City of MIAMI OK ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2024 THE CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORTS AS OF AND FOR THE FISCAL YEAR ENDED JUNE 30, 2024  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 THIS PAGE INTENTIONALLY LEFT BLANK 2  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 TABLE OF CONTENTS Page Independent Auditor’s Report on Financial Statements…………………………………… 5-7 Management’s Discussion and Analysis……………………………………………………… 9-19 The Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position …………………………………………………………………… 21 Statement of Activities ……………………………………………………………………… 22 Governmental Funds Financial Statements: Balance Sheet ………………………………………………………………………………… 24 Statement of Changes in Fund Balances……………………………………………………… 25 Reconciliation of Governmental Fund and Government-Wide Financial Statements……… 26-27 Proprietary Funds Financial Statements: Statement of Net Position……………………………………………………………………… 29 Statement of Changes in Net Position………………………………………………………… 30 Statement of Cash Flows……………………………………………………………………… 31 Discretely Presented Component Units Combining Financial Statements: Statement of Net Position……………………………………………………………………… 33 Statement of Changes in Net Position………………………………………………………… 34 Footnotes to the Basic Financial Statements ………………………………………………… 35-71 Required Supplementary Information: Budgetary Comparison Information Budgetary Comparison Schedule (Budgetary Basis) – General Fund………………………… 73 Footnotes to Budgetary Comparison Schedule………………………………………………… 74 Pension and OPEB Plan Information Schedules of Pension Information…………………………………………………………… 75-77 Schedule OPEB Information ………………………………………………………………… 78 3  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Supplementary Information: Combining Balance Sheet – General Fund Accounts…………………………………………… 80 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund Accounts ………………………………………………………………………………………… 81 Combining Balance Sheet - Non-Major Governmental Funds………………………………… 82-83 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Non-Major Governmental Funds…………………………………………………………………………… 84-85 Combining Schedule of Net Position – Miami Special Utilities Authority - Enterprise Fund Accounts……………………………………………………………………………………………86 Combining Schedule of Revenues, Expenses and Changes in Net Position– Miami Special Utilities Authority – Enterprise Fund Accounts ………………………………………………………… 87 Combining Schedule of Cash Flows – Miami Special Utilities Authority – Enterprise Fund Accounts………………………………………………………………………………………… 88 Combining Statement of Net Position – Internal Service Funds……………………………….… 89 Combining Statement of Revenues, Expenses and Changes in Net Position– Internal Service Funds…………………………………………………………………………………………….. 90 Combining Statement of Cash Flows – Internal Service Funds………………………………… 91 Combining Statement of Cash Flows – Discretely Presented Component Units ……………… 92 Single Audit and Internal Control and Compliance Information: Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit in Accordance with Government Auditing Standards…………………………………………………………………………………… 95-96 Independent Auditor’s Report on Compliance and Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance……………………………… 97-98 Schedule of Expenditures of Federal Awards …………………………………………………… 99 Schedule of Findings and Questioned Costs………………………………………………… 100-103 Schedule of Prior Year Findings………………………………………………………………104-105 4  INDEPENDENT AUDITOR’S REPORT To the City Council City of Miami, Oklahoma Report on the Audit of the Financial Statements 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 City of Miami, Oklahoma, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Miami, Oklahoma’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Miami, Oklahoma, as of June 30, 2024, 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 represents 14 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Miami, Oklahoma 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. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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 of Miami, Oklahoma’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 accordance with generally accepted auditing standards and Government Auditing 9905 N. May Ave, Oklahoma City, OK 73120 Phone (405) 848-7797 Fax (405) 848-7840 Web address: www.hbc-cpas.com 5 Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Miami, Oklahoma’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 of Miami, Oklahoma’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 schedules, on pages 9-19 and 73-78, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Miami, Oklahoma’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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. In our opinion, the nonmajor governmental combining statements, schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. 9905 N. May Ave, Oklahoma City, OK 73120 Phone (405) 848-7797 Fax (405) 848-7840 Web address: www.hbc-cpas.com 6 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 4, 2025, on our consideration of the City of Miami, Oklahoma’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 the effectiveness of the City of Miami, Oklahoma’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Miami, Oklahoma’s internal control over financial reporting and compliance. Oklahoma City, Oklahoma June 4, 2025 9905 N. May Ave, Oklahoma City, OK 73120 Phone (405) 848-7797 Fax (405) 848-7840 Web address: www.hbc-cpas.com 7  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 THIS PAGE INTENTIONALLY LEFT BLANK 8  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 MANAGEMENT DISCUSSION AND ANALYSIS 9  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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, 2024. Please read it in conjunction with the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS • For the fiscal year ended June 30, 2024, the City’s total net position increased by $1,768,541 or 3.3% from the prior year. • During the year, the City’s expenses for governmental activities were $16.4 million and were funded by program revenues of $2.0 million and further funded with taxes and other general revenues and transfers that totaled $12.6 million. • In the City’s business-type activities, such as utilities, program revenues exceeded expenses by $4.2 million. • At June 30, 2024, the General Fund reported an unassigned fund balance of $1,511,447. 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 12,969 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. The City’s financial reporting entity includes the City of Miami, two blended component units, and four active discretely presented component units. 10  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 the MIDA offices. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. 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: • 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: 11  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 • 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 provides 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, 2024 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 $55,707,407 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, 2024 TABLE 1 NET POSITION (In Thousands) Governmental % Inc. Business-Type % Inc. % Inc. Activities (Dec.) Activities (Dec.) Total (Dec.) 2024 2023 2024 2023 2024 2023 Current assets $ 11,440 $ 14,156 -19% $ 24,523 $ 23,343 5% $ 35,963 $ 37,499 -4% Capital assets, net 27,133 26,677 2% 34,948 33,954 3% 62,081 60,631 2% Total assets 38,573 40,833 -6% 59,471 57,297 4% 98,044 98,130 0% Deferred outflows 3,453 3,330 4% 1,081 1,311 -18% 4,534 4,641 -2% Current liabilities 2,483 2,866 -13% 5,750 5,866 -2% 8,233 8,732 -6% Non-current liabilities 24,328 24,311 0% 11,149 12,407 -10% 35,477 36,718 -3% Total liabilities 26,811 27,177 -1% 16,899 18,273 -8% 43,710 45,450 -4% Deferred inflows 1,886 1,900 -1% 1,275 1,483 -14% 3,161 3,383 -7% Net position Net investment capital assets 17,745 17,690 0% 27,856 27,994 0% 45,601 45,684 0% Restricted 2,682 4,389 -39% 2,759 805 243% 5,441 5,194 5% Unrestricted (deficit) (7,098) (6,993) 2% 11,763 10,053 17% 4,665 3,060 52% Total net position $ 13,329 $ 15,086 -12% $ 42,378 $ 38,852 9% $ 55,707 $ 53,938 3% 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 2024, the net investment in capital assets amounted to $45,601,515. 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, $5,441,388 also represents resources that are subject to external restrictions on how they may be used. The remaining balance of net position is unrestricted amounting to $4,664,504. Explanations of significant changes displayed in Table 1 are as follows: Governmental Activities: Current assets – decreased $2.7 million (19%) mainly due to a reduction in cash from increased operating expenditures and reduced grant revenue. Business-Type Activities: Deferred outflows – decreased $2.3 million (18%) mainly due to a decrease in deferred outflows related to pensions. Non-current liabilities – decreased $1.3 million (10%) mainly due to regular payments on long- term debt Deferred inflows – decreased $2.2 million (14%) mainly due to a decrease in deferred amounts related to pensions. 14  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Changes in Net Position For the year ended June 30, 2024, 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.) 2024 2023 2024 2023 2024 2023 Revenues Charges for service $ 886 $ 1,251 -29% $ 30,438 $ 32,418 -6% $ 31,324 $ 33,669 -7% Operating grants and contributions 1,108 1,107 0% 306 315 -3% 1,414 1,422 -1% Capital grants and contributions 42 1,325 -97% 177 - 100% 219 1,325 -83% Taxes 10,384 10,351 0% - - - 10,384 10,351 0% Intergovernmental revenue 673 1,511 -55% - - - 673 1,511 100% Investment income 41 27 52% 209 79 165% 250 106 136% Miscellaneous 577 304 90% 5 6 -17% 582 310 88% Total revenues 13,711 15,876 -14% 31,135 32,818 -5% 44,846 48,694 -8% Expenses General government 1,798 1,629 10% - - - 1,798 1,629 10% Public safety 7,381 6,672 11% - - - 7,381 6,672 11% Streets 3,709 3,369 10% - - - 3,709 3,369 10% Culture and recreation 2,423 1,805 34% - - - 2,423 1,805 34% Economic development 471 537 -12% - - - 471 537 -12% Interest on debt 619 608 2% - - - 619 608 2% Water - - - 3,084 2,806 10% 3,084 2,806 10% Wastewater - - - 1,936 1,351 43% 1,936 1,351 43% Sanitation - - - 2,531 2,638 -4% 2,531 2,638 -4% Electric - - - 18,619 21,717 -14% 18,619 21,717 -14% Airport - - - 506 452 12% 506 452 12% Total expenses 16,401 14,620 12% 26,676 28,964 -8% 43,077 43,584 -1% Excess (deficiency) before transfers (2,690) 1,256 -314% 4,459 3,854 16% 1,769 5,110 -65% Transfers 932 1,447 -36% (932) (1,447) -36% - - - Change in net position $ (1,758) $ 2,703 -165% $ 3,527 $ 2,407 47% $ 1,769 $ 5,110 -65% Explanations of significant changes in Table 2 are as follows: Governmental Activities: General government- increase $1.1 million (10%) due to an increase in operational expenses. Capital grants and contributions – decrease of $1.3 million (97%) due to a decrease in grant funding Business-Type Activities: Electric expenses – decrease of $3.1 million (14%) due to a decrease in purchase energy expenses. 15  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 Services (Dec.) of Services (Dec.) 2024 2023 2024 2023 General government $ 1,798 $ 1,629 10% $ (1,572) $ (1,224) 28% Public safety 7,381 6,672 11% (6,267) (5,454) 15% Streets 3,710 3,369 10% (3,451) (1,849) 87% Culture, parks and recreation 2,423 1,805 34% (2,033) (1,450) 40% Economic development 471 537 -12% (424) (351) 21% Interest on long-term debt 619 608 2% (619) (608) 2% Total $ 16,401 $ 14,620 12% ($14,365) $ (10,936) 31% For the year ended June 30, 2024, total expenses for governmental activities amounted to approximately $16.4 million which was an increase from the prior year of 12%. See Table 2 above for explanations of changes. Business-type Activities TABLE 4 Net Revenue (Expense) of Business-Type Activities (In Thousands) Net Revenue Total Expense % Inc. (Expense) % Inc. of Services Dec. of Services Dec. 2024 2023 2024 2023 Water $ 3,084 $ 2,806 10% $ 1,015 $ 1,296 -22% Wastewater 1,936 1,351 43% 712 1,242 -43% Sanitation 2,531 2,638 -4% 304 233 30% Electric 18,619 21,717 -14% 2,281 1,283 78% Airport 506 452 12% (68) (284) -76% Total $ 26,676 $ 28,964 -8% $ 4,244 $ 3,770 13% The City’s business-type activities include utility services for water, electricity, wastewater, sanitation, and airport. 