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

xv  OKALOOSA COUNTY COMMISSIONERS OKALOOSA COUNTY, FLORIDA ORGANIZATION CHART Citizens of Okaloosa County PROPERTY TAX BOARD OF COUNTY CLERK OF SUPERVISOR OF SHERIFF APPRAISER COLLECTOR COMMISSIONERS COURTS ELECTIONS LEGAL SERVICES COUNTY ADMINISTRATOR LIBRARY TOURIST COOPERATIVE DEVELOPMENT HUMAN GROWTH PUBLIC WATER & PUBLIC AIRPORTS RESOURCES MANAGEMENT WORKS SEWER SAFETY RISK ROAD EMERGENCY 911 ENGINEERING MANAGEMENT DEPARTMENT MANAGEMENT COMMUNICATIONS ENVIRONMENTAL TRAFFIC EMERGENCY PURCHASING BEACH SAFETY SERVICES OPERATIONS MEDICAL SERVICES VETERANS' COURT LAW PARKS STORMWATER SERVICES SERVICES LIBRARY FACILITY FLEET CORRECTIONS MAINTENANCE OPERATIONS COUNTY INFORMATION EXTENSION SYSTEMS xvi  OKALOOSA COUNTY, FLORIDA COUNTY OFFICIALS AS OF SEPTEMBER 30, 2013 COUNTY COMMISSIONERS Wayne Harris District I Dave Parisot District II Nathaniel Boyles District III Don Amunds District IV Kelly Windes District V OTHER ELECTED OFFICIALS Don W. Howard Clerk of Court Larry R Ashley Sheriff Ben Anderson Tax Collector Timothy "Pete" Smith Property Appraiser Paul Lux Supervisor of Elections OTHER OFFICIALS John Dowd County Attorney Earnest Padgett County Administrator xvii (THIS PAGE INTENTIONALLY LEFT BLANK) FINANCIAL SECTION  Okaloosa County, Florida Management Discussion and Analysis This discussion and analysis of Okaloosa County’s (the County) financial statements is designed to introduce the basic financial statements and provide an analytical overview of the County’s financial activities for the fiscal year ended September 30, 2013. This analysis, in conjunction with additional information provided in our letter of transmittal, should assist readers in identifying significant financial issues and changes in the County’s financial position. In this Management Discussion and Analysis (MD&A), all amounts, unless otherwise indicated, are expressed in thousands of dollars. Financial Highlights At the close of fiscal year 2013 the County’s assets exceeded its liabilities, resulting in net position of $434,618. Governmental and business-type assets exceeded its liabilities by $167,804 and $266,814, respectively. The County’s total net position increased $755, or 0.2 percent, in comparison to the prior year. The County had $25,651 of unrestricted net position at the close of this year compared to $24,147 last year that can be used to meet the County’s obligations. Total revenues decreased ($14,145), or (7.2) percent, from $195,625 to $181,480. Total expenses increased $3,143, or 1.8 percent, from $177,582 to $180,725. The County’s governmental activities reported total net position of $167,804, which is a decrease of ($7,677), or (4.4) percent, in comparison to prior year. A deficit unrestricted net asset position of less than 1 percent exists in the governmental activities. The County’s business-type activities reported total net position of $266,814, which is an increase of $8,432, or 3.3 percent, in comparison to prior year. Approximately 9.7 percent of the total, or $25,916, is unrestricted, and thus available for spending at the County’s discretion. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Okaloosa County’s basic financial statements. The County basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements, as illustrated on the following page. This report also contains other supplementary information in addition to the basic financial statements themselves. 3 Okaloosa County, Florida Management’s Discussion and Analysis Management?s discussion and analysis Government wide financial statements Fund financial statements ________________________________________________________ Notes to the financial statements Supplementary information Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of Okaloosa County’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods. Both of the government-wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public safety, physical environment, transportation, economic environment, human services, culture/recreation and court-related activity. The business-type activities of the County include water/sewer services, airport services, solid waste collection/disposal, building inspection services, emergency medical service and conference center activities. The government-wide financial statements can be found on Exhibit I, II-A and II-B of this report. Fund Financial Statements The accounts of the County are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of 4 Okaloosa County, Florida Management’s Discussion and Analysis self-balancing accounts that comprise its assets, liabilities, net position, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The County’s funds are presented in separate fund financial statements. These funds are presented on governmental fund financial statements, proprietary fund financial statements and a fiduciary fund financial statement. The County’s major funds are presented in separate columns on the fund financial statements. The definition of a major fund is one that meets certain criteria set-forth in GASB 34. The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the fund financial statements. Governmental Fund Financial Statements Governmental fund financial statements are prepared on the modified accrual basis using current financial resources measurement focus. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Although the activity of the internal service funds is reported with the governmental activities on the government-wide financial statements they are not combined on the government fund financial statements. Four of the County’s governmental funds, the General Fund, County Transportation Trust Fund, Tourist Development Trust Fund and Capital Outlay Construction Trust Fund, are classified as major funds. The County Transportation Trust and Capital Outlay Construction funds have been presented as major funds at management’s discretion. All other governmental funds are combined into a single column on the governmental fund financial statements. Individual fund data for the non-major funds is found in combining statements presented as supplemental financial data. The County adopts an annual budget for all governmental funds. A budgetary comparison has been presented for all the governmental funds, which