ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2022 THE CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2022  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 THIS PAGE INTENTIONALLY LEFT BLANK 2  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 TABLE OF CONTENTS Page Independent Auditor’s Report on Financial Statements…………………………………… 5-7 Management’s Discussion and Analysis……………………………………………………… 9-20 The Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position …………………………………………………………………… 22 Statement of Activities ……………………………………………………………………… 23 Governmental Funds Financial Statements: Balance Sheet …………………………………………………………………………… 25 Statement of Changes in Fund Balances……………………………………………………… 26 Reconciliation of Governmental Fund and Government-Wide Financial Statements……… 27-28 Proprietary Funds Financial Statements: Statement of Net Position……………………………………………………………………… 30 Statement of Changes in Net Position………………………………………………………… 31 Statement of Cash Flows……………………………………………………………………… 32 Discretely Presented Component Units Combining Financial Statements: Statement of Net Position……………………………………………………………………… 34 Statement of Changes in Net Position………………………………………………………… 35 Footnotes to the Basic Financial Statements ………………………………………………… 36-72 Required Supplementary Information: Budgetary Comparison Information Budgetary Comparison Schedule (Budgetary Basis) – General Fund………………………… 74 Footnotes to Budgetary Comparison Schedule………………………………………………… 75 Pension and OPEB Plan Information Schedules of Pension Information…………………………………………………………… 76-79 Schedule OPEB Information ………………………………………………………………… 80 3  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Supplementary Information: Combining Balance Sheet – General Fund Accounts…………………………………………… 82 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts ………………………………………………………………………………………… 83 Combining Balance Sheet - Non-Major Governmental Funds………………………………… 84-85 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non-Major Governmental Funds…………………………………………………………………………… 86-87 Combining Schedule of Net Position – Miami Special Utilities Authority - Enterprise Fund Accounts……………………………………………………………………………………………88 Combining Schedule of Revenues, Expenses and Changes in Net Position– Miami Special Utilities Authority – Enterprise Fund Accounts ………………………………………………………… 89 Combining Schedule of Cash Flows – Miami Special Utilities Authority – Enterprise Fund Accounts………………………………………………………………………………………… 90 Combining Statement of Net Position – Internal Service Funds……………………………….… 91 Combining Statement of Revenues, Expenses and Changes in Net Position– Internal Service Funds…………………………………………………………………………………………….. 92 Combining Statement of Cash Flows – Internal Service Funds………………………………… 93 Combining Statement of Cash Flows – Discretely Presented Component Units ……………… 94 Schedule of Expenditures of State Awards………………………………………………… 95 4  INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council of the City of Miami, Oklahoma Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City Miami, Oklahoma, (the “City”) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 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. We did not audit the financial statements of the Miami Industrial Development Authority (“MIDA”), which represent 10 percent, 9 percent, and 15 percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinions, insofar as it relates to the amounts included for MIDA, are based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City 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. Change in Accounting Principle As discussed in Note 5 to the financial statements, in 2022 the City adopted new accounting guidance, GASB No. 87 Leases. Also, in 2022 the City will not adopt guidance, GASB No. 92 paragraph 11, as it is not required. Our opinions are 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 City’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. Auditor’s 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 auditor’s 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 5 www.arledge.cpa accordance with generally accepted 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, 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 City’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 City’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. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and the pension plan and other post-employment benefits funding schedules, 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 and other auditors 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 City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic 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 by us and other auditors. In our opinion, based on our audit and the report of the other auditors, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 6 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2022, on our consideration of the City’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 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 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 City’s internal control over financial reporting and compliance. Edmond, Oklahoma December 15, 2022 7  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 THIS PAGE INTENTIONALLY LEFT BLANK 8  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 MANAGEMENT DISCUSSION AND ANALYSIS 9  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Our discussion and analysis of the City of Miami’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  For the fiscal year ended June 30, 2022, the City’s total net position increased by $6,858,155 or 16.3% from the prior year.  During the year, the City’s expenses for governmental activities were $12.8 million and were funded by program revenues of $2.1 million and further funded with taxes and other general revenues that totaled $10 million.  In the City’s business-type activities, such as utilities, program revenues exceeded expenses by $7.4 million.  At June 30, 2022, the General Fund reported an unassigned fund balance of $992,034.  For budgetary reporting purposes, the General Fund reported revenues under estimates of $690,389 or 6.7%, while expenditures were under the final appropriations by $1,061,317 or 9.9%.  The City implemented GASB Statement 87, Leases, during the fiscal year. Leased assets and related amounts were recorded in the City’s enterprise funds and MIPFA component unit fund. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements presented herein include all of the activities of the City of Miami (the “City”) and its component units using the integrated approach as prescribed by GASB Statements No. 14, 34, 39, and 61. Included in this report are governmental-wide statements for each of three categories of activities – governmental, business-type, and discretely presented component units. The government-wide financial statements present the complete financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business type activities separately and combined. These statements include all assets of the City (including infrastructure capital assets), and deferred outflows of resources, as well as all liabilities (including all long-term debt) and deferred inflows of resources. About the City The City of Miami is an incorporated municipality with a population of approximately 13,570 located in northeastern Oklahoma. The City operates under a council-manager form of government with a charter that provides for three branches of government.  Legislative – the governing body includes an elected five-member City Council and Mayor  Executive – the City Manager is the Chief Executive Officer and is appointed by the City Council  Judicial – the Municipal Judge is a practicing attorney appointed by the City Council The City’s Financial Reporting Entity This annual report includes all activities for which the City Council of the City of Miami is fiscally responsible. These activities are operated within several separate legal entities that are reported together to make up the City’s financial reporting entity. 10  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 The City’s financial reporting entity includes the City of Miami, two blended component units, and four active discretely presented component units. Primary Government: The City of Miami – incorporated municipality that operates the public safety, health and welfare, streets and highways, parks and recreation, and administrative activities as a home rule charter city Blended Component Units: Miami Special Utility Authority (MSUA) – public trust that operates the electric, water, wastewater, and solid waste/sanitation services of the City. Miami Development Authority (MDA) – public trust created to promote economic development in Miami. Discretely Presented Component Units (separate legal entities for which the City Council is fiscally responsible, but appoints a separate governing body): Miami Downtown Redevelopment Authority (MDRA) – public trust created to promote the redevelopment of the downtown area. The Authority does not issue separate financial statements. Miami Industrial and Public Facilities Authority (MIPFA) – public trust that promotes the use of facilities in the City of Miami area. The Authority does not issue separate financial statements. Miami Community Facilities Authority (MCFA) – public trust that promotes the development of commerce, housing, recreation, education and public facilities within the city. The Authority does not issue separate financial statements. Miami Industrial Development Authority (MIDA) – public trust that promotes industry in and around the City of Miami. The Authority issues separate financial statements, and can be obtained by contacting in the MIDA offices. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. The trust is currently inactive. Using This Annual Report This annual report is presented in a format that substantially meets the presentation requirements of the Governmental Accounting Standards Board (GASB) in accordance with generally accepted accounting principles. The presentation includes financial statements that communicate the City’s financial position and changes therein at two distinct levels: 11  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022  The City as a Whole (a government-wide presentation)  The City’s Funds (a presentation of the City’s major and aggregate non-major funds) The City’s various government-wide and fund financial statements are presented throughout this annual report and are accompanied by:  Management’s Discussion and Analysis – that provides useful analysis that facilitates a better understanding of the City’s financial condition and changes therein.  Footnotes - that elaborate on the City’s accounting principles used in the preparation of the financial statements and further explain financial statement elements.  Supplemental Information – that provide additional information about specified elements of the financial statements, such as budgetary comparison information, and capital assets and long- term debt information. Reporting the City as a Whole The Statement of Net Position and the Statement of Activities One of the most frequently asked questions about the City’s finances is, “Has the City’s overall financial condition improved, declined or remained steady over the past year?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows, liabilities and deferred inflows using the accrual basis of accounting. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. These two government-wide statements report the City’s net position and changes in them from the prior year. You can think of the City’s net position – the difference between assets, deferred outflows, liabilities, and deferred inflows – as one way to measure the City’s financial condition, or position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving, deteriorating, or remaining steady. However, you must consider other nonfinancial factors, such as changes in the City’s tax base, the condition of the City’s roads, and the quality of services to assess the overall health and performance of the City. As mentioned above, in the Statement of Net Position and the Statement of Activities, we divide the City into three kinds of activities:  Governmental activities -- Most of the City’s basic services are reported here, including the police, fire, general administration, streets, and parks. Sales taxes, franchise fees, fines, and state and federal grants finance most of these activities.  Business-type activities -- The City charges a fee to customers to help cover all or most of the cost of certain services it provides. The City’s water, wastewater, electric, airport, and sanitation activities are reported here.  Discretely-presented component units -- Accounts for various activities related to economic development, facility management, facility construction, and downtown development. 12  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Reporting the City’s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other money. Governmental funds -- Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic service it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation following each Governmental und financial statement. Proprietary funds - When the City charges customers for the services it provides – whether to outside customers or to other units of the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position, the Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Cash Flows. In fact, the City’s enterprise funds are essentially the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows. A FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Position As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $48,828,404 at the close of the most recent fiscal year. 13  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 TABLE 1 NET POSITION (In Thousands) Gove rnmental % Inc. Business-Type % Inc. % Inc. Activities (Dec.) Activities (Dec.) Total (Dec.) 2022 2021 2022 2021 2022 2021 Current assets $ 14,777 $ 11,474 29% $ 25,318 $ 20,299 25% $ 40,095 $ 31,773 26% Capital assets, net 26,054 27,498 -5% 30,367 29,068 4% 56,421 56,566 0% Total assets 40,831 38,972 5% 55,685 49,367 13% 96,516 88,339 9% Deferred outflows 2,320 2,738 -15% 753 998 -25% 3,073 3,736 -18% Current liabilities 3,107 2,847 9% 6,883 4,803 43% 9,990 7,650 31% Non-current liabilities 21,783 26,493 -18% 10,836 13,061 -17% 32,619 39,554 -18% Total liabilities 24,890 29,340 -15% 17,719 17,864 -1% 42,609 47,204 -10% Deferred inflows 5,877 1,849 218% 2,276 1,051 117% 8,153 2,900 181% Net position Net investment capital assets 17,144 18,279 -6% 19,375 17,616 10% 36,519 35,895 2% Restricted 3,404 2,943 16% 207 321 -36% 3,611 3,264 11% Unrestricted (deficit) (8,164) (10,701) 24% 16,861 13,513 25% 8,697 2,812 209% Total net position $ 12,384 $ 10,521 18% $ 36,443 $ 31,450 16% $ 48,827 $ 41,971 16% The largest portion of the City’s net position reflects its net investment capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that are still outstanding. For 2022, the net investment in capital assets amounted to $36,519,277. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A major portion of the City’s net position, $3,611,290 also represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is amounting to $8,697,837. Explanations of significant changes displayed in Table 1 are as follows: Governmental Activities: Current assets – increased $3.3 million (29%) due to an increase in cash and cash equivalent and net pension asset. Non-current liabilities – decreased $4.5 million (18%) due to a decrease in net pension liability. Deferred inflows – increased $4.0 million (218%) due to an increase in deferred amounts related to pensions. Business-Type Activities: Current assets – increased $5.0 million (25%) mainly due to an increase in cash and cash equivalents. 14  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Current liabilities – increased $2.1 million (43%) mainly due to an advance utility payment of $1.7 million from the tribe that has not yet been earned. Deferred inflows – increased $1.2 million (117%) mainly due to an increased in deferred amounts related to pensions. Changes in Net Position For the year ended June 30, 2022, net position of the primary government changed as follows: TABLE 2 CHANGES IN NET POSITION (In Thousands) Governmental % Inc. Business-Type % Inc. % Inc. Activities (Dec.) Activities (Dec.) Total (Dec.) 2022 2021 2022 2021 2022 2021 Revenues Charges for service $ 1,019 $ 920 11% $ 32,053 $ 28,057 14% $ 33,072 $ 28,977 14% Operating grants and contributions 1,046 1,962 -47% 57 422 -86% 1,103 2,384 -54% Capital grants and contributions 65 604 -89% 209 552 -62% 274 1,156 -76% Taxes 9,926 9,147 9% - - - 9,926 9,147 9% Investment income 11 12 -8% 9 12 -25% 20 24 -17% M iscellaneous 107 193 -45% 8 3 167% 115 196 -41% Total revenues 12,174 12,839 -5% 32,336 29,046 11% 44,510 41,885 6% Expenses General government 1,694 1,223 39% - - - 1,694 1,223 39% Public safety 5,413 6,539 -17% - - - 5,413 6,539 -17% Streets 3,055 3,556 -14% - - - 3,055 3,556 -14% Culture and recreation 1,593 1,284 24% - - - 1,593 1,284 24% Economic development 392 394 -1% - - - 392 394 -1% Interest on debt 617 941 -34% - - - 617 941 -34% Water - - - 2,453 2,877 -15% 2,453 2,877 -15% Wastewater - - - 1,406 1,680 -16% 1,406 1,680 -16% Sanitation - - - 1,697 2,195 -23% 1,697 2,195 -23% Electric - - - 18,939 13,185 44% 18,939 13,185 44% Airport - - - 393 492 -20% 393 492 -20% Total expenses 12,764 13,937 -8% 24,888 20,429 22% 37,652 34,366 10% Excess (deficiency) before transfers (590) (1,098) 46% 7,448 8,617 -14% 6,858 7,519 -9% Transfers 2,453 2,434 1% (2,453) (2,434) 1% - - - Change in net position $ 1,863 $ 1,336 39% $ 4,995 $ 6,183 -19% $ 6,858 $ 7,519 -9% Explanations of significant changes in Table 2 are as follows: Governmental Activities: Public safety- decrease $1.1 million (17%) due to a decrease in operational expenses. Streets – decrease of $0.5 million (14%) due to a decrease in street repairs and main street improvements in the current year. General government- increase $0.5 million (39%) due to an increase in operational expenses. 15  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Operating grants and contributions – Decrease of $0.9 million (47%) due to a decrease in general government and public safety grants. Capital grants and contributions – decrease of $0.5 million (89%) due to a decrease in culture and recreation and public safety grants. Business-Type Activities: Operating grants and contributions – decrease of $0.4 million (86%) due to a decrease in water and airport grants. Capital grants and contributions – decrease of $.3 million (62%) due to a decrease in water and airport grants. Electric expenses – increase of $5.8 million (44%) due to an increase in purchase energy expenses. Governmental Activities To aid in the understanding of the Statement of Activities some additional explanation is given. Of particular interest is the format that is significantly different than a typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are listed in the first column with revenues from that particular program reported to the right. The result is a Net (Expense)/Revenue. The reason for this kind of format is to highlight the relative financial burden of each of the functions on the City’s taxpayers. It also identifies how much each function draws from the general revenues or if it is self-financing through fees and grants or contributions. All other governmental revenues are reported as general. It is important to note all taxes are classified as general revenue even if restricted for a specific purpose. TABLE 3 Net Revenue (Expense) of Governmental Activities (In Thousands) Net Revenue Total Expense % Inc. (Expense) % Inc. of S ervices (Dec.) of S ervices (Dec.) 2022 2021 2022 2021 General government $ 1,693 $ 1,223 38% $ (1,209) $ (224) 440% Public safety 5,414 6,539 -17% (4,485) (5,299) -15% Streets 3,055 3,556 -14% (2,858) (3,294) -13% Culture, parks and recreation 1,593 1,284 24% (1,219) (518) 135% Economic development 392 394 -1% (247) (175) 41% Interest on long-term debt 617 941 -34% (617) (941) -34% Total $ 12,764 $ 13,937 -8% ($10,635) $ (10,451) 2% For the year ended June 30, 2022 total expenses for governmental activities amounted to approximately $12.8 million which was a decrease from the prior year of 8%. See Table 2 above for explanations of changes. 16  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Business-type Activities TABLE 4 Net Revenue (Expense) of Business-Type Activities (In Thousands) Net Revenue Total Expense % Inc. (Expense) % Inc. of S ervices Dec. of S ervices Dec. 2022 2021 2022 2021 Water $ 2,453 $ 2,877 -15% $ 1,335 $ 1,181 13% Wastewater 1,406 1,679 -16% 1,164 874 33% Sanitation 1,697 2,195 -23% 1,150 525 119% Electric 18,939 13,185 44% 3,782 5,909 -36% Airport 393 492 -20% - 113 -100% Total $ 24,888 $ 20,428 22% $ 7,431 $ 8,602 -14% The City’s business-type activities include utility services for water, electric, wastewater, sanitation and airport. In reviewing the business-type activities net (expense)/revenue, the following highlights should be noted:  Total business-type activities reported net revenues of $7,430,815 for the year ended June 30, 2022. A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2022 fiscal year, the governmental funds reported a combined fund balance of $9.2 million or an 18% increase of $1,410,757. The enterprise funds reported combined net position of $35.3 million or a 16.9% increase from 2021. Fund Balance/Net Position Governmental Funds Proprietary Funds Restricted $ 3,447,469 Net investment in capital assets $ 19,374,799 Committed 271,236 Restricted for debt service and other 207,449 Assigned 4,485,091 Unrestricted 15,685,695 Unassigned 992,034 Total Fund Balance $ 9,195,830 Total Net Position $ 35,267,943 General Fund Budgetary Highlights For budgetary reporting purposes, the General Fund reported revenues under estimates of $690,389 or 6.7%, while expenditures were under the final appropriations by $1,061,317 or 9.9%. 