16  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 In reviewing the business-type activities net (expense)/revenue, the following highlights should be noted: • Total business-type activities reported net revenues of $4.2 million for the year ended June 30, 2024. A FINANCIAL ANALYSIS OF THE CITY’S FUNDS As the City completed its 2024 fiscal year, the governmental funds reported a combined fund balance of $8.48 million or a 18.0% decrease of $1,862,515. The enterprise funds reported combined net position of $41.2 million or a 9.4% increase from 2023. Fund Balance/Net Position Governmental Funds Proprietary Funds Restricted $ 2,724,548 Net investment in capital assets $ 27,855,998 Committed 105,639 Restricted for debt service and other 2,758,868 Assigned 4,135,461 Unrestricted 10,538,510 Unassigned 1,511,447 Total Fund Balance $ 8,477,095 Total Net Position $ 41,153,376 General Fund Budgetary Highlights For budgetary reporting purposes, the General Fund reported revenues over estimates of $378,784 or 4.1%, while expenditures were under the final appropriations by $1,690,940 or 13.6%. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2024, the City had $62.1 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 increase of $1.5 million or 2.4% from the prior year. TABLE 5 Capital Assets (In Thousands) (Net of accumulated depreciation) Governmental Business-Type Activities Activities Total 2024 2023 2024 2023 2024 2023 Land $ 4,671 $ 4,601 $ 1,452 $ 1,133 6,123 $ 5,734 Buildings 5,366 5,705 6,515 6,820 11,881 12,525 Machinery, furniture and equipment 4,046 3,360 7,461 6,586 11,507 9,946 Infrastructure 12,330 12,555 18,573 18,240 30,903 30,795 Construction in progress 720 456 946 1,176 1,666 1,632 Totals $ 27,133 $ 26,677 $ 34,947 $ 33,955 $ 62,080 $ 60,632 17  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 This year’s more significant capital asset additions placed into service included: Vehicles and other machinery $2,459,773 Street improvements $771,505 See Note 6 to the financial statements for more detailed information on the City’s capital assets and changes therein. Long- Term Debt At year-end, the City had $29.8 million in long-term debt outstanding which represents a $1.0 million decrease, or 3%, from the prior year. The City’s changes in long-term debt by type of debt are as follows: TABLE 6 Long-Term Debt (In Thousands) Governmental Business-Type Activities Activities Total 2024 2023 2024 2023 2024 2023 Accrued absences $ 730 $ 711 $ 223 $ 212 $ 953 $ 923 Revenue Bonds 16,045 16,530 5,755 6,240 21,800 22,770 Bond Premium 105 125 - 5 105 130 Notes Payable- Direct borrowing 1,436 867 5,542 6,114 6,978 6,981 Totals $ 18,316 $ 18,233 $ 11,520 $ 12,571 $ 29,836 $ 30,804 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 2024-2025 budget is expected to remain level with a few exceptions. Any remaining funds from the $2.2M in American Rescue Plan Act (ARPA), associated with the Coronavirus Local Fiscal Recover Funds, received were budgeted per the eligible categories. The continued electric, water, and wastewater utility rates will fund the needed electric, water, and wastewater system improvements The City expects to continue cutting costs necessary to improve its cash position. 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, continue to have a positive impact on our budget capacity. The City continually looks for ways to enhance its revenue base that will assist in completing major infrastructure and development projects. 18  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 when the dam's operational license is renewed. That process started in 2018 and could potentially take several more 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 paid the amount in October 2022. The City opted to allow their sixteen (16) industrial customers to repay their actual usage during this time totaling $1,025,878.70. All industrial customers completed their payments as of October 2023. The City also 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. As of April 2025, approximately 2 months remain to recover the full amount. The City tracks the repayments and will eliminate the PCAX rate once the amount the City paid GRDA has been recovered. 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 19  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE 20  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Statement of Net Position– June 30, 2024 Discretely Presented Primary Government Component Units Governmental Business-type Activities Activities Total ASSETS Cash and equivalents $ 10,285,684 $ 15,551,805 $ 25,837,489 $ 1,352,791 Investments 134,043 1,714,365 1,848,408 103,924 Accounts receivable, net 396,951 3,965,016 4,361,967 - Due from other governments 1,276,713 177,182 1,453,895 - Other receivables 450,503 436 450,939 12,000 Internal balances (1,217,259) 1,217,259 - - Leases receivable - 211,911 211,911 263,892 Inventory - 1,685,349 1,685,349 - Net pension asset 112,949 - 112,949 - Capital Assets Land and construction in progress 5,391,294 2,397,836 7,789,130 637,364 Other capital assets, net of depreciation 21,741,771 32,550,055 54,291,826 7,637,309 Total assets 38,572,649 59,471,214 98,043,863 10,007,280 DEFERRED OUTFLOWS: Deferred amounts related to pensions 2,969,471 814,772 3,784,243 - Deferred amounts related to OPEB 468,648 166,041 634,689 - Deferred amount on refunding 14,794 - 14,794 - Deferred amount related to GRDA settlement - 99,788 99,788 - Total deferred outflows of resources 3,452,913 1,080,601 4,533,514 - LIABILITIES Accounts payable and accrued liabilities 399,407 2,132,492 2,531,899 226,631 Claims liability 771,511 - 771,511 - Accrued interest payable 42,028 92,405 134,433 - Unearned revenue 178,710 1,022,334 1,201,044 - Long-term liabilities Due within one year 1,091,400 2,502,540 3,593,940 84,231 Due in more than one year 24,328,151 11,148,647 35,476,798 - Total liabilities 26,811,207 16,898,418 43,709,625 310,862 DEFERRED INFLOWS: Deferred amounts related to leases - 211,302 211,302 256,472 Deferred amounts related to pensions 820,703 270,120 1,090,823 - Deferred amounts related to OPEB 1,064,929 793,291 1,858,220 - Total deferred inflows of resources 1,885,632 1,274,713 3,160,345 256,472 NET POSITION: Net investment in capital assets 17,745,517 27,855,998 45,601,515 8,196,417 Restricted 2,682,520 2,758,868 5,441,388 - Unrestricted (deficit) (7,099,314) 11,763,818 4,664,504 1,243,529 Total net position $ 13,328,723 $ 42,378,684 $ 55,707,407 $ 9,439,946 See accompanying notes to the basic financial statements. 