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

City Hall Ball Field Restrooms 10/01/13 to 10/01/14 Indian Harbor Ins. Co. PEC002924704 Public Risk Insurance Agency Petroleum $ 1,000,000/inc Golf Course, Police, City Shop, Fuel Station Liability $ 1,000,000/agg 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Inland $ 555,260 Fine Arts Marine $ 250,000 Rented, Borrowed, Leased Equipment $ 2,033,411 Contractor's Mobile Equipment $ 603,740 EDP/Minicomputer/Word Processor $ 250,000 Valuable Papers $ 238,361 Other Inland Marine $ 321,638 Emergency Svcs Portable Equipment $ 255,211 Communication Equipment Continued… 116  City of Fort Walton Beach, Florida SCHEDULE 25 INSURANCE COVERAGE September 30, 2011 Unaudited Agent, Broker, or Effective Dates Company Policy Number Company Rep. Type Amount Location 09/16/13 to 09/16/14 Hartford 21BSBDB7459 Fisher-Brown Agency Public Official $ 50,000 Finance Director Bond 04/18/13 to 04/18/14 Hartford 21BSBDB7454 Fisher-Brown Agency Public Official $ 50,000 Customer Service Administrator, Finance Bond Department 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Auto $ 100,000 Uninsured Motorist $ 1,000,000 CSL Liability 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Forgery $ 250,000 Alteration 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Money & $ 10,000 Securities 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Crime $ 250,000 Public Employees Blanket Fidelity Bond 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency General $ 1,000,000 Occurance Liability Aggregate 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Property $ 45,451,357 Blank Real & Personal Property 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Property $ 500,000 Business Income 500,000 Additional Expense 10/01/13 to 10/01/14 PGIT WC-FL1046200313-04 Public Risk Insurance Agency Worker's $ 1,000,000 Accident Comp $ 1,000,000 Disease 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Public Officials $ 5,000,000 Empl. Practice 5,000,000 Continued… 117  City of Fort Walton Beach, Florida SCHEDULE 25 INSURANCE COVERAGE September 30, 2011 Unaudited Agent, Broker, or Effective Dates Company Policy Number Company Rep. Type Amount Location 10/01/13 to 10/01/15 Federal Insurance 9906-62-32 LB Bryan & Co. AD&D $ 59,695 Occupational Death $ 59,695 Response to Emergency $ 179,085 Unlawful/Unintentional 10/01/13 to 10/01/14 PGIT PKFL1046200313-09 Public Risk Insurance Agency Boiler & $ 45,451,357 Machinery 05/01/13 to 05/01/14 Travelers 105927344 Fisher-Brown Agency Fiduciary $ 2,000,000 Retirement Fund for General Liability Employees and Fire Source: City of Fort Walton Beach Risk Management Department 118 (THIS PAGE INTENTIONALLY LEFT BLANK.) IV. COMPLIANCE SECTION  COMPLIANCE MATTERS  MANAGEMENT LETTERS  RESPONSES TO THE MANAGEMENT LETTER  City of Fort Walton Beach, Florida SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE Year Ended September 30, 2013 State Agency Pass-Through Entity CSFA Contract/Grant State Project Number Number Expenditures Florida Department of Environmental Protection Direct Program Wastewater Treatment Facility Construction 37.077 WW284100 $ 10,529,441 Florida Department of Community Affairs Direct Program Disaster Funding Agreement - Hurricane Isaac 97.036 13IS3S015601551 455 Florida Executive Office of the Governor Direct Program Infrastructure Grant Agreement 31.003 DIG1113 194,876 TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 10,724,772 The accompanying notes are an integral part of this schedule. 119  City of Fort Walton Beach, Florida NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE Year Ended September 30, 2013 NOTE 1 - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of State Financial Assistance includes the state grant activity of the City of Fort Walton Beach, Florida, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements described in Chapter 10.550, Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 120 Honorable Mayor and City Council Members City of Fort Walton Beach, Florida INDEPENDENT AUDITOR'S 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 We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fort Walton Beach, Florida, as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the City of Fort Walton Beach, Florida's basic financial statements and have issued our report thereon dated March 3, 2014. Internal Control over Financial Reporting In planning and performing our audit, we considered the City of Fort Walton Beach, Florida's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Fort Walton Beach, Florida's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal