1985/1986 Fiscal Year
~'-J~"'''''' ,&. &.8.-.'-.... ---- ,---...- --.- --~-~----------- --- ---
<I........,.L ~ J -----" - ,- .., - ---
Water and Sewer
General Long-Term Debt Revenue Bonds
General Total
Obligation Notes 1972 1983A 1983B Long-Term
Bonds Payable Total Series aeries Series To tal Debt
The annual requirements to amortize
all debt outstanding as of September 30,
1986, including interest payments
totalling $7 , 74 1 , 47 5 are as follows:
Year ended September 30,
1987 $ 39, 087 $ 40,104 $ 79,191 $ 24,100 $ 120,800 $ 208,177 $ 353,077 $ 432,268
1988 42,738 29,385 72,123 23,750 123,438 215,277 362,465 434,588
1989 41,050 41, 050 23,400 120,813 215,211 359,424 400,474
1990 39,363 39,363 24,050 122,925 215,288 362,263 401,626
1991 37 , 675 37 , 675 23,650 119,775 215,291 358,716 396,391
1992 40,956 40,956 24,250 121,363 215,318 360,931 401,887
1993 38,894 38,894 23,800 117,688 215,260 356,748 395,642
1994 36,831 36,831 24,350 118,750 215,218 358,318 395.149
1995 39,769 39,769 23,850 119,287 215,282 358,419 398,188
1996 37,362 37,362 24,350 119,300 215,333 358~983 396,345
1997 23,800 118,787 215,263 357,850 357,850
1998 24,250 117,750 215.269 357,269 357,269
1999 23.650 116,187 215,235 355,072 355,072
2000 24,050 118,837 215,251 358,138 358,1.38
2001 23,400 115,700 215,197 354,297 354,297
2002 23,750 116,775 215,265 355,790 355,790
2003 23,050 116,800 215,225 355,075 355,075
2004 23,350 115,775 215,269 354,394 354,394
2005 22,600 215,269 237,869 237,869
2006 22,850 215,205 238,055 238,055
2007 23,050 215,259 238,309 238,309
2008 23,200 215,194 238,394 238,394
2009 23,300 215,189 238,489 238,489
2010 24,350 215,208 239,558 239,558
2011 24,300 215,313 239,613 239,613
2012 25,200 215,256 240,456 240,456
2013 215,310 215,310 215,310
2014 215,318 215,318 215,318
2015 215,233 215,233 215,233
2016 215,307 215,307 215,307
2017 215,266 215,266 215,266
2018 215,253 215,253 215,253
2019 215,292 215,292 215,292
2020 215,298 215,298 215,298
2021 215,287 215,287 215,287
2022 215,263 215,263 215,263
2023 215,325 215,325 215,325
2024 215,249 215,249 215,249
2025 199,092 199,092 199,092
L - . ~ -- - - ~- -~- -. - .... . . -- . -- - -- -- -
CITY OF OKEECHOBEE, FLORIDA
...
FINANCIAL STATEMENTS
SEPTEMBER 30, 1986
~J:TY COUNCIL
Oakland Chapman
Mayor, Chairman
Andy Rubin
Councilmember, Vice Chairman
Richard R. Collins
Counc ilmember
Bonnie S. Thomas, CMC
City Clerk
Louis K. Tomey II
Chief of Fire Department
Larry Mobley
Chief of Police
ADMINISTRATIVE
Edward W. Douglas
Counc ilmember
Oscar Thomas
Councilmember
Jerald Bryant
City Attorney
L.C. Fortner, Jr.
Public Utilities
Director
Charles Elders
Director of Public
Works
CITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
...
SEPTEMBER 30, 1986
TABLE OF CONTENTS
,.
Auditors' Report
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures, and Changes
in Fund Balances - All Governmental Fund Types
Combined Statement of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - General and
Special Revenue Fund Types
Combined Statement of Revenues, Expenses, and Changes in
Retained Earnings/Fund Balances - All Proprietary
Fund Types and Employee Pension Trust Funds
Combined Statement of Changes in Financial position -
All Proprietary Fund Types and Employee Pension Trust Funds
Notes to Combined Financial Statements
Supplementary Information to Financial Statements
General Fund
Schedule of Revenues (Budget and Actual)
Schedule of Expenditures (Budget and Actual)
Special Revenue Fund - Federal Revenue Sharing -
Statement of Revenues and Expenditures
(Budget and Actual)
Debt Service Fund - Statement of Revenues and
Expenditures (Budget and Actual)
Water and Sewer Enterprise Fund - Schedule of
Changes in Reserve Accounts
Pension Trust Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenses and
Changes in Fund Balances
Combining Statement of Changes in Financial Position
Statistical Information
Summary of Insurance Coverage - Unaudited
Schedule of Assessed Values, Tax Levies and Rates -
Unaudited Last Ten Years
Schedule of Certain Revenues and Utility Customers -
Unaudited Last Ten Years
PAGE
1-2
3-4
5
6
7
8
9-26
27-28
29-31
32
33
34
35
36
37
38
39
40
CITY OF OKEECHOBEE, FLORIDA
FINANCIAL STATEMENTS
...
SEPTEMBER 30, 1986
TABLE OF CONTENTS
,.
PAGE
Report on Controls over Nonmajor Federal Assistance
Programs
Report on Compliance Related to Nonmajor Federal
Assistance Programs
Report on Schedule of Federal Financial Assistance
Schedule of Federal Financial Assistance
Federal Revenue Sharing Separate Report on Compliance
41-43
44-45
46
47
48
Management Letter
49-57
Jm
DiBarwlomeo, McBee & Sloan
Gerald A. DiBartolomeo Jr., C.P.A.
Jay L. McBee, C.P.A.
Rita B. Sloan, C.P.A.
Kim T. Bolin, C.P.A.
Certified Public Accountants
,.
The Honorable Mayor and Members
of the City Council
City of Okeechobee, Florida
We have examined the combined financial statements of the City of
Okeechobee, Florida as of and for the year ended September 30,
1986, as listed in the accompanying table of contents. Our
examination was made in accordance with generally accepted
auditing standards and, accordingly, included such tests of the
accounting records and such other auditing procedures as we
considered necessary in the circumstances, except as indicated in
the fOllowing paragraph.
The City has not maintained adequate detail records in support of
the cost of the water and sewer utility plant in service (carrying
value of $9,244,426 at September 30, 1986) and land and
improvements, buildings and improvements, furnishings and
equipment, and rolling stock included in the general fixed assets
group of accounts (carrying value of $1,776,453 at September 30,
1986) and we were unable to obtain sufficient supporting
documentation to form an opinion with respect to the stated cost
of these items acquired in years prior to October 1, 1981 (cost
$4,098,761 and $973,891 respectively) or the accumulated
depreciation applicable to the water and sewer utility plant in
service at September 30, 1986 or the provision for depreciation
for the year then ended. Accordingly, we are unable to express,
and we do not express an opinion on the accompanying financial
statements of the proprietary fund type and the general fixed
assets group of accounts.
In our opinion, except that, as described in the preceding
paragraph, we do not express an opinion on the proprietary fund
type and general fixed assets group of accounts, the
aforementioned combined financial statements present fairly the
financial position of the City of Okeechobee, Florida, at
September 30, 1986, and the results of its operations and the
changes in financial position of its fiduciary pension trust fund
types for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with
that of the preceding year.
- 1 -
900 Professional Centre
900 Virginia Avenue, Suite 12,
P,O. Box 2546, Ft. Pierce, FL 33454
(305) 461-8833
Medallion Building
1981 S.E. Port St. Lucie Boulevard
Port St. Lucie, Florida 33452
(305) 335-0007
CITY OF OKEECHOBEE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
.
SEPTEMBER 30, 1986
Fiduciary
Proprietary Funds Account Groups
Governmental Fund Types Fund Employee Gene ral General Totals
Spec ial Debt Water Pension Fixed Long- (Memorandum
ASSE'fS General Revenue Service and Sewer Trust Fund s Assets Term Debt Only)
Cash $ 14,772 $12,732 $ 889 $ 216,188 $ $ $ S 244,581
Investments 282,786 32,939 1,183,981 1,499,706
Receivables (less allowances
for doub ttul accounts)
Taxes (Notes 2 and 3 ) 7'2 , 072 72,072
Customer accounts, less
allowances of 1,605 15,015 151,394 166,409
Due from other government
agenc 1.es 55,41_3 55,413
i\cc.:rlled J..nterest 78 78
Du~? from other funds 2,265 27,929 30,194
Inv\~ntor:y 3~811 3,811
I~esr.rj.cted assets
(Notes i and 8)
Cash 475,563 475,563
Investments 292,134 292,134
:?J:-operty, plant, and equ~pment,
10'.... .-....... (where applicable) of
L..LC; "-
a.ccumulated deprec ia t ion
(Notes 4 and 5 ) 9,244,426 1,776,453 11,020,879
i\rnou.n t available ~n Debt
Ser"\.' ice Fund 31,894 31,894
~\rnC}Url t. to be provided for
retirement of general
long-term debt 384,911 384,911
TOTAL ASSETS $446,134 $12,732 $33,906 $10,407,634 $:~,lB3,981 $1,776,453 $416,805 $14,277 ,645
-------- ------- ------- ----------- ----------- ---------- -------- -----------
-~------ ------- ------- ----------- _.~._------- ---------- -------- -----------
See Accompanying Notes to Comb1ned Financial Statements
- 3 -
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable
Customer deposits
Accrued liabilities
Payable from Restricted Assets
Retalnage payable
Accrued interest on bonds
payable
Current portion of bonds
payable
Hatu:re':::~ bonds and interest
coupons
Due to other funds
Deterred revenues
IJong-term indebtedness
(Note 5)
FUf.iu EQUITY
Contributed capital (Note 6)
Investment in general fixed
assets
Retained Earnings
Reserved for -
Revenue bo~d retirement
(Note 7)
Renewal and replacement
Unreserved
Fund Balances
Reserved. r:OI:' -
Employees' retirement system
Debt service (Note 5)
Inventory
E:!1cumbrances
Unde~.; ::..gr~i;.ted
TOTAL LIABILITIES AND
FUND EQU ITY
CITY OF OKEECHOBEE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1986
Governmental Fund Types
Spec ial Deb t
General Revenue Servlce
$ 40,317 $
$
18,410
2,012
30,194
24,665
113,586
2,012
31,894
3,811
29,817
_ ~98,~l..Q.
332,548
1..2 71:"
-r:f,732
31,894
Proprietary
Fund
Water
and Sewer
Flduclary
Fund s
Employee
Penslon
Trust Funds
Account
Gene ral
Fixed
Assets
$
1,776,453
1,776,453
Group s
General
Long-
Term Debt
$
73,372
343,433
416,805
.
