Okaloosa County BOCC — May 20, 2014 — reading text

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 Packet Pg. 28  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 Financial Statements. The report consists of management?s representations concerning the finances of the County. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the County has established a comprehensive internal control framework that is designed both to protect the government?s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the County?s financial statements in conformity with GAAP. Because the costs of internal controls should not outweigh their benefits, the County?s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The County?s financial statements have been audited by the certified public accountants of the firm of Warren Averett, LLC. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County for the fiscal year ended September 30, 2013, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the County?s financial statements for the fiscal year ended September 30, 2013, are fairly presented in conformity with COURTHOUSE 101 E. JAMES LEE BLVD. CRESTVIEW, FLORIDA 32536-1359 (850) 689-5000 REPLY TO: BRACKIN BUILDING 302 NORTH WILSON ST., SUITE 203 CRESTVIEW, FLORIDA 32536 (850) 689-5000 COURTHOUSE ANNEX 1250 N. EGLIN PKWY SHALIMAR, FLORIDA 32579 (850) 651-7200 ANNEX EXTENSION 1940 LEWIS TURNER BLVD FT. WALTON BEACH, FLORIDA 32547 (850) 651-7200 Visit us on the web at http://www.clerkofcourts.cc Packet Pg. 29 GAAP. The report of independent accountants is presented as the first component of the financial section of this report. Okaloosa County is a non-charter county established under the Constitution and the Laws of the State of Florida. This Comprehensive Annual Financial Report (CAFR) includes the funds of the primary government (the Board of County Commissioners, the Clerk of the Circuit Court, the Property Appraiser, the Sheriff, the Supervisor of Elections and the Tax Collector). ECONOMIC CONDITION AND OUTLOOK Okaloosa County is one of Florida's youngest counties, created in 1915 by an act of the state legislature. Okaloosa County is located in the Northwest Florida Panhandle and the City of Crestview, near its geographical center, is the County seat. The April 2013 population was 188,349, concentrated most heavily near its southern boundary on the Gulf of Mexico. Occupying a large portion of Okaloosa County is one of the world's largest military reservations. Established in 1935, Eglin Air Force Base covers over 724 square miles in Okaloosa and two neighboring counties and contains the 919th Special Operations Wing, Duke Field. Eglin Air Force Base, the Air Armament Center, is responsible for development, acquisition, testing, deployment and sustainment of all United States Air Force air-delivered weapons. Based upon Eglin's wide range of activities, Eglin will continue its major role in the defense of the United States and in the economy of Okaloosa County. Hurlburt Field, the headquarters of the Air Force Special Operations Command, is also located in Okaloosa County. Hurlburt Field occupies about 6,000 acres in the County. The military presence is the major income producing source for the County. The tourism industry is the leading private income producing source for the County. The effect of the industry on the local economy is well above $1 billion income produced annually with the employment of 20,000+ in tourism related businesses. The Tourist Development Council Convention Visitor?s Bureau (TDC / CVB) registered hundreds of thousands of inquiries throughout the year. Tourists may visit Okaloosa County?s Visitor Welcome Center for information on all local activities, area information, sightseeing and all other things to do during their visit. More than 3.0 million visitors come to the Emerald Coast annually. v Packet Pg. 30  Residents and tourists in Okaloosa County have a full range of natural attractions and recreational opportunities. Mile after mile of beautiful snow-white beaches and emerald-green waters attract boating enthusiasts, swimmers, skiers, surfers, skin-divers, and scuba divers. Some of the largest concentrations of fighting game fish congregate off Destin?s coast. Party and charter boats make daily runs to favorite fishing reefs. Piers and bridges on the Gulf of Mexico, inland bays and fresh water in lakes and streams provide excellent fishing opportunities. Golfing, at numerous magnificent courses around the area, sailing, and camping are other year-round activities. The hunter may try for deer, turkey, quail, dove, duck, and wild hog in the game management areas of the northern part of the county. The state Division of Economic Development placed the total labor force in Okaloosa County at 121,193 in 2013 and the 2013 unemployment rate at 5.2 percent. This compares favorably to the state's annual average rate of 7.2 percent and the national average of 7.4 percent. Okaloosa County's cost of living is consistently below the national average and the county has, along with its sister counties in Florida, no