Okaloosa County BOCC — May 20, 2014 — CAFR_13 — reading text

O KALOOSA C OUNTY, FLORIDA C O M P R E H E N S IV E A N N U A L F I N A N C I A L R E P O R T F OR THE YEAR E NDED SEPTEMBER 30, 201 3 PREPARED BY CLERK OF CIRCUIT COURT DON W. HOWARD, CLERK GARY J. STANFORD, FINANCE OFFICER Comprehensive Annual Financial Report Okaloosa County, Florida For the year ended September 30, 2013 Prepared by Clerk of Circuit Court Don W. Howard, Clerk Gary J. Stanford Finance Officer INTRODUCTORY SECTION  OKALOOSA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2013 TABLE OF CONTENTS Page Exhibit INTRODUCTORY SECTION Table of Contents i Letter of Transmittal iv GFOA Certificate of Achievement xiv Organization Charts xv County Officials xvii FINANCIAL SECTION Independent Auditors' Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 16 I Statement of Activities 19 II-A & B Fund Financial Statements Balance Sheet - Governmental Funds 21 III-A Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 22 III-B Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 23 IV-A Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 IV-B Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund 26 V County Transportation Trust Special Revenue Fund 27 VI Tourist Developmnet Special Revenue Fund 28 VII Statement of Net Position - Proprietary Funds 29 VIII Statement of Revenues, Expenses, an Changes in Net Position - Proprietary Funds 32 IX Statement of Cash Flows - Proprietary Funds 34 X Statement of Fiduciary Net Position - Fiduciary Funds 37 XI Notes to Financial Statements 38 Required Supplementary Information Schedule of Funding Progress - Post Employment Benefits Plan 89 i  OKALOOSA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2013 TABLE OF CONTENTS Statement/ Page Schedule Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 90 A-1 Combining Statement of Revenues, Expenditures, and Changes in 93 A-2 Schedules of Revenues, Expenditures, and Changes in Fund Balance - Capital Outlay Construction Trust Capital Projects Fund 95 A-3 Natural Disaster Special Revenue Fund 96 A-4 Local Housing Assistance Trust Fund 97 A-5 E-911 Operations Special Revenue Fund 98 A-6 Radio Communications Special Revenue Fund 99 A-7 Law Enforcement Trust Special Revenue Fund 100 A-8 Police Academy Special Revenue Fund 101 A-9 County Public Health Special Revenue Fund 102 A-10 Municipal Services Benefit Units Special Revenue Funds 103 A-11 Unincorporated County Parks Special Revenue Fund 104 A-12 Prisoner Benefit Special Revenue Fund 105 A-13 Additional Court Costs Special Revenue Fund 106 A-14 Drug Abuse Trust Special Revenue Fund 107 A-15 Domestic Violence Trust Special Revenue Fund 108 A-16 Traffic Education Special Revenue Fund 109 A-17 Courts Special Revenue Fund 110 A-18 Public Records Modernization Trust Special Revenue Fund 111 A-19 Public Records Courts Special Revenue Fund 112 A-20 Public Records 10% Fine Special Revenue Fund 113 A-21 Federal Law Enforcement Trust Special Revenue Fund 114 A-22 Teen Driver Challenge Special Revenue Fund 115 A-23 Second Dollar Program Special Revenue Fund 116 A-24 Okaloosa Debt Service Fund 117 A-25 Road and Bridge Construction Capital Projects Fund 118 A-26 Combining Statement of Net Position - Nonmajor Enterprise Funds 119 B-1 Combining Statement of Revenues, Expenses, and Changes in Net Position - Nonmajor Enterprise Funds 121 B-2 Combing Statement of Cash Flows - Nonmajor Enterprise Funds 122 B-3 Combining Statement of Net Position - Internal Service Funds 124 C-1 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 126 C-2 Combining Statement of Cash Flows - Internal Service Funds 127 C-3 Combining Statement of Fiduciary Net Position - Agency Funds 129 D-1 Combining Statement of Changes in Net Position - Agency Funds 131 D-2 STATISTICAL SECTION (UNAUDITED) Page Schedule Net Assets by Category - Last Nine Fiscal Years 135 1 Changes in Net Assets - Last Nine Fiscal Years 137 2 Fund Balances - Governmental Funds - Last Ten Fiscal Years 139 3 ii  OKALOOSA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2013 TABLE OF CONTENTS Page Schedule STATISTICAL SECTION (UNAUDITED) Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years 141 4 Governmental Tax Revenues by Source - Last Ten Fiscal Years 143 5 Taxable Assessed Value and Estimated Actual Value of Property - 145 6 Property Tax Millage Rates for Direct and Overlapping Governments - 147 7 Principal Property Tax Payers - Last Fiscal Year Compared to the Fiscal Year Nine Years Earlier 149 8 Property Tax Levies and Collections - Last Ten Fiscal Years 151 9 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 153 10 Pledged Revenue Bond Coverage 155 11 Computation of Direct and Underlying Debt 157 12 Demographic and Economic Statistics - Last Ten Years 158 13 Principal Employers - Current Year and Nine Years Ago 160 14 Full-time Equivalent Government Employees by Function - 162 15 Operating Indicators by Function/Program - Last Ten Fiscal Years 164 16 Capital Indicators by Function/Program - Last Ten Fiscal Years 165 17 SINGLE AUDIT SECTION Schedule of Expenditures of Federal Awards and State Financial Assistance 166 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 171 Schedule of Expenditures of Passenger Facility Charges 172 Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill 173 Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 174 Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General and Compliance with Requirements Applicable to the Passenger Facility Charge Program and Internal Control Over Compliance 176 Schedule of Findings and Questioned Costs 178 Management Letter 182 iii  DON W. HOWARD CLERK OF THE CIRCUIT COURT, OKALOOSA COUNTY, FLORIDA April 23, 2014 To the Citizens of Okaloosa County: The Comprehensive Annual Financial Report of Okaloosa County, Florida for the fiscal year ended September 30, 2013, is respectfully submitted. This report was prepared by the Finance Department under the supervision of the Clerk of the Circuit Court. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Finance Department. This report contains four major sections: the Introductory, the Financial, the Statistical and the Compliance Sections. The County prepares the basic financial statements to meet the requirements of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments (GASB 34) reporting model requiring the County to report in five parts, including, Management?s Discussion and Analysis, Government-wide Financial Statements, major Fund Financial Statements, Budgetary Comparisons for certain funds and the Notes to the