Totals
(Memorandum
Only)
$ 100,710
179,639
115,167
167,037
29,738
27,000
2,012
30: 194
24,665
3,799,030
4,475,19~_
4,241:858
1,776,453
192,154
55,000
1,975,833
1,183,981
31,894
3,811
29,817
31J,65~
-g;-802-, 453
$446,134 $12,732 $33,906 $10,407,634 $1,183,981 $1,776,453 $416,805 $14,277,645
$ 60,393 $
179,639
23,385
167,037
29,738
27,000
3,455,597
3:942,789
4,241,858
192,154
55,000
1,975,833
1,183,981
6,464,845
L183,~81
-------- ------- ------- ----------- ---------- ---------- -------- -----------
----~--- ------- ------- ----------- ---------- ---------- -------- -----------
See Accompanying Notes to Combined Financial Statements
- 4 -
CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHN~GES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES
.
YEAR ENDED SEPTEMBER 30, 1986
Totals
(Memorandum
Only)
REVENUES (Note 5)
Taxes (Note 2)
Intergovernmental (Note 3j
Charges for services
Licenses and permits
Fines and forfeitures
Inte:rest lncome
Miscellaneous
$ 786,556
768,947
289,666
41,498
29,732
34,198
17 ,202
1,967,799
EX PE ND P['URE S
F'1J-bl::..c. sa"tst.y
(;eI18 r"03.1 g"C)''"l"[! rnElen t
fi'"ransp()2:.t a t 1011
Physlcal environment
Health and human services
Parks and recrc~ati.on
Intragovermr.ent service - public works
t)ebt servJ.ce
Principal retirement
Interest charges
Professlonal fees
889,394
307,112
527,754
268,823
26,540
8,256
28,927
20.000
20.438
500
2,097,744
(129,945)
Revenues over {under} expenditures
O'l'HER FINANCING SOURCES (USES)
Operating transfers in
Operatlng transfer~ out
75,116
(75,116)
Revenues and other flnancin9 sources
avec (under) expenditures and other USES
(129,945)
CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHA.~:GES IN FUND BALANCES _
BUDGET AND ACTUAL - GENERAL AND SPECIAL REVE~UE FUND TYPES
.
YEAR ENDED SEPTEMBER 30, 1986
General Fund Special Revenue Totals (Memorandum Only)
Var~ance Var~ance Variance
Favorable Favorable Favorable
(Untavor- (Untavor- (Untavo r-
Budget Actual able) Budget Actual able) Budget Actual able)
REVENUES
Taxes $ 729,440 $ 770,810 S 41,370 $ $ $ $ 729,440 $ 770,810 $ 41,370
Intergovernmental 638,709 698,889 60,180 77,696 70,C58 (7,638) 716,405 768,947 52,542
Charges for services 270,150 289,666 19,516 270,150 289,666 19,516
Licenses and permits 26,000 41,498 15,498 26,000 41,498 15,498
F' J.nes and forfeitures 25,900 29,732 3,832 25,900 29,732 3,832
Interest income 20,000 30,978 10,978 20,000 30,978 10,978
Miscellaneous 4,250 17 , 202 12,952 _~_25 Q. 17 , 202 12,952
1,714,449 1,878,775. 164,326 77,696 70 ;.95 .? (7,638) 1,792,145 1,948,833 156,68~
K\ PElIiD PPURES
Pub J.i c safety 893,292 887 ,864 5,428 893,292 887,864 5,428
General gov8:r:nment 311. 258 307,035 4,223 311,258 307,035 4,223
'l'ransporta tj.on 652,625 553,372 99,253 652,625 553,372 99,253
Physi,cal envJ.I'orunent 230.150 268,823 (3 8,673) 230,150 268,823 (38,673)
Health and human services 20,415 26,540 (6,125) 20.415 26,540 (6,125)
Parks and :cecreat ion 10,000 8,256 1, 744 10,000 8,256 1, 744
IntrG:.government service -
publ.ic works 29,555 28,927 628 29,555 28,927 62H
2,147,295 - 2 ;.i5'8 0, 817 66,478 2,147,295 2,080.L..817 66.478
Revenues o'\-"cr (under)
expenditures (432,846) (202/042) 230,804 77,696 70,058 (7,638) (355,150) (131,984) 223,166
OTHER FINANCING SOURCES (USES)
Operating transfp-rs in 54,000 75,116 21,116 54,000 75,116 21,116
OperatJ..ng transfers out (54,000) (75,116) (21,116) (54,000) (75,116) (21,116)
54,000 75,116 /.1,116 (54,000) ~I~!.116) ( 2 1 , 116)
Revenues and other f inane ing sources
over (under) expeilditu:Les
and other uses (378,846) (126,926) 251,920 23,696 (5/OS8) (28,754) (355,150) (131,984) 223,166
t;', 1 nr1 P.:::201~"M""~Cl
CITY OF OKEECHOBEE, FLORIDA
EARNIN
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED
UND BALANCES - ALL PROPRIETARY FUND TYPES AND EMPLOYEE PENSION TRUST FUNDS
YEAR ENDED SEPTEMBER 30, 1986
Proprietary
Fund
Fiduciary
Funds
Employee
Pension
Trust Funds
Water
and Sewer
OPERATING REVENUES
Charges for services
Interest income
Contributions
Other operating income
$1,649,408
$
83,417
155,847
550
1,649,958
239,264
OPERATING EXPENSES
Personal services
Contractual services
Depreciatlon
Haterials and operating supplies
Utilities
Rentals and leases
Insurance
Repairs and mainte:1.ance
Adminlstrat~ve supplies and expense
Contribution refunda
Retirement beneftts paid
General Fund a~~inistative charge
489,893
44,460
23:.,724
234,324
127,985
1,830
40,740
70,461
24,476
28,904
685
46,579
1,316,472
29,589
OPERATING INCOME
333,486
209,675
NONOPERATING INCOME (EXPENSE)
Inter'est income
Interest expense
Other fiscal charges
Mlscellaneous
103,347
(170,947)
(3,5~0)
(10,453)
(81,6C3)
o"'\r-'1 nr-"\
"" 1"\1"\ rP"'7r"'
.
Totals
(Memorandum
Only)
$1,649,408
83,417
155,847
550
1,889,222
489,893
44,460
235,724
234,324
127;985
1,830
40,740
70,461
24,476
28,904
685
46,579
1,346,061
543,161
103,347
(170,947)
(3,550)
(10,453)
(81,603)
.tr1 r--r-n
CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION -
ALL PROPRIETARY FUND TYPES AND EMPLOYEE PENSION TRUST FUNDS
SOURCES OF WORKING CAPITAL
Operations
Net income
Items not requiring working capital
Dep rec ia t ion
Amortization of bond discount
Loss on sale of equipment
Working capital provided by operations
Proceeds on sale of property and equipment
Decrease in restricted assets
Contributed capital
USES OF WORKING CAPITAL
Retirement of revenue bonds
Acqu~sition of property, plant, and equipment
Increase in current portion of bonds payable
INCREASE IN WORKING CAPITAL
YEAR ENDED SEPTEMBER 30, 1986
Proprietary
Fund
Fiduciary
Funds
Employee
Pension
Trust Funds
Water
and SeW4:!r
$
251,8133
$209 , 675
235,724
1,4!)7
14, 043
503,107
209,675
5,400
1,912,261
968,911
3,389,6'/"9
209,675
42,1~9
1.,243,962
1,000
1 , 287 , O!.iT
$ 2,102,5B8
$209,675
---------.--
-- -- - - - -.- .._-
--------
--------
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL
Cash
Investments
Accounts receivable
Due from other funds
Accounts and retainage payable
Due to other funds
Bond anticipation notes payable
Ronds navable
$ 47,0:L1
(311,1:38)
32,420
169
(149,738)
144,000
2,212,900
(1. 000)
$ (6,325)
216,000
.
Totals
(Memorandum
Only)
$ 461,558
235,724
1,457
14,043
712,782
5,400
1,912,261
968,911
3,599,354
42,129
1,243,962
1,000
1,287,091
$ 2,312,263
-----------
-----------
$ 40,686
(95,188)
32,420
169
(149,738)
144,000
2,212,900
(1.000)
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS
.,.
SEPTEMBER 30, 1986
NOTE 1 - SUMMARY OF SIGNIFICAN~ ACCOUNTING POLICIES
The City of Okeechobee was originally incorporated in 1915 and its
present charter was adopted in 1919 under Chapter 8318 of Special
Acts of 1919. The City operates under the council form of government
and provides the following services as authorized by its charter:
public safety, public works, and culture and recreation.
It is the policy of the City of Okeechobee to conform its accounting
pOlicies to generally accepted accounting principles applicable to
governmental units. The following is a summary of the more
significant principles and practices used in the preparation of these
financial statements.
(a) BASIS OF PRESENTATION - FUND ACCOUNTING
The accounts of the City are organized on the basis of funds
or account groups, each of which is considered a separate
accounting entity. The operations of each fund are.
accounted for with a separate set of self-balancing accounts
that comprise its assets, liabilities, fund balance/retained
earnings, revenues, and expenditures/expenses. The various
funds are summarized by type in the financial statements.
The following fund types and account groups are used by the
City:
GOVERNMENTAL FUND TYPES
Governmental Funds are those through which most
governmental functions of the City are financed. The
acquisition, use, and balances of the City's
expendable financial resources and the related
liabilities (except those accounted for in
proprietary funds) are accounted for through
governmental funds. The measurement focus is upon
determination of changes in financial position,
rather than upon net income determination. The
fOllowing are the City's government~l funo types:
GENERAL FUND
.The General Fund is the general operating fund
of the City. It is used to account for all
financial resources except those required to be
accounted for in another fund.
- 9 -
DiBartolomeo, McBee &it Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 1 - SUMMARY OF SIGNIFIC~,ACCOUNTING POLICIES (CONTINUED)
SPECIAL REVENUE FUND
Special Revenue Fund is used to account for the
proceeds of specific revenue sources (other than
special assessments, expendable trusts, or major
capital projects) that are legally restricted to
expenditures for specified purposes.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the
accumulation of resources for, and the payment
of, general long--term debt principal, interest,
and related costs.
PROPRIETARY FUND TYPE
A Proprietary Fund is used to account for the City's
ongoing organizations and activities which are
similar to those often found in the private sector.
The measurement focus is upon determination of net
income. The following is the City's proprietary fund
type:
ENTERPRISE FUND
The Enterprise Fund is used to account for
operations (a) that are financed and operated
in a manner similar to private business
enterprises - where the intent of the governing
body is that the costs (expenses, including
depreciation) of providing goods or services to
the general public on a continuing basis be
financed or recovered primarily through user
charges; or (b) where the gove~ning body has
decided that periodic determination of revenues
earned, expenses incurred, and/or net income is
appropriate. for capital maintenance, public
policy, management control accountability, or
other purposes.
- 10 -
DiBartolomeo, McBee &it Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 1 - SUMMARY OF SIGN}FIC~ ACCOUNTING POLICIES (CONTINUED)
FIDUCIARY FUND TYPE
Fiduciary Funds are used to account for assets held
by the City in a trustee capacity for individuals
and/or other funds.
TRUST FUND
Trust Funds include pension trust
Pension trust funds are accounted
reported as proprietary funds since
maintenance is critical.
funds.
for and
capital
The accrual basis of accounting is used by
proprietary funds and pension and nonexpendable
trust funds.
FIXED ASSETS AND LONG-TERM LIABILITIES
The accounting and reporting treatment applied to the
fixed assets and long-term liabilities associated
with a fund are determined by its measurement focus.
All governmental funds are accounted for on a
spending or "financial flow" measurement focus. This
means that only current assets and current
liabilities are generally included on their balance
sheets. Their reported fund balance (net current
assets) is considered a measure of "available
spendable resources." Governmental fund operating
statements present increases (revenues and other
financing sources) and decreases (expenditures and
other financing uses) in net current assets.
Accordingly, they are said to present a summary of
sources and uses of "available spendable resources"
during a period.
Fixed assets used in governmental fund type
operations (general fixed assets) are accounted for
in the General Fixed Assets Account Group, rather
than in governmental funds. No depreciation has been
provided on general fixed assets.
- 11 -
DiBartolomeo, McBee &it Sloan certified public accountants
-
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 1 - SUMMARY OF SIGNIFICbijT ACCOUNTING POLICIES (CONTINUED)
FIXED ASSETS AND LONG-TERM LIABILITIES (CONTINUED)
All fixed assets are valued at
Donated fixed assets are valued at
fair value on the date donated.
historical cost.
their estimated
Long-term liabilities expected to be financed from
governmental funds are accounted for in the General
Long-Term Debt Account Group, not in the
governmental funds.
The two account groups are not "funds.- They are
concerned only with the measurement of financial
position. They are not involved with measurement of
results of operations.
Because of their spending measurement focus,
expenditure recognition for governmental fund types
excludes amounts for noncurrent liabilities. Since
they do not affect net current assets, such long-term
amounts are not recognized as governmental fund type
expenditures or fund liabilities. They are instead
reported as liabilities in the General Long-Term Debt
Account Gro:up.
(b) BASIS OF ACCOUNTING
All governmental funds are accounted for using the modified
accrual basis of accounting. Revenues are recognized when
they become measurable and available as a resource to
finance operations of the current year. Uncollected ad
valorem taxes are not recorded as revenues because,
although measurable, they are not available until
collected. Accounts receivable for refuse,collection and
interest on investments are recorded as earned.
Expenditures are generally recognized, under the modified
accrual basis, in the accounting pe~iod in which the
liability is incurred. Exceptions to the rule include
accumulated unpaid employee vacation and sick pay, which
would not normally be liquidated with expendable available
resources within 60 days, principal and interest on general
- 12 -
DiBartolomeo, McBee &it Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
, ,.
BASIS OF ACCOUNTING (CONTINUED)
long-term debt which is recognized when due, and not
recognizing prepaid expenses so as to allocate expenditures
between years.
Proprietary Funds and Pension Trust Funds are accounted for
on the accrual basis. Revenues are recognized when earned
and expenses are recognized when they are incurred.
Unbilled water and sewer utility service revenues ($31,049
at September 30, 1986) are recorded at year end.
BUDGETARY DATA
The City enacts an annual budget, by ordinance, after
conducting the required public hearings. The budget
adopted is on a basis consistent with the accounting
principles followed by the City.
ENCUMBRANCES
The governmental funds use encumbrance accounting, under
which purchase orders, contracts, and. other commitments for
the expenditure of funds are recorded in order to reserve
that portion of the applicable appropriation. Open
encumbrances are reported as reservations of fund balances
since the commitments will be honored through subsequent
years' budget appropriations. Encumbrances do not
constitute expenditures or liabilities. As of September
30, 1986 encumbrances in the General Fund amounted to
$29,817.
CASH
Cash accounts for the
interAst-bearing accounts.
City
maintained
in
are
I NVESTMENI'S
Investments, consisting of
money market accounts,
approximates market.
certificates of
are stated at
deposit and
cos t which
- 13 -
DiBartolomeo, McBee &it Sloan certified public actountant~
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g) INVENTORY
The inventory of motor fuels is stated at cost determined
on a first-in, first-out basis.
(h) PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment acquired for general
governmental purposes are recorded as expenditures in the
General Fund and capitalized at cost in the general fixed
assets group of accounts. No depreciation has been
provided on general fixed assets. The utility plant and
equipment utilized in the City's water and sewer systern is
stated at cost.
Depreciation has been provided principally at a composite
rate of 2-1/2% per year for assets acquired prior to
October 1, 1981. Assets acquired after October 1, 1981 are
depreciated by the straight-line method over their
estimated useful lives for periods of five to forty years.
Interest costs on construction in progress for the City's
sewer plant are capitalized and added to the cost of
construction and will be amortized over the estimated
useful life of the plant (See Note 4).
(i) ALLOCATION OF ADMINISTRATIVE CHARGES
Certain administrative expenses are incurred by the City's
General Fund on behalf of the City's Water and Sewer Fund.
The General Fund charges for these services based upon
estimates of City management personnel. The reimbursement
for these services is recorded as an operating expense of
the Water and Sewer Fund and as a reduction of financial
and administrative expense of the General Fund. For the
year ended September 30, 1986, these charges amounted to
$46,579.
(j) , VACATION AND SICK LEAVE
Full-time and permanent employees accrue
ranging from six days after six months
a paid vacation
of continuous
- 14 -
DiBartolomeo, McBee & Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 1 - SUMMARY OF SIGNIFlCANT ACCOUNTING POLICIES (CONTINUED)
(j) VACATION AND SICK LEAVE (CONTINUED)
service up to 20
Unused vacation
thirty days.
days after fifteen years
may be accumulated up to a
of service.
maximum of
Sick leave for employees is accumulated at the rate of 12
days per year. Payment for unused sick leave upon
termination of employment may be made for employees with 10
years or more of continuous service at a rate of 25% of the
unused sick leave balance.
The amount of vacation leave to be paid from current
financial resources is included with accrued liabilities in
the General Fund whereas the vested portion of sick leave
and balance of vacation leave is included under long-term
debt.
(k) TOTAL COLUMNS ON COMBINED STATEMENTS
The columnS entitled "Totals (Memorandum Only)" included in
the combined financial statements section of this report
are presented only to facilitate financial analysis. These
total columns are not comparable to consolidated financial
information as the basic reporting entity is by fund type
which utilizes differing bases of accounting. In addition,
interfund eliminations have not been made in the
aggregation of this data.
NOTE 2 - PROPERTY TAXES
The City's property tax is levied each October 1 on the assessed
value listed as of the prior January 1 for all real and tangible
personal property located in the City. Assessed values are
established by the County Property Appraiser at 100 percent of
estimated market value. The assessed value for the 1985/86 levy was
$85,107,175.
Taxes are due no later than March 31 with discounting of taxes being
offered for early payment. Discounts range from 4% if taxes are paid
in November to 1% for taxes paid in February. Current tax
collections for the year ended September 30, 1986 were 98.48% of the
tax levy.
- 15 -
DiBartolomeo, McBee & Sloan certified public accountant;
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 3 - PROPERTY, PLANT, ANUEQUIPMENT
The carrying value of property, plant, and equipment recorded in the
water and sewer fund as of September 30, 1986 is summarized as
follows:
Utility plant in service -
Balance, September 30, 1985
Acquired during the year ended
September 30, 1986 {including
additions to construction-in-
progress of $981,506
$ 9,690,863
1,243,962
Disposed during the year ended
September 30,1986
Total
Less accumulated depreciation
(28,458)
10,906,367
1,661,941
NET BOOK VALUE
$ 9,244,426
------------
------------
The carrying value of property, plant
1986 included $2,851,885 in carrying
to October 1, 1981. Depreciation
September 30, 1986 was $235,724.
and equipment at September 30,
value of assets acquired prior
expense for the year ended
Construction-in-progress additions for the current year included
$128,702 of capitalized interest associated with the new wastewater
collection and wastewater treatment systems presently being
constructed by the City (See Note 11).
A summary of changes in General Fixed Assets for the year ended
September 30, 1986 is as follows:
- 16 -
DiBartolomeo, McBee & Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 3 - PROPERTY, PLANT, AND EQUIPMENT (CONTINUED)
\ .
Balance
10-1-85
Retire-
Additions ments
Balance
9-30-86
i:...and and improvements $
Buildings and improve-
Dents
Furnishings and equipment
Falling stock
$
$
$
805,358
805,358
257,905
302,750
331,397
79,043
257,905
381,793
331,397
TOTAL
$1,697,410
$79,043
$
$1,776,453
----------
-------.---
-------
-------
------
------
----------
----------
During the current year the City sold four lots appraised at $5,800
for $4,000. This property was donated to the City in 1965 and was
not included or valued within the General Fixed Assets group of
accounts.
NOTE 4 - CONSTRUCTION IN PROGRESS
Reflected within the Property, Plant, and Equipment account in the
Water and Sewer Fund is $201,041 which represents engineering fees
for the propsed expansion to the wastewater treatment system. The
balance of $2,017,505 in construction in progress is the wastewater
collection system for the wastewater treatment facilities. The City
is presently involved in litigation with the contractor for that
project, a joint venture of Taddie Undergroud utility Company, Inc.
and M & M Contracting Company, concerning substandard work. That
portion of the project was stopped during the year prior to
completion.
NOTE 5 - LONG-TERM DEBT
Long-term debt as of September 30, 1986 is summarized as follows:
GENERAL LONG-TERM DEBT
$480,500 original issue General
Obligation Bonds, due in annual
installments of $15,000 to $35,000
through July 1, 1996
$ 280,000
- 17 -
DiBartolomeo, McBee &c Sloan certified public accoUntants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 5 - LONG-TERM DEBT ~CON~J~ED)
Notes payable:
7% capital improvement notes to a bank
due $9,500 semiannually, plus interest,
through May 1988: secured by and payable
from a pledge of the City's share of one
half cent Florida State sales tax
38,000
8% capital improvement note to a bank,
due $9,167 annually, plus interest, through
1988: collateralized by funds other than ad
valorem taxes
18,332
8.5% installment note, due $1,123 monthly,
including interest, through January 1,
1987: secured by equipment with a carrying
value of $48,754
3,605
8.49% installment note, due $304 monthly,
including interest, through September 15,
1987: secured by equipment with a carrying
value of $10,500
TOTAL GENERAL LONG-TERM DEBT
_3: 45_~.
$ 343,433
---------.
---------
REVENUE BONDS
$400,000 original issue 1972 Water
and Sewer Serial Bonds, due in
annual installments of $5,000
to $24,000 through January 1, 2012:
interest at 5%
$ 342,000
$1,000,000 original issue 1983 Water
and Sewer Serial Bonds, Series A,
due in annual installments of
$10,000 to $110,000 through January 1,
2004: interest rate of 10-1/2%: net
of unamortized discount of $26,174
943,826
- 18 -
DiBartolomeo, McBee &t Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TJ COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 5 - LONG-TERM DEBT rCO:NT~.~!UED)
REVENUE BONDS (CONTINUED)
$2,212,900 original issue 1983 Water
and Sewer Bonds, Series B, due in annual
installments ranging from $2,900 to
$105,200 through Septewber 1, 2025:
interest rate of 8-5/8%
TOTAL REVENUE BONDS
2,196,771
3 , 4 8 2 , 597_
Less current portion
(27,ODO)
$3,455,597
- - -. -.- - -- _.. -. --.
