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Annual Comprehensive

Financial Report

Okaloosa County, Florida

For The Fiscal Year Ended

September 30, 2022

OKALOOSA COUNTY, FLORIDA

TABLE OF CONTENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

I

I. INTRODUCTORY SECTION

Table of Contents I

Letter of Transmittal V

GFOA Certiﬁcate of Achievement XIV

Organizational Chart XV

County Ofﬁcials XVI

II. FINANCIAL SECTION

Independent Auditors’ Report 1

MANAGEMENT’S DISCUSSION AND ANALYSIS 5

BASIC FINANCIAL STATEMENTS

Government-wide Financial Statements

Statement of Net Position 17

Statement of Activities 20

Fund Financial Statements

Governmental Funds

Balance Sheet – Governmental Funds 21

Reconciliation of the Governmental Funds Balance Sheet to the

Statement of Net Position 23

Statement of Revenues, Expenditures and Changes in

Fund Balance Governmental Funds 24

Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balance to the Statement of Activities 26

Proprietary Funds

Statement of Net Position – Proprietary Funds 27

Statement of Revenues, Expenses and Changes in Net Position –

Proprietary Funds 30

Statement of Cash Flows – Proprietary Funds 31

Fiduciary Funds

Statement of Fiduciary Net Position – Custodial Funds 34

Statement of Changes in Fiduciary Net Position – Custodial Funds 35

Notes to the Financial Statements 36

OKALOOSA COUNTY, FLORIDA

TABLE OF CONTENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

II

II. FINANCIAL SECTION – CONTINUED

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

Schedules of Revenues, Expenditures and Changes in Fund Balance –

Budget to Actual

General Fund 106

Tourist Development Special Revenue Fund 107

Natural Disaster Special Revenue Fund 108

Schedule of Changes in Net OPEB Liability and Related Ratios 109

Schedule of the County’s Proportionate Share of the Net Pension Liability –

Florida Retirement System (FRS) & Health Care Subsidy (HIS) 111

Schedule of the County’s Contributions – Florida Retirement System (FRS) &

Health Insurance Subsidiary (HIS) 113

Notes to Required Supplementary Information 115

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Combining Balance Sheet – General Fund by Category 117

Combing Schedule of Revenues, Expenditures, and Changes in

Fund Balance – General Fund by Category 118

Schedules of Revenues, Expenditures, and Changes in Fund Balance –

Budget and Actual – Major Capital Project Funds

Road and Bridge Construction Capital Projects Fund 119

Infrastructure Surtax Fund 120

Combining Balance Sheet – Nonmajor Governmental Funds 124

Combining Statement of Revenues, Expenditures and Changes

in Fund Balance – Nonmajor Governmental Funds 132

Schedules of Revenues, Expenditures, and Changes in Fund Balance –

Budget and Actual – Nonmajor Governmental Funds

County Transportation Trust Special Revenue Fund 140

Local Housing Assistance Trust Special Revenue Fund 141

E-911 Operations Special Revenue Fund 142

Radio Communications Special Revenue Fund 143

Law Enforcement Trust Special Revenue Fund 144

Police Academy Special Revenue Fund 145

County Public Health Special Revenue Fund 146

Municipal Services Benefit Unit Special Revenue Fund 147

Unincorporated Municipal Services Taxing Unit Fund 148

Prisoner Benefit Special Revenue Fund 149

Additional Court Cost Special Revenue Fund 150

Drug Abuse Trust Special Revenue Fund 151

Domestic Violence Trust Special Revenue Fund 152

Traffic Education Special Revenue Fund 153

Choctaw Estuary Fund 154

OKALOOSA COUNTY, FLORIDA

TABLE OF CONTENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

III

II. FINANCIAL SECTION – CONTINUED

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES – CONTINUED

Schedules of Revenues, Expenditures, and Changes in Fund Balance –

Budget and Actual:

Fiber Optic Cable Fund 155

Courts Special Revenue Fund 156

Public Records Modernization Trust Special Revenue Fund 157

Public Records Courts Special Revenue Fund 158

Federal Law Enforcement Trust Fund 159

Teen Driver Challenge Fund 160

Okaloosa Debt Service Fund 161

Capital Outlay Construction Trust Capital Projects Fund 162

Combining Statement of Net Position – Nonmajor Enterprise Funds 164

Combining Statement of Revenues, Expenses, and Changes in Net

Position – Nonmajor Enterprise Funds 166

Combining Statements of Cash Flows – Nonmajor Enterprise Funds 167

Combining Statements of Net Position – Internal Service Funds 169

Combining Statement of Revenues, Expenses, and Changes in Net

Position – Internal Service Funds 173

Combining Statement of Cash Flows – Internal Service Funds 175

Combing Statement of Fiduciary Net Position – Custodial Funds 177

Combining Statement of Changes in Fiduciary Net Position –

Custodial Funds 180

III. STATISTICAL SECTION (UNAUDITED)

STATISTICAL SECTION NARRATIVE

Changes in Net Position – Last Nine Fiscal Years 187

Fund Balances – Governmental Funds – Last Ten Fiscal Years 192

Changes in Fund Balances – Governmental Funds – Last Ten Years 194

Governmental Tax Revenues by Source – Last Ten Fiscal Years 196

Taxable Assessed Value and Estimated Actual Value of Property 200

Property Tax Millage Rates for Direct and Overlapping 202

Principle Property Tax Payers – Last Fiscal Year Compared to

Fiscal Year Nine Years Earlier 204

Properly Tax Levies and Collections – Last Ten Fiscal Years 206

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 208

Pledged Revenue Bond Coverage 210

Computation of Direct and Underlying Debt 213

Demographic and Economic Statistics – Last Ten Years 214

Principle Employers – Current Year and Nine Years Ago 216

OKALOOSA COUNTY, FLORIDA

TABLE OF CONTENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

IV

III. STATISTICAL SECTION (UNAUDITED) – CONTINUED

STATISTICAL SECTION NARRATIVE – CONTINUED

Full-time Equivalent Government Employees by Function - Last Ten Years 218

Operating Indicators by Function/Program – Last Ten Fiscal Years 220

Capital Indicators by Function/Program – Last Ten Fiscal Years 221

IV. COMPLIANCE SECTION

Independent Auditors’ Report on Internal Control Over Financial Reporting

and on Compliance and Other Matters Based on Audit of Financial

Statements Performed in Accordance with Government Auditing

Standards 222

Auditor General Compliance:

Independent Accountants’ Report on Examination of Compliance

Requirements in Accordance with Chapter 10.550, Rules of the

Auditor General 224

Schedule of Receipts and Expenditures of Funds Related to the Deepwater

Horizon Oilspill 225

Management Letter 226

Single Audit Compliance:

Independent Auditors’ Report on Compliance for Each Major Federal

Program and State Project and on Internal Control Over Compliance

Required by the Uniform Guidance; and Chapter 10.550, Rules of the

the Auditor General and Compliance with Requirements Applicable

to the Facility Charge Program and Internal Control Over Compliance 228

Schedule of Expenditures of Passenger Facility Charges 231

Notes to the Schedule of Expenditures of Passenger Facility Charges 232

Schedule of Expenditures of Federal Awards and State Financial Assistance 233

Notes to the Schedule of Expenditures of Federal Awards and State

Financial Assistance 238

Schedule of Findings and Questioned Costs 239

JD PEACOCK II

CLERK OF THE CIRCUIT COURT AND COMPTROLLER, OKALOOSA COUNTY, FLORIDA

March 29, 2023

To the Citizens of Okaloosa County:

We are pleased to present to you the Annual Comprehensive Financial Report of Okaloosa County,

Florida (the County) for the fiscal year ended September 30, 2022. The Clerk of the Circuit Court and

County Comptroller, by authority of the Constitution of the State of Florida, is responsible for both the

accuracy of the presented data as well as the completeness and fairness of the presentation, including

all disclosures. This report was prepared by the Finance Department under the supervision of the Clerk

of Court & Comptroller. This report contains three major sections: the Introductory, the Financial, and

the Statistical.

The County prepares the basic financial statements to meet the requirements of Governmental

Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management’s

Discussion and Analysis (MD&A) - for State and Local Governments (GASB 34) reporting model requiring

the County to report in five parts, including, Management’s Discussion and Analysis, Government-wide

Financial Statements, major Fund Financial Statements, Budgetary Comparisons for certain funds and

the Notes to the Financial Statements.

The report consists of management’s representations concerning the finances of the County.

Consequently, management assumes full responsibility for the completeness and reliability of all the

information presented in this report. To provide a reasonable basis for making these representations,

management of the County has established a comprehensive internal control framework that is

designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient

reliable information for the preparation of the County’s financial statements in conformity with

generally accepted accounting principles in the United States (GAAP). Because the costs of internal

controls should not outweigh their benefits, the County’s comprehensive framework of internal controls

has been designed to provide reasonable rather than absolute assurance that the financial statements

will be free from material misstatement. As management, we assert that, to the best of our knowledge

and belief, this financial report is complete and dependable in all material respects.

The County’s financial statements have been audited by the certified public accountants of the firm of

Warren Averett CPAs and Advisors. The goal of the independent audit was to provide reasonable

assurance that the financial statements of the County for the fiscal year ended September 30, 2022, are

free of material misstatement. The independent audit involved examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements; assessing the accounting principles

used and significant estimates made by management; and evaluating the overall financial statement

presentation. The independent auditors concluded, based upon the audit, that there was a reasonable

basis for rendering an unmodified opinion that the County’s financial statements for the fiscal year

ended September 30, 2022, are fairly presented in conformity with GAAP. The report of independent

accountants is presented as the first component of the financial section of this report.

V

Okaloosa County is a non-charter county established under the Constitution and the Laws of the State

of Florida. This Annual Comprehensive Financial Report (Annual Report) includes the funds of the

primary government (the Board of County Commissioners, the Clerk of Court & Comptroller, the

Property Appraiser, the Sheriff, the Supervisor of Elections, and the Tax Collector).

Generally accepted accounting principles require that organizations for which the County is financially

accountable be reported with the primary government (the County) as the reporting entity, however

none of the organizations met this criterion. This Annual Report does not include the Okaloosa County

School District or any other independent agency of Okaloosa County.

ECONOMIC CONDITION AND OUTLOOK

Okaloosa County is one of Florida's youngest

counties, created in 1915 by an act of the state

legislature. Okaloosa County is in the panhandle of

Northwest Florida. The city of Crestview, near its

geographical center, is the County seat. The

estimated population is over 210,000 full time

residents. As more people flock to Florida, we

continue to see some of America’s best and

brightest choose to call Okaloosa County home.

Occupying a large portion of Okaloosa County is one of the world's largest military reservations.

Established in 1935, Eglin Air Force Base covers over 724 square miles in Okaloosa and two neighboring

counties and contains the 919

th

Special Operations Wing, Duke Field. Eglin Air Force Base is an Air Force

Materiel Command base serving as the focal point for all Air Force Armaments. Eglin is responsible for

development, acquisition, testing,

deployment, and sustainment of all air-

delivered non-nuclear weapons. Based

upon Eglin's wide range of activities,

Eglin will continue its major role in the

defense of the United States and in the

economy of Okaloosa County. Hurlburt

Field, the headquarters of the Air Force

Special Operations Command, is also

located in Okaloosa County. Hurlburt

Field occupies about 6,000 acres in the

County. The military presence is a major

income-producing source for the

County.

VI

Tourism is the leading private income producing

source for Okaloosa County. Visitor spending

exceeds $3.59 billion annually with total

employment of over 56,280 in tourism-related

businesses which generates nearly $425 million in

tax revenues per year, offsetting the cost of services

to locals. Tourists may visit Welcome Centers on

Okaloosa Island or at the Destin-Fort Walton Beach

Airport for information on lodging, local activities,

area information, sightseeing and all other things to

do during their visit. Approximately 7.9 million

visitors are estimated to come to our area annually.

Residents and tourists in Okaloosa County have a

full range of attractions and recreational opportunities. Beaches are made up of finely ground, perfectly

round quartz crystals carried from the Appalachian Mountains that squeak beneath your bare feet with

every step. Kayaking, canoeing, and paddle boarding are great ways to explore the calm, still waters of

Choctawhatchee Bay or the gentle Gulf of Mexico waves. Destin Harbor is home to the nation’s largest

charter fishing fleet and is the epicenter of the local commercial and recreational fishing community.

The harbor offers excursions, Gulf-to-Table seafood, live music, unique shops, evening fireworks, and

much more. Destin Commons is a large open-air mall with a variety of dining options, family-friendly

events, a movie theater, and national brands alongside unique styles found only here. Fort Walton

Beach offers a walkable downtown perfect for an evening stroll through the Landing Park, Indian Temple

Mound archeological site, shops, and restaurants and bars.

Seven industrial parks have been developed with a total of over 1,100 acres available. An industrial park

near Crestview has an 8,000-foot reinforced runway, capable of handling the largest aircraft, and it has

complete utilities and services. A municipal industrial park at Fort Walton Beach offers complete

facilities and utility services to companies supplying space-age components to the United States Air

Force.

The One Okaloosa Economic Development Council places the total labor force at 103,945 and the

unemployment rate at 2.2 percent as of September 2022. This compares favorably to Florida's rate of

2.3 percent and the national rate of 3.5 percent. Okaloosa County's cost of living is consistently below

the national average and Florida has no state income tax. Property valuations increased again this year,

continuing to provide the County the opportunity to maintain one of the state’s lowest millage rates

while also striving to maintain a relatively high level of service to County residents.

VII

MAJOR FUNCTIONAL INITIATIVES

General Government Initiatives

The County has made considerable progress in several areas on behalf of the citizens. The County has

now broken ground on every phase of the Southwest Crestview Bypass, from phases I-IV along PJ Adams

Parkway on the south side of I-10 to Phase V

and the East-West Connector (named Fallen

Heroes Way by the Crestview City Council) on

the north side of I-10. Department of

Transportation (FDOT) has also begun

construction of the new interchange with

Interstate 10 between Phases IV and V. All

totaled, this work is a $200 million set of

projects that are the single-largest

undertaking in Okaloosa County government

history. This bypass will provide alternate

routes for the high volume of traffic headed

into the Crestview area from points south,

including Eglin Air Force Base. The County has fully funded the project through a combination of half-

cent discretionary infrastructure surtax, BP Oil spill restitution and FDOT funds, scheduled to be

completed in 2025. Another major initiative is the systematic stabilization of dirt roads, with a

combination of lime rock and asphalt cap, which will reduce maintenance and improve surface water

quality in several areas of north County.

Public Safety Initiatives

The Department of Corrections and Public Safety (Emergency Management, Emergency Medical

Services and Beach Safety) function as independent departments. The Department of Corrections and

County Jail continue to deal with population growth, while trying their best to mitigate those increases

and study future impacts. The County dedicates a

great deal of financial and personnel resources for

public safety initiatives and facilities, like the

Emergency Operations Center, which engages in

24/7 all-hazards threat monitoring 365 days per

year. Upgrading of the Secondary EOC is also in

progress. Emergency Medical Services continues

to review and improve their function to enhance

this much needed service. These enhancements

include update and more-advanced life-saving

equipment and response vehicles, including

modifications to practices following the latest,

most-effective medical protocols. New public

outreach instructional classes have been

implanted and a community telemedicine plan is in the initial planning stages. Infrastructure Surtax

funding provided the opportunity to complete a Sheriff’s Office Training Center improvement in West

Crestview, and projects are in place and underway to improve the security of schools and improve

emergency communications throughout the County. The Sheriff was active and involved in many of

these public safety initiatives throughout the year from a capital and operational perspective.

VIII

Physical Environment Initiatives

Physical environment initiatives primarily relate to water/wastewater improvements, solid waste, and

stormwater. County Water & Sewer continued to focus efforts on resiliency projects that include

rehabilitation, replacement, and upgrades of aging

infrastructure to minimize the risk of sanitary sewer overflows.

From FY2021 until now, 6.3 miles of gravity sewer has been

lined with cured-in-place pipe installation with over 24 miles

planned in future years. Construction of the Okaloosa

County/Niceville/Eglin Air Force Base reclaimed water project

continued and will be completed mid FY2023. In addition to

gravity sewer rehab and the reclaimed water project, efforts

have continued in adding redundant alarm systems,

generators, and bypass pumps in our most vulnerable Lift

Stations. To meet the increased loading from septage/FOG and

account for future system growth, the design-build contract for

the Arbennie Pritchett Water Reclamation Facility Solids

Handling Expansion was executed for an amount of $9.3 million

dollars. In-house staff also completed the installation of water

mains along PJ Adams and began water main relocations for

the Southwest Crestview Bypass.

Solid Waste continues remediation

and monitoring of the closed

landfill facilities. Contracts for

solid waste service are

competitively procured and

negotiated to maintain cost

effective solutions. The solid waste

contract services generated over

$14M in revenue and managed

over 160,000 tons of waste for

approximately 34,000 homes.

Stormwater assessments are

levied to meet the growing needs

of certain deteriorating

infrastructure, while attempting to

determine some long-term

resolution.

Transportation Initiatives

Transportation needs continue to be an area of vital importance to the citizens and elected officials of

the County. Maintenance and enhancement of existing roadways and bridges is a high priority, but the

limitation for significant improvement generally is hampered by limited resources. The approval of the

half-cent discretionary infrastructure surtax, to improve infrastructure, stormwater management and

public safety in Okaloosa County is providing a healthy source of income for infrastructure

improvements. In addition to the Southwest Crestview Bypass, the County recently completed an

ambitious stormwater retrofit project along 6

th

Street in the Port Dixie section of Shalimar from 9

th

Avenue to its outfall south of 3

rd

Avenue.

IX

The Destin-Fort Walton Beach Airport (VPS), along with the General Aviation Airports in Destin at the

Destin Executive Airport (DTS) and in Crestview at the Bob Sikes Airport (CEW), continued to enhance

all facets of aviation activity with significant growth throughout the year. Recent FDOT economic impact

studies detail over $2B in economic impact generated annually from Okaloosa County’s three airport

system. The US Department of Transportation and FDOT helped fund projects at the County’s airports

related to facility expansions and safety improvements. At the Destin-Fort Walton Beach Airport,

upgrades include a new Baggage Handling System and main terminal lobby expansion, additional ticket

counters, circulation space and restrooms. A new five-gate Concourse C opened in June 2022 with three

additional TSA checkpoints and concessions. A ground control tower and security inspection facility

were also completed to increase safety and security on the aircraft apron. Design efforts for an

expanded baggage claim area, which will add two additional carousels and 15,000 square feet of lobby

space, are complete. The Bob Sikes Airport has welcomed new corporate tenants and enjoyed

significant hangar and facility expansions by the Fixed Base Operator, Emerald Coast Aviation, and

businesses operating on the field. The Destin Executive Airport continues to grow serving tourism,

leisure and business travel needs.

Economic Environment Initiatives

The economy of the County relates mainly to tourism and the military, although there are other growing

aspects being emphasized and explored. The Tourist Development Council’s “Destination Stewardship”

program elevates the visitor experience and improves the economic impact of stays by engaging visitors

and locals in unique locations and experiences of the Destin-Fort Walton Beach area to fulfill the

destination’s brand promise to get kids on the water, as well as to address core challenges of improving

mobility and accessibility to adventures, friendliness and pride in place. Financial assistance in the form

of housing assistance and assistance related to the many veterans located in the area also are included

in Economic Environmental initiatives. Community Redevelopment agencies in several cities within the

County utilize portions of Ad Valorem Tax dollars to enhance economic development in those

designated areas.

X

Human Service Initiatives

The funding for human service activities in the County include mosquito control, animal welfare, health

care, Medicaid, elder services, day care service, mental health services and court-related child

protection services expenditures. These activities, particularly state aid for Medicare and Medicaid,

account for well over half of the dollars spent in this functional category. A portion of the operation of

the Okaloosa County Health Department is another human service initiative in the County. Mosquito

control, which covers over 650,000 acres, funding is supplemented by grant funding which aides in

management of vector disease control initiatives.

Culture/Recreation Initiatives

The Culture and Recreational activities are an important element of funding in this diverse County

ranging from the beautiful beaches to parks throughout the County, especially in the rural areas of north

county. A horse arena attracts equestrian enthusiasts for rodeos and other competitive events. The

Countywide Library Cooperative provides all citizens access to tools for success in education, work, and

life. It supports member Municipal libraries through funding allocations, technology infrastructure, and

countywide digital services that ensure eBooks, audios, magazines, and continuing education courses

are available 24/7/365. Tourist Development continues utilizing bed tax to protect and restore

Okaloosa County’s natural resources, including artificial reef deployments, and the purchase of property

to expand beach access and amenities at Crystal Beach and Tarpon Beach.

Future Initiatives

The County was heavily impacted by the COVID-19 pandemic but saw a rebound, breaking records in

revenue and occupancy. Future planning initiatives include building up financial reserves, establishing

a budget reserve policy, and allocating resources prudently. The half-cent discretionary infrastructure

surtax has enabled the county to launch many projects which will benefit county residents. There are

currently 26 active projects, including the North-western Crestview bypass. Revenue in this fund has

exceeded expectations which has

allowed for many key infrastructure

projects to be completed. The County

will continue to monitor road and

stormwater needs consistent with the

availability of funds.

One tax increment area was established

around Interstate 10 to alleviate

congestion in the countywide

transportation system and enhance the

flow of traffic throughout the County.

The County also has an eye on the future

of the economy. Currently, there are

two main drivers to the County’s

economy – the military mission and

tourism. To create other opportunities,

the County recently purchased 600+

acres at the Shoal River Ranch property east of Crestview to preserve and to sell to a large manufacturer

for use as a production plant.

XI

Additionally, the County has used a grant from Triumph Gulf Coast to build out water and sewer lines

and an economic support grant from the State to construct roadways to the site. This ensures the site

will be ‘shovel-ready’ for a manufacturer as soon as possible. The creation of a manufacturing plant will

ensure financial stability and growth for Okaloosa County for years to come.

Quality of life issues will continue to be reviewed around culture and recreation. A referendum to

expand the tourist development taxing district countywide was approved by voters on October 5, 2021,

which will provide additional funding to address tourism-related issues such as mobility, accessibility,

and public safety.

FINANCIAL INFORMATION

Readers of this report are encouraged to read Management’s Discussion and Analysis (MD&A). The

MD&A provides basic financial information about the County and an overview of the County’s activities.

The government-wide financial statements, consisting of a Statement of Net Position and a Statement

of Activities, provide a comprehensive financial picture of the County, split between governmental

activities and business-type activities. These statements are prepared using the economic resources

measurement focus and the accrual basis of accounting, where all assets, liabilities, revenues, and

expenses of the County are reported. The fund financial statements provide information concerning the

County’s funds and are prepared from the County’s accounting records. The County’s accounting

records for general governmental operations are maintained on a modified accrual basis, with revenues

being recorded when available and measurable and expenditures being recorded when the services or

goods are received, and the liabilities are incurred. Accounting records for the County’s proprietary

funds are maintained on an accrual basis. The County’s fiscal year is October 1 to September 30.

Section 11.45, Florida Statutes, requires an annual audit of all County agencies. The County has directed

that the annual audit be more extensive than that required by Florida Statutes by requiring that the

annual audit be a single audit covering all the funds and account groups of the County. This requirement

has been complied with, and the unmodified opinion of the auditors has been included in this report.

AWARDS AND ACKNOWLEDGEMENTS

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a

Certificate of Achievement for Excellence in Financial Reporting to the County for its Annual

Comprehensive Financial Report for the fiscal year ended September 30, 2021.

The Certificate of Achievement is a prestigious national award, recognizing conformance with the

highest standards for presentation of state and local government financial reports. In order to be

awarded a Certificate of Achievement, the County must publish an easily readable and efficiently

organized annual comprehensive financial report whose contents conform to program standards, GAAP

and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current Annual

Comprehensive Financial Report conforms to the Certificate of Achievement Program requirements,

and it will be submitted to the GFOA to determine its eligibility for another certificate.

XII

A comprehensive annual financial report of this nature could not have been prepared without the

dedicated efforts of a considerable number of individuals. I want to especially thank the entire staff of

the Finance Department for their invaluable assistance in the preparation of this report. I would also

like to thank the members of the County’s independent external auditors. I would also like to thank the

Board of County Commissioners and their staff, and the other Constitutional Officers for their personal

interest and dedicated support in planning and conducting the financial operations of the County in a

responsible manner.

JD Peacock II

Okaloosa County Clerk & Comptroller

XIII

Government Finance Officers Association

Certificate of

Achievement

for Excellence

in Financial

Reporting

Presented to

Okaloosa County

Florida

For its Annual Comprehensive

Financial Report

For the Fiscal Year Ended

September 30, 2021

Executive Director/CEO

XIV

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XV

XVI

COUNTY OFFICIALS

AS OF SEPTEMBER 30, 2022

COUNTY COMMISSIONERS

Paul Mixon, District I

Carolyn Ketchel, District II

Nathaniel Boyles, District III

Trey Goodwin, District IV

Mel Ponder, District V

OTHER ELECTED OFFICIALS

JD Peacock II, Clerk of the Circuit Court and County Comptroller

Eric Aden, Sheriff

Ben Anderson, Tax Collector

Mack Busbee, Property Appraiser

Paul Lux, Supervisor of Elections

OTHER OFFICIALS

John Hofstad, County Administrator

1

INDEPENDENT AUDITORS’ REPORT

To the Honorable Chairman and Members of the

Board of County Commissioners and Other Elected Officials

Okaloosa County, Florida

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-

type activities, each major fund, and the aggregate remaining fund information of Okaloosa County,

Florida, (hereinafter referred to as “County”) as of and for the year ended September 30, 2022, and the

related notes to the financial statements, which collectively comprise the County’s basic financial

statements, as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities, the business-type activities, each major fund,

and the aggregate remaining fund information of Okaloosa County, Florida, as of September 30, 2022,

and the respective changes in financial position, and, where applicable, cash flows thereof for the year

then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit 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. Our responsibilities under those standards are

further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our

report. We are required to be independent of the County and to meet our other ethical responsibilities, in

accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence

we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

As discussed in Note 1 to the financial statements, in 2022, the County adopted new accounting

guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in

accordance with accounting principles generally accepted in the United States of America, and for the

design, implementation, and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or

error.

In preparing the financial statements, management is required to evaluate whether there are conditions

or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue

as a going concern for twelve months beyond the financial statement date, including any currently known

information that may raise substantial doubt shortly thereafter.

2

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that

includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance

and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing

standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from

error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override

of internal control. Misstatements are considered material if there is a substantial likelihood that,

individually or in the aggregate, they would influence the judgment made by a reasonable user based on

the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government

Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material misstatement of the financial statements, whether due to

fraud or error, and design and perform audit procedures responsive to those risks. Such

procedures include examining, on a test basis, evidence regarding the amounts and disclosures

in the financial statements.

 Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the County’s internal control. Accordingly, no such opinion is

expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant

accounting estimates made by management, as well as evaluate the overall presentation of the

financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,

that raise substantial doubt about the County’s ability to continue as a going concern for a

reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters,

the planned scope and timing of the audit, significant audit findings, and certain internal control-related

matters that we identified during the audit.

3

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s

discussion and analysis, budgetary comparison schedules, and schedules related to pension and other

post employment healthcare benefits, as listed in the table of contents, be presented to supplement the

basic financial statements. Such information is the responsibility of management and, although not a part

of the basic financial statements, is required by the Governmental Accounting Standards Board who

considers it to be an essential part of financial reporting for placing the basic financial statements in an

appropriate operational, economic, or historical context. We have applied certain limited procedures to

the required supplementary information in accordance with auditing standards generally accepted in the

United States of America, which consisted of inquiries of management about the methods of preparing

the information and comparing the information for consistency with management’s responses to our

inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic

financial statements. We do not express an opinion or provide any assurance on the information because

the limited procedures do not provide us with sufficient evidence to express an opinion or provide any

assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively

comprise the County’s basic financial statements. The accompanying combining and individual nonmajor

fund financial statements, nonmajor fund budgetary comparison schedules, and schedule of

expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal

Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements

for Federal Awards, and Chapter 10.550, Rules of the Auditor General, are presented for purposes of

additional analysis and are not a required part of the basic financial statements. The accompanying

schedule of expenditures of passenger facility charges is presented for purposes of additional analysis

as specified in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal

Aviation Administration, and is not a required part of the basic financial statements of the County. The

accompanying schedule of receipts and expenditures of funds related to the Deepwater Horizons Oil Spill

is presented for the purpose of additional analysis as required by Florida Statute 288.8018 and the Rules

of the Auditor General, Chapter 10.557(3)(f), and is not a required part of the financial statements. Such

information is the responsibility of management and was derived from and relates directly to the

underlying accounting and other records used to prepare the basic financial statements. The information

has been subjected to the auditing procedures applied in the audit of the basic financial statements and

certain additional procedures, including comparing and reconciling such information directly to the

underlying accounting and other records used to prepare the basic financial statements or to the basic

financial statements themselves, and other additional procedures in accordance with auditing standards

generally accepted in the United States of America. In our opinion, combining financial statements and

nonmajor fund budgetary comparison schedules, the schedule of expenditures of federal awards and

state financial assistance, the schedule of expenditures of passenger facility charges and the schedule

of receipts and expenditures related to the Deepwater Horizons Oil Spill, are fairly stated in all material

respects in relation to the financial statements as a whole.

4

Other Information

Management is responsible for the other information included in the annual report. The other information

comprises the introductory and statistical sections but does not include the basic financial statements

and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other

information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other

information and consider whether a material inconsistency exists between the other information and the

basic financial statements, or the other information otherwise appears to be materially misstated. If,

based on the work performed, we conclude that an uncorrected material misstatement of the other

information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 29,

2023, on our consideration of the County’s internal control over financial reporting and on our tests of its

compliance with certain provisions of laws, regulations, contracts, and grant agreements and other

matters. The purpose of that report is solely to describe the scope of our testing of internal control over

financial reporting and compliance and the results of that testing, and not to provide an opinion on the

effectiveness of the County’s internal control over financial reporting or on compliance. That report is an

integral part of an audit performed in accordance with Government Auditing Standards in considering the

County’s internal control over financial reporting and compliance.

Fort Walton Beach, Florida

March 29, 2023

Okaloosa County, Florida

Management Discussion and Analysis

This discussion and analysis of Okaloosa County’s (the County) financial statements is designed to introduce the

basic financial statements and provide an analytical overview of the County’s financial activities for the fiscal year

ended September 30, 2022. This analysis, in conjunction with additional information provided in our letter of

transmittal, should assist readers in identifying significant financial issues and changes in the County’s financial

position. In this Management Discussion and Analysis (MD&A), all amounts, unless otherwise indicated, are

expressed in thousands of dollars.

Financial Highlights

 At the close of the fiscal year the County’s assets and deferred outflows exceeded its liabilities and deferred

inflows, resulting in a net position of $743,062. Governmental and business-type assets exceeded its

liabilities by $335,739 and $407,323, respectively.

 The County’s total net position increased by $76,143, or 11.4%, in comparison to the prior year.

 The County had $2,855 of unrestricted net position surplus at the close of this year compared to $4,252

last year.

 Total revenues decreased by $11,137, or 3.0 percent, from $375,339 to $364,202.

 Total expenses increased by $10,758, or 3.9 percent, from $277,302 to $288,060.

 The County’s governmental activities reported a total net position of $335,739, which is an increase of

$53,060, or 18.8%, in comparison to the prior year. A deficit in the unrestricted net asset position of

$(42,593) exists in the governmental activities.

 The County’s business-type activities reported a total net position of $407,323, which is an increase of

$23,083, or 6.0%, in comparison to prior year. Approximately 13.1% of the total, or $53,246, is unrestricted,

and thus available for spending at the County’s discretion.

 At the end of the current fiscal year, the net pension liability increased $62,618 for governmental funds and

$19,073 for business-type activities for an ending net pension liability of $128,221, an approximate increase

of 75.6% from the prior fiscal year end. These liabilities are actuarially determined and provided by the

State of Florida Retirement System (FRS). The change in the actuarial liability primarily relates to the weak

market performance of investments during the current year. The County’s actual contributions to FRS are

in the required supplementary information.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to Okaloosa County’s basic financial

statements. The County's basic financial statements are comprised of three components: 1) government-wide

financial statements, 2) fund financial statements, and 3) notes to the financial statements, as illustrated on the

following page. This report also contains other supplementary information in addition to the basic financial

statements themselves.

Government-wide financial statements

The government-wide financial statements are designed to provide readers with a broad overview of Okaloosa

County’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the County’s assets, deferred outflows, liabilities, and

deferred inflows, with the difference between the two reported as net position. Over time, increases or decreases

in net position may serve as a useful indicator of whether the financial position of the County is improving or

deteriorating.

The statement of activities presents information showing how the government’s net position changed during the

most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the

5

change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this

statement for some items that will result in cash flows in future fiscal periods.

Both of the government-wide financial statements distinguish functions of the County that are principally supported

by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover

all or a significant portion of their costs through user fees and charges (business-type activities). The governmental

activities of the County include general government, public safety, physical environment, transportation, economic

environment, human services, culture/recreation and court-related activity.

The business-type activities of the County include water/sewer services, airport services, solid waste

collection/disposal, building inspection services and emergency medical service.

Fund Financial Statements

The accounts of the County are organized on the basis of funds, each of which is considered a separate accounting

entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise

its assets, liabilities, net position, revenues, and expenditures or expenses, as appropriate. Government resources

are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and

the means by which spending activities are controlled.

The County’s funds are presented in separate fund financial statements. These funds are presented on

governmental fund financial statements, proprietary fund financial statements and a fiduciary fund financial

statement. The County’s major funds are presented in separate columns on the fund financial statements. The

definition of a major fund is one that meets certain criteria set-forth in GASB 34. The funds that do not meet the

criteria of a major fund are considered non-major funds and are combined into a single column on the fund financial

statements.

Governmental Fund Financial Statements

Governmental fund financial statements are prepared on the modified accrual basis using current financial

resources measurement focus. Under the modified accrual basis, revenues are recognized when they become

measurable and available as net current assets. Although the activity of the internal service funds is reported with

the governmental activities on the government-wide financial statements they are not combined on the government

fund financial statements.

Five of the County’s governmental funds, the General Fund, Tourist Development Special Revenue Fund, Natural

Disasters Fund, and the Road and Bridge Construction Capital Projects Fund, and Infrastructure Surtax Fund are

classified as major funds. All other governmental funds are combined into a single column on the governmental

fund financial statements. Individual fund data for the non-major funds is found in combining statements presented

as supplemental financial data.

The County adopts an annual budget for all governmental funds. A budgetary comparison has been presented for

all the governmental funds, which compares not only actual results to the budget but also the original adopted

budget to the final budget. These budgetary comparisons for the general fund and major special revenue funds are

presented as part of the required supplementary information. Non-major governmental fund budget comparisons

are presented as supplemental financial data.

6

Proprietary Fund Financial Statements

Proprietary fund financial statements, like government-wide financial statements, are prepared on the full accrual

basis. Proprietary funds record both operating and non-operating revenues and expenses. Operating revenues are

those that are obtained from the operations of the proprietary fund.

The County reports the Water and Sewer, Airport, Solid Waste, and Emergency Medical Services Enterprise as

major funds in the proprietary fund financial statements. These enterprise funds are used to present the same

functions that are presented in the government-wide financial statements. The other enterprise funds are grouped

together and reported in a separate column entitled, “Other Enterprise Funds”. The internal service funds are

combined into a single column on the proprietary fund financial statements. Individual fund data is presented in

combining statements as supplemental financial data.

The internal service funds are used to account for risk management, health, including other post-employment

benefits for retirees, dental and liability insurance, fleet management services and funding of short-term

compensated absence liability on a cost reimbursement basis.

Fiduciary Fund Financial Statement

Data shown on the fiduciary fund financial statement is not included in the government-wide financial statements

because the resources of those funds are not available to support the County’s programs. The only type of fiduciary

funds the County maintains, custodial funds, are used to account for assets held by the County as an agent for

individuals or other governments.

Notes to the Financial Statements

The notes to the financial statements provide additional information that is useful for a more complete understanding

of the data provided in the government-wide and fund financial statements.

Other information

In addition to the basic financial statements and accompanying notes, this report also presents certain required

supplementary information concerning Okaloosa County’s change in and contributions to pensions and other post-

employment benefits.

This report also presents combining statements for the non-major governmental and proprietary funds and agency

funds, as well as individual fund budgets and actual comparison schedules for non-major governmental funds.

Government-wide Financial Analysis

Over time, net position may serve as the most useful indicator of a government’s financial position, although a

number of significant estimates or long-term projections now impact that net position. As of September 30, 2022,

the County’s total net position or total assets less liabilities, was $743,062. A significant portion of the County’s net

position, 79.1 percent, is identified as an investment in capital assets (such as land, buildings, equipment,

infrastructure), less related debt outstanding that was used to acquire those assets. Since the County uses capital

assets to provide services to its residents, the net position represented by “net investment in capital assets” is not

available for future spending. In fact, the payment of maintenance and debt service costs on those capital assets

will themselves require governmental resources. The net investment in capital assets balance of $583,078

increased by $68,247 or 13.3 percent, in comparison to the prior year.

Another portion of the County’s net position is restricted net position which represents assets that are subject to

constraints such as by debt covenants, grantors, laws or regulations. The restricted net position balance of

$150,878 (20.3 percent of total net position) increased by $3,042 or 2.1 percent, in comparison to prior year, due

to increased funds related to capital projects which offset declines experienced in public safety and economic

environment.

7

Unrestricted net position is available to meet the County’s ongoing obligations to residents, creditors, and enterprise

fund customers. The County has an overall net unrestricted net position of $9,106 which is an increase of $4,854

from the prior year. This increase is primarily attributable to the use of restricted resources for transportation

projects in the governmental activities. The governmental activities overall net position increased by $53,060.

Although millage rates remained the same, property tax revenue increased due to rising taxable assessed values.

Operating grants and revenue decreased primarily from revenue received in the previous year for the CARES Act.

Net Position in the County’s Business-type activities increased by $23,083 due reductions in operating and capital

costs across all business-type funds. Unrestricted Net Position of $53,246 is available in the County’s Business-

type activities to meet ongoing obligations to its customers.

2022 2021 2022 2021 2022 2021

Current and Other Assets $300,702 $233,331 $188,590 $124,095 $489,292 $357,426

Capital Assets 307,207 272,474 396,992 367,563 704,199 640,037

Total Assets $607,909 $505,805 $585,581 $491,658 $1,193,490 $997,463

Total Deferred Outflows $26,509 $20,432 $10,038 $8,542 $36,547 $28,974

Current and Other Liabilities 69,537 53,681 26,925 19,602 96,462 73,283

Noncurrent Liabilities 205,827 128,095 94,729 75,008 300,556 203,103

Total Liabilities $275,364 $181,776 $121,654 $94,610 $397,018 $276,386

Total Deferred Inflows $23,315 $61,782 $66,642 $21,350 $89,957 $83,132

Net Position:

Net Investment in Capital Assets $246,725 $205,802 $336,353 $309,029 $583,078 $514,831

Restricted for

Debt Service - 324 4,837 4,797 4,837 5,121

Capital Projects 69,601 36,951 - - 69,601 36,951

Public Safety 662 232 - - 662 232

Transportation 11,100 26,362 12,887 15,664 23,987 42,026

Eco Environment 5,809 18,023 - - 5,809 18,023

Culture Recreation 43,496 42,416 - - 43,496 42,416

Court-Related 2,486 3,067 - - 2,486 3,067

Unrestricted (44,140) (50,498) 53,246 54,750 9,106 4,252

Total Net Position $335,739 $282,679 $407,323 $384,240 $743,062 $666,919

The following is a condensed summary of net position for the primary government for fiscal years 2022 and 2021.

Okaloosa County, Florida

Summary of Net Position

September 30, 2022 and 2021

Governmental Business-type Total

8

2022 2021 2022 2021 2022 2021

Revenues:

Program Revenues:

Charges for Services $50,788 $50,446 $89,630 $81,642 $140,418 $132,088

Operating Grants and Contributions 11,026 32,536 1,471 4,913 12,497 37,449

Capital Grants and Contributions 15,119 14,883 10,020 17,901 25,139 32,784

General Revenues:

Taxes 148,859 137,729 1 1 148,860 137,730

State Shared Revenue 36,999 32,076 - - 36,999 32,076

Grant and Contributions not

Restricted Specific Programs - - - - - -

Other (1,455) 2,745 1,746 467 291 3,212

Total Revenues 261,336 270,415 102,866 104,924 364,202 375,339

Expenses:

Program Activities:

General Government 44,214 39,954 - - 44,214 39,954

Public Safety 90,904 93,550 - - 90,904 93,550

Physical Environment 2,451 2,303 - - 2,451 2,303

Transportation 20,083 20,148 - - 20,083 20,148

Economic Environment 20,824 19,043 - - 20,824 19,043

Human Services 6,089 5,894 - - 6,089 5,894

Culture and Recreation 12,144 15,109 - - 12,144 15,109

Court-Related 9,970 9,442 - - 9,970 9,442

Interest and Fiscal Charges 2,370 2,368 - - 2,370 2,368

Business-type Activities:

Water and Sewer - - 31,578 31,106 31,578 31,106

Airport - - 19,983 15,291 19,983 15,291

Solid Waste - - 13,087 11,818 13,087 11,818

Emergency Medical - - 11,704 9,260 11,704 9,260

Other - - 2,659 2,015 2,659 2,015

Total Expenses 209,049 207,811 79,010 69,490 288,060 277,301

Inc in Net Position Before Trf 52,287 62,604 23,856 35,434 76,143 98,038

Transfers 773 1,999 (773) (1,999) - -

Inc/(Dec) in Net Position 53,060 64,603 23,083 33,435 76,143 98,038

Net Position October 1 282,679 218,076 384,240 350,805 666,919 568,881

Net Position September 30 $335,739 $282,679 $407,323 $384,240 $743,062 $666,919

Activities Total

Okaloosa County, Florida

Summary of Revenues and Expenses

For the Year Ending September 30, 2022 and 2021

Governmental Business-type

Activities

Revenues decreased by $9,079 or 3.4 percent in governmental activities, primarily due to a decrease in operating

grants and contributions and in unrealized losses on long-term investments. The decrease in operating grants and

contributions is directly related to the funding received in 2021 from the federal government through the Coronavirus

Aid, Relief, and Economic Security (CARES) Act. The unrealized losses on investments can be attributed to the

economic environment that existed as of September 30, 2022. Revenues in business-type activity decreased by

$2,058 or 2.0 percent from the prior year. The cause for the decrease is the same as the decreases that impacted

the governmental activities revenue.

9

Expenses increased by $1,238 or 0.6 percent in governmental activities, primarily due to increased general

government expenses as the economy continues to its recovery from the impact of the COVID-19 pandemic,

coupled with a decrease in public safety expenses tied to the CARES Act. Expenses increase by $9,520 or 13.7

percent in business-type expenses due mainly to increase in personnel costs, which included salary increases for

all positions and an increase in the required employer contribution to the Florida Retirement System (FRS). Overall

net position increased by 11.4 percent, from $666,919 in 2021 to $743,062 in 2022.

Governmental activities

The focus of Okaloosa County governmental funds is to provide information on near-term inflows, outflows, and

balances of spendable resources. Such information is useful in assessing the County’s financing requirements.

Unreserved fund balance may serve as a useful measure of a government’s net resources available for spending

at fiscal year-end.

As of September 30, 2022, the County governmental funds reported combined fund balances of $216,444, an

increase of $35,871 over the prior year balances, mainly related to an excess of revenue over expenses related to

tax revenue and transfers in from other financing sources.

The General Fund is the chief operating fund of the County. As of September 30, 2022, total fund balance in the

general fund was $37,231 of which $36,150 was unassigned. The general fund revenues for the fiscal year

exceeded expenses by 5,347. The increase in the current fiscal year fund balance was primarily due to increased

property tax revenues.

The Tourist Development Special Revenue Fund is used to account for the revenues and expenditures collected

on short-term rentals in Okaloosa County. The Tourist Development Special Revenue Fund balance increased over

the prior year by $7,789. The increase in fund balance is primarily due to tax revenues exceeding expenditures and

the expansion of the taxing district. The Tourist Development Special Revenue Fund experienced modest revenue

increases while maintaining expenses in line from prior fiscal year.

The Natural Disaster Fund is typically used to account for disaster funding and expenditures not considered normal

recurring operating activity of the County. In 2022, the Natural Disaster Fund was also used to account for the

governmental activities portion of the federal funds collected and disbursed pursuant to the Coronavirus Aid, Relief

and Economic Security Act (the CARES Act) and the American Rescue Plan (ARPA) Act. The fund balance

increased over the prior year by $741 due primarily to the recognition of FEMA funds related to natural disasters.

The Road and Bridge Construction Capital Projects Fund is the construction fund that is used to account for major

governmental capital improvements. The fund balance decreased over the prior year by $9,564 due primarily to the

construction costs associated with the southwest Crestview bypass.

The Infrastructure Surtax Fund is the capital project fund that is used to account for major governmental capital

improvements paid for utilizing the one-half cent surtax approved by the citizens of the County. The fund balance

increased over the prior year by $12,767 due primarily to the limited availability of construction materials and labor

following the COVID-19 pandemic.

10

The following is a chart of all Governmental Fund Balances for the fiscal years 2022 and 2021.

$36,755

$67,724

($562)

$30,953

$43,248

$37,849

$29,442

$59,908

($1,302)

$40,517

$30,481

$21,527

($20,000)

$0

$20,000

$40,000

$60,000

$80,000

General Tourist

Development

Natural Disaster Road & Bridge Infrastructure

Surtax

Other

Governmental Fund Balance Comparison

2022 2021

$148,859

$631

$48,931

$29,118

$1,305

$12,434

$137,729

$617

$75,476

$30,714

$1,132

$8,907

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Taxes L&P Intgovt Chgs Fines Misc

Governmental Revenues By Source Comparison

2022 2021

$37,427

$74,093

$2,028

$14,514

$19,328

$5,391

$8,958

$9,317

$49,894

$5,681

$34,787

$85,730

$1,972

$15,303

$18,107

$5,285

$12,183

$9,370

$36,406

$6,218

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Gen Govt Pub Saf Phys Env Trans Econ Env Fum Svc Cult &

Rec

Crt-Rltd Cap

Outlay

Debt

Governmental Expenditures By Function Comparison

2022 2021

11

Proprietary Activities

Okaloosa County’s proprietary funds provide the same type of information found in the government- wide financial

statements, but in more detail, and on a fund basis for the enterprise funds and internal service funds.

Enterprise Funds at September 30, 2022, total net position amounted to $407,323 as compared to $384,240 at

September 30, 2021. Net Position balances are primarily the result of operations and capital contributions in the

Water & Sewer and Airport Enterprise funds.

Business-type activities increased the County’s total net position by $23,082. Major components of this increase

are as follows:

 The Water and Sewer Fund increased its net position by $10,168, or 5.3% to $202,969. Net operating

income was $12,085 during the year which increased 16.4% more than last year primarily due to increases

in charges for services. The overall increase in net position for the current year relates primarily to

investment in capacity expansion related to construction activity.

 The Airport Fund increased its net position by $9,952, or 5.4% to $190,856. The Airport experienced an

increase in operating revenues due to the pandemic recovery. The operating revenues increased $3,682

or 22.1% more the prior year. Capital contributions declined 42.0% from the prior year. These factors along

with prior consecutive years of financial strength contributed to the overall change in net position.

 The Solid Waste Fund increased its net position by $1,444, or 129.2% to $6,391. The Solid Waste had a

decrease in operating expenditures of $1,269, or 10.7% due to decrease in net pension liability of $827

from the prior year.

 The Emergency Medical Services Fund increased its net position by $647, or 135.8% to $2,454. The most

significant factor in this increase was an increase in operating revenues related to charges for services.

The net operating income of the enterprise funds for fiscal years 2022 and 2021, is as follows:

2

022 2021

Water and Sewer $12,085 $10,351

Airport 336 1,903

Solid Waste 1,334 2,724

Inspections 844 1,709

Emergency Medical Services (1,332) (1,381)

Tax Collector Building Maintenance 44 47

$13,311 $15,353

Enterprise Net Operating Income (Loss)

12

Budgetary Highlights

A Budget to actual statement is provided for the General Fund, along with each of the other major special revenue

funds as part of the required supplementary information. A budget column for both the original budget adopted for

fiscal year 2022 as well as the final budget is presented.

Differences between the original budget and final amended budget are as follows:

● The County added budgeted revenue in the General Fund of approximately $20,488 of which $18,681

related to intergovernmental revenue because of anticipated state and federal grants related to public safety,

housing assistance, and mass transit funds.

● The County added budgeted revenue in the Natural Disasters Fund of approximately $40,784 related to

intergovernmental revenue because of anticipated federal grants related to the CARES act and the American

Rescue Plan Act (ARPA) of 2021.

● The County added budget expenditures in the General Fund of approximately $428,492, most significantly

in the areas of transportation, public safety, and capital outlay because of anticipated grant activity related

to both the CARES Act and ARPA.

Actual results, when compared to the final budget, are as follows:

● A variance in the General Fund of $5,317 of actual revenues under anticipated budget amounts as the grant

revenue anticipated was both not earned and unavailable in the current year based on the timing of both

qualifying expenditures and the availability of funds received.

● A variance in the Natural Disasters Fund of $38,021 of actual revenues under anticipated budget amounts

as the grant revenue anticipated was both not earned and unavailable in the current year based on the timing

of both qualifying expenditures and the availability of funds received.

● A variance in the General Fund of $34,684 of actual expenditures under anticipated budget amounts due to

the timing of grant related expenditures and various capital projects that were not complete as of the end of

the fiscal year.

● A variance in the Natural Disasters Fund of $39,691 of actual expenditures under anticipated budget

amounts due to the timing of grant-related expenditures and various capital projects that were not complete

as of the end of the fiscal year.

● A variance of $4,966 in the General Fund, other financing uses, related to transfers out and transfers among

constitutional officers being less than anticipated in addition to new debt issuances.

