Fort Walton Beach — Comprehensive Financial Report September 30, 2015 — reading text

10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Inland $ 555,260 Fine Arts Marine $ 250,000 Rented, Borrowed, Leased Equipment $ 664,648 Contractor's Mobile Equipment $ 588,532 EDP/Minicomputer/Word Processor $ 250,000 Valuable Papers $ 231,933 Other Inland Marine $ 318,276 Emergency Svcs Portable Equipment $ 255,211 Communication Equipment 09/16/14 to 09/16/15 Hartford 21BSBDB7459 Fisher-Brown Agency Public Official $ 50,000 Finance Director Bond 02/09/15 to 02/09/16 Hartford 21BSBDB7454 Fisher-Brown Agency Public Official $ 50,000 Customer Service Administrator, Finance Bond Department 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Auto $ 100,000 Uninsured Motorist $ 1,000,000 CSL Liability 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Forgery $ 250,000 Alteration 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Money & $ 10,000 129  City of Fort Walton Beach, Florida SCHEDULE 25 INSURANCE COVERAGE Unaudited Agent, Broker, or Effective Dates Company Policy Number Company Rep. Type Amount Location Securities 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Crime $ 250,000 Public Employees Blanket Fidelity Bond 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency General $ 1,000,000 Occurance Liability 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Property $ 45,883,959 Blank Real & Personal Property 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Property $ 100,000 Business Income 500,000 Additional Expense 10/01/14 to 10/01/15 PGIT WC-FL1046200313-04 Public Risk Insurance Agency Worker's $ 1,000,000 Accident Comp $ 1,000,000 Disease 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Public Officials $ 5,000,000 Empl. Practice 5,000,000 10/01/13 to 10/01/15 Federal Insurance 9906-62-32 LB Bryan & Co. AD&D $ 65,000 Occupational Death Mutual of Omaha $ 65,000 Response to Emergency $ 190,000 Unlawful/Unintentional 10/01/14 to 10/01/15 PGIT PKFL1046200315-11 Public Risk Insurance Agency Boiler & $ 45,883,959 Machinery 05/01/15 to 05/01/16 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 130  CITY OF FORT WALTON BEACH, FLORIDA OTHER SUPPLEMENTARY INFORMATION SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL FOR THE YEAR ENDED SEPTEMBER 30, 2015 Amounts Amounts Received in Expended in the 2014-2015 the 2014-2015 Source Fiscal Year Fiscal Year British Petroleum: Final Settlement Economic and Property Damage Claim $ 148,570 $ - 131 (THIS PAGE INTENTIONALLY LEFT BLANK.)  CITY OF FORT WALTON BEACH, FLORIDA SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 2015 State Agency Pass-Through Entity CSFA Contract/Grant State Project Number Number Expenditures Florida Department of Environmental Protection Direct programs Wastewater Treatment Facility Construction 37.077 WW284100 $ 455,330 Stormwater Projects 37.082 S0693 35,542 490,872 Florida Department of Economic Opportunity Direct program Division of Community Development 40.038 HL020 / T1431 213,000 TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 703,872 See notes to the schedule of expenditures of state financial assistance. 132  CITY OF FORT WALTON BEACH, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 2015 1. BASIS OF PRESENTATION Description of City 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. 133  INDEPENDENT AUDITORS’ 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 To the Honorable Mayor and City Council Members City of Fort Walton Beach, Florida 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, 2015, 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 2, 2016. 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) to determine the audit procedures that are appropriate in the circumstances 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 control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our