17  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2022, the City had $56.4 million invested in capital assets, net of depreciation, including police and fire equipment, buildings, park facilities, electrical infrastructure, water lines and sewer lines. (See table below). This represents a net decrease of $0.1 million or 0.3% from the prior year. TABLE 5 Capital Assets (In Thousands) (Net of accumulated depreciation) Governmental Business-Type Activities Activities Total 2022 2021 2022 2021 2022 2021 Land $ 4,601 $ 4,601 $ 791 $ 780 5,392 $ 5,381 Buildings 6,044 6,384 7,296 7,773 13,340 14,157 M achinery, furniture and equipment 2,829 2,895 5,094 4,890 7,923 7,785 Infrastructure 12,336 13,504 14,689 12,579 27,025 26,083 Construction in progress 243 114 2,497 3,046 2,740 3,160 Totals $ 26,053 $ 27,498 $ 30,367 $ 29,068 $ 56,420 $ 56,566 This year’s more significant capital asset additions placed into service included: Main street project phase III $989,756 Substation 1 rehabilitation $765,351 Airport pavement rehabilitation $676,532 SCADA design $303,925 East central water line project $263,381 See Note 6 to the financial statements for more detail information on the City’s capital assets and changes therein. Long- Term Debt At year-end, the City had $29.6 million in long-term debt outstanding which represents a $1.1 million decrease, or 4%, from the prior year. The City’s changes in long-term debt by type of debt are as follows: 18  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 TABLE 6 Long-Term Debt (In Thousands) Governmental Business-Type Activities Activities Total 2022 2021 2022 2021 2022 2021 Accrued absences $ 627 $ 655 $ 180 $ 184 $ 807 $ 839 Revenue Bonds 17,005 17,470 6,705 7,365 23,710 24,835 Bond Premium (Discount) 145 166 36 67 181 233 Notes Payable- Direct borrowing - - 4,251 4,021 4,251 4,021 Capital Leases 617 774 - - 617 774 Totals $ 18,394 $ 19,065 $ 11,172 $ 11,637 $ 29,566 $ 30,702 See Note 8 to the financial statements for more detail information on the City’s long-term debt and changes therein. The Upcoming Year The City’s FY 2022-2023 budget is expected to remain level with a few exceptions. In October of 2022, we received the second half of the $2.2M in American Rescue Plan Act (ARPA), associated with the Coronavirus Local Fiscal Recover Funds, plus an additional $10,835.87. All monies received will be budgeted per the eligible categories. The continued electric, water, and wastewater utility rates will fund the needed electric, water, and wastewater system improvements. With the high inflation rate, the City expects to continue to be impacted by a struggling economy but continues building financial capacity by expanding utility services thereby improving budget stabilization for the future. Utility funds will continue to repay the utility bonds and loans for these projects. The primary sources of revenue for the City of Miami are sales tax and utility (electric, water, and wastewater) revenues. Sales tax requires a vote of the people and cannot be adjusted without the people’s consent. The online sales tax collections, located within our use tax, continues to have a positive impact on our budget capacity. The City continually looks for ways to enhance our revenue base that will assist in the completion of major infrastructure and development projects. The Covid-19 pandemic that hit our community in March of 2020 continues to affect decision making as we transition to more normal operations. Spending remains optimistically cautious as our use and sales tax revenues remain positively affected. Sales tax for FY 21/22 ended up 8.76% and use tax up 10.24% over the previous year. We do not expect this trend to continue, but with the current inflation it may. Pensacola Dam Licensing The City has experienced flooding at various degrees for many years which the City asserts has been aggravated by operational changes at a nearby lake. The City contends that the instances of flooding have increased because the quasi-governmental agency that operates the Pensacola Dam that forms Grand Lake (and its hydroelectric operations), the Grand River Dam Authority (GRDA), has been granted permission to raise lake levels by the Federal Energy Regulatory Commission (FERC), which licenses GRDA to operate the dam. FERC has notified the City that the appropriate time to address these problems is at the time the operational license for the dam is renewed in 2022. That process started in 2018 and could potentially 19  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 take over five years to complete. The City has engaged legal counsel to represent its interest during the relicensing process and to require GRDA to modify its lake operations to reduce instances of flooding and to purchase flood easements. GRDA Winter Storm Uri In February 2021, the State of Oklahoma experienced a major winter storm, Uri, which caused electric wholesale prices to increase significantly. The City received information from GRDA, their wholesale electric provider, in August 2021, that Miami’s portion of the electrical cost for the winter storm would be $2,698,459. The City has opted to pay the amount by October 2022. The City has opted to allow their sixteen (16) industrial customers to repay their actual usage during this time totaling $1,025,878.70 and has approved a Temporary Rate Adjustment ("TRA") shown as PCAX, to be added to the monthly bills of Rate Class Customers E.1, E.2, E.3 and E.5 to recover 100% of the Grand River Dam Authority’s Temporary Production Cost Bill over an approximately 36-month term. We are tracking those repayments monthly and will eliminate the PCAX rate once the amount the City has paid GRDA has been recouped. Contacting the City’s Financial Management This report is designed to provide our citizens, taxpayers, customers and creditors with an understanding of the City’s finances and to demonstrate the City’s accountability for the resources it receives. If you have questions about this report or need additional financial information, contact: City of Miami PO Box 1288 Miami, OK 74355-1288 20  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE 21  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Statement of Net Position– June 30, 2022 Discretely Presented Primary Government Component Units Governmental Business-type Activities Activities Total ASSETS Cash and equivalents $ 11,530,034 $ 15,686,750 $ 27,216,784 $ 948,159 Investments 131,968 1,664,904 1,796,872 - Accounts receivable, net 372,962 5,091,648 5,464,610 - Due from other governments 1,501,855 - 1,501,855 - Other receivables 569,344 436 569,780 100 Internal balances (1,159,959) 1,159,959 - - Leases receivable - 248,964 248,964 279,031 Inventory - 1,465,814 1,465,814 - Net pension asset 1,830,509 - 1,830,509 - Capital Assets Land and construction in progress 4,844,164 3,288,076 8,132,240 350,792 Other capital assets, net of depreciation 21,209,755 27,079,036 48,288,791 8,173,108 Total assets 40,830,632 55,685,587 96,516,219 9,751,190 DEFERRED OUTFLOWS: Deferred amounts related to pensions 1,835,674 470,025 2,305,699 - Deferred amounts related to OPEB 291,991 183,611 475,602 - Deferred amount on refunding 192,326 - 192,326 - Deferred amount related to GRDA settlement - 99,788 99,788 - Total deferred outflows of resources 2,319,991 753,424 3,073,415 - LIABILITIES Accounts payable and accrued liabilities 558,146 3,498,943 4,057,089 11,531 Claims liability 687,229 - 687,229 - Accrued interest payable 43,628 113,263 156,891 - Unearned revenue 1,142,944 1,643,318 2,786,262 - Long-term liabilities Due within one year 675,047 1,627,610 2,302,657 211,290 Due in more than one year 21,782,726 10,835,557 32,618,283 - Total liabilities 24,889,720 17,718,691 42,608,411 222,821 DEFERRED INFLOWS: Deferred amounts related to leases - 249,720 249,720 275,470 Deferred amounts related to pensions 4,914,449 1,312,331 6,226,780 - Deferred amounts related to OPEB 962,420 713,899 1,676,319 - Total deferred inflows of resources 5,876,869 2,275,950 8,152,819 275,470 NET POSITION: Net investment in capital assets 17,144,478 19,374,799 36,519,277 8,316,453 Net Position: Restricted 3,403,841 207,449 3,611,290 - Unrestricted (deficit) (8,164,285) 16,862,122 8,697,837 936,446 Total net position $ 12,384,034 $ 36,444,370 $ 48,828,404 $ 9,252,899 See accompanying notes to the basic financial statements. 22  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Statement of Activities –Year Ended June 30, 2022 Net (Expense) Revenue and Changes in Net Position Program Revenue Primary Government Discretely Operating Capital Grants Presented Charges for Grants and and Governmental Business-type Component Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Units Primary government Governmental Activities General Government $ 1,693,436 $ 220,927 $ 263,746 $ - $ (1,208,763) $ - $ (1,208,763) $ - Public Safety 5,413,391 420,374 469,725 38,445 (4,484,847) - (4,484,847) - Public Works and Streets 3,054,893 50,735 146,156 - (2,858,002) - (2,858,002) - Culture and Recreation 1,593,438 209,795 138,294 26,353 (1,218,996) - (1,218,996) - Economic Development 391,723 116,775 28,189 - (246,759) - (246,759) - Interest on long-term Debt 617,222 - - - (617,222) - (617,222) - Total governmental activities 12,764,103 1,018,606 1,046,110 64,798 (10,634,589) - (10,634,589) - Business-type activities Water 2,453,269 3,731,628 56,682 - - 1,335,041 1,335,041 - Wastewater 1,405,471 2,569,106 - - - 1,163,635 1,163,635 - Sanitation 1,696,538 2,846,793 - - - 1,150,255 1,150,255 - Electric 18,938,978 22,721,128 - - - 3,782,150 3,782,150 - Airport 393,479 184,731 - 208,482 - (266) (266) - Total business-type activities 24,887,735 32,053,386 56,682 208,482 - 7,430,815 7,430,815 - Total primary government $ 37,651,838 $ 33,071,992 $ 1,102,792 $ 273,280 (10,634,589) 7,430,815 (3,203,774) - Component Units Culture and Recreation $ 645,371 $ 388,792 $ 165,762 $ - (90,817) Economic Development 72,566 95,646 - - 23,080 Total component units $ 717,937 $ 484,438 $ 165,762 $ - (67,737) General revenues: Taxes: Sales and use taxes 9,332,194 - 9,332,194 - Property tax 13,343 - 13,343 - Franchise and public service taxes 349,288 - 349,288 - Hotel/motel taxes 232,309 - 232,309 - Investment income 10,832 9,138 19,970 3,418 Miscellaneous 106,548 8,277 114,825 - Transfers - internal activity 2,453,335 (2,453,335) - - Total general revenues and transfers 12,497,849 (2,435,920) 10,061,929 3,418 Change in net position 1,863,260 4,994,895 6,858,155 (64,319) Net position - beginning 10,520,774 31,449,475 41,970,249 9,317,218 Net position - ending $ 12,384,034 $ 36,444,370 $ 48,828,404 $ 9,252,899 See accompanying notes to the basic financial statements. 23  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 BASIC FINANCIAL STATEMENTS - GOVERNMENTAL FUNDS 24  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Governmental Funds Balance Sheet - June 30, 2022 City of Miami 2013 Balance Sheet Governmental Funds June 30, 2022 Other Total S&L Fiscal Governmental Governmental General Fund Recovery Fund Funds Funds ASSETS Cash and cash equivalents $ 3,572,110 $ 1,142,944 $ 4,428,519 $ 9,143,573 Receivables: Accounts receivable 282,991 - 91,721 374,712 Due from other funds 87,654 - 45,061 132,715 Due from other governments and entities 1,208,530 - 293,325 1,501,855 Other receivables 7,500 - - 7,500 Total assets $ 5,158,785 $ 1,142,944 $ 4,858,626 $ 11,160,355 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 185,516 $ - $ 230,081 $ 415,597 Wages payable 131,738 - 2,891 134,629 Due to other funds 77,843 - 38,404 116,247 Total liabilities 395,097 - 271,376 666,473 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 99,698 1,142,944 55,410 1,298,052 Fund balances: Restricted - - 3,447,469 3,447,469 Commited - - 271,236 271,236 Assigned 3,671,956 - 813,135 4,485,091 Unassigned 992,034 - - 992,034 Total fund balances 4,663,990 - 4,531,840 9,195,830 Total liabilities, deferred inflows and fund balances $ 5,158,785 $ 1,142,944 $ 4,858,626 $ 11,160,355 See accompanying notes to the basic financial statements. 25  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Governmental Funds Statement of Changes in Fund Balances – Year Ended June 30, 2022 Other Total S&l Fiscal Governmental Governmental General Fund Recovery Fund Funds Funds REVENUES Taxes $ 7,450,209 $ - $ 2,290,835 $ 9,741,044 Intergovernmental 741,524 - 324,551 1,066,075 Charges for services 404,238 - 181,599 585,837 Fines and forfeitures 291,862 - - 291,862 Licenses and permits 175,378 - - 175,378 Investment income 10,359 - 473 10,832 Miscellaneous 337,633 - 82,367 420,000 Total revenues 9,411,203 - 2,879,825 12,291,028 EXPENDITURES Current: General government 1,459,448 - 48,286 1,507,734 Public Safety 6,179,614 - 131,159 6,310,773 Public works and streets 1,385,579 - 662,574 2,048,153 Culture and recreation 1,213,949 - 273,538 1,487,487 Economic development 420,219 - - 420,219 Capital Outlay - - 417,928 417,928 Debt Service: Principal 104,947 - 517,071 622,018 Interest and other charges 11,168 - 538,341 549,509 Total expenditures 10,774,924 - 2,588,897 13,363,821 Excess (deficiency) of revenues over expenditures (1,363,721) - 290,928 (1,072,793) OTHER FINANCING SOURCES (USES) Transfers in 10,376,083 - 562,421 10,938,504 Transfers out (8,329,637) - (125,317) (8,454,954) Total other financing sources and uses 2,046,446 - 437,104 2,483,550 Net change in fund balances 682,725 - 728,032 1,410,757 Fund balances - beginning 3,981,265 - 3,803,808 7,785,073 Fund balances - ending $ 4,663,990 $ - $ 4,531,840 $ 9,195,830 See accompanying notes to the basic financial statements. 26  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Reconciliation of Governmental Funds and Government-Wide Financial Statements: Total fund balance, governmental funds $ 9,195,830 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in this fund financial statement, but are reported in the governmental activities of the Statement of Net Position. 26,053,919 Certain long-term assets are not available to pay for current fund liabilities and, therefore, are deferred in the funds. 155,108 Certain other assets and long-term elements are not available to pay current period expenditures and are classified as deferred outflows and are not reported in this fund financial statement, but are reported in the governmental activities of the Statement of Net Position. Net pension asset 1,830,509 Pension related deferred outflows 1,835,674 OPEB related deferred outflows 291,991 Deferred amounts on refunding 192,326 Some liabilities are not due and payable in the current period and they, along with deferred inflows, are not included in the fund financial statement, but are included in the governmental activities of the Statement of Net Position: Noe payable obligations (616,687) Interest payable (43,628) Net pension liability (2,555,621) Pension related deferred inflows (4,914,449) Total OPEB liability (1,507,711) OPEB related deferred inflows (962,420) Accrued compensated absences (627,442) Unamortized debt premium (145,312) Revenue bond payable (17,005,000) Internal service funds are used by management to charge costs of certain activities that benefit multiple funds, such as self-insurance, to individual funds. The net position of the internal service funds are reported in governmental activities: Internal service fund net position 1,206,947 Net Position of Governmental Activities in the Statement of Net Position $ 12,384,034 See accompanying notes to the basic financial statements. 27  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Changes in Fund Balances – Changes in Net Position Reconciliation: Net change in fund balances - total governmental funds: $ 1,410,757 Amounts reported for Governmental Activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets: Capital asset purchases capitalized 630,207 Depreciation expense (2,059,539) Disposed capital assets (14,750) In the Statement of Activities, the net cost of pension benefits earned is calculated and reported as pension expense. The fund financial statements report pension contributions as expenditures. This amount represents the difference between pension contributions and calculated pension expense. 1,549,482 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Change in unavailable revenue 878 Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: Note payable principal payments 157,019 Revenue bond principal payments 465,000 Some expenses reported in the statement of activities do not require the use of current financial resources and these are not reported as expenditures in governmental funds: Change in accrued interest payable 775 Change in accrued compensated absences 28,016 Change in total OPEB liability (23,615) Change in amortization of bond premium 20,276 Change in amortization of unamortized gain/loss (88,765) Internal service fund activity is reported as a proprietary fund in fund financial statements, but certain net revenues are reported in governmental activities on the Statement of Activities: Total change in net position for internal service funds (212,481) Change in net position of governmental activities $ 1,863,260 See accompanying notes to the basic financial statements. 28  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 BASIC FINANCIAL STATEMENTS - PROPRIETARY FUNDS 29  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Proprietary Funds Statement of Net Position - June 30, 2022 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Funds ASSETS Current assets: Cash and cash equivalents $ 12,863,788 $ 61,033 $ 12,924,821 $ 2,386,461 Cash and cash equivalents, restricted 2,959,373 - 2,959,373 - Investments 1,466,265 - 1,466,265 131,968 Accounts receivable, net 5,048,525 43,123 5,091,648 - Leases receivables 18,471 - 18,471 - Other receivable 436 - 436 560,094 Inventory 1,432,790 33,024 1,465,814 - Due from other funds 41,593 30,128 71,721 458,448 Total current assets 23,831,241 167,308 23,998,549 3,536,971 Non-current assets: Cash and cash equivalents, restricted 1,195 - 1,195 - Leases receivables 230,493 - 230,493 - Capital assets: Land, construction in progress, and water rights 3,275,215 12,861 3,288,076 - Other capital assets, net of accumulated depreciation 22,954,153 4,124,883 27,079,036 - Total non-current assets 26,461,056 4,137,744 30,598,800 - Total assets 50,292,297 4,305,052 54,597,349 3,536,971 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pensions 470,025 - 470,025 - Deferred amounts related to OPEB 183,611 - 183,611 - Deferred amounts related to GRDA settlement 99,788 - 99,788 - Total deferred outflow of resources 753,424 - 753,424 - LIABILITIES Current liabilities: Accounts payable and accrued liabilities 3,382,104 36,838 3,418,942 19,793 Claims liability - - - 675,356 Wages payable 79,204 797 80,001 - Due to other funds 86,341 1,848 88,189 458,448 Accrued interest payable 113,263 - 113,263 - Accrued compensated absences 17,675 146 17,821 - Unearned revenue 1,643,318 - 1,643,318 - Refundable deposits 35,217 - 35,217 - Capital lease payable 144,620 - 144,620 - Revenue bond payable 465,000 - 465,000 - Notes payable 964,952 - 964,952 - Total current liabilities 6,931,694 39,629 6,971,323 1,153,597 Non-current liabilities: Accrued compensated absences 161,335 1,306 162,641 - Net pension liability 54,687 - 54,687 - Total OPEB liability 884,690 - 884,690 - Refundable deposits 315,798 - 315,798 - Revenue bond payable 6,240,000 - 6,240,000 - Notes payable, net 3,177,741 - 3,177,741 - Total non-current liabilities 10,834,251 1,306 10,835,557 - Total liabilities 17,765,945 40,935 17,806,880 1,153,597 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases 249,720 - 249,720 - Deferred amounts related to pensions 1,312,331 - 1,312,331 - Deferred amounts related to OPEB 713,899 - 713,899 - Total deferred inflow of resources 2,275,950 - 2,275,950 - NET POSITION Net investment in capital assets 15,237,055 4,137,744 19,374,799 - Restricted for debt service 207,449 - 207,449 - Unrestricted 15,559,322 126,373 15,685,695 2,383,374 Total net position $ 31,003,826 $ 4,264,117 $ 35,267,943 $ 2,383,374 Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal service fund balances are included with business-type activities and reported as interfund balances 1,176,427 Total net position per Government-Wide financial statements $ 36,444,370 See accompanying notes to the basic financial statements. 30  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Proprietary Funds Statement of Changes in Net Position - Year Ended June 30, 2022 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund REVENUES Charges for services $ 30,960,775 $ 193,005 $ 31,153,780 $ 1,866,285 Fees, licenses and permits 133,625 - 133,625 - Miscellaneous 790,398 - 790,398 1,058,177 Total operating revenues 31,884,798 193,005 32,077,803 2,924,462 OPERATING EXPENSES Personal services 3,525,540 42,641 3,568,181 - Materials and supplies 13,936,612 84,728 14,021,340 - Other services and charges 4,551,745 (10,995) 4,540,750 489,621 Insurance claims and expense - - - 2,751,684 Depreciation expense 2,091,470 277,105 2,368,575 - Total operating expenses 24,105,367 393,479 24,498,846 3,241,305 Operating income (loss) 7,779,431 (200,474) 7,578,957 (316,843) NON-OPERATING REVENUES (EXPENSES) Investment income 9,138 - 9,138 495 Miscellaneous 52,217 20 52,237 - Capital grant - 208,482 208,482 - Interest expense and fiscal charges (296,717) - (296,717) - Total non-operating revenue (expenses) (235,362) 208,502 (26,860) 495 Income (loss) before contrbutions and transfers 7,544,069 8,028 7,552,097 (316,348) Contributed assets- governmental activities 30,215 - 30,215 - Transfers in 8,465,882 18 8,465,900 - Transfers out (10,909,450) (40,000) (10,949,450) - Change in net position 5,130,716 (31,954) 5,098,762 (316,348) Total net position - beginning 25,873,110 4,296,071 30,169,181 2,699,722 Total net position - ending $ 31,003,826 $ 4,264,117 $ 35,267,943 $ 2,383,374 Change in net position above 5,098,762 Some amounts reported for business-type activities in the Statement of Activities are difference because the net revenue of certain internal service funds is reported with business-type activities (103,867) Change in Business-Type Activities in Net Position per Government-Wide Financial Statements $ 4,994,895 See accompanying notes to the basic financial statements. 