$3,001

$105,161

$1,438

$3,120

$92,993

$1,809

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Licenses & Permits Charges for Services Miscellaneous

Proprietary Fund Operating Revenue By Source

Comparison

2022 2021

13

Capital Asset and Debt Administration

Capital Assets. Okaloosa County’s investment in capital assets for its governmental and business- type activities

as of September 30, 2022, amounts to $704,199 (net of accumulated depreciation). This investment in capital

assets includes land, buildings, roads, bridges and other improvements, machinery and equipment and park

facilities. The increase in Okaloosa County’s governmental activities, investment in capital assets, for the current

fiscal year amounted to $34,711 or 12.7 percent increase, which was mainly due to the construction in progress

related to transportation and road improvements. The business-type activities capital assets increased to $22,864,

mainly due to the water and sewer infrastructure and airport baggage handling system.

2022 2021 2022 2021 2022 2021

Land $18,890 $17,299 $14,765 $14,765 $33,655 $32,064

Buildings 154,530 142,620 103,807 89,642 258,337 232,262

Improvements other than buildings 58,024 51,097 277 277 58,301 51,374

Intangibles 3,560 3,528 932 932 4,492 4,460

Mach/Equipment/Right to Use 67,773 68,509 35,197 26,865 102,970 95,374

Const in Progress 59,708 39,491 39,745 24,729 99,453 64,220

Infrastructure 177,311 174,374 441,287 435,156 618,598 609,530

Art 29 29 70 70 99 99

Total Capital Assets 539,825 496,947 636,080 592,436 1,175,905 1,089,383

Accum Deprec (232,618) (224,472) (239,088) (224,872) (471,706) (449,344)

Total $307,207 $272,475 $396,992 $367,564 $704,199 $640,039

Activities Total

The following schedule compares capital assets for the primary government for the current and previous fiscal years:

Okaloosa County, Florida

Capital Assets

September 30, 2022 and 2021

Governmental Business-type

Activities

Additional information on Okaloosa County’s capital assets can be found in notes to the financial statements (Note

6).

14

Long-term debt. At the end of the current fiscal year, the primary government, Okaloosa County, had bonded and

revolving loans for total long-term debt outstanding of $153,433. Of this amount, $97,266 comprises governmental

activities while the remaining $56,167 is secured by revenue bonds and revolving loans in business-type activities.

2022 2021 2022 2021 2022 2021

Capital Lease $271 $68 $- $- $271 $68

Revenue Bonds 74,950 78,098 53,492 57,303 128,442 135,401

Revolv & Comm Loan 22,320 2,480 2,219 2,675 24,539 5,155

Total $97,541 $80,646 $55,711 $59,978 $153,252 $140,624

Total

Additional information on Okaloosa County’s long-term debt can be found in notes to the financial statements (Note 11).

Okaloosa County, Florida

Outstanding Debt

September 30, 2022 and 2021

Governmental Business-type

Activities Activities

Type of Debt Issue: S & P Fitch/Moody’s

2011 Capital Improvement Revenue Bonds Not rated Not rated

2014 Sales Tax Revenue Bonds AA AA

2016 Sales Tax Revenue Bonds AA AA

2015 Water and Sewer Revenue Bonds AA+ Aa3

2019 Sales Tax Refunding and Improvement Revenue Bonds AA AA

Highest rating: AAA/Aaa

Lowest rating: C

Okaloosa County, Florida, Debt Ratings at September 30, 2022

Investment grade ratings: AAA/Aaa through BBB-/Baa-

15

Economic Factors

Local, national, and international economic factors influence the County’s revenues in a variety of ways. Positive

economic growth is correlated with increased revenues from property taxes, state sales taxes, fuel taxes, charges

for services, state revenue sharing as well as state and federal grants, while negative economic growth generally

has the opposite reaction. Economic growth may be measured by a variety of indicators such as employment

growth, unemployment, new construction and assessed values, diversification of the property tax base, and

Enterprise Fund revenue and net asset growth.

 U.S. Department of Labor and Florida Department of Economic Opportunity reported that Okaloosa

County's labor force has increased from 98,426 to 102,501 as of December 2022, an increase of 4.1

percent. The increasing labor force coupled with the recovery of COVID-19 pandemic led to the County’s

unemployment rate to 2.0 percent in 2022 compared to 2.2 percent for 2021. The County’s unemployment

rate remains favorable compared to the state and national rates of 2.3 and 3.5 percent, respectively for

2022.

 The assessed value of real property located in the County increased from $20.186 billion to $23.135 billion

in 2022, while the total assessed value of the County increased from $21.104 billion to $24.097 billion in

2022. This represented an increase of $1.306 billion or 6.6 percent in property valuation.

 Okaloosa County has a diversified property tax base. The ten largest property taxpayers in the County

represent only 1.35 percent of the total ad valorem property tax levy.

More information on economic factors is provided in the Statistical Section.

Request for information

This financial report is designed to provide the reader an overview of the County. Questions regarding any

information provided in this report should be directed to:

Finance Department

101 East James Lee Blvd.

Crestview, Florida, 32536.

16

OKALOOSA COUNTY, FLORIDA

STATEMENT OF NET POSITION

SEPTEMBER 30, 2022

See notes to the financial statements.

17

Government Business-Type

Activities Activities Total

ASSETS

Cash and cash equivalents 17,388,109$ 7,667,543$ 25,055,652$

Investments 191,723,809 84,947,224 276,671,033

Receivables, net of allowance for uncollectibles 19,189,910 11,882,249 31,072,159

Lease receivable 21,168,309 55,424,307 76,592,616

Internal balances 404 (404) -

Due from (to) fiduciary funds 234,450 - 234,450

Due from other governments 11,822,515 4,418,002 16,240,517

Inventories 799,290 2,458,778 3,258,068

Prepaid items 1,301,186 2,001,979 3,303,165

Restricted assets:

Cash and cash equivalents

Customer deposits - 1,441,494 1,441,494

Other deposits - 1,587,344 1,587,344

Investments 37,074,092 16,761,053 53,835,145

Capital assets

Non-depreciable/amortizable 79,773,742 54,579,873 134,353,615

Depreciable/amortizable, net 227,433,619 342,411,859 569,845,478

TOTAL CAPITAL ASSETS

307,207,361 396,991,732 704,199,093

TOTAL ASSETS 607,909,435$ 585,581,301$ 1,193,490,736$

DEFERRED OUTFLOWS OF RESOURCES

Deferred charges related to pensions 25,043,222$ 8,821,299$ 33,864,521$

Deferred charges on refunding - 1,139,647 1,139,647

Deferred charges related to OPEB 1,465,750 77,524 1,543,274

TOTAL DEFERRED OUTFLOWS OF

RESOURCES 26,508,972 10,038,470 36,547,442

TOTAL ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES 634,418,407$ 595,619,771$ 1,230,038,178$

Primary Government

OKALOOSA COUNTY, FLORIDA

STATEMENT OF NET POSITION – CONTINUED

SEPTEMBER 30, 2022

See notes to the financial statements.

18

Government Business-Type

Activities Activities Total

LIABILITIES

Accounts payable and other accrued liabilities 12,932,197$ 16,669,914$ 29,602,111$

Due to other governments 1,313,393 55,154 1,368,547

Unearned revenue 42,824,010 2,222,946 45,046,956

Due to depositors 103,979 - 103,979

Liabilities payable from restricted assets

Customer deposits - 1,458,264 1,458,264

Interest payable 1,547,190 597,149 2,144,339

Current portion of long-term obligations

Compensated absences 3,483,879 1,015,793 4,499,672

Financed purchases 191,499 - 191,499

Closure costs payable - 391,714 391,714

Claims and judgments 2,021,696 - 2,021,696

Lease contracts 4,462 529,256 533,718

Notes payable 2,742,000 469,539 3,211,539

Revenue bonds payable 2,373,000 3,515,000 5,888,000

TOTAL CURRENT LIABILITIES

69,537,305 26,924,729 96,462,034

Noncurrent portion of long-term obligations

Compensated absences 4,308,079 812,252 5,120,331

Closure costs payable - 1,664,619 1,664,619

Claims and judgments 4,046,000 - 4,046,000

Financed purchases 77,795 - 77,795

Lease agreements 12,396 5,689,591 5,701,987

Notes payable 19,578,000 1,749,140 21,327,140

Bonds payable, net 72,577,367 49,977,852 122,555,219

Other post employment benefits 10,543,983 1,298,646 11,842,629

Net pension liability 94,683,307 33,537,291 128,220,598

TOTAL NONCURRENT LIABILITIES 205,826,927

94,729,391 300,556,318

TOTAL LIABILITIES

275,364,232$ 121,654,120$ 397,018,352$

DEFERRED INFLOWS OF RESOURCES

Deferred charges related to Pensions 5,310,829$ 2,076,879$ 7,387,708$

Deferred charges related to OPEB 2,077,883 411,091 2,488,974

Deferred charges related to leases 15,926,376 53,965,699 69,892,075

Unavailable revenue - 10,188,662 10,188,662

TOTAL DEFERRED INFLOWS OF RESOURCES

23,315,088$ 66,642,331$ 89,957,419$

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

STATEMENT OF NET POSITION – CONTINUED

SEPTEMBER 30, 2022

See notes to the financial statements.

19

Government Business-Type

Activities Activities Total

NET POSITION

Invested in in capital assets 246,724,934$ 336,352,845$ 583,077,779$

Restricted for:

Debt service - 4,836,997 4,836,997

Capital outlay 69,600,862 - 69,600,862

Public safety 661,752 - 661,752

Transportation 11,099,977 12,887,089 23,987,066

Economic environment 5,808,992 - 5,808,992

Culture and recreation 43,496,482 - 43,496,482

Court-related 2,485,784 - 2,485,784

Unrestricted (deficit) (44,139,696) 53,246,389 9,106,693

TOTAL NET POSITION (DEFICIT) 335,739,087$ 407,323,320$ 743,062,407$

TOTAL LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND NET POSITION 634,418,407$ 595,619,771$ 1,230,038,178$

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

20

Net (Expense) Revenue and

Operating Capital

Charges for Grants and Grants and Governmental Business-Type

Expenses Services Contributions Contributions Activities Activities Total

PRIMARY GOVERNMENT

Governmental activities

General government 44,214,204$ 25,513,124$ 1,062,639$ -$ (17,638,441)$ -$ (17,638,441)$

Public safety 90,904,245 15,115,403 3,610,404 1,133,944 (71,044,494) - (71,044,494)

Physical environment 2,450,831 10,252 35,600 70,960 (2,334,019) - (2,334,019)

Transportation 20,082,901 1,529,772 4,039,718 13,675,377 (838,034) - (838,034)

Economic environment 20,823,826 - 876,736 - (19,947,090) - (19,947,090)

Human services 6,089,434 - 26,188 - (6,063,246) - (6,063,246)

Culture and recreation 12,143,848 1,201,471 71,793 239,009 (10,631,575) - (10,631,575)

Court-related 9,970,203 7,418,033 1,302,540 - (1,249,630) - (1,249,630)

Interest and fiscal charges 2,369,936 - - - (2,369,936) - (2,369,936)

TOTAL GOVERNMENTAL ACTIVITIES

209,049,428 50,788,055 11,025,618 15,119,290 (132,116,465) - (132,116,465)

Business-type activities

Water & sewer 31,578,104 40,977,949 343,268 68,240 - 9,811,353 9,811,353

Airport 19,982,783 20,318,557 871,260 9,951,314

- 11,158,348 11,158,348

Solid waste 13,086,563 14,420,231 217,104 - - 1,550,772 1,550,772

Emergency medical services 11,703,554 10,365,368 39,329 - - (1,298,857) (1,298,857)

Inspection and code enforcement 2,659,211 3,503,373 - - - 844,162 844,162

Tax collector building maintenance - 44,061 - - - 44,061 44,061

TOTAL BUSINESS-TYPE ACTIVITIES

79,010,215 89,629,539 1,470,961 10,019,554 - 22,109,839 22,109,839

TOTAL PRIMARY GOVERNMENT

288,059,643$ 140,417,594$ 12,496,579$ 25,138,844$ (132,116,465) 22,109,839 (110,006,626)

General revenues

Taxes:

Ad valorem tax 80,782,138 523 80,782,661

Tourist development tax 36,875,379 - 36,875,379

Local option fuel tax 6,520,621 - 6,520,621

Communication services tax 1,366,516 - 1,366,516

Ninth-cent voted fuel tax 1,238,295 - 1,238,295

Local business tax 306,309 - 306,309

Infrastructure surtax 21,769,843 - 21,769,843

State revenue sharing:

Miscellaneous tax revenue 9,375,926 - 9,375,926

Local government sales tax 23,312,686 - 23,312,686

Gas tax 4,310,178 - 4,310,178

Investment earnings (loss) (4,668,649) (599,645) (5,268,294)

Gain on disposal of capital assets 469,808 558,172 1,027,980

Miscellaneous 2,743,927 1,787,305 4,531,232

Transfers - internal activities 773,243 (773,243) -

TOTAL GENERAL REVENUES AND TRANSFERS

185,176,220 973,112 186,149,332

CHANGE IN NET POSITION

53,059,755 23,082,951 76,142,706

NET POSITION - BEGINNING

282,679,332 384,240,369 666,919,701

NET POSITION - ENDING

335,739,087$ 407,323,320$ 743,062,407$

Program Revenues Changes in Net Position

Primary Government

OKALOOSA COUNTY, FLORIDA

BALANCE SHEET

GOVERNMENTAL FUNDS

SEPTEMBER 30, 2022

See notes to the financial statements.

21

Tourist Road and

Development Bridge

Special Natural Construction Infrastructure Other Total

General Revenue Disasters Capital Surtax Governmental Governmental

Fund Fund Fund Projects Fund Fund Funds Funds

ASSETS

Cash and cash equivalents 7,933,069$ 39,416$ 238,137$ 60,864$ 341,030$ 6,816,494$ 15,429,010$

Investments 30,731,210 65,305,822 37,817,997 12,718,496 39,795,443 37,702,730 224,071,698

Accounts receivable 196,251 72,789 - 18,815,689 - 97,851 19,182,580

Lease receivable 16,402,809 - - - - - 16,402,809

Due from other funds 105,858 1,000,000 - 500,000 2,000,000 1,452,150 5,058,008

Due from other elected officials 3,312,856 3,957,880 - - - 205,982 7,476,718

Due from other governments 6,739,947 133,117 494,363 1,067,675 1,742,860 1,528,268 11,706,230

Inventory 81,613 344 3,364 161,154 26,869 280,383 553,727

Prepaids 765,661 40,296 - - - 30,523 836,480

TOTAL ASSETS

66,269,274$ 70,549,664$ 38,553,861$ 33,323,878$ 43,906,202$ 48,114,381$ 300,717,260$

OKALOOSA COUNTY, FLORIDA

BALANCE SHEET – CONTINUED

GOVERNMENTAL FUNDS

SEPTEMBER 30, 2022

See notes to the financial statements.

22

Tourist Road and

Development Bridge

Special Natural Construction Infrastructure Other Total

General Revenue Disasters Capital Surtax Governmental Governmental

Fund Fund Fund Projects Fund Fund Funds Funds

LIABILITIES, DEFERRED INFLOW

AND FUND BALANCES

LIABILITIES

Accounts payable 1,185,431$ 1,305,791$ -$ 228,262$ 144,369$ 438,170$ 3,302,023$

Contracts payable 1,040,147 834,763 446,039 2,142,845 507,513 875,152 5,846,459

Other accrued liabilities 2,395,959 109,090 - - 6,502 633,965 3,145,516

Due to other funds 263,823 - - - - 4,273,850 4,537,673

Due to other elected officials 6,748,278 198,396 - - - 328,738 7,275,412

Due to other governments 637,834 210,051 - - - 465,508 1,313,393

Due to depositors 28,839 932 - - - 72,842 102,613

Unearned revenue 811,312 166,705 38,669,420 - - 3,176,573 42,824,010

TOTAL LIABILITIES

13,111,623 2,825,728 39,115,459 2,371,107 658,384 10,264,798 68,347,099

DEFERRED INFLOWS OF RESOURCES

Lease receivable 15,926,376 - - - - - 15,926,376

FUND BALANCE

Nonspendable 847,274 40,640 3,364 161,154 26,869 310,906 1,390,207

Restricted - 67,683,296 - 30,791,617

43,220,949 29,097,041 170,792,903

Committed 234,173 - - - - 761,875 996,048

Assigned 4,108,600 - - - - 7,755,282 11,863,882

Unassigned 32,041,228 - (564,962) - - (75,521) 31,400,745

TOTAL FUND BALANCES

37,231,275 67,723,936 (561,598) 30,952,771 43,247,818 37,849,583 216,443,785

TOTAL LIABILITIES, DEFERRED

INFLOW OF RESOURCES AND

FUND BALANCES

66,269,274$ 70,549,664$ 38,553,861$ 33,323,878$ 43,906,202$ 48,114,381$ 300,717,260$

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION

SEPTEMBER 30, 2022

See notes to the financial statements.

23

Fund balances - total governmental funds 216,443,785$

Amounts reported for governmental activities in the statement of net position

are different because:

Capital assets used in governmental activities are not financial resources and

therefore are not reported in the governmental funds. The difference does not

include the net capital assets of the internal service fund accounted for separately.

Those assets consist of:

Governmental nondepreciable/ amortizable asset 79,456,881

Governmental depreciable/ amortizable assets 457,209,343

Less accumulated depreciation/ amortization (230,096,517)

306,569,707

Internal service funds are used by management to charge the costs of certain activities,

such as insurance, compensated absences and fleet maintenance, to individual funds

the assets and liabilities of the internal service funds are included in governmental

activities in the statement of net position. Internal service fund net position are: (4,303,199)

Deferred outflows and inflows of resources related to pensions and other

postemployment benefits are applicable to future periods and not reported in

governmental funds the difference does not include the internal service fund,

which is included above

Deferred outflows of resources - pensions 24,406,959

Deferred inflows of resources - pensions (5,058,781)

Deferred outflows of resources - OPEB (187,218)

Deferred inflow of resources - OPEB (1,631,509)

17,529,451

Long- term liabilities, including bonds payable, are not due and payable

in the current period and therefore are not reported in the governmental funds,

but rather is recognized as an expenditure when due. The difference does

not include the compensated absences or OPEB liabilities of the internal

service funds accounted for separately. All liabilities, both current and long-

term are reported in the statement of net position.

Balances at September 30, 2022, are:

Accrued interest on bonds (1,547,190)

Revenue bonds payable (74,950,367)

Notes payable (22,320,000)

Financed purchases (269,294)

Lease agreements (16,858)

Compensated absences (5,965,983)

Other post-employment benefits (3,070,203)

Net pension liability, proportionate share (92,360,762)

Total long-term liabilities (200,500,657)

Net position of governmental activities 335,739,087$

OKALOOSA COUNTY, FLORIDA

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

24

Tourist Road and

Development Bridge

Special Natural Construction Infrastructure Other Total

General Revenue Disasters Capital Surtax Governmental Governmental

Fund Fund Fund Projects Fund Fund Funds Funds

REVENUES

Taxes 77,204,298$ 36,875,379$ -$ 2,262,673$ 21,769,843$ 10,746,908$ 148,859,101$

Licenses and permits 25,500 - - - - 605,980 631,480

Intergovernmental 37,368,185 159,607 2,766,334 2,994,749 - 5,641,984 48,930,859

Charges for services 21,291,578 862,330 - - - 6,963,939 29,117,847

Fines 100,722 - - - - 1,203,991 1,304,713

Investment income (loss) (1,006,662) (1,860,312) (3,171) (697,201) (438,066) (636,649) (4,642,061)

Miscellaneous 3,652,707 3,581 12,681,316 236,444 978,744 17,552,792

Total revenues 138,636,328 36,040,585 2,763,163 17,241,537 21,568,221 25,504,897 241,754,731

EXPENDITURES

Current

General government 35,943,698 - - - - 1,247,599 37,191,297

Public safety 72,706,102 - 6,044 - - 1,380,889 74,093,035

Physical environment 864,860 - - - - 1,163,625 2,028,485

Transportation 3,579,055 - - 1,821,542 158,049 8,955,234

14,513,880

Economic environment 3,040,147 16,004,790 7,379 - - 275,332 19,327,648

Human services 4,789,053 - - - - 601,661 5,390,714

Culture and recreation 3,072,666 4,612,027 - - - 1,272,828 8,957,521

Court-related 3,287,746 - - - - 6,028,994 9,316,740

Capital outlay 5,983,020 4,295,242 2,009,091 25,201,899 7,368,429 5,428,584 50,286,265

Debt service

Principal 22,351 - - 174,400 - 2,401,000 2,597,751

Interest 598 - - - - 3,318,821 3,319,419

Other debt service costs - - - - - 1,913 1,913

Total expenditures 133,289,296 24,912,059 2,022,514 27,197,841 7,526,478 32,076,480 227,024,668

OKALOOSA COUNTY, FLORIDA

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

25

Tourist Road and

Development Bridge

Special Natural Construction Infrastructure Other Total

General Revenue Disasters Capital Surtax Governmental Governmental

Fund Fund Fund Projects Fund Fund Funds Funds

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

5,347,032$ 11,128,526$ 740,649$ (9,956,304)$ 14,041,743$ (6,571,583)$ 14,730,063$

OTHER FINANCING SOUCES (USES)

Transfers in 7,850,562 - - - - 7,347,735 15,198,297

Transfers out (6,462,258) (3,312,494) - - (1,274,878) (3,375,424) (14,425,054)

Transfers among constitutional officers 778,841 - 2 - - (778,843) -

Issuance of debt 275,000 - - 392,400 - 19,700,000 20,367,400

Total other financing sources (uses) 2,442,145 (3,312,494) 2 392,400 (1,274,878) 22,893,468 21,140,643

NET CHANGE IN FUND BALANCE

7,789,177 7,816,032 740,651 (9,563,904) 12,766,865 16,321,885 35,870,706

FUND BALANCES - BEGINNING

25,333,498 59,907,904 (1,302,249) 40,516,675 30,480,953 21,527,698 176,464,479

FUND BALANCES - ENDING

33,122,675$ 67,723,936$ (561,598)$ 30,952,771$ 43,247,818$ 37,849,583$ 212,335,185$

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

GOVERNMENTAL FUNDS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

26

Net change in fund balances - total governmental funds 35,870,706$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds do not report capital assets on the balance sheet; however, they are

reported in the government-wide financial statements. Governmental funds report capital outlays

as expenditures; however, in the statement of activities, the cost of those assets is depreciated

or amortized over the estimated useful lives of the assets.

Expenditures for capital assets 50,286,265

Less current year depreciation/ amortization (15,581,539)

34,704,726

Governmental funds do not report capital assets on the balance sheet; however, they are reported

in the government- wide financial statements. Accordingly, proceeds received from disposals of

capital asset are shown as income in the governmental financial statements and a gain or loss is

reported in the statement of activities. In addition, capital asset reassignments are reported as

transfers in the statement of activities. 38,597

Revenues that provide current financial resources are reported as revenue in the funds but

as revenue in the statement of activities when earned. (250)

The issuance of long-term debt provides current financial resources to the governmental fund, while

the repayment of principal of long-term debt consumes the current financial resources of governmental

funds. Neither transaction, however, has any effect on the net position. Also, governmental funds

report the effect of premiums or discounts and similar items when debt is first issued, whereas

these amounts are deferred and amortized in the statement of activities. In addition, long-term

debt reassignments are reported as transfers on the statement of activities.

Debt proceeds (20,367,400)

Debt principal payments 2,595,911

Amortization of premiums/ discounts 882,119

(16,889,370)

Some expenses reported in the statement of activities do not require the use of current financial

resources and therefore are not reported as expenditures in governmental funds:

Compensated absences (234,038)

Other post employment benefits (1,090,232)

Changes in accrued interest on long term debt 71,118

(1,253,152)

Governmental funds report County pension contributions as expenditures. In the statement of cost

of the pension benefits earned net of contributions is reported as pension expense.

Difference between pension contribution and net pension expense (1,830,024)

Internal service funds are used by the County to charge the costs of certain activities, such as

insurance, compensated absences and fleet maintenance to individual funds, the net revenue or

expense of the internal service funds is reported with governmental activities. 2,418,522

Change in net position of governmental activities 53,059,755$

OKALOOSA COUNTY, FLORIDA

STATEMENT OF NET POSITION – PROPRIETARY FUNDS

SEPTEMBER 30, 2022

See notes to the financial statements.

27

Water and Governmental

Sewer Airport Solid

EMS

Other Activities

Enterprise Enterprise Waste

Enterprise

Enterprise Internal

Fund Fund Fund

Fund

Funds

Total

Service Funds

ASSETS

Current assets

Cash and cash equivalents 229,598$ 2,455,432$ 2,344,545$ 1,248,089$ 1,389,879$ 7,667,543$ 1,959,099$

Investments 43,291,725 18,351,860 9,597,340 8,997,733 4,708,566 84,947,224 4,726,203

Receivables, net of allowance

for uncollectible 3,845,645 3,859,038 865,824 3,288,422 23,320 11,882,249 7,330

Due from other funds - - - - - - 1,263,823

Due from other elected officials - - - 60 - 60 1,510

Due from other governments 1,427,838 2,954,639 35,525 - - 4,418,002 116,285

Amounts held by others for benefits - - - - - - 4,765,500

Inventory 2,122,695 115,151 - 220,932 - 2,458,778 245,563

Prepaids 616,558 1,380,301 - 2,768 2,352 2,001,979 464,706

Restricted assets

Cash and cash equivalents

Customer deposits 1,412,986 - 28,508 - - 1,441,494 -

Other deposits 1,587,344 - -

- - 1,587,344 -

Investments 3,870,572 12,890,481 - - - 16,761,053 -

Total restricted assets 6,870,902 12,890,481 28,508 - - 19,789,891 -

Total current assets 58,404,961 42,006,902 12,871,742 13,758,004 6,124,117 133,165,726 13,550,019

Other assets

Lease receivable 145,202 55,279,105 - - - 55,424,307 -

Capital assets, net

Non-depreciable/amortizable 28,365,565 26,081,007 133,301 - - 54,579,873 316,861

Depreciable/amortizable, net 193,772,892 146,329,494 715,737 1,488,635 105,101 342,411,859 320,793

Total capital assets (Net of accumulated

depreciation/ amortization) 222,138,457 172,410,501 849,038 1,488,635 105,101 396,991,732 637,654

TOTAL ASSETS 280,688,620 269,696,508 13,720,780 15,246,639 6,229,218 585,581,765 14,187,673

DEFERRED OUTFLOWS OF

RESOURCES

Deferred charges related to pensions 3,324,497 1,389,302 353,441 3,449,036 305,023 8,821,299 636,263

Deferred charges on refunding 1,139,647 - - - 1,139,647 -

Deferred charges related to OPEB 31,176 8,480 3,392 31,111 3,365 77,524 1,652,968

TOTAL DEFERRED OUTFLOWS

OF RESOURCES

4,495,320$ 1,397,782$ 356,833$ 3,480,147$ 308,388$ 10,038,470$ 2,289,231$

TOTAL ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES 285,183,940$ 271,094,290$ 14,077,613$ 18,726,786$ 6,537,606$ 595,620,235$ 16,476,904$

Business-Type Activities

OKALOOSA COUNTY, FLORIDA

STATEMENT OF NET POSITION – PROPRIETARY FUNDS – CONTINUED

SEPTEMBER 30, 2022

See notes to the financial statements.

28

Water and Governmental

Sewer Airport Solid

EMS

Other Activities

Enterprise Enterprise Waste

Enterprise

Enterprise Internal

Fund Fund Fund

Fund

Funds

Total

Service Funds

LIABILITIES

Current liabilities

Accounts payable 933,261$ 1,496,840$ 82,664$ 70,224$ 7,560$ 2,590,549$ 355,224$

Contracts payable 1,127,576 8,174,943 3,855,909 99,584 7,527 13,265,539 223,426

Compensated absences 514,828 101,118 52,689 199,218 147,940 1,015,793 1,766,087

Closure cost payable - - 391,714 - - 391,714 -

Claims and judgments - - - - - - 2,021,696

Other accrued liabilities 346,074 92,461 32,346 282,855 60,090 813,826 59,549

Due to other funds - - - - - - 1,752,000

Due to other elected officials 10 309 - 145 - 464 120

Due to other governments 4,965 29,466 139 63 20,521 55,154 -

Due to depositors - - - - - - 1,366

Unearned revenues 752,505 884,011 - 555,625 30,805 2,222,946

-

Notes payable 469,539 - - - - 469,539 -

Lease contracts 422,770 - - 106,486 - 529,256 -

Revenue bonds payable 3,515,000 - - - - 3,515,000 -

Current liabilities payable from

restricted assets

Customer deposits payable 1,436,756 - 21,508 - - 1,458,264 -

Interest payable 597,149 - - - - 597,149 -

Total current liabilities payable

from restricted assets 2,033,905 - 21,508 - - 2,055,413 -

Total current liabilities 10,120,433 10,779,148 4,436,969 1,314,200 274,443 26,925,193 6,179,468

NONCURRENT LIABILITIES

Compensated absences 454,429 93,896 35,013 117,918 110,996 812,252 59,888

Closure costs payable - - 1,664,619 - - 1,664,619 -

Claims and judgements - - - - - - 4,046,000

Loan-state of Florida, net 1,749,140 - - - - 1,749,140 -

Revenue bonds payable, net 49,977,852 - - - - 49,977,852 -

Other post employment benefits 525,506 142,938 57,175 516,297 56,730 1,298,646 7,473,780

Lease contracts 5,644,233 - - 45,358 - 5,689,591 -

Net pension liability 12,460,179 5,131,209 1,327,130 13,213,665 1,405,108 33,537,291 2,322,545

Total noncurrent liabilities 70,811,339 5,368,043 3,083,937 13,893,238 1,572,834 94,729,391 13,902,213

TOTAL LIABILITIES

80,931,772$ 16,147,191$ 7,520,906$ 15,207,438$ 1,847,277$ 121,654,584$ 20,081,681$

Business-Type Activities

OKALOOSA COUNTY, FLORIDA

STATEMENT OF NET POSITION – PROPRIETARY FUNDS – CONTINUED

SEPTEMBER 30, 2022

See notes to the financial statements.

29

Water and Governmental

Sewer Airport Solid

EMS

Other Activities

Enterprise Enterprise Waste

Enterprise

Enterprise Internal

Fund Fund Fund

Fund

Funds

Total

Service Funds

DEFERRED INFLOWS OF RESOURCES

Deferred charges related to pensions 976,140$ 32,910$ 147,434$ 900,716$ 19,679$ 2,076,879$ 252,048$

Deferred charges related to OPEB 166,177 45,200 18,083 163,693 17,938 411,091 -

Deferred charges related to leases 140,876 53,824,823 - - - 53,965,699 -

Unearned revenues - 10,188,662 - - - 10,188,662 446,374

Total deferred inflows of resources 1,283,193$ 64,091,595$ 165,517$ 1,064,409$ 37,617$ 66,642,331$ 698,422$

NET POSITION

Net investment in capital assets 161,499,570$ 172,410,501$ 849,038$ 1,488,635$ 105,101$ 336,352,845$ 637,654$

Restricted for debt service 4,836,997 - - - - 4,836,997 -

Restricted for passenger facility

charges program - 6,741,834 - - - 6,741,834 -

Restricted for customer facility

charges program - 6,145,255 - - - 6,145,255 -

Unrestricted (deficit) 36,632,408 5,557,914 5,542,152 966,304 4,547,611 53,246,389 (4,940,853)

TOTAL NET POSITION (DEFICIT)

202,968,975$ 190,855,504$ 6,391,190$ 2,454,939$ 4,652,712$ 407,323,320$ (4,303,199)$

TOTAL LIABILITIES, DEFERRED

INFLOWS, AND NET

POSITION (DEFICIT)

285,183,940$ 271,094,290$ 14,077,613$ 18,726,786$ 6,537,606$ 595,620,235$ 16,476,904$

Business-Type Activities

OKALOOSA COUNTY, FLORIDA

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

30

Water and Governmental

Sewer Airport Solid

EMS

Other Activities

Enterprise Enterprise Waste

Enterprise

Enterprise Internal

Fund Fund Fund

Funds

Total

Service Funds

OPERATING REVENUES

Charges for services 40,970,454$ 20,318,557$ 14,418,150$ 10,365,309$ 494,403$ 86,566,873$ 18,139,456$

Licenses and permits - - - - 3,001,435 3,001,435 -

Miscellaneous 7,495 - 2,081 59 51,596 61,231 1,377,202

Total operating revenues 40,977,949 20,318,557 14,420,231 10,365,368 3,547,434 89,629,539 19,516,658

OPERATING EXPENSES

Personal services 8,439,025 2,701,367 978,089 8,386,466 1,845,542 22,350,489 2,825,307

Contractual services 3,087,178 5,353,599 11,232,283 657,323 582,811 20,913,194 241,341

Supplies 1,476,294 1,517,928 130,479 1,220,627 50,947 4,396,275 3,718,496

Insurance premiums and claims - - - - - - 9,428,749

Utilities 2,642,558 1,347,334 13,633 30,534 - 4,034,059 5,040

Other operating expenses 3,825,735 3,525,758 487,446 789,891 147,680 8,776,510 830,328

Depreciation/ amortization 9,421,697 5,536,797 244,633 612,507 32,231 15,847,865

75,078

Total operating expenses 28,892,487 19,982,783 13,086,563 11,697,348 2,659,211 76,318,392 17,124,339

Operating Income (loss) 12,085,462 335,774 1,333,668 (1,331,980) 888,223 13,311,147 2,392,319

NON-OPERATING REVENUES (EXPENSES)

Taxes - - - 523 - 523 -

Intergovernmental 343,268 871,260 217,104 39,329 - 1,470,961 -

Investment income (loss) (207,434) (231,927) (106,560) (36,114) (17,610) (599,645) (26,588)

Other non-operating revenue 71,104 74,709 - - - 145,813 -

Interest expenses (2,685,617) - - (6,206) - (2,691,823) -

Interest income - leases 4,986 1,636,507 - - - 1,641,493 -

Gain (loss) on disposal of capital assets 488,344 32,008 - 37,820 - 558,172 52,791

Total nonoperating revenues (expenses) (1,985,349) 2,382,557 110,544 35,352 (17,610) 525,494 26,203

Income (loss) before

contributions and transfers 10,100,113 2,718,331 1,444,212 (1,296,628) 870,613 13,836,641 2,418,522

Capital contributions 68,240 3,168,376 - - - 3,236,616 -

Passenger and customer facility changes - 6,782,938

- - - 6,782,938 -

Transfers in - - - 1,944,482 - 1,944,482 -

Transfers out - (2,717,725) - - - (2,717,725) -

CHANGE IN NET POSITION

10,168,353 9,951,920 1,444,212 647,854 870,613 23,082,952 2,418,522

TOTAL NET POSITION (DEFICIT) - BEGINNING

192,800,622 180,903,584 4,946,978 1,807,085 3,782,099 384,240,368 (6,721,721)

TOTAL NET POSITION (DEFICIT) - ENDING

202,968,975$ 190,855,504$ 6,391,190$ 2,454,939$ 4,652,712$ 407,323,320$ (4,303,199)$

Business-Type Activities

OKALOOSA COUNTY, FLORIDA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

31

Water and Solid Governmental

Sewer Airport Waste

EMS

Other Total Activities -

Enterprise Enterprise Enterprise

Enterprise

Enterprise Enterprise Internal

Fund Fund Fund

Fund

Funds Funds Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 43,081,614$ 19,616,183$ 16,149,300$ 10,457,124$ 3,609,921$ 92,914,142$ 11,288,481$

Receipts from users - - - - - - 8,462,666

Transfers of cash to others for benefits - - - - - - (4,765,500)

Payments to suppliers (12,315,201) (6,724,426) (9,227,601) (2,717,234) (760,529) (31,744,991) (9,866,045)

Payments to employees (7,541,899) 5,216,190 (928,095) (8,121,206) (1,814,488) (13,189,498) -

Receipts from interfund services provided - - - - - - (6,919,918)

Payments for other revenues 71,104 - - - - 71,104 -

Net cash provided by (used for) operating activities 23,295,618 18,107,947 5,993,604 (381,316) 1,034,904 48,050,757 (1,800,316)

CASH FLOWS FROM NON-CAPITAL FINANCING

ACTIVITIES

Operating subsidy - intergovernmental revenue 343,269 871,260 217,104 39,329 - 1,470,962 -

Transfers (out) in (141) (2,717,725) - 1,944,482 - (773,384) -

Net interfund activity - - 221 (59) - 162 (498,289)

Net cash provided by (used in) by non-capital

financing activities 343,128 (1,846,465) 217,325 1,983,752 - 697,740

(498,289)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES

Passenger & customer facility charges - 8,494,254 - - - 8,494,254 -

Acquisition and construction of fixed assets (15,984,548) (22,491,898) (306,297) (647,109) (62,999) (39,492,851) (69,044)

Proceeds from sale of fixed assets 498,470 32,008 - 40,447 - 570,925 78,234

Capital contributions 68,240 3,168,376 - - - 3,236,616 -

Interest paid on debt (3,491,692) (84,126) - (6,206) - (3,582,024) -

Bond refunding costs (300) - - - - (300) -

Bond and note payable principal payments (3,389,007) - - - - (3,389,007) -

Net cash provided by (used in) capital and related

financing activities (22,298,837) (10,881,386) (306,297) (612,868) (62,999) (34,162,387) 9,190

Business-Type Activities

OKALOOSA COUNTY, FLORIDA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

32

Water and Solid Governmental

Sewer Airport Waste

EMS

Other Total Activities -

Enterprise Enterprise Enterprise

Enterprise

Enterprise Enterprise Internal

Fund Fund Fund

Fund

Funds Funds Service Funds

CASH FLOWS FROM INVESTING ACTIVITIES

Sales of investments -$ 2,773,708$ -$ -$ (1,482,391)$ 1,291,317$ -$

Purchases of investment (2,749,181) (5,486,199) (4,964,707) (1,463,561) - (14,663,648) (1,973,171)

Investment income (loss) (202,448) (231,927) (106,561) (36,114) (17,610) (594,660) (26,587)

Net cash used in investing activities (2,951,629) (2,944,418) (5,071,268) (1,499,675) (1,500,001) (13,966,991) (1,999,758)

NET INCREASE (DECREASE IN CASH AND CASH

EQUIVALENTS

(1,611,720) 2,435,678 833,364 (510,107) (528,096) 619,119 (4,289,173)

CASH AND CASH EQUIVALENTS - BEGINNING

4,841,648 19,754 1,539,689 1,758,196 1,917,975 10,077,262 6,248,272

CASH AND CASH EQUIVALENTS - ENDING

3,229,928$ 2,455,432$ 2,373,053$ 1,248,089$ 1,389,879$ 10,696,381$ 1,959,099$

CASH AND CASH EQUIVALENTS AT END

CONSISTS OF:

Current assets 229,598$ 2,455,432$ 2,344,545$ 1,248,089$ 1,389,879$ 7,667,543$ 1,959,099

Restricted assets 3,000,330 - 28,508 - - 3,028,838 -

TOTAL 3,229,928$ 2,455,432$ 2,373,053$ 1,248,089$ 1,389,879$ 10,696,381$ 1,959,099$

Business-Type Activities

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

33

Water and Solid Governmental

Sewer Airport Waste

EMS

Other Total Activities -

Enterprise Enterprise Enterprise

Enterprise

Enterprise Enterprise Internal

Fund Fund Fund

Fund

Funds Funds Service Funds

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES

Operating income (loss) 12,085,462$ 335,774$ 1,333,668$ (1,331,980)$ 888,223$ 13,311,147$ 2,392,319$

Adjustments to reconcile operating

income to net cash provided (used)

by operating activities

Depreciation/amortization 9,421,697 5,536,797 244,633 612,507 32,231 15,847,865 75,078

Other revenue 71,104 - - 523 - 71,627 -

Decrease (increase) in assets

Accounts receivable 1,091,615 263,020 1,739,096 (451,890) 59,985 2,701,826 168,422

Lease receivable 32,424 4,125,565 - - - 4,157,989 -

Amounts held by others for benefits - - - - - - (4,765,500)

Due from other governments 1,987,926 486,496 (3,027) - - 2,471,395 (1,385)

Inventories (59,324) (41,971) - (72,039) - (173,334) (80,184)

Due from other funds - - - - - - 57,388

Prepaid expenses (57,881) (28,567) - 2,192 6,611 (77,645) (7,379)

Deferred outflows (62,524) (224,824) (78,148) (721,491) (105,327) (1,192,314) (1,316,758)

Increase (decrease) in liabilities

Accounts payable 48,910 457,456 (689,010)

40,697 5,436 (136,511) 173,766

Contracts payable (1,219,859) 4,669,253 3,719,693 25,441 6,032 7,200,560 154,982

Due to other elected officials - (388) - 127 (377) (638) 120

Due to other governments (108) (7,959) 50 (902) (3,223) (12,142) -

Accrued liabilities 4,743 (27,631) 12 (14,375) (1,939) (39,190) (6,644)

Compensated absences 83 11,868 213 33,527 5,609 51,300 10,617

Closure costs 72,003 - (369,821) - - (297,818) -

Claims and judgements - - - - - - (171,438)

Claims incurred but not reported - - - - - - 33,947

Other post employment benefits (74,991) (20,397) (8,160) (73,675) (8,094) (185,317) 1,362,813

Deferred revenue (988,348) (609) - 534,331 2,672 (451,954) (2,724)

Customer deposits 16,798 3,000 (7,000) 8,792 (170) 21,420 (1,035)

Net pension liability 7,103,565 2,384,073 827,127 7,638,764 1,119,055 19,072,584 1,265,019

Deferred inflows (6,177,677) 186,991 (715,722) (6,611,865) (971,820) (14,290,093) (1,141,740)

Total adjustments 11,210,156 17,772,173 4,659,936 950,664 146,681 34,739,610 (4,192,635)

NET CASH PROVIDED BY (USED IN)

OPERATING ACTIVITIES 23,295,618$ 18,107,947$ 5,993,604$ (381,316)$ 1,034,904$ 48,050,757$ (1,800,316)$

Business-Type Activities

OKALOOSA COUNTY, FLORIDA

STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS

SEPTEMBER 30, 2022

See notes to the financial statements.

34

ASSETS

Cash and cash equivalents 30,923,943$

Investments 2,309,000

Accounts receivable 33,191

Due from other governments 24,651

TOTAL ASSETS 33,290,785

LIABILITIES

Due to other funds 32,158

Due to other elected officials 202,292

Due to other governments 1,297,543

Due to depositors 155,221

Taxes collected in advance for other

governments 2,803,395

TOTAL LIABILITIES 4,490,609$

NET POSITION

RESTRICTED FOR INDIVIDUALS, ORGANIZATION

OR OTHER GOVERNMENTS 28,800,176

TOTAL NET POSITION 28,800,176$

OKALOOSA COUNTY, FLORIDA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

See notes to the financial statements.

35

ADDITIONS

Collections from individuals 2,860$

Fines and forfeitures and fees collected 4,724,672

Witness advanced funding 6,403

Tax deeds and fees collected 1,007,471

Child support collected 1,703,133

Registry of the court and fees collected 53,238,202

Recording fees collected 573,458

Documentary stamps and intangible tax collected 60,023,884

Probation fees collected 679

Restitution and escrow funds collected 363,557

Juvenile restitution collected 21,119

Online foreclosure funds collected 2,477,994

Cash bonds collected 613,391

County related taxes and fees 382,569,263

State related licenses and fees 33,635,041

Other 1,722,377

TOTAL ADDITIONS 542,683,504

DEDUCTIONS

Distributions to individuals 300

Fines and forfeitures and fees disbursed 4,724,672

Witness advanced funding 6,403

Tax deeds and fees disbursed 1,141,069

Child support collected 1,703,133

Registry of the court and fees disbursed 36,125,867

Recording fees disbursed 573,458

Documentary stamps and intangible tax disbursed 60,023,884

Probation fees disbursed 679

Restitution and escrow funds disbursed 369,543

Juvenile restitution disbursed 21,119

Online foreclosure funds disbursed 2,215,960

Cash bonds disbursed 511,825

County related taxes and fees 382,560,400

State related licenses and fees 33,635,041

Other 1,254,263

TOTAL DEDUCTIONS 524,867,616

NET INCREASE IN FIDUCIARY NET POSITION 17,815,888

TOTAL NET POSITION - BEGINNING, AS RESTATED 10,984,288

TOTAL NET POSITION - ENDING 28,800,176$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

36

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Okaloosa County, Florida (hereinafter referred to as the County) have been

prepared in conformity with accounting principles generally accepted in the United States (GAAP) as

applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted

standard-setting body for governmental accounting and financial reporting. The County uses the Uniform

Accounting System mandated by Chapter 218.33, Florida Statutes.

The following is a summary of the more significant accounting policies of the County:

The Reporting Entity

Okaloosa County is a political subdivision of the State of Florida, governed by a five member Board of

County Commissioners (the Board), each elected by the citizenry at large for four-year terms. The Board

has no powers other than those expressly vested in it by State Statute and its governmental powers

cannot be delegated. In addition, the Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser

and Supervisor of Elections (collectively referred to as the County’s Constitutional Officers) are elected

by the citizenry at-large and function independently of the Board. However, the Board funds a portion of,

or in certain instances, all of, the operating budgets of the County’s Constitutional Officers. These

financial statements include the operating activities of the Board and the County’s Constitutional Officers.

In evaluating the County as a reporting entity, management has considered all potential component units

for which the County may or may not be financially accountable and, as such, be included within the

County’s financial statements. Management utilized criteria set forth in GASB literature for determining

financial accountability of potential component units in evaluating all potential component units. In

accordance with GASB literature, the County (primary government) is financially accountable if it appoints

a voting majority of the potential component unit 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 County. 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. The

Board evaluated the Emerald Coast Bridge Authority (the Authority) in accordance with GASB literature.

The Authority has been dormant for several years. The Board does not believe it is financially accountable

with respect to the Authority or that a financial burden relationship exists based on an evaluation of GASB

literature. As such, the Authority is not included as part of the County’s reporting entity.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

37

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Government-Wide and Fund Financial Statements

Government-Wide Statements

The government-wide financial statements include the statement of net position and the statement of

activities. These statements display information on all of the non-fiduciary activities of the primary

government and its component units. The primary government and the component unit are reported

separately with the focus of the statements being the primary government. Individual funds are not

displayed. Governmental activities, which normally are supported by taxes, intergovernmental revenues,

and other non-exchange transactions, are reported separately from business-type activities, which rely

to a significant extent on fees and charges for support.

The statement of activities presents a comparison between direct expenses and program revenues for

each function of the County’s governmental activities and for the different business-type activities of the

County. A function is an assembly of similar activities and may include portions of a fund or summarize

more than one fund to report the expenses and program revenues associated with a distinct functional

activity. Direct expenses are those that are clearly identifiable with a specific function or segment. The

County does not allocate indirect expenses to functions in the statement of activities.

Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit

from goods, services, or privileges provided by the programs of the County and 2) grants and

contributions that are restricted to meeting the operational activities or the construction, acquisition, or

rehabilitation of capital assets required by a particular program. These revenues are subject to externally

imposed restrictions to these program uses. The determining factor for identifying to which function

program revenue pertains is which function generated the revenue in the case of charges for service. For

grants and contributions, the determining factor is to which function the revenues are restricted.

Taxes and other items not properly included among program revenues are reported instead as general

revenues of the County. The comparison of direct expenses with program revenues in the statement of

activities identifies the extent to which each governmental function and each business activity is self-

financing and how much they draw from the general revenues of the County.

Fund Financial Statements

During the year, transactions related to certain functions or activities are segregated into separate funds

in order to aid financial management and to demonstrate legal compliance. A fund is a fiscal and

accounting entity with a self-balancing set of accounts. The fund financial statements are designed to

present detailed information about the County’s financial activities. Separate financial statements are

provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are

excluded from the government-wide financial statements. The emphasis of fund financial statements is

on major governmental and enterprise funds, each displayed in a separate column. All remaining

governmental and enterprise funds are aggregated and reported as nonmajor funds.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

38

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Exchange and Non-exchange Transactions

Exchange transactions are those in which each party receives and gives up essentially equal values. An

example of an exchange transaction is a charge for service, rent, in exchange for a specific service, use

of a County building. Non-exchange transactions are those in which the County gives (or receives) value

without directly receiving (or giving) equal value in exchange. An example of a non-exchange transaction

is property tax revenue received by the County which is used to fund various general governmental

services. The revenue from these exchange and non-exchange transactions is recognized in the financial

statements in varying ways depending on the basis of accounting used.

Government-Wide and Fiduciary Fund Financial Statements

The government-wide financial statements are reported using the economic resources measurement

focus. All assets and liabilities associated with the operation of the County are included on the statement

of net position. The statement of activities reports all revenues and expenses. Fiduciary funds are

excluded from the government-wide financial statements. The statement of fiduciary net position reports

all assets, liabilities and net position associated with the custodial funds of the County. Custodial funds

are the only type of fiduciary fund used by the County.

Government-wide financial statements are reported using the accrual basis of accounting. Revenues are

recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when

the related cash flows take place. Nonexchange transactions include property taxes, grants, entitlements,

and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which

the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in

which all eligibility requirements have been satisfied. The custodial funds of the County use the accrual

basis of accounting to recognize the receivables and payables recorded in those funds.

The effect of interfund activity has been eliminated from the government-wide financial statements except

for interfund services provided and used. Elimination of those charges would distort the direct costs and

program revenues reported for the various functions concerned on the statement of activities.

Governmental Fund Financial Statements

All governmental funds are accounted for using a flow of current financial resources measurement focus.

With this measurement focus, only current assets and current liabilities generally are included on the

balance sheet. The statement of revenues, expenditures and changes in fund balances reports the

sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing

uses) of current financial resources. This approach differs from the manner in which the governmental

activities of the government-wide financial statements are prepared. Governmental fund financial

statements therefore include reconciliations with brief explanations to better identify the relationship

between the government-wide statements and the governmental fund statements.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

39

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Governmental Fund Financial Statements – Continued

Governmental fund financial statements are reported using the modified accrual basis of accounting.

