Fort Walton Beach — Comprehensive Annual Financial Report September 30, 2013 — reading text

$ - $ 2,595,977 $ - $ - The accompanying notes are an integral part of these financial statements. 26  EXHIBIT IX City of Fort Walton Beach, Florida FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION September 30, 2013 Employee Retirement Funds ASSETS Cash and cash equivalents $ 2,992,932 Investments, at market U.S. Government and Agency obligations 9,635,255 Corporate obligations 8,515,594 Corporate equity 33,592,964 Mutual funds 14,025,140 Total investments 65,768,953 Due from State of Florida 18,571 TOTAL ASSETS $ 68,780,456 NET POSITION Held in trust for pension and employee retirement benefits $ 68,780,456 The accompanying notes are an integral part of these financial statements. 27  EXHIBIT X City of Fort Walton Beach, Florida FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Year Ended September 30, 2013 Employee Retirement Funds ADDITIONS Contributions Employer $ 2,777,112 Plan members 456,677 State of Florida 375,111 Total contributions 3,608,900 Investment income (loss) 7,729,489 Less investment expense (269,105) Net investment income (loss) 7,460,384 Miscellaneous revenue 109,598 TOTAL ADDITIONS 11,178,882 DEDUCTIONS Benefits and refunds paid Retirement payments 4,881,143 Disability payments 156,257 Refunds 80,170 Total benefits and refunds paid 5,117,570 Administrative expenses Legal 11,360 Contractual services 115,844 Other 26,105 Total administrative expenses 153,309 TOTAL DEDUCTIONS 5,270,879 NET INCREASE (DECREASE) 5,908,003 NET POSITION HELD IN TRUST FOR PENSION BENEFITS BEGINNING OF YEAR 62,872,453 END OF YEAR $ 68,780,456 The accompanying notes are an integral part of these financial statements. 28 (THIS PAGE INTENTIONALLY LEFT BLANK.)  City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Fort Walton Beach, Florida, (the City) was originally chartered as a municipality under laws of the State of Florida Special Act of the Florida Legislature in 1937. The City Manager-Council form of government was established in 1953. As authorized by its charter, the City provides the following services: public safety (police, fire, and inspection), highways and streets, water and sewer, sanitation, stormwater, culture and recreation, public improvements, planning and zoning, and general administrative services. The financial statements of the City have been prepared in accordance with accounting principles generally accepted (GAAP) in the United States of America applicable to governmental units and the Uniform Accounting System mandated by Chapter 218.33, Florida Statutes. The Governmental Accounting Standards Board (GASB) is the standard- setting body for governmental accounting and financial reporting. The following is a summary of the more significant accounting policies of the City: A. The Reporting Entity A seven member City Council and a Mayor govern the City, each elected at-large for four-year terms. The Council has no powers other than those expressly vested in it by State Statute and the City Charter, and their governmental powers cannot be delegated. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Fort Walton Beach (the primary government) and its component unit. In evaluating the City as a reporting entity, management has considered all potential component units for which the City may or may not be financially accountable and, as such, be included within the City's financial statements. Management utilized criteria set forth in GASB No. 61 for determining financial accountability of potential component units in evaluating all potential component units. In accordance with GASB No. 61, the City (primary government) is financially accountable if it appoints a voting majority of the potential component unit's governing board and 1) it is able to impose its will on the organization or 2) there is a potential for the organization to provide specific financial benefit to or impose specific financial burden on the City. In addition, component units can be other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. 29  City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. The Reporting Entity (Continued) As of September 30, 2013, the City of Fort Walton Beach had one component unit, as defined by GASB 61, which has been presented in the financial statements of the primary government using the blended presentation method, and is presented as a governmental fund type with a fiscal year end of September 30. The Fort Walton Beach Community Redevelopment Agency (the Agency) was formed to prepare a community redevelopment plan for a designated geographic area within the City of Fort Walton Beach, Florida. All of the City's council members serve as board members of the Agency. The Agency's governing body is the same as the governing body of the City and the Agency provides services specifically to the Community Redevelopment Area of the City. Due to the nature and significance of the Agency's relationship with the City, exclusion of the Agency's financial operations would render the City's financial statements incomplete or misleading. The Fort Walton Beach Housing Authority (the Authority) is considered a related organization to the City rather than a component unit. The City Council of Fort Walton Beach, Florida appoints the board members of the Authority. However, the Authority's board operates independently of the City Council and does not create a financial burden or benefit to the City. B. Government-Wide and Fund Financial Statements The basic financial statements include both government-wide (based on the City as a whole) and fund financial statements. The government-wide financial statements (i.e., the statement of position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 30  City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2013 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus and Basis of Accounting