Okaloosa County BOCC — August 4, 2015 — 2015 Airports Audit Engagement Letter

JD PEACOCK 11 CLERK & COMPTROLLER, OKALOOSA COUNTY, FLORIDA August 4, 2015 Honorable Nathan Boyles, Chairman Okaloosa County Board of County Commissioners 302 N. Wilson St. - Suite 302 Crestview, FL 32536 Mr. Boyles: This letter serves as notice of our intent to perform an audit of airport financial operations in Okaloosa County. I understand that such an audit was discussed by the Board at its meeting held on July 21st. Additionally the Board officially requested that the Clerk’s Office present an audit plan for the airport. For your information these operations were identified as a priority on our county-wide risk assessment conducted this spring and has been included in the annual work plan approved by the Clerk of Courts. Our audit will be conducted in accordance with Standards for the Professional Practice of Internal Auditing and will follow our audit protocol provided to you previously. The purpose of our audit will be to review revenues and expenditures of the County’s airports. Our work will include: e Review grants, leases, subleases and contract terms and conditions (including expense reimbursement provisions); comparing those provisions to revenues generated therefrom; assess the vendor’s compliance and management’s administration and monitoring of these contracts. e Reconcile lease information recorded in the airport’s billing system (PROPworks) with terms and conditions contained in those leases and compare same to airport property (space); e Review controls over billings & collections, the adequacy of segregation of duties as well as system access controls (roles and responsibilities); e Review policies and procedures addressing accounting, billing, collections and monitoring of airport financial operations; e Compare lease revenues collected by the airport to contract provisions with concessionaires based on commissions (revenues derived from % of sales); e Review private parking leases, the Republic Parking contract, rental car contracts including expense reimbursement provisions; e Review controls and reconciliations of fuel deliveries and invoicing, dispensing, billings and physical security over inventories; e Review airport expenditures, controls over same including a comparison of budget to actual. The scope of our audit will include grants, leases and contracts currently in effect and will cover the period October 1, 2014 through the end of this fiscal year. We solicit your support and cooperation in the work we do and pledge to work with the County Administrator to identify ways to improve controls over the County’s airport financial operations if needed. Respectfully, / ¢ Sam/Scfifi/afifi%ec%r General CIG, CPA, CIA, CFE CC: Honorable J D Peacock, Clerk of Courts Honorable Board of County Commissioners John Hofstad, County Administrator Sunil Harman, Director of Airport COURTHOUSE e 101 E. JAMES LEE BLVD. @ CRESTVIEW, FLORIDA 32536 e (850) 689-5000 COURTHOUSE ANNEX EXTENSION o 1940 LEWIS TURNER BLVD. ® FORT WALTON BEACH, FLORIDA 32547 « (850) 651-7200 BRACKIN BUILDING @ 302 NORTH WILSON STREET e CRESTVIEW, FLORIDA 32536 e (850) 689-5000