Under this method, revenues are recognized when susceptible to accrual (i.e., when they become both

measurable and available). “Measurable” means the amount of the transaction can be determined and

“available” means collectible within the current period or soon enough thereafter to be used to pay

liabilities of the current period. The County considers all revenues reported in the governmental funds to

be available if the revenues are collected within sixty days after year-end except intergovernmental

revenues, which the County considers revenue to be available if collected within 365 days. Those

revenues susceptible to accrual are sales tax, gasoline taxes and other intergovernmental revenues

collected and held by the state at year-end on behalf of the County, special assessments, licenses,

interest revenue and charges for service. Current year property taxes uncollected at the end of the fiscal

year are generally immaterial in amount and highly susceptible to uncollectibility and are not recorded as

a receivable on the balance sheet. All other revenue items are considered to be measurable and available

only when the government receives cash.

Expenditures are recorded when the related fund liability is incurred. Principal and interest on general

long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the

debt service fund for payments to be made in the following year. General capital asset acquisitions are

reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions

under financed purchase are reported as other financing sources.

Proprietary Fund Financial Statements

The proprietary fund financial statements are reported using the economic resources measurement

focus. Under this measurement focus, all assets and liabilities associated with the operation of the fund

are included on the statement of net position. The statement of revenue, expenses and changes in net

position reports revenues and expenses. The proprietary funds are reported using the accrual basis of

accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are

incurred, regardless of when the related cash flows take place.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating

revenues and expenses generally result from providing services and producing and delivering goods in

connection with a proprietary fund’s principal ongoing operations. All revenues and expenses not meeting

this definition are reported as non-operating revenues and expenses.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions

associated with the principal activity of the fund. The principal operating revenues for the proprietary

funds are fees and charges for water and sewer, airports, solid waste, inspection services, emergency

medical services, convention center, self-insurance, compensated absence debt service and fleet internal

service operations. Operating expenses for the enterprise funds, and the internal service funds, include

the cost of sales and services, administrative expenses and depreciation of capital assets.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

40

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Proprietary Fund Financial Statements – Continued

Non-operating revenues, such as subsidies and investment earnings, result from nonexchange

transactions or ancillary activities. They include property taxes, grants, entitlements, donations and

capital contributions. On an accrual basis, revenue from property taxes is recognized in the fiscal year

for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the

fiscal year in which all eligibility requirements have been satisfied.

Contributions of capital in proprietary fund financial statements arise from internal and external

contributions of capital assets or from grants or outside contributions of resources restricted to capital

acquisition and construction.

Other Financial Statement Presentation Information

The County currently employs an indirect allocation system. An administrative service fee is charged by

the General Fund, at the direction of the Board of County Commissioners, to several special revenue and

enterprise funds to address General Fund services (finance, personnel, purchasing, legal, technology

management, etc.) provided.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial

statements. An exception to this general rule is the charge back of services, such as insurance costs,

vehicle maintenance, and central costs. Elimination of these charges would distort the direct costs and

program revenues reported for the various functions concerned.

The County reports the following major governmental funds:

General Fund

This is the County’s primary operating fund. It accounts for all financial resources of the general

government, except those required to be accounted for in another fund.

Tourist Development Special Revenue Fund

This fund is used to account for funds received from imposition of the 5% tourist development tax for the

purpose of improving Okaloosa County’s tourist industry as authorized by 125.0104, F.S., and Okaloosa

County Ordinance No.89-23 as amended by 91-20, 92-52, 95-10, 99-07, 07-58, 12-21, 13-19, 13-20, 14-

08, 16-13 and 16-20.

Natural Disaster Fund

This fund is used to account for disaster funding and expenditures not considered normal recurring

operating activity of the County, as well as grant funding received as a result of the Coronavirus

pandemic.

Road and Bridge Construction Fund

This fund is used to account for road and bridge construction activities including resurfacing, special

projects, and other major infrastructure construction services funded by non-discretionary fuel taxes,

constitutional gas taxes, interest, other miscellaneous revenue and state grants.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

41

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Other Financial Statement Presentation Information – Continued

Infrastructure Surtax Fund

This fund is used to account for funds received from the imposition of the one-half cent surtax for the

purpose of financing, planning, reconstructing, renovating, and improving Okaloosa County’s

infrastructure related to efficient transportation infrastructure, management of stormwater, provision of

law enforcement, public safety and correctional services as authorized by 212.055(2), F.S. and Okaloosa

County Ordinance No.17-24 as amended by 18-09.

The County reports the following major enterprise funds:

Water and Sewer Enterprise Fund

This fund is used to account for the user charges and expenses associated with the provision of water

and sewer services to residents of the unincorporated areas of Okaloosa County.

Airport Enterprise Fund

This fund is used to account for the operation of three Okaloosa County airports. Revenue sources

include federal and state grants, fees from concessionaires and other fees and charges for services to

tenants and airport users.

Solid Waste Enterprise Fund

This fund is used to account for the revenues and expenses associated with the provision of solid waste

management within Okaloosa County.

Emergency Medical Services Enterprise Fund

This fund is used to account for the operation of a county-wide emergency medical technician and

paramedic service. Revenue sources include ad valorem property tax subsidies, user charges, and

private donations.

The County reports the following fund types:

Internal Service Funds

These funds account for insurance coverage (including other post-employment benefits for retirees), fleet

management services, and funding of compensated absence debt provided to other departments or

agencies of the government, or to other governments, on a cost reimbursement basis.

Custodial Funds

These funds account for monies held on behalf of individuals and companies that use the County as a

depository; property taxes, fines, court costs, licenses and fees collected on behalf of other governments;

and surety bonds and performance deposits.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

42

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance

Deposits and Investments

The County maintains a cash and investment pool that is available for use by all funds. Earnings from

the pooled investments are allocated to the respective funds based on applicable cash participation by

each fund. The investment pool is managed such that all participating funds have the ability to deposit

and withdraw cash as if they were demand deposit accounts. Therefore, all balances representing

participants’ equity in the investment pools are classified as cash and cash equivalents for financial

statement purposes.

Except for where otherwise specified, the County’s investments are reported at fair value.

Some of the County’s investments are in the Florida Local Government Investment Trust (the Trust),

which was created and established under the laws of the state of Florida for the purpose of providing

opportunities for the investment of excess public funds. The Trust is operated and administered by a

Board of Trustees consisting of six members, three appointed by the Florida Association of Court Clerks,

Inc., and three appointed by the Florida Association of Counties, Inc. The Trust is self-regulated and is

not registered with the Securities and Exchange Commission.

The Trust offers two investment funds to its participants, the Short Term Bond Fund and the Day to Day

Fund. The Short Term Bond Fund is a longer term, higher yielding fund, which is accounted for at fair

value as a fluctuating Net Asset Value (NAV) pool. Also, because the County’s investment in the Short

Term Bond Fund is measured at a NAV fair value per share, it is excluded from categorization within the

fair value hierarchy.

The Day to Day Fund is a highly liquid fund with underlying investments having a weighted average

maturity of less than 90 days. The Day to Day Fund meets the criteria to be reported at amortized cost,

and does have a policy that it will operate in a manner consistent with the SEC’s Rule 2a7 of the

Investment Company Act of 1940. Because the fund is reported at amortized cost, it is also excluded

from categorization within the fair value hierarchy.

Interfund Receivables and Payables

During the course of operations, numerous transactions occur between individual funds for goods

provided or services rendered. These receivables and payables are classified as “due from other funds

or elected officials” or “due to other funds or elected officials” on the fund statement balance sheets.

Short-term interfund loans are also classified as “interfund receivables/payables.” Non-current portions

of long-term interfund loan receivables are reported as advances and are offset equally by a non-

spendable fund balance account that indicates that they do not constitute expendable available financial

resources and therefore are not available for appropriation. Any residual balances outstanding between

the governmental activities and business-type activities are reported in the government-wide financial

statements as “internal balances.”

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

43

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance –

Continued

Accounts Receivable

Accounts receivable are shown net of an allowance for uncollectible accounts. The Emergency Medical

Services Enterprise Fund, Airport Enterprise Fund, and Water and Sewer Enterprise Fund are the only

funds of the Okaloosa Board that provide for an allowance for doubtful accounts for trade accounts

receivables. All other funds accounts receivable write-offs are insignificant.

Property Taxes

Property taxes attach as an enforceable lien on property as of the date of assessment and remain in

effect until discharge by payment. Taxes are payable when levied (on November 1, or as soon thereafter

as the assessment roll becomes available to the Tax Collector). The County bills and collects its own

property taxes, as well as taxes for the County School District and taxes for municipalities and special

districts within the County in accordance with the laws of the State of Florida. No accrual has been made

for 2023 ad valorem taxes because property taxes are not legally due until subsequent to the end of the

fiscal year. Collection of taxes and remittance of them to other governmental agencies are accounted for

in the Disbursements Custodial Fund of the Tax Collector.

The following is the current property tax calendar:

Lien Date January 1, 2022

Levy Date November 1, 2022

Due Date November 1, 2022

Delinquent April 1, 2022

Discounts of 1% for each month taxes are paid prior to March 2023 are granted.

Revenue recognition criteria for property taxes under the Governmental Accounting Standards Board

requires that property taxes expected to be collected within 60 days of the current period be accrued.

Current year taxes that are uncollected as of the end of the fiscal year are generally immaterial in amount

and highly susceptible to uncollectibility and, therefore, are not recorded as a receivable on the balance

sheet date.

Inventories and Prepaid Items

Inventory is valued at cost (first-in, first-out) in the governmental funds and at lower of cost (first-in, first-

out) or net realizable value in the proprietary funds. The consumption method is used to account for the

inventory. Under the consumption method, inventory items are recorded as expenditures during the

period inventory is used.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as

prepaid items in both government-wide and fund financial statements. The consumption method is used

to account for the prepaid items. Under the consumption method, prepaid items are recorded as

expenditures during the period in which they are used.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

44

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance –

Continued

Restricted Assets

Certain proceeds of the revenue bonds, as well as certain resources set aside for their repayment, are

classified as restricted assets on the balance sheet because their use is limited by applicable bond

covenants. In addition, restricted assets include funds set aside for repayment of customer deposits in

several enterprise funds.

Capital Assets

Capital assets are not capitalized in the governmental funds used to acquire or construct them. Instead,

capital acquisition and construction are reflected as expenditures in governmental funds, and the related

assets are reported on the government-wide statement of net position of the County. Capital assets

acquired by proprietary funds are reported in those funds.

Property, plant and equipment purchased or acquired is carried at historical cost or estimated historical

cost.

Contributed assets are recorded at acquisition value as of the date received. The County’s

capitalization levels are $5,000 on tangible personal property and $5,000 on buildings, improvements

other than buildings and infrastructure.

The Sheriff maintains a tangible personal property inventory and

implemented a $5,000 capitalization level during the fiscal year.

Other costs incurred for repairs and

maintenance are expensed as incurred.

General infrastructure assets acquired prior to July 1, 1980, are

included in the capital asset inventory and are reported at estimated historical cost using deflated

replacement cost.

Depreciation on all assets is provided on the straight-line basis over the following estimated useful

lives:

Assets Years

Buildings 10-50

Improvements other than buildings 7-25

Intangibles 5

Equipment 3-7

Vehicles 2-15

Roads and bridges 10-75

Wastewater lines and pump stations 10-50

Other infrastructure 10-50

Leases – County as Lessee

The County is the lessee for lease of various real property and equipment. The County has recognized

a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial

statements.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

45

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance –

Continued

Leases – County as Lessee – Continued

At the commencement of a lease, the County initially measures the lease liability at the present value of

payment expected to be made during the lease term. Subsequently, the lease liability is reduced by the

principal portion of lease payment made. The lease asset is initially measured as the initial amount of the

lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain

initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the County determines the discount rate it

uses to discount the expected lease payments to present value, lease term and lease payments.

The County uses the interest rate charged by the lessor as the discount rate. When the interest rate

charged by the lessor is not provided, the County generally uses its estimated incremental borrowing rate

as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease payments included in the

measurement of the lease liability are composed of fixed payments and a purchase option price that the

County is reasonably certain to exercise.

The County monitors changes in circumstances that would require a remeasurement of its lease and will

remeasure the lease asset and liability if certain changes occur that are expected to significantly affect

the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long‐term debt

on the statement of net position.

County as Lessor

The County is a lessor in various real property leases. The County recognizes a lease receivable and a

deferred inflow of resources in the government‐wide and governmental fund financial statements.

At the commencement of a lease, the County initially measures the lease receivable at the present value

of payments expected to be received during the lease term. Subsequently, the lease receivable is

reduced by the principal portion of lease payments received. The deferred inflow of resources is initially

measured as the initial amount of the lease receivable, adjusted for lease payments received at or before

the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue

over the life of the lease term.

Key estimates and judgments include how the County determines the discount rate it uses to discount

the expected lease receipts to present value, lease term and lease receipts. The County uses its

estimated incremental borrowing rate as the discount rate for leases. The lease term includes the

noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable

is composed of fixed payments from the lessee.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

46

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance –

Continued

County as Lessor – Continued

The County monitors changes in circumstances that would require a remeasurement of its lease and will

remeasure the lease receivable and deferred inflows of resources if certain changes occur that are

expected to significantly affect the amount of the lease receivable.

Compensated Absences

The liability for compensated absences reported in the government-wide and proprietary fund statements

consists of unpaid, accumulated annual and sick leave or compensatory time balances. The liability is

accrued when incurred in the government-wide and proprietary fund financial statements. A liability for

these amounts is reported in governmental funds financial statements only if they have matured, for

example, as a result of employee resignations and retirements.

Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities and long-term obligations are reported in the government-wide financial

statements and the proprietary fund financial statements. In general, governmental fund payables and

accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial

resources are reported as obligations of these funds.

However, compensated absences and claims that will be paid from governmental funds are reported as

a liability in the fund financial statements only to the extent that they are “due for payment” during the

current year. Bond notes payable and financed purchases are recognized as a liability in the

governmental fund financial statements when due. At the inception of financed purchases reported in

governmental funds, expenditures and an “Other Financing Source” of an equal amount are reported at

the net present value of future minimum lease payments.

Self-insurance Claims

Liabilities for reported claims and incurred but not reported claims (IBNR) are estimated based on an

actuarial review of claims pending and historical experience.

Landfill Closure and Post Closure Care Payable

The County recognizes municipal solid waste landfill closure and post closure care costs under the State

of Florida’s Solid Waste Management Act of 1988, regulations of the Federal Environmental Protection

agency and the GASB Statement No.18, Accounting for Municipal Solid Waste Landfill Closure and Post

Closure Care Costs. The County is required to place a final cover on closed landfills and to provide long-

term care for up to thirty years after final cover. These obligations for closure and post closure are

recognized in the Solid Waste Fund over the active life of the landfill, based on landfill capacity used to

date.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

47

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance –

Continued

Net Pension Liability

The government-wide and proprietary fund ﬁnancial statements net pension liability represents the

County’s proportionate share of the net pension liability of the cost-sharing pension plan in which it

participates. The County participates in the Florida Retirement System (FRS) and the Health Insurance

Subsidy Program (HIS) which are administered by the Florida Division of Retirement. For purposes of

measuring the net pension liability, deferred outﬂows of resources and deferred inﬂow of resources

related to pensions, pension expense, additions to/deduction, and information about the ﬁduciary’s net

position have been determined on the same basis as they are reported by the cost-sharing plan. Beneﬁt

payments (including refunds of employee contributions) are recognized when due and payable in

accordance with the beneﬁt terms. The government-wide ﬁnancial statements include the liability of all

plan participants for the Board and the County’s Constitutional Ofﬁcers.

Bond Premiums, Discounts and Issuance Costs

On the government-wide statement of net position and the proprietary fund type statement of net position,

bond premiums and discounts are deferred and amortized over the life of the bonds using the effective

interest method. Bonds payable are reported net of the applicable bond premium or discount.

Unamortized losses on bonds are presented as deferred outﬂows.

In the fund ﬁnancial statements, governmental fund types recognize bond premiums and discounts, as

well as bond issuance costs, during the period the debt is issued. The face amount of debt issued is

reported as other ﬁnancing sources. Premiums received on debt issuances are reported as other

ﬁnancing sources while discounts on debt issuances are reported as other ﬁnancing uses. Issuance

costs, whether or not withheld from the actual debt proceeds received, are reported as debt service

expenditures.

Deferred Outflows/ Inflows of Resources

In addition to assets, deferred outﬂows of resources represent a consumption of net assets that applies

to a future period(s) and will not be recognized as an outﬂow of resources (expenditure) until then. The

County has $1,139,647 of deferred outﬂows on Water and Sewer, Series 2015 bonds, $35,555,589 of

deferred outﬂows for pension and OPEB and $1,543,274 of deferred outflows for leases as of September

30, 2022. Amortization expense of the deferred outﬂow related to the Water and Sewer, Series 2015

bonds totaled $455,561 for the year ended September 30, 2022 and is included in interest expense on

the Statements of Revenues, Expenses and Changes in Net Position.

In addition to liabilities, deferred inﬂows of resources represent an acquisition of net assets that applies

to a future period(s) and will not be recognized as an inﬂow of resources (revenue) until that time. The

County has $89,957,419 of deferred inﬂows for pension, OPEB, leases and unavailable revenue as of

September 30, 2022.

Deferred amounts related to leases represent the amount of the initial measurement of the lease

receivable at the inception of the lease. A deferred inflow of resources is recognized as revenue over the

life of the lease term.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

48

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance –

Continued

Fund Balance

In the fund financial statements, GASB Statement 54 establishes fund balance classifications that

comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints

imposed upon the use of the resources reported in governmental funds. Fund balance classifications

under GASB54 are nonspendable, restricted, committed, assigned and unassigned.

These classifications reflect not only the nature of funds but also provide clarity to the level of restriction

placed upon fund balance. Fund balance can have different levels of restraint, such as external versus

internal compliance requirements.

Nonspendable – Comprised of amounts that are (a) not in spendable form or (b) legally or contractually

required to be maintained intact. “Not in spendable form” includes items that are not expected to be

converted to cash (such as inventories and prepaid amounts) and items such as long-term loans and

notes receivable, as well as property acquired for resale. The corpus (or principal) of a permanent fund

is an example of an amount that is legally or contractually required to be maintained intact.

Restricted – Component consists of amounts constrained for a specific purpose by external parties,

constitutional provision, or enabling legislation.

Committed – Component consists of amounts that can be used only for the specific purposes determined

by a formal action, in the form of ordinances, of the Board, the highest level of decision making authority.

Commitments may be changed or lifted only by the board taking the same formal action that imposed the

constraint originally.

Assigned – Component consists of amounts that are constrained by the County’s intent to be used for

specific purposes, but are neither restricted nor committed. Intent is expressed by (a) the Board of County

Commissioners or (b) a body (for example: a budget or finance committee) or official to which the County

has delegated the authority to assign amounts to be used for specific purposes. This indicates that

resources in those funds are, at a minimum, intended to be used for the purposes of that fund. The Board

has delegated to the County Administrator and Finance Officer in accordance with the County’s fund

balance policy.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

49

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance –

Continued

Fund Balance – Continued

Unassigned – Unassigned fund balance is the residual classification of the general fund. This

classification represents spendable fund balance that has not been assigned to other funds and that has

not been restricted, committed, or assigned to specific purposes within the general fund. Unassigned

fund balance may also include negative balances for any governmental fund if expenditures exceed

amounts restricted, committed, or assigned for those specific purposes.

When both restricted and unrestricted resources are available for use, it is the policy of the County to use

restricted resources first, and then unrestricted resources as they are needed. In circumstances when an

expenditure is made for a purpose for which amounts are available in multiple fund balance

classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and

unassigned. The County adopted a new formal fund balance policy in 2022 which established a targeted

minimum reserve balance in the General Fund of unrestricted fund balance of no less than two months

(17%) of audited expenditures and transfers out. In the event funds are not available to establish the

balances required under the Policy, the unrestricted fund balance target shall be achieved by adding a

designated amount to the budget to cover the deficiency over a period not to exceed three years.

Estimates

The preparation of financial statements in conformity with generally accepted accounting principles

requires management to make estimates and assumptions that affect the reported amounts of assets

and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and

the reported amounts of revenues and expenses during the reporting period. Actual results could differ

from those estimates.

Net Position

The net positions of proprietary funds, governmental activities and business-type activities are made up

of three components. Net Investment in capital assets which represents net capital assets less related

long-term liabilities; unspent debt proceeds will increase this amount. The restricted component of net

position consists of restricted assets reduced by liabilities and deferred inflows of resources related to

those assets. The restricted component represents assets that are legally restricted. They include reserve

funds, special revenues restricted by statute or ordinance, bond proceeds, and other sources restricted

for capital or improvements. The unrestricted component of net position is the balance not included in

the determination of net investment in capital assets or the restricted component of net position.

Change in Accounting Principle

The County implemented GASB Statement No. 87, Leases, during the fiscal year ended September 30,

2022. GASB Statement No. 87 enhances the relevance and consistency of information of the

government’s leasing activities. It establishes requirements for lease accounting based on the principle

that leases are financings of the right-to-use an underlying asset. A lessor is required to recognize a

lease receivable and a deferred inflow of resources. A lessee is required to recognize a right-of-use asset

and a corresponding lease liability. These changes were incorporated in the County’s fiscal year 2022

financial statements but had no effect on the beginning net position.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

50

2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgetary Information

Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual

appropriated budgets are adopted for all governmental and proprietary funds; however, budgets for

proprietary funds are not required to be reported on and are not included in these financial statements.

All appropriations lapse at fiscal year-end. Budgetary data reflected in the financial statements are

established by the following Board procedures.

On or about June 1 of each year, proposed budgets are received by the Board of County Commissioners

from its department heads, from all other constitutional officers, and from other agencies requesting

funding for the ensuing fiscal year. These proposed expenditures, along with all estimated receipts, taxes

to be levied, and balances expected to be brought forward are considered by the Board of County

Commissioners in a series of workshops beginning on or after July 15. The Board of County

Commissioners requires such changes as deemed necessary, sets proposed millages and establishes

dates for tentative and final public budget hearings as prescribed by Florida Statutes. Proposed budgets

are advertised in a newspaper of general circulation in the County. Public hearings are conducted in

Crestview and Shalimar for the purpose of receiving input, responding to complaints and providing

reasons and explanations for intended actions to all citizens participating.

In the event the final budget has not been adopted by October 1, the beginning of the fiscal year, Florida

Statutes provide for expenditures based on the adopted tentative budget or the Board re-adopts its prior

year’s adopted final budget, as amended, and expends monies based on that budget until such time as

its tentative budget is adopted pursuant to law. The final appropriations budget is adopted by resolution

of the Board of County Commissioners.

Florida Statutes require that the individual budgets of several of the constitutional officers must be

approved by the State of Florida. The “fee” portion of these budgets is not a part of the appropriations

budget passed by the Board of County Commissioners. The budgetary information shown in these

financial statements includes the entire budget for each constitutional office. The level of budgetary

control (that is the level at which expenditures cannot legally exceed appropriations) has been

established at the fund level. The County Administrator is authorized to transfer budgeted amounts within

departments of a fund and between departments of a fund; however, the Board of County Commissioners

must approve any revisions that alter the total expenditures of any fund. Each constitutional officer is

authorized to make line item transfers but must request approval from the Board for increases in

appropriations.

Budget amounts are originally adopted amounts as amended by action of the Board of County

Commissioners by revision of fund totals. Supplemental budgetary appropriations of $265,709,926

representing a 46% increase over the original adopted budget were necessary during the fiscal year. All

amendments to originally adopted amounts were made in a legally permissible manner.

Encumbrance accounting, under which purchase orders, encumber contracts and other commitments for

the expenditure of resources are recorded in order to reserve that portion of the applicable appropriation,

is employed in the governmental funds. Encumbrances at fiscal year-end do not constitute expenditures

since the commitments will be honored during the subsequent year.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

51

2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY – CONTINUED

Deficit Fund Balance Position

The Natural Disasters Fund reported a deficit fund balance of $561,598. This is a result of denied FEMA

grant claims during the year ended September 30, 2022 and as such expenditures exceeded revenues

recognized. If resolution of the claims is not reached a transfer will be made from the General Fund to

alleviate the deficit fund balance.

The Garage Services Internal Service Fund reported a deficit net position of $2,993,446. Vehicle

maintenance and centralized distribution of gasoline and special fuel are funded by monthly billing of

services. This funding method results in a deficit fund equity which will be charged back to the other funds

so that service fund revenues and expenses will be equal.

The Sheriff’s Self-Insurance Fund is reflecting a deficit fund equity of $2,374,472. This is the result of the

implementation of GASB 75 which requires the unfunded liability for future employee benefits (OPEB) to

be recorded on September 30, 2022.

The Debt Service Fund reported a deficit fund balance of $47,663. This is a result of debt payments

exceeding transfers in.

3. DEPOSITS AND INVESTMENTS

Deposits

At September 30, 2022, the County’s carrying value of cash and cash equivalents totaled $59,008,433,

which is presented as $28,084,490 in the statement of net position and $30,923,943 in the statement of

fiduciary net position.

The County maintains a cash and investment management pool in which each fund participates on a

dollar equivalent and daily transaction basis. The County’s cash and investment management pool is

considered to be cash equivalent for reporting purposes because it is an internally managed fund, which

allows individual funds to, at any time, deposit additional cash or make withdrawals without prior notice

or penalty. The County’s cash and investment management pool includes pooled cash maintained in

interest-bearing demand deposit accounts, certificates of deposit, and pooled investments of the Local

Government Surplus Trust Fund. Interest income (which includes unrealized gains and losses) is

distributed monthly based on balance at date of distribution.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

52

3. DEPOSITS AND INVESTMENTS

Deposits – Continued

Custodial Credit Risk

The County maintains its deposits only with qualified public depositories as defined in Chapter 280,

Florida Statutes. The provisions of this statute generally require public funds to be deposited in a bank

or savings association designated by the State Chief Financial Officer as a “Qualified Public Depository”.

All qualified public depositories must maintain deposit insurance. They also must place with or in the

name of the Chief Financial Officer of the State of Florida, collateral in the amount of the greater of the

average daily balance of public deposits multiplied by the average monthly balance of public deposits or

125 percent of the average daily balance of public deposits greater than capital. Collateral requirements

may be increased according to statute if specified conditions exist. Eligible collateral includes federal,

federally-guaranteed, state and local government obligations and corporate bonds. In the event of default

by a qualified public depository excess losses over insurance and collateral will be recovered through

assessments to all qualified public depositories of the same type as the depository in default. Under this

method, all County deposits, including certificates of deposit, are considered fully insured.

Investments

State Statutes and the formal investments and portfolio policies adopted by the Board of County

Commissioners restrict the types of investments that can be made by the County. A description of the

requirements and the types of investments allowed as well as information about valuation and other

investment policies can be found in Note 1.

The investment policy manual details the methods used to manage the risks inherent to the investment

process. The authority for investment of County funds rests with the Clerk of the Circuit Court who has

delegated management of the investment program to the Director of Treasury and Board Services.

Although the policies allow investments in many types of instruments, the Clerk has chosen to limit

investment risks by investing mainly in allowed investment pools. The pools are 2a7-like investment pools

and manage interest rate risk by limiting the weighted average maturity of their portfolios, manage credit

risk by investing in mainly governmental and other highly rated securities, manage concentration of credit

risk by limiting investment in any one issuer to less than 5% of the portfolio and manage custodial credit

risk by requiring third party custody and safekeeping.

Interest rate risk

In accordance with the investment policy, the exposure to declines in fair value of investments outside of

the pools is managed by matching the investments to a specific cash flow requirement.

Credit risk

As of September 30, 2022, Standard & Poor’s rated the investment in Florida Local Government

Investment Trust investment pool AAA, Florida Local Government Investment Day to Day AAA, and

Florida Local Government Surplus Fund Trust AAA. As of September 30, 2022, all U.S. Instrumentalities

held by the County were rated AA+. The investment policies of the County manage credit risk by limiting

investments in U.S. Instruments to the two highest ratings issued by nationally recognized statistical

rating organizations.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

53

3. DEPOSITS AND INVESTMENTS – CONTINUED

Investments – Continued

Concentration of credit risk

The investment policies of the County diversify the portfolio by limiting the maximum percentage of

various types of investments that can be purchased. The investment policy maximum percentages for

the current portfolio are 50% for U.S. agencies and instrumentalities and 50% for repurchase

agreements. As of September 30, 2022, 17.80% of the County’s investments are in the Federal Farm

Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National

Mortgage Association, Fresb Multi-Family Mortgage Pass Through, and United States Treasury Notes.

These investments are 1.3%, 5.5%, 5.3%, 1.6%, 1.2%, and 2.9% respectively, of the County’s total

investments.

Custodial credit risk.

Federated Money Market, U.S. Treasury bills, and U.S. instrumentalities are held by the County’s agent

in the County’s name in accordance with the Okaloosa County Investment Policy requiring third party

custody and safekeeping.

The County had the following investment types by issuer and effective duration presented in terms of

years:

Weighted Average Credit Percentage

Security type Fair Value Duration (Years) Rating of Portfolio

Long term investments:

United States government agency

obligations 59,028,224$ 0.152 AA+ 17.80%

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

54

4. FAIR VALUE OF INVESTMENTS

The County measures and records its investments using fair value measurements guidelines established

by generally accepted accounting principles. These guidelines recognize a three-tiered fair value

hierarchy as follow:

Level 1 – Quoted prices (unadjusted) for identical assets in active markets that a government can access

at the measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for an asset, either

directly or indirectly. These investments are valued using the valuation multiple approach.

Level 3 – Unobservable inputs for an asset.

Okaloosa County has the following recurring fair value measurements as of September 30, 2021:

Short-Term Bond Fund- FLGIT– Maximum of 75% of the total investment portfolio. Valued at the daily

closing price as reported by the fund. These funds are required to publish their daily net asset value

(NAV) and to transact at that price. These funds held by FLGIT are deemed to be actively traded.

US Treasuries/Agencies/Instrumentalities – Maximum of 50% of the total investment portfolio. Valued at

market prices for similar assets in active markets.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

55

4. FAIR VALUE OF INVESTMENTS – CONTINUED

At September 30, 2022, Okaloosa County had the following recurring fair value measurements:

Fair Value Level 1 Level 2 Level 3

Federal farm credit bank 4,426,950$ -$ 4,426,950$ -$

Federal home loan bank 18,320,750 - 18,320,750 -

Federal home loan mortgage corporation 17,566,126 - 17,566,126 -

Federal national mortgage association 5,283,340 - 5,283,340 -

Fresb multifamily mortgage pass thru 3,813,178 - 3,813,178 -

United States treasury note 9,617,880 - 9,617,880 -

TOTAL 59,028,224 -$ 59,028,224$ -$

Investments measured at the net

asset value (NAV)

FL safe 5,024,100

Florida fixed income trust 54,151,471

Florida local government

Investment trust - investment pool 41,375,764

TOTAL INVESTMENTS MEASURED

AT FAIR VALUE

159,579,559

TOTAL INVESTMENTS MEASURED

AT AMORTIZED COST

173,235,619

TOTAL INVESTMENTS AT

SEPTEMBER 30, 2022

332,815,178$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

56

5. RECEIVABLES/ UNEARNED AND UNAVAILABLE REVENUE

Receivables as of September 30, 2022 for the government’s individual major funds and nonmajor

governmental, nonmajor enterprise, internal service, and fiduciary funds in the aggregate, including the

applicable allowances for uncollectible accounts, are as follows:

Less: Net

Due From Allowance Total

Accounts Lease Other Total for Doubtful Receivables

Funds Receivable Receivable Governments Receivables Accounts Sept 30, 2022

General 196,251$ 16,402,809$ 6,739,947$ 23,339,007$ -$ 23,339,007$

Tourist development 72,789 - 133,117 205,906 - 205,906

Natural disasters - - 494,363 494,363 - 494,363

Road and bridge construction 18,815,689 - 1,067,675 19,883,364 - 19,883,364

Infrastructure surtax - - 1,742,860 1,742,860 - 1,742,860

Water and sewer 4,337,177 145,202 1,427,838 5,910,217 491,532 5,418,685

Airport 4,270,693 55,279,105 2,954,639 62,504,437 411,655 62,092,782

Solid waste 865,824 - 35,525 901,349 - 901,349

EMS 5,693,407 - - 5,693,407 2,404,985 3,288,422

Nonmajor and other funds 161,692 - 1,669,204 1,830,896 - 1,830,896

TOTAL

34,413,522$ 71,827,116$ 16,265,168$ 122,505,806$ 3,308,172$ 119,197,634$

As of September 30, 2022, the County had $18,845,689 in accounts receivable related to eligible Triumph

grant expenditures incurred, paid by the County and submitted for reimbursement by the County.

Lease Receivable

Effective October 1, 2021, the County implemented the provisions of GASB Statement No. 87, which

established a single model for lease accounting based on the principle that leases are financing of the

right to use an asset. This eliminated the operating vs. capital lease classifications. Under the new

provisions of GASB Statement No. 87, the County is a lessor under 25 leases.

Governmental Activities

The County leases real property to various unrelated parties. The real property is used by the lessees for

the following purposes: retail business space, public parks, parking lots, communications towers, and a

restaurant.

The County’s lease receivable is measured at the present value of lease payments expected to be

received during the lease term, including options reasonably certain to be exercised. These agreements

have varying terms, including inception dates from September 1986 through August 2012, annual

payments of $39,000 to $255,000, and have terms from 30 to 58 years. During the year ended September

30, 2022, principal and interest received were approximately $350,363 and $476,432, respectively.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

57

5. RECEIVABLES/ UNEARNED AND UNAVAILABLE REVENUE – CONTINUED

Lease Receivable – Continued

Governmental Activities – Continued

Governmental activities future principal and interest lease payments as of September 30, 2022 are as

follows:

Year ending September 30, Principal Interest Principal Interest

2023 377,279$ 497,629$ 29,377$ 6,171$

2024 411,984 483,453 30,300 4,185

2025 446,659 469,952 24,092 2,360

2026 483,120 455,341 20,627 981

2027 527,103 439,431 5,372 29

2028-2032 3,415,247 1,904,711 - -

2033-2037 5,111,153 1,241,255 - -

2038-2042 4,510,183 417,814 - -

2043-2047 984,548 37,127 - -

2048-2052 25,765 235 - -

16,293,041$ 5,946,948$ 109,768$ 13,726$

Governmental Activities

Board Tax Collector

Business-Type Activities

The County leases real property to various unrelated parties. The real property is used by the lessees for

the following purposes: office space, rental car counter space, storage space, reclaimed water disposal,

land, and concession space.

The County’s lease receivable is measured at the present value of lease payments expected to be

received during the lease term, including options reasonably certain to be exercised. These agreements

have varying terms, including inception dates from July 2007 through February 2057, annual payments

of $4,025 to $1,561,890, and have terms from 10 to 35 years. During the year ended September 30,

2022, principal and interest received were approximately $4,446,695 and $1,636,069, respectively.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

58

5. RECEIVABLES/ UNEARNED AND UNAVAILABLE REVENUE – CONTINUED

Lease Receivable – Continued

Business-Type Activities – Continued

Business-type activities future principal and interest lease payments as of September 30, 2022

are as

follows:

Year ending September 30, Principal Interest Principal Interest

2023 34,592$ 3,941$ 6,481,687$ 1,632,592$

2024 36,862 2,826 6,691,780 1,427,330

2025 39,240 1,639 6,910,288 1,215,435

2026 34,508 405 7,088,341 996,777

2027 - - 4,777,057 808,551

2028-2032 - - 21,302,488 1,777,956

2033-2037 - - 1,745,528 94,292

2038-2042 - - 64,321 39,179

2043-2047 - - 75,165 28,335

2048-2052 - - 87,837 15,663

2053-2057 - - 54,613 2,883

145,202$ 8,811$ 55,279,105$ 8,038,993$

Business-Type Activities

Water & Sewer Airports

Excluded – Short-Term Leases

In accordance with GASB Statement No. 87, the County does not recognize a lease receivable and a

deferred inflow of resources for short-term leases. Short-term leases are certain leases that have a

maximum possible term under the lease contract of 12 months (or less), including any options to extend,

regardless of their probability of being exercised.

Excluded – Regulated Leases

The County is the lessor in certain leasing arrangements as defined by GASB Statement No. 87,

paragraphs 42 and 43 defined therein as Regulated Leases. In accordance with GASB Statement No.

87, the County does not recognize a lease receivable and deferred inflow of resources for regulated

leases. Regulated leases are certain leases that are subject to external laws, regulations, or legal rulings,

such as requirements from the U. S. Department of Transportation and the Federal Aviation

Administration. All regulated leases between the County and air carriers or other aeronautical users and

under the terms of the agreements the lessees have exclusive use of certain airport infrastructure. During

the fiscal year ended September 30, 2022, the County recognized revenues from regulated leases in the

amount of $2,433,627. These leases are subject to renewal by the County via a Board ordinance.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

59

5. RECEIVABLES/ UNEARNED AND UNAVAILABLE REVENUE – CONTINUED

Lease Receivable – Continued

Excluded – Regulated Leases – Continued

Minimum future lease payments under regulated lease agreements as of September 30, 2022, are as

follows:

Regulated Leases:

During the year ending September 30:

2023 2,252,938$

2024 2,006,905

2025 1,968,610

2026 1,959,795

2027 1,959,453

2028-2032 9,329,888

2033-2037 2,944,301

2038-2042 2,172,447

2043-2047 1,457,237

2048-2052 665,933

2053-2054 109,195

Total 26,826,702$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

60

5. RECEIVABLES/ UNEARNED AND UNAVAILABLE REVENUE – CONTINUED

Unavailable and Unearned Revenue

Governmental funds report unavailable revenue in connection with receivables that are not considered

to be available to liquidate liabilities of the current period. Governmental and proprietary funds also defer

revenue recognition in connection with resources received, but not yet earned. Unearned / unavailable

revenues as of September 30, 2022 for the government’s individual major funds and nonmajor internal

service, and fiduciary funds in the aggregate are as follows:

Funds Unavailable Unearned

General -$ 811,312$

Tourist development - 166,705

Natural disasters - 38,669,420

Water and sewer - 752,505

Airport - 884,011

EMS - 555,625

Nonmajor and other funds - 3,207,378

Total -$ 45,046,956$

Unearned revenue in the Natural Disaster grant fund represents federal grant proceeds received in

advance of meeting eligibility requirements related to the American Rescue Plan (ARP) and other grant

funds related emergency rental assistance available as a result of the COVID pandemic.

In 2019, the County entered into a reimbursement agreement and space lease with a commercial air

carrier. The agreement stipulates the air carrier will fund the construction costs of a concourse expansion

project in exchange for lease credits. These lease credits will be applied toward lease payments due

once the project is completed. Management has evaluated this transaction and determined it represents

an acquisition of net position by the Airport Enterprise Fund that applies to future periods and will not be

recognized as an inflow of resources (revenue) until that time. As of September 30, 2022, the Airport is

reporting $10,188,662 of deferred inflows of resources related to unearned revenue on the statement of

net position.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

61

6. CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2022, was as follows:

Beginning

Balance Transfers and Ending

(As Restated) Increases Decreases Adjustments Balance

GOVERNMENTAL ACTIVITIES

Capital assets, not being depreciated/

amortized

Land 17,298,589$ 1,483,045$ -$ 108,280$ 18,889,914$

Intangibles 1,146,905 - - - 1,146,905

Construction in progress 39,490,974 41,769,865 - (21,553,111) 59,707,728

Works of art 29,195 - - - 29,195

Total capital assets not being

depreciated/ amortized 57,965,663 43,252,910 - (21,444,831) 79,773,742

Capital assets, being depreciated/

amortized:

Buildings 142,620,124 281,895 - 11,627,748 154,529,767

Improvement other than buildings 51,097,411 46,853 - 6,880,048 58,024,312

Intangibles 2,380,749 32,306 - - 2,413,055

Machinery and equipment 68,509,103 6,554,111 (8,186,848) 352,459 67,228,825

Machinery and

equipment - financed purchase - 523,300 - - 523,300

Right-to-use leased asset 20,755

-

- - 20,755

Infrastructure 174,373,683 - - 2,937,035 177,310,718

Total capital assets being depreciated/

amortized 439,001,825 7,438,465 (8,186,848) 21,797,290 460,050,732

Less accumulated depreciation/

amortization for:

Buildings (51,374,256) (4,142,090) - - (55,516,346)

Improvement other than buildings (19,019,423) (2,200,199) - - (21,219,622)

Intangibles (2,322,244) (37,442) - - (2,359,686)

Machinery and equipment (51,457,712) (5,889,920) 7,931,825 (420,348) (49,836,155)

Machinery and

equipment - financed purchase - (137,029) - - (137,029)

Right-to-use leased asset - (4,447) - - (4,447)

Infrastructure (100,298,338) (3,245,490) - - (103,543,828)

Total accumulated depreciated/ amortized (224,471,973) (15,656,617) 7,931,825 (420,348) (232,617,113)

TOTAL CAPITAL AMOUNTS, BEING

DEPRECIATED/ AMORTIZED , NET

214,529,852 (8,218,152) (255,023) 21,376,942 227,433,619

GOVERNMENTAL ACTIVITIES CAPITAL

CAPITAL ASSETS, NET

272,495,515$ 35,034,758$ (255,023)$ (67,889)$ 307,207,361$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

62

6. CAPITAL ASSETS – CONTINUED

Depreciation expense was charged to functions/programs as follows:

GOVERNMENTAL ACTIVITIES Depreciation Amortization

General government 3,509,050$ 22,017$

Public safety 4,325,177 -

Physical environment 292,021 -

Transportation, incl. depreciation of

general infrastructure assets 4,509,952 17,127

Economic environmental 62,591 -

Human services 307,741 -

Culture and recreation 2,531,951 2,745

Court related 1,833 -

Capital assets held by the government's internal

service funds are charged to the various

functions based on their usage of the assets 74,412 -

TOTAL DEPRECIATION EXPENSE

- GOVERNMENTAL ACTIVITIES 15,614,728$ 41,889$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

63

6. CAPITAL ASSETS – CONTINUED

Beginning

Balance Transfers and Ending

(As Restated) Increases Decreases Adjustments Balance

BUSINESS-TYPE ACTIVITIES

Capital assets, not being

depreciated/ amortized:

Land 14,765,162$ -$ -$ -$ 14,765,162$

Construction in progress 24,729,226 32,580,181 - (17,564,561) 39,744,846

Works of art 69,865 - - - 69,865

Total capital assets not being 39,564,253 32,580,181 - (17,564,561) 54,579,873

depreciated/ amortized

Capital assets, not being

depreciated/ amortized:

Buildings 89,641,750 - - 14,165,154 103,806,904

Improvement other than buildings 276,776 - - - 276,776

Intangibles 932,259 - - - 932,259

Machinery and equipment 26,864,410 2,869,589 (739,321) (362,455) 28,632,223

Right-to-use leased assets 6,564,767

-

- - 6,564,767

Infrastructure 435,156,290 3,207,006 (475,500) 3,399,407 441,287,203

Total capital assets being

depreciated/ amortized 559,436,252 6,076,595 (1,214,821) 17,202,106 581,500,132

Less accumulated depreciation

/amortization for:

Buildings (32,040,282) (2,536,162) - - (34,576,444)

Improvement other than buildings (229,121) (5,973) - - (235,094)

Intangibles (904,640) (13,762) - - (918,402)

Machinery and equipment (19,718,928) (2,339,695) 726,567 430,344 (20,901,712)

Right-to-use leased assets - (494,339) - - (494,339)

Infrastructure (171,979,347) (10,457,935) 475,000 - (181,962,282)

Total accumulated depreciated/

amortized (224,872,318) (15,847,866) 1,201,567 430,344 (239,088,273)

TOTAL CAPITAL ASSETS, BEING

DEPRECIATED/ AMORTIZED, NET 334,563,934 (9,771,271) (13,254) 17,632,450 342,411,859

BUSINESS-TYPE ACTIVITIES

CAPITAL ASSETS, NET

374,128,187$ 22,808,910$ (13,254)$ 67,889$ 396,991,732$

Depreciation expense was charged to enterprise funds as follows:

BUSINESS-TYPE ACTIVITIES Depreciation Amortization

Water and sewer 9,016,522$ 405,175$

Airport 5,535,897 900

Solid waste 244,633 -

Emergency management services 510,482 102,026

Other enterprise funds 32,231 -

TOTAL DEPRECIATION EXPENSE -

BUSINESS TYPE ACTIVITIES 15,339,765$ 508,101$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

64

6. CAPITAL ASSETS – CONTINUED

Construction Commitments

Southwest Crestview Bypass Road Construction

This project constructs a bypass in southwest Crestview from SR 85 at PJ Adams Parkway to US Hwy

90 across from Old Bethel Road. The overall budget is $199,019,000. As part of the project, the FDOT

will construct a new interchange with I-10 at an estimated cost of $83,129,000; Okaloosa County will

construct connecting roads both north and south of the new interchange at a total estimated cost of

$111,890,000. Expenditures by the County through the end of fiscal year 2022 were approximately

$52,600,000. County expenditures for fiscal year 2023 are estimated to be $22,000,000.

Water and Sewer Expansion and Renovation

The Water and Sewer System is continuing capital projects in FY2023 related to expansion, aging

infrastructure replacement/rehabilitation, and the environment. Based on the fiscal year 2023 capital

budget, total expenditures will approximate $30,255,983 on projects, which include $3,804,798 in new

equipment; $3,020,000 for the continuation of the Arbienne Waste Reclamation Facility expansion;

$1,187,443 in State Department of Transportation Projects; $621,210 for Okaloosa Island booster station

replacement; $4,073,474 to continue Sewer Rehabilitation; $45,779 for the Reclaimed Water

Transmission Main; $693,140 for the On-Site Generators at Existing Lift Stations; $5,917,435 for the

Proposed Shoal River Ranch WRF; and multiple smaller projects.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

65

7. COMPENSATED ABSENCES

Each constitutional officer’s policy for compensated absences is summarized below.

Board of County Commissioners and Supervisor of Elections

The policy of the Board of County Commissioners and the Supervisor of Elections for annual and sick

leave and compensatory time is as follows:

Employees may accrue an unlimited amount of annual and sick leave. The employees earn leave at

varying rates per month based on their work schedules.

Years of 40 Hours/ 45 Hours/ 24 Hours On/

Service Week Week 48 Hours Off

ANNUAL LEAVE

Full time employees 0-5 8 hours 9 hours 11 hours

6-10 10 hours 11 hours 14 hours

11-15 12 hours 14 hours 17 hours

16-20 14 hours 16 hours 20 hours

21-25 16 hours 18 hours 22 hours

26+ 18 hours 20 hours 25 hours

Part time employees 1 4 hours

Maximum amount paid

upon separation from service 240 hours 270 hours 336 hours

SICK LEAVE

Full time employees 8 hours 9 hours 11 hours

Part time employees 0 hours

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

66

7. COMPENSATED ABSENCES – CONTINUED

Board of County Commissioners and Supervisor of Elections – Continued

Unused sick leave will be paid to employees having ten consecutive years of service upon termination or

retirement at varying percentages based on the total unused hours: 50% for the first 480 hours; 25% for

the second 480 hours and 20% for all hours over 960.

Compensatory Time

Compensatory time is available only to hourly (non-exempt) employees. Most employees may accrue up

to 240 hours except for law enforcement and correctional officers who can accrue up to 480 hours.

Unused amounts will be paid upon termination or retirement.

Clerk of the Circuit Court

The policy of the Clerk for annual and sick leave was changed June 1, 2015 to Paid Time Off (PTO). An

employee can now accumulate and carry forward 1,000 hours of PTO from year to year. Any PTO in

excess of 1,000 hours will be forfeited after the first pay period of the calendar year. PTO is accrued

based on the schedule below. Upon retirement or termination, the employee may be paid up to a

maximum of the following schedule.

Years of Years of Balance Paid

Service Service

0 – 1 6.25 2 – 5 20% of PtO

2 – 5 7.00 6 – 10 25% of PtO

6 – 10 7.75 11 – 15 30% of PtO

11 – 15 8.50 16 – 20 40% of PtO

16 – 20 9.25 21+ 50% of PtO

21+ 10.00

Pay Period ( 26)

Hours Earned per

Upon Separation

Sheriff

The Sheriff maintains a policy providing for annual vacation and sick leave pay for all full-time non-exempt

employees. Employees are allowed to accumulate unlimited time; however, upon separation the

employee will receive compensation only for any unused annual leave up to a maximum of 240 hours.

Annual vacation leave for full-time, non-exempt employees is calculated as follows:

Less than five (5) years (8) hours per calendar month

Five (5) to ten (10) years (10) hours per calendar month

Ten (10) and more years (12) hours per calendar month

Years of Service Accrual Rate

Sick leave for non-exempt employees is accrued at eight hours per month. Unused accrued leave is

carried over from year to year. Employees terminating after 10 years of service are compensated for

unused sick leave up to a maximum of 100 hours. Certain employees are also eligible to bank over time

hours for future leave up to 120 hours.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

67

7. COMPENSATED ABSENCES – CONTINUED

Tax Collector

The policy of the Tax Collector for paid time off (PTO) is that employees are entitled to accrue leave each

pay period based on an employee’s hire date. Below is a breakdown of how leave will be earned:

Years of Service # Hours Earned

(Based on Hire Date) Weeks PtO

1 year 3 weeks 4.62

2 - 5 years 4.4 weeks 6.77

6 - 10 years 5.4 weeks 8.31

11 - 15 years 6 weeks 9.23

16 - 20 years 6.5 weeks 10.00

21+ years 7 weeks 10.77

Per Pay Period

Property Appraiser

The Property Appraiser’s policy for compensated absences provides for “paid days off” (a combination

of sick and annual leave) which may be used at the employee’s discretion. Paid days off accumulated

ratably during each year of employment at the following rates based on years of employment.

5 to 10 years

Over 10 years

192 hours per year

216 hours per year

240 hours per year

1 to 5 years

Employees are allowed to accumulate up to 360 days of paid days off for which they will be paid upon

termination of employment. Paid days off accumulated in excess of 360 hours at the end of the calendar

year are lost except for employees planning retirement. Employees planning retirement within the

following year may increase the accrued days off to a maximum of 500 hours.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

68

7. COMPENSATED ABSENCES – CONTINUED

The total amounts of accumulated annual leave and other compensated absences for all elected officials

as of September 30, 2022, are as follows:

Current Long-term

Elected Officials Portion Portion Totals

Board of county commissioners 2,504,819$ 1,747,428$ 4,252,247$

Clerk of the circuit court 134,575 155,439 290,014

Sheriff 1,678,851 2,798,086 4,476,937

Tax collector 112,945 249,573 362,518

Property appraiser - 99,364 99,364

Supervisor of elections 68,482 70,441 138,923

TOTALS

4,499,672$ 5,120,331$ 9,620,003$

The total current and long-term portions of compensated absences are shown on the face of the

government wide statement of net position using the full accrual method of accounting.

