Okaloosa County BOCC — May 17, 2013 — reading text

Packet Pg. 8 Okaloosa Emergency Management Attachment: PIO UPDATE (1683 : Public Information Officer Presentation)  1.1.a Public Safety HAZMAT Exercise at EOC State of Florida's District 1 Local Emergency Planning Committee and the West Florida Regional Planning Council Attachment: PIO UPDATE (1683 : Public Information Officer Presentation) organized the HazMat Exercise. Participants were Emergency Management members from Santa Rosa and Okaloosa County, emergency response agencies from Bay, Escambia and Okaloosa County, including Eglin AFB, and McKenzie Trucking. Packet Pg. 9  1.1.a Packet Pg. 10 Attachment: PIO UPDATE (1683 : Public Information Officer Presentation)  1.1.a May Military Appreciation Month Doolittle Raiders: Lt. Col. Richard Cole, Staff Sgt. Attachment: PIO UPDATE (1683 : Public Information Officer Presentation) David Thatcher & Lt. Col. Ed Saylor. (Right) B25 Mitchell Bomber at Destin Airport Packet Pg. 11  1.1.a Packet Pg. 12 Attachment: PIO UPDATE (1683 : Public Information Officer Presentation)  4.1 BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: May 7, 2013 TO: Honorable Chairman and Members of the Board FROM: Chapter 7, Blue Star Mothers of America SUBJECT: Visitor - Presentation of Blue Star Mothers Proclamation The Northwest Florida Chapter 7 of the Blue Star Mothers of America was established in Okaloosa County in 2009. The Blue Star Mothers of America was established by Congress to support the sons and daughters serving in the United States Armed Forces. Request presentation of the Proclamation previously approved by the Board that establishes the month of May as "Blue Star Mothers of America Month". Packet Pg. 13  4.2 BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: May 7, 2013 TO: Honorable Chairman and Members of the Board FROM: Angela Balent, CPA, Warren Averett & Gary Stanford, Finance Director SUBJECT: Visitor - Presentation of CAFR & Annual Investment Summary Report Documents and reports are attached related to presentation of the Comprehensive Annual Financial Report (CAFR) & Annual Investment Summary Report. Packet Pg. 14  4.2.a Packet Pg. 15 Attachment: Stanford Cover Letter (1673 : Visitor - Presentation of CAFR & Annual Investment Summary Report)  4.2.b Packet Pg. 16 Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual  Okaloosa County, Florida Reporting Organization 4.2.b Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual Citizens of Okaloosa County State of Florida Okaloosa County Board of County Clerk of the Property Supervisor of Sheriff Tax Collector Commissioners Circuit Court Appraiser Elections Okaloosa County Comprehensive Annual Financial Report Packet Pg. 17  Required Communication During and at the Conclusion of the Audit Process 4.2.b Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual Our Responsibilities • To express an opinions about whether the financial statements, prepared by management with your oversight are fairly presented, in all material respects, in conformity with GAAP. • Our audit includes understanding Okaloosa County and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design nature, timing and extent of audit procedures. Material misstatements can result from error, fraudulent financial reporting, and misappropriation of assets or violations of laws or governmental regulations. To Conclude the 2012 Audit Process • Key estimates in the financial statements that are particularly sensitive because of their significance to the financial statements and because the possibility they may change, possibly significantly in the near term, include: • Estimate for allowance for bad debt in the Water and Sewer and EMS Funds. • Estimate of landfill closure and post closure costs in the Solid Waste Fund. • Estimate of accrued liability for post employment benefits other than pensions (healthcare) applicable to BOCC and all Constitutional Officers. • Estimate of accrued liability for general, automobile and workers’ compensation claims applicable to BOCC and all Constitutional Officers except Sheriff under the self-insurance program. Sheriff uses commercial insurance for these types of claims. • Estimate of accrued liability for medical claims applicable to the Sheriff under the self-insurance program. BOCC and other Constitutional Officers use commercial insurance for these types of claims. • No difficulties encountered in the performance of the audit. • No disagreements with Management. • We received representations from the management of the BCC and all Constitutional Officers in relation to the 2012 audit presentation in letters dated March 22, 2013. Packet Pg. 18  Summary of Auditor’s Results 4.2.b Summary of Auditor’s Results • Unqualified opinions issued with respect to the financial statements and with respect to compliance for major federal Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual and state programs. • Two instances of material weaknesses in internal control over financial reporting and no instances of material weaknesses in internal control over major federal awards and State projects. Material Weakness related to the BCC Finding Lack of support for advertising invoices approved and submitted for payment for Tourist Development Special Revenue Fund, Conference Center Enterprise Fund and Airport Enterprise Fund. Tourist development and BP oil spill awards expended for services not provided or campaigns not approved by BCC as disclosed in Auditor General’s report. No evidence of unauthorized transactions at Airport Enterprise fund based on sample. Recommendation Internal controls over advertising disbursements in all facets of BCC operations should be reviewed and modified to ensure invoices are properly supported at the time of payment and in compliance with contractual provisions. The BCC should work with the advertising firm at the airport to obtain support for all invoices paid as we only tested as sample. Additional training for BCC employees responsible for reviewing invoice support and those confirming receipt of services should be considered due to complexities of advertising industry. Actions Taken Implementation of Operations and Procedures Manual of the Tourist Development Department provided for changes in authority level of approval of expenditures and implementation of a task order system. Further no invoices will be approved unless the actual invoice from the vendor accompanies the invoice reflecting the acquisition of the goods or services. The BCC has instituted efforts to seek recovery of inappropriate expenditures and several recoveries have been made. BCC personnel are in the process of post audit review of all advertising activity of the Airport Enterprise activity. Additional changes made in the purchasing and disbursement process extend to all County departments’ to allow effective pre audit by Clerk finance employees. Packet Pg. 19  Summary of Auditor’s Results 4.2.b Summary of Auditor’s Results (continued) Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual Material Weakness related to the Clerk Finding Pre audit function of disbursements of BCC transactions by Clerk finance personnel did not function as intended. Disbursement packages submitted for payment were inadequately supported at the time the invoices were approved by BCC personnel. As a result Clerk finance personnel were not able to ensure invoices submitted for payment were in accordance with terms of contracts. Tourist Development and BP oil spill awards were expensed for services not provided or campaigns not approved by the BCC as disclosed in Auditor General’s report. No evidence of unauthorized transactions at Airport Enterprise fund based on sample. Recommendation The Clerk’s BCC finance function personnel should review its disbursement procedures and strengthen controls to reduce it susceptibility to improper payments. Specifically prepayment audit and monitoring of contract provisions to ensure disbursement requests are in accordance with contract terms and supported by adequate documentation. Additional training for Clerk employees responsible for reviewing invoice support should be considered due to complexities of advertising