31  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Proprietary Funds Statement of Cash Flows - Year Ended June 30, 2022 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 32,173,831 187,957 $ 32,361,788 $ 3,447,599 Payments to suppliers (17,458,995) (614,698) (18,073,693) (469,828) Payments to employees (3,989,981) (47,713) (4,037,694) - Receipts from other funds 18,329 - 18,329 249,863 Payments to other funds 57,647 - 57,647 (249,863) Receipts of customer meter deposits 153,614 - 153,614 - Refunds of customer meter deposits (172,911) - (172,911) - Claims and judgments paid - - - (2,895,304) Net cash provided by operating activities 10,781,534 (474,454) 10,307,080 82,467 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 8,465,882 18 8,465,900 - Transfers to other funds (10,909,450) (40,000) (10,949,450) - Net cash provided by (used in) noncapital financing activities (2,443,568) (39,982) (2,483,550) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (3,557,690) (79,557) (3,637,247) - Principal paid on debt (1,754,612) - (1,754,612) - Proceeds of capital grants - 602,697 602,697 - Proceeds from debt 1,324,579 - 1,324,579 - Interest and fiscal agent fees paid on debt (331,237) - (331,237) - Net cash provided by (used in) capital and related financing activities (4,318,960) 523,140 (3,795,820) - CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments 193,888 - 193,888 (494) Interest and dividends 9,138 - 9,138 495 Net cash provided by (used in) investing activities 203,026 - 203,026 1 Net increase (decrease) in cash and cash equivalents 4,222,032 8,704 4,230,736 82,468 Balances - beginning of year 11,602,324 52,329 11,654,653 2,303,993 Balances - end of year $ 15,824,356 $ 61,033 $ 15,885,389 $ 2,386,461 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 12,863,788 $ 61,033 $ 12,924,821 $ 2,386,461 Restricted cash and cash equivalents - current 2,959,373 - 2,959,373 - Restricted cash and cash equivalents - noncurrent 1,195 - 1,195 - Total cash and cash equivalents, end of year $ 15,824,356 $ 61,033 $ 15,885,389 $ 2,386,461 - Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 7,779,431 $ (200,474) $ 7,578,957 $ (316,843) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 2,091,470 277,105 2,368,575 - Unearned revenue 1,643,318 - 1,643,318 Other nonoperating revenue 52,217 20 52,237 - Change in assets and liabilities: Receivables, net (1,157,538) (5,068) (1,162,606) 523,137 Leases receivable (248,964) - (248,964) Due from other funds 57,647 - 57,647 (249,863) Inventory (136,670) (8,885) (145,555) - Deferred outflows related to pension 208,518 577 209,095 - Deferred outflows related to OPEB 35,671 - 35,671 - Accounts payable 1,166,032 (532,080) 633,952 19,793 Claims liability - - - (143,620) Due to other funds 18,329 - 18,329 249,863 Due to employees (90,768) (1,284) (92,052) - Refundable deposits (19,297) - (19,297) - Total OPEB liability (102,667) - (102,667) - Net pension liability (1,740,807) - (1,740,807) - Accrued compensated absences (3,401) 105 (3,296) - Deferred inflows related to pension 933,353 (4,470) 928,883 - Deferred inflows related to leases 249,720 - 249,720 Deferred inflows related to OPEB 45,940 - 45,940 - Net cash provided by operating activities $ 10,781,534 $ (474,454) $ 10,307,080 $ 82,467 Noncash activities: Assets contributed by governmental activities $ 30,215 $ - $ 30,215 $ - $ 30,215 $ - $ 30,215 $ - See accompanying notes to the basic financial statements. 32  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 BASIC FINANCIAL STATEMENTS – DISCRETELY PRESENTED COMPONENT UNITS 33  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Discretely Presented Component Units Combining Statement of Net Position - June 30, 2022 MCFA MDRA MIDA MIPFA Total ASSETS Current assets: Cash and cash equivalents $ 342,439 $ 148,670 $ 236,809 $ 220,241 $ 948,159 Receivables: Leases receivable - - - 7,508 7,508 Other receivable - - - 100 100 Total current assets 342,439 148,670 236,809 227,849 955,767 Non-current assets: Leases receivable - - - 271,523 271,523 Capital assets: Land, construction in progress, and water rights - - 102,571 248,221 350,792 Other capital assets, net of accumulated depreciation 7,239,199 - 684,178 249,731 8,173,108 Total non-current assets 7,239,199 - 786,749 769,475 8,795,423 Total assets 7,581,638 148,670 1,023,558 997,324 9,751,190 LIABILITIES Current liabilities: Accounts payable and accrued liabilities - 9,824 - 1,707 11,531 Accrued compensated absences - 3,208 - - 3,208 Accrued interest on notes payable - - 635 - 635 Notes payable - - 207,447 - 207,447 Total liabilities - 13,032 208,082 1,707 222,821 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases - - - 275,470 275,470 NET POSITION Net investment in capital assets 7,239,199 - 579,302 497,952 8,316,453 Unrestricted 342,439 135,638 236,174 222,195 936,446 Total net position $ 7,581,638 $ 135,638 $ 815,476 $ 720,147 $ 9,252,899 See accompanying notes to the basic financial statements. 34  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Discretely Presented Component Units Combining Statement of Changes in Net Position - Year Ended June 30, 2022 MCFA MDRA MIDA MIPFA Total REVENUES Charges for services $ 148,145 $ 225,647 $ 71,774 $ 23,872 $ 469,438 Miscellaneous - 15,000 - - 15,000 Total operating revenues 148,145 240,647 71,774 23,872 484,438 OPERATING EXPENSES Personal services - 114,537 - - 114,537 Materials and supplies - 18,706 - 600 19,306 Other services and charges 65,789 197,645 11,750 2,293 277,477 Depreciation expense 246,170 2,524 20,727 28,713 298,134 Total operating expenses 311,959 333,412 32,477 31,606 709,454 Operating income (loss) (163,814) (92,765) 39,297 (7,734) (225,016) NON-OPERATING REVENUES (EXPENSES) Investment income 149 - 1 3,268 3,418 Miscellaneous income 4,358 161,379 - 25 165,762 Interest expense and fiscal charges - - (8,483) - (8,483) Total non-operating revenue (expenses) 4,507 161,379 (8,482) 3,293 160,697 Change in net position (159,307) 68,614 30,815 (4,441) (64,319) Total net position - beginning 7,740,945 67,024 784,661 724,588 9,317,218 Total net position - ending $ 7,581,638 $ 135,638 $ 815,476 $ 720,147 $ 9,252,899 See accompanying notes to the basic financial statements. 35  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 FOOTNOTES TO BASIC FINANCIAL STATEMENTS 36  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Footnotes to the Basic Financial Statements: 1. Financial Reporting Entity In determining the financial reporting entity, the City uses the integrated approach as prescribed by Governmental Accounting Standards Board Statements No. 14 “The Financial Reporting Entity”, and Statement No. 61, “The Financial Reporting Entity: Omnibus”, and includes all component units for which the City is financially accountable/fiscally responsible. The City’s financial reporting entity primary government presentation includes the City of Miami and the certain component units as follows: The City of Miami – that operates the public safety, health and welfare, streets and highways, culture and recreation, and administrative activities. The City of Miami is an incorporated municipality with a population of approximately 13,570 located in northeastern Oklahoma. The City operates under a council-manager form of government with a charter that provides for three branches of government:  Legislative – the governing body includes an elected five-member City Council and Mayor  Executive – the City Manager is the Chief Executive Officer and is appointed by the City Council  Judicial – the Municipal Judge is a practicing attorney appointed by the City Council Blended Component Units (separate legal entities for which the City Council is fiscally responsible, and for which the City Council members serve as the trustees/governing body of the entity): Miami Special Utility Authority (MSUA) – public trust that operates the electric, water, wastewater, and solid waste/sanitation services of the City. Miami Development Authority (MDA) – public trust created to promote the development of housing in Miami. Discretely Presented Component Units (separate legal entities for which the City Council is fiscally responsible, but appoints a separate governing body): Miami Downtown Redevelopment Authority (MDRA) – public trust created to promote the redevelopment of the downtown area. The Authority does not issue separate financial statements. Miami Industrial and Public Facilities Authority (MIPFA) – public trust that promotes the use of facilities in the City of Miami area. The Authority does not issue separate financial statements. Miami Community Facilities Authority (MCFA) – public trust that promotes the development of commerce, housing, recreation, education and public facilities within the city. The Authority does not issue separate financial statements. Miami Industrial Development Authority (MIDA) – public trust that promotes industry in and around the City of Miami. Complete financial statements can be obtained from the office of the City Clerk. MIDA’s fiscal year end is July 31. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. The trust is currently inactive. 37  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Each of these component units listed above are Public Trusts established pursuant to Title 60 of Oklahoma State law. Public Trusts (Authorities) have no taxing power. The Authorities are generally created to finance City services through issuance of revenue bonds or other non-general obligation debt and to enable the City Council to delegate certain functions to the governing body (Trustees) of the Authority. In accordance with state law, the City Council must approve, by two-thirds vote, all debt obligations of these public trusts prior to incurring the obligation. The Authorities generally retain title to assets which are acquired or constructed with Authority debt or other Authority generated resources. In addition, the City has leased certain existing assets at the creation for the Authorities to the Trustees on a long-term basis. The City, as beneficiary of the Public Trusts, receives title to any residual assets when a Public Trust is dissolved. 2. Basis of Presentation and Accounting This annual report is presented in a format that substantially meets the presentation requirements of the Governmental Accounting Standards Board (GASB) in accordance with generally accepted accounting principles. The presentation includes financial statements that communicate the City’s financial condition and changes therein at two distinct levels:  The City as a Whole (a government-wide presentation)  The City’s Funds (a presentation of the City’s major and aggregate non-major funds) Government-Wide Financial Statements: In the Statement of Net Position and the Statement of Activities, we divide the City into three kinds of activities: Governmental activities - Most of the City’s basic services are reported here, including the police, fire, general administration, streets, parks and recreation. Sales taxes, franchise fees, fines, and state and federal grants finance most of these activities. Business-type activities – Services where the City charges a fee to customers to help it cover all or most of the cost of these services it provides. The City’s airport, water, sewer, electric and sanitation systems activities are reported here. Discretely presented component units -- Accounts for various activities related to economic development, facility management, facility construction, and downtown development. The Statements of Net Position and Activities are reported on the accrual basis of accounting and economic resources measurement focus. Under the accrual basis of accounting, revenues are recognized when earned and expenses (including depreciation and amortization) are recorded when the liability is incurred or economic asset used. Fund Financial Statements: Governmental Funds: Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. Governmental 38  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 funds report their activities on the modified accrual basis of accounting and current financial resources measurement focus that is different from other funds. For example, these funds report the acquisition of capital assets and payments for debt principal as expenditures and not as changes to asset and debt balances. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine (through a review of changes to fund balance) whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The City’s governmental funds include: Major Funds:  General Fund – accounts for all activities not accounted for in other special-purpose funds. For reporting purposes the General Fund includes the activities of the Municipal Court Account, Travel Center Account, MCVB & Tourism Account, and Demolition Account. The General Fund’s major funding source is a three cent sales tax, franchise fees, hotel/motel tax, and miscellaneous charges for services.  S&L Fiscal Recovery Fund –to account for activity related to ARPA funds received from the Federal Government. Aggregated Non-Major Funds (reported as Other Governmental Funds): Special Revenue Funds include the Fishing License Fund, Street and Alley, Drug Forfeiture Fund, Parks and Recreation Program, Grant and Donation Fund, MDA Housing Construction, and Police Grant. Debt Service Funds – accounts for ad-valorem taxes levied by the City for use in retiring court-assessed judgments, general obligation bonds, and their related interest expenses. Capital Project Funds:  Pool Improvements Fund accounts for funds used to rehabilitate the municipal pool.  Parks Department Projects accounts for general obligation bond proceeds used to acquire, construct, and equip city park and recreation facilities.  Main Street Project accounts for projects related to the revitalization of Main Street.  Street and Stadium Project Fund – is a capital project fund that accounts for a .65 cent sales tax restricted for streets and stadium projects.  Cemetery Care Fund accounts for cemetery fees that are restricted for capital improvements.  Capital Improvement Fund accounts for use tax used for city capital projects for various departments. The governmental funds are reported on the modified accrual basis of accounting. On the modified accrual basis of accounting, revenues are recorded when earned and measurable and available to pay current financial obligations, while expenditures are recorded when incurred and normally due and payable from current financial resources. The City defines revenue availability as collected within 60 days of period end. The reconciliation of the governmental funds financial statements to the governmental activities presentation in the government-wide financial statements is the result of the use of the accrual basis of accounting and economic resources measurement focus at the government-wide level. 39  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Proprietary Funds: When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds include enterprise funds and internal service funds. Enterprise funds are used to account for business-like activities provided to the general public. Internal service funds are used to account for business-like activities provided to other funds or departments of the City. Proprietary funds are reported on the accrual basis of accounting and economic resources measurement focus. For example, proprietary fund capital assets are capitalized and depreciated and principal payments on long- term debt are recorded as a reduction to the liability. The City’s proprietary funds include the following: Enterprise Funds Major Funds:  Miami Special Utility Authority (MUSA) that accounts for the activities of the public trust in providing water, sewer, electric, and sanitation/solid waste services to the public.  Airport Fund accounts for activities of the municipal airport. Internal Service Funds (combined for reporting purposes)  Health Insurance Fund that accounts for the cost of providing various group health and life insurance services to other funds and departments of the City.  Workers Compensation Fund that accounts for the cost of providing workers compensation insurance to the other funds and departments of the City.  Unemployment Compensation Reimbursement that accounts for the cost of providing unemployment benefits. 3. Cash and Cash Equivalents, Deposits and Investments Cash and cash equivalents includes all demand and savings accounts, certificates of deposit or short-term investments with an original maturity of three months or less, and money market investments. Trust account investments in open-ended mutual fund shares are also considered cash equivalents. Investments consist of long-term certificates of deposits and government money market funds. Certificates of deposit are reported at cost. Deposits and Investments Risks The City of Miami primary government and component units are governed by the deposit and investment limitations of state law and trust indentures. The deposits and investments held at June 30, 2022 by these entities are as follows: 40  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Maturities in Years Fair Credit On Less T ype Value Rating Demand T han One Demand deposits $ 24,181,467 N/A $ 24,181,467 $ - Cash on hand 3,395 N/A 3,395 - T ime deposits 1,796,872 N/A - 1,796,872 Money Market Funds 3,031,922 Not rated - 3,031,922 Sub-T otal $ 29,013,656 $ 24,184,862 $ 4,828,794 Reconciliation to Financial Statements: Cash and cash equivalents $ 27,216,784 Investments 1,796,872 $ 29,013,656 GASB Statement No. 72, Fair Value Measurement and Application, established a hierarchy based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2022: • Money Market Mutual Funds of $3,031,922 were valued using quoted market prices (Level 1 inputs). Custodial Credit Risk – Exposure to custodial credit risk related to deposits exists when the City holds deposits that are uninsured and uncollateralized; collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City’s name; or collateralized without a written or approved collateral agreement. Exposure to custodial credit risk related to investments exists when the City holds investments that are uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the City’s name. The City’s policy as it relates to custodial credit risk is to secure its uninsured deposits with collateral, valued at no more than market value, at least at a level of 102% of the uninsured deposits and accrued interest thereon. The City’s policy limits acceptable collateral to U.S. Treasury securities, federally insured obligations, or direct debt obligations of municipalities, counties, and school districts in Oklahoma. Also, as required by Federal 12 U.S.C.A., Section 1823(e), all financial institutions pledging collateral to the City must have a written collateral agreement approved by the board of directors or loan committee. At June 30, 2022, the City was not exposed to custodial credit risk. Component Unit: The bank deposits of the MDRA component unit of $148,670 at June 30, 2022 were fully insured by the F.D.I.C. The bank deposits of the MCFA component unit of $342,439 at June 30, 2022 were fully insured. The bank deposits of the MIPFA component unit of $220,241 at June 30, 2022 were fully insured by the F.D.I.C. The bank deposits of the MIDA component unit of $236,809 at June 30, 2022 were fully insured by the F.D.I.C. 41  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Investment Credit Risk – The City’s investment policy limits investments, excluding retirement trust fund investments, to the following: a. Obligations of the U. S. Government, its agencies and instrumentalities; b. Collateralized or insured non-negotiable certificates of deposit or other evidences of deposit that are either insured or secured with acceptable collateral with an in-state financial institution, and fully insured deposits in out-of-state institutions; c. Insured or fully collateralized negotiable certificates of deposit; d. Repurchase agreements that have underlying collateral consisting of those items specified in paragraph a above; and e. Money market funds regulated by the SEC and in which investments consist of the investments mentioned in the previous paragraph a. Investment credit risk is the risk that an issuer or other counterpart to an investment will not fulfill its obligations. The City has no formal policy limiting investments based on credit rating, but discloses any such credit risk associated with their investments by reporting the credit quality ratings of investments in debt securities as determined by nationally recognized statistical rating organizations—rating agencies—as of the year end. Unless there is information to the contrary, obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. Investment Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City discloses its exposure to interest rate risk by disclosing the maturity dates of its various investments by date range. As noted in the schedule of deposits and investments above, at June 30, 2022, the investments held by the City mature between 2022 through 2023. Concentration of Investment Credit Risk - Exposure to concentration of credit risk is considered to exist when investments in any one issuer represent a significant percent of total investments of the City (any over 5% are disclosed). No concentration of credit risk existed as of June 30, 2022. Restricted Cash and Investments The amounts reported as restricted assets of the Enterprise Funds on the Statement of Net Position are comprised of amounts held by the MSUA Enterprise Fund in accounts for the Oklahoma Water Resources Board promissory notes, 2001 Utility Revenue Bond and other accounts with restricted uses. The restricted assets as of June 30, 2022 are as follows: Cash and cash equivalents: Cash Restricted for Refundable deposits $ 49,524 Money Markets Restricted for Debt Service 2,711,210 $ 2,760,734 Cash and cash equivalents, noncurrent: Cash Restricted for Refundable deposits 1,195 $ 1,195 Investments: Refundable deposits $ 198,639 $ 198,639 42  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 4. Receivables Material receivables in the governmental fund types and the governmental activities include revenue accruals such as court fines and economic development loans. These are reported as Due From Other Governments. Non-exchange transactions collectible but not available are deferred in the fund financial statements. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Business-type activities and the proprietary type fund consist of revenues earned at year-end and not yet received. Billed and unbilled utility accounts receivable comprise the majority of these receivables. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Less: Allowance Net Accounts for Uncollectible Accounts Receivable Accounts Receivable Governmental Activities: T axes 1,309,483 $ - $ 1,309,483 Due from other governments 277,336 - 277,336 Court fines 706,795 (593,127) 113,668 Grants receivable 5,007 - 5,007 Other 738,667 - 738,667 T otal Governmental Activities $ 3,037,288 $ (593,127) $ 2,444,161 Reconciliation to Statement of Net Position: Accounts receivable, net $ 372,962 Due from other governmental agencies 1,501,855 Other receivable 569,344 T otal $ 2,444,161 Business-T ype Activities: Utilities $ 7,333,765 $ (2,242,117) $ 5,091,648 5. Leases Receivables The City is a party as lessor for two noncancellable long-term leases of buildings, and infrastructure. The corresponding lease receivable, are recorded in an amount equal to the present value of the expected future minimum lease payments received or received, respectively, discounted by an applicable interest rate. Lease-related amounts are recognized at the inception of leases in which the city is the lessor and are recorded in an amount equal to the corresponding lease receivable plus certain additional amounts received from the lessee at or before the commencement of the lease term that relate to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. The inflow of resources is recognized in a systematic and rational manner over the term of the lease. 43  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Business-type Activities The City as a lessor, has entered into lease agreements involving an infrastructure. The total amount of inflows of resources, including lease revenue and interest revenue recognized during the fiscal year was $268,929. Component Unit The MIPFA as a lessor, has entered into lease agreements involving a building. The total amount of inflows of resources, including lease revenue and interest revenue recognized during the fiscal year was $5,938. 6. Inventories Inventories are valued at average cost. Inventories in the proprietary funds relate to fuel at the airport and material and supplies for the water, wastewater and electric systems. The cost of proprietary funds inventories are recorded as expenses when consumed rather than when purchased. 7. Capital Assets and Depreciation Capital Assets: For the primary government and component units, capital assets are reported at actual or estimated historical cost, net of accumulated depreciation where applicable. Donated capital assets are reported at the acquisition value at date of donation. Estimated historical cost was used to value the majority of the capital assets acquired prior to June 30, 1992. The capitalization threshold is capital assets with a cost of $10,000 or more. For the year ended June 30, 2022, capital assets balances changed as follows: Balance at Transfers/ Balance at July 1, 2021 Additions Deductions June 30, 2022 PRIMARY GOVERNMENT: Governmental activities: Capital assets not being depreciated: Land $ 4,601,374 $ - $ - $ 4,601,374 Construction in progress 113,519 188,701 59,430 242,790 Total capital assets not being depreciated 4,714,893 188,701 59,430 4,844,164 Other capital assets: Buildings 23,180,501 - - 23,180,501 Infrastructure 47,549,569 - - 47,549,569 M achinery, furniture and equipment 12,814,804 500,936 329,261 12,986,479 Total other capital assets at historical cost 83,544,874 500,936 329,261 83,716,549 Less accumulated depreciation for: Buildings 16,796,183 339,894 - 17,136,077 Infrastructure 34,045,624 1,167,821 - 35,213,445 M achinery, furniture and equipment 9,919,959 551,824 314,511 10,157,272 Total accumulated depreciation 60,761,766 2,059,539 314,511 62,506,794 Other capital assets, net 22,783,108 (1,558,603) 14,750 21,209,755 Governmental activities capital assets, net $ 27,498,001 $ (1,369,902) $ 74,180 $ 26,053,919 44  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Restated Balance at Transfers/ Balance at July 1, 2021 Additions Deductions June 30, 2022 Business-type activities: Capital assets not being depreciated: Land $ 780,300 $ 10,500 $ - $ 790,800 Construction in progress 3,046,344 2,355,087 2,904,155 2,497,276 Total capital assets not being depreciated 3,826,643 2,365,587 2,904,155 3,288,076 Other capital assets: Buildings and utility infrastructure 21,098,912 - - 21,098,912 M achinery, furniture and equipment 19,969,056 1,026,193 253,153 20,742,096 Infrastructure 30,020,072 3,179,837 - 33,199,909 Total other capital assets at historical cost 71,088,040 4,206,030 253,153 75,040,917 Less accumulated depreciation for: Buildings and utility infrastructure 13,326,038 476,870 - 13,802,908 M achinery, furniture and equipment 15,078,983 822,503 253,153 15,648,333 Infrastructure 17,441,437 1,069,202 - 18,510,639 Total accumulated depreciation 45,846,458 2,368,575 253,153 47,961,880 Other capital assets, net 25,241,582 1,837,455 - 27,079,037 Business-type activities capital assets, net $ 29,068,225 $ 4,203,042 $ 2,904,155 $ 30,367,113 Depreciation: Depreciable capital assets are depreciated on a straight-line basis over their useful lives. The range of estimated lives by type of assets is as follows:  Buildings 25-50 years  Improvements other than buildings 20-50 years  Utility property and improvements 15-50 years  Infrastructure 15-50 years  Machinery, furniture, and equipment 3–10 years Depreciation of capital assets is included in total expenses and is charged or allocated to the activities primarily benefiting from the use of the specific asset. Depreciation expense has been allocated as follows: Governmental Activities: General Government $ 268,857 Public Safety 211,575 Streets 1,263,420 Culture and Recreation 315,687 Total $ 2,059,539 Business-Type Activities: Airport $ 277,105 Electric 871,846 Water 556,943 Wastewater 416,798 Sanitation 245,883 Total $ 2,368,575 45  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Capital assets of the component units were: M IDA Balance at Balance at August 1, 2021 Additions Deductions July 31, 2022 MIDA - Discreetly Presented Component unit Capital assets not being depreciated: Land $ 102,571 $ - $ - $ 102,571 Total capital assets not being depreciated 102,571 - - 102,571 Other capital assets: Buildings and utility infrastructure 1,036,352 - - 1,036,352 Less accumulated depreciation for: Buildings and utility infrastructure 331,446 20,727 - 352,173 Other capital assets, net 704,906 (20,727) - 684,179 M IDA capital assets, net $ 807,477 $ (20,727) $ - $ 786,750 M DRA Balance at Balance at July 1, 2021 Additions Deductions June 30, 2022 MDRA - Discreetly Presented Component unit Other capital assets: Buildings $ 6,500 $ - $ - $ 6,500 M achinery, furniture and equipment 18,756 - - 18,756 Total other capital assets at historical cost 25,256 - - 25,256 Less accumulated depreciation for: Buildings 4,550 - - 4,550 M achinery, furniture and equipment 18,182 2,524 20,706 Total accumulated depreciation 22,732 2,524 - 25,256 Other capital assets, net 2,524 (2,524) - - M DRA capital assets, net $ 2,524 $ (2,524) $ - $ - M IPFA Balance at Balance at July 1, 2021 Additions Deductions June 30, 2022 MIPFA - Discreetly Presented Component unit Capital assets not being depreciated: Land $ 248,221 $ - $ - $ 248,221 Total capital assets not being depreciated 248,221 - - 248,221 Other capital assets: Buildings 570,924 - - 570,924 M achinery, furniture and equipment 185,585 - - 185,585 Total other capital assets at historical cost 756,509 - - 756,509 Less accumulated depreciation for: Buildings 373,629 19,681 - 393,310 M achinery, furniture and equipment 104,435 9,032 - 113,467 Total accumulated depreciation 478,064 28,713 - 506,777 Other capital assets, net 278,445 (28,713) - 249,732 M IPFA capital assets, net $ 526,666 $ (28,713) $ - $ 497,953 46  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 M CFA Balance at Balance at July 1, 2021 Additions Deductions June 30, 2022 MCFA - Discreetly Presented Component unit Other capital assets: Buildings $ 8,851,208 $ - $ - $ 8,851,208 Less accumulated depreciation for: Buildings 1,365,839 246,170 - 1,612,009 Other capital assets, net 7,485,369 (246,170) - 7,239,199 M CFA capital assets, net $ 7,485,369 $ (246,170) $ - $ 7,239,199 8. Internal and Interfund Balances and Transfers Internal and Interfund Balances: The City’s policy is to eliminate interfund receivable and payables between funds in the Statement of Net Position to avoid the grossing up of balances. Only the residual balances due between governmental and business-type activities are reported as internal balances and then offset in the total column. Re ce ivable Fund Payable Fund Amount Nature of Inte rfund Balance General Fund * Airport Fund * $ 1,313 Payroll reimbursement General Fund * MSUA * 86,341 Payroll reimbursement Street and Alley Capital Improvement Fund 38,404 Expense reimbursement Capital Improvement Fund General Fund * 6,657 Reclassification MSUA * Airport Fund * 535 Expense reimbursement MSUA * General Fund * 41,058 Posting correction Airport Fund * General Fund * 30,128 Posting correction Workers Compensation Fund Health Insurance Fund 458,448 deposit to the wrong fund T otal $ 662,884 * Denotes major fund. Due From Due T o Net Internal Reconciliation to Fund Financial Statements: Other Funds Other Funds Balances Governmental Funds $ 132,715 $ (666,473) $ (533,758) Proprietary Funds 71,721 - 71,721 Internal Service Funds 458,448 - 458,448 T otal $ 662,884 $ (666,473) $ (3,589) Reconciliation to Statement of Net Position: Net Internal Balances $ 71,721 Internal Service Fund Activity reported in Business-type Activities 1,176,427 Net Internal Balance $ 1,248,148 Internal and Interfund Transfers: The City’s policy is to eliminate interfund transfers between funds in the Statement of Activities to avoid the grossing up of balances. Only the residual balances transferred between governmental and business- type activities are reported as internal transfers and then offset in the total column. Internal activities between funds and activities for the year ended June 30, 2022 were as follows: 47  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Transfe r In Transfe r O ut Amount Nature of Inte rfund Transfe r General Fund * MSUA $ 8,835,750 Operating subsidy/pledged sales tax Demolition account * MSUA 50,000 Operating subsidy General Fund * Street Project 1,490,133 Pledged sales tax Street and alley * MSUA 500,000 A Operating subsidy Capital Improvement Fund * General Fund 3,151 Operating subsidy Police grant General Fund 4 A Operating subsidy Police grant Grant Fund 117 A,B Operating subsidy General Fund Street and Alley 355 A Operating subsidy General Fund Grant Fund 200 B Grant matching General Fund Summer Recreation Program 227 A Budgeted Summer Recreation Program Street and Alley 25,000 A,B Operating subsidy Grant Fund * MSUA 33,567 A Budgeted MSUA Airport 40,000 Budgeted Airport * General Fund 18 Budgeted Rainy Day Capital Improvement Fund 100,000 B Budgeted MSUA * General Fund 8,325,882 Operating subsidy/pledged sales tax $ 19,404,404 Denotes Major Fund Subtotal non-major Govermental Funds transfers in $ 559,270 A Subtotal non-major Govermental Funds transfers out $ 25,317 B T ransfers to T ransfers from Net Reconciliation to fund financial stateme nts: Other Funds Other Funds T ransfers Governmental Funds $ (8,454,954) $ 10,938,504 $ 2,483,550 Enterprise Funds (10,949,450) 8,465,900 (2,483,550) T otals $ (19,404,404) $ 19,404,404 $ - Reconciliation to Stateme nt of Activitie s: Net T ransfers $ (2,483,550) T ransfer of assets from Governmental Activities to Business T ype Activities 30,215 T ransfers - Internal Activity $ (2,453,335) 9. Long-Term Debt The City’s long term debt consists of revenue bonds and notes, capital lease obligations, accrued compensated absences and long-term deposits subject to refund. For the year ended June 30, 2022, the City’s long-term debt balances changed as follows: Primary Government: Balance Balance Due Within Type of Debt July 1, 2021 Additions Deductions June 30, 2022 One Year Governmental Activities: Revenue Bond Premium $ 165,589 $ - $ 20,277 $ 145,312 $ - Revenue Bonds 17,470,000 - 465,000 17,005,000 475,000 Notes Payable - direct borrowings 773,706 - 157,019 616,687 137,302 Accrued Compensated Absences 655,457 - 28,015 627,442 62,745 Total Governmental Activities $ 19,064,752 $ - $ 670,311 18,394,441 675,047 Plus: Total OPEB liability 1,507,711 - Net pension liability 2,555,621 - $ 22,457,773 $ 675,047 Reconcilation to Statement of Net Position: Due within one year $ 675,047 Due in more than one year 21,782,726 $ 22,457,773 48  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Balance Balance Due Within Type of Debt July 1, 2021 Additions Deductions June 30, 2022 One Year Business-Type Activities: Notes Payable - Direct borrowings $ 4,021,131 $ 1,324,589 $ 1,094,622 $ 4,251,098 $ 1,109,572 Unamortized Bond Premium (Discount) 66,642 30,427 36,215 - Revenue Bonds 7,365,000 - 660,000 6,705,000 465,000 Accrued Compensated Absences 183,758 - 3,296 180,462 17,821 Total Business-Type Activities $ 11,636,531 $ 1,324,589 $ 1,788,345 11,172,775 1,592,393 Plus: Total OPEB liability 884,690 - Net pension liability 54,687 - Refundable deposits 351,015 35,217 $ 12,463,167 $ 1,627,610 Reconcilation to Statement of Net Position: Due within one year $ 1,627,610 Due in more than one year 10,835,557 $ 12,463,167 Governmental activities long-term debt payable from property tax levies or other governmental revenues includes the following: Revenue Bond Payable – 2016 Sales Tax Revenue Bond for $19,375,000 with interest from .45% to 2.375% Debt service payments are due semi-annually through December 2046. Bonds are secured with net revenues of the Special Utility Authority and a pledged sales tax. $17,005,000 Current portion $475,000 Non-current portion 16,530,000 $17,005,000 Notes Payable – Direct Borrowings: $304,491 capital lease obligation for the purchase of fire tanker trucks, matures August 2027 with a stated interest rate of 2.14%. If the City defaults, the collateralized equipment will be returned to the lender. 229,094 $311,328 capital lease obligation for the purchase of police cars, matures August 2027 with a stated interest rate of 2.14%. If the City defaults, the collateralized equipment will be returned to the lender. 234,238 $255,638 capital lease obligation for the purchase of excavator, matures February 2025 with a stated interest rate of 1.67%. If the City defaults, the collateralized equipment will be returned to the lender. 153,355 Total capital lease obligations $616,687 Current portion $137,302 Non-current portion 479,385 $616,687 49  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Business-type activities long-term debt payable from net revenues generated by and taxes pledged to the City’s business-type activities include the following: Revenue Bond Payable – 2018 Utility System Revenue Bond for $8,000,000 with interest from 3.5% to 4.0% Debt service payments are due semi-annually through August 2033. Bonds are secured with net revenues of the Special Utility Authority and a pledged sales tax. $6,705,000 Total Revenue Bonds Payable $6,705,000 Current portion $465,000 Non-current portion 6,240,000 $6,705,000 Notes Payable – Direct Borrowings: 2003A Note payable to Oklahoma Water Resources Board, dated December 31, 2003, original amount $1,760,000 with an annual administration fee of 0.5% due in semi-annual installments, with final payment due December 31, 2023 secured by and payable from utility revenues for sanitation, water, and sewer. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. $132,000 2004A Note payable to Oklahoma Water Resources Board, dated June 25, 2004, original amount $1,595,538 with an annual administration fee of 0.5% due in semi-annual installments, with final payment due June 25, 2024 secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 159,553 2004C Note payable to Oklahoma Water Resources Board, dated October 26, 2004, original Amount $1,620,000 with interest rate of 3.0% and 0.5% annual administrative fee due in semi- annual installments, with final payment due October 26, 2024 secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system. Proceeds used for capital improvement related to water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 320,298 2005 Note payable to Oklahoma Water Resources Board, dated September 15, 2005, original Amount $563,000 with an annual administration fee of 0.5% due in semi-annual installments, with final payment due September 15, 2025 secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system. Proceeds used for capital improvements related to waste water. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 97,420 50  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 2019 Note payable to Oklahoma Water Resources Board, dated July 15, 2019, original amount $1,830,000 with interest rate of 4.2% due in semi-annual installments, secured by and payable from utility revenues for water, sewer, and electric system, with final payment due September 15, 2023. This note is a current refunding of the outstanding portion of the Series 2003B note and the Series 2004B note, proceeds used for capital improvements related to water and sewer systems. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4)file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 915,000 CWSRF Note payable to Oklahoma Water Resources Board, dated September 1, 2019, original amount $4,450,000 with interest rate of 1.24% and 0.5% annual administrative fee due in semi- annual installments, secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system, with final payment due March 15, 2041. Proceeds used for capital improvements related to improvements to the wastewater system. The MUSA has drawn $1,144,862 of the note as of June 30. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 1,022,862 DWSRF Note payable to Oklahoma Water Resources Board, dated May 1, 2020, original amount $2,785,000 with interest rate of 1.51% and 0.5% administrative fee due in semi-annual installments, secured by and payable from utility revenues for water, sewer, and garbage collection and disposal system, with final payment due March 15, 2042. Proceeds used for improvements for the drinking water treatment system drinking water project. The MUSA has drawn $1,559,345 of the note as of June 30. In the event of default on the OWRB loans, the lender may: 1) file suit for specific performance of covenants contained in the agreement; 2) accelerate maturity; 3) gain control of operations through temporary trustees; or 4) file suit to enforce or enjoin action in action of parties under provisions of the indenture, security agreement or lease agreement. 1,459,344 $369,500 note payable for the purchase of a refuse truck, matures February 2023 with a stated interest rate of 1.50%. If the Authority defaults, the collateralized equipment will be returned to the lender. 123,158 $285,663 note payable for the purchase of a digger derrick truck, matures July 2021 with a stated interest rate of 1.95%. If the Authority defaults, the collateralized equipment will be returned to the lender. 16,553 $95,994 note payable for the purchase of a truck for water, matures August 2022 with a stated interest rate of 2.99%. If the Authority defaults, the collateralized equipment will be returned to the lender. 