--_.~-------
Outstanding general obligation bonds are redeemable at the option uf
the City on any interest payment date by payment of a premium ot ~
percent through 1986, 2 percent between 1986-91, and 1 percent after
July 1, 1991. Interest is payable at 6.75 pe:ccent for bondiJ maturiWJ
through 1990, at 6.875 percent for bonds maturing 1991 t.hrough 19.95,
and at 6.75 percent for bonds maturing in 1996.
The 1972 water and sewer revenue bonds are secured by a pledge of the
net revenues of the water and sewer system and cigarette taxes from
the General Fund. The bonds are redeemable in whole or in part in
inverse order on any interest date at par and accrued interest.
1983 Water and Sewer Revenue Bonds, Series A and Series B, are
secured by a pledge of the net revenues of the water and sewer
system, public service taxes, franchise revenues and state revenue
sharing funds. The pledge of and lien on City funds for the 1983
Series A and Series B rank on a parity with the pledge of and lien on
the City funds to secure payment of the outstanding 1972 water and
sewer revenue bonds. For the 1983 Series A, bonds maturing after
January 1, 1994 and prior to January 1, 2000 are redeemable by
payment of a premium ranging from 3% to 1/2%. Bonds maturing after
January 1, 2000 are redeemable at par. For the 1983 Series B, bond
principal payments maturing after September 1, 1992 and prior to
September 1, 2004 are redeemable by payment of a premium ranging from
4% to 1%. Bond principal payments ~aturing after September 1, 2004
i'..re redeemable at par. T}lE:: bonds are Jleld by the Farmers Home
Administration whereupon the City has the option of redeeming, on any
interest due date, the bonds without a premium.
The various
maintenance and
bond indentures
flow of monies
contain provisions
through various
which
spec if ic
require
fund s ,
- 19 -
DiBartolomeo, McBee &it Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
5 - LONG-TERM DEBT (CONTINUEn).
..
mum and maximum amounts to be maintained in various sinking funds
restricted funds. The City is in compliance with all such
ificant limitations and restrictions.
onjunction with the issuing of the 1983, Series A, Water and
r Revenue Bonds, the City entered into an escrow deposit
ement with Barnett Banks Trust Company, N.A. of Jacksonville,
ida for the purpose of depositing sufficient funds in escrow to
the remaining principal and interest payments of the 1958 Water
Sewer Revenue Bond issue and to pay all costs associated with the
gement of the escrow account.
ary of the changes in all long-term debt for the year ended
ember 30, 1986 is as follows:
- 20 -
DiBartolomeo, McBee & Sloan certified public accountants
.
.
I
I
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 5 - LONG-TERM DEBT (CONTINUED)
General
General
Obligation
Bond s
Long-Term D~~
Proprietary
Water and Sewer
Revenue Bonds
1972
Series
Total
Total
Long-Term
Debt
1983A
Series
1983B
Series
Notes
Payable
Total
Balance, September 30, 1985 $300, 000 $107,407 $407,407 $348,000 $ 990,000 $2,212,900 $3,550,900 $3 ,958,307
Payments during the year 20,000 43,974 63,974 6,000 20,000 16,129 42,129 106,103
TOTAL 280,000 63,433 343,433 342,000 970,000 2,196,771 3,508,771 3,852,204
Less unamortized bond discount 26,174 26,174 26,174
--- -
Balance, September 30, 1986 $280,000 $ 63.433 5343,433 $342,000 $ ;)43,826 $2, 196, 771 $3,482,597 $3,826,030
-------- -------- -------- -------- -- - -'.,- .- - - - - - ---------- _._-------- -----~-----
-------- -------- ~-------- -------- ---._------- ---------- ---------- ------.-----
Less Current Portion
(Proprietary Fund) 7,000 20,000 27,000 82, 269
$335,000 $ 923,826 $2,196,771 $3,455,597 $3 , 74 3 , 7 61
-------- -- -,._------ ---------- ,---------- ----------
-------- ----------- ------------ ----------- ----------
Annual principal requirements
for the next five years are
as follows:
Year ended September 30,
1987
1988
1989
1990
1991
Thereafter
$ 20,000 $ 35,269 $ 55,269 $ 7,000 $ 20,000 $ $ 27,000 $ 82,269
25,000 28,164 53,164 7,000 25,000 7,100 39,100 92,264
25,000 25,000 7,000 25,000 7,700 39,700 64,700
25,000 25,000 8,000 30,000 8,500 46,500 71,500
25,000 25,000 8,000 30,000 9,300 47,300 72,300
160,000 160,000 305,000 __8 4 ~il J)() 2-,JJ> 4 , 171 3,309,171 ~3 ,469,171
r
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS
SEPTEMBER 30, 1986
NOTE 5 - LONG-TERM DEBT 1CONTJNUED)
In reference to the 1983B series Water and Sewer Revenue Bonds in
July 1986, the City was notified of the option available under public
law 99-88 to select the lower interest rate in effect at the time of
closing or at the time of approval. The City has selected the lower
interest rate of 8.625% rather than as previously set at 9 3/4% (R-1)
and 9 1/8% (R-2). The Farmers Home Adminstration (holders of the
bonds) has notified the City that the amortization schedules will be
adjusted. As of this time the adjusted amortization schedules are
not available; therefore, the long-term debt schedule of annual
retirements reflects the rate of amortization before adjustment.
NOTE 6 - CONTRIBUTED CAPITAL
The source and additions to contributed capital are as follows:
Source
Connection fees $
Developers
Federal grant
Local Public Works Grant
Federal Revenue Sharing Funds
General Fund
Okeechobee Beach Water
Association
Environmental Protection
Agency Grant
TOTAL
Balance
10-1-85
Additions
376,870
338,761
226,063
417,740
619,572
100,000
$ 44,888
521,247
275,000
918,941
$3 , 272,947
402,776
$ 968,911
----------
----------
----------
----------
NOTE 7 - REVENUE BOND RESERVE AND RETIREMENT FUNDS
Balance
9-30-86
$ 421,758
338,761
747,310
417,740
619,572
100,000
275,000
1,321,717
$4,241,858
----------
----------
The 1972, 1983 Series A and 1983 Series B Water and Sewer Revenue
Bond ordinances require, among other things. deposits on a monthly
basis. of amounts necessary to provi.de for semi-annual and annual
inteLest and annual principal requirements. In addition the 1972
Revenue Bond ordinance requires a reserve of $24,350 while the 1983
Revenue Bond ordinance requires a reserve equal to the maximum annual
debt service requirement on outstanding bonds, whi~h is $124,750 for
the Series A and $21,527 for the Series B at September 30, 1986. At
- 23 -
DiBartolomeo, McBee &: Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 7 - REVENUE BOND RESERVE AND RETIREMENT FUNDS (CONTINUED)
\ >
September 30, 1986, the amounts on deposit are as follows:
1972
Revenue
Bonds
Maximum reserve $24,350
Deposits for bond principal
and interest requirements 18,075
Balance of construction funds
required to be deposited
in sinking fund 2,380
September 30, 1986 $44,805
-------
-------
1983
Series A
Revenue
Bonds
1983
Series B
Revenue
Bonds
Total
$124,750
40,463
$21,527 $170,627
17,347 75,885
2,380
$165,213
$38,874 $248,892
--------
--------
------- --------
------- --------
At September 30, 1986, amounts included in restricted assets (cash
and investments) in the accompanying combined balance sheet for these
requirements totalled $767,697. See Schedule 8 for Adjustments and
allowances to these reserve and retirement balances.
NOTE 8 - RENEWAL AND REPLACEMENT FUND
The 1983 Revenue Bond ordinance requires monthly deposits of $1,667
into a renewal and replacement fund until accumulated deposits total
$100,000. The fund may be used for costs of extensions,
enlargements, or additions to, or replacement of capital assets of
the sewer system and emergency repairs. At September 30, 1986,
$55,000 was required to be on deposit. Investments included as
restricted assets in the accompanying combined balance sheet for the
renewal and replacement fund totalled $30,013 in a certificate of
deposit and $238,720 in pooled certificates of deposit.
NOTE 9 - PENSION PLANS
The City has three pension plans covering substantially all the
City's regular employees. Total pension expense fo:r; the year was
$44,845 including, with respect to the general employees benefit
plan, amortization of past service cost over a 33 year period. It is
the City's policy to fund pension expense as determined by actuarial
valuation. Mandatory employee contributions to the plans are at the
- 24 -
DiBartolomeo, McBee & Sloan certified public accountantS
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMER 30, 1986
NOTE 9 - PENSION PLANS (CONT~NUED)
rate of 5% of earnings. Accumulated employee contributions at
September 30, 1986 are as follows:
TOTAL
$ 170,722
66,499
25,560
$ 262,781
General
Police
Fire
---------
---------
The City's contribution by fund for the year ended September 30, 1986
was:
TOTAL
$ 23,086
21, 7 59
$ 44,845
General Fund
Proprietary Fund
---------
---------
The plans covering the City's firefighters and pOlice officers are
also funded by the State of Florida from a tax on fire insurance
premiums collected. State contributions to these plans totalled
$11,851 and $42,024, respectively, during the year ended September
30, 1986.
A summary of the actuarial present value of accumulated plan benefits
and plan net assets as of October 1, 1986 (the most recent valuation
date) is as follows:
General Police Fire
VESTED BENEFITS
Terminated members $ 7 , 637 $ $
Other members 239,876 69,286 29,527
247,513 69,286 29,527
Nonvested benefits 3,830 10,278 2, 076
TOTAL ACTUARIAL PRESENT VALUE
OF ACCUMULATED PLAN BENEFITS $ 251,343 $ 79,564 $ 31,603
--------- --------- ---------
_______4-__ --------- ---------
NET ASSETS AVAILABLE FOR BENEFITS $ 613,308 $ 416,102 $ 154,571
--------- --------- ---------
--------- --------- ---------
ACTUARIAL ASSUMED INVESTMENT
RATE OF RETURN
7%
7%
7%
- 25 -
DiBartolomeo, McBee & Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1986
NOTE 9 - PENSION PLANS (CONTINUED)
Principal actuarial assumptions used in the valuation above are
summarized as follows:
Mortality - The 1951 Group Annuity Mortality
Table Projected by Scale C to 1970
(regraduated): females set back 5 years.
Interest - 7% per year compounded annually, net
of expenses.
Retirement age - 60 for pOlice officers and fire-
fighters, 65 for all other employees,
immediately if over assumed retirement age.
Salary increases - 6% for police and general: 7%
for firefighters, until the assumed retirement
age.
Funding method - Frozen entry age actuarial cost
method.
NOTE 10 - HOSPICE GRANT
The C~ty applied for and received a Community Services Block Grant of
$5,625. Hospice of the Treasure Coast-Okeechobee Branch was the
subgrantee. The City received the funds and, upon presentation of
invoice by Hospice, would disburse the funds thereto accordingly, up
to the total amount of grant monies. Also received and disbursed in
the current year was $471 applicable to the prior year grant.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
As of September 30, 1986, the City has been awarded grants totalling
$1,000,000 from Farmers Home Administration and $1,339,700 from the
Environmental Protection Agency to be used in connection with
construction of the City's ~w----w~tewater treatment plant. During
the current fiscal year,/$521, 2~47 Wias re~eived from the Farmers Home
Administration Grant an~402,776 from the Environmental Protection
Agency Grant. Additional granc a locations of approximately $91,000
from the Environmental Protection Agency have been allowed due to
cost overruns through September 30, 1986.