8. LANDFILL POST CLOSURE CARE COSTS

The Board is required to study, estimate, and certify to the U.S. Environmental Protection Agency through

the Florida Department of Environmental Protection the estimated cost to close and to perform certain

maintenance and monitoring functions at Baker Landfill and Wright Landfill for 30 years after closure and

Niceville Landfill for 20 years after closure. One hundred percent of the landfill capacity has been used

in the landfills, and they have all been permanently closed.

The Board is required by state and federal laws and regulations to develop its estimates using rates

normal to commercial contracting firms and is based on the amount of the landfill capacity used to date,

which is at 100% capacity as of September 30, 2022.The post closure costs are reevaluated each year.

The estimate is subject to changes resulting from inflation, deflation, technology, or changes in applicable

laws or regulations. The effect of this change in estimates has been reflected in the operations of the

Solid Waste Enterprise Fund and has increased net income by $369,821. The estimated liability for post

closure care costs has a balance of $2,056,333 as of September 30, 2022.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

69

9. INTERFUND BALANCES AND ACTIVITY

The composition of interfund balances as of September 30, 2022, is as follows:

Receivable From Payable to

Other Funds Other Funds

MAJOR FUNDS

General fund 105,858$ 263,823$

Tourist development special revenue fund 1,000,000 -

Road and bridge construction capital projects fund 500,000 -

Infrastructure surtax fund 2,000,000 -

NON-MAJOR FUNDS

Governmental funds 1,452,150 4,273,850

Internal service funds 1,263,823 1,752,000

Fiduciary funds - 32,158

6,321,831$ 6,321,831$

The composition of interfund balances with other elected officials as of September 30, 2022, is as

follows:

Receivable

From Payable to

Other Elected Other Elected

Official Official

MAJOR FUNDS

General fund 3,312,856$ 6,748,278$

Tourist development special revenue fund 3,957,880 198,396

Water and sewer enterprise fund - 10

Airport enterprise fund - 309

Emergency medical services 60 145

NON-MAJOR FUNDS

Governmental funds 205,982 328,738

Internal service funds 1,510 120

Fiduciary funds - 202,292

7,478,288$ 7,478,288$

Interfund receivables at the fund and elected official level result primarily from revenue accrued in certain

funds that are transferred to other funds. Interfund receivables and payables at the fund level also include

short term cash advances.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

70

9. INTERFUND BALANCES AND ACTIVITY – CONTINUED

Interfund transfers activity for the year ended September 30, 2022, consisted of the following:

Transfers In Transfers Out

MAJOR FUNDS

General 7,850,562$ 6,462,258$

Tourist development - 3,312,494

Airport enterprise - 2,717,725

Emergency medical services enterprise 1,944,482 -

Infrastructure surtax fund - 1,274,878

NON-MAJOR FUNDS

Governmental 7,347,735 3,375,424

17,142,779$ 17,142,779$

The County’s tourist development fund made transfers to multiple funds of the Board to fund activities

allowed by Florida Statute to include parks maintenance, parks capital projects, beach safety and beach

restoration projects in the amount of $3,312,494. The E-911 operations special revenue fund (nonmajor

governmental fund) provided approximately $1,200,000 to the general fund to supplement the Sheriff’s

communications operations. The Airport Enterprise fund made a transfer to the general fund of

approximately $2.7 million to fund law enforcement officers responsible for safety of the Destin-Fort

Walton Beach Airport operations. The General Fund made a transfer to the Emergency Medical Services

Fund of $1,911,482 to support the operations of the fund. The General Fund made a transfer to the Debt

Service Fund of $3,667,563 to cover debt payments on the 2011, 2014, and 2016 bonds and the Shoal

River Note. The Infrastructure Surtax Fund made a transfer to the Debt Service Fund of $1,274,878 to

cover certain debt payments on the 2019 bonds.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

71

10. LONG TERM DEBT

Primary Government

The following debt issues are outstanding for September 30, 2022:

Governmental Activities

REVENUE BONDS

2,020,000$

17,160,000

11,720,000

36,600,000

Total governmental activities revenue bonds 67,500,000$

$3,600,000 capital improvement revenue bond, series 2011, serial bonds with stated interest

rate of 3.72 percent compounded semi-annually through October 1, 2030; issued in

denominations of $5,000 maturity value due in annual installments of $133,000 to $259,000

from October 1, 2012 through October 1, 2030. General governmental revenues are pledged for

the payment of the bonds. Proceeds of the bonds have been used to finance the purchase of

the Newman C. brackin building to be used for office space. This issue is subject to federal

arbitrage regulations.

$22,165,000 sales tax revenue bonds, series 2014, serial and term bonds with stated interest

rates ranging from 3.0 percent to 5.0 percent compounded semi-annually through October 1,

2034; issued in denominations of $5,000 maturity value due in annual installments of $760,000

to $ 1,720,000 from October 1, 2016 through October 1, 2034 and interest only payments

October 1, 2015 - September 30, 2016. Sales tax revenues were pledged for payment of the

bonds. Proceeds of the bonds will be used to finance the construction of Crestview courthouse,

administration building and refunding the sales tax revenue bond anticipation note, series 2014.

The issue is subject to federal arbitrage regulations.

$12,960,000 sales tax revenue bonds, series 2016, serial and term bonds with stated interest

rates ranging from 3.0 percent to 5.0 percent compounded semi-annually through October 1,

2046; issued in dominations of $5,000 maturity value due in annual installments of $235,000 to

$715,000 from October 1, 2017 through October 1, 2046. Sales tax revenues were used for

payment of the bonds. Proceeds of the bonds will be used to finance the acquisition and

construction of improvements to county facilities, including additional improvements to the

Crestview courthouse. The issue is subject to federal arbitrage regulations.

$38,300,000 sales tax refunding and improvement revenue bonds, series 2019, serial and term

bonds with a stated interest rate of 4.0 percent compounded semi-annually through 2040;

issued in denominations of $5,000 maturity value due in annual installments of $810,000 to

$2,130,000 from October 1, 2020 through October 1, 2040. Sales tax revenues were pledged

for payment of the bonds. Proceeds of the bonds will be used to refund a portion of the county’s

outstanding taxable sales tax revenue bonds series 2009b and finance certain capital

improvements in and for the county, the issue is subject to federal arbitrage regulations.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

72

10. LONG TERM DEBT – CONTINUED

Primary Government – Continued

Governmental Activities – Continued

LOANS AND NOTES - DIRECT BORROWINGS

2,345,000$

19,700,000

$275,000 non-interest-bearing note with the City of Crestview, Florida. The Tax Collector

purchased land in Crestview, Florida from the City of Crestview for $800,000. The Tax Collector

paid approximately $570,000 in cash at closing. The note is to be paid in full at maturity on

September 28, 2024.

275,000

Total direct borrowings 22,320,000$

$19,700,000 private bank loan from Truist bank with fixed rate of interest of 1.26% through

November 1, 2028; interest on the Note shall be payable in semi-annual installments,

commencing May 1, 2022, ranging from $18,500 to $97,900. Principal payments are due in

annual installments, commencing November 1, 2022 ranging from $2,600,000 to $2,940,000;

the loan finances construction costs to construct communication towers and acquire certain

related emergency communication equipment established by resolution of the Board and is

secured by a lien upon and pledge of the budget from non-ad valorem revenues lawfully

available in each fiscal year until the loan is paid in full. In the event of default, the lender may

sue to protect and enforce any and all rights existing under the laws of the State of Florida, of

the United States of America, or granted and contained in the agreement, the agreement does

not contain any subjective acceleration clauses.

$2,480,000 private bank loan from Truist bank with fixed rate of interest of 2.49% through

December 1, 2035; interest on the Note shall be payable in semi-annual installments,

commencing June 1, 2021, ranging from $2,400 to $34,000. Principal payments are due in

annual installments, commencing December 1, 2021 ranging from $165,900 to $197,400; the

loan finances the acquisition of land along the Shoal River Ranch and appurtenant

improvements or such other capital improvement as established by resolution of the Board and

is secured by a lien upon and pledge of the budget from non- ad valorem revenues lawfully

available in each fiscal year until the loan is paid in full. In the event of default, the lender may

sue to protect and enforce any and all rights existing under the laws of the State of Florida, of

the United States of America, or granted and contained in the agreement, the agreement does

not contain any subjective acceleration clauses.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

73

10. LONG TERM DEBT – CONTINUED

Primary Government – Continued

Business-Type Activities

REVENUE BOND

S

WATER AND SEWER

The following parity bonds are secured by a pledge of the net revenues from the operation of

the water and sewer system:

47,115,000

Total business-type revenue bonds 47,115,000$

$67,595,000 water and sewer revenue bonds, series 2015, due in annual installments of

$760,000 to $3,940,000 through July 1, 2036; interest ranging from 2.00 percent to 3.75 percent

per annum. Proceeds from the bond were used to refund Water and Sewer Revenue Bonds,

Series 2004; Water and Sewer Revenue Bonds, Series 2006; and Water and Sewer Revenue

Note, Series 2012, as well as constructing additions to the water and sewer system, this issue is

subject to federal arbitrage regulations.

Loans - State of Florida – Direct Borrowing

The following loans from the State of Florida were obtained for construction of extensions and improvements to

the County sewer system. Water and Sewer revenue net of operating costs and debt service are pledged for

repayment of these loans.

WATER AND SEWER

2,218,679$

$8,168,888 State of Florida department of environmental protection revolving loan fund; semi-

annual payments including capitalized interest of $291,598 at 2.71% and 3.00% beginning June

15,2007 reducing to $263,938 beginning December 15, 2008 through December 15, 2026. In

the event of default, the lender may declare all unpaid principal to be immediately due and

payable. The agreement does not contain any subjective acceleration clauses.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

74

10. LONG TERM DEBT – CONTINUED

Primary Government – Continued

The following is a summary of changes in long-term debt of the Board of County Commissioners for the

fiscal year ended September 30, 2022:

Balance Due

October 1 , Balance Due

2021, as September Due Within

Restated Increases Decreases 30, 2022 One Year

GOVERNMENTAL ACTIVITIES:

REVENUE BONDS

Sales tax revenue bonds,

Series 2011 2,206,000$ -$ (186,000)$ 2,020,000$ 193,000$

Series 2014 18,085,000 - (925,000) 17,160,000 970,000

Series 2016 11,985,000 - (265,000) 11,720,000 280,000

Series 2019 37,490,000 - (890,000) 36,600,000 930,000

Less deferred amounts for

issuance discounts/ premiums 8,332,486 - (882,119) 7,450,367 -

Total revenue bonds 78,098,486 - (3,148,119) 74,950,367 2,373,000

NOTES FROM DIRECT

BORROWINGS

Private note, 2022 - 275,000 - 275,000 -

Private bank note, 2021 - 19,700,000 - 19,700,000 2,600,000

Private bank note, 2020 2,480,000 - (135,000) 2,345,000 142,000

Total direct borrowings 2,480,000 19,975,000 (135,000) 22,320,000 2,742,000

TOTAL NOTES AND PAYABLES 80,578,486 19,975,000 (3,283,119) 97,270,367 5,115,000

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

75

10. LONG TERM DEBT – CONTINUED

Primary Government – Continued

Balance Due

October 1 , Balance Due

2021, as September Due Within

Restated Increases Decreases 30, 2022 One Year

Accrued compensated absences 7,547,301$ 3,561,242$ (3,316,585)$ 7,791,958$ 3,483,879$

Estimated claims payable 5,652,720 7,956,536 (7,541,560) 6,067,696 2,021,696

Lease agreements 20,755 - (3,897) 16,858 4,462

Financed purchases 67,908 392,400 (191,014) 269,294 191,499

TOTAL GOVERNMENTAL

ACTIVITIES 13,288,684$ 11,910,178$ (11,053,056)$ 14,145,806$ 5,701,536$

BUSINESS TYPE ACTIVITIES:

Revenue bonds

Water and sewer revenue,

Series 2015 50,470,000 - (3,355,000) 47,115,000 3,515,000

Bond discounts/ premiums 6,833,413 - (455,561) 6,377,852 -

Total revenue bonds 57,303,413 - (3,810,561) 53,492,852 3,515,000

LOANS AND NOTES -

DIRECT BORROWINGS

State of Florida revolving loan

fund 2,675,456 - (456,777) 2,218,679 469,539

TOTAL LOANS AND NOTES 2,675,456 - (456,777) 2,218,679 469,539

Accrued compensated absences 1,704,824 1,058,310 (935,089) 1,828,045 1,015,793

Lease agreements 6,564,768 - (345,921) 6,218,847 529,256

Estimated closure costs payable 2,426,155 - (793,155) 1,633,000 391,714

TOTAL BUSINESS TYPE ACTIVITIES 64,109,848$ 1,058,310$ (5,995,582)$ 59,172,576$ 5,392,046$

The County adopted GASB 87, Leases, as of October 1, 2021 which changed the terminology of liabilities

formerly known as "capital leases" to "financed purchases".

Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for

them are included as part of the above totals for governmental activities. At year-end, $1,825,975 of

internal service funds compensated absences and $5,501,000 of estimated claims are included in the

above amounts.

Compensated absences are liquidated by the general and other governmental funds incurring the

expenditures. Claims liabilities are liquidated in the internal service fund.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

76

10. LONG TERM DEBT – CONTINUED

Primary Government – Continued

Leases – Governmental-Type Activities

The County has a submerged land lease for a commercial fishing pier for $4,495 a month with an implicit

interest rate of 3.12% and an expiration date in May 2026. During September 30, 2022, principal and

internet paid were $3,896 and $598, respectively.

Leases – Business-Type Activities

The Board of County Commissioners leases cardiac monitors from Zoll Medical Corporation under a

lease agreement which expires March of 2023. The lease is based on monthly payments of $9,900 and

has an implicit interest rate of 3.12%. During September 30, 2022, principal and interest paid were

$103,219 and $6,206, respectively.

The Board of County Commissioners (Okaloosa County) leases the land on which Water and Sewer’s

Water Reclamation Facility is located from the United States Government under a 30 year lease

agreement expiring in September 2037. The lease agreement contains a built in rent increase of 2% for

annual escalation factor. During September 30, 2022, principal and interest paid were $242,700 and

$186,130, respectively.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

77

10. LONG TERM DEBT – CONTINUED

Primary Government – Continued

Debt service requirements to maturity on long-term debt at September 30, 2022 are as follows:

Year ending September 30, Principal Interest Principal Interest

2023 2,373,000$ 3,045,277$ 2,742,000$ 288,463$

2024 2,490,000 2,924,688 3,182,000 251,108

2025 2,612,000 2,797,741 2,945,000 212,433

2026 2,730,000 2,665,029 2,985,000 173,217

2027 2,878,000 2,525,698 3,024,000 133,454

2028-2032 16,337,000 10,311,713 6,688,000 221,325

2033-2037 15,635,000 6,405,547 754,000 38,097

2038-2042 10,545,000 3,515,928 - -

2043-2047 8,340,000 1,658,875 - -

2048-2051 3,560,000 217,400 - -

67,500,000$ 36,067,896$ 22,320,000$ 1,318,097$

Loans and NotesRevenue Bonds

Governmental Activities

Year ending September 30, Principal Interest Principal Interest

2023 191,499$ 1,356$ 4,462$ 442$

2024 61,203 852 4,113 382

2025 16,592 324 4,278 217

2026 - - 4,005 81

269,294$ 2,532$ 16,858$ 1,122$

Governmental Activities

Financed Purchases Lease Contracts

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

78

10. LONG TERM DEBT – CONTINUED

Year ending September 30, Principal Interest Principal Interest

2023 3,515,000$ 2,306,500$ 469,539$ 58,337$

2024 3,690,000 2,130,750 482,659 45,217

2025 3,880,000 1,946,250 496,146 31,730

2026 4,075,000 1,752,250 510,111 17,866

2027 2,540,000 1,548,500 260,224 3,613

2028-2032 14,745,000 5,705,250 - -

2033-2037 14,670,000 1,681,750 - -

47,115,000$ 17,071,250$ 2,218,679$ 156,763$

Business-Type Activities

Revenue Bonds Loans and Notes

Year ending September 30, Principal Interest Principal Interest

2023 391,714$ -$ 529,256$ 181,116$

2024 391,714 - 321,818 169,931

2025 391,714 - 294,415 160,663

2026 391,714 - 313,123 151,057

2027 66,144 - 332,611 140,853

2028-2032 - - 1,984,715 528,487

2033-2037 - - 2,442,909 168,329

1,633,000$ -$ 6,218,847$ 1,500,436$

Business-Type Activities

Landfill Closure Costs Lease Contracts

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

79

11. CONDUIT DEBT

Since 1984, Okaloosa County has authorized three industrial development revenue bond issues that are

still outstanding. The original issues totaled $23,304,025 and as of September 30, 2022, $9,180,864 was

the principal liability. These bonds do not constitute an indebtedness of the County and are not a charge

against its general credit or taxing powers. The bonds are payable solely from revenues of the respective

industries to which these bond proceeds were remitted.

12. FUND BALANCES / RESTRICTED BALANCE

A schedule of the governmental fund balances for September 30, 2022 is provided below:

General Tourist Natural Road and Infrastructure

Fund Development Disaster Bridge Surtax Other Total

FUND BALANCES:

Nonspendable:

Inventory 81,613$ 344$ 3,364$ 161,154$ 26,869$ 280,383$ 553,727$

Prepaids 765,661 40,296 - - - 30,523 836,480

Restricted for:

Tourist development 1st cent - 38,428,899 - - - - 38,428,899

Tourist development 2nd cent - 3,965,500 - - - - 3,965,500

Tourist development 3rd cent - 3,392,707 - - - - 3,392,707

Tourist development 4th cent - 1,246,299 - - - - 1,246,299

Tourist development 5th cent - 1,482,820 - - - - 1,482,820

Tourist development expansion - 19,167,071 - - - - 19,167,071

Florida boating Improvements - - - - - 428,577 428,577

Capital projects - - - - - 22,104,434 22,104,434

Housing and urban development - - - - - 360,672 360,672

E- 911 operations - - - - - 670,096 670,096

Radio communications - - - - - 289,254 289,254

Law enforcement trust fund - - - - - 135,873 135,873

Police academy - - - - - 131,491 131,491

Park and stormwater projects - - - - - 2,490,860 2,490,860

Prisoner benefit fund - - - - - 1,294,398 1,294,398

Judicial innovations - - - - - 357,777 357,777

Drug abuse trust fund - - - - - 124,494 124,494

Domestic violence trust fund - - - - - 5,712 5,712

Public records - - - - - 502,750 502,750

Traffic education - - - - - 200,653 200,653

Debt service - - - - - - -

Transportation projects - - - 30,791,617 - - 30,791,617

Infrastructure projects - - - - 43,220,949 - 43,220,949

Committed to:

Planning projects 234,173 - -

- - - 234,173

Municipal benefits service units - - - - - 761,875 761,875

Assigned to:

Capital projects 1,207,000 - - - - 5,799,646 7,006,646

Natural disasters 561,600 - - - - - 561,600

Planning/Salary study 2,000,000 - - - - - 2,000,000

Fiber optic cable - - - - - 1,705,347 1,705,347

Health department - - - - - 249,789 249,789

Choctaw bay estuary - - - - - 500 500

Other 340,000 - - - - - 340,000

Unassigned:

Unassigned 32,041,228 - (564,962) - - (75,521) 31,400,745

TOTAL FUND BALANCE (DEFICIT)

37,231,275$ 67,723,936$ (561,598)$ 30,952,771$ 43,247,818$ 37,849,583$ 216,443,785$

Major Funds

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

80

13. ENCUMBRANCES

The amount of encumbrances outstanding as of September 30, 2022, is as follows:

Amount

GOVERNMENTAL FUNDS:

General fund 866,092$

Tourist development 1,234,209

Capital outlay 605,923

Other governmental 765,806

TOTAL

3,472,030$

Encumbrances at year end do not constitute expenditures or liabilities; therefore are not reflected in the

financial statements.

14. PENSION PLAN

The County participates in the Florida Retirement System (FRS) which is a cost sharing multiple employer

contributory retirement system administered by the State of Florida (State). The FRS was established in

1970 by Chapter 121, Florida Statutes. In 2002 the FRS was amended to provide a defined contribution

plan alternative to the defined benefit plan for FRS members effective July 1, 2002. Rules governing the

operation and administration of the system may be found in Chapter 60S of the Florida Administrative

Code. Chapter 112, Florida Statutes established the Retiree Health Insurance Subsidy (HIS) Program, a

cost-sharing multiple employer defined benefit pension plan to assist retired members of any state-

administered retirement system in paying the cost of health insurance.

The State of Florida Retirement System issues a publicly available stand-alone financial report (ACFR)

which includes financial statements and required supplementary information. Also available are the

pension systems actuarial reports to support the schedules of employer allocations and schedules of

pension amounts by employer. These reports are available on the division’s website at

http://www.dms.myflorida.com or by email at [email protected]. The ACFR and actuarial reports

may also be obtained by contacting the Division of Retirement at:

State of Florida Department of Management Services

Division of Retirement

Research and Education Section

P.O. Box 9000

Tallahassee, FL 32315-9000

850-488-5706 or Toll Free 877-377-1737

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

81

14. PENSION PLAN – CONTINUED

There are six classes of membership applicable to the County. Members are eligible for normal retirement

when they have met the requirements listed below. Early retirement may be taken any time after vesting

within 20 years of normal retirement age; however, there is a 5 percent benefit reduction for each year

prior to the normal retirement age.

Regular Class, Senior Management Service Class, and Elected Officers’ Class Members –

For members initially enrolled in the FRS before July 1, 2011, six or more years of creditable service and

age 62, or the age after completing six years of creditable service if after age 62. Thirty years of creditable

service regardless of age before age 62. For members initially enrolled in the FRS on or after July 1,

2011, eight or more years of creditable service and age 65, or the age after completing eight years of

creditable service if after age 65. Thirty-three years of creditable service regardless of age before age

65.

Special Risk Class and Special Risk Administrative Support Class Members –

For members initially enrolled in the FRS before July 1, 2011, six or more years of Special Risk Class

service and age 55, or the age after completing six years of Special Risk Class service if after age 55.

Twenty- five years of special risk service regardless of age before age 55. A total of 25 years of service

including special risk service and up to four years of active duty wartime service and age 52. Without six

years of Special Risk Class service, members of the Special Risk Administrative Support Class must

meet the requirements of the Regular Class. For members initially enrolled in the FRS on or after July 1,

2011, eight or more years of Special Risk Class service and age 60, or the age after completing eight

years of Special Risk Class service if after age 60. Thirty years of special risk service regardless of age

before age 60. Without eight years of Special Risk Class service, members of the Special Risk

Administrative Support Class must meet the requirements of the Regular Class.

The Deferred Retirement Option Program (DROP) is available under the FRS Pension Plan when the

member first reaches eligibility for normal retirement. The DROP allows a member to retire while

continuing employment for up to 60 months.

FRS Membership and Plan Benefits - The FRS Pension Plan provides retirement and disability benefits,

death benefits and survivor’s benefits. Members are also eligible for in-line-of-duty or regular disability

benefits if permanently disabled and unable to work. Benefits are established by State Statutes.

Retirement benefits are based on a formula comprised of age, average compensation, length of FRS

service, and membership class. Average compensation is computed as the average of an individual’s

five highest years of earnings for employees hired before July 1, 2011 or eight highest years of earnings

for employees hired on or after July 1, 2011. The amount of benefit payments is also affected by the

retirement income option chosen by the plan participant.

Pension plan participants may choose to receive benefit in retirement under one of four options which

will include a 3% cost-of-living adjustment each July (adjustments are only applicable for FRS service

earned prior to July 1, 2011).

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

82

14. PENSION PLAN – CONTINUED

If a pension plan participant leaves FRS-covered employment, the pension plan benefit is frozen until the

employee returns to FRS-covered employment or begins receiving early or normal retirement benefit.

HIS Membership and Plan Benefits - The HIS membership is available to all members within the FRS

and defined contribution Investment Plan. The benefit is a monthly payment to assist retirees of the state-

administered retirement systems in paying their health insurance costs. Eligible retirees and beneficiaries

receive a monthly HIS payment equal to the number of years of service credited at retirement multiplied

by $5. The minimum payment is $30 and the maximum payment is $150 per month, pursuant to section

Florida Statutes. To be eligible to receive a HIS benefit, a retiree under one of the state-administered

retirement systems must provide proof of eligible health insurance coverage, which can include Medicare.

Contribution Requirements - The County is required to contribute at an actuarially determined rate; these

rates are a percent of annual covered payroll. Employees are required to contribute 3% of their annual

salary, while members participating in DROP are not required to make the 3% contribution. The County’s

contractually required contribution rate includes the HIS contribution,.06% administrative and educational

fee and any applicable unfunded actuarial liability “UAL” rates. The HIS required contribution rate is

1.66% for the 2021 and 2022 FRS plan years. This contribution when combined with the employee

contribution is expected to finance the cost of the benefits earned by employees during the year, with an

additional amount to finance any unfunded accrued liability. Descriptions and contribution rates in effect

during the period ended September 30, 2022 and two preceding FRS fiscal years are as follows:

September 30, June 30, June 30, June 30,

2022 2022 2021 2020

Regular class 11.91% 10.82% 10.00% 8.47%

Senior management 31.57% 29.01% 27.29% 25.41%

Elected officials 57.00% 51.42% 49.18% 48.82%

Deferred retirement option program 18.60% 18.34% 16.98% 14.60%

Special risk regular 27.83% 25.89% 24.45% 25.48%

Special risk administrative support 38.65% 37.76% 35.84% 38.59%

For the years ending September 30, 2022, 2021, 2020, the County contributed $13,594,011,

$13,628,113, and $12,339,863 respectively, equal to 100% of the required contributions for each year.

The Florida Legislature has the authority for establishing or amending retirement legislation and related

bills of significance to members of the Florida Retirement System (FRS). Passed bills are presented to

the Governor and approved before they may be enacted into law.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

83

14. PENSION PLAN – CONTINUED

Net pension liability, deferred outflows/inflows of resources and pension expense related to the County

defined benefit pension plan - At September 30, 2022, the County reported a liability of $128,220,598 for

its proportionate share of the net pension liability. The net pension liability was measured as of June 30,

2022, and the total pension liability used to calculate the net pension liability was determined by an

actuarial valuation as of that date. The County’s proportion of the net pension liability was based on the

County’s long-term share of contributions to the FRS relative to the contributions of all participating

governments. At June 30, 2022, the County’s change in proportion was an increase from its proportion

measured as of June 30, 2021.

The following table presents the information on the County’s proportionate share of the FRS and HIS:

FRS HIS County Totals

Proportionate share of net pension liability at June 30, 2022 105,016,024$ 23,204,574$ 128,220,598$

County’s proportion at June 30, 2022 0.00282240168 0.00219084751

County’s proportion at June 30, 2021 0.00275829719 0.00209463239

Change in proportion during current year 0.00006410449 0.00009621512

At September 30, 2022, the County reported deferred outflows of resources and deferred inflows of

resources related to pensions from the following sources:

County Total

Deferred Deferred Deferred Deferred Deferred Outflow

Outflow Inflow Outflow Inflow (Deferred Inflow)

Differences between expected and actual experience 4,987,655$ -$ 602,212$ -$ 5,589,867$

Changes in assumptions 12,933,163 - - 2,259,636 10,673,527

Net difference between projected and actual earnings on

pension plan investments 6,934,194 - 33,596 6,967,790

Changes in proportion and differences between county

County contributions and proportionate share of contributions 2,868,196 4,745,559 1,815,515 382,513 (444,361)

County contributions subsequent to the measurement date 3,344,854 - 345,136 - 3,689,990

31,068,062$ 4,745,559$ 2,796,459$ 2,642,149$ 26,476,813$

FRS HIS

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

84

14. PENSION PLAN – CONTINUED

County contributions subsequent to the measurement date of $3,689,990 reported as deferred outflow

of resources will be recognized as a reduction of the net pension liability in the year ended September30,

2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be

recognized in pension expense as follows:

County Total

Reporting Year Deferred Outflow

Ending June 30, FRS HIS (Deferred Inflow)

2023 5,611,143$ (123,507)$ 5,487,636$

2024 1,868,505 55,668 1,924,173

2025 (2,429,524) 169,489 (2,260,035)

2026 17,261,847 53,136 17,314,983

2027 544,779 (227,253) 317,526

Thereafter 120,899 (118,359) 2,540

Totals 22,977,649$ (190,826)$ 22,786,823$

The total FRS pension liability in the June 30, 2021 actuarial valuation was determined based on the

discount rate using the following actuarial assumptions, applied to all periods included in the

measurement. The total pension liability is calculated using the Individual Entry Age Normal cost

allocation method, which differs from the Ultimate Entry Age Normal cost allocation method used in the

funding valuation for the system.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

85

14. PENSION PLAN – CONTINUED

FRS actuarial methods and assumptions are:

Actuarial cost allocation method

Amortization method

Equivalent single amortization period

Asset valuation method

Actuarial assumptions:

Discount rate

Long term expected rate of return, net of

investment expanse, including inflation

Municipal bond rate

Inflation

Salary increases including inflation

Morality rates were based on PUB- 2010 base table with scale

HIS actuarial methods and assumptions are:

Actuarial Assumptions:

Discount rate

Long term expected rate of return, net of

Investment expanse, including inflation

Municipal bond rate

Inflation

Salary increases including inflation

Morality rates were based on Generational PUB- 2010 with scale

6.70%

Individual Entry Age Cost

Level Percentage of Pay, Closed

30 years

Fair market value

6.70%

2.40%

3.25%

N/ A

2.40%

3.25%

3.54%

N/ A

3.54%

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

86

14. PENSION PLAN – CONTINUED

The actuarial assumptions that determined the total pension liability as of June 30, 2022 were based on

the results of an actuarial experience study for the period of July 1, 2013 – June 30, 2018.

The discount rate used for calculating the total FRS pension liability was 6.70%, The FRS plan’s fiduciary

net position was projected to be available to make all projected future benefit payments of current active

and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to

the long term expected rate of return. Because the HIS Program uses a pay-as-you-go funding structure,

a municipal bond rate of 3.54% was used to determine the total pension liability for the program (Bond

Buyer General Obligation 20-Bond Municipal Bond Index). Mortality assumptions for the FRS Pension

Plan were based on the PUB-2010 base table, projected generationally with Scale MP-2018, and

mortality assumptions for the HIS Program were based on the Generational RP-2000 with Projection

Scale BB tables.

The long term expected rate of return on Pension plan investments was not based on historical returns,

but instead is based on a forward-looking capital market economic model. The allocation policy’s

description of each asset class was used to map the target allocation to the asset classes shown below.

Each asset class assumption is based on a consistent set of underlying assumptions and includes an

adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and

geometric real rates of returns for each major asset class are summarized in the following table:

Annual Compound

Target Arithmetic Annual Standard

Asset Class Allocation Return (Geometric) Deviation

Cash 1.00% 2.60% 2.60% 1.10%

Fixed income 19.80% 4.40% 4.40% 3.20%

Global equity 54.00% 8.80% 7.30% 17.80%

Real estate (property) 10.30% 7.40% 6.30% 15.70%

Private equity 11.10% 12.00% 8.90% 26.30%

Strategic investments 3.80% 6.20% 5.90% 7.80%

100.00%

Assumed Inflation - mean 2.40% 1.30%

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

87

14. PENSION PLAN – CONTINUED

Sensitivity of the County’s proportionate share of the pension liability to changes in the discount rate is

calculated using discount rate for the respective plans, as well as what the County’s proportionate share

of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point

lower or 1-percentage point higher than the current rate:

1% Decrease 1% Increase

5.70% 6.70% 7.70%

FRS Net Pension Liability 181,617,992$ 105,016,024$ 40,967,663$

1% Decrease 1% Increase

1.16% 2.16% 3.16%

HIS Net Pension Liability 26,547,938$ 23,204,574$ 20,438,010$

Current

Discount Rate

Current

Discount Rate

Detailed information about the pension plan’s fiduciary net position is available in the separately issued

FRS financial report.

The aggregate pension expense for the year ended September 30, 2022 for all plans was $16,038,004.

15. POSTEMPLOYMENT BENEFITS

Board of County Commissioners

Plan Description

In addition to providing the pension benefits described, the Board of County Commissioners and all other

elected officials except for the Sheriff and Tax Collector (the County) provides post-employment health

care and dental insurance benefits (OPEB) for eligible retired employees and their spouses through a

single-employer defined benefit plan administered by Blue Cross Blue Shield of Florida

(BCBSFL).Pursuant to the provision of Section 112.0801, Florida Statutes, employees who retire from

the County and eligible dependents, may continue to participate in the group insurance plan. Retirees

and their eligible dependents shall be offered the same health and hospitalization insurance coverage as

is offered to active employees at a premium cost of no more than the premium cost applicable to active

employees. The County subsidizes the premium rates paid by the retirees by allowing them to participate

in the plan at blended group (implicitly subsidized) premium rates for both active and retired employees.

These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future

claims are expected to result in higher costs to the plan on average than those of active employees. In

order for OPEB obligations to be considered funded, an irrevocable trust fund must be used. The County

has elected not to “fund” the total OPEB obligation, but instead chose to appropriate and set aside

amounts annually in the Board’s Self Insurance Fund so that the total OPEB liability is completely offset

by cash and investments over time. Benefits, benefit levels, employee contributions and employer

contributions are governed and amended through its personnel manual by the County’s Self Insurance

Fund with approval by the Board. The plan does not issue a separate report.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

88

15. POSTEMPLOYMENT BENEFITS

Board of County Commissioners – Continued

Plan Membership

Inactive plan members or beneficiaries currently receiving benefits 79

Inactive plan members entitled to but not yet receiving benefits -

Active plan members 889

968

Benefits Provided

The County provides post-employment health care and dental benefits to its retirees. To be eligible for

benefits an employee must retire under the County’s retirement plan and must have been covered under

the medical plan as an active employee immediately prior to retirement. Elected officials are not eligible

for benefits if they qualify for retirement.

All health care benefits are provided through the County’s health care provider, BCBSFL. The benefit

levels are the same as those afforded to active employees. Benefits include general inpatient and

outpatient medical services; dental care; and prescriptions. Upon a retiree reaching age 65 years of age,

Medicare becomes the primary insurer and the County’s plan becomes secondary.

Contributions

The County contracted Insurance Broker negotiates the premium rates with BCBSFL. Retirees and

beneficiaries currently receiving benefits are required to contribute 100% of their current premium costs.

The County contributes the remainder to cover the costs of providing the benefits to the retirees via the

insured plan. Active employees do not contribute to the plan until retirement.

Total OPEB Liability

The total OPEB liability was actuarially determined based on several actuarial assumptions, using the

actuarial measurement date of September 30, 2021. Projections of benefits for financial reporting

purposes are based on the substantive plan (the plan as understood by the employer and plan members)

and include the types of benefits provided at the time of each valuation and the historical pattern of

sharing of benefit costs between the employer and plan members to that point. The actuarial methods

and assumptions used include techniques that are designed to reduce short-term volatility in actuarial

accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the

calculations. The actuarial assumptions used in the September 30, 2022 OPEB Plan valuation were

based on the results of an actuarial study for the period from October 1, 2020 through September 30,

2021.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

89

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Board of County Commissioners – Continued

Actuarial Assumptions

The following assumptions were used in determining the total OPEB liability:

Actuarial cost method Entry age normal

Inflation 2.25%

Discount rate The discount rate was changed from 2.41% as of the previous measurement date

to 2.19% as of September 30, 2021. This change is reflected in the schedule of

changes in total OPEb liability.

Salary increases Salary increase rates developed in the 5-year experience study dated January

15, 2019 and covering the period 2012 through 2017; 3.0% - 8.5% , including

inflation.

Retirement age Retirement rates developed in the 5-year experience study dated January 15,

2019 and covering the period 2012 through 2017; varies by age.

Mortality Mortality tables used for regular and special risk class members in the July 1,

2021 actuarial valuation of the Florida retirement system. They are based on the

results of a statewide experience study covering the period 2013 through 2018

and include generational projections.

Healthcare cost trend

rates

Based on the getzen model, with trend starting at 8.34% on 10/1/2022 (to reflect

actual premiums) followed by 5.75% on 10/1/2023 and gradually decreasing to an

ultimate trend rate of 3.75%

Aging factors Based on the 2013 SOA study “health care costs – from birth to death”

Expenses Administrative expenses are included in the per capital health costs.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

90

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Board of County Commissioners – Continued

Change in Net OPEB Liability

Plan

Net OPEB Fiduciary Net OPEB

Liability Net Position Liability

(a) (b) (a) - (b)

Balances at September 30,2021 4,986,264$ -$ 4,986,264$

Changes for the year:

Service cost 352,112 - 352,112

Interest 126,559 - 126,559

Difference in expected and actual

experience of the total OPEB liability (821,021) - (821,021)

Changes of assumptions (106,417) - (106,417)

Contributions - 173,913 (173,913)

Benefit payments (173,913) (173,913) -

NET CHANGES (622,680) - (622,680)

BALANCES AT SEPTEMBER 30, 2022 4,363,584$ -$ 4,363,584$

Increase (Decrease)

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

91

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Board of County Commissioners – Continued

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

1% Current 1%

Decrease Discount Rate Increase

1.19% 2.19% 3.19%

Net OPEB liability 4,949,754$ 4,363,584$ 3,873,357$

Sensitivity of the Net OPEB Liability to Changes in the Healthcare Trends Rates:

Current

Healthcare Cost

1% Trend Rate 1%

Decrease Assumption Increase

Net OPEB liability 4,054,842$ 4,363,584$ 4,737,277$

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to

OPEB

For the year ended September 30, 2022, the Board recognized OPEB expense of $290,639. On

September 30, 2022, the Board reported deferred outflows of resources and deferred inflows of resources

related to OPEB from the following sources:

Deferred Deferred

Outflows of Inflows of

Resources Resources

Difference between expected and actual experience -$ 1,274,832$

Changes in assumptions 216,927 321,944

Contributions subsequent to the measurement date 258,870

475,797$ 1,596,776$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

92

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Board of County Commissioners – Continued

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to

OPEB – Continued

Deferred outflows of resources related to OPEB of $258,870 resulting from the Board’s contributions

subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year

ending September 30, 2023. Other amounts reported as deferred outflows of resources and deferred

inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year ended September 30:

2023 188,032$

2024 188,032

2025 188,032

2026 188,032

2027 168,137

Thereafter 459,584

Total 1,379,849$

Sheriff

Plan Description

The Okaloosa County Sheriff’s Office (OCSO) administers a single-employer defined benefit healthcare

plan (“the Plan”). The Plan provides healthcare insurance for eligible retirees and their spouses through

the Sheriff’s group health insurance plan, which covers both active and retired members. Employer

contribution rates for retirees vary based on the type of retirement, years of service, and type of coverage.

The Plan does not issue a publicly available financial report but OPEB expenses are reflected in the

Sheriff’s internal service fund within the County’s Comprehensive Annual Financial Report (CAFR).

Plan membership:

Inactive plan members or beneficiaries currently receiving benefits 24

Inactive plan members entitled to but not yet receiving benefits -

Active plan members 362

386

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

93

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Sheriff – Continued

Contributions and Funding Policy

Retirees and beneficiaries currently receiving medical/ prescription benefits are required to make monthly

premium contributions in order to maintain their coverage. The single retiree premium is paid by the

OCSO for retirees with at least 20 years of service, until the retiree reaches age 65. Effective October 1,

2010 that benefit is no longer available except to retirees that met the criteria as of September 30, 2010.

Effective June 2011, the OCSO instituted a policy whereby retiring members with thirty years of service

with the agency will receive a 50% premium subsidy on their retired employee coverage. This subsidy is

limited to five years from their retirement date or until they reach age 65, whichever comes first.

Dependent coverage is paid by the retiree. The amount of the premium contribution may change from

time to time. Surviving spouses of retirees are eligible to continue coverage under the plan, but must

continue to pay the full premium. However, the premiums for health coverage for surviving spouses and

any dependent children of officers who had sustained catastrophic injuries or death in the line of duty are

paid fully by the OCSO as prescribed by FS Sec 112.19(g) and 112.19(h)1.

Total OPEB Liability

The total OPEB liability was actuarially determined based on several actuarial assumptions, using the

actuarial measurement date of September 30, 2021. Projections of benefits for financial reporting

purposes are based on the substantive plan (the plan as understood by the employer and plan members)

and include the types of benefits provided at the time of each valuation and the historical pattern of

sharing of benefit costs between the employer and plan members to that point. The actuarial methods

and assumptions used include techniques that are designed to reduce short-term volatility in actuarial

accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the

calculations.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

94

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Sheriff – Continued

Actuarial Assumptions

Actuarial cost method Entry age normal

Inflation 2.25%

Discount rate 2.19%

Salary increases Salary increase rates used in the July 1, 2021 actuarial valuation of the Florida

retirement

Systems; 3.4% - 7.8% , including inflation

Retirement age Retirement rates used in the July 1, 2021 actuarial valuation of the Florida retirement

system. They are based on the results of a state wide experience study covering the

period 2013 through 2018.

Mortality These rates were taken from adjusted Pub-2010 mortality tables published by the

Society of Actuaries (SOA) with generational mortality improvements using scale MP-

2018. Adjustments to referenced tables are based on the results of a state-wide

experience study covering the period 2013-2018.

Healthcare cost trend

rates

Based on the getzen model, with trend starting at 6.00% for 10/1/2022 (0.00% for

premiums) , followed by 5.75% on 10/1/2023 and gradually decreasing to an ultimate

trend rate of 3.75%.

Aging factors Based on the 2013 SOA Study “health care costs – from birth to death”.

Expenses Administrative expenses are include in the per capital health costs.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

95

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Sheriff – Continued

Change in Net OPEB Liability

Plan

Total OPEB Fiduciary Net OPEB

Liability Net position Liability

(a) (b) (a) - (b)

Balances at September 30, 2021 6,003,947$ -$ 6,003,947$

Changes for the year:

Service cost 290,699 - 290,699

Interest 148,675 - 148,675

Difference in expected and actual

experience of the total OPEB liability 453,591 - 453,591

Changes of assumptions 734,353 - 734,353

Contributions - 251,142 (251,142)

Benefit payments (251,142) (251,142) -

NET CHANGES

1,376,176 - 1,376,176

BALANCES AT SEPTEMBER 30, 2022

7,380,123$ -$ 7,380,123$

Increase (Decrease)

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

1% Current 1%

Decrease Discount Rate Increase

1.19% 2.19% 3.19%

Net OPEB Liability 8,190,652$ 7,380,123$ 6,694,289$

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

Healthcare

1% Cost 1%

Decrease Trend Rates Increase

Net OPEB Liability 6,395,328$ 7,380,123$ 8,364,393$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

96

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Sheriff – Continued

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to

OPEB

For the year ended September 30, 2022, the OCSO recognized OPEB expense of $490,117. On

September 30, 2022, the OCSO reported deferred outflows of resources and deferred inflows of

resources related to OPEB from the following sources:

Deferred Deferred

Outflows of Inflows of

Resources Resources

Difference between expected and actual experience 603,821$ -$

Changes in assumptions 684,735 416,759

Contributions subsequent to the measurement date 358,856 -

1,647,412$ 416,759$

Deferred outflows of resources related to OPEB of $358,856 resulting from the OCSO’s contributions

subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year

ending September 30, 2023. Other amounts reported as deferred outflows of resources and deferred

inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year ended September 30:

2022 50,743$

2023 50,743

2024 50,743

2025 50,743

2026 50,743

Thereafter 618,082

Total 871,797$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

97

15. POSTEMPLOYMENT BENEFITS – CONTINUED

Tax Collector

The Okaloosa County Tax Collector’s Office (the Tax Collector) provides certain continuing health care

and life insurance benefits for its retired employees. This is considered a single-employer defined benefit

OPEB plan administered by the Tax Collector (the TC’s OPEB Plan). Medical benefits are provided

through comprehensive plans and are made available to employees upon actual retirement and meeting

certain eligibility requirements. For purposes of measuring the net OPEB liability, deferred outflows of

resources, deferred inflows of resources related to OPEB and OPEB expense, the Tax Collector

recognizes benefit payments when due and payable in accordance with the benefit terms. Life insurance

coverage is not considered in this valuation.

As of September 30, 2022, the Tax Collector’s OPEB plan reports a net OPEB liability of $98,922,

deferred outflows of resources of $37,794 and deferred inflows of resources of $29,065 as of September

30, 2022. For the year ended September 30, 2022, the Tax Collector’s OPEB plan recognized OPEB

expense of $4,499. These amounts are recognized in the government-wide financial statements as part

of governmental activities. Life insurance coverage is not considered in this valuation.

Due to the insignificant amounts involved, management has elected not to provide the detailed footnotes

as required by generally accepted accounting principles in the United States of America.

The aggregate OPEB expense for the year ended September 30, 2022 for all plans was $785,255.

16. RISK MANAGEMENT

The County is exposed to risk of loss for claims and judgments for public liability, workers’ compensation,

employee medical benefits and other special risks. The County uses the Self Insurance Internal Services

Fund to account for all risks from workers’ compensation loss, general liability, and medical benefit claims

for all County employees except those of the Sheriff, from catastrophic damage to real and tangible

property and from special risk policies for the Board. The Tax Collector does not participate in the Board’s

medical benefit claims program, but it does participate in all others. A mixture of commercial insurance

coverage and self-insurance, which is described below, manages the risk to the County. There has been

no significant reduction in insurance coverage from the prior fiscal year, and insurance coverage has

been sufficient to cover all claims made in the prior three fiscal years.

Method of Risk Management

Public Liability

Florida Statutes 768.28(5) limits the maximum County liability for claims and judgments by any one

person and any one incident to $200,000 and $300,000, respectively. The County self-insures public

liability claims for automobile, general and professional liability. A third party administrator manages

claims. Currently, the County retains the risk for the first $50,000 for automobile liability, and $100,000

for general and professional liability for each claim or incident. A third party administrator manages the

claims.

The Sheriff maintains a commercial insurance policy for public liability and bears no risk of loss under

this type of coverage.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

98

16. RISK MANAGEMENT – CONTINUED

Method of Risk Management – Continued

Employee Medical Benefits

The Board of County Commissioners and all other elected officials of Okaloosa County, except the Sheriff

and Tax Collector, use a fully insured commercial insurance plan to fund employee medical benefits. The

Board of County Commissioners or elected official pays the premiums for the employees while the

individual pays for dependent and retiree coverage. The County bears no risk of loss under this type of

coverage.

The Sheriff and Tax Collector utilize a self-funded health plan to provide comprehensive medical benefits

to the employees, retirees and their dependents by participating in the Florida Sheriffs Employee Benefit

Trust (FSEBT). The FSEBT was established in 1984 by several Florida Sheriffs for the main purpose of

providing group health, life, and disability insurance benefits for all classes of employees of Florida

Sheriffs’ offices and associated governmental entities. The Sheriff’s and Tax Collector’s plans are self-

funded coverage up to an agreed upon retention limit. Should a claim reach the retention limit, the Sheriff

and Tax Collector are covered through excess coverage and aggregate stop-loss reinsurance offered by

the FSEBT. The limits for the Sheriff and Tax Collector are $200,000 and $200,000, respectively, on an

individual basis in a plan year and $600,000 and $500,000, respectively, on an aggregate basis. The

Sheriff’s and Tax Collector’s incurred by not reported health claims are separately calculated under the

plans, however, all other financial information is pooled with the Trust. The amounts attributable to the

Sheriff and Tax Collector are reflected in the amounts held by others for benefits at September 30, 2022.

Participation in the FSEBT generally requires a thirty-six-month commitment period. The commitment

period for the Sheriff and the Tax Collector ends in September 2025 and July 2024, respectively. The

FSEBT provides annual audited financial statements to its members.

The Sheriff uses an internal service fund to account for risks from medical benefit claims. Claim

expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of

that loss can be reasonably estimated. At September 30, 2022, the amount of these liabilities was

$532,749. This liability has been determined based on an actuarial evaluation of all claims reported and

all claims incurred but not reported (IBNR) as of September 30, 2022. Claim liabilities are calculated

considering the effects of inflation, recent claim settlement trends including frequency and amount of

payouts and other economic and social factors.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

99

16. RISK MANAGEMENT – CONTINUED

Method of Risk Management – Continued

Employee Medical Benefits – Continued

The Tax Collector uses an internal service fund to account for risks from medical benefit claims. Claim

expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of

that loss can be reasonably estimated. At September 30, 2022, the amount of these liabilities was

$33,947. This liability has been determined based on an actuarial evaluation of all claims reported and

all claims incurred but not reported (IBNR) as of September 30, 2022. Claim liabilities are calculated

considering the effects of inflation, recent claim settlement trends including frequency and amount of

payouts and other economic and social factors.

2022 2021

Claims liability at beginning of year 393,720$ 361,136$

Current year claims and estimated changes 5,871,257 8,369,172

Claims payments (5,698,281) (8,336,588)

Claims liability at end of year 566,696$ 393,720$

Crime Coverage

The Board purchases crime coverage against theft of money and securities with a $25,000 deductible.

All of the other elected officials, except the Sheriff, are covered under the policy. Florida Statute requires

certain classes of employees (law enforcement) be provided with a special death and disability benefit.

The Board purchases a commercial policy. The County bears no risk of loss under this type of coverage.

The Sheriff insures this exposure separately.

Property Insurance

The County self-insures the risk of physical loss to its real property, business property and equipment.

The County retains the risk of the first $50,000 of physical damage to County property. In the case of a

named storm, the self-insurance retention changes to a 3% deductible on each structure with a minimum

deductible of $100,000 on all damaged structures for a capped deductible of $5,000,000 per storm.

Effective October 2015, the County insures vehicles valued at $25,000 and above and retains the risk for

the first $10,000 of physical damage.

