Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

Pool In addition to the investments subject to credit risk, listed above, the City maintains investments in the Florida State Board of Administration' s ( SBA) Local Government Surplus Funds Trust Pools, and these deposits are included in the City' s pooled cash accounts. At September 30, 2012. the City maintained $ 229,675 invested in the State Board of Administration' s Local Gov emment Surplus Funds Trust Fund Investment Pool B ( Fund B) with a fair value of $217, 954. Fund B consists of assets that have defaulted on payment, paid more slowly than expected, and /or were assessed as having significant credit and liquidity risk. Fund B has been " frozen" by the SBA since December 2007, but has distributed portions of the pool to participants since that date. Since December 2007, the City has received $ 1, 527, 480 in distributions from Fund B. including $ 49,406 received during the year ended September 30. 2012. Fund B will continue to distribute funds to all participants as the assets within the Fund are able to be liquidated. The primary goal of the Fund is to make members " whole" and not realize a loss on the investment. Fund B has not received a credit rating by any of the nationally- recognized rating agencies as of September 30, 2012. The City believes that it will not incur a loss on the realizable value of the remaining investments held in the Fund. Due to the nature of securities in Fund B, the interest rate risk information required by GASB 40 is not available. however, an estimate of weighted average life ( WAL) is available. In the calculation of WAL, the time at which an expected principal amount is to be received ( measured in years) is weighted by the principal amount received at that time divided by the sum of all expected principal payments. The principal amounts used in the WAL. calculation are not discounted to present value as they would be in a weighted average duration calculation. The WAL ( based on expected future cash flows) of Fund B at September 30, 2012, is estimated at 4. 08 years. However, because Fund B consists of restructured average life. or defaulted securities there is considerable uncertainty regarding the weighted The City also maintains $ 13. 287 invested in the SBA' s Florida PRIME, The Florida PRIME current credit rating is AAAm by Standard and Poor' s. The weighted average to maturity ( WAM) of the Florida PRIME at September 30, 2012, is 39 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM. 47 Pac ® 7_  3.3. 1.1. aa City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 4- RECEIVABLES Receivables at September 30, 2012, were as follows: c eatmeta- AcunnuesAaiviliev Acliuiiics Commurn) Olhet Redevelop- Proprietary General u entFund Total U1ililies Sanilalion Golf Funds Taal T axes 16. 561 8 16561 S 5-$-$ neeounle 468. 134 468134 592, 372 209, 720 904 66654 868650 Laseax for doubtful o 45, 429) 118271 - 2. 726) 60982) ssess men menn 113. 337 147. 840 611] 9 18975 18975 893893 $ $ TotalTotal receivablesreceivables La8La8 032032 SS 147,147, 840840 L.L. ZLIZLI 872872. . i$ 6-.6. ii 018018 L_", L_", 904904 L_L_ 6363 928928 $ $ 6643 8'8' 6643 DueDue fromfrom OtherOther Governments Governments TheThe City'City' ss receivablesreceivables fromfrom otherother governmentsgovernments forfor governmentalgovernmental activities activities andand business-business- typetype activitiesactivities asas ofof SeptemberSeptember 30,30, 2012,2012, areare $ $ 159,159, 165165 andand $ $ 305,305, 124,124, respectively.respectively. DueDue fromfrom otherother governmentsgovernments consistconsist ofof$ $ 159,159, 165165 duedue fromfrom thethe federalfederal government government andand 305,305, 124124 duedue fromfrom thethe StateState ofof Florida.Florida. AllAll receivablesreceivables fromfrom thethe federalfederal governmentgovernment areare relatedrelated toto grantgrant revenues,revenues, primarilyprimarily forfor publicpublic safetysafety andand transportation.transportation. TheThe receivablesreceivables duedue fromfrom thethe StateState ofof FloridaFlorida alsoalso representrepresent grantgrant revenues,revenues, primarilyprimarily relatedrelated toto thethe reusereuse waterwater lineline project.project. NOTENOTE 55- - CHANGESCHANGES ININ CAPITALCAPITAL ASSETSASSETS CapitalCapital assetasset activityactivity forfor thethe yearyear endedended SeptemberSeptember 30,30, 2012,2012, waswas asas followsfollows BeginningBeginning Decreases/ EndingEnding BalanceBalance Increases TransfersTransfers BalanceBalance GovernmentalGovernmental ActivitiesActivities CapitalCapital assetsassets notnot beingbeing depreciated/depreciated/ amortizedamortized Land 9.9. 961,961, 261261 SS- - 9,9, 961,961, 261261 Construction in progress 352,352, 292292 471,471, 548548 334,334, 722)722) 488,488, 118118 TotalTotal capitalcapital assetsassets notnot beingbeing depreciateddepreciated / / amortizedamortized 10. 313, 553 470,470, 548548 334,334, 722)722) 10.10. 449,449, 379379 4848 PackMPackM Pg.Pg. 7474  3. t. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 5 - CHANGES IN CAPITAL ASSETS ( CONTINUED) Beginning Decreases/ Ending Balance Increases Transfers Balance Governmental Activities ( Continued) Capital assets being depreciated/ zmmilmd 14, 389, 863 14, 172, 375 164. 942 52,546 Buildings Improvements other than buildings 10, 790,350 439, 819 345) 107, 382) 11, 229, 824 12, 432, 298 Infrastructure 12, 276, 660 263, 020 404. 058 95, 190 499, 248 Software 7, 165, 435 1, 098, 814 407, 780) 7, 856, 469 Machinery and equipment