- 26 -
DiBartolomeo, McBee &t Sloan certified public accountants
r
,.
GENERAL FUND
SCHEDULE OF REVENUES
(BUDGET AND ACTUAL)
>,
:1
it
Ii
il
I!
j
I
CITY OF OKEECHOBEE, FLORIDA
YEAR ENDED SEPTEMBER 30, 1986
..
Variance
Favorable
Budget Actual (Unfavorable)
TAXES
Ad valorem taxes $ 344,115 $356,719 $ 12,604
Franchise fees 205,225 206,335 1,110
Utility service taxes 180,100 207,756 27,656
729,440 770,810 41,370
INTERGOVERNMENTAL REVENUES
State shared revenue
Cigarette tax 92,235 95,318 3,083
State revenue sharing 176,000 175,972 (28 )
Mobile home licenses 1,200 2,233 1,033
1/2 cent sales tax 90,000 127,611 37,611
Alcoholic beverage licenses 1,200 2,291 1,091
Gasoline tax refund 1,800 2,477 677
Local option gasoline tax 217,500 205,940 (11,560)
579,935 611,842 31, 907
Shared Revenues from Other
Local Units
County occupational
licenses 2,000 6,881 4,881
Dual tax - County 8,774 (8,774)
City share of 5th and
6th cent gas tax 48,,000 80,166 32,166
58,774 87 , 047 28, 273
TOTAL INTERGOVERNMENTAL
REVENUES 638,709 698,889 60,180
CHARGES FOR SERVICES
Sanitation fees 270,000 288,872 18 , 872
Miscellaneous 150 794 644
270,150 289,666 19,516
LICENSES AND PERMITS
Occupational licenses 26,000 41,498 15,498
26_,000 41,498 15,498
FINES AND FORFEITURES
Court fines 25,000 25,830 830
Police education 900 1,434 534
Code enforcement fines 1,067 1,067
Miscellaneous 1,401 1,401
25,900 29,732 3,832
- 27 -
DiBartolomeo, McBee & Sloan certified public accountants
r
1
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES (CONTINUED)
(BUDGET AND ACTUAL)
YEAR ENDED SEPTEMBER 30, 1986
\.
Budget
Actual
Variance
Favorable
(Unfavorable)
TOTAL
$ 20,000 $ 30,978 $ 10,978
6, 096 6 , 096
500 1, 597 1, 097
500 6,464 5,964
2,750 3,045 295
500 - (500)
4,250 17 , 202 12,952
$1,714,449 $1,878,775 $164,326
---------- ---------- --------
---------- ---------- --------
INTEREST EARNINGS
MISCELLANEOUS
Hospice Grant (Note 10)
Other
Sale of assets
Rents and royalties
Refunds of prior year
expenditures
- 28 -
DiBartolomeo, McBee & Sloan certified public accountants
II
I
I
.
.
.
.
.
.
.
.
.
.
.
PUBLIC SAFETY
Law Enforcement
Personal services
Operating expenses
Capital outlay
Fire Control
Personal services
Operating expenses
Capital outlay
TOTAL PUBLIC SAFETY
GENERAL GOVERNMENT
Legislat1.ve
Personal serV1.ces
Operating expenses
Capital outlay
Executive
Personal services
Operating expenses
Capital outlay
Financial and Administrative
Personal services
Operating expenses
Capital outlay
Allocation of administrative
cha'-'ges
-
G~N~RAL r'U NU
SCHEDULE OF EXPENDITURES
(BUDGET AND ACTUAL)
YEAR ENDED SEPTEMBER 30, 1986
Budget
Payment
of Prior
Year
Encum-
brances
Actual on
Budgetary
Basis
Variance
Favorable
(Unfavor-
able)
1986
Encum-
brances
Actual
$ 439 , 07 8 $ 445,888 $ c' $ 445,888 $ (6,810)
~.
84,616 90,352 3,902 86,450 (1,834)
68,320 60,188 1,234 711 59,665~ 8,655
592.014 596,428 592,003 11
..,
213 , 87 1 206,665' 206,665 7,206
69,639 82,176 109 82,067 (12,428)
17,768 4,125 3,004 7,129 10,639
301,278 292,96~ 295,861 5,417
893,292 889,394 887,864 5,428
24,828 27,408~
50,827 54,674
2,247 685,
77,902 82,767
49,004 39,118'
14,583 14,146
17,247 15,106
80,834 68,370
116,563 116,716.
39,561 44,967
16,654 8,253
(53,363) (46,579)"
119,415 123,357
185
27,408 (2,580)
54,674 (3,847 )
500 1, 747
82,582 (4,680)
39,118 9,886
14,125 458
15,106 2,141
68,349 12,485
116,716 (153)
44,967 (5,406)
8,139 8,515
(46, 579) (6,784)
123,243 (3,828)
21
114
.u';L;r..L'i.L7cr'i;a::;,--- :1:".-0"];"'4'0
1
I
!
SCHEDULE OF EXPENDITURES (CONTINVED)
(BUDGET AND ACTUAL)
YEAR ENDED SEPTEMBER 30, 1986
Payment
of Prior Variance
Year 1986 Actual on Favorable
Encum- Encum- Budgetary (Unfavor-
Budget Actual brances brances Basis able)
GENERAL GOVERNMENT (CONTINUED)
Judicial
Personal services $ 23,431 S 24,568 S $ $ 24,568 $ (1,137)
Operating expenses 9,676 8,050' 243 8,293 1,383
Capital outlay
33,107 32,618 32,861 246
TO Tf.,L GE~TERAL GOVERNMENT 311,258 307,112 307,035 4,223
'I'RANSPORTATION
Road and Street Facilities
Personal services 152,689 151,308 151,308 1,381
Operating expenses 117,710 119,208 ' 241 118.967 ( 1 , 257 )
Cap~tal outlay 382,226 257,238 25..859 283,097 99,129
652,625 527,754 553,372 99,253
PHYSICAL ENVIRONMENT
Garbage/Solid Waste Control
Services
Personal services
Operating expenses 230,150 268,823 ' 268,823 (38,673)
Capital outlay
230,150 268,823 268,823 (38,673)
HUMP.N SERVICES
Health
Personal services
Operating expenses 20,415 26,540 26,540 (6,125)
Capital outlay
20,415 26,540 26,540 -16~125)
CULTURE/RECREATION
Parks and Recreation
Per::>onal servl.C~~ $ S .~ ~ $ s
~ .,
Ope..cat:i.ng E:Ape.ises
Capital outlay 10,000 8,256' 8,256 1,744
10,000 8,256 8,256 1,744
CITY OF OKEECHOBEE, FLORIDA
GENERAL FUND
SCHEDULE OF EXPENDITURES (CONTINUED)
(BUDGET AND ACTUAL)
YEAR ENDED SEPTEMBER 30, 1986
Payment
of Prior
Year
Encum--
brances
1986
Encum-
brances
Budget
Actual
INTRAGOVERNMENT SERVICES
Public Works
Personal services
Operating expenses
Capital outlay
$ 26,035 $ 25,341 $ - c"
~,
3,520 3,377
209
29,5~5 28,927 -- ..'.--
$2,147,295 $2,056,806 $5,806 ;~ 2 9 , 817
----~----- ---------- ------ -. - - - - - -
---------- ---------- -~---- ... _ on .._ ... ~.. _.
TOTAL EXPENDITURES
Actual on
Budgetary
Basis
$
25,341
3,377
209
28,927
$2,080,817
- .- - - -- - - -- .- -
-.- ~.- -- -- - - ~-
Variance
Favorable
(Unfavor--
able)
."
$ 694
143
(2 09 )
628
--
$66,478
- .----~ -~~-
-------
CITY OF OKEECHOBEE, FLORIDA
SPECIAL REVENUE FUND - FEDERAL REVENUE SHARING
STATEMENT OF REVENUES AND EXPENDITURES
(BUDGET AND ACTUAL)
YEAR ENDED SEPTEMBER 30, 1986
, ,
Actual
Variance
Favorable
(Unfavorable)
Budget
REVENUES
Revenue sharing entitlements
$ 77, 696
$ 70,058
$ (7,638)
EXPENDITURES
77,696
70,058
(7,638)
OTHER FINANCING USES
Operating transfers out
54,000
75,116 (21,116)
EXPENDITURES OVER REVENUES
$ 23,696
$ (5,058) $ (28,754)
--------
--------
--------
--------
---.------
------.-.--
I
I
I
I
- 32 -
DiBartolomeo, McBee & Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
DEBT SERVICE FUND
STATEMENT OF REVENUES AND EXPENDITURES
(BUDGET AND ACTUAL)
YEAR ENDED SEPTEMBER 30, 1986
. ,
EXPENDITURES
Bond principal retirements
Bond interest expense
Professional fees
Variance
Favorable
(Unfavor-
Budget Actual able)
$ 15,094 $ 15,746 $ 652
3,220 3,220
15,094 18,966 3 , 872
20,000 20,000
20,438 20,438
500 500
40,938 40,938
REVENUES
Ad valorem taxes
Interest income
REVENUES OVER (UNDER)
EXPENDITURES
$ (25,844)
$ (21,972)
$ 3 ,872
---------
---------
---------
---------
-------
-------
- 33 -
DiBartolomeo, McBee & Sloan certified public accountants
Balance - September 30, 1985
ADDITIONS
From Operating Fund
Bond principal requirement
Bond interest requirement
Renewal and replacement requirement
Interest earned on investments
DEDUC'1'IONS
Payments for
Bond principal
Bond interest
Transfer to Revenue Fund
LIABILITIES PAYABLE
From Restricted Assets
Current portion of bonds payable
Accrued interect
Balance - September 30, 1986
CITY OF OKEECHOBEE, FLORIDA
WATER AND SEWER ENTERPRISE FUND
SCHEDULE OF CHANGES IN RESERVE ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1986
Total
Reserved
$278,58B
27,700
329,257
20,000
27,135
404,092
42,129
298,809
37 ~ 850
378,788
303,892
27,000
29,738
56,738
$247,154
--------
--.--- -.---
Renewal
and Replace-
ment Fund
$35,000
20,000
4,468
24,468
4,468
4,468
55,000
$55,000
-------
-------
Total
$243,588
27,700
329,257
22,667
379,624
42,129
298,809
33,382
374,320
248,892
27,000
29,738
56,738
$192,154
---------
--------
Bond Reserve and
Retirement Fund
Current
Maturities
$ 73,911
..,
26,750
329,257
10,614
366,621
42,129
298,809
21,329
362,267
$ 78,265
--------
--------
Maximum
Reserve
$169,677
950
12,053
13,003
12,053
12,053
$170,627
--------
--------
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1986
~ ,
Police General
Officers' Firemen's Employees'
Retirement Retirement Retirement
ASSETS Fund Fund Fund Total
Investments in savings
certificates and
money market accounts
(at cost, which
approximates market) $ 416,102 $ 154,571 $ 613,308 $ 1, 183,981
--------- --------- --------- -----------
--------- --------- --------- -----------
FUND BALANCE
Fund balances -
Reserved for
retirement $ 416,102 $ 154,571 $ 613,308 $ 1,183,981
--------- --------- --------- -~---------
--------- --------- --------- -----------
- 35 -
DiBartolomeo, McBee & Sloan certified public accountantS
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1986
'-
Police
Officers'
Retirement
Fund
Firemen's
Retirement
Fund
General
Employees'
Retirement
Fund
Total
REVENUES
State tax on
insurance premiums
Employer's
contributions
Employees'
contributions
Interest earnings
$ 42,260
$ 11,851
$
$ 54,111
410
44,435
44,845
56,891
83,417
239,264
12,934
29,635
84,829
7,635
10,862
30, T58
36,322
42,920
123,677
EXPENSES
Employees' contribution
refunds
Retirement benefits
paid
REVENUES OVER
EXPENSES
15,224 2,593 11,087 28,904
685 685
15,224 2,593 11,772 29,589
69,605 28,165 111,905 209,675
346,497 126,406 501,403 974,306
$416,102 $154,571 $613,308 $1,183,981
-------- -------- -------- ----------
-------- -------- -------- ----------
Fund balances,
September 30, 1985
Fund balances,
September 30, 1986
- 36 -
DiBartolomeo, McBee &it Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED SEPTEMBER 30, 1986
SOURCES OF WORKING
CAPITAL
Excess of revenues
over expenses
USES OF WORKING CAPITAL
INCREASE IN
WORKING CAPITAL
I
ELEMENTS OF INCREASE
(DECREASE) IN WORKING
CAPITAL
Cash
Investments, at cost
INCREASE IN
WORKING CAPITAL
. .