4,910 Total Notes Payable – Direct Borrowings $4,251,098 Current portion $1,109,572 Non-current portion 3,141,526 $4,251,098 51  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Long-term debt service requirements to maturity are as follows: Governmental-Type Activities Revenue Bonds Payable Notes Payable - Direct Borrowings Year Ending June 30, Principal Interest Principal Interest 2023 $ 475,000 $ 518,788 $ 137,302 $ 10,338 2024 485,000 509,188 140,023 7,617 2025 495,000 499,387 142,798 4,843 2026 505,000 489,388 92,794 2,012 2027 515,000 479,188 93,383 1,424 2028-2032 1,610,000 2,244,606 10,387 43 2033-2037 4,435,000 2,099,550 - - 2038-2042 3,925,000 1,242,375 - - 2043-2047 4,560,000 641,250 - - Total $ 17,005,000 $ 8,723,720 $ 616,687 $ 26,277 Business-Type Activities Notes Payable-Direct Borrowings Revenue Bonds Payable Year Ending June 30, Principal Interest Principal Interest 2023 $ 1,109,572 $ 150,504 $ 465,000 $ 221,325 2024 1,229,897 124,340 485,000 202,725 2025 1,021,086 102,480 500,000 188,175 2026 345,336 89,012 515,000 173,175 2027 303,250 84,358 530,000 157,725 2028-2032 1,567,250 345,537 2,905,000 531,725 2033-2037 1,666,250 211,760 1,305,000 68,950 2038-2042 1,639,250 71,299 - - Amount to be drawn (4,630,793) - - - Total $ 4,251,098 $ 1,179,290 $ 6,705,000 $ 1,543,800 MDRA Debt: Balance Balance Due Within Type of Debt July 1, 2021 Additions Deductions June 30, 2022 One Year Component Unit: Accrued Compensated Absences $ 2,927 $ 281 $ - $ 3,208 $ 321 Total MDRA $ 2,927 $ 281 $ - $ 3,208 $ 321 MIDA Debt (direct borrowings): The MIDA issued the 2005 note payable to the Miami Area Economic Development Services, Inc, payable in monthly Installments of $3,300 with interest at 5.00% maturity date of February 1, 2020 $114,368 The MIDA issued the 2005 note payable to the Miami Area Economic Development Services, Inc, payable in monthly Installments of $1,918, with interest of 1.25%, maturity date of February 1, 2020 71,452 52  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 The MIDA issued the 2005 note payable to the Miami Area Economic Development Services, Inc. payable in monthly Installments of $607, with interest of 4.00%, maturity date of February 1, 2020 21,627 Total debt outstanding – MIDA $207,447 Balance Balance Due Within Type of Debt August 1, 2021 Additions Deductions July 31, 2022 One Year Component Unit: MIDA Note payable (direct borrowings) $ 278,661 $ - $ 71,214 $ 207,447 $ 207,447 Component Unit - MIDA Notes Payable - direct borrowing Year Ending June 30, Principal Interest 2023 $ 207,447 - Total $ 207,447 $ - Pledge of Future Revenues Utility Net Revenues Pledge - The City and Special Utility Authority have pledged net utility revenues of the water, electric and wastewater systems to repay the OWRB Series 2003A, 2004A, 2004C, 2005, and 2019 promissory notes payable. Proceeds from the notes provided financing for capital assets. The notes are payable from net utility revenues and are payable through 2025. The total principal and interest payable for the remainder of the life of these notes is $1,665,491. The 2019 note refinanced the 2003B and 2004 B notes. Net utility revenues received in the current year were $8,087,413. Debt service payments of $885,951 for the current fiscal year were 11% of pledged net utility revenues. Pledged Sales Tax – The City has pledged 3.65 cents (or 100%) of future sales tax revenues to repay $1,915,000 of the Series 2011 Revenue Bonds, $19,375,000 of the Series 2016 Sales Tax Revenue Refunding Bonds, and 8,000,000 of the Series 2018 Revenue Bonds. Three cents of the sales tax was voted by the citizens for general operations and .65 cent is legally restricted by a vote of the citizens for street and stadium purposes. The 2011 Revenue bonds are for water improvements. The 2016 bonds refinanced the 2010 bonds that were originally for street purposes and the 2013 bond anticipation note for the stadium construction. The .65 sales tax is used to pay the debt service on the 2016 bonds and the three cents is sent back to the general fund if not needed for debt service. The bonds are payable from pledged sales tax and net utility revenues and are payable through 2021, 2046 and 2033, respectively. The total principal and interest payable for the remainder of the life of these bonds is $33,977,519. Pledged sales taxes received in the current year were $8,325,882. Net revenues and sales tax pledged during the year was $16,415,984. Debt service payments of $1,900,558 for the current fiscal year were 11.6% of the pledged revenue. 10. Net Position and Fund Balances Government-wide net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvements of those assets. 53  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 b. Restricted net position - Consists of net position with constraints placed on the use either by 1) external groups such as creditors, grantors, contributors, or laws and regulations of other governments, or 2) law through constitutional provisions or enabling legislation. c. Unrestricted net position - All other net position that does not meet the definition of “restricted” or “net investment in capital assets.” It is the City’s policy to first use restricted net position prior to the use of unrestricted net position when an expense is incurred for purposes for which both restricted and unrestricted net position are available. At June 30, 2022 net position restricted by enabling legislation totaled $286,075. Fund Balance: Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned and unassigned. These classifications are defined as: a. Nonspendable – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. b. Restricted – consists of fund balance with constraints placed on the use of resources either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or (2) laws through constitutional provisions or enabling legislation. c. Committed – included amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the city’s highest level of decision-making authority. The City’s highest level of decision-making authority is made by ordinance. d. Assigned – includes amounts that are constrained by the city’s intent to be used for specific purposes but are neither restricted nor committed. Assignments of fund balance may be made by city council action or management decision (city manager) when the city council has delegated that authority. Assignments for revenues in other governmental funds are made through budgetary process. e. Unassigned – represents fund balance that has not been assigned to other funds and has not been restricted, committed, or assigned to specific purposes within the General Fund. The City’s policy for the use of fund balance amounts require that committed amounts would be reduced first followed by assigned amounts and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. The following table shows the fund balance classifications as shown on the Governmental Funds Balance Sheet: 54  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Major Capital Project Fund Other General Capital Governmental Fund Improvement Fund Fund Total Fund Balance: Restricted For: Police operations - grants $ - $ - $ 136,096 $ 136,096 General obligation debt service - - 509,767 509,767 Capital improvements - - 126,339 126,339 Street improvements - - 1,100,654 1,100,654 Culture and rec programs - - 367,867 367,867 Economic development - - 91,716 91,716 Grant fund 1,089,550 1,089,550 Police - drug programs - - 25,480 25,480 Sub-total restricted - - 3,447,469 3,447,469 Committed for: Street operations - - 271,236 271,236 Assigned for: Capital improvements - 813,135 - 813,135 Demolition 285,882 - - 285,882 Culture and rec programs - - - - Supplement next year's budget 3,386,074 - - 3,386,074 Sub-total assigned 3,671,956 813,135 - 4,485,091 Unassigned: 992,034 - - 992,034 TOTAL FUND BALANCE $ 4,663,990 $ 813,135 $ 3,718,705 $ 9,195,830 12. Revenues Program Revenues: Program revenues within the statement of activities that are derived directly from each activity or from parties outside of the City’s taxpayers are reported as program revenues. The City has the following program revenues in each activity:  Public Safety – Fire, Police, Court, Civil Defense, fire run charges, police sentinel charges for services, restricted operating grants, 911 revenue, court and restricted capital grants  Streets – Commercial vehicle and gasoline excise tax shared by the State  Culture and recreation –pool fees, library fees, fishing permits, recreation fees, operating and capital grants  General Government – license and permits, fines, cemetery revenue, and operating grants  Economic Development – rents, operating grants All other governmental revenues are reported as general. All taxes are classified as general revenue even if restricted for a specific purpose. Sales Tax Revenue: Sales tax revenue represents a 3.65 cents tax on each dollar of taxable sales of which is collected by the Oklahoma Tax Commission and remitted to the City. The sales tax is deposited 3 cents in the general fund and .65 cents in the Street and Stadium Bond Project Fund. The entire sales tax initially reported in the General Fund is then transferred to the MSUA per the bond indenture pledge then transferred back to 55  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 the appropriate funds. The .65 cents is legally restricted for street and stadium purposes by a vote of the citizens. Property Tax Revenue: In accordance with state law, a municipality may only levy a property tax to retire general obligation debt approved by the voters and to pay judgments rendered against the City. The City’s property taxes are billed and collected by the County and remitted to the City. Property taxes levied by the City are billed and collected by the County Treasurer's Office and remitted to the City in the month following collection. Property taxes are levied normally in October and are due in equal installments on December 31 and March 31. Property taxes unpaid for the fiscal year are attached by an enforceable lien on property in the following October. For the year ended June 30, 2022, the City did not assess a property tax. 13. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; injuries to employees; employee health and life; and natural disasters. The City manages these various risks of loss as follows:  General Liability – Covered through purchased insurance  Physical Property – Covered through purchased insurance with a $35,000 deductible.  Workers’ Compensation – Workers’ compensation is covered through self-insurance using a third party processor to process claims. The City also has a stop-loss policy which covers individual claims in excess $550,000 for all classes of employees per occurrence.  Employee’s Group Medical –Covered through self-insurance using a third party processor to process medical claims. The City uses the third party processor’s estimates to record group insurance claims payable. The City also has a stop-loss policy which covers individual claims in excess of $75,000.  Unemployment – the City is self-insured. Management believes the insurance coverage listed above is sufficient to preclude any significant uninsured losses to the City. Settled claims have not exceeded this insurance coverage in any of the past two fiscal years. Worker's Health Unemployment Compensation Care Fund Total Claim liability, June 30, 2020 $ 503,243 $ 107,697 $ 13,886 $ 624,826 Claims and changes in estimates 471,680 750,341 6,075 1,228,096 Claims payments (642,143) (374,054) (17,749) (1,033,946) Claim liability, June 30, 2021 332,780 483,984 2,212 818,976 Claims and changes in estimates 1,109,891 2,163,138 6,295 3,279,324 Claims payments (908,090) (2,506,367) (8,507) (3,422,964) Claim liability, June 30, 2022 $ 534,581 $ 140,755 $ - $ 675,336 14. Retirement Plan Participation The following is a summary of the deferred outflows, deferred inflows and net pension liability by the various plans as of June 30, 2022: 56  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Governmental Business Type Total Deferred Outflows: Police Pension $ 243,478 $ - $ 243,478 Fire Pension 1,144,046 - 1,144,046 OkMRF 448,150 470,025 918,175 Total $ 1,835,674 $ 470,025 $ 2,305,699 Deferred Inflows: Police Pension $ 1,412,113 $ - $ 1,412,113 Fire Pension 2,319,536 - 2,319,536 OkMRF 1,182,800 1,312,331 2,495,131 Total $ 4,914,449 $ 1,312,331 $ 6,226,780 Net Pension Liability: Fire Pension $ 2,505,890 $ - $ 2,505,890 OkMRF 49,731 54,687 104,418 Total $ 2,555,621 $ 54,687 $ 2,610,308 Net Pension Asset: Police Pension $ 1,830,509 $ - $ 1,830,509 Total $ 1,830,509 $ - $ 1,830,509 Summary of Significant Accounting Policies For purposes of measuring the net pension asset, net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Oklahoma Firefighters Pension & Retirement System (OFPRS), Oklahoma Police Pension & Retirement System (OPPRS) and Oklahoma Municipal Retirement Fund (OkMRF) and additions to/deductions from OFPRS, OPPRS and OkMRF’s fiduciary net position have been determined on the same basis as they are reported by OFPRS, OPPRS and OkMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments held by these funds are reported at fair value. For purposes of measuring the total OPEB liability, deferred outflows of resources, and deferred inflows and OPEB expense for the single employer other postemployment benefit plan the measurement has been prepared in accordance with GASB Statement No. 75. Oklahoma Municipal Retirement Plan (OkMRF) – Defined Benefit Plan A. Plan Description The City contributes to the OkMRF for all eligible employees except for those covered by the Police and Firefighter Pension Systems. The plan is an agent multiple employer - defined benefit plan administered by OkMRF. The OkMRF plan issues a separate financial report and can be obtained from OkMRF or from their website: www.okmrf.org/reports.html. Benefits are established or amended by the City Council in accordance with O.S. Title 11, Section 48-101-102. 57  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 B. Eligibility Factors and Benefit Provisions As of 07/01/21 Provision OkMRF Plan a. Eligible to participate Full-time employees except police, firefighters and other employees who are covered under an approved system. b. Period Required to Vest 7 years of credited service beginning September 1, 2019 c. Eligibility for Distribution -Normal retirement at age 65 with 7 years of service -Early retirement at age 55 with 7 years of service -Disability retirement upon disability with 7 years of vesting (20 years of service) -Death benefit with 10 years of service for married employees d. Benefit Determination Base Final average salary - the average of the five highest consecutive annual salaries out of the last 10 calendar years of service e. Benefit Determination Methods: Normal Retirement -1.875% of final average salary multiplied by credited years of service Early Retirement -Actuarially reduced benefit based upon age, final average salary, and years of service at termination Disability Retirement -Same as normal retirement Death Benefit -50% of employees accrued interest benefit, payable to spouse until death or spouse re- marriage. If not married, benefit is payable for 10 year certain Prior to 7 Years’ Service -Return of employee contribution and interest f. Benefit Authorization -Benefits are established and amended by City Council adoption of an ordinance in accordance with O.S. Title, 11, Section 48-101-102 g. Form of Benefit Payments Normal form is a 10 year or 120 months certain and life thereafter basis. Employee may elect, with City consent, option form based on actuarial equivalent. C. Employees Covered by Benefit Terms Active Employees 117 Deferred Vested Former Employees 16 Retirees or Retiree Beneficiaries 83 Total 216 58  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Contribution Requirements The City Council has the authority to set and amend contribution rates by ordinance for the OkMRF defined benefit plan in accordance with O.S. Title 11, Section 48-102. The contribution rates for the current fiscal year have been made in accordance with an actuarially determined rate. The actuarially determined rate is 9.45% of covered payroll as of July 1, 2021. For the year ended June 30, 2022, the City recognized $730,002 of employer contributions to the plan which is in excess of the actuarially determined amount by $209,752 based on covered payroll of $5,505,289. Employees contribute 3.75% to the plan in accordance with the plan provisions adopted by the City Council. Employee contributions for fiscal 2022 were $198,934. Actuarial Assumptions Date of Last Actuarial Valuation July 1, 2021 a. Actuarial cost method Entry age normal b. Rate of Return on Investments and Discount Rate 7.50% c. Projected Salary Increase Varies between 7.42% and 4% based on age d. Post Retirement cost-of-Living Increase None e. Inflation Rate 2.75% f. Mortality Table UP 1994, with projected mortality improvement g. Percent of married employees 100% h. Spouse age difference 3 years (female spouses younger) i. Turnover Select and ultimate rates Ultimate rates are age-related as shown Additional rates per thousand are added during the first 5 years: Year 1: 225 Year 2: 140 Year 3: 100 Year 4: 70 Year 5: 40 j. Date of last experience study September 2012 for fiscal years 2007 thru 2011 59  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 D. Discount Rate – The discount rate used to value benefits was the long-term expected rate of return on plan investments of 7.50% since the plan’s net fiduciary position is projected to be sufficient to make projected benefit payments. The City has adopted a funding method that is designed to fund all benefits payable to participants over the course of their working careers. Any differences between actual and expected experience are funded over a fixed period to ensure all funds necessary to pay benefits have been contributed to the trust before those benefits are payable. Thus, the sufficiency of pension plan assets was made without a separate projection of cash flows. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation (2.75%). Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of July 1, 2020 are summarized in the following table: Target Real Weighted Allocation Return Return Large cap stocks 25% 5.80% 1.45% S&P 500 Small/mid cap stocks 10% 6.40% 0.64% Russell 2500 Long/short equity 10% 5.00% 0.50% MSCI ACWI International stocks 20% 6.20% 1.24% MSCI EAFE Fixed income bonds 30% 2.30% 0.69% Barclay's Capital Aggregate Real estate 5% 4.60% 0.23% NCREIF Cash equivalents 0% 0.00% 0.00% 3 month Treasury TOTAL 100% Average Real Return 4.75% Inflation 2.75% Long-term expected return 7.50% E. Changes in Net Pension Liability – The total pension liability was determined based on an actuarial valuation performed as of July 1, 2021 which is also the measurement date. There were no changes in assumptions or changes in benefit terms that affected measurement of the total pension liability. There were also no changes between the measurement date of July 1, 2021 and the City’s report ending date of June 30, 2022, that would have had a significant 60  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 impact on the net pension liability. The following table reports the components of changes in net pension liability: Increase (Decrease) Total Pension Plan Net Net Pension Liability Position Liability (a) (b) (a) - (b) Balances Beginning of Year $ 14,976,088 $ 11,629,624 $ 3,346,464 Changes for the Year: Service cost 390,061 - 390,061 Interest expense 1,085,829 - 1,085,829 Experience losses (gains) - (643,221) - (643,221) (amortized over avg remain svc period of actives & inactive) Changes of assumptions - - - Contributions--City - 697,806 (697,806) Contributions--members - 197,343 (197,343) Net investment income - 3,203,292 (3,203,292) Benefits paid (1,015,092) (1,015,092) - Plan administrative expenses - (23,726) 23,726 Benefit changes due to plan amendments - - - Change in deferred contributions made subsequent to the measurement date - - - Net Changes (182,423) 3,059,623 (3,242,046) Balances End of Year $ 14,793,665 $ 14,689,247 $ 104,418 Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the City, calculated using the discount rate of 7.50 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage-point higher (8.50 percent) than the current rate: 1% Current 1% Decrease Discount Increase (6.50%) Rate (7.50%) (8.50%) Net Pension Liability $ 1,890,923 $ 104,418 $ (1,368,183) The City reported ($397,981) in pension expense for the year ended June 30, 2022. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 759,981 Net difference between projected and actual earnings - 1,611,766 Changes in assumptions 66,031 - Changes in proportion and differences between City contributions and proportionate share of contributions 104,486 104,486 City contributions during measurement date 17,656 18,898 City contributions subsequent to the measurement date 730,002 - Total $ 918,175 $ 2,495,131 The $730,002 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Any other amounts reported as deferred 61  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2023 $ (668,380) 2024 (583,868) 2025 (564,171) 2026 (490,539) 2027 - $ (2,306,958) Oklahoma Firefighter’s Pension – Statewide Cost Sharing Plan Plan description - The City of Miami, as the employer, participates in the Firefighters Pension & retirement—a cost-sharing multiple-employer defined benefit pension plan administered by the Oklahoma Firefighters Pension & Retirement System (FPRS). Title 11 of the Oklahoma State Statutes grants the authority to establish and amend the benefit terms to the FPRS. FPRS issues a publicly available financial report that can be obtained at www.ok.gov/fprs Benefits provided - FPRS provides defined retirement benefits based on members’ final average compensation, age, and term of service. In addition, the retirement program provides for benefits upon disability and to survivors upon death of eligible members. The Plan’s benefits are established and amended by Oklahoma statute. Retirement provisions are as follows: Normal Retirement:  Hired Prior to November 1, 2013 Normal retirement is attained upon completing 20 years of service. The normal retirement benefit is equal to 50% of the member’s final average compensation. Final average compensation is defined as the monthly average of the highest 30 consecutive months of the last 60 months of participating service. For volunteer firefighters, the monthly pension benefit for normal retirement is $150.60 per month.  Hired After November 1, 2013 Normal retirement is attained upon completing 22 years of service. The normal retirement benefit is equal to 55% of the member’s final average compensation. Final average compensation is defined as the monthly average of the highest 30 consecutive months of the last 60 months of participating service. Also participants must be age 50 to begin receiving benefits. For volunteer firefighters, the monthly pension benefit for normal retirement is $165.66 per month. All firefighters are eligible for immediate disability benefits. For paid firefighters, the disability in-the-line- of-duty benefit for firefighters with less than 20 years of service is equal to 50% of final average monthly compensation, based on the most recent 30 months of service. For firefighters with over 20 years of service, a disability in the line of duty is calculated based on 2.5% of final average monthly compensation, based on the most recent 30 months, per year of service, with a maximum of 30 years of service. For disabilities not in the line of duty, the benefit is limited to only those with less than 20 years of service and is 50% of final average monthly compensation, based on the most recent 60-month salary as opposed to 30 months. 