penalties and late charges 121,010 121,010
Miscellaneous 80,222 80,222
Total operating revenues 6,949,975 4,105,049 201,232 11,256,256
OPERATING EXPENSES
Personnel Costs 441,990 472,238 2,131,692 3,045,920
Electricity 201,355 147,442 115,342 464,139
General Repair and Maintenance Expenses 129,888 119,820 562,888 812,596
Repair & Maintenance Expenses Equipment 88,195 31,857 120,052
Monitoring and Testing 19,408 22,842 42,250
Residual Disposal 67,089 67,089
Chemicals 434,307 57,616 63,505 555,428
Maintenance Supplies 9,036 3,979 49,203 62,218
Office Supplies 2,084 569 9,676 12,329
Miscellaneous 1,708 4,010 6,483 12,201
Administrative Costs 210,355 210,355
Accounting and Audit Fees 22,500 22,500
Legal Fees 35,126 35,126
Property, Liability and Casualty Insurance 341,104 341,104
Professional Services 105,739 105,739
Depreciation and amortization 1,653,941 976,911 2,630,852
Total operating expenses 2,981,912 1,872,516 3,685,470 8,539,898
OPERATING INCOME 3,968,063 2,232,533 (3,484,238) 2,716,358
NONOPERATING REVENUES (EXPENSES)
Interest revenue 47,914 47,914
Interest expense (523,113) (523,113)
Total nonoperating revenues (expenses) (475,199) (475,199)
INCOME BEFORE CAPITAL CONTRIBUTIONS 3,968,063$ 2,232,533$ (3,959,437)$ 2,241,159$
Unaudited
47
Reported
54
Not Applicable
2,653,458$
Not Applicable
Budget Expenditures
155,000 131,715
554,249 518,773
11,055,091 195,642
2,230,423 20,072
See Page 49
Not Applicable
Not Applicable
OKEECHOBEE UTILITY AUTHORITY
Information Required by Section 218.39(3)(c), Florida Statutes
For the Fiscal Year Ended September 30, 2021
Unaudited
ThemillagerateofadvaloremtaxesimposedbytheDistrictforfiscalyear
2021:
Allcompensationearned byor awardedto nonemployeeindependent
contractors,whetherpaidoraccrued,regardlessofcontingencyforfiscalyear
2021:
As required by Section 218.39(3)(c), Florida Statutes, the Authority reported:
Required Information
Thetotalnumberofdistrictemployeescompensatedinthelastpayperiodof
the District's fiscal year 2021:
The total number ofindependent contractors to whom nonemployee
compensation was paid in the last month of the District's fiscal year 2021:
Allcompensationearnedbyorawardedtoemployees,whetherpaidor
accrued, regardless of contingency for fiscal year 2021:
Therateofnon-advaloremspecialassessmentsimposedbytheDistrictfor
fiscal year 2021:
Eachconstructionprojectwithatotalcostofatleast$65,000approvedbythe
DistrictthatwasscheduledtobeginonorafterOctober1ofthefiscalyear
2021, together with the total expenditures for such project:
SW Section WW Service Area Project II
Advanced Metering Infrastructure
AbudgetvariancebasedonthebudgetadoptedunderSection189.016(4),
FloridaStatutes,beforethebeginningofthefiscalyear2021beingreportedif
theDistrictamendsafinaladoptedbudgetunderSection189.016(6),Florida
Statutes:
Project
US 441 SE & 36th Ave WM replacement
Oak Lake Estates WW
48
OKEECHOBEE UTILITY AUTHORITY
Budgetary Schedule
For the Fiscal Year Ended September 30, 2021
Variance with
Final Budget
Original Final Postive
Budget Budget Actual (Negative)
OPERATING REVENUE
Water system charges for services 6,643,139$ 6,643,139$ 6,949,975$ 306,836$
Wastewater system charges for services 4,033,985 4,033,985 4,105,049 71,064
Penalties and late charges 117,408 117,408 121,010 3,602
Miscellaneous 39,330 67,910 80,222 12,312
Total operating revenues 10,833,862 10,862,442 11,256,256 393,814
OPERATING EXPENSES
Water services - labor 602,751 602,751 441,990 160,761
Water services - O & M 1,041,085 1,041,085 885,981 155,104
Wastewater services - labor 594,347 594,347 472,238 122,109
Wastewater services - O & M 725,830 700,175 423,367 276,808
Maintenance - labor 1,370,234 1,370,234 1,086,116 284,118
Maintenance - O & M 1,072,350 1,047,350 798,547 248,803
Meter reader - labor 234,213 234,213 186,121 48,092
Meter reader - O & M 29,614 29,614 21,466 8,148
Administrative and general - labor 1,137,643 1,137,643 859,455 278,188
Administrative and general - O & M 1,103,449 1,223,556 733,765 489,791
Depreciation and amortization 2,682,200 2,682,200 2,630,852 51,348
Total operating expenses 10,593,716 10,663,168 8,539,898 2,123,270
OPERATING INCOME 240,146 199,274 2,716,358 2,517,084
NONOPERATING REVENUES (EXPENSES)