21  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Statement of Activities –Year Ended June 30, 2024 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 $ 1,798,155 $ 175,757 $ 50,744 $ - $ (1,571,654) $ - $ (1,571,654) $ - Public Safety 7,381,173 363,310 708,792 41,999 (6,267,072) - (6,267,072) - Public Works and Streets 3,708,536 74,838 182,740 - (3,450,958) - (3,450,958) - Culture and Recreation 2,422,595 224,547 165,237 - (2,032,811) - (2,032,811) - Economic Development 470,931 47,111 - - (423,820) - (423,820) - Interest on long-term Debt 619,160 - - - (619,160) - (619,160) - Total governmental activities 16,400,550 885,563 1,107,513 41,999 (14,365,475) - (14,365,475) - Business-type activities Water 3,084,335 3,794,017 305,716 - - 1,015,398 1,015,398 - Wastewater 1,935,643 2,647,940 - - - 712,297 712,297 - Sanitation 2,531,863 2,836,130 - - - 304,267 304,267 - Electric 18,619,254 20,899,819 - - - 2,280,565 2,280,565 - Airport 505,705 260,077 - 177,182 - (68,446) (68,446) - Total business-type activities 26,676,800 30,437,983 305,716 177,182 - 4,244,081 4,244,081 - Total primary government $ 43,077,350 $ 31,323,546 $ 1,413,229 $ 219,181 (14,365,475) 4,244,081 (10,121,394) - Component Units Culture and Recreation $ 634,658 $ 374,186 $ 46,182 $ - (214,290) Economic Development 71,542 93,948 - - 22,406 Total component units $ 706,200 $ 468,134 $ 46,182 $ - (191,884) General revenues: Taxes: Sales and use taxes 9,864,325 - 9,864,325 - Property tax 8,673 - 8,673 - Franchise and public service taxes 306,110 - 306,110 - Hotel/motel taxes 205,077 - 205,077 - Grants and contributions not restricted to specific programs 673,169 - 673,169 - Investment income 41,184 209,106 250,290 7,475 Miscellaneous 577,196 5,095 582,291 - Transfers - internal activity 931,737 (931,737) - - Total general revenues and transfers 12,607,471 (717,536) 11,889,935 7,475 Change in net position (1,758,004) 3,526,545 1,768,541 (184,409) Net position - beginning 15,086,727 38,852,139 53,938,866 9,624,355 Net position - ending $ 13,328,723 $ 42,378,684 $ 55,707,407 $ 9,439,946 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, 2024 BASIC FINANCIAL STATEMENTS - GOVERNMENTAL FUNDS 23  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Governmental Funds Balance Sheet - June 30, 2024 Other Total Governmental Governmental General Fund Funds Funds ASSETS Cash and cash equivalents $ 3,252,380 $ 4,283,920 $ 7,536,300 Receivables: Accounts receivable 301,723 97,298 399,021 Due from other funds 87,654 45,061 132,715 Due from other governments and entities 1,002,807 273,906 1,276,713 Other receivables 7,500 - 7,500 Total assets $ 4,652,064 $ 4,700,185 $ 9,352,249 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 145,055 $ 92,264 $ 237,319 Wages payable 159,287 1,781 161,068 Due to other funds 86,262 38,404 124,666 Total liabilities 390,604 132,449 523,053 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 117,981 234,120 352,101 Fund balances: Restricted - 2,724,548 2,724,548 Commited - 105,639 105,639 Assigned 2,632,032 1,503,429 4,135,461 Unassigned 1,511,447 - 1,511,447 Total fund balances 4,143,479 4,333,616 8,477,095 Total liabilities, deferred inflows and fund balances $ 4,652,064 $ 4,700,185 $ 9,352,249 See accompanying notes to the basic financial statements. 24  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Governmental Funds Statement of Changes in Fund Balances – Year Ended June 30, 2024 Other Total Governmental Governmental General Fund Funds Funds REVENUES Taxes $ 7,758,373 $ 2,465,949 $ 10,224,322 Intergovernmental 904,840 1,029,262 1,934,102 Charges for services 209,890 124,278 334,168 Fines and forfeitures 177,695 - 177,695 Licenses and permits 146,058 - 146,058 Investment income 23,332 17,852 41,184 Miscellaneous 299,423 727,543 1,026,966 Total revenues 9,519,611 4,364,884 13,884,495 EXPENDITURES Current: General government 1,443,511 2,684 1,446,195 Public Safety 7,068,253 249,666 7,317,919 Public works and streets 1,612,893 1,241,395 2,854,288 Culture and recreation 1,498,100 636,942 2,135,042 Economic development 463,837 - 463,837 Capital Outlay - 1,993,965 1,993,965 Debt Service: Principal 165,862 687,309 853,171 Interest and other charges 13,876 537,603 551,479 Total expenditures 12,266,332 5,349,564 17,615,896 Excess (deficiency) of revenues over expenditures (2,746,721) (984,680) (3,731,401) OTHER FINANCING SOURCES (USES) Debt proceeds - 937,149 937,149 Transfers in 10,795,691 500,000 11,295,691 Transfers out (8,745,567) (1,618,387) (10,363,954) Total other financing sources and uses 2,050,124 (181,238) 1,868,886 Net change in fund balances (696,597) (1,165,918) (1,862,515) Fund balances - beginning 4,840,076 5,499,534 10,339,610 Fund balances - ending $ 4,143,479 $ 4,333,616 $ 8,477,095 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, 2024 Reconciliation of Governmental Funds and Government-Wide Financial Statements: Total fund balance, governmental funds $ 8,477,095 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. 27,133,065 Certain long-term assets are not available to pay for current fund liabilities and, therefore, are deferred in the funds. 173,391 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 112,949 Pension related deferred outflows 2,969,471 OPEB related deferred outflows 468,648 Deferred amounts on refunding 14,794 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: Note payable obligations (1,435,532) Interest payable (42,028) Net pension liability (5,676,498) Pension related deferred inflows (820,703) Total OPEB liability (1,427,455) OPEB related deferred inflows (1,064,929) Accrued compensated absences (730,306) Unamortized debt premium (104,760) Revenue bond payable (16,045,000) 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 1,326,521 Net Position of Governmental Activities in the Statement of Net Position $ 13,328,723 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, 2024 Changes in Fund Balances – Changes in Net Position Reconciliation: Net change in fund balances - total governmental funds: $ (1,862,515) 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 2,739,675 Depreciation expense (2,283,916) 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. (233,121) 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 (32,195) 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 proceeds (937,149) Note payable principal payments 