Okaloosa County BOCC — May 17, 2013 — reading text

industry. Actions Taken Preaudit function has been changed, in tandem with amended Operations and Procedures manual of the TDC, to ensure disbursement payments processed for payment are in compliance with contractual provisions and contain appropriate documentation. The change in the Clerk’s BCC preaudit function extends to all BCC departments’ disbursement requests. • No significant deficiencies in internal control reported. • No significant deficiencies for federal awards or state projects. Packet Pg. 20  Summary of Auditor’s Results 4.2.b Recommendations to Management • Airport should not engage in advertising campaigns that involve card giveaways or allocation of resources to private Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual entities due to the discretionary nature of such activities. • P card purchases of the deputy directors, administrative manager and the chief of airport police be approved by the Airport Director or acting Director or their designee. • Airport master lease schedule should be reviewed each month by the Airports Properties Specialist and updated for new leases as well renewals and cancellations of existing leases. • BCC Department Heads/Directors should strengthen its disbursement request procedures to ensure contract provisions are monitored and the disbursement packages submitted for payment contain proper support to allow for effective pre audit by Clerk’s BCC finance function personnel. • The water and sewer department has consolidated the duties of their IT supervisor and Customer Service Manager. We recommend the positions be separated. • Water & Sewer finance manager should work with Clerk’s BCC finance function personnel to document year end procedures and reports needed. • Formally document enterprise risk assessment. Will help management identify control gaps, strengthen existing controls and remove redundancies where possible (BCC/Clerk). • BCC, Clerk, Tax Collector, Sheriff, PA and SOE could strengthen its anti-fraud program by adopting periodic documentation of fraud risk assessments; a written fraud response program and training for County employees on the warning signs of fraud. Packet Pg. 21  Reserves and Fund Balance 4.2.b As of September 30, 2012, Okaloosa County governmental funds had combined fund balances of $49.9 million, a decrease of $2.5 million over the prior year balances. Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual Reserves and Fund Balances Fiscal Year 2012 Capital Project Funds ($ million) $14.9 30% General Fund Reserved $0.3 1% General Fund Unreserved $8.1 16% Tourist Development $13.2 26% Other Funds Reserved $0.2 0% Special Revenue Funds $13.2 27% Total: $49.9 million Packet Pg. 22 Source: 2012 Comprehensive Annual Financial Report  Components of Fund Balance 4.2.b As of September 30, 2012, Okaloosa County governmental funds had combined fund balances of $49.9 million, which are comprised of five separate components of fund balance. GASB 54 established five fund balance classifications of nonspendable, restricted, committed, assigned, and unassigned. Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual Reserves and Fund Balances Fiscal Year 2012 ($ million) Assigned Unassigned $5.0 $7.5 10% 15% Committed Nonspendable $0.6 $0.9 1% 2% Restricted $35.9 Total: $49.9 million 72% Packet Pg. 23 Source: 2012 Comprehensive Annual Financial Report  General Fund – Fund Balance, Revenue and Expenditures 4.2.b General Fund Balance Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual Unreserved Fund Balance Reserved Fund Balance $9 $0.31 $8 $7 $2.80 $6 $5 $4.15 Millions $4 $8.11 $0.37 $2.90 $3 $4.94 $2 $3.56 $2.87 $1 $1.88 $0 2008 2009 2010 2011 * 2012 * *Figures are not a true comparison to prior years due to adoption of GASB 54, which includes collapse of Fine and Forfeiture Fund. Packet Pg. 24 Source: 2012 Comprehensive Annual Financial Report  General Fund – Fund Balance, Revenue and Expenditures 4.2.b General Fund – Revenue and Expenditures Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual Revenues and Other Financing Sources Expenditures and Other Financing Uses $88 $86 $84 $82 $80 Millions $78 $87.4 $86.6 $87.2 $76 $83.3 $82.6 $82.9 $80.3 $81.0 $74 $77.6 $72 $75.4 $70 $68 2008 2009 2010 2011 * 2012 * *Figures are not a true comparison to prior years due to adoption of GASB 54, which includes collapse of Fine and Forfeiture Fund. Packet Pg. 25 Source: 2012 Comprehensive Annual Financial Report  Property Tax Revenue 4.2.b Ad Valorem Property Tax Revenue Attachment: Balent Presentation (1673 : Visitor - Presentation of CAFR & Annual $65 $60 $55 $50 $45 $40 $35 Millions $30 $60.0 $55.3 $25 $51.6 $47.4 $45.1 $20 $15 $10 $5 $0 2008