Interest revenue 44,189 44,189 47,914 3,725
Interest expense (394,167) (394,167) (523,113) (128,946)
Total nonoperating revenues (expenses)(349,978) (349,978) (475,199) (125,221)
INCOME BEFORE CAPITAL CONTRIBUTIONS (109,832) (150,704) 2,241,159 2,391,863
CAPITAL CONTRIBUTIONS
Capital grants 40,872 1,497,834 1,456,962
Water capital connection fees 9,650 9,650 83,437 73,787
Wastewater capital connection fees 9,000 9,000 146,781 137,781
Developer contributions for capital projects 78,020 78,020
Total capital contributions 18,650 59,522 1,806,072 1,746,550
INCREASE IN NET POSITION (91,182)$ (91,182)$ 4,047,231$ 4,138,413$
Unaudited
49
50
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
The Honorable Chairman and Members of the
Okeechobee Utility Authority Board
Okeechobee, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
proprietary fund and aggregate remaining fund information of the Okeechobee Utility Authority as
of and for the year ended September 30, 2021, and the related notes to the financial statements,
which collectively comprise the Okeechobee Utility Authority’s basic financial statements, and
have issued our report thereon dated March 7, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Okeechobee
Utility Authority’s internal control over financial reporting (internal control) as a basis for
designing audit procedures that are appropriate in the circumstances for the purpose of expressing
our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Okeechobee Utility Authority’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the Okeechobee Utility Authority’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
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Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Okeechobee Utility Authority’s
financial statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which
could have a direct and material effect on the financial statements. However, providing an opinion
on compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
West Palm Beach, Florida
March 7, 2022
52
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
FOR EACH MAJOR STATE PROJECT
AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY CHAPTER 10.550,
RULES OF THE AUDITOR GENERAL
The Honorable Chairman and Members of the
Okeechobee Utility Authority Board
Okeechobee, Florida
Report on Compliance for Each Major State Project
We have audited the Okeechobee Utility Authority’s compliance with the types of compliance
requirements described in the Department of Financial Services’ State Projects Compliance
Supplement that could have a direct and material effect on the Okeechobee Utility Authority’s
major State project for the year ended September 30, 2021. The Okeechobee Utility Authority’s
major State project is identified in the summary of auditor’s results section of the accompanying
Schedule of Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with State statutes, regulations, and the terms and
conditions of its State projects applicable to its State project.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the Okeechobee Utility Authority’s
major State project based on our audit of the types of compliance requirements referred to above.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
Chapter 10.550, Rules of the Auditor General. Those standards and Chapter 10.550, Rules of the
Auditor General require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could
have a direct and material effect on a major State project occurred. An audit includes examining,
on a test basis, evidence about the Okeechobee Utility Authority’s compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances.
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We believe that our audit provides a reasonable basis for our opinion on compliance of the major
State project. However, our audit does not provide a legal determination of the Okeechobee
Utility Authority’s compliance.
Opinion on Each Major State Project
In our opinion, the Okeechobee Utility Authority complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material effect
on its major State project for the year ended September 30, 2021.