Workers’ Compensation

The County contracts with a third party administrator to have its workers’ compensation claims

processed. The County retains risk for all claims up to $500,000 per incident. Excess insurance is

purchased to cover losses up to a statutory limit for workers’ compensation and $1,000,000 for employers’

liability.

The Sheriff participates in the Florida Sheriffs’ Workers’ Compensation Self Insurance Program. It is a

fully insured, guaranteed cost program with a deductible trust fund and insurance with a commercial

carrier. The Sheriff retains no risk.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

100

16. RISK MANAGEMENT – CONTINUED

Claim Liabilities for Retained Risk

Claim liabilities for workers’ compensation, general liabilities (including errors and omissions), and auto

liability (both bodily injury and property damage) have been determined based on an actuarial evaluation

of all claims reported and all claims incurred but not reported (IBNR) as of September 30, 2022. Claim

liabilities are calculated considering the effects of inflation, recent claim settlement trends including

frequency and amount of payouts and other economic and social factors. The actuarial estimation of

ultimate losses does not include any future recoveries from the Florida Special Disability Fund,

subrogation or third party liens, etc. except to the degree they are implicitly included in the trending

process of estimating ultimate losses. The ultimate loss calculation does take into consideration specific

excess reinsurance recoverable.

Claims liabilities recognized in the Self Insurance Fund of the Board of County Commissioners at

September 30, 2022 were as follows:

Current Long- term Total

Workers’ compensation 992,000$ 3,342,000$ 4,334,000$

General liability 283,000 585,000 868,000

Automobile liability 127,000 110,000 237,000

Property 53,000 9,000 62,000

Total claims liability recognized 1,455,000$ 4,046,000$ 5,501,000$

Funding of Claims Liabilities

The Self Insurance Fund charges the other funds of the Board and other participating elected officials for

the cost of claim liabilities based on actuarially projected budget requirements for expected yearly cash

payouts. This funding method results in a deficit fund balance that will be charged back to the other funds

over a reasonable period of time so that service fund revenues and expenses will be approximately equal.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

101

16. RISK MANAGEMENT – CONTINUED

Reconciliation of Claims Liabilities

Workers’ General Workers’ General

Compensation Liability Automobile Property Total Compensation Liability Automobile Property Total

Unpaid claims and adjustment expenses at beginning of year 4,257,000$ 698,600$ 244,000$ 60,000$ 5,259,600$ 4,416,645$ 779,913$ 208,055$ 11,387$ 5,416,000$

Incurred claims and claim adjustment expenses

a) Provision for insured events of current fiscal year 1,390,000 313,000 70,000 93,000 1,866,000 1,973,000 347,000 67,000 60,000 2,447,000

b) Increases (decreases) in provision for insured events

of prior fiscal years (483,000) 165,000 159,000 18,000 (141,000) (501,000) 78,000 37,000 (381,000) (767,000)

Total incurred claims and claim adjustment expenses payments 907,000 478,000 229,000 111,000 1,725,000 1,472,000 425,000 104,000 (321,000) 1,680,000

a) Claims and claim adjustment expenses attributable to

insured events of current fiscal year (134,000) (18,600) (6,000) (60,000) (218,600) (935,645) (148,313) (7,055) (4,387) (1,095,400)

b) Claims and claim adjustment expenses attributable to

insured events of prior fiscal year (696,000) (290,000) (230,000) (49,000) (1,265,000) (696,000) (358,000) (61,000) 374,000 (741,000)

TOTAL PAYMENTS

(830,000) (308,600) (236,000) (109,000) (1,483,600) (1,631,645) (506,313) (68,055) 369,613 (1,836,400)

UNPAID CLAIMS AND CLAIM ADJUSTMENT EXPENSES

AT THE END OF THE YEAR

4,334,000$ 868,000$ 237,000$ 62,000$ 5,501,000$ 4,257,000$ 698,600$ 244,000

$ 60,000$ 5,259,600$

As of September 30, 2022 As of September 30, 2021

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

102

17. COMMITMENTS AND CONTINGENCIES

Wastewater Service Interlocal Agreement with Fort Walton Beach

In 2009, the Board adopted the Wastewater Service Interlocal Agreement (Agreement) with the City of

Fort Walton Beach (City). The Agreement outlines a long-term association for the treatment of the City’s

influent wastewater flow at a set percentage of the County’s base sewer rate plus a locked-in annual rate

escalator. The agreement provides other ancillary benefits to the City such as the provision of “no cost”

tertiary treated effluent for use as irrigation water at the City’s 36-hole municipal golf club. The Agreement

is effective for 30 years and can be automatically extended for up to two additional terms for a period of

ten years for each extension term.

The City is to be billed monthly at a rate equal to $2.46 per each 1,000 gallons of wastewater flow.

Additionally, the City pays to the County the Sewer Readiness to Serve Fee, which is equal to $3,750

per month. Beginning March 2011, and each year thereafter, the Readiness to Serve Fee increases by

3% annually. Service to the City began March 2010. Fees of $2,987,449 paid by the City during 2022 are

reflected as Charges for Services in the Water and Sewer fund. The minimum commitment to the County

under the Agreement is as follows:

Fiscal Year Ending September 30, Payment

2023 65,120$

2024 67,074

2025 69,086

2026 71,159

2027 73,294

2028-2032 400,805

2033-2037 464,645

2038-2039 205,958

TOTAL 1,417,141$

Grants

Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor

agencies, principally the federal government. Any disallowed claims, including amounts already collected,

may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be

disallowed by the grantor cannot be determined at this time although the Board expects such amount, if

any, to be immaterial.

Lawsuits

The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently

determinable, it is the opinion of the Board’s management that resolution of most of these matters will

not have a material adverse effect on the financial condition of the Board.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

103

17. COMMITMENTS AND CONTINGENCIES – CONTINUED

Inmate Health Services Agreement

The County has in place an Inmate Health Service Agreement for which a contractor has assumed the

responsibilities of the provision for certain health care services to be delivered to individuals in the custody

and control of the County. The annual compensation is based on an average daily population of the

inmates served; however, there is an annual limited exposure of $3,067,308 in the contract. Health

service expenses above these amounts are the responsibility of the County. During the year ended

September 30, 2022, the County incurred additional expenses of $593,192 as actual costs exceeded the

annual exposure amount.

18. RELATED ORGANIZATIONS

Library Cooperative

The Okaloosa County Board of County Commissioners entered into an inter-local agreement with six (6)

municipalities located within Okaloosa County, Florida to provide for operation of a countywide public

library system. The governing body of the cooperative is the Okaloosa County Public Library Cooperative

Board made up of one appointee from each municipality and the County. Capital assets remain the

property of the participating municipalities. Under the agreement, the County agreed to provide annual

funding to the cooperative.

The current agreement was entered into in September 2021 and shall end or be renewed December

2022. The Okaloosa County Board of County Commissioners’ contribution to the library cooperative for

the year ended September 30, 2022 was $753,943. In addition, approximately $103,490 of allocable

indirect costs was charged to the fund. These charges were treated as an in-kind contribution by the

County during the year ended September 30, 2021. The future commitment to the library cooperative in

2023 is $784,912.

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

104

19. CHANGE IN ACCOUNTING PRINCIPLES

Governmental Accounting Standards Board Statement No. 87, Leases, was implemented as of October

1, 2021 during fiscal year 2022. The new requirements require the reporting of certain lease assets and

liabilities which were previously not reported. The result of these changes had no effect on the beginning

net position.

Governmental Activities

Balances

September 30,

2021 as

Previously

Reported

Changes to

Implement

GASB No. 87

Balances

October 1, 2021,

as Restated

Lease receivable -$ 16,739,581$ 16,739,581$

Capital assets, depreciable 214,509,097 20,755 214,529,852

Long-term debt, lease contracts - 20,755 20,755

Deferred inflows of resources related

to lease contracts - 16,739,581 16,739,581

214,509,097$ 33,520,672$ 248,029,769$

Business-type Activities

Balances

September 30,

2021 as

Previously

Reported

Changes to

Implement

GASB No. 87

Balances

October 1, 2021,

as Restated

Lease receivable -$ 59,582,296$ 59,582,296$

Capital assets, depreciable 327,999,167 6,564,767 334,563,934

Long-term debt, lease contracts - 6,564,768 6,564,768

Deferred inflows of resources related

to lease contracts - 59,582,296 59,582,296

327,999,167$ 132,294,127$ 460,293,294$

OKALOOSA COUNTY, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

105

20. PRIOR PERIOD ADJUSTMENT

The County identified two agreements which should have been included in the prior year’s

implementation of GASB 84, Fiduciary Activities. This change in accounting principle is required to be

applied retroactively and therefore, the County restated the beginning net position of the Custodial Funds

in the statement of changes in fiduciary net position as follows:

September 30, 2021 Change in

Balance as Accounting October 1, 2021

Previously Reported Principle Balance

Cash and cash equivalents 7,277,478$ 6,002,316$ 13,279,794$

Net position restricted for individuals,

organizations an other governments 4,981,972$ 6,002,316$ 10,984,288$

21. SUBSEQUENT EVENTS

The County has evaluated events and transactions that occurred between September 30, 2022, and

March 29, 2023, which is the date that the financial statements were available to be issued, for possible

recognition or disclosure in the financial statements. The following subsequent event is noted:

In August 2022, the County amended and restated its interlocal agreement with the City of Destin

whereas the County and the City are working together to acquire and redevelop public beach property.

The parties agreed to fund the cost of acquisitions at 59% County and 41% City for Phase I and 50%

each for Phase II. Total costs for both phases are approximately $32,500,000. In November 2022,

approximately $14,000,000 of Tourist Development funds were disbursed from the County to the City to

fund an acquisition of land for public beach use.

No other subsequent events have been recognized or disclosed.

(THIS PAGE INTENTIONALLY LEFT BLANK)

REQUIRED SUPPLEMENTARY INFORMATION

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

GENERAL FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

106

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Taxes 76,845,603$ 76,845,603$ 77,204,298$ 358,695$

Licenses and permits 25,000 25,000 25,500 500

Intergovernmental 27,054,304 45,734,977 37,368,185 (8,366,792)

Charges for services 17,038,698 17,780,862 21,291,578 3,510,716

Fines 11,000 46,953 100,722 53,769

Investment income (loss) 400,000 552,356 (1,006,662) (1,559,018)

Miscellaneous 2,091,161 2,967,832 3,652,707 684,875

Total revenues 123,465,766 143,953,583 138,636,328 (5,317,255)

EXPENDITURES

Current

General government 38,453,027 38,615,311 35,943,698 2,671,613

Public safety 83,219,396 91,394,519 72,706,102 18,688,417

Physical environment 903,983 931,983 864,860 67,123

Transportation 57,689 11,183,096 3,579,055 7,604,041

Economic environment 3,075,055 3,075,055 3,040,147 34,908

Human services 4,276,190 5,086,132 4,789,053 297,079

Culture and recreation 2,782,233 3,895,510 3,072,666 822,844

Court-related 2,867,908 3,595,045 3,287,746 307,299

Capital outlay 3,813,881 10,196,840 5,983,020 4,213,820

Debt service

Principal 31,390 - 22,351 (22,351)

Interest - - 598

(598)

Total expenditures 139,480,752 167,973,491 133,289,296 34,684,195

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

(16,014,986) (24,019,908) 5,347,032 29,366,940

OTHER FINANCING SOURCES (USES)

Transfers in 7,634,155 7,835,250 7,850,562 15,312

Transfers out (6,129,093) (9,565,496) (6,462,258) 3,103,238

Transfers among constitutional officers (8,319,081) (793,345) 778,841 1,572,186

Issuance of debt - - 275,000 275,000

Total other financing sources (uses) (6,814,019) (2,523,591) 2,442,145 4,965,736

NET CHANGE IN FUND BALANCE

(22,829,005) (26,543,499) 7,789,177 34,332,676

FUND BALANCE - BEGINNING

22,829,005 26,543,499 25,333,498 (1,210,001)

FUND BALANCE - ENDING

-$ -$ 33,122,675$ 33,122,675$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

TOURIST DEVELOPMENT SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

107

Variance With

Final budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Taxes 23,500,000$ 24,500,000$ 36,875,379$ 12,375,379$

Intergovernmental - 1,597,077 159,607 (1,437,470)

Charges for services 1,084,700 1,084,700 862,330 (222,370)

Investment income (loss) 1,160,000 1,160,000 (1,860,312) (3,020,312)

Miscellaneous 60,000 60,000 3,581 (56,419)

Total revenues 25,804,700 28,401,777 36,040,585 7,638,808

EXPENDITURES

Current

Economic environment 24,184,200 32,904,852 16,004,790 16,900,062

Culture and recreation 35,047,583 38,588,188 4,612,027 33,976,161

Capital outlay 9,015,797 12,965,526 4,295,242 8,670,284

Total expenditures 68,247,580 84,458,566 24,912,059 59,546,507

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (42,442,880) (56,056,789) 11,128,526 67,185,315

OTHER FINANCING SOURCES (USES)

Transfers out (3,617,020) (3,851,116) (3,312,494) 538,622

NET CHANGE IN FUND BALANCES (46,059,900) (59,907,905) 7,816,032 67,723,937

FUND BALANCE - BEGINNING 46,059,900 59,907,905 59,907,904 (1)

FUND BALANCE - ENDING -$ -$ 67,723,936$ 67,723,936$

Budgeted Amounts

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

NATURAL DISASTER SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

108

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Intergovernmental -$ 40,784,349$ 2,766,334$ (38,018,015)$

Investment income (loss) - - (3,171) (3,171)

Total revenues - 40,784,349 2,763,163 (38,021,186)

EXPENDITURES

Current

Public safety 50,000 39,704,597 6,044 39,698,553

Economic environment - - 7,379 (7,379)

Capital outlay - 2,009,091 2,009,091 -

Total expenditures 50,000 41,713,688 2,022,514 39,691,174

EXCESS (DEFICIENCY) OF REVENUES

OVER UNDER EXPENDITURES (50,000) (929,339) 740,649 1,669,988

OTHER FINANCING SOURCES (USES)

Transfers in - 914,940 - (914,940)

Transfers among constitutional officers - (35,601) 2 35,603

Total other financing sources (uses) - 879,339 2 (879,337)

NET CHANGE IN FUND BALANCE

(50,000) (50,000) 740,651 790,651

FUND BALANCE - BEGINNING 50,000 50,000 (1,302,249) (1,352,249)

FUND BALANCE - ENDING -$ -$ (561,598)$ (561,598)$

Budgeted Amounts

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS

BOARD OF COUNTY COMMISSIONERS, CLERK OF COURTS, SUPERVISOR OF ELECTIONS, AND PROPERTY

APPRAISERS

SEPTEMBER 30, 2022

109

LAST 10 YEARS (1)

Reporting Year Ended September 30, 2022 2021 2020 2019 2018

TOTAL OPEB LIABILITY

Service cost 352,112$ 335,118$ 292,775$ 301,261$ 315,544$

Interest 126,559 136,081 194,080 175,371 155,871

Difference between expected

and actual experience (821,021) - (773,538) - -

Changes in assumptions and other inputs (106,417) (17,276) 312,630 (190,963) (228,803)

Benefit payments (173,913) (161,860) (212,688) (228,144) (263,492)

NET CHANGE IN TOTAL OPEB LIABILITY (622,680) 292,063 (186,741) 57,525 (20,880)

TOTAL OPEB LIABILITY - BEGINNING 4,986,264 4,694,201 4,880,942 4,823,417 4,844,297

(2) TOTAL OPEB LIABILITY - ENDING 4,363,584$ 4,986,264$ 4,694,201$ 4,880,942$ 4,823,417$

COVERED EMPLOYEE PAYROLL 45,037,915$ 42,462,696$ 41,026,759$ 46,908,840$ 3,975,614$

TOTAL OPEB LIABILITY AS A

PERCENTAGE OF PAYROLL 9.69% 11.74% 11.44% 10.41% 121.33%

(1) This schedule is intended to show information for 10 years. Additional years will be presented as data becomes available.

(2) There are no assets accumulated in a Trust to pay related benefits for the OPEB Plan.

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS

SHERIFF’S PLAN

SEPTEMBER 30, 2022

110

LAST 10 YEARS (1)

Reporting Year Ended September 30, 2022 2021 2020 2019 2018

TOTAL OPEB LIABILITY

Service cost 290,699$ 290,317$ 286,196$ 289,638$ 299,973$

Interest 148,675 164,982 215,697 195,267 173,653

Difference between expected

and actual experience 453,591 - 236,378 - -

Changes in assumptions

and other inputs 734,353 (27,539) (130,119) (204,160) (253,549)

Benefit payments (251,142) (266,413) (222,307) (226,832) (237,985)

NET CHANGE IN OPEB LIABILITY 1,376,176 161,347 385,845 53,913 (17,908)

TOTAL OPEB LIABILITY - BEGINNING 6,003,937 5,842,590 5,456,745 5,402,832 5,420,740

(2) TOTAL OPEB LIABILITY - ENDING 7,380,113$ 6,003,937$ 5,842,590$ 5,456,745$ 5,402,832$

COVERED EMPLOYEE PAYROLL 26,810,943$ 24,956,664$ 19,281,684$ 21,725,682$ 15,887,651$

TOTAL OPEB LIABILITY AS A

PERCENTAGE OF PAYROLL 27.53% 24.06% 30.30% 25.12% 34.01%

(1) This schedule is intended to show information for 10 years. Additional years will be presented as data becomes available.

(2) There are no assets accumulated in a Trust to pay related benefits for the OPEB Plan.

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY

LAST TEN FISCAL YEARS (1)

SEPTEMBER 30, 2022

111

2022 2021 2020 2019 2018

County’s proportion of the net pension liability (asset) 0.28% 0.28% 0.30% 0.29% 0.29%

County’s proportionate share of the net pension liability

(asset) 105,016,024$ 20,835,800$ 128,458,322$ 101,144,655$ 87,393,354$

County’s covered payroll 79,119,061$ 89,370,064$ 82,201,157$ 88,574,717$ 82,752,416$

County’s proportionate share of the net pension liability

(asset) as a percentage of its covered payroll 132.73% 23.31% 156.27% 114.19% 105.61%

Plan fiduciary net position as a

percentage of the total pension liability 78.85% 96.40% 78.85% 82.61% 84.26%

2022 2021 2020 2019 2018

County’s proportion of the net pension liability (asset) 0.21% 0.21% 0.21% 0.21% 0.20%

County’s proportionate share of the net pension liability

(asset) 23,204,574$ 25,693,815$ 25,340,684$ 23,169,078$ 21,574,482$

County’s covered payroll 79,119,061$ 89,370,064$ 82,201,157$ 88,574,717$ 82,752,416$

County’s proportionate share of the net pension liability

(asset) as a percentage of its covered payroll 29.33% 28.75% 30.83% 26.16% 26.07%

Plan fiduciary net position as a

percentage of the total pension liability 3.00% 3.56% 3.00% 2.63% 2.15%

Florida Retirement System

Health Insurance Subsidy

(1) This schedule is intended to show information for 10 years. Additional years will be presented as data becomes available.

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY – CONTINUED

LAST TEN FISCAL YEARS (1)

SEPTEMBER 30, 2022

112

2017201620152014

County’s proportion of the net pension liability (asset) 0.28% 0.28% 0.27% 0.27%

County’s proportionate share of the net pension liability

(asset) 83,995,538$ 71,598,556$ 34,835,695$ 16,322,350$

County’s covered payroll 76,059,862$ 75,588,485$ 73,573,015$ 70,721,165$

County’s proportionate share of the net pension liability

(asset) as a percentage of its covered payroll 110.43% 94.72% 47.35% 23.08%

Plan fiduciary net position as a

percentage of the total pension liability 83.89% 84.88% 92.00% 96.09%

2017201620152014

County’s proportion of the net pension liability (asset) 0.20% 0.20% 0.20% 0.20%

County’s proportionate share of the net pension liability

(asset) 21,241,191$ 23,012,784$ 20,014,715$ 18,257,627$

County’s covered payroll 76,059,862$ 75,588,485$ 73,573,015$ 70,721,165$

County’s proportionate share of the net pension liability

(asset) as a percentage of its covered payroll 27.93% 30.44% 27.20% 25.82%

Plan fiduciary net position as a

percentage of the total pension liability 1.64% 0.97% 0.50% 0.99%

Florida Retirement System

Health Insurance Subsidy

(1) This schedule is intended to show information for 10 years. Additional years will be presented as data becomes available.

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF CONTRIBUTIONS

LAST TEN FISCAL YEARS (1)

SEPTEMBER 30, 2022

113

2022 2021 2020 2019 2018

Contractually required contribution 12,043,702$ 10,507,921$ 9,847,613$ 9,106,681$ 8,268,916$

Contributions in relation to the contractually

required contribution (12,043,702) (10,507,921) (9,847,613) (9,106,681) (8,268,916)

CONTRIBUTION DEFICIENCY (EXCESS) -$ -$ -$ -$ -$

County’s covered payroll 80,204,007$ 89,370,064$ 82,201,157$ 88,574,717$ 82,752,416$

Contributions as a percentage of covered payroll 15.02% 11.76% 11.98% 10.28% 9.99%

2022 2021 2020 2019 2018

Contractually required contribution 1,325,647$ 1,231,227$ 1,195,974$ 1,149,840$ 1,105,421$

Contributions in relation to the contractually

required contribution (1,325,647) (1,231,227) (1,195,974) (1,149,840) (1,105,421)

CONTRIBUTION DEFICIENCY (EXCESS)

-$ -$ -$ -$ -$

County’s covered payroll 80,204,007$ 89,370,064$ 82,201,157$ 88,574,717$ 82,752,416$

Contributions as a percentage of covered payroll 1.65% 1.38% 1.45% 1.30% 1.34%

Florida Retirement System

Health Insurance Subsidy

(1) This schedule is intended to show information for 10 years. Additional years will be presented as data becomes available.

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF CONTRIBUTIONS – CONTINUED

LAST TEN FISCAL YEARS (1)

SEPTEMBER 30, 2022

114

2017 2016 2015 2014

Contractually required contribution 7,389,824$ 6,915,008$ 6,575,576$ 5,859,714$

Contributions in relation to the contractually

required contribution (7,389,824) (6,915,008) (6,575,576) (5,859,714)

CONTRIBUTION DEFICIENCY (EXCESS)

-$ -$ -$ -$

County’s covered payroll 76,059,862$ 75,588,485$ 73,573,015$ 70,721,165$

Contributions as a percentage of covered payroll 9.72% 9.15% 8.94% 8.29%

2017 2016 2015 2014

Contractually required contribution 1,051,344$ 1,012,092$ 750,201$ 668,908$

Contributions in relation to the contractually

required contribution (1,051,344) (1,012,092) (750,201) (668,908)

CONTRIBUTION DEFICIENCY (EXCESS) -$ -$ -$ -$

County’s covered payroll 76,059,862$ 75,588,485$ 73,573,015$ 70,721,165$

Contributions as a percentage of covered payroll 1.38% 1.34% 1.02% 0.95%

Florida Retirement System

Health Insurance Subsidy

(1) This schedule is intended to show information for 10 years. Additional years will be presented as data becomes available.

OKALOOSA COUNTY, FLORIDA

NOTES REQUIRED SUPPLEMENTARY INFORMATION

SEPTEMBER 30, 2022

115

The following changes in actuarial assumptions occurred in 2022:

Pension Related Notes to Schedule:

FRS: The Mortality assumption used is the PUB-2010 base table projected generationally with Scale MP-

2018. The inflation rate assumption remained at 2.40%. Payroll growth, including inflation remained at

3.25%. The long-term expected rate of return decreased to 6.7%.

HIS: The municipal rate used to determine total pension liability was increased from 2.16% to 3.54%.

OPEB Related Notes to Schedule:

Changes of Benefit Terms: There were no benefit changes during the year.

Changes in Assumptions: Changes in assumptions and other inputs include the change in the discount

rate from 2.41% to 2.19% as of September 30, 2022. The following are the discount rates used in each

period:

2022 2.19%

2021 2.41%

2020 2.75%

2019 3.83%

2018 3.50%

2017 3.10%

Healthcare Cost Trend Rates: Based on the Getzen Model, with trending starting at 6.00% (17.1% for

premiums to reflect actual increase) and gradually decreasing to an ultimate trend rate of 3.75%.

COMBINING AND INDIVIDUAL

FUND STATEMENTS AND SCHEDULES

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OKALOOSA COUNTY, FLORIDA

GOVERNMENTAL FUNDS

GENERAL FUND

116

The General Fund is the government’s primary operating fund. It is used to account for and report all

financial resources not accounted for and reported in another fund. The General Fund includes the Board

of County Commissioners, Clerk of Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor

of Elections, and Tax Collector:

Board of County Commissioners

This fund is the primary operating fund of Okaloosa County. It is used to account for all financial resources

of the general government except those required to be accounted for in other funds.

Clerk of the Circuit Court and Comptroller

This fund reflects the activities of the Office of the Clerk of Circuit Court. Services provided are in

accordance with provisions of the Florida Statutes related primarily to the county and circuit court

systems, recording operations, and various other services.

Property Appraiser

This fund reflects the operations of the Office of the Property Appraiser who provides independent

appraisals of tangible and personal property for all taxing authorities within the County.

Sheriff

This fund reflects the operations of the Office of the Sheriff. Services provided are for all the law

enforcement activities within the County.

Supervisor of Elections

This fund reflects the operations of the Office of the Supervisor of Elections in the performance of its

duties in accordance with Florida Statutes.

Tax Collector

This fund reflects the operations of the Office of the Tax Collector who collects and remits ad valorem

taxes, licenses, and other revenues, to the related taxing authorities.

OKALOOSA COUNTY, FLORIDA

COMBINING BALANCE SHEET

GENERAL FUND BY CATEGORY

SEPTEMBER 30, 2022

117

Supervisor of Tax Property

Board Clerk Sheriff Elections Collector Appraiser Total

ASSETS

Cash and cash equivalents 530,934$ 3,835,888$ 2,096,906$ 120,142$ 307,987$ 1,041,212$ 7,933,069$

Investments 30,537,443 99,131 - 94,636 - - 30,731,210

Accounts receivable 190,486 5,765 - - - - 196,251

Lease receivable 16,293,041 - - - 109,768 - 16,402,809

Due from other funds 73,850 - - - 32,008 - 105,858

Due from other elected officials 2,474,966 30,240 807,219 - 431 - 3,312,856

Due from other governments 6,183,841 18,064 538,042 - - - 6,739,947

Inventory 81,613 - - - - - 81,613

Prepaids 506,139 156,799 - 102,723 - - 765,661

TOTAL ASSETS

56,872,313 4,145,887 3,442,167 317,501 450,194 1,041,212 66,269,274

LIABILITIES, DEFERRED INFLOWS,

AND FUND BALANCES

LIABILITIES

Accounts payable 494,055 51,292 575,799 42,375 18,525 3,385 1,185,431

Contracts payable 1,040,147 - - - - -

1,040,147

Other accrued liabilities 900,254 128,010 1,256,854 47,780 21,315 41,746 2,395,959

Due to other funds - - 263,823 - - 263,823

Due to other elected officials 310,352 3,958,723 1,245,081 227,346 121,051 885,725 6,748,278

Due to other governments 415,823 7,862 100,610 - 3,183 110,356 637,834

Due to depositors 24,612 - - - 4,227 - 28,839

Unearned revenue 639,187 - - - 172,125 - 811,312

TOTAL LIABILITIES

3,824,430 4,145,887 3,442,167 317,501 340,426 1,041,212 13,111,623

DEFERRED INFLOW OF RESOURCES

Lease receivable 15,816,608 - - - 109,768 - 15,926,376

FUND BALANCES

-

Nonspendable 587,752 156,799 - 102,723 - - 847,274

Committed 234,173 - - - - - 234,173

Assigned 4,108,600 - - - - - 4,108,600

Unassigned 32,300,750 (156,799) - (102,723) - - 32,041,228

TOTAL FUND BALANCES

37,231,275 - - - - - 37,231,275

TOTAL LIABILITIES, DEFERRED INFLOW OF

RESOURCES AND FUND BALANCES

56,872,313$ 4,145,887$ 3,442,167$ 317,501$ 450,194$ 1,041,212$ 66,269,274$

OKALOOSA COUNTY, FLORIDA

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

GENERAL FUND BY CATEGORY

FOR THE YEAR ENDED SEPTEMBER 30, 2022

118

Supervisor of Tax Property

Board Clerk Sheriff Elections Collector Appraiser Total

REVENUES

Taxes 77,204,298$ -$ -$ -$ -$ -$ 77,204,298$

Licenses and permits

25,500 - - - - - 25,500

Intergovernmental

36,302,568 676,197 385,430 3,990 - - 37,368,185

Charges for services

12,045,630 1,864,312 - 7,545 7,030,891 343,200 21,291,578

Fines

100,722 - - - - - 100,722

Investment income (loss)

(1,026,992) 20,330 - - - - (1,006,662)

Miscellaneous

3,324,830 29,688 - - 289,776 8,413 3,652,707

Total revenues

127,976,556 2,590,527 385,430 11,535 7,320,667 351,613 138,636,328

EXPENDITURES

Current

General government

19,081,712 5,201,882 - 2,000,052 6,673,731 2,986,321 35,943,698

Public safety

20,713,433 - 51,992,669 - - 72,706,102

Physical environment

864,860 - - - - 864,860

Transportation

3,579,055 - - - - 3,579,055

Economic environment

3,040,147 - - - - 3,040,147

Human services

4,789,053 - - - - 4,789,053

Culture and recreation

3,072,666 - - - - 3,072,666

Court-related

1,215,634 - 2,072,112 - - 3,287,746

Capital outlay

960,578 40,354 3,954,576 3,990 905,738 117,784 5,983,020

Debt service

Principal

3,896 18,455 - - - - 22,351

Interest

598 - - - - - 598

Total expenditures

57,321,632 5,260,691 58,019,357 2,004,042 7,579,469 3,104,105 133,289,296

EXCESS (DEFICIENCY)

OF REVENUES OVER

(UNDER) EXPENDITURES

70,654,924 (2,670,164) (57,633,927) (1,992,507) (258,802) (2,752,492) 5,347,032

OTHER FINANCING

SOURCES (USES)

Transfers in

7,034,084 816,478 - - - - 7,850,562

Transfers out

(6,462,258) - - - - - (6,462,258)

Issuance of debt

- - - - 275,000 - 275,000

Transfers among

constitutional officers

(63,437,573) 1,853,686 57,633,927 1,992,507 (16,198) 2,752,492 778,841

Total other financing sources (uses)

(62,865,747) 2,670,164 57,633,927 1,992,507 258,802 2,752,492 2,442,145

NET CHANGE IN FUND BALANCE

7,789,177 - - - - - 7,789,177

FUND BALANCES - BEGINNING

25,333,498 - - - - - 25,333,498

FUND BALANCES - ENDING

33,122,675$ -$ -$ -$ -$ -$ 33,122,675$

(THIS PAGE INTENTIONALLY LEFT BLANK)

OTHER SUPPLEMENTARY INFORMATION

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

ROAD AND BRIDGE CONSTRUCTION CAPITAL PROJECTS FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

119

Variance With

Final Budget

Actual Positive

Original Final Amounts ( Negative)

REVENUES

Taxes 2,065,641$ 2,065,641$ 2,262,673$ 197,032$

Intergovernmental 9,199,208 12,466,862 2,994,749 (9,472,113)

Charges for services - 2,032,100 - (2,032,100)

Investment income (loss) - - (697,201) (697,201)

Miscellaneous - 58,352,389 12,681,316 (45,671,073)

Total revenues 11,264,849 74,916,992 17,241,537 (57,675,455)

EXPENDITURES

Current

Transportation 5,901,777 15,815,441 1,821,542 13,993,899

Capital Outlay 38,847,258 99,066,954 25,201,899 73,865,055

Debt service

Principal - - 174,400 (174,400)

Total expenditures 44,749,035 114,882,395 27,197,841 87,684,554

EXCESS (DEFICIENCY)

OF REVENUES OVER

UNDER EXPENDITURES (33,484,186) (39,965,403) (9,956,304) 30,009,099

OTHER FINANCING SOURCES (USES)

Transfers out 600,000 67,900 - (67,900)

NET CHANGE IN FUND BALANCE (32,884,186) (39,897,503) (9,956,304) 29,941,199

FUND BALANCE - BEGINNING

32,884,186 39,897,503 40,516,675 619,172

FUND BALANCE - ENDING

-$ -$ 30,560,371$ 30,560,371$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

INFRASTRUCTURE SURTAX FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

120

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Taxes 19,378,400$ 19,378,400$ 21,769,843$ 2,391,443$

Investment income (loss) - - (438,066) (438,066)

Miscellaneous - - 236,444 236,444

TOTAL REVENUES

19,378,400 19,378,400 21,568,221 2,189,821

EXPENDITURES

Current

Public Safety 35,941,829 29,609,852 - 29,609,852

Transportation 189,222 189,222 158,049 31,173

Capital outlay 4,497,782 19,172,699 7,368,429 11,804,270

TOTAL EXPENDITURES

40,628,833 48,971,773 7,526,478 41,445,295

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)

EXPENDITURES

(21,250,433) (29,593,373) 14,041,743 43,635,116

OTHER FINANCING

SOURCES (USES)

Transfer out (1,274,878) (1,274,878) (1,274,878) -

TOTAL OTHER FINANCING

SOURCES (USES)

(1,274,878) (1,274,878) (1,274,878) -

NET CHANGE IN FUND BALANCE

(22,525,311) (30,868,251) 12,766,865 43,635,116

FUND BALANCE - BEGINNING

22,525,311 30,868,251 30,480,953 (387,298)

FUND BALANCE - ENDING

-$ -$ 43,247,818$ 43,247,818$

Budgeted Amounts

OKALOOSA COUNTY, FLORIDA

NONMAJOR GOVERNMENTAL FUNDS

SEPTEMBER 30, 2022

121

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenues that are legally restricted to expenditure

for particular purposes.

Board of County Commissioners

County Transportation Trust Fund

This fund is used to account for maintenance and in-house construction of Okaloosa County roads. These

activities include road maintenance traffic control engineering right-of-way acquisition and construction

of new roadways. Funds are provided from state shared revenue and certain gasoline taxes collected

and distributed by the State of Florida.

Local Housing Assistance Trust Fund

This fund is used to account for funds received from the State Housing Initiatives Partnership Program

for implementing and administering the local housing assistance plan.

E-911 Operations Fund

This fund is used to account for E911 revenues collected exclusively for costs associated with developing

and maintaining E911 systems and networks.

Radio Communications Fund

This fund is used to account for surcharges collected to fund the acquisition of equipment software and

engineering administrative and maintenance services to construct, operate and maintain a statewide

radio system.

Law Enforcement Trust Fund

This fund is used to account for the revenues received as a result of criminal or forfeiture proceedings

and used for school resource officer crime prevention safe neighborhood drug abuse education and

prevention programs or for other law enforcement purposes.

Police Academy Fund

This fund is used to account for an additional $2 assessed by the County for criminal justice education

degree programs and training courses.

County Public Health Fund

This fund is used to account for funds appropriated by Okaloosa County for or on behalf of the county

public health unit such as capital projects costs.

Municipal Services Benefit Units Fund

This fund is used to account for the assessments levied against benefiting properties for providing street

lighting street and drainage improvements and maintenance.

Unincorporated Municipal Services Taxing Unit Fund

This fund is used to account for ad valorem tax proceeds levied on property in the unincorporated areas

of Okaloosa County for the maintenance of parks in those areas.

OKALOOSA COUNTY, FLORIDA

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

122

SPECIAL REVENUE FUNDS – CONTINUED

Board of County Commissioners – Continued

Prisoner Benefit Fund

This fund is used to account for profits from the detention facility’s commissary and expenses involved in

the commissary operation.

Additional Court Cost Fund

This fund is used to account for the $65 additional court costs imposed by the County to fund innovations

in legal aid law library and teen court operations.

Drug Abuse Trust Fund

This fund is used to account for an additional assessment collected for the purpose of providing

assistance for alcohol and other drug abuse treatment or education programs.

Domestic Violence Trust Fund

This fund is used to account for the $85 surcharge imposed on domestic violence offenses and is used

to provide additional training to law enforcement personnel in combating domestic violence.

Traffic Education Trust Fund

This fund is used to account for the additional $5 surcharge imposed on each traffic penalty and is used

to fund driver education programs in public and non-public schools.

Choctaw Bay Estuary Fund

This fund is used to account for comprehensive management and improvement of water quality, habitat,

natural resources and economic benefits of Choctawhatchee Bay.

Fiber Optic Cable Fund

This fund provides for the engineering, operation, maintenance and sustainability of the County Fiber

Optic Telecommunication Utility System and related critical assets.

Clerk of Circuit Court

Clerk of Circuit Court Courts Special Revenue Fund

This fund is used to account for the statutory fines, fees, service charges and costs collected by the Clerk

related to the performance of court-related activities. All excess funds over the amount of the Clerk’s

operating budget for this fund approved by the Clerks of Court Operations Corporation are remitted to

the Florida Department of Revenue.

Public Records Modernization Trust Fund

This fund is used to account for recording fees collected by the Clerk under Florida Statute 28.24(12) (d).

The fund is used exclusively for equipment personnel training and technical assistance in modernizing

the public records system.

Public Records Courts Special Revenue Fund

This fund is used to account for recording fees collected by the Clerk under Florida Statute 28.24(12) (e).

The fund is used exclusively for court-related technology needs.

OKALOOSA COUNTY, FLORIDA

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

123

SPECIAL REVENUE FUNDS – CONTINUED

Sheriff

Sheriff Federal Law Enforcement Trust Fund

This fund is used to account for confiscated merchandise and funds and is expended for Law

Enforcement Purposes. Funds cannot be used for normal operating expenses.

Teen Challenge Driver Fund

This fund is used to account for revenues restricted by the Florida Sheriffs Association and is expended

to support a new safety program for teen drivers. Funds cannot be used for normal operating expenses.

DEBT SERVICE FUND

Debt Service funds are used to account for the accumulation of resources and payment of special

obligation bond principal and interest from governmental resources when Okaloosa County is obligated

in some manner for the payment.

Board of County Commissioners

Okaloosa Debt Service Fund

This fund is used to account for accumulation of resources and payment of bond debt for Sales Tax

Revenue Bonds Series 2011, 2014, 2016, 2019 and Tourist Development note.

CAPITAL PROJECTS FUNDS

Capital projects funds are used to account for the acquisition and construction of major capital facilities

other than those financed by proprietary funds.

Board of County Commissioners

Capital Outlay Construction Trust Capital Projects Fund

This fund is used to account for proceeds of bond issues, federal and state grants, and local

appropriations for major capital projects. At the end of the fiscal year, completed projects are capitalized

and reported on the government-wide financial statements of Okaloosa County, Florida.

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

SEPTEMBER 30, 2022

124

County

Transportation Local Housing E- 911 Operations

Trust Special Assistance trust Special

Revenue Fund Fund Revenue Fund

ASSETS

Cash and cash equivalents 394,252$ 84,333$ 107,572$

Investments 3,981,945 3,414,225 374,259

Accounts receivable - 38,687 -

Due from other funds 1,000,000 - -

Due from other elected officials 52 - -

Due from other governments 755,189 - 516,718

Inventory 280,111 - -

Prepaids 1,660 - -

TOTAL ASSETS

6,413,209$ 3,537,245$ 998,549$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable 79,932$ -$ -$

Contracts payable 32,194 - -

Other accrued liabilities 216,755 - -

Due to other fund - - -

Due to other elected officials 285 - 328,453

Due to other government 2,626 - -

Due to depositors - - -

Unearned revenue - 3,176,573 -

TOTAL LIABILITIES

331,792 3,176,573 328,453

FUND BALANCES

Nonspendable 281,771 - -

Restricted - 360,672 670,096

Committed - - -

Assigned 5,799,646 - -

Unassigned - - -

TOTAL FUND BALANCES

6,081,417 360,672 670,096

TOTAL LIABILITIES AND FUND BALANCES

6,413,209$ 3,537,245$ 998,549$

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

125

Radio

Communications Law Enforcement Police Academ

y

Special Revenue Trust Special Special Revenue

Fund Revenue Fund Fund

ASSETS

Cash and cash equivalents 185,823$ 11,287$ 96,361$

Investments 98,227 124,586 35,130

Accounts receivable - - -

Due from other funds - -

Due from other elected officials 5,204 - -

Due from other governments - - -

Inventory - - -

Prepaids - - -

TOTAL ASSETS 289,254$ 135,873$ 131,491$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable -$ -$ -$

Contracts payable - - -

Other accrued liabilities - - -

Due to other fund - - -

Due to other elected officials - - -

Due to other government - - -

Due to depositors - - -

Unearned revenue - - -

TOTAL LIABILITIES - - -

FUND BALANCES

Nonspendable - - -

Restricted 289,254 135,873 131,491

Committed - - -

Assigned - - -

Unassigned - - -

TOTAL FUND BALANCES 289,254

135,873 131,491

TOTAL LIABILITIES AND FUND BALANCES 289,254$ 135,873$ 131,491$

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

126

Count

y

Unincorporated

Public Health Municipal Services Municipal

Special Benefit Unit Special Services Taxing

Revenue Fund Revenue Fund Unit Fund

ASSETS

Cash and cash equivalents 60,653$ 101,632$ 1,366$

Investments 39,355 576,341 2,534,900

Accounts receivable - - 300

Due from other funds 250,000 202,000 -

Due from other elected officials 58 389 412

Due from other governments - 53,531 -

Inventory - - 272

Prepaids - - -

TOTAL ASSETS 350,066$ 933,893$ 2,537,250$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable -$ 5,905$ 21,158$

Contracts payable 100,277 92,263 930

Other accrued liabilities - - 24,030

Due to other fund - 73,850 -

Due to other elected officials - - -

Due to other government - - -

Due to depositors - - -

Unearned revenue - - -

TOTAL LIABILITIES 100,277 172,018 46,118

FUND BALANCES

Nonspendable - - 272

Restricted - - 2,490,860

Committed - 761,875 -

Assigned 249,789 - -

Unassigned - - -

TOTAL FUND BALANCES 249,789 761,875 2,491,132

TOTAL LIABILITIES AND FUND BALANCES 350,066$ 933,893$ 2,537,250$

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

127

Prisoner Additional Court Drug Abuse

Benefit Special Cost Special Trust Special

Revenue Fund Revenue Fund Revenue Fund

ASSETS

Cash and cash equivalents 284,485$ 88,093$ 71,992$

Investments 1,089,986 268,106 50,958

Accounts receivable 58,864 - -

Due from other funds -

Due from other elected officials - 93,307 1,580

Due from other governments - - -

Inventory - - -

Prepaids 455 - -

TOTAL ASSETS

1,433,790$ 449,506$ 124,530$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable 909$ 24,996$ 36$

Contracts payable 50,437 17,723 -

Other accrued liabilities 14,718 9,679 -

Due to other fund - - -

Due to other elected officials - - -

Due to other government 31 39,331 -

Due to depositors 72,842 - -

Unearned revenue - - -

TOTAL LIABILITIES

138,937 91,729 36

FUND BALANCES

Nonspendable 455 - -

Restricted 1,294,398 357,777 124,494

Committed - - -

Assigned - - -

Unassigned - - -

TOTAL FUND BALANCES

1,294,853

357,777 124,494

TOTAL LIABILITIES AND FUND BALANCES

1,433,790$ 449,506$ 124,530$

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

128

Domestic Traffic

V

iolence Education

Trust Special Special Choctaw Bay

Revenue Fund Revenue Fund Estuary Fund

ASSETS

Cash and cash equivalents 2,138$ 46,648$ 2,213$

Investments 1,420 154,005 657

Accounts receivable - - -

Due from other funds

Due from other elected officials 2,154 - -

Due from other governments - - 149,417

Inventory - - -

Prepaids - - -

TOTAL ASSETS 5,712$ 200,653$ 152,287$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable -$ -$ 655$

Contracts payable - - 59,510

Other accrued liabilities - - 6,622

Due to other fund - - 85,000

Due to other elected officials - - -

Due to other government - - -

Due to depositors - - -

Unearned revenue - - -

TOTAL LIABILITIES - - 151,787

FUND BALANCES

Nonspendable - - -

Restricted 5,712 200,653 -

Committed - - -

Assigned - - 500

Unassigned - - -

TOTAL FUND BALANCES 5,712 200,653 500

TOTAL LIABILITIES AND FUND BALANCES 5,712$ 200,653$ 152,287$

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

129

Public Records

Modernization

Fiber Optic Courts Special Trust Special

Cable Fund Revenue Fund Revenue Fund

ASSETS

Cash and cash equivalents 8,376$ 815,698$ 319,692$

Investments 1,888,055 - -

Accounts receivable - - -

Due from other funds - 150

Due from other elected officials - 180 -

Due from other governments - 53,413 -

Inventory - - -

Prepaids 550 27,858 -

TOTAL ASSETS 1,896,981$ 897,149$ 319,842$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable 6,411$ 111,468$ -$

Contracts payable 184,673 - -

Other accrued liabilities - 362,161 -

Due to other fund - - -

Due to other elected officials - - -

Due to other government - 423,520 -

Due to depositors - - -

Unearned revenue - - -

TOTAL LIABILITIES 191,084 897,149 -

FUND BALANCES

Nonspendable 550 27,858 -

Restricted - - 319,842

Committed - - -

Assigned 1,705,347 - -

Unassigned - (27,858) -

TOTAL FUND BALANCES 1,705,897 - 319,842

TOTAL LIABILITIES AND FUND BALANCES 1,896,981$ 897,149$ 319,842$

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

130

Federal Law Teen Drive

r

Public Enforcement Challenge

Records Trust Special Special

Courts Special Revenue Revenue

Revenue Fund Fund Fund

ASSETS

Cash and cash equivalents 182,908$ -$ -$

Investments - - -

Accounts receivable - - -

Due from other funds - - -

Due from other elected officials - - -

Due from other governments - - -

Inventory - - -

Prepaids - - -

TOTAL ASSETS 182,908$ -$ -$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable -$ -$ -$

Contracts payable - - -

Other accrued liabilities - - -

Due to other fund - - -

Due to other elected officials - - -

Due to other government - - -

Due to depositors - - -

Unearned revenue - -

TOTAL LIABILITIES - - -

FUND BALANCES

Nonspendable - - -

Restricted 182,908 - -

Committed - - -

Assigned - - -

Unassigned - - -

TOTAL FUND BALANCES 182,908 - -

TOTAL LIABILITIES AND FUND BALANCES 182,908$ -$ -$

OKALOOSA COUNTY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

131

Capital Outlay Total

Okaloosa Construction Nonmajo

r

Debt Service Trust Capital Governmental

Fund Projects Fund Funds

ASSETS

Cash and cash equivalents 3,930,506$ 20,466$ 6,816,494$

Investments 136,831 22,933,744 37,702,730

Accounts receivable - - 97,851

Due from other funds - - 1,452,150

Due from other elected officials - 102,646 205,982

Due from other governments - - 1,528,268

Inventory - - 280,383

Prepaids - - 30,523

TOTAL ASSETS 4,067,337$ 23,056,856$ 48,114,381$

LIABILITIES AND FUND BALANCE

LIABILITIES

Accounts payable -$ 186,700$ 438,170$

Contracts payable - 337,145 875,152

Other accrued liabilities - - 633,965

Due to other fund 4,115,000 - 4,273,850

Due to other elected officials - - 328,738

Due to other government - - 465,508

Due to depositors - - 72,842

Unearned revenue - - 3,176,573

TOTAL LIABILITIES 4,115,000 523,845 10,264,798

FUND BALANCES

Nonspendable - - 310,906

Restricted - 22,533,011 29,097,041

Committed - - 761,875

Assigned - - 7,755,282

Unassigned (47,663) - (75,521)

TOTAL FUND BALANCES

(47,663) 22,533,011 37,849,583

TOTAL LIABILITIES AND FUND BALANCES 4,067,337$ 23,056,856$ 48,114,381$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

132

County

Transportation Local Housing E- 911 Operations

Trust Special Assistance Trust Special

Revenue Fund Fund Revenue Fund

REVENUES

Taxes 6,557,938$ -$ -$

Licenses and permits - - -

Intergovernmental 2,135,553 125,536 2,064,962

Charges for services 786,761 - -

Fines - - -

Investment income (loss) (61,889) 13,295 (1,035)

Miscellaneous 77,259 810,307 -

TOTAL REVENUES 9,495,622 949,138 2,063,927

EXPENDITURES

Current

General government - 665,281 -

Public safety - - 368,113

Physical environment 881,342 - -

Transportation 8,416,056 - -

Economic environment - 275,332 -

Human services - - -

Culture and recreation - - -

Court- related - - -

Capital outlay 528,883 - -

Debt service

Principal - - -

Interest - - -

Other debt service costs - - -

TOTAL EXPENDITURES 9,826,281 940,613 368,113

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (330,659) 8,525 1,695,814

OTHER FINANCING SOURCES (USES)

Transfers in 883,213 - -

Transfers out - - (1,162,173)

Transfers among constitutional officers - - (779,098)

Issuance of debt - - -

TOTAL OTHER FINANCING SOURCES (USES) 883,213 - (1,941,271)

NET CHANGE IN FUND BALANCES 552,554 8,525 (245,457)

FUND BALANCE - BEGINNING 5,528,863 352,147 915,553

FUND BALANCE - ENDING 6,081,417$ 360,672$ 670,096$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

133

Radio

Communications Law Enforcement Police Academy

Special Revenue Trust Special Special Revenue

Fund Revenue Fund Fund

REVENUES

Taxes -$ -$ -$

Licenses and permits - - -

Intergovernmental - - -

Charges for services - - 19,101

Fines 64,218 40,652 -

Investment income (loss) (773) 1,084 (495)

Miscellaneous - - -

TOTAL REVENUES 63,445 41,736 18,606

EXPENDITURES

Current

General government - - -

Public safety - - 2,254

Physical environment - - -

Transportation - - -

Economic environment - - -

Human services - - -

Culture and recreation - - -

Court- related - - -

Capital outlay 130,000 - -

Debt service

Principal - - -

Interest - - -

Other debt service costs - - -

TOTAL EXPENDITURES 130,000 - 2,254

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (66,555) 41,736 16,352

OTHER FINANCING SOURCES (USES)