368,171 Revenue bond principal payments 485,000 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 (808) Change in accrued compensated absences (19,391) Change in total OPEB liability 78,252 Change in amortization of bond premium 20,276 Change in amortization of unamortized gain/loss (88,767) 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 8,484 Change in net position of governmental activities $ (1,758,004) 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, 2024 BASIC FINANCIAL STATEMENTS - PROPRIETARY FUNDS 28  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Proprietary Funds Statement of Net Position - June 30, 2024 Enterprise Funds Miami Special Utility Internal Authority Airport Fund Total Service Funds ASSETS Current assets: Cash and cash equivalents $ 12,875,405 $ 131,471 $ 13,006,876 $ 2,749,384 Cash and cash equivalents, restricted 2,748,274 - 2,748,274 - Investments 1,509,825 - 1,509,825 134,043 Accounts receivable, net 3,925,482 39,534 3,965,016 - Leases receivables 18,694 - 18,694 - Other receivable 436 177,182 177,618 440,933 Inventory 1,657,238 28,111 1,685,349 - Due from other funds 50,012 30,128 80,140 499,540 Total current assets 22,785,366 406,426 23,191,792 3,823,900 Non-current assets: Cash and cash equivalents, restricted 1,195 - 1,195 - Leases receivables 193,217 - 193,217 - Capital assets: Land, construction in progress, and water rights 2,095,213 302,623 2,397,836 - Other capital assets, net of accumulated depreciation 29,015,066 3,534,989 32,550,055 - Total non-current assets 31,304,691 3,837,612 35,142,303 - Total assets 54,090,057 4,244,038 58,334,095 3,823,900 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pensions 814,772 - 814,772 - Deferred amounts related to OPEB 166,041 - 166,041 - Deferred amounts related to GRDA settlement 99,788 - 99,788 - Total deferred outflow of resources 1,080,601 - 1,080,601 - LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,043,790 16,603 2,060,393 1,020 Claims liability - - - 771,511 Wages payable 71,524 575 72,099 - Due to other funds 86,341 1,848 88,189 499,540 Accrued interest payable 92,405 - 92,405 - Accrued compensated absences 22,241 83 22,324 - Unearned revenue 1,022,334 - 1,022,334 - Refundable deposits 29,148 - 29,148 - Revenue bond payable 500,000 - 500,000 - Notes payable 1,951,068 - 1,951,068 - Total current liabilities 5,818,851 19,109 5,837,960 1,272,071 Non-current liabilities: Accrued compensated absences 200,164 749 200,913 - Net pension liability 1,231,383 - 1,231,383 - Total OPEB liability 607,820 - 607,820 - Refundable deposits 262,335 - 262,335 - Revenue bond payable 5,255,000 - 5,255,000 - Notes payable, net 3,591,196 - 3,591,196 - Total non-current liabilities 11,147,898 749 11,148,647 - Total liabilities 16,966,749 19,858 16,986,607 1,272,071 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases 211,302 - 211,302 - Deferred amounts related to pensions 270,120 - 270,120 - Deferred amounts related to OPEB 793,291 - 793,291 - Total deferred inflow of resources 1,274,713 - 1,274,713 - NET POSITION Net investment in capital assets 24,018,386 3,837,612 27,855,998 - Restricted for debt service 549,919 - 549,919 - Restricted for other purposes 2,208,949 - 2,208,949 - Unrestricted 10,151,942 386,568 10,538,510 2,551,829 Total net position $ 36,929,196 $ 4,224,180 $ 41,153,376 $ 2,551,829 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 1,225,308 Total net position per Government-Wide financial statements $ 42,378,684 See accompanying notes to the basic financial statements. 29  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Proprietary Funds Statement of Changes in Net Position - Year Ended June 30, 2024 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund REVENUES Charges for services $ 29,119,685 $ 265,189 $ 29,384,874 $ 2,168,173 Fees, licenses and permits 132,120 - 132,120 - Miscellaneous 1,058,654 - 1,058,654 160,370 Total operating revenues 30,310,459 265,189 30,575,648 2,328,543 OPERATING EXPENSES Personal services 5,009,363 41,448 5,050,811 - Materials and supplies 13,936,905 151,696 14,088,601 - Other services and charges 4,329,091 22,800 4,351,891 619,059 Insurance claims and expense - - - 1,696,304 Depreciation expense 2,611,614 289,761 2,901,375 - Total operating expenses 25,886,973 505,705 26,392,678 2,315,363 Operating income (loss) 4,423,486 (240,516) 4,182,970 13,180 NON-OPERATING REVENUES (EXPENSES) Investment income 209,106 - 209,106 523 Miscellaneous 212,097 - 212,097 - Capital grant - 177,182 177,182 - Interest expense and fiscal charges (328,292) - (328,292) - Total non-operating revenue (expenses) 92,911 177,182 270,093 523 Income (loss) before transfers 4,516,397 (63,334) 4,453,063 13,703 Transfers in 10,348,830 300,000 10,648,830 - Transfers out (11,580,567) - (11,580,567) - Change in net position 3,284,660 236,666 3,521,326 13,703 Total net position - beginning 33,644,536 3,987,514 37,632,050 2,538,126 Total net position - ending $ 36,929,196 $ 4,224,180 $ 41,153,376 $ 2,551,829 Change in net position above 3,521,326 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 5,219 Change in Business-Type Activities in Net Position per Government-Wide Financial Statements $ 3,526,545 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, 2024 Proprietary Funds Statement of Cash Flows - Year Ended June 30, 2024 Enterprise Funds Miami Special Utility Internal Service Authority Airport Fund Total Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 30,298,427 260,418 $ 30,558,845 $ 2,328,049 Payments to suppliers (18,775,379) (167,899) (18,943,278) (627,196) Payments to employees (4,829,513) (42,236) (4,871,749) - Receipts from other funds 1,214,343 - 1,214,343 - Payments to other funds (703,744) - (703,744) - Receipts of customer meter deposits 115,936 - 115,936 - Refunds of customer meter deposits (132,325) - (132,325) - Claims and judgments paid - - - (1,487,353) Net cash provided by operating activities 7,187,745 50,283 7,238,028 213,500 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 10,348,830 300,000 10,648,830 - Transfers to other funds (11,580,567) - (11,580,567) - Net cash provided by (used in) noncapital financing activities (1,231,737) 300,000 (931,737) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (2,260,692) (289,762) (2,550,454) - Principal paid on debt (2,401,006) - (2,401,006) - Interest and fiscal agent