Report on Internal Control over Compliance
Management of the Okeechobee Utility Authority is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to
above. In planning and performing our audit of compliance, we considered the Okeechobee
Utility Authority’s internal control over compliance with the types of requirements that could
have a direct and material effect on the major State project to determine the auditing procedures
that are appropriate in the circumstances for the purpose of expressing an opinion on compliance
for each major State project and to test and report on internal control over compliance in
accordance with Chapter 10.550, Rules of the Auditor General, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we
do not express an opinion on the effectiveness of the Okeechobee Utility Authority’s internal
control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a State project on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a State project will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a State project that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider material
weaknesses. However, material weaknesses may exist that have not been identified.
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The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not
suitable for any other purpose.
West Palm Beach, Florida
March 7, 2022
OKEECHOBEE UTILITY AUTHORITY
Schedule of Expenditures of State Financial Assistance
For the Fiscal Year Ended September 30, 2021
CSFA Contract State
State Grantor/Program Title Number Number Expenditures
Florida Department of Environmental Protection
Statewide Water Quality Restoration Projects 37.039
LP47012 488,205$
LP47021 200,093
LPQ0008 754,226
LPQ0017 55,310
1,497,834
Total State Financial Assistance 1,497,834$
NOTE 1 - BASIS OF PRESENTATION
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
NOTE 3 - CONTINGENCIES
TheabovescheduleofexpendituresofstatefinancialassistanceincludesStategrantactivityofthe
OkeechobeeUtilityAuthorityandispresentedinaccordancewiththerequirementsoftheFloridaSingle
AuditAct.Therefore,someamountspresentedintheschedulemaydifferfromamountspresentedin,or
usedinthepreparationofthebasicfinancialstatements.BecausetheSchedulepresentsonlyaportionofthe
operationsoftheOkeechobeeUtilityAuthorityitisnotintendedtoanddoesnotpresentthefinancial
position, changes in financial position, or cash flows of the Okeechobee Utility Authority.
Expendituresarerecognizedontheaccrualbasisofaccounting.Suchexpendituresarerecognizedfollowing
thecostprinciplescontainedintheFloridaDepartmentofFinancialServices'StateProjectsCompliance
Supplement,whereincertaintypesofexpendituresarenotallowedorarelimitedastoreimbursement.The
Okeechobee Utility Authority did not have any loan programs.
Amountsreceivedorreceivablefromgrantoragenciesaresubjecttoauditandadjustmentbythoseagencies.
Anydisallowedclaims,includingamountsalreadyreceived,mightconstitutealiabilityoftheOkeechobee
UtilityAuthorityforthereturnofthosefunds.Intheopinionofmanagement,allgrantexpenditureswerein
compliance with the terms of the grant agreements and applicable State laws and regulations.
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OKEECHOBEE UTILITY AUTHORITY
Schedule of Findings and Questioned Costs
September 30, 2021
56
SECTION I—SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor’s report issued on whether the financial
statements audited were prepared in accordance with GAAP:
Unmodified Opinion
Internal control over financial reporting:
• Material weakness identified? No
• Reportable condition identified that is not considered
to be a material weakness?
No
Noncompliance material to financial statements noted?
No
State Financial Assistance
Internal control over major projects:
• Material weakness identified? No
• Reportable condition identified that is not considered
to be a material weakness?
None reported
Type of auditor’s report issued on compliance for major
project:
Unmodified
Any audit findings disclosed that are required to be reported in
accordance with Chapter 10.550, Rules of the Auditor
General?
No
Identification of Major State Project
CSFA Number Name of State Project
Florida Department of Environmental Protection
37.039 • Statewide Water Quality Restoration Projects
Dollar threshold used to distinguish between
type A and type B programs:
$300,000
OKEECHOBEE UTILITY AUTHORITY
Schedule of Findings and Questioned Costs
September 30, 2021
57
SECTION II — FINANCIAL STATEMENT FINDINGS
None
SECTION III— STATE PROJECTS FINDINGS AND QUESTIONED COSTS
Major State Project
Florida Department of Environmental Protection
Statewide Water Quality Restoration Projects – CSFA 37.039
None
SECTION IV— SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
None
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MANAGEMENT LETTER IN ACCORDANCE WITH
THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA
The Honorable Chairman and Members of the
Okeechobee Utility Authority Board
Okeechobee, Florida
Report on the Financial Statements
We have audited the financial statements of the Okeechobee Utility Authority, as of and for the
fiscal year ended September 30, 2021, and have issued our report thereon dated March 7, 2022.