Police
Officers'
Retirement
Fund
$69,605
$69,605
-------
-------
$ 1,105
68,500
$69,605
-------
-------
Firemen's
Retirement
Fund
General
Employees'
Retirement
Fund
Total
$28,165
$111,905
$209, 675
$28,165
$111,905
$209,675
-------
-------
--------
--------
--------
--------
$ 1,165 $. (8,595) $ (6,325)
27,000 120,500 216,000
$28,165 $111,905 $209,675
------- -------- --------
------- -------- --------
- 37 -
DiBartolomeo, McBee &it Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
SUMMARY OF INSURANCE COVERAGE - UNAUDITED
SEPTEMBER 30, 1986
DESCRIPTION
COVERAGE
\..
FIRE AND EXTENDED COVERAGE
Buildings and contents (90 percent
co-insurance - $100 deductible)
$ 1,763,000
COMPREHENSIVE GENERAL LIABILITY
Personal injury liability
601,000
LAW ENFORCEMENT LIABILITY
Bodily injury, personal injury,
property damage ($1,000 deductible)
2,000,000
Workers' compensation and employer's liability
Statutory rates
VEHICULAR EQUIPMENT
Bodily injury and property damage
uninsured motorist
Collision ($250 deductible)
Comprehensive ($250 deductible)
500,000
35,000
ACV
ACV
Scheduled property floater ($250 deductible)
452,346
PUBLIC OFFICIALS BONDS
City clerk
Other employees
20,000
20,000
Public official liability ($1,000 deductible)
1,000,000
- 38 -
DiBartolomeo, McBee &: Sloan certified public accountants
CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF ASSESSED VALUES, TAX LEVIES
AND RATES - UNAUDITED
Year
Real
Property
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
$7 0 , 5 3 3 , 9 85
59,835,384
57,820,098
54,725,644
57,589,660
57,036,510
51, 225,720
34,756,690
34,065,350
28,053,703
LAST TEN YEARS
"
Assessed Values
Personal
Property
$14,573,190
14,042,767
13,060,620
12,102,101
10,664,660
10,475,123
9,725,167
8,787,664
8,587,844
6,872,990
Total
$85,107,175
7 3 , 87 8, 151
70,880,718
66,827,745
68,254,320
67,511,633
60,950,887
43,544,354
42,653,194
34,926,693
Homestead
Exemption
$20,215,053
19,504,959
19,007 ,098
17,665,060
14,162,210
14,061,980
5,173,430
5,034,700
4,905,430
4,702,690
Tax Levies and Applicable Rates
Levies Rates
Debt General
Debt General Service Government
Year Service Government Mills Mills
1986 $15,873 $361,791 $ .150 $4 . 2 51
1985 14,008 314,056 .150 4.251
1984 13,483 307,480 .150 4.338
1983 12,674 261,497 .150 3.913
1982 8,668 291,007 .127 4.250
1981 8,574 286,924 .127 4.250
1980 36,386 335,209 .58 5.500
1979 40,248 179,780 .83 4.137
1978 41,852 168,054 .88 3.940
1977 43,989 157,519 1.11 4.510
- 39 -
DiBartolomeo, McBee & Sloan certified public accountants
-
1
I
CITY OF OKEECH03EE, FLORIDA
SCHEDULE OF CERTAIN REVENUES AND (TTILITY CUSTOMERS - UNAUDITED
LAST TEN YEARS
REVENUES - OTHER THAN PROPEHTY TAXES - GENERAL FUND
State Fire
Revenue Depart-
Sharing Occupational Utility Fines and Franchise ment Anti-Recession
Year (Note) Licenses Taxes Forfeitures Fee Permi ts Interest Payment Fund Miscellaneous
1986 $398,901 $41,498 $207,756 $29,731 $206,335 $ $30,978 $ $ $12,952
1985 349,607 38,484 196,168 28, 092 208,614 16,268 31,791 9,573
1984 346,742 42,119 133,768 22,764 185,428 2:S,508 34,363 31,083
1983 329,260 40,138 118.812 20,493 152,921 14,836 25 . 091 21,985
1982 251,194 32,175 114,551 23,031 154,823 10,493 64,132 .13,250
1.981 257,325 22,228 108,286 13,813 137,759 23,459 69,536 4,240
1980 243,055 20,084 100,857 19,827 110,587 12,995 61,733 1, 671
1979 251.212 20,551 93,107 18,125 93,232 10,356 76,173 2,035
1978 243,923 17,974 92,458 18.317 87,758 7,401 54,990 7,776 25,863 7 , 076
1977 235,839 18,783 82,858 24,817 72,821 ~,349 49,860 35,000 51,084 16,662
Connec-
tion
Inter- Charges Water Water
Sewer Delin- est on {in Aid Meters Water Meters Total Un- Sewer
Service Water Impact quent Miscel- Invest - of Cons- Hydrant in Oper- Meters Nonoper- Water Metered Connec-
Year fhar~s_ Billings Fees Charges laneous ments truction Rental ation Cut Off ation Meters Customer tions
-- --
1986 $277,353 $1,064,484 $260,382 $30,417 $21,141 $103,288 $ 44,888 $9,360 3,360 351 4,113 671
1.985 184,075 946,425 212 , 7 87 20, 671 8,583 233,511 110,181 7,320 3,507 328 3,835 512
1984 135,993 835,234 29,012 14,573 9,663 110,367 20,112 7,320 3,275 336 3,611 462
1983 130,189 712,251 26,775 20,146 11,219 52,912 25,163 '0,000 3,102 370 3,472 462
1982 109,448 701,272 17,372 22,324 73,181 13,400 27,000 3,129 130 13 3,272 462
1981 82,359 569,905 12,228 6,647 70,738 24,525 27,000 2,979 222 13 3,214 459
1980 79,453 535,973 9,580 6,732 53,657 15,650 23,280 2,849 272 1 3,122 450
1979 66, 844 494,849 9,280 5,557 33,288 23,460 22,440 2,738 286 13 3,037 430
1978 59,724 136,451 9,140 3,058 3U,1)61 19,975 25,000 2.612 236 19 2,867 428
1977 59,506 413,666 10,220 2,838 l8,225 13,660 25,000 2,454 281 6 2,741 10 424
Note - Includes additional two-cent cigarette tax and 1/2 cent sales tax
- 40 -
Jm
DiBartolomeo, McBee & Sloan
Gerald A. DiBartolomeo Jr., C.P.A.
Jay L. McBee, C.P.A.
Rita B. Sloan. C.P.A.
Kim T. Bolin, C.P.A.
Certified Public Accountants
To the City Council
Ci ty of Okeechobee ~,
Okeechobee, Florida
I
We have examined the general purpose financial statements
of the City of Okeechobee, Florida for the year ended
September 30, 1986 and have issued our report thereon dated
February 2, 1987. As part of our examination, we made a
study and evaluation of the internal control systems,
including appliCable internal administrative controls, used
in administering the Federal financial assistance programs
to the extent we considered necessary to evaluate the
systems as required by generally accepted auditing
standards, the standards for financial and compliance
audits contained in the Standards for Audit of Governmental
Organizations, Programs, Activities, and Functions, issued
by the u.s. General Accounting Office, the Single Audit Act
of 1984, and the provisions of OMB Circular A-128, Audits
of State and Local Governments. For the purpose of this
report, we have classified the significant internal
accounting and administrative controls used in
administering the Federal financial assistance program in
the following categories:
Cycles of activity
a. Revenue/receipts
b. Purchases/disbursements
Financial Statement categories
a. Cash
b. Receivables
c. Property and equipment
d. Payables and accrued liabilities
e. Notes and leases payable
f. Fund balance
Accounting applications
d. Billings
b. Receivables
c. Cash receipts
d. Accounts payable
e. Cash disbursements
f. Payroll
g. General ledger
- 41 -
900 Professional Centre
900 Virginia Avenue, Suite 12,
P.O. Box 2546, Ft. Pierce, FL 33454
11r1<;\ Aj;;l QQ11
Medallion Building
1981 S.E. Port St. Lucie Boulevard
Port St. Lucie. Florida 33452
To the City Council
City of Okeechobee
Page 2
The management of the City of Okeechobee, Florida, is
responsible for establishing and maintaining internal
control systems used in administering the Federal financial
assistance programs-.' ~n fulfilling that responsibility,
estimates and judgments by management are required to
assess the expected benefits and related costs of control
procedures. The objectives of internal control systems
used in administering the Federal financial assistance
programs are to provide management with reasonable, but not
absolute, assurance that, with respect to the Federal
financial assistance programs, resource use is consistent
with laws, regulations, and policies~ resources are
safeguarded against waste, loss, and misuse~ and reliable
data are obtained, maintained, and fairly disclosed in
reports.
Because of inherent limitations in any system of internal
accounting and administrative controls used in
administering the Federal financial assistance programs,
errors or irregularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the
systems to future periods is subject to the risk that
procedures may become inadequate because of changes in
conditions or that the degree of compliance with the
procedures may deteriorate.