Transfers in - - -

Transfers out - - -

Transfers among constitutional officers - (58,250) -

Issuance of debt - - -

TOTAL OTHER FINANCING SOURCES (USES) - (58,250) -

NET CHANGE IN FUND BALANCES (66,555) (16,514) 16,352

FUND BALANCE - BEGINNING 355,809 152,387 115,139

FUND BALANCE - ENDING 289,254$ 135,873$ 131,491$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

134

Count

y

Unincorporated

Public Health Municipal Services Municipal

Special Benefit Unit Special Services Taxing

Revenue Fund Revenue Fund Unit Fund

REVENUES

Taxes 602,333$ -$ 1,776,390$

Licenses and permits - 605,980 -

Intergovernmental - 52,352 -

Charges for services - - 21,131

Fines - - -

Investment income (loss) (691) (2,682) (3,359)

Miscellaneous 25,742 689 -

TOTAL REVENUES

627,384 656,339 1,794,162

EXPENDITURES

Current

General government - - -

Public safety - - -

Physical environment - - -

Transportation - 539,178 -

Economic environment - - -

Human services 601,661 - -

Culture and recreation - - 1,203,687

Court- related - - -

Capital outlay 25,743 69,802 1,237,786

Debt service

Principal - - -

Interest - 2,356 -

Other debt service costs - - -

TOTAL EXPENDITURES

627,404 611,336 2,441,473

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

(20) 45,003 (647,311)

OTHER FINANCING SOURCES (USES)

Transfers in 4,000 - -

Transfers out - - -

Transfers among constitutional officers - 32 223

Issuance of debt - - -

TOTAL OTHER FINANCING SOURCES (USES)

4,000 32 223

NET CHANGE IN FUND BALANCES

3,980 45,035 (647,088)

FUND BALANCE - BEGINNING

245,809 716,840 3,138,220

FUND BALANCE - ENDING

249,789$ 761,875$ 2,491,132$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

135

Prisone

r

Additional Court Drug Abuse

Benefit Special Cost Special Trust Special

Revenue Fund Revenue Fund Revenue Fund

REVENUES

Taxes -$ -$ -$

Licenses and permits - - -

Intergovernmental - - -

Charges for services 1,198,558 1,297,990 -

Fines - - 10,623

Investment income (loss) (4,997) (1,001) (595)

Miscellaneous - 64,047 -

TOTAL REVENUES 1,193,561 1,361,036 10,028

EXPENDITURES

Current

General government - - -

Public safety 922,070 - -

Physical environment - - -

Transportation - - -

Economic environment - - -

Human services - - -

Culture and recreation - - -

Court- related - 1,037,213 2,881

Capital outlay 2,505 - -

Debt service

Principal - - -

Interest - - -

Other debt service costs - - -

TOTAL EXPENDITURES 924,575 1,037,213 2,881

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES 268,986 323,823 7,147

OTHER FINANCING SOURCES (USES)

Transfers in -

- -

Transfers out - (405,023) -

Transfers among constitutional officers - - -

Issuance of debt - - -

TOTAL OTHER FINANCING SOURCES (USES) - (405,023) -

NET CHANGE IN FUND BALANCES 268,986 (81,200) 7,147

FUND BALANCE - BEGINNING 1,025,867 438,977 117,347

FUND BALANCE - ENDING 1,294,853$ 357,777$ 124,494$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

136

Domestic Traffic

V

iolence Education

Trust Special Special

Revenue Revenue Choctaw Bay

Fund Fund Estuary Fund

REVENUES

Taxes -$ -$ -$

Licenses and permits - - -

Intergovernmental - - 282,283

Charges for services - - -

Fines 29,055 56,326 -

Investment income (loss) - (830) -

Miscellaneous - - 500

TOTAL REVENUES 29,055 55,496 282,783

EXPENDITURES

Current

General government - - -

Public safety - - -

Physical environment - - 282,283

Transportation - - -

Economic environment - - -

Human services - - -

Culture and recreation - - -

Court- related - - -

Capital outlay - - -

Debt service

Principal - - -

Interest - - -

Other debt service costs - - -

TOTAL EXPENDITURES

- - 282,283

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES 29,055 55,496 500

OTHER FINANCING SOURCES (USES)

Transfers in - - -

Transfers out (29,055) - -

Transfers among constitutional officers - (30,202) -

Issuance of debt - - -

TOTAL OTHER FINANCING SOURCES (USES) (29,055) (30,202) -

NET CHANGE IN FUND BALANCES - 25,294 500

FUND BALANCE - BEGINNING

5,712 175,359 -

FUND BALANCE - ENDING 5,712$ 200,653$ 500$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

137

Public Records

Courts Modernization

Special Trust Special

Fiber Optic Revenue Revenue

Cable Fund Fund Fund

REVENUES

Taxes -$ -$ -$

Licenses and permits - - -

Intergovernmental - 432,232 -

Charges for services 71,463 2,846,606 177,584

Fines - 1,003,117 -

Investment income (loss) (3,041) - -

Miscellaneous - - -

TOTAL REVENUES 68,422 4,281,955 177,584

EXPENDITURES

Current

General government 389,068 - -

Public safety - - -

Physical environment - - -

Transportation - - -

Economic environment - - -

Human services - - -

Culture and recreation - - -

Court- related - 4,988,900 -

Capital outlay 861,930 - -

Debt service

Principal - - -

Interest - - -

Other debt service costs - - -

TOTAL EXPENDITURES 1,250,998 4,988,900 -

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (1,182,576) (706,945) 177,584

OTHER FINANCING SOURCES (USES)

Transfers in - 706,945 -

Transfers out - - (209,613)

Transfers among constitutional officers - - -

Issuance of debt - - -

TOTAL OTHER FINANCING SOURCES (USES) - 706,945 (209,613)

NET CHANGE IN FUND BALANCES (1,182,576) - (32,029)

FUND BALANCE - BEGINNING 2,888,473 - 351,871

FUND BALANCE - ENDING 1,705,897$ -$ 319,842$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

138

Public Records

Courts Federal Law Teen Driver

Special Enforcement Challenge

Revenue Trust Special Special

Fund Revenue Fund Revenue Fund

REVENUES

Taxes -$ -$ -$

Licenses and permits - - -

Intergovernmental - - -

Charges for services 544,745 - -

Fines - - -

Investment income (loss) - - -

Miscellaneous - - -

TOTAL REVENUES 544,745 - -

EXPENDITURES

Current

General government - - -

Public safety - 58,250 30,202

Physical environment - - -

Transportation - - -

Economic environment - - -

Human services - - -

Culture and recreation - - -

Court- related - - -

Capital outlay - - -

Debt service

Principal - - -

Interest - - -

Other debt service costs - - -

TOTAL EXPENDITURES - 58,250 30,202

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES 544,745 (58,250) (30,202)

OTHER FINANCING SOURCES (USES)

Transfers in - - -

Transfers out (1,313,810) - -

Transfers among constitutional officers - 58,250 30,202

Issuance of debt - - -

TOTAL OTHER FINANCING SOURCES (USES) (1,313,810) 58,250 30,202

NET CHANGE IN FUND BALANCES (769,065) - -

FUND BALANCE - BEGINNING 951,973 - -

FUND BALANCE - ENDING 182,908$ -$ -$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

139

Capital Outlay Total

Okaloosa Construction Nonmajor

Debt Service Trust Capital Governmental

Fund Projects Fund Funds

REVENUES

Taxes -$ 1,810,247$ 10,746,908$

Licenses and permits - - 605,980

Intergovernmental 446,500 102,566 5,641,984

Charges for services - - 6,963,939

Fines - - 1,203,991

Investment income (loss) 482 (570,122) (636,649)

Miscellaneous - 200 978,744

TOTAL REVENUES 446,982 1,342,891 25,504,897

EXPENDITURES

Current

General government 190,750 2,500 1,247,599

Public safety - - 1,380,889

Physical environment - - 1,163,625

Transportation - - 8,955,234

Economic environment - - 275,332

Human services - - 601,661

Culture and recreation - 69,141 1,272,828

Court- related - - 6,028,994

Capital outlay - 2,571,935 5,428,584

Debt service

Principal 2,401,000 - 2,401,000

Interest 3,316,465 - 3,318,821

Other debt service costs 1,913 - 1,913

TOTAL EXPENDITURES 5,910,128 2,643,576 32,076,480

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (5,463,146) (1,300,685) (6,571,583)

OTHER FINANCING SOURCES (USES)

Transfers in 5,347,464 406,113 7,347,735

Transfers out (255,750) - (3,375,424)

Transfers among constitutional officers - - (778,843)

Issuance of debt - 19,700,000 19,700,000

TOTAL OTHER FINANCING SOURCES (USES) 5,091,714 20,106,113 22,893,468

NET CHANGE IN FUND BALANCES (371,432) 18,805,428 16,321,885

FUND BALANCE - BEGINNING 323,769 3,727,583 21,527,698

FUND BALANCE (DEFICIT) - ENDING (47,663)$ 22,533,011$ 37,849,583$

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

COUNTY TRANSPORTATION TRUST SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

140

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUE

Taxes 6,157,404$ 6,157,404$ 6,557,938$ 400,534$

Intergovernmental 1,991,883 4,244,854 2,135,553 (2,109,301)

Charges for service 658,786 658,786 786,761 127,975

Investment income (loss) 10,000 10,000 (61,889) (71,889)

Miscellaneous 1,000 1,000 77,259 76,259

TOTAL REVENUES

8,819,073 11,072,044 9,495,622 (1,576,422)

EXPENDITURES

Current

Physical environment 2,620,487 2,318,111 881,342 1,436,769

Transportation 10,602,932 12,107,502 8,416,056 3,691,446

Capital outlay 607,312 3,057,924 528,883 2,529,041

TOTAL EXPENDITURES

13,830,731 17,483,537 9,826,281 7,657,256

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)

EXPENDITURES (5,011,658) (6,411,493) (330,659) 6,080,834

OTHER FINANCING SOURCES (USES)

Transfers in 660,483 883,213 883,213 -

TOTAL OTHER FINANCING

SOURCES (USES)

660,483 883,213 883,213 -

NET CHANGE IN FUND BALANCE (4,351,175) (5,528,280) 552,554 6,080,834

FUND BALANCE - BEGINNING

4,351,175 5,528,280 5,528,863 583

FUND BALANCE - ENDING

-$ -$ 6,081,417$ 6,081,417$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

LOCAL HOUSING ASSISTANCE TRUST FUND

FOR THE ENDED SEPTEMBER 30, 2022

141

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Intergovernmental -$ 7,576,271$ 125,536$ (7,450,735)$

Investment income (loss) - 8,679 13,295 4,616

Miscellaneous 69,328 1,905,643 810,307 (1,095,336)

TOTAL REVENUES 69,328 9,490,593 949,138 (8,541,455)

EXPENDITURES

Current

General government - 3,274,987 665,281 2,609,706

Economic environment 307,125 8,348,338 275,332 8,073,006

TOTAL EXPENDITURES

307,125 11,623,325 940,613 10,682,712

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)

EXPENDITURES (237,797) (2,132,732) 8,525 2,141,257

NET CHANGE IN FUND BALANCE

(237,797) (2,132,732) 8,525 2,141,257

FUND BALANCE - BEGINNING

237,797 2,132,732 352,147 (1,780,585)

FUND BALANCE - ENDING -$ -$ 360,672$ 360,672$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

E-911 OPERATIONS SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

142

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Intergovernmental 1,025,000$ 4,302,897$ 2,064,962$ (2,237,935)$

Investment income (loss) - - (1,035) (1,035)

TOTAL REVENUES 1,025,000 4,302,897 2,063,927 (2,238,970)

EXPENDITURES

Current

Public Safety 1,676,466 778,380 368,113 410,267

TOTAL EXPENDITURES 1,676,466 778,380 368,113 410,267

EXCESS (DEFICIENCY) OF REVENUES

REVENUES OVER (UNDER)

EXPENDITURES (651,466) 3,524,517 1,695,814 (1,828,703)

OTHER FINANCING SOURCES (USES)

Transfers out (1,151,273) (1,162,173) (1,162,173) -

Transfers among constitutional

officer - (3,277,897) (779,098) 2,498,799

TOTAL OTHER FINANCING

SOURCES (USES) (1,151,273) (4,440,070) (1,941,271) 2,498,799

NET CHANGE IN FUND BALANCE (1,802,739) (915,553) (245,457) 670,096

FUND BALANCE - BEGINNING 1,802,739 915,553 915,553 -

FUND BALANCE - ENDING -$ -$ 670,096$ 670,096$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

RADIO COMMUNICATIONS SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

143

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Fines 72,000$ 72,000$ 64,218$ (7,782)$

Investment income (loss) 1,200 1,200 (773) (1,973)

TOTAL REVENUES

73,200 73,200 63,445 (9,755)

EXPENDITURES

Current

Public Safety 73,200 73,200 - 73,200

Capital Outlay 75,554 156,860 130,000 26,860

TOTAL EXPENDITURES

148,754 230,060 130,000 100,060

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (75,554) (156,860) (66,555) 90,305

OTHER FINANCING SOURCES (USES)

Transfers out (198,948) (198,948) - 198,948

TOTAL OTHER FINANCING

SOURCES (USES) (198,948) (198,948) - 198,948

NET CHANGE IN FUND BALANCE (274,502) (355,808) (66,555) 289,253

FUND BALANCE - BEGINNING

274,502 355,808 355,809 1

FUND BALANCE - ENDING

-$ -$ 289,254$ 289,254$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

LAW ENFORCEMENT TRUST FUND SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

144

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Fines -$ -$ 40,652$ 40,652$

Investment income (loss) 1,200 1,200 1,084 (116)

TOTAL REVENUES 1,200 1,200 41,736 40,536

EXPENDITURES

Current

Public safety - - - -

TOTAL EXPENDITURES - - - -

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES 1,200 1,200 41,736 40,536

OTHER FINANCING SOURCES (USES)

Transfers among constitutional officers (156,145) (137,391) (58,250) 79,141

TOTAL OTHER FINANCING

SOURCES (USES) (156,145) (137,391) (58,250) 79,141

NET CHANGE IN FUND BALANCE

(154,945) (136,191) (16,514) 119,677

FUND BALANCE - BEGINNING 154,945 136,191 152,387 16,196

FUND BALANCE - ENDING -$ -$ 135,873$ 135,873$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

POLICE ACADEMY SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

145

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Charges for services 20,000$ 20,000$ 19,101$ (899)$

Investment income (loss) 1,200 1,200 (495) (1,695)

TOTAL REVENUES

21,200 21,200 18,606 (2,594)

EXPENDITURES

Current

Public safety 22,354 25,041 2,254 22,787

TOTAL EXPENDITURES

22,354 25,041 2,254 22,787

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

(1,154) (3,841) 16,352 20,193

NET CHANGE IN FUND BALANCE

(1,154) (3,841) 16,352 20,193

OTHER FINANCING SOURCES (USES)

Transfers among constitutional officers (105,840) (111,297) - 111,297

TOTAL OTHER FINANCING

SOURCES (USES)

(106,994) (115,138) 16,352 131,490

FUND BALANCE - BEGINNING

106,994 115,138 115,139 1

FUND BALANCE - ENDING

-$ -$ 131,491$ 131,491$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

COUNTY PUBLIC HEALTH SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

146

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Taxes 598,197$ 598,197$ 602,333$ 4,136$

Investment income (loss) - - (691) (691)

Miscellaneous - - 25,742 25,742

TOTAL REVENUES

598,197 598,197 627,384 29,187

EXPENDITURES

Current

Human services 602,197 602,197 601,661 536

Capital outlay - - 25,743 (25,743)

TOTAL EXPENDITURES

602,197 602,197 627,404 (25,207)

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

(4,000) (4,000) (20) 3,980

OTHER FINANCING SOURCES (USES)

Transfers in 4,000 4,000 4,000 -

TOTAL OTHER FINANCING

SOURCES (USES)

4,000 4,000 4,000 -

NET CHANGE IN FUND BALANCE

- - 3,980 3,980

FUND BALANCE - BEGINNING

- - 245,809 245,809

FUND BALANCE - ENDING

-$ -$ 249,789$ 249,789$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

MUNICIPAL SERVICES BENEFIT UNIT SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

147

V

ariance With

Final Bud

g

et

Actual Positive

Ori

g

inal Final Amounts

(

Ne

g

ative

)

REVENUES

Licenses and permits 585,674$ 585,674$ 605,980$ 20,306$

Intergovernmental - 255,304 52,352 (202,952)

Investment income (loss) 10,500 10,500 (2,682) (13,182)

Miscellaneous - 47,700 689 (47,011)

TOTAL REVENUES

596,174 899,178 656,339 (242,839)

EXPENDITURES

Current

Transportation 1,200,290 1,360,887 539,178 821,709

Capital outlay 46,222 349,226 69,802 279,424

Interest 25,895 25,895 2,356 23,539

TOTAL EXPENDITURES 1,272,407 1,736,008 611,336 1,124,672

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (676,233) (836,830) 45,003 881,833

OTHER FINANCING SOURCES (USES)

Transfers among constitutional officers - - 32 32

TOTAL OTHER FINANCING

SOURCES (USES) - - 32 32

NET CHANGE IN FUND BALANCE (676,233) (836,830) 45,035 881,865

FUND BALANCE - BEGINNING 676,233 836,830 716,840 (119,990)

FUND BALANCE - ENDING -$ -$ 761,875$ 761,875$

Bud

g

eted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

UNINCORPORATED MUNICIPAL SERVICES TAXING UNIT FRAUD

FOR THE YEAR ENDED SEPTEMBER 30, 2022

148

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Taxes 1,770,610$ 1,770,610$ 1,776,390$ 5,780$

Charges for services 15,200 15,200 21,131 5,931

Investment income (loss) - - (3,359) (3,359)

TOTAL REVENUES

1,785,810 1,785,810 1,794,162 8,352

EXPENDITURES

Current

Culture and recreation 1,594,778 1,610,783 1,203,687 407,096

Capital outlay 3,325,747 3,313,247 1,237,786 2,075,461

TOTAL EXPENDITURES

4,920,525 4,924,030 2,441,473 2,482,557

EXCESS (DEFICIENCY) OF REVENUES

(3,134,715) (3,138,220) (647,311) 2,490,909

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)

Transfers among constitutional officers - - 223 223

TOTAL TRANSFERS AMONG

SOURCES (USES)

- - 223 223

NET CHANGE IN FUND BALANCE

(3,134,715) (3,138,220) (647,088) 2,491,132

FUND BALANCE - BEGINNING 3,134,715 3,138,220 3,138,220 -

FUND BALANCE - ENDING -$ -$ 2,491,132$ 2,491,132$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

PRISONER BENEFIT SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

149

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Charges for services 1,111,000$ 1,111,000$ 1,198,558$ 87,558$

Investment income (loss) - - (4,997) (4,997)

TOTAL REVENUES

1,111,000 1,111,000 1,193,561 82,561

EXPENDITURES

Current

Public safety 2,117,078 1,960,767 922,070 1,038,697

Capital outlay 27,000 176,000 2,505 173,495

TOTAL EXPENDITURES

2,144,078 2,136,767 924,575 1,212,192

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)

EXPENDITURES

(1,033,078) (1,025,767) 268,986 1,294,753

NET CHANGE IN FUND BALANCE (1,033,078) (1,025,767) 268,986 1,294,753

FUNS BALANCE - BEGINNING

1,033,078 1,025,767 1,025,867 100

FUND BALANCE - ENDING

-$ -$ 1,294,853$ 1,294,853$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

ADDITIONAL COURT COST SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

150

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Charges for services 1,486,900$ 1,486,900$ 1,297,990$ (188,910)$

Investment income (loss) 2,300 2,300 (1,001) (3,301)

Miscellaneous 53,000 53,000 64,047 11,047

TOTAL REVENUES

1,542,200 1,542,200 1,361,036 (181,164)

EXPENDITURES

Current

Court - related 1,802,915 1,802,915 1,037,213 765,702

Capital outlay 30,000 30,000 - 30,000

TOTAL EXPENDITURES

1,832,915 1,832,915 1,037,213 795,702

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

(290,715) (290,715) 323,823 614,538

OTHER FINANCING SOURCES (USES)

Transfers out (410,000) (410,000) (405,023) 4,977

TOTAL OTHER FINANCING

SOURCES (USES)

(410,000) (410,000) (405,023) 4,977

NET CHANGE IN FUND BALANCE

(700,715) (700,715) (81,200) 619,515

FUND BALANCE - BEGINNING

700,715 700,715 438,977 (261,738)

FUND BALANCE - ENDING

-$ -$ 357,777$ 357,777$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

DRUG ABUSE TRUST SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

151

Variance With

Final Budget

Actual Positive

Original Final Amounts ( Negative)

REVENUES

Fines 10,000$ 10,000$ 10,623$ 623$

Investment income (loss) - - (595) (595)

TOTAL REVENUES

10,000 10,000 10,028 28

EXPENDITURES

Current

Court- related 123,350 146,432 2,881 143,551

TOTAL EXPENDITURES

123,350 146,432 2,881 143,551

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

(113,350) (136,432) 7,147 143,579

NET CHANGE IN FUND BALANCE

(113,350) (136,432) 7,147 143,579

FUND BALANCE - BEGINNING 113,350 136,432 117,347 (19,085)

FUND BALANCE - ENDING -$ -$ 124,494$ 124,494$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

DOMESTIC VIOLENCE TRUST SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

152

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Fines 27,000$ 27,000$ 29,055$ 2,055$

TOTAL REVENUES 27,000 27,000 29,055 2,055

EXPENDITURES

Current

Court-related 5,123 5,123 - 5,123

TOTAL EXPENDITURES 5,123 5,123 - 5,123

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES 21,877 21,877 29,055 7,178

OTHER FINANCING SOURCES (USES)

Transfers out (27,589) (27,589) (29,055) (1,466)

TOTAL OTHER FINANCING

SOURCES (USES) (27,589) (27,589) (29,055) (1,466)

NET CHANGE IN FUND BALANCE

(5,712) (5,712) - 5,712

FUND BALANCE - BEGINNING 5,712 5,712 5,712 -

FUND BALANCE - ENDING -$ -$ 5,712$ 5,712$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

TRAFFIC EDUCATION SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

153

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Fines 63,000$ 63,000$ 56,326$ (6,674)$

Investment income (loss) - - (830) (830)

TOTAL REVENUES 63,000 63,000 55,496 (7,504)

EXPENDITURES

Current

Court-related 273,851 178,392 - 178,392

TOTAL EXPENDITURES 273,851 178,392 - 178,392

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (210,851) (115,392) 55,496 170,888

OTHER FINANCING SOURCES (USES)

Transfers among constitutional officers (60,767) (60,767) (30,202) 30,565

TOTAL OTHER FINANCING

SOURCES (USES) (60,767) (60,767) (30,202) 30,565

NET CHANGE IN FUND BALANCE (271,618) (176,159) 25,294 201,453

FUND BALANCE - BEGINNING 271,618 176,159 175,359 (800)

FUND BALANCE - ENDING

-$ -$ 200,653$ 200,653$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

CHOCTAW ESTUARY FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

154

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Intergovernmental 182,936$ 1,285,446$ 282,283$ (1,003,163)$

Miscellaneous - - 500 500

TOTAL REVENUES

182,936 1,285,446 282,783 (1,002,663)

EXPENDITURES

Current

Physical environment 182,936 1,280,528 282,283 998,245

Capital outlay - 4,918 - 4,918

TOTAL EXPENDITURES 182,936 1,285,446 282,283 1,003,163

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES - - 500 500

OTHER FINANCING SOURCES (USES)

Transfers in - - - -

TOTAL OTHER FINANCING

SOURCES (USES) - - - -

NET CHANGE IN FUND BALANCE - - 500 500

FUND BALANCE - BEGINNING

- - - -

FUND BALANCE - ENDING -$ -$ 500$ 500$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

FIBER OPTIC FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

155

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Charges for services 14,029$ 71,104$ 71,463$ 359$

Investment income (loss) - - (3,041) (3,041)

TOTAL REVENUES 14,029 71,104 68,422 (2,682)

EXPENDITURES

Current

General government 437,067 632,617 389,068 243,549

Capital outlay 65,000 3,215,000 861,930 2,353,070

TOTAL EXPENDITURES 502,067 3,847,617 1,250,998 2,596,619

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (488,038) (3,776,513) (1,182,576) 2,593,937

OTHER FINANCING SOURCES (USES)

Transfers in - 400,000 - (400,000)

TOTAL OTHER FINANCING

SOURCES (USES) - 400,000 - (400,000)

NET CHANGE IN FUND BALANCE (488,038) (3,376,513) (1,182,576) 2,193,937

FUND BALANCE - BEGINNING 488,038 3,376,513 2,888,473 (488,040)

FUND BALANCE - ENDING -$ -$ 1,705,897$ 1,705,897$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

COURTS SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

156

Variance With

Final Budget

Actual Positive

Original Final Amounts ( Negative)

REVENUES

Intergovernmental 391,196$ 391,196$ 432,232$ 41,036$

Charges for services 2,955,620 2,955,620 2,846,606 (109,014)

Fines 788,303 788,303 1,003,117 214,814

TOTAL REVENUES 4,135,119 4,135,119 4,281,955 146,836

EXPENDITURES

Current

Court- related 4,405,080 4,405,080 4,988,900 (583,820)

TOTAL EXPENDITURES 4,405,080 4,405,080 4,988,900 (583,820)

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (269,961) (269,961) (706,945) (436,984)

OTHER FINANCING SOURCES (USES)

Transfers in 269,961 269,961 706,945 436,984

TOTAL OTHER FINANCING

SOURCES (USES) 269,961 269,961 706,945 436,984

NET CHANGE IN FUND BALANCE - - - -

FUND BALANCE - BEGINNING - - - -

FUND BALANCE - ENDING -$ -$ -$ -$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

PUBLIC RECORDS MODERNIZATION TRUST SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

157

Variance With

Final Budget

Actual Positive

Original Final Amounts ( Negative)

REVENUES

Charges for services 217,654$ 217,654$ 177,584$ (40,070)$

Fines 373,279 373,279 - (373,279)

TOTAL REVENUES 590,933 590,933 177,584 (413,349)

EXPENDITURES

Current

General government 440,933 440,933 - 440,933

TOTAL EXPENDITURES

440,933 440,933 - 440,933

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

150,000 150,000 177,584 27,584

OTHER FINANCING SOURCES (USES)

Transfers in (150,000) (150,000) (209,613) (59,613)

TOTAL OTHER FINANCING

SOURCES (USES)

(150,000) (150,000) (209,613) (59,613)

NET CHANGE IN FUND BALANCE - - (32,029) (32,029)

FUND BALANCE - BEGINNING

- - 351,871 351,871

FUND BALANCE - ENDING

-$ -$ 319,842$ 319,842$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

PUBLIC RECORDS COURTS SPECIAL REVENUE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

158

Variance With

Final Budget

Actual Positive

Original Final Amounts ( Negative)

REVENUES

Charges for services 687,843$ 687,843$ 544,745$ (143,098)$

Miscellaneous 1,060,855 1,060,855 - (1,060,855)

TOTAL REVENUES

1,748,698 1,748,698 544,745 (1,203,953)

EXPENDITURES

Current

Court- related 1,373,941 1,373,941 - 1,373,941

Capital outlay - - - -

TOTAL EXPENDITURES 1,373,941 1,373,941 - 1,373,941

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

374,757 374,757 544,745 169,988

OTHER FINANCING SOURCES (USES)

Transfers in (374,757) (374,757) (1,313,810) (939,053)

TOTAL OTHER FINANCING

SOURCES (USES) (374,757) (374,757) (1,313,810) (939,053)

NET CHANGE IN FUND BALANCE

- - (769,065) (769,065)

FUND BALANCE - BEGINNING - - 951,973 951,973

FUND BALANCE - ENDING -$ -$ 182,908$ 182,908$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

FEDERAL LAW ENFORCEMENT TRUST FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

159

Variance With

Final Budget

Actual Positive

Original Final Amounts ( Negative)

REVENUES

Intergovernmental -$ -$ -$ -$

TOTAL REVENUES - - - -

EXPENDITURES

Current

Public safety - - 58,250 (58,250)

Capital outlay - - - -

TOTAL EXPENDITURES

- - 58,250 (58,250)

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES - - (58,250) (58,250)

OTHER FINANCING SOURCES (USES)

Transfers among constitutional officers - - 58,250 58,250

TOTAL OTHER FINANCING

SOURCES (USES)

- - 58,250 58,250

NET CHANGE IN FUND BALANCE

- - - -

FUND BALANCE - BEGINNING

- - - -

FUND BALANCE - ENDING

-$ -$ -$ -$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

TEEN DRIVER CHALLENGE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

160

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Intergovernmental -$ -$ -$ -$

TOTAL REVENUES

- - - -

EXPENDITURES

Current

Public safety 45,902 45,902 30,202 15,700

TOTAL EXPENDITURES

45,902 45,902 30,202 15,700

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

(45,902) (45,902) (30,202) 15,700

OTHER FINANCING SOURCES ( USES)

Transfers among constitutional officers 45,902 45,902 30,202 (15,700)

TOTAL OTHER FINANCING

SOURCES ( USES)

45,902 45,902 30,202 (15,700)

NET CHANGE IN FUND BALANCE

- - - -

FUND BALANCE - BEGINNING

- - - -

FUND BALANCE - ENDING

-$ -$ -$ -$

Budgeted Amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

OKALOOSA DEBT SERVICE FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

161

Variance With

Final Budget

Actual Positive

Original Final Amounts ( Negative)

REVENUES

Intergovernmental 446,500$ 446,500$ 446,500$ -$

Investment income (loss) - - 482 482

TOTAL REVENUES 446,500 446,500 446,982 482

EXPENDITURES

Current

General government 613,870 613,870 190,750 423,120

Debt service

Principal 2,412,000 2,412,000 2,401,000 11,000

Interest 3,223,716 3,320,936 3,316,465 4,471

Other debt service costs - - 1,913 (1,913)

TOTAL EXPENDITURES 6,249,586 6,346,806 5,910,128 436,678

EXCESS(DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (5,803,086) (5,900,306) (5,463,146) 437,160

OTHER FINANCING SOURCES (USES)

Transfers In 5,352,441 5,449,661 5,347,464 (102,197)

Transfers out (255,750) (255,750) (255,750) -

TOTAL OTHER FINANCING

SOURCES (USES) 5,096,691 5,193,911 5,091,714 (102,197)

NET CHANGE IN FUND BALANCE (706,395) (706,395) (371,432) 334,963

FUND BALANCE - BEGINNING 706,395 706,395

323,769 (382,626)

FUND BALANCE (DEFICIT) - ENDING -$ -$ (47,663)$ (47,663)$

Budgeted amounts

OKALOOSA COUNTY

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE – BUDGET AND ACTUAL

CAPITAL OUTLAY CONSTRUCTION TRUST CAPITAL PROJECTS FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2022

162

Variance With

Final Budget

Actual Positive

Original Final Amounts (Negative)

REVENUES

Taxes 1,798,634$ 1,798,634$ 1,810,247$ 11,613$

Intergovernmental 120,000 2,620,000 102,566 (2,517,434)

Investment income (loss) - - (570,122) (570,122)

Miscellaneous - - 200 200

TOTAL REVENUES 1,918,634 4,418,634 1,342,891 (3,075,743)

EXPENDITURES

Current

Culture and recreation 316,315 316,315 69,141 247,174

Capital outlay 2,980,823 6,920,088 2,571,935 4,348,153

Physical environment - 2,500,000 - 2,500,000

TOTAL EXPENDITURES

3,297,138 9,736,403 2,641,076 7,095,327

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES (1,378,504) (5,317,769) (1,298,185) 4,019,584

OTHER FINANCING SOURCES (USES)

Transfers in 350,260 1,590,184 406,113 (1,184,071)

Issuance of debt - - 19,700,000 19,700,000

TOTAL OTHER FINANCING

SOURCES (USES) 350,260 1,590,184 20,106,113 18,515,929

NET CHANGE IN FUND BALANCE (1,028,244) (3,727,585) 18,807,928 22,535,513

FUND BALANCE - BEGINNING 1,028,244 3,727,585 3,727,583 (2)

FUND BALANCE - ENDING -$ -$ 22,535,511$ 22,535,511$

Budgeted Amounts

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY

NONMAJOR ENTERPRISE FUNDS

163

Enterprise Funds are used to account for operations that are ﬁnanced and operated in a manner similar

to private business enterprises - where the intent of the Board of County Commissioner of Okaloosa

County is that the costs of providing goods or services to the general public on a continuing basis be

ﬁnanced or recovered primarily through user charges; or where the Board has decided that periodic

determination of net income is appropriate for accountability purposes.

Board of County Commissioners

Inspection and Code Enforcement Fund

This fund is used to account for the license, permit and inspection fees and related expenses for the

provision of inspection and code enforcement services to residents of the unincorporated areas of

Okaloosa County.

Tax Collector

Building Maintenance Fund

This fund accounts for certain common area maintenance charges billed to all tenants who occupy space

in the building in Niceville, Florida in which the Tax Collector is landlord. The common area maintenance

fees accumulated for future repairs and maintenance to the building are accounted for in this fund.

OKALOOSA COUNTY

COMBINING STATEMENT ON NET POSITION

NONMAJOR ENTERPRISE FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

164

Inspection Tax Collector Total Nonmajor

and Code Building Enterprise

Enforcement Maintenance Funds

ASSETS

Current assets

Cash and cash equivalents 1,069,421$ 320,458$ 1,389,879$

Investments 4,708,566 - 4,708,566

Receivables, net of allowance for uncollectible 23,320 - 23,320

Prepaids 2,352 - 2,352

Total current assets 5,803,659 320,458 6,124,117

Capital assets

Intangible 42,425 - 42,425

Machinery and equipment 408,636 - 408,636

Less accumulated depreciation/ amortization (345,960) - (345,960)

Total capital assets (net of accumulated

depreciation/amortization) 105,101 - 105,101

Total noncurrent assets 105,101 - 105,101

TOTAL ASSETS 5,908,760$ 320,458$ 6,229,218$

DEFERRED OUTFLOWS OF RESOURCES

Deferred charges related to pensions 305,023 - 305,023

Deferred charges related to OPEB 3,365 - 3,365

TOTAL DEFERRED OUTFLOWS OF RESOURCES 308,388 - 308,388

TOTAL ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES 6,217,148$ 320,458$ 6,537,606$

Business-Type Activities

OKALOOSA COUNTY

COMBINING STATEMENT ON NET POSITION

NONMAJOR ENTERPRISE FUNDS – CONTINUED

SEPTEMBER 30, 2022

165

Inspection Tax Collector Total Nonmajor

and Code Building Enterprise

Enforcement Maintenance Funds

LIABILITIES

Current liabilities

Accounts payable 7,560$ -$ 7,560$

Contracts payable 7,527 - 7,527

Compensated absences 147,940 - 147,940

Other accrued liabilities 60,090 - 60,090

Due to other governments 20,521 - 20,521

Unearned revenue 30,805 - 30,805

Total current liabilities 274,443 - 274,443

Noncurrent liabilities

Compensated absences 110,996 - 110,996

Other post employment benefits 56,730 - 56,730

Net pension liability 1,405,108 - 1,405,108

Total noncurrent liabilities 1,572,834 - 1,572,834

TOTAL LIABILITIES 1,847,277$ -$ 1,847,277$

DEFERRED INFLOWS OF RESOURCES

Deferred charges related to pensions 19,679 - 19,679

Deferred charges related to OPEB 17,938 - 17,938

TOTAL DEFERRED INFLOWS OF RESOURCES

37,617 - 37,617

NET POSITION

Net Investment in capital assets 105,101 - 105,101

Unrestricted (deficit) 4,227,153 320,458 4,547,611

NET POSITION (DEFICIT) 4,332,254 320,458 4,652,712

TOTAL LIABILITIES, DEFERRED INFLOWS,

AND NET POSITION (DEFICIT) 6,217,148$ 320,458$ 6,537,606$

Business-Type Activities

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGE IN NET POSITION

NONMAJOR ENTERPRISE FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

166

Inspection Tax Collector Total Nonmajor

and Code Building Enterprise

Enforcement Maintenance Funds

OPERATING REVENUES

Licenses and permits 3,001,435$ -$ 3,001,435$

Charges for services 494,403 - 494,403

Miscellaneous 7,535 44,061 51,596

Total operating revenues 3,503,373 44,061 3,547,434

OPERATING EXPENSES

Personal services 1,845,542 - 1,845,542

Contractual services 582,811 - 582,811

Supplies 50,947 - 50,947

Other operating expenses 147,680 - 147,680

Depreciation/ amortization 32,231 - 32,231

Total operating revenues 2,659,211 - 2,659,211

OPERATING INCOME 844,162 44,061 888,223

NONOPERATING REVENUES (EXPENSES)

Investment income (loss) (17,610) - (17,610)

Total nonoperating revenues (expenses) (17,610) - (17,610)

INCOME BEFORE CONTRIBUTIONS

AND TRANSFERS 826,552 44,061 870,613

CHANGE IN NET POSITION 826,552 44,061 870,613

NET POSITION - BEGINNING 3,505,702 276,397 3,782,099

NET POSITION - ENDING 4,332,254$ 320,458$ 4,652,712$

Business-Type Activities

OKALOOSA COUNTY

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

167

Inspection Tax Collector Total Nonmajor

and Code Building Enterprise

Enforcement Maintenance Funds

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from users 3,565,860$ 44,061$ 3,609,921$

Payments to suppliers (760,529) - (760,529)

Payments to employees (1,814,488) - (1,814,488)

Net cash provided by operating activities 990,843 44,061 1,034,904

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES

Purchase of capital assets (62,999) - (62,999)

Net cash used in capital

and related financing activities (62,999) - (62,999)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Investments (1,482,391) - (1,482,391)

Interest Income (loss) (17,610) - (17,610)

Net cash used in investing activities (1,500,001) - (1,500,001)

Net increase (decrease) in cash and cash equivalents (572,157) 44,061 (528,096)

Cash and cash equivalents - beginning of year 1,641,578 276,397 1,917,975

Cash and cash equivalents - end of year 1,069,421$ 320,458$ 1,389,879$

Cash and cash equivalents at end of year consist of:

Current assets 1,069,421$ 320,458$ 1,389,879$

Total 1,069,421$ 320,458$ 1,389,879$

Reconciliation of operating income (loss) to net

cash provided by (used in) operating activities

operating income (loss) 844,162$ 44,061$ 888,223$

Adjustments to reconcile operating income to net

cash provided by (used in) operating activities

depreciation/ amortization 32,231 - 32,231

Decrease (increase) in assets

Accounts receivables 59,985 - 59,985

Prepaid expenses 6,611 - 6,611

Deferred outflows (105,327) - (105,327)

Increase (decrease) in liabilities

Accounts payable 5,436 - 5,436

Contracts payable 6,032 - 6,032

Due to elected officials (377)

- (377)

Due to other governments (3,223) - (3,223)

Accrued liabilities (1,939) - (1,939)

Compensated absences 5,609 - 5,609

Other post employment benefits (8,094) - (8,094)

Deferred revenue 2,672 - 2,672

Customer deposits (170) - (170)

Net pension liability 1,119,055 - 1,119,055

Deferred inflows (971,820) - (971,820)

Net cash provided by operating activities 990,843$ 44,061$ 1,034,904$

Business-Type Activities

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY

INTERNAL SERVICE FUNDS

168

Internal service funds are used to account for the financing of goods or services provided by one

department or agency to other departments or agencies of the Board of County Commissioners of

Okaloosa County and to other government units, on a cost reimbursement basis.

Board of County Commissioners Self Insurance

This fund is used to account for premiums and claims associated with the provision of self-insurance

programs for Okaloosa County.

Garage Service Fund

This fund is used to account for user charges and expenses associated with vehicle maintenance and

the centralized distribution of gasoline and special fuel to various Okaloosa County Departments as well

as other County agencies.

Sheriff Compensated Absences Fund

This fund is used to accumulate and fund the short-term portion of compensated absence liability for the

Sheriff.

Sheriff Health Benefits Self Insurance Fund

This fund is used to account for premiums and claims associated with the provision of self-insurance of

health benefits for the Sheriff and to record the liability for other post employment benefits provided to

the retirees of the Sheriff.

Tax Collector FSEBT Fund

This fund accounts for the collection of self funded health insurance costs for the Tax Collector. The

payments to the plan provider are also accounted for in this fund.

OKALOOSA COUNTY

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS

SEPTEMBER 30, 2022

169

Self- Garage Tax Collector

Insurance Services FSEBT

ASSETS

Current assets

Cash and cash equivalents 293,292$ 779$ -$

Investments 4,726,203 - -

Receivables, net of allowance for uncollectible 2,064 5,266 -

Due from other funds 1,000,000 - -

Due from other elected officials - 1,510 -

Due from other governments 5,773 110,512 -

Amounts held by others for benefits - - 457,753

Inventory - 245,563 -

Prepaids 464,706 - -

Total current assets 6,492,038 363,630 457,753

Noncurrent assets

Capital assets

Land - 316,861 -

Buildings - 960,999 -

Machinery and equipment 20,889 1,602,156 -

Infrastructure - 257,345 -

Depreciation/ amortization (20,694) (2,499,902) -

Total capital assets (net of accumulated

depreciation/ amortization) 195 637,459 -

TOTAL ASSETS

6,492,233 1,001,089 457,753

DEFERRED OUTFLOWS OF RESOURCES

Deferred charges related to pensions 64,545 571,718 -

Deferred charges related to OPEB 754 4,802 -

TOTAL DEFERRED OUTFLOWS OF RESOURCES 65,299 576,520 -

TOTAL ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES 6,557,532$ 1,577,609$ 457,753$

OKALOOSA COUNTY

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS – CONTINUED

SEPTEMBER 30, 2022

170

Self- Garage Tax Collector

Insurance Services FSEBT

LIABILITIES

Current liabilities

Accounts payable 24,696$ 80,528$ -$

Contracts payable 395 223,031 -

Compensated absences 12,163 75,073 -

Claims and judgments 1,455,000 - 33,947

Other accrued liabilities 14,041 45,508 -

Due to other funds - 1,752,000 -

Due to other elected official 120

Due to depositors 1,366 - -

Total current liabilities 1,507,781 2,176,140 33,947

NONCURRENT LIABILITIES

Compensated absences 2,262 57,626 -

Claims and judgements 4,046,000 - -

Other post employment benefits 12,707 80,950 -

Net pension liability 303,670 2,018,875 -

Total noncurrent liabilities 4,364,639 2,157,451 -

TOTAL LIABILITIES 5,872,420 4,333,591 33,947

DEFERRED INFLOWS OF RESOURCES

Deferred charges related to pensions 40,181 211,867 -

Deferred charges related to OPEB 4,018 25,597 -

Total deferred inflows of resources 44,199 237,464 -

NET POSITION

Net investment in capital assets 195 637,459 -

Unrestricted (deficit) 640,718 (3,630,905) 423,806

TOTAL NET POSITION (DEFICIT) 640,913 (2,993,446) 423,806

TOTAL LIABILITIES, DEFERRED INFLOWS, AND

NET POSITION (DEFICIT) 6,557,532$ 1,577,609$ 457,753$

OKALOOSA COUNTY

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS – CONTINUED

SEPTEMBER 30, 2022

171

Sherriff Sheriff Health Total Internal

Compensated Benefits Self Service

Absences Insurance

Funds

ASSETS

Current assets

Cash and cash equivalents 1,665,028$ -$ 1,959,099$

Investments - - 4,726,203

Receivables, net of allowance for uncollectible - - 7,330

Due from other funds 13,823 250,000 1,263,823

Due from other elected officials - - 1,510

Due from other governments - - 116,285

Amounts held by others for benefits - 4,307,747 4,765,500

Inventory - - 245,563

Prepaids - - 464,706

Total current assets 1,678,851 4,557,747 13,550,019

Noncurrent assets

Capital assets

Land - - 316,861

Buildings - - 960,999

Machinery and equipment - - 1,623,045

Infrastructure - - 257,345

Depreciation/ amortization - - (2,520,596)

Total capital assets (net of accumulated

depreciation/ amortization) - - 637,654

TOTAL ASSETS

1,678,851 4,557,747 14,187,673

DEFERRED OUTFLOWS OF RESOURCES

Deferred charges related to pensions - - 636,263

Deferred charges related to OPEB - 1,647,412 1,652,968

TOTAL DEFERRED OUTFLOWS OF RESOURCES - 1,647,412 2,289,231

TOTAL ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES 1,678,851$ 6,205,159$ 16,476,904$

OKALOOSA COUNTY

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS – CONTINUED

SEPTEMBER 30, 2022

172

Sherriff Sheriff Health Total Internal

Compensated Benefits Sel

f

Service

Absences Insurance

Funds

LIABILITIES

Current liabilities

Accounts payable -$ 250,000$ 355,224$

Contracts payable - - 223,426

Compensated absences 1,678,851 - 1,766,087

Claims and judgments - 532,749 2,021,696

Other accrued liabilities - - 59,549

Due to other funds - - 1,752,000

Due to other elected official - - 120

Due to depositors - - 1,366

Total current liabilities 1,678,851 782,749 6,179,468

NONCURRENT LIABILITIES

Compensated absences - - 59,888

Claims and judgements - - 4,046,000

Other post employment benefits - 7,380,123 7,473,780

Net pension liability - - 2,322,545

Total noncurrent liabilities - 7,380,123 13,902,213

TOTAL LIABILITIES 1,678,851 8,162,872 20,081,681

DEFERRED INFLOWS OF RESOURCES

Deferred charges related to pensions - - 252,048

Deferred charges related to OPEB - 416,759 446,374

Total deferred inflows of resources - 416,759 698,422

NET POSITION

Net investment in capital assets - - 637,654

Unrestricted (deficit) - (2,374,472) (4,940,853)

TOTAL NET POSITION (DEFICIT) - (2,374,472) (4,303,199)

TOTAL LIABILITIES, DEFERRED INFLOWS, AND

NET POSITION (DEFICIT) 1,678,851$ 6,205,159$ 16,476,904$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

173

Garage Tax Collector

Self- Insurance Services FSEBT

OPERATING REVENUES

Charges for services 4,828,322$ 4,854,418$ 948,473$

Miscellaneous 1,377,202 - -

Total operating revenues 6,205,524 4,854,418 948,473

OPERATING EXPENSES

Personal services 1,206,354 1,488,052 -

Contractual services 226,197 15,144 -

Supplies 14,943 3,703,553 -

Insurance premiums and claims 2,805,523 - 558,436

Utilities - 5,040 -

Other operating expenses 29,275 309,152 66,231

Depreciation/ amortization 333 74,745 -

Total operating expenses 4,282,625 5,595,686 624,667

Operating income (loss) 1,922,899 (741,268) 323,806

NONOPERATING REVENUES (EXPENSES)

Investment Income (loss) (26,588) - -

Gain/loss on disposal of capital assets - 52,791 -

Total nonoperating revenues (expenses) (26,588) 52,791 -

Income (loss) before contributions and transfers 1,896,311 (688,477) 323,806

CHANGES IN NET POSITION 1,896,311 (688,477) 323,806

TOTAL NET POSITION - BEGINNING

(1,255,398) (2,304,969) 100,000

TOTAL NET POSITION (DEFICIT) - ENDING 640,913$ (2,993,446)$ 423,806$

OKALOOSA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS – CONTINUED

SEPTEMBER 30, 2022

174

Sheriff Sheriff Health

Compensated Benefits Self Total Internal

Absences Insurance Service Funds

OPERATING REVENUES

Charges for services -$ 7,508,243$ 18,139,456$

Miscellaneous - - 1,377,202

Total operating revenues - 7,508,243 19,516,658

OPERATING EXPENSES

Personal services - 130,901 2,825,307

Contractual services - - 241,341

Supplies - - 3,718,496

Insurance premiums and claims - 6,064,790 9,428,749

Utilities - - 5,040

Other operating expenses - 425,670 830,328

Depreciation/ amortization - - 75,078

Total operating expenses - 6,621,361 17,124,339

Operating income (loss) - 886,882 2,392,319

NONOPERATING REVENUES (EXPENSES)

Investment Income (loss) - (26,588)

Gain/loss on disposal of capital assets - 52,791

Total nonoperating revenues (expenses) - - 26,203

Income (loss) before contributions and transfers - 886,882 2,418,522

CHANGES IN NET POSITION - 886,882 2,418,522

TOTAL NET POSITION - BEGINNING - (3,261,354) (6,721,721)

TOTAL NET POSITION (DEFICIT) - ENDING -$ (2,374,472)$ (4,303,199)$

OKALOOSA COUNTY

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

175

Sheriff Sheriff Health Total Internal

Garage Tax Collector Compensated Benefits Self Service

Self-Insurance Services FSEBT Absences Insurance

Funds

CASH FLOWS FROM OPERATING

ACTIVITIES

Receipts from customers 6,223,320$ 4,949,450$ -$ 115,711$ -$ 11,288,481$

Receipt from users - - 948,473 - 7,514,193 8,462,666

Transfers of cash to others for benefits - - (457,753) - (4,307,747) (4,765,500)

Receipts from interfund services provided (2,849,656) (4,070,262) - - - (6,919,918)

Payments to suppliers (1,185,729) (1,435,698) (590,720) - (6,653,898) (9,866,045)

Net cash provided by (used in) operating activities 2,187,935 (556,510) (100,000) 115,711 (3,447,452) (1,800,316)

CASH FLOWS FROM NON-CAPITAL

FINANCING ACTIVITIES

Net interfund activity (1,000,000) 501,711 - - - (498,289)

Net cash provided by (used in) non-capital

financing activities (1,000,000) 501,711 - - - (498,289)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES

Purchase of Capital Assets - (69,044) - - - (69,044)

Proceeds from Disposal of Capital Assets - 78,234 - - - 78,234

Net cash used in capital and

related financing activities - 9,190 - - - 9,190

CASH FLOWS FROM INVESTING

ACTIVITIES

Purchases on investments (1,973,171) - - - - (1,973,171)

Interest income (loss) (26,587) - - - -

(26,587)

Net cash used in investing activities (1,999,758) - - - - (1,999,758)

NET INCREASE (DECREASE) IN CASH AND

CASH EQUIVALENTS

(811,823) (45,609) (100,000) 115,711 (3,447,452) (4,289,173)