62  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 For volunteer firefighters, the not-in-the-line-of-duty disability is also limited to only those with less than 20 years of service and is $7.53 per year of service. For volunteer firefighters, the in-the-line-of-duty pension is $150.60 with less than 20 years of service or $7.53 per year of service, with a maximum of 30 years. A $5,000 lump sum death benefit is payable to the qualified spouse or designated recipient upon the participant’s death. The $5,000 death benefit does not apply to members electing the vested benefit. Contributions - The contributions requirements of the Plan are at an established rate determined by Oklahoma Statute and are not based on actuarial calculations. Employees are required to contribute 9% percent of their annual pay. Participating cities are required to contribute 14% of the employees’ annual pay. Contributions to the pension plan from the City were $175,750. The State of Oklahoma also made on- behalf contributions to FPRS in the amount of $376.133 during the calendar year and this is reported as both expense and revenue in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $277,480. These on-behalf payments did not meet the criteria of a special funding situation. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2022, the City reported a liability of $2,505,890 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 July 1, 2021. The City’s proportion of the net pension liability was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for all participating employers as of June 30, 2021. Based upon this information, the City’s proportion was .3805%. For the year ended June 30, 2022, the City recognized pension expense of ($95,760). At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 908,829 $ 44,008 Changes of assumptions - 55,580 Net difference between projected and actual earnings on pension plan investments - 1,992,075 Changes in proportion 58,889 225,672 Contributions during the measurement date 578 2,201 Contributions subsequent to the measurement date 175,750 - Total $ 1,144,046 $ 2,319,536 In the year ending June 30, 2022, $175,750 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 63  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Year ended June 30: 2023 $ (252,877) 2024 (307,768) 2025 (323,647) 2026 (466,948) 2027 - Total $ (1,351,240) Actuarial Assumptions- The total pension liability was determined by an actuarial valuation as of July 1, 2021, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 2.75% to 10.5% average, including inflation Investment rate of return: 7 .5% net of pension plan investment expense Mortality rates were based on the Pub-2010 Public Safety Table, with adjustments for generational mortality improvement using scale MP-2018 for healthy lives and no mortality improvement for disabled lives. The actuarial assumptions used in the July 1, 2021, valuation were based on the results of an actuarial experience study for the period July 1, 2013, to June 30, 2018. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2021, are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Fixed income 20% 3.53% Domestic equity 47% 5.73% International equity 15% 8.50% Real estate 10% 7.97% Other assets 8% 4.73% Discount Rate- The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at contractually required rates, determined by State statutes. Projected cash flows also assume the State of Oklahoma will continue contributing 36% of the insurance premium, as established by statute. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 64  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Sensitivity of the Net Pension Liability to Changes in the Discount Rate-The following presents the net pension liability of the employers calculated using the discount rate of 7.5%, as well as what the Plan's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.5%) or 1-percentage-point higher (8.5%) than the current rate: 1% Decrease Current Discount 1% Increase (6.5%) Rate (7.5%) (8.5%) Employers' net pension liability $ 3,915,971 $ 2,505,890 $ 1,325,363 Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position is available in the separately issued financial report of the FPRS; which can be located at www.ok.gov/fprs. Oklahoma Police Pension – Statewide Cost Sharing Plan Plan description - The City of Miami, as the employer, participates in the Oklahoma Police Pension and Retirement Plan—a cost-sharing multiple-employer defined benefit pension plan administered by the Oklahoma Police Pension and Retirement System (OPPRS). Title 11 of the Oklahoma State Statutes, through the Oklahoma Legislature, grants the authority to establish and amend the benefit terms to the OPPRS. OPPRS issues a publicly available financial report that can be obtained at www.ok.gov/OPPRS Benefits provided - OPPRS provides retirement, disability, and death benefits to members of the plan. The normal retirement date under the Plan is the date upon which the participant completes 20 years of credited service, regardless of age. Participants become vested upon completing 10 years of credited service as a contributing participant of the Plan. No vesting occurs prior to completing 10 years of credited service. Participants’ contributions are refundable, without interest, upon termination prior to normal retirement. Participants who have completed 10 years of credited service may elect a vested benefit in lieu of having their accumulated contributions refunded. If the vested benefit is elected, the participant is entitled to a monthly retirement benefit commencing on the date the participant reaches 50 years of age or the date the participant would have had 20 years of credited service had employment continued uninterrupted, whichever is later. Monthly retirement benefits are calculated at 2.5% of the final average salary (defined as the average paid base salary of the officer over the highest 30 consecutive months of the last 60 months of credited service) multiplied by the years of credited service, with a maximum of 30 years of credited service considered. Monthly benefits for participants due to permanent disability incurred in the line of duty are 2.5% of the participants’ final average salary multiplied by 20 years. This disability benefit is reduced by stated percentages for partial disability based on the percentage of impairment. After 10 years of credited service, participants who retire due to disability incurred from any cause are eligible for a monthly benefit based on 2.5% of their final average salary multiplied by the years of service. This disability benefit is also reduced by stated percentages for partial disability based on the percentage of impairment. Effective July 1, 1998, once a disability benefit is granted to a participant, that participant is no longer allowed to apply for an increase in the dollar amount of the benefit at a subsequent date. Survivor’s benefits are payable in full to the participant’s beneficiary upon the death of a retired participant. The beneficiary of any active participant killed in the line of duty is entitled to a pension benefit. 65  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Contributions - The contributions requirements of the Plan are at an established rate determine by Oklahoma Statute and are not based on actuarial calculations. Employees are required to contribute 8% percent of their annual pay. Participating cities are required to contribute 13% of the employees’ annual pay. Contributions to the pension plan from the City were $179,746. The State of Oklahoma also made on- behalf contributions to OPPRS in the amount of $153,825 during the calendar year and this is reported as both expense and revenue in the General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. In the government-wide Statement of Activities, revenue is recognized for the state’s on-behalf contributions on an accrual basis of $108,247. These on-behalf payments did not meet the criteria of a special funding situation. Pension Liabilities (Asset), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2022, the City reported an asset of $1,830,509 for its proportionate share of the net pension asset. The net pension asset was measured as of June 30, 2021, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of July 1, 2021. The City’s proportion of the net pension asset was based on the City’s contributions received by the pension plan relative to the total contributions received by pension plan for all participating employers as of June 30, 2021. Based upon this information, the City’s proportion was .3816%. For the year ended June 30, 2022, the City recognized pension expense of ($183,388). At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 26,282 $ 72,250 Changes of assumptions 27,836 - Net difference between projected and actual earnings on pension plan investments - 1,335,295 Changes in proportion 7,312 2,269 Contributions during measurement date 2,302 2,299 Contributions subsequent to the measurement date 179,746 - Total $ 243,478 $ 1,412,113 In the year ending June 30, 2023, $179,746 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2023 $ (305,481) 2024 (265,707) 2025 (336,454) 2026 (444,144) 2027 3,405 Total $ (1,348,381) 66  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Actuarial Assumptions-The total pension asset was determined by an actuarial valuation as of July 1, 2021, using the following actuarial assumptions, applied to all prior periods included in the measurement: Inflation: 2.75% Salary increases: 3.5% to 12% average, including inflation Investment rate of return: 7.5% net of pension plan investment expense Cost-of-living adjustments: Police officers eligible to receive increased benefits according to repealed Section 50-120 of Title 11 of the Oklahoma Statutes pursuant to a court order receive an adjustment of 1/3 to 1/2 of the increase or decrease of any adjustment to the base salary of a regular police officer, based on an increase in base salary of 3.5% (wage inflation). Mortality rates: Active employees (pre-retirement) RP-2000 Blue Collar Healthy Combined table with age set back 4 years with fully generational improvement using Scale AA. Active employees (post-retirement) and nondisabled pensioners: RP- 2000 Blue Collar Healthy Combined table with fully generational improvement using scale AA. Disabled pensioners: RP-2000 Blue Collar Healthy Combined table with age set forward 4 years. The actuarial assumptions used in the July 1, 2021, valuation were based on the results of an actuarial experience study for the period July 1, 2012, to June 30, 2017. The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2021, are summarized in the following table: Long-Term Expected Asset Class Real Rate of Return Fixed income 3.22% Domestic equity 4.55% International equity 8.50% Real estate 7.97% Private Equity 9.36% Commodities 0.00% 67  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 The current allocation policy is that approximately 60% of assets in equity instruments, including public equity, long-short hedge, venture capital, and private equity strategies; approximately 25% of assets in fixed income to include investment grade bonds, high yield and non-dollar denominated bonds, convertible bonds, and low volatility hedge fund strategies; and 15% of assets in real assets to include real estate, commodities, and other strategies. Discount Rate-The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at contractually required rates, determined by State statutes. Projected cash flows also assume the State of Oklahoma will continue contributing 14% of the insurance premium, as established by statute. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability(Asset) to Changes in the Discount Rate- The following presents the net pension liability (asset) of the employers calculated using the discount rate of 7.5%, as well as what the Plan's net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower (6.5%) or 1-percentage-point higher (8.5%) than the current rate: 1% Decrease Current Discount 1% Increase (6.5%) Rate (7.5%) (8.5%) Employers' net pension liability (asset) $ (686,496) $ (1,830,509) $ (2,797,858) Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position is available in the separately issued financial report of the OPPRS; which can be located at www.ok.gov/OPPRS . City of Miami 457 Deferred Compensation Plan (DC Plan) Plan Description – The City of Miami makes available to all full-time employees two Section 457 deferred compensation plans. The DC Plan was created in accordance with Section 457 of the Internal Revenue Code, and permits the employees to defer a portion of their salary until future years. The deferred compensation is not available to the employee until retirement, termination, death, or unforeseeable emergency. Employees may choose investments offered by International City/County Management Association (ICMA) or the DC Plan. Separate audited financial statements are not available. Funding Policy – DC Plan participants may contribute up to $15,000 of eligible compensation per year. During the year ended June 30, 2022, employees contributed $102,223 and the employer contributed $0 to the DC Plan. ICMA Retirement Deferred Compensation Plan In addition to the above plans, the City of Miami offers a retirement plan through ICMA which is funded 18% by the employer and zero percent by employee contributions. There were no contributions to the plan for the fiscal year ended June 30, 2022. Separate audited financial statements are not available. 68  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 15. Postemployment Healthcare Plan Plan Description. The City sponsors Medical, Rx, and Dental insurance to qualifying retirees and their dependents. Coverage is provided through fully-insured arrangements that collectively operate as a substantive single-employer defined benefit plan. A substantive plan is one in which the plan terms are understood by the employer and the plan members. This understanding is based on communication between the employer and the plan member and historical pattern of practice with regard to the sharing of benefit costs. Qualifying retirees are those employees who are eligible for immediate disability or retirement benefits under the Oklahoma Police Pension and Retirement System, Oklahoma Firefighter’s Pension and Retirement System, or the City of Miami Retirement Plan. Retirees may continue coverage with the City by paying the carrier premium rate. Coverage is available for retirees and their spouses until they reach age 65 or qualify for Medicare. Authority to establish and amend benefit provisions rest with the City Council. Retirees may continue coverage with the City by paying the premium rate. Benefits are paid from general operating assets of the City. Benefits provided - The Plan covers all current retirees of the City who elected postretirement medical coverage through the City Health Plan and future retired employees of the City fully self-insured health plan. In accordance with administrative policy, the benefit levels are the same as those afforded to active employees; this creates an implicit rate subsidy. The benefits offered by the City to retirees include health and prescription drug benefits. The retiree retains coverage with the City, by making an election within 30 days of termination of service and have 20+ years of creditable service in with the City. The amount of benefit payments during fiscal year June 30, 2022 were $90,502. Employees Covered by Benefit Terms Active Employees 171 Inactive or beneficiaries receiving benefits 8 Total 179 Total OPEB Liability – The total OPEB liability was determined based on an alternative measurement method valuation performed as of June 30, 2021 which is also the measurement date. Actuarial Assumptions- The total OPEB liability in the June 30, 2021 valuation, was determined using the following actuarial assumptions:  Actuarial Cost Method - Entry Age  Discount Rate – 2.21% based on the 20 year municipal bond yield  Retirement Age – Civilians - 55 with 10 years of service, Police and Fire 20 years of service  Medical Trend Rates: 2025 5.86% 2030 5.99% 2035 5.87% 2040 5.33% 2045 5.15% 2050 5.03% 2060 4.87% 69  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Changes in Total OPEB Liability - Total OPEB Liability Balances at Beginning of Year $ 2,482,105 Changes for the Year: Service cost 182,230 Interest expense 54,855 Change of benefit terms 107,385 Change in assumptions (42,145) Difference between expected and actual experience (301,527) Benefits paid (90,502) Net Changes (89,704) Balances End of Year $ 2,392,401 OPEB Liabilities, OPEB Expense, and Deferred Outflows or Resources and Deferred Inflows of Resources Related to OPEB - For the year ended June 30, 2022, the City recognized OPEB expense of $82,341. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $ 688,673 Changes of assumptions - 593,841 Changes in proportion 385,368 383,292 City Contributions during measurement date 10,452 10,513 Benefits paid subsequent to the measurement date 79,782 - Total $ 475,602 $ 1,676,319 In the year ending June 30, 2022, $79,782 reported as deferred outflows of resources related to pensions resulting from City benefits paid subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the subsequent year. Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended June 30: 2022 $ (262,129) 2023 (262,129) 2024 (248,527) 2025 (207,507) 2026 (161,729) Thereafter (138,478) $ (1,280,499) Sensitivity of the City’s total OPEB liability to changes in the discount rate- The following presents the City’s total OPEB liability, as well as what the City’s proportionate share of the total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.21 percent) or 1- percentage- point higher (3.21 percent) than the current discount rate: 70  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Current Discount Rate 1% Decrease ( 1.16%) (2.16%) 1% Increase (3.16%) Employers' total OPEB liability $ 2,679,915 $ 2,392,401 $ 2,137,989 Sensitivity of the City’s total OPEB liability to changes in the healthcare cost trend rates - The following presents the City’s total OPEB liability, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (4.99 percent decreasing to 3.87 percent) or 1- percentage point higher (6.99 percent decreasing to 5.87 percent) than the current healthcare cost trend rates: Current Discount Rate 1% Decrease (4.96% (5.96% decreasing to 1% Increase (6.96% decreasing to 3.87%) 4.87%) decreasing to 5.87%) Employers' total OPEB liability $ 2,087,135 $ 2,392,401 $ 2,758,393 15. Commitments and Contingencies Litigation The City is a party to various legal proceedings which normally occur in the course of governmental operations. The financial statements do not include accruals or provisions for loss contingencies that may result from these proceedings. State statutes provide for the levy of an ad valorem tax over a three-year period by a City Sinking Fund for the payment of any court assessed judgment rendered against the City. While the outcome of the above noted proceedings cannot be predicted, due to the insurance coverage maintained by the City and the State statute relating to judgments, the City feels that any settlement or judgment not covered by insurance would not have a material adverse effect on the financial condition of the City. Grant Programs The City of Miami participates in various federal or state grant/loan programs from year to year. In 2022, the City’s involvement in federal and state award programs was relatively immaterial. The grant/loan programs are often subject to additional audits by agents of the granting or loaning agency, the purpose of which is to ensure compliance with the specific conditions of the grant or loan. The City has not been notified of any noncompliance with federal or state award requirements. Any liability for reimbursement which may arise as a result of these audits cannot be reasonably determined at this time, although it is believed the amount, if any, would not be material. Pensacola Dam Licensing The City has experienced flooding at various degrees for many years which the City asserts has been aggravated by operational changes at a nearby lake. The City contends that the instances of flooding have increased because the quasi-governmental agency that operates the Pensacola Dam that forms Grand Lake (and its hydroelectric operations), the Grand River Dam Authority (GRDA), has been granted permission to raise lake levels by the Federal Energy Regulatory Commission (FERC), which licenses GRDA to operate the dam. 71  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 FERC has notified the City that the appropriate time to address these problems is at the time the operational license for the dam is renewed in 2022. That process started in 2018 and could potentially take over five years to complete. The City has engaged legal counsel to represent its interest during the relicensing process and to require GRDA to modify its lake operations to reduce instances of flooding and to purchase flood easements. Asset Retirement Obligation The City has incurred certain asset retirement obligations related to the operation of its wastewater utility system. The estimated liability of the legally required closure costs for the wastewater utility system cannot be reasonably estimated as of June 30, 2022, since the specific legally required costs of retirement have not yet been identified. The City anticipates identifying those specific legally required costs and obtaining an estimate of those costs in a subsequent fiscal year. GRDA Winter Storm In February 2021, the State of Oklahoma experienced a major winter storm, Uri, which caused electric wholesale prices to increase significantly. The City received information from GRDA, their wholesale electric provider, in August 2021, that Miami’s portion of the electrical cost for the winter storm would be $2,698,459. The City has opted to pay the amount by October 2022. The City has opted to allow their sixteen (16) industrial customers to repay their actual usage during this time totaling $1,025,878.70 and has approved a Temporary Rate Adjustment ("TRA") shown as PCAX, to be added to the monthly bills of Rate Class Customers E.1, E.2, E.3 and E.5 to recover 100% of the Grand River Dam Authority’s Temporary Production Cost Bill over an approximately 36-month term. We are tracking those repayments monthly and will eliminate the PCAX rate once the amount the City has paid GRDA has been recouped. 