Okaloosa County BOCC — May 20, 2014 — reading text

of quality of life. FINANCIAL INFORMATION Readers of this report are encouraged to read Management?s Discussion and Analysis (MD&A). The MD&A provides basic financial information about the County and an overview of the County?s activities. The government-wide financial statements, consisting of a statement of net assets and a statement of activities, provide a comprehensive financial picture of the County, split between governmental activities and business-type activities. These statements are prepared using the economic resources measurement focus and the accrual basis of accounting, where all assets, liabilities, revenues, and expenses of the County are reported. The fund financial statements provide information concerning the County?s funds and are prepared from the County?s accounting records. The County?s accounting records for general governmental operations are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. Accounting records for the County?s proprietary funds are maintained on the accrual basis. The County?s fiscal year is October 1 to September 30. Section 11.45, Florida Statutes, requires an annual audit of all County agencies. The County has directed that the annual audit be more extensive than that required by Florida Statutes by requiring that the annual audit be a single audit covering all the funds and account groups of the County. This requirement has been complied with, and the unqualified opinion of the auditors has been included in this report. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2012. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for presentation of state and local government financial reports. In order to be awarded a Certificate of Achievement, the County must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards, GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current Comprehensive Annual Financial Report conforms to the Certificate of Achievement Program requirements, and it will be submitted to the GFOA to determine its eligibility for another certificate. A comprehensive annual financial report of this nature could not have been prepared without the dedicated efforts of a considerable number of individuals. I want to especially thank the Clerk and the entire staff of the Finance Department for their invaluable assistance in the preparation of this report. I would also like to thank the members of the County?s independent external auditors. I x Packet Pg. 35 would also like to thank the Board of County Commissioners and their staff, and the other Constitutional Officers for their personal interest and dedicated support in planning and conducting the financial operations of the County in a responsible manner. Gary J. Stanford, CPFO, CGFO Finance Officer/Deputy Clerk Okaloosa County Clerk xi Packet Pg. 36 Packet Pg. 37  OKALOOSA COUNTY, FLORIDA REPORTING ORGANIZATION CITIZENS OF OKALOOSA COUNTY STATE OF FLORIDA OKALOOSA COUNTY BOARD OF COUNTY CLERK OF THE PROPERTY TAX SUPERVISOR OF SHERIFF COMMISSIONERS CIRCUIT COURT APPRAISER COLLECTOR ELECTIONS Okaloosa County Comprehensive Annual Financial Report xv Packet Pg. 38  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 Packet Pg. 39  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 Packet Pg. 40 (THIS PAGE INTENTIONALLY LEFT BLANK) Packet Pg. 41 FINANCIAL SECTION Packet Pg. 42 Packet Pg. 43 Packet Pg. 44 Packet Pg. 45  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