Auditor’s Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and Chapter 10.550, Rules of
the Auditor General.
Other Reporting Requirements
We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards; Independent Auditor’s Report on Compliance
for Each Major State Project and Report on Internal Control over Compliance; Schedule of
Findings and Questioned Costs; and Independent Accountant’s Report on an examination
conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.
Disclosures in those reports and schedule, which are dated March 7, 2022, should be considered in
conjunction with this Management Letter.
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Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
financial audit report. There were no findings or recommendations in the prior year that required
corrective actions.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements. This
information is disclosed in Note 1 to the financial statements.
Financial Condition and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply
appropriate procedures and communicate the results of our determination as to whether or not the
Okeechobee Utility Authority has met one or more of the conditions described in Section
218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our
audit, we determined that the Okeechobee Utility Authority did not meet any of the conditions
described in Section 218.503(1), Florida Statutes, during the fiscal year ended September 30, 2021.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures for the Authority. It is management’s responsibility to
monitor the Okeechobee Utility Authority’s financial condition, and our financial condition
assessment was based in part on representations made by management and review of financial
information provided by same. Our assessment was done as of the fiscal year end. The results of
our procedures did not disclose any matters that are required to be reported.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Special District Component Units
Section 10.554(1)(i)5.c, Rules of the Auditor General, requires, if appropriate, that we
communicate the failure of a special district that is a component unit of a county, municipality, or
special district, to provide the financial information necessary for proper reporting of the
component unit, within the audited financial statements of the county, municipality, or special
district in accordance with Section 218.39(3)(b), Florida Statutes.
Based on the application of criteria in publications cited in Section 10.553, Rules of the Auditor
General, there are no special district component units of the Okeechobee Utility Authority.
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Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance
with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but warrants the
attention of those charged with governance. In connection with our audit, we did not note any such
findings.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the
Auditor General, the Authority reported the required information in the Other Information Section
on pages 48 and 49.
Single Audits
The Okeechobee Utility Authority expended less than $750,000 of federal awards and more than
$750,000 of state financial assistance for the fiscal year ended September 30, 2021 and was
required to have a state single audit.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
West Palm Beach, Florida
March 7, 2022
61
INDEPENDENT ACCOUNTANT’S REPORT
ON COMPLIANCE WITH SECTION 218.415,
FLORIDA STATUTES
The Honorable Chairman and Members of the
Okeechobee Utility Authority Board
Okeechobee, Florida
We have examined the Okeechobee Utility Authority’s compliance with Section 218.415, Florida
Statutes during the year ended September 30, 2021. Management of the Okeechobee Utility Authority is
responsible for Okeechobee Utility Authority’s compliance with the specified requirements. Our
responsibility is to express an opinion on the Okeechobee Utility Authority’s compliance with the
specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Okeechobee Utility Authority complied,
in all material respects, with the specified requirements referenced above. An examination involves
performing procedures to obtain evidence about whether the Okeechobee Utility Authority complied
with the specified requirements. The nature, timing, and extent of the procedures selected depend on our
judgement, including an assessment of the risk of material noncompliance, whether due to fraud or error.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion.
Our examination does not provide a legal determination on the Okeechobee Utility Authority’s
compliance with the specified requirements.
In our opinion, the Okeechobee Utility Authority complied, in all material respects, with Section
218.415, Florida Statutes for the year ended September 30, 2021.
This report is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and Florida House of Representatives, the Florida Auditor General,
applicable management, and the Okeechobee Utility Authority Board, and is not intended to be and
should not be used by anyone other than these specified parties.
West Palm Beach, Florida
March 7, 2022