72  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 REQUIRED SUPPLEMENTARY INFORMATION 73  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Budgetary Comparison Schedules (Budgetary Basis) – Year Ended June 30, 2022 GENERAL FUND Actual Variance with Budgeted Amounts Amounts Final Budget Original Final (Budget basis) Positive (Negative) Beginning Budgetary Fund Balance: $ 2,481,641 $ 2,481,641 $ 3,529,969 $ 1,048,328 Resources (Inflows): Taxes and assessments 7,187,900 7,187,900 8,870,284 1,682,384 Fees, licenses and permits 43,500 43,500 80,817 37,317 Charges for services 134,745 134,745 133,466 (1,279) Fines and forfeitures 248,400 248,400 260,553 12,153 Interest earned 10,300 10,300 10,350 50 M iscellaneous 2,700 2,650,490 139,165 (2,511,325) Intergovernmental 74,600 74,600 164,911 90,311 Total Resources (Inflows) 7,702,145 10,349,935 9,659,546 (690,389) Amounts available for appropriation 10,183,786 12,831,576 13,189,515 357,939 Charges to Appropriations (Outflows): General Government M uncipal Court 161,875 162,675 145,670 17,005 General Government 744,876 763,223 580,208 183,015 Human Resources 371,900 346,065 276,821 69,244 Legal 109,450 109,470 77,149 32,321 Public Safety Police 2,503,496 2,499,757 2,413,720 86,037 Fire 2,199,685 2,191,485 2,148,386 43,099 Emergency M anagement 56,066 59,273 38,026 21,247 Police Communications 502,886 577,875 520,512 57,363 Code Compliance 108,722 120,722 73,461 47,261 Risk M anagement 714,704 715,484 692,420 23,064 Public Works and Streets Streets 756,394 793,160 675,573 117,587 Cemetery 333,887 309,182 276,351 32,831 Facilities 294,107 327,338 282,768 44,570 Animal Control 223,439 224,039 176,078 47,961 Culture and Recreation Parks 697,929 646,692 534,485 112,207 Swimming Pool 212,526 212,579 131,034 81,545 Library 572,550 615,400 570,440 44,960 Total Charges to Appropriations 10,564,492 10,674,419 9,613,102 1,061,317 Other financing sources (uses) Transfers from other funds 7,589,041 7,590,885 8,839,742 1,248,857 Transfers to other funds (6,974,246) (7,045,748) (8,512,186) (1,466,438) Total other financing sources (uses) 614,795 545,137 327,556 (217,581) Ending Budgetary Fund Balance $ 234,089 $ 2,702,294 $ 3,903,969 $ 1,201,675 See accompanying notes to this schedule. 74  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Schedule Footnotes to Budgetary Comparison: 1. The budgetary comparison schedules and budgetary fund balance amounts are reported on a non- GAAP basis that report revenues on a cash basis, and expenditures in the period the invoice is received, except for payroll expenditures that are recorded when paid. In addition, obligations that are required to be funded from ending budgetary fund balances are subtracted from total ending budgetary fund balances to arrive at the unassigned budgetary fund balance. This presentation of unassigned fund balances on a budgetary basis is used to demonstrate compliance with Article 10, § 26 of the Oklahoma State Constitution. 2. The legal level of appropriation control is the department level within a fund. Transfers of appropriation within a fund require the approval of the City Manager. All supplemental appropriations require the approval of the City Council. Supplemental appropriations must be filed with the Office of the State Auditor and Inspector. 3. The budgetary basis differs from the modified accrual (GAAP) basis as shown in the schedule below: Fund Balance Net Change in Fund Balance June 30, 2021 Fund Balance June 30, 2022 Budget to GAAP Reconciliation: Fund Balance - GAAP Basis $3,981,265 $682,725 $4,663,990 Increases (Decreases): Revenues: Receivable from other governments and entities (909,716) (31,090) (940,806) Accounts receivable (230,465) 45,801 (184,664) State on behalf pension payments (401,184) (128,774) (529,958) Combining accounts (302,828) (110,463) (413,291) Expenditures: Accrued payroll 317,419 (188,620) 128,799 Other expenditures 674,294 (24,353) 649,941 State on behalf pension payments 401,184 128,774 529,958 Fund Balance - Budgetary Basis $3,529,969 $374,000 $3,903,969 75  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Pension Information Schedules of Required Supplementary Information SCHEDULE OF THE CITY OF MIAMI'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years* 2015 2016 2017 2018 2019 2020 2021 2022 City's proportion of the net pension liability 0.413176% 0.418954% 0.4143524% 0.4169184% 0.421250% 0.394823% 0.375765% 0.380507% City's proportionate share of the net pension liability $ 4,887,039 $ 4,446,809 $ 5,062,191 $ 5,243,677 $ 4,741,794 $ 4,171,963 $ 4,629,102 $2,505,890 City's covered-employee payroll $ 1,089,326 $ 1,144,680 $ 1,159,023 $ 1,185,003 $ 1,208,603 $ 1,220,957 $ 1,206,179 $1,236,103 City's proprotionate share of the net pension liability as a percentage of its covered-employee payroll 449% 388% 437% 443% 392% 342% 384% 203% Plan fiduciary net position as a percentage of the total pension liability 68.12% 68.27% 64.87% 66.61% 70.73% 72.85% 69.98% 68.12% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous eigth fiscal years are presented because 10-year data is not yet available. SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 Statutorially required contribution $ 160,255 $ 162,264 $ 165,905 $ 169,204 $ 170,934 $ 168,865 $ 173,054 $ 175,750 Contributions in relation to the statutorially required contribution 160,255 162,264 165,905 169,204 170,934 168,865 173,054 175,750 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - City's covered-employee payroll $ 1,144,680 $ 1,159,023 $ 1,185,033 $ 1,208,603 $ 1,220,957 $ 1,206,179 $ 1,236,103 $ 1,255,355 Contributions as a percentage of covered-employee payroll 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% Notes to Schedule: Only the previous eight fiscal years are presented because 10-year data is not yet available. 76  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Schedules of Required Supplementary Information SCHEDULE OF THE CITY OF MIAMI PORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years* 2015 2016 2017 2018 2019 2020 2021 2022 City's proportion of the net pension liability (asset) 0.4416% 0.3977% 0.4577% 0.3683% 0.4088% 0.3946% 0.3839% 0.3816% City's proportionate share of the net pension liability (asset) $ (148,685) $ 16,217 $ 700,954 $ 29,715 $ (194,728) $ (25,191) $ 440,848 $(1,830,509) City's covered-employee payroll $ 1,184,882 $ 1,131,472 $ 1,201,369 $ 1,169,953 $ 1,246,941 $ 1,283,171 $1,285,623 $ 1,378,435 City's proprotionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 12.55% 1.43% 58.35% 2.54% 15.62% 1.96% -34.29% 132.80% Plan fiduciary net position as a percentage of the total pension liability 101.53% 99.82% 93.50% 99.68% 101.89% 100.24% 95.8% 117.07% *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous eight fiscal years are presented because 10-year data is not yet available. SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 Statutorially required contribution $ 145,903 $ 156,178 $ 152,094 $ 162,102 $ 166,813 $ 167,131 $ 171,661 $ 179,197 Contributions in relation to the statutorially required contribution 145,903 156,178 152,094 162,102 166,813 167,131 171,661 179,746 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ (549) City's covered-employee payroll $ 1,131,472 $ 1,201,369 $ 1,169,953 $ 1,246,941 $ 1,283,171 $ 1,285,623 $ 1,320,463 $ 1,378,435 Contributions as a percentage of covered-employee payroll 12.89% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% Notes to Schedule: Only the previous eight fiscal years are presented because 10-year data is not yet available. 77  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Changes in Net Pension Liability and Related Ratios 2015 2016 2017 2018 2019 2020 2021 2022 Total pension liability Service cost $ 276,403 $ 308,701 $ 344,545 $ 330,866 $ 283,926 $ 346,075 $ 345,024 $ 390,061 Interest 1,034,763 1,037,326 1,073,154 1,087,717 1,061,577 1,044,256 1,070,892 1,085,829 Changes of benefit terms - - - - Differences between expected and actual experience - 102,207 (202,315) (535,480) (541,596) (272,005) (198,240) (643,221) Changes of assumptions - - - 321,010 - 208,546 - - Benefit payments, including refunds of member contributions (997,138) (1,006,438) (964,663) (1,092,673) (1,076,009) (992,188) (1,021,818) (1,015,092) Benefit changes due to plan amendments 35,013 Net change in total pension liability 314,028 441,796 250,721 111,440 (272,102) 369,697 195,858 (182,423) Total pension liability - beginning 13,564,650 13,878,678 14,320,474 14,571,195 14,682,635 14,410,533 14,780,230 14,976,088 Total pension liability - ending (a) $ 13,878,678 $ 14,320,474 $ 14,571,195 $ 14,682,635 $ 14,410,533 $ 14,780,230 $ 14,976,088 $ 14,793,665 Plan fiduciary net position Contributions - employer $ 569,542 $ 618,748 $ 640,172 $ 650,799 $ 635,453 $ 646,533 $ 657,276 $ 697,806 Contributions - member 166,578 175,420 181,046 183,989 179,680 182,834 185,855 197,343 Net investment income 1,363,071 261,920 83,267 1,149,965 755,918 735,845 465,013 3,203,292 Benefit payments, including refunds of member contributions (997,138) (1,006,438) (964,663) (1,092,673) (1,076,009) (992,188) (1,021,818) (1,015,092) Administrative expense (20,151) (19,533) (18,698) (20,154) (21,162) (22,670) (23,361) (23,726) Other - - - - Net change in plan fiduciary net position 1,081,902 30,117 (78,876) 871,926 473,880 550,354 262,965 3,059,623 Plan fiduciary net position - beginning 8,437,357 9,519,259 9,549,376 9,470,500 10,342,425 10,816,305 11,366,659 11,629,624 Plan fiduciary net position - ending (b) $ 9,519,259 $ 9,549,376 $ 9,470,500 $ 10,342,426 $ 10,816,305 $ 11,366,659 $ 11,629,624 $ 14,689,247 Net pension liability - ending (a) - (b) $ 4,359,419 $ 4,771,098 $ 5,100,695 $ 4,340,209 $ 3,594,228 $ 3,413,571 $ 3,346,464 $ 104,418 Plan fiduciary net position as a percentage of the total pension liability 68.59% 66.68% 64.99% 70.44% 75.06% 76.90% 77.65% 99.29% Covered employee payroll $ 4,356,987 $ 4,742,831 $ 4,657,554 $ 4,735,571 $ 4,920,014 $ 4,576,812 $ 5,258,704 $ 5,505,289 Net pension liability as a percentage of covered- 100.06% 100.60% 109.51% 91.65% 73.05% 74.58% 63.64% 1.90% employee payroll *The amounts present for each fiscal year were determined as of 6/30 Notes to Schedule: Only the previous eight fiscal years are presented because 10-year data is not yet available. 78  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Employer Contributions 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution $ 616,160 $ 643,059 $ 592,589 $ 590,967 $ 512,617 $ 518,316 $ 551,638 $ 577,505 Contributions in relation to the actuarially 616,160 643,059 623,633 635,553 647,362 655,182 697,304 730,002 determined contribution Contribution deficiency (excess) $ - $ - $ (31,044) $ (44,586) $ (134,745) $ (136,866) $ (145,666) $ (152,497) Covered employee payroll $ 4,661,027 $ 4,849,681 $ 4,703,091 $ 4,792,921 $ 4,882,062 $ 4,941,046 $ 5,258,704 $ 5,505,289 Contributions as a percentage of covered-employee payroll 13.22% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% Notes to Schedule: 1. Only the previous seven fiscal years are presented because 10-year data is not yet available. 2. Latest Valuation Date: July 1, 2021 3. Actuarially determined contribution rate is calculated as of July 1, 2021 July 2021 through June 2022 contributions were at a rate of 9.45%. 4. Methods and assumptions used to determine contribution rates: Actuarial cost method - Entry age normal Amortization method - Level percent of payroll, closed Remaining amortization period - 29 years Asset valuation method - Actuarial: Smoothing period - 4 years Recognition method - Non-asymptotic Corridor - 70% - 130% Salary increases - 4.00% to 7.42% (varies by attained age) Investment rate of return - 7.50% 79  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Required Supplementary Information – OPEB Schedule of Changes in Total OPEB Liability and Related Ratios Postemployment Health Insurance Implcit Rate Subsidy Plan 2018 2019 2020 2021 2022 Total OPEB Liability Service cost $ 233,167 $ 206,592 $ 180,562 $ 182,138 $ 182,230 Interest 91,262 125,031 120,692 96,946 54,855 Change of benefit terms - - - - 107,385 Changes in assumptions (280,566) (378,465) (162,177) (237,748) (42,145) Differences between expected and actual experience (17,115) (388,393) (237,298) (301,527) Benefit payments (78,120) (103,265) (99,477) (91,824) (90,502) Net change in total OPEB liability (34,257) (167,222) (348,793) (287,786) (89,704) Balances at Beginning of Year 3,320,163 3,285,906 3,118,684 2,769,891 2,482,105 Balances End of Year $ 3,285,906 $ 3,118,684 $ 2,769,891 $ 2,482,105 $ 2,392,401 Covered employee payroll $ 7,400,000 $ 7,310,000 $ 7,011,000 $ 7,564,000 $ 7,458,000 Total OPEB liability as a percentage of covered- employee payroll 44.40% 42.66% 39.51% 32.81% 32.08% Notes to Schedule: Only Five fiscal years are presented because 10-year data is not yet available 80  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 OTHER SUPPLEMENTARY INFORMATION 81  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Balance Sheet – General Fund Accounts - June 30, 2022 Municipal Court Travel Information MCVB &Tourism Demolition Total General General Fund Account Center Account Account Account Fund ASSETS Cash and cash equivalents $ 3,478,601 $ 15,276 $ - $ 97,077 $ (18,844) $ 3,572,110 Investments - - - - - - Receivables: Accounts receivable 184,664 - - 40,330 57,997 282,991 Due from other funds 87,654 - - - - 87,654 Due from other accounts 6,696 - - - - 6,696 Receivable from other governments 940,806 - - 20,995 246,729 1,208,530 Other receivables - - 7,500 - - 7,500 Total assets $ 4,698,421 $ 15,276 $ 7,500 $ 158,402 $ 285,882 $ 5,165,481 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 141,382 $ 8,385 $ (410) $ 36,159 $ - $ 185,516 Wages payable 128,799 - - 2,939 - 131,738 Due to other funds 77,843 - - - - 77,843 Due to other accounts - 6,696 - - - 6,696 Total liabilities 348,024 15,081 (410) 39,098 - 401,793 DEFERRED INFLOWS OF RESOURCES Deferred revenue 99,698 - - - - 99,698 Fund balances: Restricted - - - - - - Assigned 3,386,074 - - - 285,882 3,671,956 Unassigned (deficit) 864,625 195 7,910 119,304 - 992,034 Total fund balances 4,250,699 195 7,910 119,304 285,882 4,663,990 Total liabilities, deferred inflows and fund balances $ 4,698,421 $ 15,276 $ 7,500 $ 158,402 $ 285,882 $ 5,165,481 82  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund Accounts – Year Ended June 30, 2022 Travel MCVB & Municipal Information Tourism Demolition Total General General Fund Court Account Center Account Account Account Fund REVENUES Taxes $ 7,217,900 $ - $ - $ 232,309 $ - $ 7,450,209 Intergovernmental 741,524 - - - - 741,524 Charges for services 143,344 - - 22,624 238,270 404,238 Fines and forfeitures 248,934 - - - 42,928 291,862 Licenses and permits 93,448 - - - 81,930 175,378 Investment income 10,359 - - - - 10,359 Miscellaneous 263,339 - 30,264 44,030 - 337,633 Total revenues 8,718,848 - 30,264 298,963 363,128 9,411,203 EXPENDITURES Current: General government 1,069,018 - - - 390,430 1,459,448 Public safety 6,179,614 - - - - 6,179,614 Public works and streets 1,385,579 - - - - 1,385,579 Culture and recreation 1,213,949 - - - - 1,213,949 Economic development - - 6,371 413,848 - 420,219 Capital Outlay - - - - - - Debt Service: Principal 104,947 - - - - 104,947 Interest and fiscal charges 11,168 - - - - 11,168 Total expenditures 9,964,275 - 6,371 413,848 390,430 10,774,924 Excess (deficiency) of revenues over expenditures (1,245,427) - 23,893 (114,885) (27,302) (1,363,721) OTHER FINANCING SOURCES (USES) Transfers in - interaccount 3,792 - - 182,531 18 186,341 Transfers out - interaccount (182,549) - (3,792) - - (186,341) Transfers in 10,326,083 - - - 50,000 10,376,083 Transfers out (8,329,637) - - - - (8,329,637) Total other financing sources and uses 1,817,689 - (3,792) 182,531 50,018 2,046,446 Net change in fund balances 572,262 - 20,101 67,646 22,716 682,725 Fund balances - beginning 3,678,437 195 (12,191) 51,658 263,166 3,981,265 Fund balances - ending $ 4,250,699 $ 195 $ 7,910 $ 119,304 $ 285,882 $ 4,663,990 83  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2022 SPECIAL REVENUE FUNDS PARKS AND FISHING STREET AND DRUG FORFEITURE RECREATION GRANT AND MDA-HOUSING POLICE LICENSE FUND ALLEY FUND PROGRAM DONATION FUND CONSTRUCTION FUND GRANTS ASSETS Cash and cash equivalents $ 81,792 $ 341,316 $ 25,480 $ 299,262 $ 1,130,496 $ 91,716 $ 136,096 Accounts receivable - - - - 1,750 - - Due from other governments - 10,696 - - 39,065 - - Due from other funds - 38,404 - - - - - Total assets $ 81,792 $ 390,416 $ 25,480 $ 299,262 $ 1,171,311 $ 91,716 $ 136,096 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 119,180 $ - $ 10,296 $ 81,761 $ - $ - Wages payable - - - 2,891 - - - Due to other funds - - - - - - - Total liabilities - 119,180 - 13,187 81,761 - - Deferred Inflows: Deferred revenue - - - - - - - Fund balances: Restricted 81,792 - 25,480 286,075 1,089,550 91,716 136,096 Commited - 271,236 - - - - - Assigned - - - - - - - Total fund balances 81,792 271,236 25,480 286,075 1,089,550 91,716 136,096 Total liabilities, deferred inflows and fund balances $ 81,792 $ 390,416 $ 25,480 $ 299,262 $ 1,171,311 $ 91,716 $ 136,096 (continued) 84  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2022, Continued DEBT SERVICE FUND CAPITAL PROJECT FUNDS CAPITAL STREET AND PARK G.O. BOND CEMETERY IMPROVEMENT MAIN STREET STADIUM PROJECT POOL DEPARTMENT SINKING FUND CARE FUND PROJECT FUND IMPROVEMENT FUND PROJECTS TOTALS ASSETS Cash and cash equivalents $ 189,056 $ 86,575 $ 759,255 $ - $ 1,235,461 $ 9,973 $ 42,041 $ 4,428,519 Accounts receivable - - 89,971 - - - - 91,721 Due from other governments 55,409 - - - 188,155 - - 293,325 Due from other funds - - 6,657 - - - - 45,061 Total assets $ 244,465 $ 86,575 $ 855,883 $ - $ 1,423,616 $ 9,973 $ 42,041 $ 4,858,626 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 12,250 $ 4,344 $ - $ 2,250 $ - $ - $ 230,081 Wages payable - - - - - - - 2,891 Due to other funds - - 38,404 - - - - 38,404 Total liabilities - 12,250 42,748 - 2,250 - - 271,376 Deferred Inflows: Deferred revenue 55,410 - - - - - - 55,410 Fund balances: Restricted 189,055 74,325 - - 1,421,366 9,973 42,041 3,447,469 Commited - - - - - - - 271,236 Assigned - - 813,135 - - - - 813,135 Total fund balances 189,055 74,325 813,135 - 1,421,366 9,973 42,041 4,531,840 Total liabilities, deferred inflows and fund balances $ 244,465 $ 86,575 $ 855,883 $ - $ 1,423,616 $ 9,973 $ 42,041 $ 4,858,626 85  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2022 SPECIAL REVENUE FUNDS PARKS AND GRANT AND MDA-HOUSING FISHING STREET AND DRUG FORFEITURE RECREATION DONATION CONSTRUCTION POLICE LICENSE FUND ALLEY FUND PROGRAM FUND FUND GRANTS REVENUES Taxes $ - $ - $ - $ - $ - $ - $ - Intergovernmental 5,000 125,982 22,315 - 129,245 - 42,009 Charges for services - - - 173,158 - - - Investment income - - - - - - - Miscellaneous - - - 326 72,041 - - Total revenues 5,000 125,982 22,315 173,484 201,286 - 42,009 EXPENDITURES Current: General government - - - - 41,691 - - Public safety - - 9,449 - 103,361 - 18,349 Public works - 624,091 - - 35,573 - - Culture and recreation - - - 159,883 90,305 - - Capital Outlay - - - - 10,500 - - Debt Service Principal retirement - 52,071 - - - - - Interest and fiscal charges - 3,404 - - - - - Total Expenditures - 679,566 9,449 159,883 281,430 - 18,349 Revenues over (under) expenditures 5,000 (553,584) 12,866 13,601 (80,144) - 23,660 OTHER FINANCING SOURCES (USES) Transfers in - 500,355 - 227 33,567 - 121 Transfers out - - - (25,000) (317) - - Total other financing sources (uses) - 500,355 - (24,773) 33,250 - 121 Net change in fund balances 5,000 (53,229) 12,866 (11,172) (46,894) - 23,781 Fund balances - beginning 76,792 324,465 12,614 297,247 1,136,444 91,716 112,315 Fund balances - ending $ 81,792 $ 271,236 $ 25,480 $ 286,075 $ 1,089,550 $ 91,716 $ 136,096 (continued) 86  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2022, Continued DEBT SERVICE FUND CAPITAL PROJECT FUNDS CAPITAL STREET AND POOL PARK G.O. BOND CEMETERY IMPROVEMENT MAIN STREET STADIUM PROJECT IMPROVEMENT DEPARTMENT SINKING FUND CARE FUND PROJECT FUND FUND PROJECTS TOTALS REVENUES Taxes $ 13,343 $ - $ 779,058 $ - $ 1,498,434 $ - $ - $ 2,290,835 Intergovernmental - - - - - - - 324,551 Charges for services - 8,441 - - - - - 181,599 Investment earnings - - 473 - - - - 473 Miscellaneous - - 10,000 - - - - 82,367 Total revenues 13,343 8,441 789,531 - 1,498,434 - - 2,879,825 EXPENDITURES Current: General government - 6,595 - - - - - 48,286 Public safety - - - - - - - 131,159 Public works - - - - 2,910 - - 662,574 Culture and recreation - - - - - 23,350 - 273,538 Capital Outlay - 12,250 395,178 - - - - 417,928 Debt Service Principal retirement - - - - 465,000 - - 517,071 Interest and fiscal charges - - - - 534,937 - - 538,341 Total Expenditures - 18,845 395,178 - 1,002,847 23,350 - 2,588,897 Excess (deficiency) of revenues over expenditures 13,343 (10,404) 394,353 - 495,587 (23,350) - 290,928 OTHER FINANCING SOURCES (USES) Transfers in - - 3,151 - - 25,000 - 562,421 Transfers out - - (100,000) - - - - (125,317) Total other financing sources and uses - - (96,849) - - 25,000 - 437,104 Net change in fund balances 13,343 (10,404) 297,504 - 495,587 1,650 - 728,032 Fund balances - beginning 175,712 84,729 515,631 - 925,779 8,323 42,041 3,803,808 Fund balances - ending $ 189,055 $ 74,325 $ 813,135 $ - $ 1,421,366 $ 9,973 $ 42,041 $ 4,531,840 87  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Schedule of Net Position – Special Utility Authority Accounts – June 30, 2022 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total ASSETS Current assets: Cash and cash equivalents $ 8,808,905 $ (97,455) $ 499,682 $ 3,652,656 $ 12,863,788 Cash and cash equivalents, restricted 841,228 2,118,145 - - 2,959,373 Investments - - - 1,466,265 1,466,265 Accounts receivable, net 5,048,525 - - - 5,048,525 Leases receivables 18,471 - - - 18,471 Other receivable 436 - - - 436 Inventory 1,432,790 - - - 1,432,790 Due from other accounts 269,125 - - - 269,125 Due from other funds 41,593 - - - 41,593 Total current assets 16,461,073 2,020,690 499,682 5,118,921 24,100,366 Non-current assets: Cash and cash equivalents, restricted 1,195 - - - 1,195 Leases receivables 230,493 - - - 230,493 Capital assets: Land, construction in progress, and water rights 3,275,215 - - - 3,275,215 Other capital assets, net of accumulated depreciation 22,954,153 - - - 22,954,153 Total non-current assets 26,461,056 - - - 26,461,056 Total assets 42,922,129 2,020,690 499,682 5,118,921 50,561,422 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pension 470,025 - - - 470,025 Deferred amounts related to OPEB 183,611 - - - 183,611 Deferred amounts related to GRDA settlement 99,788 - - - 99,788 Total deferred outflow of resources 753,424 - - - 753,424 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 3,369,035 13,069 - - 3,382,104 Wages payable 79,204 - - - 79,204 Due to other accounts - - 269,125 - 269,125 Due to other funds 86,341 - - - 86,341 Accrued interest payable 21,045 92,218 - - 113,263 Accrued compensated absences 17,235 - 440 - 17,675 Unearned revenue 1,643,318 - - - 1,643,318 Refundable deposits 35,217 - - - 35,217 Capital lease payable 144,620 - - - 144,620 Revenue bond payable - 465,000 - - 465,000 Notes payable 964,952 - - - 964,952 Total current liabilities 6,360,967 570,287 269,565 - 7,200,819 Non-current liabilities: Accrued compensated absences 155,168 - 6,167 - 161,335 Net pension liability 54,687 - - - 54,687 Total OPEB liability 884,690 - - - 884,690 Refundable deposits 315,798 - - - 315,798 Revenue bond payable - 6,240,000 - - 6,240,000 Notes payable, net 3,177,741 - - - 3,177,741 Total non-current liabilities 4,588,084 6,240,000 6,167 - 10,834,251 Total liabilities 10,949,051 6,810,287 275,732 - 18,035,070 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases 249,720 - - - 249,720 Deferred amounts related to pensions 1,312,331 - - - 1,312,331 Deferred amounts related to OPEB 713,899 - - - 713,899 Total deferred inflow of resources 2,275,950 - - - 2,275,950 NET POSITION Net investment in capital assets 21,942,055 (6,705,000) - - 15,237,055 Restricted for debt service 207,449 - - - 207,449 Unrestricted 8,301,048 1,915,403 223,950 5,118,921 15,559,322 Total net position $ 30,450,552 $ (4,789,597) $ 223,950 $ 5,118,921 $ 31,003,826 88  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Schedule of Revenues, Expenses and Changes in Net Position – Special Utility Authority Accounts - Year Ended June 30, 2022 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total REVENUES Charges for services $ 30,960,775 $ - $ - $ - $ 30,960,775 Fees, licenses and permits - - 133,625 - 133,625 Miscellaneous 790,398 - - - 790,398 Total operating revenues 31,751,173 - 133,625 - 31,884,798 OPERATING EXPENSES Personal services 3,446,870 - 78,670 - 3,525,540 Materials and supplies 13,930,787 - 5,825 - 13,936,612 Other services and charges 4,228,383 314,828 8,534 - 4,551,745 Depreciation expense 2,091,470 - - - 2,091,470 Total operating expenses 23,697,510 314,828 93,029 - 24,105,367 Operating income (loss) 8,053,663 (314,828) 40,596 - 7,779,431 NON-OPERATING REVENUES (EXPENSES) Investment income 75 4,867 - 4,196 9,138 Miscellaneous 40,522 - - 11,695 52,217 Interest expense and fiscal charges (63,016) (233,701) - - (296,717) Total non-operating revenue (expenses) (22,419) (228,834) - 15,891 (235,362) Income (loss) before contrbutions and transfers 8,031,244 (543,662) 40,596 15,891 7,544,069 Contributed assets- governmental activities 30,215 - - - 30,215 Transfers in, interaccount 94,728 781,531 (15,000) 372,232 1,233,491 Transfers out, interaccount (1,153,763) (79,728) - - (1,233,491) Transfers in 8,365,882 - - 100,000 8,465,882 Transfers out (10,909,450) - - - (10,909,450) Change in net position 4,458,856 158,141 25,596 488,123 5,130,716 Total net position - beginning 25,991,696 (4,947,738) 198,354 4,630,798 25,873,110 Total net position - ending $ 30,450,552 $ (4,789,597) $ 223,950 $ 5,118,921 $ 31,003,826 89  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Schedule of Cash Flows – Special Utility Authority Accounts - Year Ended June 30, 2022 Miami Special Utility Authority Accounts Utility Improvement Stormwater Rainy Day Public Utilities Account Account Account Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 32,028,511 $ - $ 133,625 $ 11,695 $ 32,173,831 Payments to suppliers (17,059,957) (384,679) (14,359) - (17,458,995) Payments to employees (3,913,472) - (76,509) - (3,989,981) Receipts from other funds - - 18,329 - 18,329 Payments to other funds 57,647 - - - 57,647 Receipts of customer meter deposits 153,614 - - - 153,614 Refunds of customer meter deposits (172,911) - - - (172,911) Net cash provided by operating activities 11,093,432 (384,679) 61,086 11,695 10,781,534 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 8,365,882 - - 100,000 8,465,882 Transfers to other funds (10,909,450) - - - (10,909,450) Interaccount transfer in 94,728 781,531 - 372,232 1,248,491 Interaccount transfer out (1,153,763) (79,728) (15,000) - (1,248,491) Net cash provided by (used in) noncapital financing activities (3,602,603) 701,803 (15,000) 472,232 (2,443,568) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (3,557,690) - - - (3,557,690) Principal paid on debt (1,094,612) (660,000) - - (1,754,612) Note proceeds 1,324,579 - - - 1,324,579 Interest and fiscal agent fees paid on debt (90,651) (240,586) - - (331,237) Net cash provided by (used in) capital and related financing activities (3,418,374) (900,586) - - (4,318,960) CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments 198,084 - - (4,196) 193,888 Interest and dividends 75 4,867 - 4,196 9,138 Net cash provided by investing activities 198,159 4,867 - - 203,026 Net increase (decrease) in cash and cash equivalents 4,270,614 (578,595) 46,086 483,927 4,222,032 Balances - beginning of year 5,380,714 2,599,285 453,596 3,168,729 11,602,324 Balances - end of year $ 9,651,328 $ 2,020,690 $ 499,682 $ 3,652,656 $ 15,824,356 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 8,808,905 $ (97,455) $ 499,682 $ 3,652,656 $ 12,863,788 Restricted cash and cash equivalents - current 841,228 2,118,145 - - 2,959,373 Restricted cash and cash equivalents - noncurrent 1,195 - - - 1,195 Total cash and cash equivalents, end of year $ 9,651,328 $ 2,020,690 $ 499,682 $ 3,652,656 $ 15,824,356 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income $ 8,053,663 $ (314,828) $ 40,596 $ - $ 7,779,431 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 2,091,470 - - - 2,091,470 Unearned revenue 1,643,318 1,643,318 Other nonoperating revenue 40,522 - - 11,695 52,217 Change in assets and liabilities: Receivables, net (1,157,538) - - - (1,157,538) Leases receivable (248,964) (248,964) Due from other funds 57,647 - - - 57,647 Inventory (136,670) - - - (136,670) Deferred outflows related to pension 208,518 - - - 208,518 Deferred outflows related to OPEB 35,671 - - - 35,671 Accounts payable 1,235,883 (69,851) - - 1,166,032 Due to other funds - - 18,329 - 18,329 Due to employees (90,768) - - - (90,768) Refundable deposits (19,297) - - - (19,297) Total OPEB liability (102,667) - - - (102,667) Net pension obligation (1,740,807) - - - (1,740,807) Accrued compensated absences (5,562) - 2,161 - (3,401) Deferred inflows related to OPEB 45,940 - - - 45,940 Deferred inflows related to leases 249,720 - - - 249,720 Deferred inflows related to pension 933,353 - - - 933,353 Net cash provided by operating activities $ 11,093,432 $ (384,679) $ 61,086 $ 11,695 $ 10,781,534 Noncash activities: Assets contributed by governmental activities $ 30,215 $ - $ - $ - $ 30,215 $ 30,215 $ - $ - $ - $ 30,215 90  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Statement of Net Position – Internal Service Funds – June 30, 2022 Internal Service Funds Worker's Health Compensation Unemployment Insurance Fund Fund Fund Total ASSETS Current assets: Cash and cash equivalents $ 1,519,281 $ 215,636 $ 651,544 $ 2,386,461 Investments 131,968 - - 131,968 Other receivable 486,472 - 73,622 560,094 Due from other funds 458,448 - - 458,448 Total current assets 2,596,169 215,636 725,166 3,536,971 Total assets 2,596,169 215,636 725,166 3,536,971 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 11,873 - 7,920 19,793 Claims liability 534,581 - 140,775 675,356 Due to other funds - - 458,448 458,448 Total current liabilities 546,454 - 607,143 1,153,597 Total liabilities 546,454 - 607,143 1,153,597 NET POSITION Unrestricted 2,049,715 215,636 118,023 2,383,374 Total net position $ 2,049,715 $ 215,636 $ 118,023 $ 2,383,374 91  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds - Year Ended June 30, 2022 Internal Service Funds Worker's Compensation Unemployment Health Insurance Fund Fund Fund Total REVENUES Charges for services $ 306,546 $ 21,539 $ 1,538,200 $ 1,866,285 Miscellaneous 586,632 - 471,545 1,058,177 Total operating revenues 893,178 21,539 2,009,745 2,924,462 OPERATING EXPENSES Other services and charges 119,840 - 369,781 489,621 Insurance claims and expense 582,251 6,295 2,163,138 2,751,684 Total operating expenses 702,091 6,295 2,532,919 3,241,305 Operating income 191,087 15,244 (523,174) (316,843) NON-OPERATING REVENUES Investment income 495 - - 495 Total non-operating revenue 495 - - 495 Income before transfers 191,582 15,244 (523,174) (316,348) Transfers out - - - - Change in net position 191,582 15,244 (523,174) (316,348) Total net position - beginning 1,858,133 200,392 641,197 2,699,722 Total net position - ending $ 2,049,715 $ 215,636 $ 118,023 $ 2,383,374 92  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Statement of Cash Flows – Internal Service Funds - Year Ended June 30, 2022 WORKER'S HEALTH COMPENSATION UNEMPLOYMENT INSURANCE FUND FUND FUND TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 738,315 $ 21,539 $ 2,687,745 $ 3,447,599 Payments to suppliers (107,967) - (361,861) (469,828) Payments to other funds - - 249,863 249,863 Payments from other funds (249,863) - - (249,863) Claims and benefits paid (380,450) (8,507) (2,506,347) (2,895,304) Net Cash Provided by Operating Activities 35 13,032 69,400 82,467 CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 495 - - 495 Sale (purchase) of investments (494) - - (494) Net Cash Provided by Investing Activities 1 - - 1 Net Increase in Cash and Cash Equivalents 36 13,032 69,400 82,468 Balances - beginning of the year 1,519,245 202,604 582,144 2,303,993 Balances - end of the year $ 1,519,281 $ 215,636 $ 651,544 $ 2,386,461 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 1,519,281 $ 215,636 $ 651,544 $ 2,386,461 Total cash and cash equivalents $ 1,519,281 $ 215,636 $ 651,544 $ 2,386,461 Reconciliation of operating income to net cash provided by operating activities: Operating income $ 191,087 $ 15,244 $ (523,174) $ (316,843) Change in assets and liabilities: Receivables, net (154,863) - 678,000 523,137 Accounts payable 11,873 - 7,920 19,793 Claims liability 201,801 (2,212) (343,209) (143,620) Net Cash Provided by Operating Activities $ 35 $ 13,032 $ 69,400 $ 82,467 93  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Combining Schedule of Cash Flows – Discretely Presented Component Units - Year Ended June 30, 2022 MCFA MDRA MIPFA Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 160,168 $ 402,026 $ (255,234) $ 306,960 Payments to suppliers (66,058) (222,360) (4,900) (293,318) Payments to employees - (117,464) 275,470 158,006 Net Cash Provided by Operating Activities 94,110 62,202 15,336 171,648 CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 149 - 3,268 3,417 Net Cash Provided by Investing Activities 149 - 3,268 3,417 Net Increase in Cash and Cash Equivalents 94,259 62,202 18,604 175,065 Balances - beginning of the year 248,180 73,436 199,930 521,546 Balances - end of the year $ 342,439 $ 135,638 $ 218,534 $ 696,611 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 342,439 $ 148,670 $ 220,241 $ 711,350 Total cash and cash equivalents $ 342,439 $ 148,670 $ 220,241 $ 711,350 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ (163,814) $ (92,765) $ (7,734) $ (264,313) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 246,170 2,524 28,713 277,407 Other nonoperating revenue 4,358 161,379 25 165,762 Change in assets and liabilities: Other receivable 7,665 - (100) 7,565 Leases receivabe - - (279,031) (279,031) Accounts payables (269) (6,009) (2,007) (8,285) Deferred inflows related to leases - - 275,470 275,470 Accrued compensated absences - (2,927) - (2,927) Net Cash Provided by Operating Activities $ 94,110 $ 62,202 $ 15,336 $ 171,648 94  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2022 Schedule of State Awards –Year Ended June 30, 2022 City of Miami, Oklahoma SCHEDULE OF EXPENDITURES OF STATE AWARDS Year Ended June 30, 2022 State Grantor/ Pass-through Grantor/Program Title Grant I.D. Number Award Amount Expenditures STATE AWARDS: Oklahoma Department of Libraries: State aid 22 State Aid $ 10,825 $ 10,825 Oklahoma Aeronautics Commission: Airfield Pavement Rehabilitation FY 2022 $ 212,951 $ 212,951 Total State Awards $ 223,776 $ 223,776 95 THE CITY OF MIAMI, OKLAHOMA SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES June 30, 2022 THE CITY OF MIAMI, OKLAHOMA TABLE OF CONTENTS PAGE SINGLE AUDIT REPORTS AND SUPPLEMENTARY SCHEDULES: Reports related to financial statements of the reporting entity Required by GAO Government Auditing Standards: Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Reports related to Federal Assistance Programs Required by the Uniform Guidance: Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required By the Uniform Guidance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3 Schedule of Expenditures of Federal Awards 6 Notes to the Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8 Summary Schedule of Prior Audit Findings and Questioned Costs 9  INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To Honorable Mayor and Members of the City Council City of Miami, Oklahoma 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 of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Miami, Oklahoma (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 15, 2022. Our report includes a reference to other auditors who audited the financial statements of the Miami Industrial Authority (“MIDA”), as described in our report on the City’s financial statements. This report does not include the results of the other auditor’s testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’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 City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or 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 a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our 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 or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its 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. www.arledge.cpa Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control 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 control and compliance. Accordingly, this communication is not suitable for any other purpose. Edmond, Oklahoma December 15, 2022  INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To Honorable Mayor and Members of the City Council City of Miami, Oklahoma Report on Compliance for Each Major Federal Program We have audited City’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. Basis for Opinion on Each Major Federal 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; and 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). 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 City 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 City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. Auditor’s 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 City’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 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 City’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. www.arledge.cpa   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 City’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 City’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 City’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 on a timely basis. A material weakness in internal control over compliance is a deficiency, or a 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 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 of a federal 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. 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. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 15, 2022 which contained unmodified opinions on those financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic 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 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, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Edmond, Oklahoma December 15, 2022  Miami, City of Schedule of Expenditures of Federal Awards By Grant For the Year Ended June 30, 2022 Federal Grantor/Program or Cluster Title Federal AL Pass‐through Grantor and Number Federal Expenditures($) Number Clean Water State Revolving Fund Cluster-Cluster United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds Oklahoma Water Resource Board, Capitalization Grants for Clean Water State Revolving Funds 66.458 ORF-14-0011-CW 686,209 Total Capitalization Grants for Clean Water State Revolving Funds 686,209 Total United States Environmental Protection Agency 686,209 Total Clean Water State Revolving Fund Cluster-Cluster 686,209 Other Programs Department of Homeland Security Hazard Mitigation Grant (HMGP) Oklahoma Department of Emergency Management, FEMA- Hazard Mitigation Grant (HMGP) 97.039 4256-HMPG 6,000 Oklahoma Department of Emergency Management and Homeland Security, FEMA-4438- Hazard Mitigation Grant (HMGP) 97.039 DR-OK 238,270 Total Hazard Mitigation Grant (HMGP) 244,270 Total Department of Homeland Security 244,270 United States Department of Justice Coronavirus Emergency Supplemental Funding Oklahoma District Attorneys Coronavirus Emergency Supplemental Funding 16.034 Council,20E128 45,061 Total Coronavirus Emergency Supplemental Funding 45,061 Organized Crime Drug Enforcement Task Forces Organized Crime Drug Enforcement Task Forces 16.809 18,390 Total Organized Crime Drug Enforcement Task Forces 18,390 Total United States Department of Justice 63,450 National Endowment for the Humanities Promotion of the Humanities--Federal/State Partnership Oklahoma Humanities Council, Y- Promotion of the Humanities--Federal/State Partnership 45.129 21.319 15,000 Oklahoma Humanities Council, Y- Promotion of the Humanities--Federal/State Partnership 45.129 22.004 1,000 Oklahoma Humanities Council, Y- Promotion of the Humanities--Federal/State Partnership 45.129 22.047 1,000 Total Promotion of the Humanities--Federal/State Partnership 17,000 Grants to States Oklahoma Department of Libraries, Grants to States 45.310 F-22.004 9,000 Oklahoma Department of Libraries, Grants to States 45.310 F-22.104 25,000 Total Grants to States 34,000 Total National Endowment for the Humanities 51,000 Total Other Programs 358,720 Total Expenditures of Federal Awards $ 1,044,929 The accompanying notes are an integral part of this schedule CITY OF MIAMI, OKLAHOMA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2022 NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the City of Miami, Oklahoma (the “City”) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the 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). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE C—INDIRECT COST RATE The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NOTE D—SUBRECIPIENTS During the year ended June 30, 2022, the City did not provide federal awards to subrecipients. NOTE E— SUBSEQUENT EVENTS Management has evaluated subsequent events through December 15, 2022, the date on which the report on schedule of expenditures of federal awards required by the uniform guidance were available to be issued. No items of significance were determined. CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2022 Section I--Summary of Auditor’s Results Financial statements Type of auditor’s report issued on whether the financial statements were in accordance with GAAP: Unmodified Internal control over financial reporting:  Material weakness(es) identified? yes X no  Significant deficiency(ies) identified? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major federal programs:  Material weakness(es) identified? yes X no  Significant deficiency(ies) identified? yes X none reported Type of auditor’s report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes X no Identification of major federal programs: Program CFDA Number Capitalization Grants for Clean Water State Revolving Funds 66.458 Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? yes X no CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Cont’d) For the Year Ended June 30, 2022 SECTION II – FINANCIAL STATEMENT FINDINGS Compliance Findings There are no findings requiring reporting under this section. Internal Control Findings There are no findings requiring reporting under this section. SECTION III – FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Compliance Findings There are no findings requiring reporting under this section. Internal Control Findings There are no findings requiring reporting under this section. CITY OF MIAMI, OKLAHOMA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2022 SECTION II – FINANCIAL STATEMENT FINDINGS Compliance Findings None noted in prior year audit. Internal Control Findings None noted in prior year audit. SECTION III – FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Compliance Findings None noted in prior year audit. Internal Control Findings None noted in prior year audit.