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR

1,105,115 46,388 100,000 1,549,317 3,447,452 6,248,272

CASH AND CASH EQUIVALENTS - END OF YEAR

293,292$ 779$ -$ 1,665,028$ -$ 1,959,099$

CASH AND CASH EQUIVALENTS AT END OF

Y

EAR CONSIST OF:

Current assets 293,292$ 779$ -$ 1,665,028$ -$ 1,959,099$

Total 293,292$ 779$ -$ 1,665,028$ -$ 1,959,099$

OKALOOSA COUNTY

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

176

Sheriff Sheriff Health Total Internal

Garage Tax Collector Compensated Benefits Sel

f

Service

Self- Insurance Services FSEBT Absences Insurance

Funds

Reconciliation of operating income (loss) to

net cash provided by (used in) operating activities

Operating income (loss) 1,922,899$ (741,268)$ 323,806$ -$ 886,882$ 2,392,319$

Adjustments to reconcile operating income to net cash

provided by (used in) operating activities

Depreciation/ amortization 333 74,745 - - - 75,078

Decrease (increase) in assets

Accounts receivable 27,328 90,644 - - 50,450 168,422

Amounts held by others for benefits - - (457,753) - (4,307,747) (4,765,500)

Due from other governments (5,773) 4,388 - - - (1,385)

Inventories - (80,184) - - - (80,184)

Due from other funds - - - 101,888 (44,500) 57,388

Prepaid expenses (7,379) - - - - (7,379)

Deferred outflows (27,437) (92,205) - - (1,197,116) (1,316,758)

Increase (decrease) in liabilities

Accounts payable 16,900 (93,134) - - 250,000 173,766

Contracts payable (16,830) 171,812 - - - 154,982

Due to elected officials 120 - - - - 120

Accrued liabilities 183 (6,827) - - - (6,644)

Compensated absences 3,110

(6,316) - 13,823 - 10,617

Claims and judgements payable 242,000 - - - (413,438) (171,438)

Claims incurred but not reported - - 33,947 - - 33,947

Other post employment benefits (1,812) (11,551) - - 1,376,176 1,362,813

Deferred revenue (2,724) - - - - (2,724)

Customer deposits (1,035) - - - - (1,035)

Net pension liability 291,927 973,092 - - - 1,265,019

Deferred inflows (253,875) (839,706) - - (48,159) (1,141,740)

Net cash provided by (used in) operating activities 2,187,935$ (556,510)$ (100,000)$ 115,711$ (3,447,452)$ (1,800,316)$

OKALOOSA COUNTY

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS

SEPTEMBER 30, 2022

177

Fine and Jury and Registry

BCC

Forfeiture Witness Tax Deed Support of Court

Custodial

ASSETS

Cash and cash equivalents 100,139$ 29,282$ 444,520$ 60,934$ 18,959,318$ 36,808$

Investments 285,000 - 710,000 - - -

Accounts receivable - - - 7,328 6,667 -

Due from other governments - - - 24,651 - -

Total assets 385,139 29,282 1,154,520 92,913 18,965,985 36,808

LIABILITIES

Due to other funds - - - - - -

Due to other elected officials 89,299 - - - - 36,808

Due to other governments 295,840 5 6,059 459 4,593 -

Due to depositors - 29,277 - 92,454 - -

Taxes collected in advance for other

governments - - - - - -

Total liabilities 385,139 29,282 6,059 92,913 4,593 36,808

NET POSITION

Restricted for individuals, organizations,

and other governments - - 1,148,461 - 18,961,392 -

TOTAL NET POSITION -$ -$ 1,148,461$ -$ 18,961,392$ -$

OKALOOSA COUNTY

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

178

Bridgeway

State Center Escrow Juvenile Foreclosure

Custodial Incorporated Custodial Custodial Escrow Cash Bond

ASSETS

Cash and cash equivalents 423,728$ -$ 27,070$ 2,050$ 861,890$ 500,623$

Investments 430,000 - 150,000 - 459,000 275,000

Accounts receivable - 150 - - - -

Due from other governments - - - - - -

Total assets 853,728 150 177,070 2,050 1,320,890 775,623

LIABILITIES

Due to other funds - 150 - - - -

Due to other elected officials - - - - - -

Due to other governments 853,728 - 16,361 2,050 - 69,815

Due to depositors - - - - - -

Taxes collected in advance for other

governments - - - - - -

Total liabilities 853,728 150 16,361 2,050 - 69,815

NET POSITION

Restricted for individuals, organizations,

and other governments - - 160,709 - 1,320,890 705,808

TOTAL NET POSITION

-$ -$ 160,709$ -$ 1,320,890$ 705,808$

OKALOOSA COUNTY

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS – CONTINUED

SEPTEMBER 30, 2022

179

Individual Suspense Airport Water and

Depositors (Levies) Disbursements Escrow Sewer Escrow Total

ASSETS

Cash and cash equivalents 3,970$ 5,207$ 3,003,382$ 4,331,230$ 2,133,792$ 30,923,943$

Investments - - - - - 2,309,000

Accounts receivable - - 19,046 - - 33,191

Due from other governments - - - - - 24,651

Total assets 3,970 5,207 3,022,428 4,331,230 2,133,792 33,290,785

LIABILITIES

Due to other funds - - 32,008 - - 32,158

Due to other elected officials - - 76,185 - - 202,292

Due to other governments - - 48,633 - - 1,297,543

Due to depositors - - 33,490 - - 155,221

Taxes collected in advance for other

governments - - 2,803,395 - - 2,803,395

Total liabilities - - 2,993,711 - - 4,490,609

NET POSITION

Restricted for individuals, organizations,

and other governments 3,970 5,207 28,717 4,331,230 2,133,792 28,800,176

TOTAL NET POSITION

3,970$ 5,207$ 28,717$ 4,331,230$ 2,133,792$ 28,800,176$

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2022

180

Fine and Jury and Registry BCC

Forfeiture Witness Tax Deed Support of Court Custodial

ADDITIONS

Collections from individuals -$ -$ -$ -$ -$ -$

Fines and forfeitures and fees collected 4,724,672 - - - - -

Witness advanced funding - 6,403 - - - -

Tax deeds and fees collected - - 1,007,471 - - -

Child support collected - - - 1,703,133 - -

Registry of the court and fees collected - - - - 53,238,202 -

Recording fees collected - - - - - 573,458

Documentary stamps and

intangible tax collected - - - - - -

Probation fees collected - - - - - -

Restitution and escrow funds collected - - - - - -

Juvenile restitution collected - - - - - -

Online foreclosure funds collected - - - - - -

Cash bonds collected - - - - - -

County related taxes and fees - - - - - -

State related licenses and fees - - - - - -

Other - - - - - -

Total additions 4,724,672 6,403 1,007,471 1,703,133 53,238,202 573,458

OKALOOSA COUNTY

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

181

Bridgeway

State Center Escrow Juvenile Foreclosure Cash

Custodial Incorporated Custodial Custodial Escrow Bond

ADDITIONS

Collections from individuals -$ -$ -$ -$ -$ -$

Fines and forfeitures and fees collected - - - - - -

Witness advanced funding - - - - - -

Tax deeds and fees collected - - - - - -

Child support collected - - - - - -

Registry of the court and fees collected - - - - - -

Recording fees collected - - - - - -

Documentary stamps and

intangible tax collected 60,023,884 - - - - -

Probation fees collected - 679 - - - -

Restitution and escrow funds collected - - 363,557 - - -

Juvenile restitution collected - - - 21,119 - -

Online foreclosure funds collected - - - - 2,477,994 -

Cash bonds collected - - - - - 613,391

County related taxes and fees - - - - -

-

State related licenses and fees - - - - - -

Other - - - - - -

Total additions 60,023,884 679 363,557 21,119 2,477,994 613,391

OKALOOSA COUNTY

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

182

Individual Suspense Airport Water and

Depositors (Levies) Disbursements Escrow Sewer Escrow Total

ADDITIONS

Collections from individuals -$ 2,860$ -$ -$ -$ 2,860$

Fines and forfeitures and fees collected - - - - - 4,724,672

Witness advanced funding - - - - - 6,403

Tax deeds and fees collected - - - - - 1,007,471

Child support collected - - - - - 1,703,133

Registry of the court and fees collected - - - - - 53,238,202

Recording fees collected - - - - - 573,458

Documentary stamps and

intangible tax collected - - - - - 60,023,884

Probation fees collected - - - - - 679

Restitution and escrow funds collected - - - - - 363,557

Juvenile restitution collected - - - - - 21,119

Online foreclosure funds collected - - - - - 2,477,994

Cash bonds collected - - - - - 613,391

County related taxes and fees - - 382,569,263 - - 382,569,263

State related licenses and fees - - 33,635,041 - - 33,635,041

Other - - 750,469 526,559 445,349 1,722,377

Total additions - 2,860 416,954,773 526,559 445,349 542,683,504

OKALOOSA COUNTY

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

183

Fine and Jury and Registry BCC

Forfeiture Witness Tax Deed Support of Court Custodial

DEDUCTIONS

Distributions to individuals -$ -$ -$ -$ -$ -$

Fines and forfeitures and fees disbursed 4,724,672 - - - - -

Witness advanced funding - 6,403 - - - -

Tax deeds and fees disbursed - - 1,141,069 - - -

Child support collected - - - 1,703,133 - -

Registry of the court and fees disbursed - - - - 36,125,867 -

Recording fees disbursed - - - - - 573,458

Documentary stamps and

intangible tax disbursed - - - - - -

Probation fees disbursed - - - - - -

Restitution and escrow funds disbursed - - - - - -

Juvenile restitution disbursed - - - - - -

Online foreclosure funds disbursed - - - - - -

Cash bonds disbursed - - - - - -

County related taxes and fees - - - - - -

State related licenses and fees - - - - - -

Other - - - - - -

Total deductions 4,724,672 6,403 1,141,069 1,703,133 36,125,867 573,458

NET INCREASE (DECREASE)

IN FIDUCIARY NET POSITION

- - (133,598) - 17,112,335 -

TOTAL NET POSITION - BEGINNING,

AS RESTATED

- - 1,282,059 - 1,849,057 -

TOTAL NET POSITION - ENDING

-$ -$ 1,148,461$ -$ 18,961,392$ -$

OKALOOSA COUNTY

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

184

Bridgeway

State Center Escrow Juvenile Foreclosure Cash

Custodial Incorporated Custodial Custodial Escrow Bond

DEDUCTIONS

Distributions to individuals -$ -$ -$ -$ -$ -$

Fines and forfeitures and fees disbursed - - - - - -

Witness advanced funding - - - - - -

Tax deeds and fees disbursed - - - - - -

Child support collected - - - - - -

Registry of the court and fees disbursed - - - - - -

Recording fees disbursed - - - - - -

Documentary stamps and

intangible tax disbursed 60,023,884 - - - - -

Probation fees disbursed - 679 - - - -

Restitution and escrow funds disbursed - - 369,543 - - -

Juvenile restitution disbursed - - - 21,119 - -

Online foreclosure funds disbursed - - - - 2,215,960 -

Cash bonds disbursed - - - - - 511,825

County related taxes and fees - - - - -

-

State related licenses and fees - - - - - -

Other - - - - - -

Total deductions 60,023,884 679 369,543 21,119 2,215,960 511,825

NET INCREASE (DECREASE)

IN FIDUCIARY NET POSITION

- - (5,986) - 262,034 101,566

TOTAL NET POSITION - BEGINNING,

AS RESTATED - - 166,695 - 1,058,856 604,242

TOTAL NET POSITION - ENDING -$ -$ 160,709$ -$ 1,320,890$ 705,808$

OKALOOSA COUNTY

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS – CONTINUED

FOR THE YEAR ENDED SEPTEMBER 30, 2022

185

Individual Suspense Airport Water and

Depositors (Levies) Disbursements Escrow Sewer Escrow Total

DEDUCTIONS

Distributions to individuals 300$ -$ -$ -$ -$ 300$

Fines and forfeitures and fees collected - - - - - 4,724,672

Witness advanced funding - - - - - 6,403

Tax deeds and fees collected - - - - - 1,141,069

Child support collected - - - - - 1,703,133

Registry of the court and fees collected - - - - - 36,125,867

Recording fees collected - - - - - 573,458

Documentary stamps and

intangible tax collected - - - - - 60,023,884

Probation fees disbursed - - - - - 679

Restitution and escrow funds collected - - - - - 369,543

Juvenile restitution collected - - - - - 21,119

Online foreclosure funds collected - - - - - 2,215,960

Cash bonds collected - - - - - 511,825

County related taxes and fees - - 382,560,400 - - 382,560,400

State related licenses and fees - - 33,635,041 - - 33,635,041

Other - - 745,061 508,002 1,200 1,254,263

Total deductions 300 - 416,940,502 508,002 1,200 524,867,616

NET INCREASE (DECREASE)

IN FIDUCIARY NET POSITION

(300) 2,860 14,271 18,557 444,149 17,815,888

TOTAL NET POSITION - BEGINNING,

AS RESTATED

4,270 2,347 14,446 4,312,673 1,689,643 10,984,288

TOTAL NET POSITION - ENDING

3,970$ 5,207$ 28,717$ 4,331,230$ 2,133,792$ 28,800,176$

(THIS PAGE INTENTIONALLY LEFT BLANK)

III. STATISTICAL SECTION (UNAUDITED)

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

186

This part of Okaloosa County, Florida’s comprehensive annual ﬁnancial report presents detailed

information as a context for understanding what the information in the ﬁnancial statements, note

disclosures, and required supplementary information says about the County’s overall ﬁnancial

health.

Financial Trends

These schedules contain trend information to help the reader understand how the County’s

ﬁnancial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the County’s most signiﬁcant local

revenue source, the property tax.

Debt Capacity

These schedules present information to help the reader assess the affordability of the County’s

current levels of outstanding debt and the County’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the

environment within which the County’s ﬁnancial activities take place.

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the

information in the County’s ﬁnancial report relates to the services the County provides and the

activities it performs.

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

187

UNAUDITED

Schedule 1

(amounts in thousands) 2014 2015 2016 2017 2018 2019 2020 2021 2022

GOVERNMENTAL ACTIVITIES:

NET INVESTMENT IN CAPITAL ASSETS 149,700$ 138,402$ 156,262$ 153,520$ 167,159$ 176,565$ 187,707$ 205,802$ 246,725$

RESTRICTED:

DEBT SERVICE 504 1,039 - 435 467 563 706 324 -

OTHER PURPOSES 45,004 58,132 57,959 66,498 67,034 86,997 99,174 127,051 133,154

UNRESTRICTED (DEFICIT) 1,846 (29,906) (43,267) (51,926) (58,761) (65,276) (69,511) (50,498) (44,140)

TOTAL GOVERNMENTAL ACTIVITIES NET POSITION 197,054 167,667 170,954 168,527 175,899 198,849 218,076 282,679 335,739

BUSINESS-TYPE ACTIVITIES

NET INVESTMENT IN CAPITAL ASSETS 204,110 213,694 224,457 237,458 241,039 256,056 280,690 309,029 336,353

RESTRICTED:

DEBT SERVICE 9,964 8,643 5,837 5,150 4,156 4,200 4,276 4,797 4,837

OTHER PURPOSES 8,956 10,969 12,194 14,778 20,843 24,019 15,117 15,664 12,887

UNRESTRICTED 39,603 26,319 36,495 36,799 39,410 40,876 50,723 54,750 53,246

TOTAL BUSINESS-TYPE ACTIVITIES NET POSITION 262,633 259,625 278,983 294,185

305,449 325,151 350,806 384,240 407,323

PRIMARY GOVERNMENT

NET INVESTMENT IN CAPITAL ASSETS 353,810 352,096 380,719 390,978 408,199 432,621 468,397 514,831 583,078

RESTRICTED:

DEBT SERVICE 10,468 9,682 5,837 5,585 4,623 4,764 4,982 5,121 4,837

OTHER PURPOSES 53,960 69,101 70,153 81,276 87,876 111,015 114,291 142,715 146,041

UNRESTRICTED 41,449 (3,587) (6,772) (15,127) (19,350) (24,400) (18,788) 4,252 9,106

TOTAL PRIMARY GOVERNMENT NET POSITION 459,687$ 427,292$ 449,937$ 462,712$ 481,348$ 524,000$ 568,882$ 666,919$ 743,062$

NET POSITION BY CATEGORY - LAST NINE FISCAL YEARS * - (ACCRUAL BASIS OF ACCOUNTING )

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

188

$(100.0)

$-

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

2014 2015 2016 2017 2018 2019 2020 2021 2022

149.7

138.4

156.3

153.5

167.2

176.6

187.7

205.8

246.7

45.5

59.2

58.0

66.9

67.5

87.6

99.9

127.4

133.2

1.8

(29.9)

(43.3)

(51.9)

(58.8)

(65.3)

(69.5)

(50.5)

(44.1)

204.1

213.7

224.5

237.5

241.0

256.1

280.7

309.0

336.4

18.9

19.6

18.0

19.9

25.0

28.2

19.4

20.5

17.7

39.6

26.3

36.5

36.8

39.4

40.9

50.7

54.8

53.2

Millions

Year

Net Position by Category

Last Nine Fiscal Years

Government-Capital Government-Restricted Government-Unrestricted

Busi ness-Capital Business-Restricted Business-Unrestricted

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

189

UNAUDITED SCHEDULE 2

(amounts in thousands) 2014 2015 2016 2017 2018 2019 2020 2021 2022

EXPENSES

GOVERNMENTAL ACTIVITIES:

GENERAL GOVERNMENT 29,543$ 30,449$ 33,975$ 33,691$ 33,716$ 35,902$ 43,513$ 39,954$ 44,214$

PUBLIC SAFETY 47,804 49,096 52,621 59,924 62,277 68,591 81,394 93,551 90,904

PHYSICAL ENVIRONMENT 1,178 1,139 1,376 1,864 1,993 2,176 2,221 2,303 2,451

TRANSPORTATION 13,712 14,349 17,224 17,788 17,752 18,747 25,703 20,148 20,083

ECONOMIC ENVIRONMENT 6,174 6,432 8,501 10,730 10,333 7,616 10,772 19,043 20,824

HUMAN SERVICES 4,277 4,535 4,931 5,325 5,011 5,318 6,383 5,894 6,089

CULTURE AND RECREATION 7,521 7,317 8,238 9,480 10,488 16,834 20,679 15,109 12,144

COURT-RELATED 7,406 8,154 8,147 9,135 9,405 9,242 9,625 9,443 9,970

INTEREST AND FISCAL CHARGES 1,526 2,659 2,471 2,595 2,716 2,786 2,414 2,366 2,370

TOTAL GOVERNMENTAL EXPENSES 119,141 124,130 137,484 150,532 153,691 167,212 202,704 207,811 209,049

BUSINESS-TYPE ACTIVITIES:

WATER AND SEWE

R

25,122 26,444 26,004 26,832 29,224 29,359 30,291 31,106 31,578

AIRPORT 13,223 12,415 13,966 13,134 14,618 15,775 14,986 15,291 19,983

SOLID WASTE 8,566 7,155 7,913 9,053 9,907 10,417 10,971 11,818 13,087

INSPECTIONS 1,541 1,678 1,671 1,975 1,917 2,032 2,199 9,260 11,704

EMERGENCY MEDICAL SERVICES 7,587 7,440 8,553 9,292 10,876 11,513 11,611 2,015 2,659

TOTAL BUSINESS-TYPE EXPENSES 56,039 55,132 58,107 60,286 66,542 69,096 70,058 69,490 79,011

TOTAL PRIMARY GOVERNMENT EXPENSES 175,180 179,262 195,591 210,818 220,233 236,308 272,762 277,301 288,060

PROGRAM REVENUES - GOVERNMENTAL ACTIVITIES:

CHARGES FOR SERVICES

GENERAL GOVERNMENTAL 11,482 12,538 12,124 22,252 19,914 13,405 21,976 16,802 25,513

OTHER 11,829 13,423 13,338 3,874 5,897 15,788 24,035 33,644 25,274

OPERATING GRANTS AND CONTRIBUTIONS 7,379 6,738 8,959 15,761 9,173 7,738 16,884 32,536 11,026

CAPITAL GRANTS AND CONTRIBUTIONS 1,716 1,393 984 1,047 3,288 9,969 10,957 14,883 15,119

TOTAL GOVERNMENT PROGRAM REVENUE 32,406 34,092 35,405 42,934 38,271 46,899 73,852 97,865 76,932

CHANGES IN NET POSITION - LAST NINE FISCAL YEARS * - (ACCRUAL BASIS OF ACCOUNTING)

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

190

UNAUDITED SCHEDULE 2

2014 2015 2016 2017 2018 2019 2020 2021 2022

BUSINESS-TYPE ACTIVITIES:

CHARGES FOR SERVICES

WATER & SEWER 28,746$ 28,239$ 33,038$ 34,063$ 33,819$ 37,015$ 37,134$ 38,784$ 40,978$

OTHER 25,461 25,255 29,401 30,898 36,678 38,252 34,743 42,858 48,651

OPERATING GRANTS AND CONTRIBUTIONS 264 272 455 893 628 408 7,684 4,913 1,471

CAPITAL GRANTS AND CONTRIBUTIONS 18,962 10,860 11,697 9,059 7,737 11,299 16,664 17,901 10,020

TOTAL BUSINESS-TYPE PROGRAM REVENUE 73,433 64,626 74,591 74,913 78,862 86,974 96,225 104,456 101,120

TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 105,839 98,718 109,996 117,847 117,133 133,872 170,077 202,321 178,052

NET (EXPENSE)/REVENUE

GOVERNMENT ACTIVITIES (86,735) (90,038) (102,079) (107,598) (115,419) (120,313) (128,852) (109,946) (132,117)

BUSINESS-TYPE ACTIVITIES 17,394 9,494 16,484 14,627 12,319 17,877 26,167 34,966 22,109

TOTAL PRIMARY GOVERNMENT NET EXPENSE (69,341) (80,544) (85,595) (92,971) (103,100) (102,436) (102,685) (74,980) (110,008)

GENERAL REVENUES

GOVERNMENTAL ACTIVITIES:

TAXES 68,740 73,101 77,192 82,104

92,802 107,468 114,110 137,729 148,859

STATE SHARED REVENUE 22,673 23,228 24,643 17,977 25,795 28,978 27,314 32,076 36,999

GRANT AND CONTRIBUTIONS NOT RESTRICTED 146 3 3 - - - - - -

OTHE

R

2,951 5,831 3,527 5,090 6,378 6,817 6,654 4,745 (680)

TOTAL GOVERNMENTAL ACTIVITIES 94,510 102,163 105,365 105,171 124,975 143,263 148,078 174,550 185,178

BUSINESS-TYPE ACTIVITIES:

TAXES 1,111 1,504 1,122 2 1 1,247 668 - -

OTHER 927 3,641 1,752 572 (209) 578 (1,180) (1,532) 972

TOTAL BUSINESS-TYPE ACTIVITIES 2,038 5,145 2,874 574 (208) 1,825 (512) (1,532) 972

CHANGES IN NET POSITION

GOVERNMENTAL ACTIVITIES 7,775 12,125 3,286 (2,427) 9,556 22,950 19,226 64,604 53,060

BUSINESS-TYPE ACTIVITIES 19,432 14,639 19,358 15,201 12,111 19,702 25,655 33,434 23,083

TOTAL PRIMARY GOVERNMENT 27,207$ 26,764$ 22,644$ 12,774$ 21,667$ 42,652$ 44,881$ 98,038$ 76,143$

CHANGES IN NET POSITION - LAST NINE FISCAL YEARS * - (ACCRUAL BASIS OF ACCOUNTING)

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

191

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

2014 2015 2016 2017 2018 2019 2020 2021 2022

175.2

179.3

195.6

210.8

220.2

236.3

272.8

277.3

288.1

Changes in Net Position - Primary Government

Last Nine Fiscal Years

Primary Govt Expense

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

192

UNAUDITED SCHEDULE 3

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

GENERAL FUND

NONSPENDABLE:

NONSPENDABLE 346,136$ 288,101$ 380,834$ 439,248$ 244,992$ 684,298$ 670,484$ 693,021$ 1,590,994$ 847,274$

SPENDABLE:

RESTRICTED - - - - - - - 174,672 - -

COMMITTED 26,808 28,271 32,811 32,229 35,829 33,732 35,455 135,455 190,777 234,173

ASSIGNED - - 4,269,298 3,739,233 1,074,730 - - 8,100,000 2,014,940 4,108,600

UNASSIGNED 6,595,043 7,700,502 5,309,928 4,404,725 6,268,994 10,577,270 12,731,814 13,774,037 25,645,387 32,041,228

TOTAL GENERAL FUND 6,967,987 8,016,874 9,992,871 8,615,435 7,624,545 11,295,300 13,437,753 22,877,185 29,442,098 37,231,275

ALL OTHER GOVERNMENTAL FUNDS

NONSPENDABLE:

NONSPENDABLE 89,494 50,299 63,714 150,989 123,806 823,802 713,878 555,052 814,997 542,933

SPENDABLE:

RESTRICTED 37,677,535 49,600,151 69,362,485 85,406,990 79,617,856 69,574,098 111,202,709 118,614,646 142,655,799 170,792,903

COMMITTED 562,599 519,514 556,145 584,502 525,437 486,014 548,332

678,155 716,840 761,875

ASSIGNED 3,103,981 3,378,819 3,238,048 3,421,017 3,923,588 2,398,598 2,761,043 4,541,200 8,389,876 7,755,282

UNASSIGNED (68,114) (833,541) (63,714) (2,794,019) (123,806) - (5,678) (23,496) (1,446,531) (640,483)

TOTAL ALL OTHER GOVERNMENTAL FUNDS 41,365,495 52,715,242 73,156,678 86,769,479 84,066,881 73,282,512 115,220,284 124,365,557 151,130,981 179,212,510

TOTAL FUND BALANCES 48,333,482$ 60,732,116$ 83,149,549$ 95,384,914$ 91,691,426$ 84,577,812$ 128,658,037$ 147,242,742$ 180,573,079$ 216,443,785$

FUND BALANCES -GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

193

7.0

41.4

48.3

8.0

52.7

60.7

10.0

73.2

83.1

8.6

86.8

95.4

7.6

84.1

91.7

11.3

73.3

84.6

13.4

115.2

128.7

22.9

124.4

147.2

29.4

151.1

180.6

37.2

179.2

216.4

$-

$50.0

$100.0

$150.0

$200.0

$250.0

Total General Fund Total All Other Governmental Total Fund Balances

Millions

Fund Balances - Governmental Funds

Last Ten Fiscal Years

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

194

UNAUDITED SCHEDULE 4

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

REVENUES

TAXES 58,009,904$ 68,739,375$ 73,100,840$ 77,192,003$ 82,103,975$ 91,202,391$ 109,068,378$ 114,110,263$ 137,729,257$ 148,859,101$

LICENSES & PERMITS 816,294 822,400 848,363 865,485 462,139 514,511 561,794 577,186 617,238 631,480

INTERGOVERNMENTAL 30,863,164 30,120,655 31,928,295 33,791,368 34,785,503 38,255,522 40,162,037 50,899,401 75,476,389 48,930,859

CHARGES FOR SERVICES 18,655,266 21,372,281 23,045,957 23,862,806 24,412,780 24,257,996 26,016,319 26,069,683 30,714,349 29,117,847

FINES & FORFEITURES 476,561 1,164,801 1,384,872 1,431,519 1,251,298 1,038,282 1,183,846 1,022,234 1,131,606 1,304,713

MISCELLANEOUS 3,307,732 4,307,247 7,076,827 3,616,291 4,282,219 4,634,083 6,858,396 10,011,406 8,906,911 12,910,731

TOTAL REVENUES 112,128,921 126,526,759 137,385,154 140,759,472 147,297,914 159,902,785 183,850,770 202,690,173 254,575,750 241,754,731

EXPENDITURES

GENERAL GOVERNMENT SERVICES 26,836,490 28,079,338 29,330,828 30,551,262 29,095,006 29,395,459 30,973,435 33,440,415 34,787,267 37,191,297

PUBLIC SAFETY 44,072,056 46,091,455 47,208,844 48,955,445 53,315,581 56,403,035 60,761,166 64,961,692 85,729,737

74,093,035

PHYSICAL ENVIRONMENT 1,052,328 1,121,652 1,065,957 1,211,921 1,640,119 1,750,746 1,866,941 1,671,771 1,971,514 2,028,485

TRANSPORTATION 11,660,285 11,423,718 11,610,886 13,847,394 13,487,051 13,524,697 13,873,338 18,048,733 15,303,147 14,513,880

ECONOMIC ENVIRONMENT 4,941,758 6,336,515 6,408,961 8,466,893 9,948,113 9,800,565 6,985,903 8,805,421 18,107,279 19,327,648

HUMAN SERVICES 4,185,618 4,051,161 4,213,371 4,639,176 4,684,444 4,495,950 4,669,920 5,093,565 5,284,672 5,390,714

CULTURE AND RECREATION 11,418,463 6,603,579 6,311,704 6,914,218 7,649,712 8,575,412 14,257,158 15,614,532 12,182,884 8,957,521

COURT RELATED 7,158,838 7,400,259 8,111,902 7,808,128 8,057,760 8,296,348 8,474,981 8,262,750 9,370,006 9,316,740

CAPITAL OUTLAY 5,427,895 11,282,675 23,602,553 13,705,605 20,824,074 31,018,577 17,733,232 25,356,469 36,405,770 50,286,265

PRINCIPAL RETIREMENT 713,000 1,329,000 3,094,789 3,938,378 790,899 3,207,112 3,222,444 2,914,818 2,806,455 2,597,751

INTEREST 1,626,624 1,648,372 2,032,150 4,131,798 1,654,726 3,051,861 3,600,263 2,521,716 3,312,572 3,319,419

OTHER CHARGES 41,210 13,101 212,836 150,124 3,622 1,305 185,877 500 98,804 1,913

TOTAL EXPENDITURES 119,134,565 125,380,825 143,204,781 144,320,342 151,151,107 169,521,067 166,604,658 186,692,382 225,360,107 227,024,668

EXCESS OF REVENUES

OVER(UNDER) EXPENDITURES (7,005,644) 1,145,934 (5,819,627) (3,560,870) (3,853,193) (9,618,282) 17,246,112 15,997,791 29,215,643 14,730,063

OTHER FINANCING SOURCES (USES)

TRANSFERS IN 6,333,962 16,598,302 9,263,264 8,841,151 7,920,212 8,726,549 10,727,023 13,105,904 24,260,282 15,198,297

TRANSFERS OUT (5,938,836) (7,820,602) (8,499,093) (7,829,475) (7,210,946) (6,771,442) (9,077,752) (10,518,990) (22,711,184) (14,425,054)

BUDGET TRANSFERS AMONG

CONSTITUTIONAL OFFICERS - 825,000 - - - - - - - -

ISSUANCE OF DEBT 5,000,000 1,650,000 27,472,889 13,584,438 - - 17,160,000 - 2,565,595 20,367,400

ORIGINAL ISSUE PREMIUM - - - 1,200,121 - - 8,024,842 - - -

TOTAL OTHER FINANCING SOURCES(USES) 5,395,126 11,252,700 28,237,060 15,796,235 709,266 1,955,107 26,834,113 2,586,914 4,114,693 21,140,643

NET CHANGE IN FUND BALANCES (1,610,518)$ 12,398,634$ 22,417,433$ 12,235,365$ (3,143,927)$ (7,663,175)$ 44,080,225$ 18,584,705$ 33,330,336$ 35,870,706$

DEBT SERVICE AS A PERCENTAGE OF

NONCAPITAL EXPENDITURES 4.00% 2.44% 3.87% 6.04% 1.65% 3.83% 4.39% 3.00% 2.84% 2.68%

CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS-LAST TEN FISCAL YEARS

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

195

112.1

126.5

137.4

140.8

147.3

159.9

183.9

202.7

254.6

241.8

119.1

125.4

143.2

144.3

151.2

169.5

166.6

186.7

225.4

227.0

(1.6)

12.4

22.4

12.2

(3.1)

(7.7)

44.1

18.6

33.3

35.9

$(20.0)

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

$220.0

$240.0

$260.0

$280.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Millions

Year

Changes in Fund Balances - Governmental Funds

Last Ten Fiscal Years

Revenues Expenditures Change in Net Position

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

196

AD TOURIST 9TH CENT LOCAL LOCAL SECOND LOCAL COMMUNICATION HALF CENT

FISCAL VALOREM DEVELOPMENT VOTED BUSINESS OPTION OPTION SERVICE SALES TOTAL

YEA

R

TAX TAX FUEL TAX TAX FUEL TAX FUEL TAX TAX TAX TAXES

2013 44,348,020$ 13,520,017$ 1,066,902$ 268,190$ 3,559,220$ -$ 1,956,905$ -$ 64,719,254$

2014 47,044,564$ 14,780,313$ 1,038,703$ 276,084$ 3,694,824$ 1,167,117$ 1,848,458$ -$ 69,850,063$

2015 49,668,734$ 16,713,548$ 992,766$ 324,402$ 3,533,694$ 1,604,709$ 1,766,987$ -$ 74,604,840$

2016 51,839,796$ 18,078,186$ 1,039,247$ 283,877$ 3,699,205$ 1,680,999$ 1,692,888$ -$ 78,314,199$

2017 54,096,832$ 19,534,276$ 1,049,857$ 304,577$ 3,737,446$ 1,682,579$ 1,700,212$ -$ 82,105,778$

2018 62,942,101$ 21,252,688$ 1,093,007$ 215,021$ 3,891,258$ 1,762,082$ 1,646,991$ -$ 92,803,148$

2019 66,852,871$ 23,136,045$ 1,126,931$ 285,849$ 4,008,738$ 1,814,424$ 1,457,663$ 11,633,311$ 110,315,833$

2020 71,210,378$ 18,696,605$ 1,099,419$ 289,320$ 3,902,287$ 1,766,471$ 1,440,814$ 16,372,724$ 114,778,018$

2021 75,802,408$ 32,335,123$ 1,204,797$ 385,145$ 4,574,070$ 1,939,370$ 1,413,169$ 20,076,386$ 137,730,469$

2022 80,782,659$ 36,875,377$ 1,238,295$ 306,309$ 4,525,347$ 1,995,275$ 1,366,516$ 21,769,843$ 148,859,620$

UNAUDITED

GOVERNMENTAL TAX REVENUES BY SOURCE - LAST TEN FISCAL YEARS

SCHEDULE 5

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

197

112.1

126.5

137.4

140.8

147.3

159.9

183.9

202.7

254.6

241.8

119.1

125.4

143.2

144.3

151.2

169.5

166.6

186.7

225.4

227.0

(1.6)

12.4

22.4

12.2

(3.1)

(7.7)

44.1

18.6

33.3

35.9

$(20.0)

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

$220.0

$240.0

$260.0

$280.0

2013201420152016201720182019202020212022

Millions

Year

Changes in Fund Balances - Governmental Funds

Last Ten Fiscal Years

Revenues Expenditures Change in Net Position

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

198

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Ad

Valorem

Tax

Tourist

Devt Tax

9th Cent

Fuel Tax

Local

Business

Tax

Local

Option

Fuel Tax

Sec Local

Option

Fuel Tax

Comm

Srvc Tax

Half Cent

Sales Tax

44.3

13.5

1.1

0.3

3.6

0.0

2.0

0.0

47.0

14.8

1.0

0.3

3.7

1.2

1.8

0.0

49.7

16.7

1.0

0.3

3.5

1.6

1.8

0.0

51.8

18.1

1.0

0.3

3.7

1.7

0.0

54.1

19.5

1.0

0.3

3.7

1.7

0.0

62.9

21.3

1.1

0.2

3.9

1.8

1.6

0.0

66.9

23.1

1.1

0.3

4.0

1.8

1.5

11.6

71.2

18.7

1.1

0.3

3.9

1.8

1.4

16.4

75.8

32.3

1.2

0.4

4.6

1.9

1.4

20.1

80.8

36.9

1.2

0.3

4.5

2.0

1.4

21.8

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

199

Ad Val orem Tax

54.27%

Tourist Devt Tax

22.72%

9th Cent Fuel Tax

0.83%

Local Business Tax

0.21%

Loca l Option Fuel Tax

3.04%

Sec Local Option Fuel

Tax

1.34%

Comm Srvc Ta x

0.92%

Half Cent Sales Tax

14.62%

Governmental Tax Revenues by Source

Fiscal Year 2022

Ad Valorem Tax Tourist Devt Tax 9th Cent Fuel Tax Local Business Tax

Local Option Fuel Tax Sec Local Option Fuel Tax Comm Srvc Tax Half Cent Sales Tax

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

200

TOTAL TOTAL ASSESSED

CENTRALLY TAXABLE DIRECT ESTIMATED TO

FISCAL REAL PERSONAL ASSESSED ASSESSED TAX ACTUAL ESTIMATED

YEAR PROPERTY PROPERTY PROPERTY VALUE RATE VALUE (1) ACTUAL

2014 13,638,594,459$ 729,296,565$ 7,839,711$ 14,375,730,735$ 11.0088 16,912,624,394$ 85.00%

2015 14,250,207,252$ 776,305,018$ 7,960,210$ 15,034,472,480$ 10.6368 17,687,614,682$ 85.00%

2016 14,888,659,305$ 784,426,652$ 8,494,897$ 15,681,580,854$ 10.7178 18,448,918,652$ 85.00%

2017 15,600,116,012$ 807,013,281$ 8,353,692$ 16,415,482,985$ 10.4908 19,312,332,924$ 85.00%

2018 16,605,239,655$ 839,650,782$ 8,662,999$ 17,453,553,436$ 10.5246 20,533,592,278$ 85.00%

2019 17,703,889,423$ 865,862,150$ 8,524,526$ 18,578,276,099$ 10.3685 21,856,795,411$ 85.00%

2020 18,897,824,142$ 896,897,664$ 3,442,857$ 19,798,164,663$ 10.1959 23,291,958,427$ 85.00%

2021 20,185,607,358$ 914,560,720$ 3,445,853$ 21,103,613,931$ 10.1022 24,827,781,095$ 85.00%

2022 23,135,342,423$ 958,343,838$ 3,576,946$ 24,097,263,207$ 9.7349 28,349,721,420$ 85.00%

UNAUDITED

SOURCE:

(1) BASED ON PROPERTY APPRAISER'S ESTIMATE OF ASSESSED PROPERTY VALUATION BEING 85% OF MARKET VALUE

TAXABLE ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF PROPERTY - LAST TEN FISCAL YEARS

SCHEDULE 6

OKALOOSA COUNTY PROPERTY APPRAISER

ASSESSED VALUE

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

201

$-

$5,000.0

$10, 000.0

$15, 000.0

$20, 000.0

$25, 000.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

13,031.0

13,638.6

14,250.2

14,888.7

15,600.1

16,605.2

17,703.9

18,897.8

20,185.6

23,135.3

756.6

729.3

776.3

784.4

807.0

839.7

865.9

896.9

914.6

958.3

7.6

7.8

8.0

8.5

8.4

8.7

8.5

3.4

3.6

Millions

Year

Taxable Assessed Value

Last Ten Fiscal Years

Real Property Personal Property Centrally Ass ess ed Property

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

202

SCHEDULE 7

PROPERTY TAX MILLAGE RATES FOR DIRECT AND OVERLAPPING GOVERNMENTS - LAST TEN FISCAL YEARS

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

COUNTYWIDE (BOCC)

GENERAL REVENUE 3.2899 3.4308 3.4308 3.4308 3.8308 3.8308 3.8308 3.8308 3.8308 3.8308

UNINCORPORATED AREA (BOCC)

MUNICIPAL SERVICE TAXING UNIT (MSTU) 0.1800 0.1800 0.2990 0.2990 0.2990 0.2990 0.2990 0.2990 0.2990 0.2990

COUNTYWIDE (OTHER)

SCHOOL BOARD 7.4760 7.5510 7.2790 6.9070 6.5880 6.3610 6.2060 6.0350 5.9430 5.5790

TOTAL MILLAGES 10.9459 11.1618 11.0088 10.6368 10.7178 10.4908 10.3358 10.1648 10.0728 9.7088

MUNICIPALITIES

CINCO BAYOU 2.3500 2.3500 3.0000 3.0000 3.0000 3.0000 3.0000 3.0000 3.0000 3.0000

CRESTVIEW 5.5966 5.8466 6.9466 6.9466 6.9466 6.9466 6.9466 6.9466 6.9466 6.8466

DESTIN 1.4550 1.5000 1.5000 1.6150 1.6150 1.6150 1.6150 1.6150 1.6150 1.6150

FORT WALTON BEACH 4.5383 5.7697 5.7697 5.7697 5.7697 5.7697 5.6395 5.3293 5.3293 4.9999

LAUREL HILL 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000

MARY ESTHE

R

2.6435 2.6435 3.5000 3.8880 4.2347 4.2347 5.0261 5.0261 5.0261 5.0261

NICEVILLE 3.7000 3.7000 3.7000 3.7000 3.7000 3.7000 3.7000 3.7000 3.7000 3.7000

SHALIMA

R

2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 1.8000 1.8000 1.8000

VALPARAISO 4.5240 4.5240 5.0240 5.0240 5.0240 5.0240 5.0240 5.0240 5.0240 5.0240

SPECIAL DISTRICTS

NW FLORIDA WATER MANAGEMENT 0.0400 0.0400 0.0378 0.0366 0.0353 0.0338 0.0327 0.0311 0.0294 0.0261

LAKE PIPPIN MSBU FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT

DESTIN FIRE 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

EAST NICEVILLE FIRE 2.3700 2.3700 2.7000 3.0176 3.0176 3.0176 3.0176 3.0176 3.0176 3.4000

FLOROSA FIRE 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.5000 1.7500 2.2500 2.2500

NORTH BAY FIRE 2.3500 2.3500 2.3500 2.3500 2.3500 2.3500 2.3500 2.3500 2.2700 2.2700

OCEAN CITY-WRIGHT FIRE 2.0000 2.2500 2.4000 2.5800 2.5800 2.7500 2.7500 2.7500 2.7500 2.7500

OKALOOSA ISLAND FIRE 3.1154 3.5550 3.4500 3.3699 3.6000 3.4308 3.2033 3.0498 3.7000 3.7000

SYLVANIA HEIGHTS 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

ALMARANTE FIRE FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT

BAKER FIRE FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT

BLACKMAN FIRE FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT

DORCAS FIRE FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT

HOLT FIRE FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT

NORTH OKALOOSA FIRE FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT FLAT

SOURCE: OKALOOSA COUNTY PROPERTY APPRAISER

UNAUDITED

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

203

3.2899

0.1800

7.4760

3.4308

0.1800

7.5510

3.4308

0.2990

7.2790

3.4308

0.2990

6.9070

3.8308

0.2990

6.5880

3.8308

0.2990

6.3610

3.8308

0.2990

6.2060

3.8308

0.2990

6.0350

3.8308

0.2990

5.9430

3.8308

0.2990

5.5790

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

Countywide (BOCC)-General Revenue Unincorporated Area (BOCC)-MSTU Countywide-School Board

Dollars

Property Tax Millage Rates

Last Ten Fiscal Years

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

204

UNAUDITED

PERCENTAGE PERCENTAGE

OF TOTAL OF TOTAL

TAXABLE TAXABLE TAXABLE TAXABLE

ASSESSED ASSESSED ASSESSED ASSESSED

TAXPAYER VALUE VALUE VALUE VALUE

FLORIDA POWER & LIGHT CO 122,112,444$ 1 0.51% 145,159,830$ 1.05%

FLORIDA GAS TRANSMISSION CO 63,494,057 2 0.26% 74,695,618 0.54%

CHOCTAWHATCHEE ELECTRIC CO 40,419,127 3 0.17% 31,553,084 0.23%

EMERALD GRANDE INC 54,227,300 0.39%

LURIN REAL ESTATE HOLDINGS VI 25,079,807 4 0.10%

EMBARQ CORP 14,209,914 6 0.06% 45,790,554 0.33%

DESTIN COMMONS LTD 34,562,451 0.25%

SRM-SPE LLC 27,517,960

BEACH RESORT INVESTMENTS LLC 22,140,373

FORT WALTON BEACH MEDICAL CENTE

R

17,112,518 5 0.07% 0.00%

UNITI FIBER HOLDINGS INC 14,081,102 7 0.06%

JRW INVESTMENTS LLC 9,536,055 8 0.04%

GULF COAST SOLAR CENTER I LLC 9,393,667 9 0.04%

Prime Storage Crestview LLC 8,746,294 # 0.04%

FT WALTON DEFENSE HOUSING LTD 0.00%

L-3 COMMUNICATIONS CRESTVIEW

0.00%

COX COM INC

29,024,958 0.21%

WAL-MART STORES, INC

24,944,494

L-3 COMMUNICATIONS INTEGRATED

0.00%

POWERSOUTH ENERGY COOPERATIVE 0.00%

TOTAL PRINCIPAL TAXPAYER VALUE 324,184,985 1.35% 489,616,622 3.55%

TOTAL OTHER TAXPAYER VALUE 23,773,078,222 98.65% 13,307,128,915 96.45%

TOTAL TAXABLE ASSESSED VALUE 24,097,263,207$ 100.0% 13,796,745,537$ 100.0%

SCHEDULE 8

PRINCIPAL PROPERTY TAX PAYERS - LAST FISCAL YEAR COMPARED TO THE FISCAL YEAR NINE YEARS EARLIER

2022 2013

SOURCE: OKALOOSA COUNTY PROPERTY APPRAISER

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

205

Principal Tax Payers

1.35%

Taxable Assessed

Val ue

98.65%

Principal Property Tax Payers

Current Year 2022

Principal Tax Payers

3.55%

Taxable Assessed

Val ue

96.45%

Principal Property Tax Payers

Year 2013

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

206

TAXES LEVIED COLLECTIONS

FISCAL FOR THE PERCENTAGE IN SUBSEQUENT PERCENTAGE

YEAR FISCAL YEAR AMOUNT OF LEVY YEARS AMOUNT OF LEVY

2013 44,715,750$ 43,934,031$ 98.3% 168,991$ 44,103,022$ 98.6%

2014 47,418,367$ 46,623,220$ 98.3% 210,673$

46,833,893$

98.8%

2015 51,479,158$ 49,506,421$ 96.2% 162,314$

49,668,735$

96.5%

2016 53,794,633$ 51,776,803$ 96.2% 62,994$

51,839,797$

96.4%

2017 56,098,297$ 54,031,657$ 96.3% 65,175$

54,096,832$

96.4%

2018 65,279,339$ 62,899,736$ 96.4% 42,365$

62,942,100$

96.4%

2019 69,420,530$ 66,809,436$ 96.2% 43,434$

66,852,871$

96.3%

2020 73,871,680$ 71,100,748$ 102.2% 109,630$

71,210,378$

102.4%

2021 78,715,123$ 75,724,523$ 96.2% 77,886$

75,802,408$

96.3%

2022 83,896,832$ 79,656,326$ 94.9% 1,126,333$

80,782,659$

96.3%

SOURCE: OKALOOSA COUNTY TAX COLLECTOR RECAPITULATION OF THE TAX ROLL

UNAUDITED SCHEDULE 9

PROPERTY TAX LEVIES AND COLLECTIONS - LAST TEN FISCAL YEARS

COLLECTED WITHIN THE

FISCAL YEAR OF THE LEVY TOTAL COLLECTIONS TO DATE

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

207

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Millions

Year

Property Tax Levies and Collections

Last Ten Fiscal Years

Levied Collected

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

208

SPECIAL COMMERCIAL WATER AIRPORT SOLID CONFERENCE TOTAL PERCENTAGE

FISCAL OBLIGATION REVENUE FINANCED PAPER, NOTES, AND BONDS, NOTES, BONDS, NOTES, WASTE CENTER CAPITAL PRIMARY OF PERSONAL PER

YEAR BONDS(1) BONDS (2) PURCHASES (3) LOANS (4) AND LOANS (5) AND LOANS (6) BONDS (7) BONDS (8) LEASES GOVERNMENT INCOME CAPITA

2013 -$ 28,510,203$ -$ 4,973,393$ 84,863,512$ 22,235,623$ -$ 155,000$ -$ 137,070,512$ -$ 772$

2014 -$ 28,290,659$ -$ 6,059,000$ 88,566,870$ 20,249,582$ -$ -$ -$ 143,166,111$ -$ 732$

2015 -$ 52,719,870$ -$ 6,022,211$ 81,984,312$ 19,235,035$ -$ -$ -$ 159,961,428$ -$ 771$

2016 -$ 63,899,514$ 416,292$ 4,490,979$ 79,094,314$ 19,515,143$ -$ -$ -$ 167,416,242$ -$ 697$

2017 -$ 63,368,537$ 208,146$ 4,340,756$ 75,459,990$ 18,698,323$ -$ -$ -$ 162,075,753$ -$ 728$

2018 -$ 61,187,380$ -$ 1,957,000$ 71,789,364$ 17,839,765$ -$ -$ -$ 152,773,509$ -$ 796$

2019 -$ 84,293,639$ -$ 2,222,403$ 67,991,638$ 13,439,518$ -$ -$ -$ 157,520,559$ -$ 822$

2020 -$ 81,221,478$ -$ 1,148,506$ 64,068,792$ 5,915,000$ -

$ -$ -$ 143,022,298$ -$ 722$

2021 -$ 78,098,486$ 67,908$ 2,480,000$ 59,978,869$ 5,335,000$ -$ -$ -$ 145,960,263$ -$ 685$

2022 -$ 74,950,367$ 285,908$ 22,320,000$ 55,711,531$ -$ -$ -$ -$ 153,267,806$ -$ 710$

(1) Includes Refunding, Revenue & Improvement Bonds, 1985 and Capital Improvement Bonds, 1991

(2) Includes Sales Tax Revenue Bonds, Series 2009 (Net issuance discount), Capital Improvement Revenue Bond, Series 2011, Sales Tax Revenue Bonds, Series 2014, Sales Tax Revenue Bonds, Series 2016, and Revenue Bonds, Series 2019

(3) Includes Capital Leases and Operating Leases with Escalator Clauses

(4) Includes Florida Local Government Finance Commission Pooled Paper Loan and Private Bank Note, 2015 and Capital Improvement Revenue Note, Series 2020

(5) Includes State Pollution Control Bonds, and Revenue Bonds, Series 2015 (Net issuance premium)

(6) Includes Revenue Bonds 2007 (Net issuance discount) and 2014, State Infrastructure Bank Loans, and 2015 Commercial Paper Loan- debt defeased in FY21

(7) Includes Capital Improvement Bonds, 1991

(8) Includes Fourth Cent Tourist Development Tax Revenue Bonds, 2000

UNAUDITED SCHEDULE 10

RATIOS OF OUTSTANDING DEBT BY TYPE - LAST TEN FISCAL YEARS

GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

209

33,483,596.00

34,349,659.00

58,742,081.00

68,806,785.00

67,917,439.14

63,144,380.00

86,516,042.42

82,369,984.31

80,646,394.00

97,556,274.87

107,254,135

108,816,452

101,219,347

98,609,457

94,158,314

89,629,129

81,431,156

69,983,792

65,313,869

55,711,531

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Debt by Type

Last Ten Fiscal Years

Government Debt Business-type Debt

$772

$732

$771

$697

$728

$796

$822

$722

$685

$710

$0

$250

$500

$750

$1,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Per Capita Debt

Last Ten Fiscal Years

Per Capita Debt

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

210

SCHEDULE 11

FISCAL Gross Operating Direct Operating Net Revenue

YEAR Revenue Expense Avail -Debt Serv 2012 2015 TOTAL COVERAGE

2006 23,719,695$ 15,272,060$ 8,447,635$ 68,680$ 331,924$ 3,422,370$ -$ -$ -$ 3,822,974$ 2.21

2007

26

,

745

,

817

$

15

,

974

,

674

$

10

,

771

,

143

$

68

,

677

$

194

,

186

$

2

,

967

,

970

$

1

,

171

,

405

$

-

$

-

$

4

,

402

,

238

$

2

.

