Okaloosa County BOCC — January 20, 2015 — Okaloosa Follow-Up Letter and PT

AUDITOR GENERAL STATE OF FLORIDA G74 Claude Pepper Building 111 West Madison Street Tallahassee, Florida 32399-1450 David W. Martin, CPA 850/412-2722 AUDITOR GENERAL Fax: 850/488-6975 December 19, 2014 Honorable Kelly Windes, Chair Board of County Commissioners Okaloosa County 320 Wilson Street, Suite 302 Crestview, FL 32536 Dear Commissioner Windes: Section 11.45(2)(j), Florida Statutes, requires us to, no later than 18 months after the release of a report on the audit of a local governmental entity, perform such appropriate follow-up procedures as deemed necessary to determine the audited entity's progress in addressing the findings and recommendations contained within our previous report. This correspondence is to notify you of the preliminary results of our audit to determine the extent to which the Okaloosa County Board of County Commissioners, Clerk of the Circuit Court, and the Tourist Development Council had taken, or were in the process of taking, corrective actions to address the findings included in our Report No. 2013-085. Please review the attached document and provide us your written comments concerning the results, including any additional information that you believe would affect our determination, by January 20, 2015. Your written comments should be submitted electronically in its original format (e.g., Word or WordPerfect) and include your signature. For quality reproduction purposes, if you are not submitting your response in its original format, please convert your response to PDF and not scan to PDF. If you have questions or desire further discussion on the status of the findings, please contact Marilyn Rosetti at (850)412-2902 or at marilynrosetti@aud.state.fl.us. Sincerely, David W. Martin DWM/jk Attachments c: Board of County Commissioners J. D. Peacock, II, Clerk of Courts John Hofstad, County Administrator Sam Scallan, Internal Auditor  ****PRELIMINARY AND TENTATIVE FINDINGS**** OKALOOSA COUNTY BOARD OF COUNTY COMMISSIONERS’ OVERSIGHT OF THE TOURIST DEVELOPMENT COUNCIL AND USE OF TOURIST DEVELOPMENT TAXES AND FUNDS RECEIVED FROM BRITISH PETROLEUM OPERATIONAL AUDIT EXECUTIVE SUMMARY This report provides the results of our audit to determine the extent to which the Okaloosa County Board of County Commissioners (BCC), Clerk of the Circuit Court (CCC), and Tourist Development Council (TDC) had taken, or were in the process of taking, corrective actions to address the findings included in our report No. 2013-085. There was no occasion to correct 1 finding. Our follow-up procedures to determine the BCC’s and CCC’s progress in addressing the remaining 24 findings and recommendations contained in our report No. 2013-085 disclosed that, as of the completion of our follow-up procedures in December 2014, the BCC’s, CCC’s, and TDC’s actions corrected 13 findings, partially corrected 10 findings, and the BCC took no corrective action on 1 finding. STATUS OF REPORT NO. 2013-085 FINDINGS Organizational Oversight Finding No. 1: Budget Preparation and Monitoring Previously Reported The BCC did not establish annual budgets for expenditures from restricted resources at the level the resources were restricted, or project budgets for each advertising project and marketing campaign, to ensure that