fees paid on debt (345,224) - (345,224) - Net cash provided by (used in) capital and related financing activities (5,006,922) (289,762) (5,296,684) - CASH FLOWS FROM INVESTING ACTIVITIES Sale (Purchase) of investments - - - (523) Interest and dividends 171,664 - 171,664 523 Net cash provided by (used in) investing activities 171,664 - 171,664 - Net increase in cash and cash equivalents 1,120,750 60,521 1,181,271 213,500 Balances - beginning of year 14,504,124 70,950 14,575,074 2,535,884 Balances - end of year $ 15,624,874 $ 131,471 $ 15,756,345 $ 2,749,384 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 12,875,405 $ 131,471 $ 13,006,876 $ 2,749,384 Restricted cash and cash equivalents - current 2,748,274 - 2,748,274 - Restricted cash and cash equivalents - noncurrent 1,195 - 1,195 - Total cash and cash equivalents, end of year $ 15,624,874 $ 131,471 $ 15,756,345 $ 2,749,384 - Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 4,423,486 $ (240,516) $ 4,182,970 $ 13,180 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 2,611,614 289,761 2,901,375 - Other nonoperating revenue 212,097 - 212,097 - Change in assets, liabilities and deferrals: Receivables, net 63,005 (4,771) 58,234 (494) Leases receivable 18,582 - 18,582 Due from other funds 905,205 - 905,205 - Inventory 152,847 (4,431) 148,416 - Deferred outflows related to pension 208,081 - 208,081 - Deferred outflows related to OPEB 22,478 - 22,478 - Accounts payable (604,770) 11,028 (593,742) (8,713) Claims liability - - - 209,527 Due to other funds (394,606) - (394,606) - Due to employees 15,108 (154) 14,954 - Unearned revenue (305,716) Refundable deposits (16,389) - (16,389) - Total OPEB liability (128,533) - (128,533) - Net pension liability 201,746 - 201,746 - Accrued compensated absences 11,411 (634) 10,777 - Deferred inflows related to pension (187,449) - (187,449) - Deferred inflows related to leases (19,209) - (19,209) Deferred inflows related to OPEB (1,243) - (1,243) - Net cash provided by operating activities $ 7,187,745 $ 50,283 $ 7,238,028 $ 213,500 Noncash activities: Assets acquired with debt 1,344,433 - 1,344,433 - $ 1,344,433 $ - $ 1,344,433 $ - 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, 2024 BASIC FINANCIAL STATEMENTS – DISCRETELY PRESENTED COMPONENT UNITS 32  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Discretely Presented Component Units Combining Statement of Net Position - June 30, 2024 MCFA MDRA MIDA MIPFA Total ASSETS Current assets: Cash and cash equivalents $ 249,517 $ 627,696 $ 218,993 $ 256,585 $ 1,352,791 Investments 103,924 - - - 103,924 Receivables: Leases receivable - - - 7,756 7,756 Other receivable 12,000 - - - 12,000 Total current assets 365,441 627,696 218,993 264,341 1,476,471 Non-current assets: Leases receivable - - - 256,136 256,136 Capital assets: Land, construction in progress, and water rights 286,573 - 102,570 248,221 637,364 Other capital assets, net of accumulated depreciation 6,800,723 - 642,724 193,862 7,637,309 Total non-current assets 7,087,296 - 745,294 698,219 8,530,809 Total assets 7,452,737 627,696 964,287 962,560 10,007,280 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 196,011 29,120 - 1,500 226,631 Accrued compensated absences - 5,734 - - 5,734 Accrued interest on notes payable - - 240 - 240 Notes payable - - 78,257 - 78,257 Total liabilities 196,011 34,854 78,497 1,500 310,862 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases - - - 256,472 256,472 NET POSITION Net investment in capital assets 7,087,296 - 667,038 442,083 8,196,417 Unrestricted 169,430 592,842 218,752 262,505 1,243,529 Total net position $ 7,256,726 $ 592,842 $ 885,790 $ 704,588 $ 9,439,946 See accompanying notes to the basic financial statements. 33  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Discretely Presented Component Units Combining Statement of Changes in Net Position - Year Ended June 30, 2024 MCFA MDRA MIDA MIPFA Total REVENUES Charges for services $ 113,380 $ 260,806 $ 71,774 $ 21,674 $ 467,634 Miscellaneous - - 500 - 500 Total operating revenues 113,380 260,806 72,274 21,674 468,134 OPERATING EXPENSES Personal services - 168,199 - - 168,199 Materials and supplies 1,000 33,421 - 5,597 40,018 Other services and charges 58,091 133,493 10,180 3,944 205,708 Depreciation expense 240,454 - 20,727 27,156 288,337 Total operating expenses 299,545 335,113 30,907 36,697 702,262 Operating income (loss) (186,165) (74,307) 41,367 (15,023) (234,128) NON-OPERATING REVENUES (EXPENSES) Investment income 2,088 766 1 4,620 7,475 Miscellaneous income - 46,182 - - 46,182 Interest expense and fiscal charges - - (3,938) - (3,938) Total non-operating revenue (expenses) 2,088 46,948 (3,937) 4,620 49,719 Income (loss) before transfers (184,077) (27,359) 37,430 (10,403) (184,409) Transfers in from primary government 57,687 487,228 - - 544,915 Transfers out to primary government - (11,695) - - (11,695) Change in net position (126,390) 448,174 37,430 (10,403) 348,811 Total net position - beginning 7,383,116 144,668 848,361 714,991 9,091,136 Total net position - ending $ 7,256,726 $ 592,842 $ 885,790 $ 704,588 $ 9,439,946 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, 2024 FOOTNOTES TO BASIC FINANCIAL STATEMENTS 35  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 12,969 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 ends July 31. Miami Education Facilities Authority (MEFA) – public trust that promotes the development of educational facilities within the city. Trust is currently inactive. 36  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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, and 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 funds report their activities on the modified accrual basis of accounting and current financial resources 37  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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. 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, S&L Fiscal Recovery Fund, 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. 