45

2008 24,694,611$ 16,827,092$ 7,867,519$ 67,831$ -$ 2,964,695$ 1,900,194$ -$ -$ 4,932,720$ 1.59

2009 23,481,347$ 16,371,638$ 7,109,709$ 67,743$ -$ 2,976,286$ 509,283$ -$ -$ 3,553,312$ 2.00

2010 24,831,872$ 15,267,581$ 9,564,291$ 67,648$ -$ 801,210$ 5,171,437$ -$ -$ 6,040,295$ 1.58

2011 25,895,709$ 16,650,924$ 9,244,785$ 67,542$ -$ 982,850$ 4,989,988$ -$ -$ 6,040,380$ 1.53

2012 26,581,965$ 15,571,980$ 11,009,985$ 67,426$ -$ 3,728,770$ -$ 533,531$ -$ 4,329,727$ 2.54

2013 26,685,108$ 15,295,914$ 11,389,194$ 68,003$ -$ 3,754,732$ 2,837,287$ 489,839$ -$ 7,149,861$ 1.59

2014 29,122,953$ 14,809,770$ 14,313,183$ 66,451$ -$ 3,790,065$ -$ 536,674$ -$ 4,393,190$ 3.26

2015 33,938,933$ 15,992,250$ 17,946,683$ 33,520$ -$ 5,037,556$ 3,077,105$ 300,731$ 1,902,096$ 10,351,008$ 1.73

2016 33,971,112$ 15,844,441$ 18,126,671$ -$ -$ -$ -$ -$ 4,899,300$ 4,899,300$ 3.70

2017 34,491,900$ 16,807,625

$ 17,684,275$ -$ -$ -$ -$ -$ 5,807,763$ 5,807,763$ 3.04

2018 34,473,966$ 19,128,076$ 15,345,890$ -$ -$ -$ -$ -$ 5,799,050$ 5,799,050$ 2.65

2019 38,369,807$ 18,314,645$ 20,055,162$ -$ -$ -$ -$ -$ 5,794,585$ 5,794,585$ 3.46

2020 37,845,933$ 19,083,690$ 18,762,243$ -$ -$ -$ -$ -$ 5,820,800$ 5,820,800$ 3.22

2021 38,829,006$ 19,745,082$ 19,083,924$ -$ -$ -$ -$ -$ 5,744,000$ 5,744,000$ 3.32

2022 40,770,515$ 19,470,790$ 21,299,725$ -$ -$ -$ -$ -$ 5,829,250$ 5,829,250$ 3.65

WATER REVENUE BONDS AND NOTES (PRINCIPAL + INTEREST)

UNAUDITED

1985 1992 2004 2006

PLEDGED-REVENUE BOND COVERAGE

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

211

SCHEDULE 11

FISCAL Gross Operating Passenger Facility Direct Operating Net Revenue

YEAR Revenue Charges Expense Avail -Debt Serv 2003 2007 2014 TOTAL COVERAGE

2009 8,557,210$ 1,378,312$ 5,674,469$ 4,261,053$ 789,413$ 208,221$ -$ 997,634$ 4.27

2010 9,118,672$ 1,466,902$ 6,036,864$ 4,548,710$ 799,213$ 891,775$ -$ 1,690,988$ 2.69

2011 9,602,757$ 1,732,199$ 7,893,609$ 3,441,347$ 797,950$ 887,675$ -$ 1,685,625$ 2.04

2012 9,502,093$ 1,451,015$ 8,056,047$ 2,897,061$ 795,575$ 892,975$ -$ 1,688,550$ 1.72

2013 9,334,305$ 1,384,486$ 7,117,500$ 3,601,291$ 797,393$ 887,075$ -$ 1,684,468$ 2.14

2014 9,052,923$ 1,488,823$ 7,864,096$ 2,677,650$ 353,691$ 6,250,575$ 559,028$ 7,163,294$ 0.37

2015 8,448,925$ 1,321,169$ 7,776,146$ 1,993,948$ -$ 300,087$ 269,150$ 569,237$ 3.50

2016 10,073,560$ 1,756,663$ 8,554,275$ 3,275,948$ -$ 1,160,662$ 894,380$ 2,055,042$ 1.59

2017 12,013,833$ 2,243,640$ 7,991,528$ 6,265,945$ -$ 866,938$ 747,825$ 1,614,763$ 3.88

2018 14,165,274$ 2,776,566$ 9,235,558$ 7,706,282$ -$ 864,906$ 751,130$ 1,616,036$ 4.77

2019 16,263,239$ 3,392,550$ 10,251,267$ 9,404,522$ -$ 878,969$ 748,963$ 1,627,931

$ 5.78

2020 13,004,521$ 2,199,401$ 9,441,390$ 5,762,532$ -$ 7,409,863$ 746,323$ 8,156,185$ 0.71

2021 16,675,750$ 3,822,857$ 9,671,311$ 10,827,296$ -$ 100$ 748,053$ 748,153$ 14.47

2022 20,318,557$ 3,833,214$ 14,445,986$ 9,705,785$ -$ -$ -$ -$ 0.00

AIRPORT REVENUE BONDS

(PRINCIPAL + INTEREST)

PLEDGED-REVENUE BOND COVERAGE

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

212

SCHEDULE 11

FISCAL Gross Operating Direct Operating Net Revenue

YEAR Revenue Expense Avail -Debt Serv Bond TOTAL COVERAGE

2009 5,249,570$ 3,419,702$ 1,829,868$ 671,573$ 671,573$ 2.72

2010 4,617,857$ 3,094,242$ 1,523,615$ 942,038$ 942,038$ 1.62

2011 6,062,145$ 2,597,664$ 3,464,481$ 8,929,631$ 8,929,631$ 0.39

2012 6,110,432$ 3,509,121$ 2,601,311$ 1,903,563$ 1,903,563$ 1.37

2013 6,258,565$ 2,437,430$ 3,821,135$ 1,535,370$ 1,535,370$ 2.49

Note: Conference Center debt was paid in full in fiscal year 2014.

CONFERENCE CENTER REVENUE BONDS

(PRINCIPAL + INTEREST)

PLEDGED-REVENUE BOND COVERAGE

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

213

UNAUDITED SCHEDULE 12

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AND COMPUTATION

PERCENT

APPLICABLE TO

DEBT THIS GOVERNMENTAL

DIRECT: OUTSTANDING UNIT

OKALOOSA COUNTY - REVENUE BONDS 74,950,367$ 100%

OKALOOSA COUNTY - PRIVATE BANK NOTES 22,320,000$ 100%

OKALOOSA COUNTY - CAPITAL LEASE 285,908$ 100%

OVERLAPPING:

OKALOOSA GOVERNMENTS ARE ENCOURAGED, BUT NOT REQUIRED TO PRESENT INFORMATION ABOUT DIRECT OR OVERLAPPING DEBT.

OVERLAPPING DEBT IS NOT PRESENTED.

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

214

SCHEDULE 13

PERSONAL PER CAPITA

PERCENT INCOME PERCENT PERSONAL PERCENT UNEMPLOYMENT

YEAR POPULATION +/- IN THOUSANDS +/- INCOME +/- RATE

2013 187,486 0.1% $8,775,211 2.7% $45,277 0.8% 5.70%

2014 190,666 1.7% $8,783,041 0.1% $44,695 -1.3% 5.10%

2015 200,895 5.4% $8,983,919 2.3% $45,222 1.2% 3.80%

2016 202,183 0.6% $9,422,078 4.9% $46,836 3.6% 4.00%

2017 195,488 -3.3% $9,627,521 2.2% $47,433 1.3% 3.40%

2018 198,152 1.4% $9,889,567 2.7% $48,128 1.5% 3.40%

2019 201,514 1.7% $10,249,556 3.6% $49,191 2.2% 2.30%

2020 203,951 1.2% $11,626,309 3.7% $54,630 1.4% 4.10%

2021 213,204 4.5% $11,985,990 3.1% $55,335 1.3% 2.80%

2022 215,751 1.2% $12,322,347 (1) 2.8% $56,069 (1) 1.3% 1.90%

(1) Estimated income figures based upon average percent in prior years.

SOURCE: FLORIDA RESEARCH AND ECONOMIC DATABASE

UNAUDITED

DEMOGRAPHIC AND ECONOMIC STATISTICS - LAST TEN YEARS

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

215

(4.0)

(2.0)

0.0

2.0

4.0

6.0

Percentage

Year

Population

Last Ten Fiscal Years

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Percentage

Year

Personal Income

Last Ten Fiscal Years

(2.0)

(1.0)

0.0

1.0

2.0

3.0

4.0

Percentage

Year

Per Capita Income

Last Ten Fiscal Years

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Percentage

Year

Unemployment Rate

Last Ten Fiscal Years

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

216

UNAUDITED

PERCENTAGE PERCENTAGE

OF TOTAL OF TOTAL

EMPLOYE

R

EMPLOYEES EMPLOYMENT EMPLOYEES EMPLOYMENT

UNITED STATES DEPT OF AIR FORCE 5965 5.99%

UNITED STATES DEPT OF ARMY 857 0.86%

LOCKHEED MARTIN CORPORATION 465 0.47% 800 0.82%

NORTHWEST FLORIDA STATE COLLEGE 396 0.40%

WAL-MART INC 355 0.36%

OKALOOSA COUNTY SCHOOL DISTRICT 353 0.35%

JACOBS ENGINEERING GROUP INC 270 0.27%

BOEING 269 0.27% 419 0.43%

UNITED STATES DEPT OF DEFENSE 259 0.26%

LAUREL TECHNOLOGIES PARTNERSHIP 257 0.26%

UNITED STATES DEPT OF NAVY

KELLER WILLIAMS REALTY INC

FT WALTON BEACH MEDICAL CENTER 1250 1.28%

L-3 CRESTVIEW AEROSPACE 1064 1.09%

DRS TRAINING & CONTROL SYSTEMS 454 0.46%

INDYNE, INC 800 0.82%

NORTH OKALOOSA MEDICAL CENTER 678 0.69%

RESORT QUEST

JACOBS TEAS 1483 1.52%

BAE SYSTEMS TECHNICAL SERVICES 410 0.42%

NATIONAL ELECTRONICS WARRANTY 450 0.46%

TOTAL 9,446 9.48% 7,808 7.98%

TOTAL COUNTY EMPLOYMENT 99,643 97,841

SOURCE: Office of Economic Development and Engagement of UWF

SCHEDULE 14

PRINCIPAL EMPLOYERS - CURRENT YEAR AND NINE YEARS AGO

2023 2013

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

217

Principal

Empl oyers

9.48%

Total Employment

90.52%

Principal Employers

Current Year

2023

Principal

Empl oyers

7.98%

Total

Employment

92.02%

Principal Employers

Nine Years Ago

2013

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

218

UNAUDITED SCHEDULE 15

FUNCTION 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

GENERAL GOVERNMENT 309 314 315 325 308 355 355 325 321 347

PUBLIC SAFETY 649 649 669 701 706 745 773 809 808 806

PHYSICAL ENVIRONMENT 144 146 151 164 155 145 147 156 167 173

TRANSPORTATION 156 166 167 162 138 157 163 159 166 178

ECONOMIC ENVIRONMENT 14141415152226313032

HUMAN SERVICES 8888887999

CULTURE AND RECREATION 42 47 53 54 44 59 60 66 60 62

COURT-RELATED ACTIVITIES 86 85 89 78 76 74 70 64 76 72

TOTAL 1,408 1,429 1,465 1,507 1,450 1,565 1,601 1,619 1,637 1,679

SOURCE: BUDGET OFFICE

FULL-TIME EQUIVALENT EMPLOYEES AS OF OCTOBER 1

FULL-TIME EQUIVALENT GOVERNMENT EMPLOYEES BY FUNCTION - LAST TEN YEARS

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

219

General Government, 347,

20.67%

Public Safety, 806, 48.00%

Physical Environment,

173, 10.30%

Transportation, 178,

10.60%

Economic

Environment, 32,

1.91%

Human Services, 9,

0.54%

Culture and

Recreation, 62, 3.69%

Court-Related Activi ties,

72, 4.29%

FTE by Function

Fiscal Year 2022

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

220

UNAUDITED SCHEDULE 16

FUNCTION/PROGRAM 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

TRANSIT

TOTAL ROUTE MILES 215 215 215 220 220 220 220 220 227 229

PASSENGERS 182,584 161,878 139,389 137,644 123,473 119,761 119,658 64,385 53,071 61,913

LIBRARY

CIRCULATION 696,234 736,264 739,882 762,052 764,595 768,370 787,847 601,970 662,561 739,488

REGISTERED BORROWERS 70,908 70,739 71,322 72,555 73,401 73,883 72,711 63,491 29,430 35,269

PUBLIC WORKS

ASPHALT OVERLAY (SQUARE YARDS) 42,280 61,219 57,523 78,044 90,624 218,500 218,496 153,915 231,673 213,389

BRIDGES REPAIRED/REPLACED 1 - 1151105411

WATER

NEW CONNECTIONS 140 119 169 189 179 182 190 338 280 212

WATER MAINS REPAIRED 631243236282434567732

ANNUAL WATER UNITS BILLED 444,340 451,427 456,066 423,601 469,014 476,239 480,260 484,811 489,272 487,213

SEWE

R

ANNUAL SEWER UNITS BILLED 414,612 414,188 418,921 424,767 432,917 438,480 443,196 447,838 450,564 454,850

AIRPORTS

ENPLANEMENTS 374,431 373,143 385,109 436,410 566,212 680,151 820,940 523,624 908,631 1,020,252

DEPLANEMENTS 379,194 372,268 385,936 437,957 567,997 681,597 826,290 525,456 909,042 1,010,233

GROWTH MANAGEMENT

DEVELOPMENT PERMITS ISSUED 908 837 965 998 1,105 1,053 1,158 1,196 1,409 1,378

HOME OCCUPATIONS 463 440 456 521 515 476 447 349 269 83

REFUSE COLLECTION

TRANSFER STATION TONNAGE 125,755 118,022 117,689 132,475 142,104 150,105 147,917 155,517 179,983 175,834

RECYCLING TONNAGE 6,196 7,278 8,700 8,922 9,391 12,567 13,681 14,353 15,252 14,232

PUBLIC SAFETY

EMERGENCY CALLS (EMS) 23,986 25,105 25,973 27,139 29,127 31,101 32,301 30,659 33,857 33,566

SYSTEM CALLS (9-1-1) 131,147 103,320 101,451 188,631 130,395 209,675 393,408 100,812 138,099 114,612

SOURCE: COUNTY ADMINISTRATOR'S OFFICE

OPERATING INDICATORS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS

OKALOOSA COUNTY, FLORIDA

STATISITICAL SECTION

SEPTEMBER 30, 2022

221

UNAUDITED SCHEDULE 17

FUNCTION/PROGRAM 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

PARKS AND RECREATION

COUNTY PARKS 18191919191818181818

UNINCORPORATED PARKS 33353536373839394040

TRANSIT

BUSES/PASSENGER VAN 17 11 11 11 13 14 14 17 17 17

LIBRARY

COLLECTION 310,302 309,368 320,095 316,684 327,913 331,790 330,790 325,474 307,744 270,970

PUBLIC WORKS

PAVED ROADS MAINTAINED (MILES) 670 674 670 678 682 682 705 713 805 809

DIRT ROADS MAINTAINED (MILES) 199 198 199 196 196 185 171 171 200 96

COLD MIX ROADS MAINTAINED (MILES) 72707471676053453228

TRAFFIC SIGNALS 13131310101111121212

WATER

WATER MAINS (MILES) 726 741 466 513 486 493 501 518 518 520

FIRE HYDRANTS 5,546 5,777 3,980 4,138 3,332 3,232 2,930 2,463 2,496 2,504

ANNUAL AVERAGE DAILY WITHDRAWAL CAPACITY 17,200 17,200 17,200 10,620 10,620 10,620 10,620 10,620 10,620 10,620

(THOUSANDS OF GALLONS)

SEWER

SANITARY SEWERS (MILES) 561 593 448 521 499 479 473 483 445 448

ANNUAL AVERAGE DAILY FLOW CAPACITY 13,206 13,206 11,980 11,980 11,980 16,980 16,980 16,980 16,980 16,980

(THOUSANDS OF GALLONS)

SOURCE: COUNTY ADMINISTRATOR'S OFFICE

CAPITAL INDICATORS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS

(THIS PAGE INTENTIONALLY LEFT BLANK)

IV. COMPLIANCE SECTION

222

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 GOVERNMENTAL AUDITING STANDARDS

To the Honorable Chairman and Members of the

Board of County Commissioners and Other Elected Officials

Okaloosa County, Florida

We have audited, in accordance with the 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

(hereinafter referred to as “financial statements”) of the governmental activities, the business-type

activities, each major fund, and the aggregate remaining fund information of Okaloosa County,

Florida (the County) as of and for the year ended September 30, 2022, which collectively comprise

the County’s basic financial statements and have issued our report thereon dated March 29, 2023.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the County’s

internal control over financial reporting (internal control) as a basis for designing 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

County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the

County’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 a

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 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 consideration of internal control was for the limited purpose described in the first paragraph of

this section and was not designed to identify all deficiencies in internal control that might be material

weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify

any deficiencies in internal control that we consider to be material weaknesses. However, material

weaknesses may exist that have not been identified.

223

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the County’s financial statements are free

of material misstatement, we performed tests of compliance with certain provisions of laws,

regulations, contracts, and grant agreements, noncompliance with which could have a direct and

material effect on the financial statements. However, providing an opinion on compliance with those

provisions was not an objective of our audit, and accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance or other matters that are required

to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal controls and

compliance and the results of that testing, and not to provide an opinion on the effectiveness of the

entity’s internal control or on compliance. This report is an integral part of an audit performed in

accordance with Government Auditing Standards in considering the entity’s internal and

compliance. Accordingly, this communication is not suitable for any other purpose.

Fort Walton Beach, Florida

March 29, 2023

(THIS PAGE INTENTIONALLY LEFT BLANK)

224

INDEPENDENT ACCOUNTANTS’ REPORT ON EXAMINATION OF

COMPLIANCE REQUIREMENTS IN ACCORDANCE WITH CHAPTER 10.550,

RULES OF THE AUDITOR GENERAL

Honorable Chairman and the Members of the

Board of County Commissioners and Other Elected Officials

Okaloosa County, Florida

We have examined Okaloosa County, Florida’s (hereinafter referred to as the “County”) compliance

with the following requirements for the year ended September 30, 2022:

(1) Florida Statute 218.415 in regards to investments

(2) Florida Statutes 28.35 and 28.36 in regards to certain court-related functions

(3) Florida Statutes 61.181 in regards to operation of a depository for alimony and child support

(4) Florida Statute 288.8018 in regards to the Deepwater Horizon Oil spill receipts and

expenditures

(5) Florida Statute 365.172 and 365.173 in regards to the E911 revenues and expenditures

Management is responsible for the County’s compliance with the specified requirements. Our

responsibility is to express an opinion on the County’s compliance with the specified requirements

based on our examination.

Our examination was conducted in accordance with attestation standards established by the American

Institute of Certified Public Accountants. Those standards require that we plan and perform the

examination to obtain reasonable assurance about whether the County complied, in all material

respects, with the specified requirements referenced above. An examination involves performing

procedures to obtain evidence about whether the County complied with the specified requirements.

The nature, timing, and extent of the procedures selected depend on our judgment, including an

assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the

evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

We are required to be independent and to meet our other ethical responsibilities in accordance with

relevant ethical requirements relating to the examination engagement.

Our examination does not provide a legal determination on the Board’s compliance with specified

requirements.

In our opinion, Okaloosa County, Florida complied, in all material respects, with the aforementioned

requirements for the year ended September 30, 2022.

Fort Walton Beach, Florida

March 29, 2023

(THIS PAGE INTENTIONALLY LEFT BLANK)

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF RECEIPTS AND EXPENDITURES OF

FUNDS RELATED TO THE DEEPWATER HORIZONS OIL SPILL

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

225

Received Expended

in Fiscal in Fiscal

Source Year 2022 Year 2022

U.S. Department of Treasury

Resources and Ecosystems Sustainability, Tourist Opportunities, and

Revived Economies of the Gulf Coast States (RDCGR 180120-01-01) -$ 451,062$

Resources and Ecosystems Sustainability, Tourist Opportunities, and

Revived Economies of the Gulf Coast States (RDCGR 180149-01-00) 25,933 123,475

Total U.S. Department of Treasury 25,933 574,537

Gulf Coast Ecosystem Restoration Council

Passed Through Gulf Consortium, Inc.

RESTORE Council Oil Spill Impact Program (200090033) 151,900 154,121

Total Gulf Consortium, Inc. 151,900 154,121

Triumph Gulf Coast, Inc.

Okaloosa County - Crestview Bypass / Project #46 - 12,535,978

Total Triumph Gulf Coast, Inc. - 12,535,978

TOTAL

177,833$ 13,264,636$

Notes:

The U.S. Department of Treasury funds relate to the Deepwater Horizon Oil Spill and are

considered Federal awards, which are reported on the Schedule of Expenditures of Federal Awards

and State Financial Assistance under Assistance Listing Number 21.015. This was not tested as a

major program in fiscal year 2022.

The Gulf Coast Ecosystem Restoration Council funds relate to the Deepwater Horizons Oil Spill and

are considered Federal awards, which are reported on the Schedule of Expenditures of Federal

Awards and State Financial Assistance under Assistance Listing Number 87.052. This was not

tested as a major program in fiscal year 2022.

The schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill is

prepared on the cash basis of accounting.

226

MANAGEMENT LETTER

To the Honorable Chairman and Members of the

Board of County Commissioners and Other Elected Officials

Okaloosa County, Florida

Report on the Financial Statements

We have audited the financial statements of Okaloosa County, Florida (hereinafter referred to as

“County”) as of and for the fiscal year ended September 30, 2022, and the related notes to the

financial statements, and have issued our report thereon dated March 29, 2023.

Auditors’ Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United

States of America; the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2

U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,

and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the

Florida Auditor General.

Other Reports and Schedules

We have issued:

 Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance

and Other Matters Based on an Audit of the Financial Statements Performed in Accordance

with Government Auditing Standards;

 Independent Auditors’ Report on Compliance for Each Major Federal Program and State

Project and Report on Internal Control over Compliance and Compliance with Requirements

Applicable to the Passenger Facility Charge Program;

 Schedule of Findings and Questioned Costs;

 Independent Accountants’ Report on Examination of Compliance Requirements in

Accordance with Chapter 10.550, Rules of the Florida Auditor General;

Disclosures in those reports which are dated March 29, 2023, should be considered in conjunction

with this management letter.

Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not

corrective actions have been taken to address findings and recommendations made in the

preceding annual financial audit report. There were no findings or recommendations in the

preceding annual report.

227

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal

authority for the primary government and each component unit of the reporting entity be disclosed

in this management letter, unless disclosed in the notes to the financial statements. Okaloosa

County, Florida is a political subdivision of the State of Florida organized under Title VIII, Section

1(e) of the Florida constitution. The primary government includes the Board of County

Commissioners, the Clerk of the Circuit Court and Comptroller, the Sheriff, the Tax Collector, the

Property Appraiser, and the Supervisor of Elections. As of September 30, 2022, Okaloosa County

had no component units, as defined by GASB 61, with a significant operational or financial

relationship with the County.

Financial Condition and Management

Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply

appropriate procedures and communicate the results of our determination as to whether or not

Okaloosa County, Florida has met one or more of the conditions described in Section 218.503(1),

Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we

determined that Okaloosa County, Florida did not meet any of the conditions described in Section

218.503(1), Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied

financial condition assessment procedures for Okaloosa County, Florida. It is management’s

responsibility to monitor Okaloosa County, Florida’s financial condition, and our financial condition

assessment was based in part on representations made by management and the review of

financial information provided by same.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management

letter any recommendations to improve financial management. In connection with our audit, we did

not have any such recommendations.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance

with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have

occurred, that have an effect on the financial statements that is less than material but which

warrants the attention of those charged with governance. In connection with our audit, we did not

have any such findings.

Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing

Committee, members of the Florida Senate and the Florida House of Representatives, the Florida

Auditor General, Federal and other granting agencies, and applicable management, and is not

intended to be and should not be used by anyone other than these specified parties.

We greatly appreciate the assistance and cooperation extended us during our audit.

Fort Walton Beach, Florida

March 29, 2023

228

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL

PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE

REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR

GENERAL AND COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE

PASSENGER FACILITY CHARGE PROGRAM

To the Honorable Chairman and Members of the

Board of County Commissioners and Other Elected Officials

Okaloosa County, Florida

Report on Compliance for Each Major Federal Program, State Project and Passenger Facility

Charge Program

We have audited the compliance of Okaloosa County, Florida (hereinafter referred to as “County”),

with the types of compliance requirements described in the U.S. Office of Management and Budget

(OMB) Compliance Supplement; the requirements described in the Florida Department of Financial

Services’ State Projects Compliance Supplement and the compliance requirements described in the

Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation

Administration, that could have a direct and material effect on each of the County’s major federal

programs, state projects and passenger facility charge program for the year ended September 30,

2022. The County’s major federal programs and state projects are identified in the summary of

auditor results section of the accompanying schedule of findings and questioned costs.

In our opinion, the County complied, in all material respects, with the requirements referred to

above that could have a direct and material effect on each of its major federal programs, state

projects and passenger facility charge program for the fiscal year ended September 30, 2022.

Basis for Opinion on Each Major Federal Program, State Project and Passenger Facility

Charge Program

We conducted our audit of compliance in accordance with auditing standards generally accepted in

the United States of America; the standards applicable to financial audits contained in Government

Auditing Standards, issued by the Comptroller General of the United States; the audit requirements

of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost

Principles, and Audit Requirements for Federal Awards (Uniform Guidance); Chapter 10.550, Rules

of the Auditor General, and the Federal Aviation Administration. Our responsibilities under those

standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the

Audit of Compliance section of our report.

We are required to be independent of the County and to meet our other ethical responsibilities, in

accordance with relevant ethical requirements relating to our audit. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on

compliance for each major federal program. Our audit does not provide a legal determination of the

County’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with federal and state statutes, regulations, and the

terms and conditions of its federal and state awards applicable to it its federal programs, state

projects and passenger facility charge program.

229

Auditors’ Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the

compliance requirements referred to above occurred, whether due to fraud or error, and express an

opinion on the County’s compliance based on our audit. Reasonable assurance is a high level of

assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in

accordance with generally accepted auditing standards, Government Auditing Standards, and the

Uniform Guidance, Chapter 10.550, Rules of the Auditor General, and the Federal Aviation

Administration will always detect material noncompliance when it exists. The risk of not detecting

material noncompliance resulting from fraud is higher than for that resulting from error, as fraud

may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control. Noncompliance with the compliance requirements referred to above is considered material

if there is a substantial likelihood that, individually or in the aggregate, it would influence the

judgment made by a reasonable user of the report on compliance about the County’s compliance

with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government

Auditing Standards, and the Uniform Guidance, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material noncompliance, whether due to fraud or error, and

design and perform audit procedures responsive to those risks. Such procedures include

examining, on a test basis, evidence regarding the County’s compliance with the compliance

requirements referred to above and performing such other procedures as we considered

necessary in the circumstances.

 Obtain an understanding of the County’s internal control over compliance relevant to the

audit in order to design audit procedures that are appropriate in the circumstances and to

test and report on internal control over compliance in accordance with the Uniform

Guidance, but not for the purpose of expressing an opinion on the effectiveness of the

County’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other

matters, the planned scope and timing of the audit and any significant deficiencies and material

weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control

over compliance does not allow management or employees, in the normal course of performing

their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance

requirement of a federal program, state project or the passenger facility charge program on a timely

basis. A material weakness in internal control over compliance is a deficiency, or combination of

deficiencies, in internal control over compliance, such that there is a reasonable possibility that

material noncompliance with a type of compliance requirement of a federal program, state project or

the passenger facility charge program will not be prevented, or detected and corrected, on a timely

basis. A significant deficiency in internal control over compliance is a deficiency, or a combination

of deficiencies, in internal control over compliance with a type of compliance requirement for a

federal program, state project or the passenger facility charge program that is less severe than a

material weakness in internal control over compliance, yet important enough to merit attention by

those charged with governance.

(THIS PAGE INTENTIONALLY LEFT BLANK)

230

Our consideration of internal control over compliance was for the limited purpose described in the

Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to

identify all deficiencies in internal control over compliance that might be material weaknesses or

significant deficiencies in internal control over compliance. Given these limitations, during our audit

we did not identify any deficiencies in internal control over compliance that we consider to be

material weaknesses, as defined above.

However, material weaknesses or significant deficiencies

in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal

control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our

testing of internal control over compliance and the results of that testing based on the requirements

of the Uniform Guidance, Chapter 10.550 Rules of the Auditor General, and the Passenger Facility

Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration.

Accordingly, this report is not suitable for any other purpose.

Fort Walton Beach, Florida

March 29, 2023

OKALOOSA COUNTY, FLORIDA

AIRPORTS ENTERPRISE FUND

SCHEDULE OF EXPENDITURES OF PASSENGER FACILITY CHARGES

FISCAL YEAR ENDED SEPTEMBER 30, 2022

231

Cumulative Cumulative

Amount Total - Quarter Ended Year Ended Total -

Date Approved September 30, December 31, March 31, June 30, September 30, September 30, September 30,

Approved For Use 2021 2021 2022 2022 2022 2022 2022

Revenues

Passenger facility charge revenues

received 36,456,548$ 671,308$ 1,242,945$ 1,205,396$ 713,566$ 3,833,215$ 40,289,763$

Interest earned 2,460,052 2,968 (701) 9,699 28,168 40,134 2,500,186

Total passenger facility charge

revenue received 38,916,600$ 674,276$ 1,242,244$ 1,215,095$ 741,734$ 3,873,349$ 42,789,949$

Expenditures

Application 00-01-C-01-VPS October 2000 16,080,970$ 11,156,795$ 541,884$ 60,126$ -$ -$ 602,010$ 11,758,805$

Application 03-02-C-00-VPS July 2003 1,349,009 939,471 46,417 5,150 - - 51,567 991,038

Application 07-03-C-01-VPS October 2007 758,782 758,782 - - - - - 758,782

Application 08-04-C-00-VPS June 2008 110,083 110,083 - - - - - 110,083

Application 10-05-C-01-VPS August 2010 1,396,924 1,396,924 - - - - - 1,396,924

Application 15-06-C-00-VPS July 2015 5,398,994 5,398,994 - - - - - 5,398,994

Application 19-07-C-00-VPS August 2019 19,116,456 8,756,299 2,233,565 1,459,758 89,407 2,991,294 6,774,024 15,530,323

Application 22-08-C-00-VPS August 2022 7,567,262 - -

- - 103,165 103,165 103,165

Total passenger facility charge

revenue expended 51,778,480$ 28,517,348$ 2,821,866$ 1,525,034$ 89,407$ 3,094,459$ 7,530,766$ 36,048,114$

232

OKALOOSA COUNTY, FLORIDA

NOTES TO THE SCHEDULE OF EXPENDITURES

OF PASSENGER FACILITY CHARGES

NOTE l – BASIS OF PRESENTATION

The accompanying Schedule of Passenger Facility Charges Collected and Expended includes

all the PFCs and the interest earnings thereon collected by the County from January 1, 2001

(original date of approval) through September 30, 2022. The County currently collects $3.00 per

enplaned passenger. The current approval for charges as approved by the Federal Aviation

Administration is estimated to end on September 1, 2025.

NOTE 2 – BASIS OF ACCOUNTING

The Schedule of Expenditures of Passenger Facility Charges was prepared on the accrual basis

of accounting. Passenger Facility Charges are recorded as revenue when earned and

expenditures for debt service and approved capital projects are recorded as expenditures are

made. Expenditures are made under an approved FAA application for use.

NOTE 3 – PROGRAM COSTS

The amounts shown as current year revenues and expenses represent only the Passenger

Facility Charges portions of the project costs. Entire project costs may be more than shown.

Federal / State Agency Assistance Passed

Pass-through Entity Listing Contract or Through to

Federal Program/State Project Number Grant Number Expenditures Subrecipients

FEDERAL AWARDS

U.S. Department of Agriculture

Passed Through Florida Department of Agriculture & Consumer Services

Child Nutrition Cluster

School Breakfast Program 10.553 01-0303 54,318$ -$

National School Lunch Program 10.555 01-0303 105,275 -

Total Child Nutrition Cluster 159,593 -

Passed Through Florida Department of Financial Services

Forest Service Schools and Roads Cluster

Schools and Roads - Grants to States 10.665 N/A 11,783 -

Total U.S. Department of Agriculture 171,376 -

U.S. Department of Commerce

National Oceanic and Atmospheric Administration

Passed Through National Fish and Wildlife Foundation

Office for Coastal Management

11.473 0318.19.066930 53,147 -

U.S. Department of Housing and Urban Development

Passed Through Florida Department of Economic Opportunity

Community Development Block Grants 14.228 10DB-4X-01-56-01-F18 638,298 -

Community Development Block Grants 14.228 10DB-4X-01-56-01-F18 26,984 -

Total U.S. Department of Housing and Urban Development 665,282 -

U.S. Department of the Interior

Direct Program

Payments in Lieu of Taxes

15.226 N/A 11,460 -

Total U.S. Department of the Interior 11,460 -

U.S. Department of Justice

Direct Programs

Justice Systems Response to Families

16.021 2016-FJ-AX-0016 167,184 165,527

State Criminal Alien Assistance Program 16.606 15PBJA-20RR-00563-CSAA 22,743

-

Passed Through Florida Department of Law Enforcement

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2018-DJ-BX-0670

3,958

-

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2019-DJ-BX-0806

7,895

-

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2020-DJ-BX-0768

19,450

-

Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-21-GG-01370-JAGX

39,593

-

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2020-JAGC-OKAL-5-5R-016

10,640

-

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2021-JAGC-OKAL-4-3B-062

11,901

-

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2021-JAGC-OKAL-3-3B-125

21,819

-

115,256

-

Total U.S. Department of Justice 305,183 165,527

U.S. Department of Transportation

Direct Programs

Federal Aviation Administration

COVID-19 - Airport Improvement Program 20.106 3-12-0081-032-2020

271,103

-

Airport Improvement Program 20.106 3-12-0081-031-2020

803,555

-

COVID-19 - Airport Improvement Program 20.106 3-12-0020-021-2021

9,670

-

COVID-19 - Airport Improvement Program 20.106 3-12-0081-035-2021

174,252

-

COVID-19 - Airport Improvement Program 20.106 3-12-0081-037-2022

697,008

-

1,955,588 -

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

FISCAL YEAR ENDED SEPTEMBER 30, 2022

The accompanying notes are an intregal part of this schedule

233

Federal / State Agency Assistance Passed

Pass-through Entity Listing Contract or Through to

Federal Program/State Project Number Grant Number Expenditures Subrecipients

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

FISCAL YEAR ENDED SEPTEMBER 30, 2022

Federal Transit Cluster

Direct Programs

Federal Transit Administration

Federal Transit Formula Grants 20.507 FL-90-X716-00

1,942$

$ -

Federal Transit Formula Grants 20.507 FL-90-X867-00

67,425

-

Federal Transit Formula Grants 20.507 FL-90-X761-00

168,539

-

Federal Transit Formula Grants 20.507 FL-90-X795-00

202,830

-

Federal Transit Formula Grants 20.507 FL-90-X815-00

18,279

-

Federal Transit Formula Grants 20.507 FL-2017-064-00

12,006

-

Federal Transit Formula Grants 20.507 FL-2018-093-00

6,666

-

Federal Transit Formula Grants 20.507 FL-2019-017-00

1,237

-

Federal Transit Formula Grants 20.507 FL-2019-021-00

351,922

-

Federal Transit Formula Grants 20.507 FL-2020-058-00

415,040

-

COVID-19 - Federal Transit Formula Grants 20.507 FL-2020-073-00

113,813

-

COVID-19 - Federal Transit Formula Grants 20.507 FL-2022-010-00

590,750

-

Federal Transit Formula Grants 20.507 FL-2022-019-00

2,667

-

Passed Through Florida Department of Transportation

Buses and Bus Facilities Formula, Competitive, and Low or No

Emissions Programs

20.526

439255-3-94-17

195,222 -

Total Federal Transit Cluster 2,148,338 -

Highway Planning and Construction Cluster

Highway Planning and Construction 20.205 G1892 , 421997-8-A8-01

530,111 -

Total Highway Planning and Construction Cluster 530,111 -

COVID-19 - Formula Grants for Rural Areas

20.509

G1M18; 44749918401

411,520 -

Passed Through Florida Department of Management Services

E-911 Grant Program

20.615

S18-21-05-10

348,309 -

E-911 Grant Program

20.615

S18-21-05-11

102,336 -

450,645 -

Total U.S. Department of Transportation 5,496,202 -

U.S. Department of Treasury

Direct Programs

Resources and Ecosystems Sustainability, Tourist Opportunities, and

Revived Economies of the Gulf Coast States 21.015 RDCGR180120-01-01 450,962 450,962

Resources and Ecosystems Sustainability, Tourist Opportunities, and

Revived Economies of the Gulf Coast States 21.015 RDCGR180149-01-00 123,475 123,475

574,437 574,437

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 SLT-0786 2,015,136 -

Passed Through Florida Housing Finance Corporation

COVID-19 - Coronavirus Relief Fund 21.019 080-2020 5,594 -

Total U.S. Department of Treasury 2,595,167 574,437

National Endowment for the Humanities

Passed Through Florida Department of State

COVID-19 - Grants to States 45.310 21-ARPA-29 50,000 -

Consumer Product Safety Commission

Passed Through Gulf Consortium, Inc

Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program

87.052 200090033 158,808 -

Total Consumer Product Safety Commission 158,808 -

Election Assistance Commission

Passed Through Florida Department of State

HAVA Election Security Grants 90.404 21.e.es.000.059 3,990 -

Total Election Assistance Commission 3,990 -

The accompanying notes are an intregal part of this schedule

234

Federal / State Agency Assistance Passed

Pass-through Entity Listing Contract or Through to

Federal Program/State Project Number Grant Number Expenditures Subrecipients

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

FISCAL YEAR ENDED SEPTEMBER 30, 2022

U.S. Department of Health & Human Services

Passed Through Florida Department of Revenue

Child Support Enforcement

93.563 N/A 3,060$ -$

Child Support Enforcement

93.563 COC46 279,656 -

Total U.S. Department of Health and Human Services 282,716 -

U.S. Department of Homeland Security

Direct Programs

Law Enforcement Officer Reimbursement Program 97.U01 70T02021T6114N272 138,660 -

Passed Through Florida Division of Emergency Management

Disaster Grants - Public Assistance (Presidentially Declared Disaster

s

97.036 DR-4564 FL 276,109 -

Disaster Grants - Public Assistance (Presidentially Declared Disaster

s

97.036 DR-4564 FL (270,280) -

Disaster Grants - Public Assistance (Presidentially Declared Disaster

s

97.036 Z2645 35,601 -

41,430 -

Hazard Mitigation Grant 97.039 18HM-H4-01-56-01-388; 4177-

06-A

52,352 -

Emergency Management Performance Grants 97.042 G0224 87,298 -

Emergency Management Performance Grants 97.042 G0214 13,926 -

101,224 -

Homeland Security Grant Program 97.067 R0430 38,626 -

Homeland Security Grant Program 97.067 R0037 316,968 -

355,594 -

Total U.S. Department of Homeland Security 689,260 -

TOTAL FEDERAL AWARDS 10,482,591$ 739,964$

STATE FINANCIAL ASSISTANCE

Executive Office of the Governor

Direct Projects

Florida Division of Emergency Management

Emergency Management Programs

31.063 A0261 23,338$ -$

Emergency Management Programs

31.063 A0168 79,051 -

102,389 -

Emergency Management Projects

31.067 T0094 262 -

Emergency Management Projects

31.067 T0159 9,576 -

9,838 -

Total Executive Office of the Governor 112,227 -

Florida Department of Environmental Protection

Direct Projects

Cooperative Collection Center Grant

37.007 HW305 35,525 -

Cooperative Collection Center Grant

37.007 HW205 181,579 -

217,104 -

Statewide Surface Water Restoration and Wastewater Projects

37.039 LP46043 30,886 -

Statewide Surface Water Restoration and Wastewater Projects

37.039 LP46041 110,817 -

141,703 -

Alternative Water Supply

37.100 20-023 232,451 -

Total Florida Department of Environmental Protection 591,258 -

The accompanying notes are an intregal part of this schedule

235

Federal / State Agency Assistance Passed

Pass-through Entity Listing Contract or Through to

Federal Program/State Project Number Grant Number Expenditures Subrecipients

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

FISCAL YEAR ENDED SEPTEMBER 30, 2022

Florida Housing Finance Corporation

Direct Projects

State Housing Initiative Partnership (SHIP)

40.901 2018/2019 115,390$ -$

State Housing Initiative Partnership (SHIP)

40.901 2019/2020 152,924 -

State Housing Initiative Partnership (SHIP)

40.901 2020/2021 580 -

State Housing Initiative Partnership (SHIP)

40.901 2021/2022 792 -

State Housing Initiative Partnership (SHIP)

40.901 2022/2023 51 -

Total Florida Housing Finance Corporation 269,737 -

Florida Department of Agriculture and Consumer Services

Direct Projects

Mosquito Control - FY 21 42.003 027454 34,966 -

Agriculture Education and Promotional Facility 42.047 27944 35,600 -

Total Florida Department of Agriculture and Consumer Services 70,566 -

Florida Department of State

Direct Projects

State Aid to Libraries 45.030 18-ST-45 11,984 -

State Aid to Libraries 45.030 19-ST-45 51,498 -

Total Florida Department of State 63,482 -

Florida Department of Transportation

Direct Projects

Computerized Traffic Signal System

55.U01

ASI26; 409797-3-88-01

218,163 -

Traffic Management Control Project

55.U02

ARW77; 22023948801

57,097 -

Landscaping of SR20 from Lancaster Drive to Bay Drive 55.U03

ASB65, 44382215801

59,865 -

Commission for the Transportation Disadvantaged Trip and Equipment

Grant Program 55.001

G1Y01

400,758 -

Commission for the Transportation Disadvantaged Trip and Equipment

Grant Program 55.001

G2A32

148,791 -

549,549 -

Aviation Development Grant

55.004

G1798; 42230389401

336,741 -

Aviation Development Grant

55.004

G1H42; 42561659401

155,377 -

Aviation Development Grant

55.004

G1K02; 42561549401

24,480 -

Aviation Development Grant

55.004

G1J22; 42230349401

483,520 -

Aviation Development Grant

55.004

G1Z31; 42561479401

51,662 -

Aviation Development Grant

55.004 G1800; 42561449401 1,032,268 -

2,084,048 -

Public Transit Block Grant Program

55.010 G2398; 42225318404 218,187

Transit Corridor Program

55.013 G2394; 42225618404 225,000 -

Transportation Regional Incentive Program (TRIP)

55.026

G1H69; 43818912401

94,745 -

Total Florida Department of Transportation 3,506,654 -

Florida Department of Education

Direct Projects

Okaloosa County Sheriff's Office Guardian 48.140 97J-90210-2D001 25,386 -

Total Florida Department of State 25,386 -

Florida Department of Children and Families

Direct Projects

Substance Abuse and Mental Health - Community Services 60.153 A0280 248,369 -

SAMH ME State Funded Federal Excluded Services 60.190 AH105 188,971 -

Total Florida Department of Children and Families 437,340 -

The accompanying notes are an intregal part of this schedule

236

Federal / State Agency Assistance Passed

Pass-through Entity Listing Contract or Through to

Federal Program/State Project Number Grant Number Expenditures Subrecipients

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

FISCAL YEAR ENDED SEPTEMBER 30, 2022

Florida Department of Health

Direct Projects

County Grant Awards 64.005 C0046 39,391$ -$

Total Florida Department of Health 39,391 -

Florida Department of Management Services

Direct Projects

Prepaid Next Generation 911 (NG911) State Grant Program 72.003 S21-22-05-02 218,735 -

Prepaid Next Generation 911 (NG911) State Grant Program 72.003 S18-21-05-50 58,550 -

Prepaid Next Generation 911 (NG911) State Grant Program 72.003 S18-21-05-51 51,168 -

Total Florida Department of Management Services 328,453 -

Fish and Wildlife Conservation Agency

Direct Projects

Derelict Vessel Removal Program 77.005 FWC 21184 15,000

Derelict Vessel Removal Program 77.005 FWC 21271 17,380 -

Total Fish and Wildlife Conservation Agency 32,380 -

TOTAL STATE FINANCIAL ASSISTANCE 5,476,874$ -$

TOTAL FEDERAL AND STATE FINANCIAL ASSISTANCE 15,959,465$ 739,964$

The accompanying notes are an intregal part of this schedule

237

OKALOOSA COUNTY, FLORIDA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

AND STATE FINANCIAL ASSISTANCE

FISCAL YEAR ENDED SEPTEMBER 30, 2022

238

NOTE 1. BASIS OF PRESENTATION

The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance

(the Schedule) presents the activity of all federal funded programs and state funded projects of

Okaloosa County, Florida for the year ended September 30, 2022. All federal awards received

directly from federal agencies as well as federal awards passed through other government agencies

are included on the schedule. Funds received and expended as state financial assistance reported

on the schedule include only those state funds provided from state resources to carry out state

projects. The information in this Schedule is presented in accordance with the requirements of Title

2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost

Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550,

Rules of the Auditor General. Because the Schedule presents only a selected portion of the

operations of Okaloosa County, Florida, it is not intended to, and does not, present the financial

position, changes in net position, or cash flows of Okaloosa County, Florida.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance is

presented using the modified accrual basis of accounting for all governmental fund grants and the

accrual basis of accounting for all proprietary fund grants. The basis of accounting is described in

Note 1 C to the County’s financial statements. Such expenditures are recognized following the cost

principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain type of

expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the

schedule represent adjustments or credits made in the normal course of business to amounts

reported as expenditures in prior years.

NOTE 3. INDIRECT COST RATE

Okaloosa County, Florida has elected not to use the 10 percent de minimis indirect cost rate

allowed under the Uniform Guidance.

BCC - NOTE 4. EXPENDITURES INCURRED IN THE PRIOR FISCAL YEAR

A total of $270,280 were incurred in a prior fiscal year and obligated by FEMA in the current fiscal

year. These funds were expended under contract DR-4564 FL of the assistance listing number

97.036.

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

239

1. SUMMARY OF AUDITOR RESULTS

Financial Statements

Type of auditors’ report issued: Unmodified Opinion

Internal control over financial reporting:

 Material weakness identified?

Yes X No

 Significant deficiencies identified that are not

considered to be material weakness?

Yes

X

None

reported

Non-compliance material to financial statements

noted?

Yes

X

No

Federal Awards and State Projects

Internal control over major programs/projects:

 Material weakness identified?

Yes X No

 Significant deficiency identified that is/ not

considered to be material weakness?

Yes

X

None

reported

Type of auditor’s report issues on compliance for

major programs/projects:

Unmodified Opinion

 Any audit findings disclosed that are required to

be reported in accordance with the Uniform

Guidance and Chapter 10.550, Rules of the

Auditor General?

Yes

X

No

Identification of Major Programs/Projects:

Federal:

Assistance

Listing

Numbe

r

Name of Federal Program or Cluste

r

20.507|20.526

20.106

21.027

Federal Transit Cluster

Airport Improvement Program

Coronavirus State and Local Fiscal

Recovery Funds

OKALOOSA COUNTY, FLORIDA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS – CONTINUED

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

240

1. SUMMARY OF AUDITOR RESULTS (CONTINUED)

Federal Awards and State Projects (continued)

Identification of Major Programs/Projects (continued):

State:

CSFA #

Name of State Project

37.100

55.001

Alternative Water Supply

Florida Commission for the

Transportation Disadvantaged (CTD)

Trip and Equipment Grant Program

55.004

A

viation Development Grant

Dollar threshold used to distinguish between Type A

and B programs for Federal Awards:

$750,000

Dollar threshold used to distinguish between Type A

and B projects for State Projects:

$750,000

A

uditee qualified as low-risk auditee? X Yes No

2. FINANCIAL STATEMENT FINDINGS

There were no findings which were required to be reported in accordance with government

auditing standards generally accepted in the United States of America.

3. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL PROGRAMS

There were no findings which were required to be reported in accordance with the Uniform

Guidance.

4. FINDINGS AND QUESTIONED COSTS - MAJOR STATE FINANCIAL ASSISTANCE

There were no findings which were required to be reported in accordance with Chapter 10.550,

Rules of the Auditor General.