Our study included all of the applicable control categories
listed in the first paragraph. During the year ended
September 30, 1986, the City of Okeechobee, Florida, had no
major Federal financial assistance programs and expended
all of its total Federal financial assistance under the
following nonmajor Federal finance assistance programs
except for Federal Revenue Sharing of $12,732 which was not
received until the end of the fiscal year: Farmers Home
Administration, Water Management Division of Environmental
Protection Agency, Federal Revenue Sharing and Community
Services Block Grant. With respect to internal control
systems used in administering these nonmajor Federal
financial assistance programs, our study and evaluation
included considering the types of errors and irregularities
that could occur, determining the internal control
procedures that should prevent or detect such errors and
irregularities, determining whether the necessary
procedures are prescribed and are being followed
satisfactorily, and evaluating any weaknesses.
With respect to the internal control systems used solely in
administering the nonmajor Federal financial assistance
program of the City of Okeechobee, Florida, our study and
evaluation was limited to a preliminary review of the
- 42 -
...~, -
To the City Council
City of Okeechobee
Page 3
systems to obtain an understanding of the control
environment and the flow of transactions through the
accounting system. Our study and evaluation of the
internal control system~, used solely in administering the
nonmajor Federal financial assistance programs of the City
of Okeechobee, Florida, did not extend beyond this
preliminary review phase.
Our study and evaluation was more limited than would be
necessary to express an opinion on the internal control
systems used in administering the Federal financial
assistance programs of the City of Okeechobee, Florida.
Accordingly, we do not express an opinion on the internal
control systems used in administering the Federal financial
assistance programs of the City of Okeechobee, Florida.
Also, our examination, made in accordance with the
standards mentioned in the first paragraph, would not
necessarily disclose material weaknesses in the internal
control systems, for which our study and evaluation was
limited to a preliminary review of the systems, as
discussed in the fifth paragraph of this report.
However, our study and evaluation and our examination
disclosed no condition that we believe to be a material
weakness in relation to the Federal financial assistance
programs of the City of Okeechobee, Florida. Nonmaterial
weaknesses and matters did come to our attention that we
are communicating to the City of Okeechobee, in a letter to
management.
This report is intended solely for the use of management,
u.s. Environmental Protection Agency, U.S. Department of
Argiculture, u.s. Department of Health and Human Services,
and u.s. Department of Treasury and should not be used for
any other purpose. This restriction is not intended to
limit the distribution of this report, which, upon
acceptance by the City of Okeechobee, Florida, is a matter
of public record.
Di~l!i~^Mc~~lJ!:--
Certified Public Accountants
February 2, 1987
- 43 -
Jm
DiBartolomeo, McBee & Sloan
Gerald A. DiBartolomeo Jr., C.P.A.
Jay L. McBee, C.P.A.
Rita B. Sloan. C.P.A.
Kim T. Bolin, C.P.A.
Certified Public Accountants
, .
To the City Council
City of Okeechobee
Okeechobee, Florida
We have examined the general purpose financial statements
of the City of Okeechobee, Florida for the year ended
September 30, 1986, and have issued our report thereon
dated February 2, 1987. Our examination was made in
accordance with generally accepted auditing standards: the
standards for financial and compliance audits contained in
the Standards for Audit of Governmental Organizations,
Programs, Activities, and Functions, issued by the U.S.
General Accounting Office; the Single Audit Act of 1984:
and the provisions of OMB Circular A-128, Audits of State
and Local Governments, and accordingly, included such tests
of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
The management of the City of Okeechobee, Florida, is
responsible for the City's compliance with laws and
regulations. In connection with the examination referred
to above, we selected and tested transactions and records
from the nonmajor Federal financial assistance program to
determine the City's compliance with laws and regulations
noncompliance with which we believe could have a material
effect on the allowability of program expenditures.
The results of our tests indicate that for the transactions
and records tested, the City of Okeechobee, Florida
complied with the laws and regulations referred to above.
Our testing was more limited than would be necessary to
express an opinion on whether the City of Okeechobee,
Florida, administered those programs in compliance in all
material respects with laws and regulations noncompliance
with which we believe could have a material effect on the
allowability of program expenditures: however, with respect
- 44 -
900 Professional Centre
900 Virginia Avenue, Suite 12,
P.O. Box 2546, Ft. Pierce, FL 33454
,...... "... , ..IF'" nn.,,,,
Medallion Building
1981 S.E. Port St. Lucie Boulevard
Port St. Lucie. Florida 33452
no,;) 11 ';-0007
To the City Council
City of Okeechobee
Page 2
to the transactions that were not tested by us, nothing
came to our attention to indicate that the City of
Okeechobee, Florida-,. haQ\ violated laws and regulations.
J)kJ4.~ ~~A"
D artolomeo, McBe & Sloan
Certified Public Accountants
February 2, 1987
-- 45 -
Jm
DiBartolomeo, McBee & Sloan
Gerald A. DiBartolomeo Jr., C.P.A.
Jay L. McBee. C.P.A.
Rita B. Sloan, C.P.A.
Kim T. Bolin, C.P.A.
Certified Public Accountants
't-,
To the City Council
City of Okeechobee
Okeechobee, Florida
We have examined the general purpose financial statements
of the City of Okeechobee, Florida, for the year ended
September 30, 1986, and have issued our report thereon
dated February 2, 1987. Our examination of such general
purpose financial statements was made in accordance with
generally accepted auditing standards and the standards for
financial and compliance audits contained in the Standards
for Audit of Governmental Organizations, Programs,
Activities, and Functions issued by the U.S. General
Accounting Office, and accordingly, included such tests of
the accounting records and such other auditing procedures
as we considered necessary in the circumstances.
Our examination was made for the purpose of forming an
opinion on the general purpose financial statements taken
as a whole. The accompanying schedule of Federal financial
assistance is presented for purposes of additional analysis
and is not a required part of the general purpose financial
statements. The information in that schedule has been
subjected to the auditing procedures applied in the
examination of the general purpose financial statements
and, in our opinion, is fairly stated in all material
respects in relation to the general purpose financial
statements taken as a whole.
A.~ frv4/~
DiBartolomeo, McBee & Sloan
Certified Public Accountants
February 2, 1987
- 46 -
900 Professional Centre
900 Virginia Avenue, Suite 12,
PO Rox 2546. Ft. Pierce, FL 33454
Medallion Building
1981 S.E. Port St. Lucie Boulevard
Port St. Lucie. Florida 33452
1"'In.~\ ......,~ A^^"",
Federal Grantor/Program Title
u.s. DEPARTMENT OF ARGRICULTURE
Farmers Home Administration
U.S~ E~NIRO~~ENTAL PROTECTION AGENCY
Water Management Division
u.s. DEPARTI~NT OF TREASURY
F'ederal Revenue Sharing
u.s. DEPARTME~IT OF HEALTH AND
HU:tvf.AN SERVICES
Community Services Block Grant
CITY OF OKEECHOBEE, FLORIDA
SCHEDULE OF FEDERAL FINANCIAL ASSIS'rANCE
YEAR ENDED SEPTEMBER 30, 1986
Cash Cash
October September
1, 1985 30, 1986
Federal Award Beginning Disburse- Ending
CFDA No. Amount Balance ~f:ceipts ments Balance
10.418 S l~OOO,OOO $ -0- $ 521,247 $ 521,247,,,,* $ -0-
66.418 1,339,700 -0- 402,776 402,776* -0-
21.300 70,058 1 84, 847 75,116 12,732
13..665
5,625
-0-
6 , 096
6.f 096
-0-
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DiBartolomeo, McBee & Sloan
Gerald A. DiBartolomeo Jr" C.P.A.
Jay L. McBee, C.P.A.
Rita B. Sloan, C.P.A.
Kim T. Bolin, C.P.A.
Certified Public Accountants
"
Honorable Mayor and City Council
City of Okeechobee, Florida
We have examined the combined financial statements of the City
of Okeechobee, Florida as of September 30, 1986 and for the
year then ended, and have issued our report thereon dated
February 2, 1987. Our examination was made in accordance with
generally accepted auditing standards and, accordingly,
included such tests of the accounting records and such other
auditing procedures as we considered necessary in the
circumstances.
In connection with our examination, we also (1) performed tests
of compliance with the Revenue Sharing Act and regulations as
detailed in the .Commentary on the Audit Requirements of the
Local Government Fiscal Assistance Amendments of 1983,. issued
by the Office of Revenue Sharing, u.S. Department of the
Treasury, and (2) compared the data on the appropriate Bureau
of Census Form with the audited records of the City of
Okeechobee, Florida.
In our opinion, for the items tested, the City of Okeechobee,
Florida, complied with the aforementioned provisions of the
Revenue Sharing Act and regulations. Further, based on our
examination and the procedures referred to above, nothing came
to our attention to indicate that the City of Okeechobee,
Florida, had not complied with the aforementioned provisions of
the Revenue Sharing Act and regulations.
/J;~ Yh~,(~
DiBartolomeo, McBee & Sloan
Certified Public Accountants
February 2, 1987
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900 Professional Centre
900 Vi~~ini_a ~veE.ue, Sult~ ~~'. ~.
Medallion Building
1981 S.E. Port St.Lucie Boulevard
n~_. co. ,..";,, CI~~;An 11,1<:,
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DiBartolomeo, McBee & Sloan
Gerald A. DiBartolomeo Jr., C.P.A.
Jay L. McBee, C.P.A.
Rita B. Sloan, C.P.A.
Kim T. Boiin, C.P.A.
Certified Public Accountants
l.,-,
The Honorable Mayor and
Members of City Council
City of Okeechobee, Florida
We are presenting, for your consideration, our comments and
recommendations regarding the internal accounting controls of the
City. These comments and recommendations came to our attention
during the course of our examination of the combined financial
statements of the City of Okeechobee, Florida (the "City") for
the year ended September 30, 1986 which was reported upon on
February 2, 1987.
As a result of our examination, we became aware of a material
weakness in the internal accounting control for the City's
general fixed asset group of accounts and property, plant, and
equipment of the City's water and sewer fund, which is discussed
in Exhibit I. This information should be considered in light of
Exhibit III which describes the purpose of our study and
evaluation of internal accounting controls as part of our
examination, and such information is intended solely for the use
of your management in assessing the control environment.
The comments and recommendations presented in Exhibit II are
intended to improve the system of internal accounting control and
are divided into the following major objectives:
Protecting Assets
Improving Operational Efficiency
,
We would like to take this opportunity to acknowledge the
courtesy and assistance extended to us by the personnel of the
City during the course of our examination.
~;~, k~ J..Y'~
DiBartolomeo, McBee & Sloan
Certified Public Accountants
February 2, 1987
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900 Professional Centre
900 Virginia Avenue, Suite 12,
P.O. Box 2546, Ft. Pierce, FL 33454
_Medallion Building
1981 S.E. Port St. Lucie Boulevard
Port St. Lucie, Florida 33452
----o;_~-~K. IY-. -- ~.
EXHIBIT I
ESTABLISHMENT OF FIXED ASSETS CONTROLS
The City has not maintained adequate detailed records in support of
the recorded cost of the water and sewer plant in service or the
amounts included in the ~ene.al fixed assets group of accounts and we
were unable to obtain sufficient supporting documentation to form an
opinion with respect to (a) the stated cost of property items
acquired in years prior to October 1, 1981 (b) the accumulated
depreciation applicable to the water and sewer utility plant in
service at September 30, 1986 or the provision for the year then
ended.