38  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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. • Worker’s 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 include 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, 2024, by these entities are as follows: 39  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Maturities in Years Fair Credit On Less Type Value Rating Demand Than One Demand deposits $ 23,038,014 N/A $ 23,038,014 $ - Time deposits 1,848,408 N/A - 1,848,408 Money Market Funds 2,799,475 Not rated - 2,799,475 Sub-Total $ 27,685,897 $ 23,038,014 $ 4,647,883 Reconciliation to Financial Statements: Cash and cash equivalents $ 25,837,489 Investments 1,848,408 $ 27,685,897 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, 2024: • Money Market Mutual Funds of $2,799,475 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, 2024, the City was not exposed to custodial credit risk. Component Unit: The bank deposits of the MDRA component unit of $627,696 at June 30, 2024 were fully insured by the F.D.I.C. The bank deposits of the MCFA component unit of $365,441 at June 30, 2024 were fully insured. The bank deposits of the MIPFA component unit of $264,641 at June 30, 2024 were fully insured by the F.D.I.C. The bank deposits of the MIDA component unit of $218,993 at June 30, 2024 were fully insured by the F.D.I.C. 40  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 evidence 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, 2024, the investments held by the City mature between 2024 through 2025. 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, 2024. 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, 2024, are as follows: Cash and cash equivalents: Cash Restricted for Refundable deposits $ 291,510 Money Markets Restricted for Debt Service 2,456,764 $ 2,748,274 Cash and cash equivalents, noncurrent: Cash Restricted for Refundable deposits 1,195 $ 1,195 41  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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: Taxes 1,360,941 $ - $ 1,360,941 Court fines 698,701 (566,124) 132,577 Grants receivable 10,000 - 10,000 Other 620,649 - 620,649 Total Governmental Activities $ 2,690,291 $ (566,124) $ 2,124,167 Reconciliation to Statement of Net Position: Accounts receivable, net $ 396,951 Due from other governmental agencies 1,276,713 Other receivable 450,503 Total $ 2,124,167 Business-Type Activities: Utilities $ 6,498,873 $ (2,533,857) $ 3,965,016 5. Leases Receivable 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. 42  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 $20,952. 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 $13,868. 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, 2024, capital assets balances changed as follows: Balance at Transfers/ Balance at July 1, 2023 Additions Deductions June 30, 2024 PRIMARY GOVERNMENT: Governmental activities: Capital assets not being depreciated: Land $ 4,601,374 $ 69,600 $ - $ 4,670,974 Construction in progress 455,755 507,023 242,458 720,320 Total capital assets not being depreciated 5,057,129 576,623 242,458 5,391,294 Other capital assets: Buildings 23,180,501 - - 23,180,501 Infrastructure 48,367,461 1,064,453 - 49,431,914 Machinery, furniture and equipment 14,722,167 1,341,057 31,480 16,031,744 Total other capital assets at historical cost 86,270,129 2,405,510 31,480 88,644,159 Less accumulated depreciation for: Buildings 17,475,597 338,666 - 17,814,263 Infrastructure 35,812,232 1,289,797 - 37,102,029 Machinery, furniture and equipment 11,362,123 655,453 31,480 11,986,096 Total accumulated depreciation 64,649,952 2,283,916 31,480 66,902,388 Other capital assets, net 21,620,177 121,594 - 21,741,771 Governmental activities capital assets, net $ 26,677,306 $ 698,217 $ 242,458 $ 27,133,065 43  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Balance at Transfers/ Balance at July 1, 2023 Additions Deductions June 30, 2024 Business-type activities: Capital assets not being depreciated: Land $ 1,133,051 $ 318,870 $ - $ 1,451,921 Construction in progress 1,175,555 720,612 950,252 945,915 Total capital assets not being depreciated 2,308,606 1,039,482 950,252 2,397,836 Other capital assets: Buildings and improvement 21,098,912 155,350 - 21,254,262 Machinery, furniture and equipment 23,087,941 1,997,855 - 25,085,796 Infrastructure 37,939,762 1,652,452 - 39,592,214 Total other capital assets at historical cost 82,126,615 3,805,657 - 85,932,272 Less accumulated depreciation for: Buildings and improvement 14,279,116 460,570 - 14,739,686 Machinery, furniture and equipment 16,501,778 1,122,883 - 17,624,661 Infrastructure 19,699,948 1,317,922 - 21,017,870 Total accumulated depreciation 50,480,842 2,901,375 - 53,382,217 Other capital assets, net 31,645,773 904,282 - 32,550,055 Business-type activities capital assets, net $ 33,954,379 $ 1,943,764 $ 950,252 $ 34,947,891 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 $ 251,673 Public Safety 251,133 Streets 1,424,079 Culture and Recreation 357,031 Total $ 2,283,916 Business-Type Activities: Airport $ 289,761 Electric 1,137,351 Water 588,969 Wastewater 538,664 Sanitation 346,630 Total $ 2,901,375 44  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Capital assets of the component units were: MIDA Balance at Balance at August 1, 2023 Additions Deductions July 31, 2024 Capital assets not being depreciated: Land $ 102,570 $ - $ - $ 102,570 Total capital assets not being depreciated 102,571 - - 102,570 Other capital assets: Buildings and utility infrastructure 1,036,352 - - 1,036,352 Less accumulated depreciation for: Buildings and utility infrastructure 372,901 20,727 - 393,628 Other capital assets, net 704,906 (20,727) - 642,724 MIDA capital assets, net $ 807,477 $ (20,727) $ - $ 745,294 MIPFA Balance at Balance at July 1, 2023 Additions Deductions June 30, 2024 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 Machinery, furniture and equipment 185,585 - - 185,585 Total other capital assets at historical cost 756,509 - - 756,509 Less accumulated depreciation for: Buildings 412,993 19,683 - 432,676 Machinery, furniture and equipment 122,496 7,475 - 129,971 Total accumulated depreciation 535,489 27,158 - 562,647 Other capital assets, net 221,020 (27,158) - 193,862 MIPFA capital assets, net $ 469,241 $ (27,158) $ - $ 442,083 MCFA Balance at Balance at July 1, 2023 Additions Deductions June 30, 2024 MCFA - Discreetly Presented Component unit Capital assets not being depreciated: Construction in progress $ - $ 286,573 $ - $ 286,573 Total capital assets not being depreciated - 286,573 - 286,573 Other capital assets: Buildings $ 8,851,208 $ - $ - $ 8,851,208 Machinery, furniture and equipment - 40,411 - 40,411 Total