Sound financial administration in safeguarding the City's investment
in fixed assets is of utmost importance in the exercise of
stewardship responsibilities. The responsibilities can be
effectively discharged only through adequate fixed assets accounting.
By maintaining fixed assets records, the City will realize several
benefits:
Fixed assets can be inventoried periodically to ensure
that they are properly controlled.
Responsibility for custody and effective use of fixed
assets can be clearly established.
Information regarding sources of supply, prices, and
useful lives will be readily available. If information
regarding maintenance costs is also included in the
subsidiary ledgers, ratios of cumulative maintenance
costs to original costs can be developed.
Records will be readily available to substantiate the
amount of grants used to finance expenditures for fixed
assets. Furthermore, the determination of costs for
building or equipment use is facilitated. The latter is
important to obtain reimbursement for the use of
buildings and equipment in Federal and State aid programs.
Information is
insurance needs
from insurance.
readily available
and to substantiate
both
losses
to determine
recoverable
Information is available for the preparation of a
Statement of General Fixed Assets.
Establishing fixed assets records when none existed before can be a
difficult and time consuming task. One approach is to:
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DiBartolomeo, McBee & Sloan certified public accountants
EXHIBIT I
ESTABLISHMENT OF FIXED ASSETS CONTROLS (CONTINUED)
1. Define clearly what constitutes the fixed assets
categories, (e.g., land, buildings, improvements other
than buildings, equipment), a fixed asset (i.e., minimum
dollar value and useful life), and the location RcontrolR
areas. ~
2. Plan and perform a complete inventory of all f1xed assets.
In creating the 1nventory records, obta1n as much of the
1nformation to be included in the individual assets
records as is possible, e.g., asset description, location,
vendor or manufacturer and acquisition date. Fixed assets
identification tags should be affixed at the time the
physical inventory is taken.
3. Assign values to each fixed asset according to accepted
principles. More specifically, the AICPA Industry Audit
Guide, RAudits of State and Local Governmental Units,"
sets forth the basis for valuing fixed assets of a
governmental unit: "Such assets should be recorded at
historical cost, or estimated historical cost, if the
original cost 1S not available, or, in the case of gifts
or contributions, at the fair market value at the time
received. R
Several procedures can be used to determine the valuation.
Reference to the historical recordsg such as
vendors' invoices, contracts, purchase orders,
capital expend1ture authorizations, cancelled
checks, gift acknowledgements, or other documents
on hand.
Correspondence with vendors, donors, etc.
Use of an asset valuat10n reasonably reflective of
J1istorical value, prov1ded it is reliable, if
historical or fair market value is not available.
Historical cost as reasonab~y estimated by
employees for small items of relatively low value,
e.g., tOOls, office furniture, and equipment.
Reliance on independent outside appraisals for
assets which cannot be valued by one of the above
methods or some other reasonable method. It is
important to emphasize, however, that the
appraisal should be based upon estimated
historical cost, not on replacement cost or some
other basis.
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DiBartolomeo, McBee & Sloan certified public accountants
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EXHIBIT I
ESTABLISHMENT OF FIXED ASSETS CONTROLS (CONTINUED)
Evaluation of fixed assets in the above manner
will enable the City to establish reasonably
accurate initial fixed asset values.
Once initial records
concurrently implement
1t to maintain control
should include:
are established, the City will
the kinds of controls and procedures
over the fixed assets. These
want to
enabling
procedures
Control over the proper input 1nto the records for all
fixed asset additions, sales, abandonments, and transfers.
Periodic reconciliations of detail ledgers to the general
ledger.
Periodic inventory of fixed assets by location.
Verification that any asset traded in for a new
acquisition is properly removed from the records.
The City is maintaining current additions in a manner as noted above.
The City has complied with the provisions of Chapter 10.400, rules of
the Auditor General concerning the physical count of tangible
personal property, with the limitations as noted.
CUSTOMER DEPOSITS
A detail listing of customer deposits in the water and sewer fund
should be generated from the computer at least quarterly. This
listing should be used to reconcile to the amount shown on the
general ledger for that account balance. This point was also noted
in the prior year's letter.
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DiBartolomeo, McBee & Sloan certified public accountants
EXHIBIT II
PROTECTING ASSETS
DATA PROCESSING DISASTER PLANNING
During the course of the year the City has entered into an agreement
with Okeechobee County Cor b~ckup data processing services. The City
has also acquired off-site storage for back up data from the data
processing system. We recommend that the agreement with the County
be reviewed annually by both parties and adjusted as necessary.
IMPROVING OPERATIONAL EFFICIENCY
PURCHASE ORDERS
The present use of purchase orders is handled in a manner which
circumvents the actual purpose of such: purchase orders are prepared
after the fact: usually from invoices or other supporting
documentation. The purchase orders should be used in a proper and
timely manner. This pOint was also noted in the prior year's letter.
CASH DISBURSEMENTS
The City currently uses manual checks to pay some vendors' invoices
rather than process them through its accounts payable system. When
manual checks are employed to pay invoices, care should be taken to
ensure that any outstanding purchase order is removed from
encumbrances. To alleviate problems which may occur by the use of
manual checks and the failure to properly relieve encumbrances, the
City should consider increasing the frequency of payment of accounts
payable: whereby all checks could be computer generated. This pOint
was also noted in the prior year's letter.
ADJUSTMENTS TO ACCOUNTS
When making adjustments to accounts, an original handwritten copy of
that adjustment with a detailed explanation for the purpose of such,
should be maintained as a basic source of documentation in the
accounting system.
CURRENT INFORMATION
Bank accounts should be reconciled in a timely
financial reports generated before the end
Noncurrent financial information cannot be used
decisions or provide for future planning.
manner
of the
to make
and monthly
next month.
management
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DiBartolomeo, McBee & Sloan certified public accountants
EXHIBIT II
PROTECTING ASSETS (CONTINUED)
DATA PROCESSING SYSTEM INTEGRATION
The City's utility and ~~yroll software applications operate
independently from the City's general ledger software application
necessitating manual accumulation of utility billings, adjustments
and collections, and payroll information for posting to the general
ledger accounts. The City should consider having the necessary
software modifications to fully integrate its utility and payroll
programs with the general ledger. Integration of the various
applications should reduce time in accumulating financial information
and decrease the likelihood of error in recording information. This
point was also noted in the prior year's letter.
DATA PROCESSING SYSTEM
The total of detail accounts did not agree to the total shown in the
control account for various groups of accounts, such as revenue,
expenditures, and encumbrances.
When closing the current year's excess of revenues or expenditures to
fund balance, there were other items included that increased or
decreased the amount to be closed.
The encumbrances and reserve for encumbrances accounts did not agree
to the detail nor were these accounts always updated in a similar
fashion. Concerning the above comments we suggest the City work in
conjunction with the company responsible for the 'software and devise
a useful manual which shows how the programs affect accounts and
process transactions to provide a more complete understanding of the
computerized portion of the accounting system.
VACATION ACCRUAL
During the fiscal year various employees' vaction accrual exceeded
the maximum allowed for carryover. City pOlicy should encourage all
employees to use their vaction time annually. This practice allows
for another employee to perform that job duty and is also encouraged
for basic internal operating control for the City. This point was
also noted in the prior year's letter.
BUDGET PREPARATION
In the preparation of its annual budgets for the various operating
funds, the City currently follows the practice of relying on cash
surpluses to fund projected shortfalls between budgeted revenues and
expenditures.
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DiBartolomeo, McBee & Sloan certified public accountants
EXHIBIT II
PROTECTING ASSETS (CONTINUED)
BUDGET PREPARATION
As an example, for the years,,1981 through 1986 available cash at the
beginning of the City's budget year and actual results for the
general fund are summarized below:
1981 :
Beginning cash balances
Excess of expenditures over
revenues at year end
$ 569,396
29,380
506,213
167,866
391,177
62,485
300,616
15,497
335,925
84,883
285,790
102,915
1982 :
Beginning cash balances
Excess of expenditures over
revenues at year end
1983 :
Beginning cash balances
Excess of expenditures over
revenues at year end
1984 :
Beginning cash balance
Excess of revenues over
expenditures at year end
1985:
Beginning cash balance
Excess of revenues over
expenditures at year end
1986:
Beginning cash balance
Excess of expenditures over
revenues at year end
With the continued growth of the community and increased demands for
city services coupled with construction of a new wastewater facility,
the City should explore all possibilities for additional revenue
sources and continue in its cost conscious efforts to maximize
services at the least cost to the City and its taxpayers.
DEPARTMEN~ OF BANKING AND FINANCE
According
letter to
financial
to the rules of the Auditor General, Chapter
management must include a statement of
report filed with the Department of Banking
10.550 the
whether the
and Finance
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DiBartolomeo, McBee & Sloan certified public accountants
EXHIBIT II
PROTECTING ASSETS (CONTINUED)
DEPARTMENT OF BANKING AND FINANCE (CONTINUED)
pursuant to Section 218.32, Florida Statutes, is in substantial
agreement with the annu~x auqjt report for the same period.
The City has not prepared or filed the financial reports with the
Department of Banking and Finance as of this date because it is the
City's intention to prepare the financial report from the audited
financial statements.
SUMMARY
The implementation of changes recommended in this letter can be
facilitated if management and Council:
Consider and establish priorities for implementing the
changes.
Develop an overall plan and method of implementation that
reflects the priorities.
Assign the responsibility for carrying out each change to a
specif ic individual.
Establish time-frames for implementation of each change.
Schedule progress reports from the responsible City officials
and conduct progress meetings to further discuss progress and
to resolve problems that arise.
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DiBartolomeo; McBee & Sloan certified public accountants
,....
EXHIBIT III
INTERNAL CONTROL
As part of an examination of financial statements, we perform a study
and evaluation of an entity's system of internal accounting control
to the extent we consider necessary to evaluate the system as
required by generally accepted auditing standards. The purpose of
our study and evaluation is to determine the nature, timing and
extent of the auditing proCedu~s necessary for expressing an opinion
on an entity's financial statements. Our study and evaluation is
more limited than would be necessary to express an opinion on the
system of internal accounting control taken as a whole.
The City's management is responsible for establishing and maintaining
a system of internal accounting control. In fulfilling this
responsibility, estimates and judgments made by management are
required to assess the expected benefits and related costs of control
procedures. The objectives of a system are to provide management
with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, and
that transaction are executed in accordance with management's
authorization and recorded properly to permit the preparation of
financial statements in accordance with generally accepted accounting
principles.
I
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Because of inherent limitations in any system of internal accounting
control, errors or irrgularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the system to future
periods, is subject to the risk that procedures may become inadequate
because of changes in conditions or that the degree of compliance
with the procedures may deteriorate.
A study and evaluation made for the limited purpose describe above
would not necessarily disclose all material weaknesses in the system.
Accordingly, an expression of an opinion on the system of internal
accounting control taken as a whole cannot be made.
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DiBartolomeo, McBee &: Sloan certified public accountants