other capital assets at historical cost 8,851,208 40,411 - 8,891,619 Less accumulated depreciation for: Buildings 1,850,442 238,433 - 2,088,875 Machinery, furniture and equipment - 2,021 - 2,021 Total accumulated depreciation 1,850,442 240,454 - 2,090,896 Other capital assets, net 7,000,766 (200,043) - 6,800,723 MCFA capital assets, net $ 7,000,766 $ 86,530 $ - $ 7,087,296 45  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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. Receivable Fund Payable Fund Amount Nature of Interfund 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 * 49,477 Posting correction Airport Fund * General Fund * 30,128 Posting correction Workers Compensation Fund Health Insurance Fund 499,540 deposit to the wrong fund Total $ 712,395 * Denotes major fund. Due From Due To Net Internal Reconciliation to Fund Financial Statements: Other Funds Other Funds Balances Governmental Funds $ 132,715 $ (124,666) $ 8,049 Proprietary Funds 80,140 (88,189) (8,049) Internal Service Funds 499,540 (499,540) - Total $ 712,395 $ (712,395) $ - Reconciliation to Statement of Net Position: Net Internal Balances $ (8,049) Internal Service Fund Activity reported in Business-type Activities 1,225,308 Net Internal Balance $ 1,217,259 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, 2024, were as follows: Transfer In Transfer Out Amount Nature of Interfund Transfer General Fund * MSUA $ 10,730,567 Operating subsidy/pledged sales tax General Fund * MSUA 50,000 Operating subsidy Street and alley * MSUA 500,000 Operating subsidy Grants and Donations- Governmental * MSUA 1,603,263 Grant and donation funds Grants and Donations- Governmental * General Fund 15,124 Revenue transfer Airport Fund * MSUA 300,000 Operating subsidy MSUA * General Fund 8,745,567 Operating subsidy/pledged sales tax $ 21,944,521 Transfers to Transfers from Net Reconciliation to fund financial statements: Other Funds Other Funds Transfers Governmental Funds $ (10,363,954) $ 11,295,691 $ 931,737 Enterprise Funds (11,580,567) 10,648,830 (931,737) Totals $ (21,944,521) $ 21,944,521 $ - 46  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 9. Long-Term Obligations The City’s long-term obligations consist of revenue bonds and notes, capital lease obligations, accrued compensated absences and long-term deposits subject to refund. For the year ended June 30, 2024, the City’s long-term obligation balances changed as follows: Primary Government: Balance Balance Due Within Type of Debt July 1, 2023 Additions Deductions June 30, 2024 One Year Governmental Activities: Revenue Bond Premium $ 125,036 $ - $ 20,276 $ 104,760 $ - Revenue Bonds 16,530,000 - 485,000 16,045,000 495,000 Notes Payable - direct borrowings 866,555 937,149 368,172 1,435,532 523,369 Accrued Compensated Absences 710,916 19,390 - 730,306 73,031 Total Governmental Activities $ 18,232,507 $ 956,539 $ 873,448 18,315,598 1,091,400 Plus: Total OPEB liability 1,427,455 - Net pension liability 5,676,498 - $ 25,419,551 $ 1,091,400 Reconcilation to Statement of Net Position: Due within one year $ 1,091,400 Due in more than one year 24,328,151 $ 25,419,551 Balance Balance Due Within Type of Debt July 1, 2023 Additions Deductions June 30, 2024 One Year Business-Type Activities: Notes Payable - Direct borrowings $ 6,113,838 $ 1,344,433 $ 1,916,007 $ 5,542,264 $ 1,951,068 Unamortized Bond Premium 5,173 - 5,173 - - Revenue Bonds 6,240,000 - 485,000 5,755,000 500,000 Accrued Compensated Absences 212,460 10,777 - 223,237 22,324 Total Business-Type Activities $ 12,571,471 $ 1,355,210 $ 2,406,180 11,520,501 2,473,392 Plus: Total OPEB liability 607,820 - Net pension liability 1,231,383 - Refundable deposits 291,483 29,148 $ 13,651,187 $ 2,502,540 Reconcilation to Statement of Net Position: Due within one year $ 2,502,540 Due in more than one year 11,148,647 $ 13,651,187 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. $16,045,000 47  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Current portion $495,000 Non-current portion $15,550,000 $16,045,000 Notes Payable – Direct Borrowings: $304,491 note payable 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. $143,452 $311,328 note payable for the purchase of fire pumper truck, matures August 2027 with a stated interest rate of 2.14%. If the City defaults, the collateralized equipment will be returned to the lender. 143,992 $255,638 note payable 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. 51,967 $65,495 note payable for the purchase of excavator, matures October 2027 with a stated interest rate of 3.91%. If the City defaults, the collateralized equipment will be returned to the lender. 46,136 $31,776 note payable for the purchase of Ford Explorer, matures December 2025 with a stated interest rate of 3.81%. If the City defaults, the collateralized equipment will be returned to the lender. 15,462 $67,714 note payable for the purchase of 2024 Ford F250, matures May 2027 with a stated interest rate of 4.94%. If the City defaults, the collateralized equipment will be returned to the lender. 62,065 $65,813 note payable for the purchase of 2023 Ford Explorer, matures March 2027 with a stated interest rate of 5.15%. If the City defaults, the collateralized equipment will be returned to the lender. 60,712 $65,813 note payable for the purchase of 2023 Ford Explorer, matures March 2027 with a stated interest rate of 5.15%. If the City defaults, the collateralized equipment will be returned to the lender. 60,712 $65,813 note payable for the purchase of 2023 Ford Explorer, matures March 2027 with a stated interest rate of 5.15%. If the City defaults, the collateralized equipment will be returned to the lender. 60,712 $54,060 note payable for the purchase of 2023 Dodge Ram, matures July 2026 with a stated interest rate of 4.76%. If the City defaults, the collateralized equipment will be returned to the lender. 38,352 $178,025 note payable for the purchase of John Deere Cab Tractor, matures September 2028 with a stated interest rate of 4.85%. If the City defaults, the collateralized equipment will be returned to the lender. 151,772 $63,051 note payable for the purchase of 2024 Ford F250, matures February 2027 with a stated interest rate of 4.74%. If the City defaults, the collateralized equipment will be returned to the lender. 56,479 48  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 $51,761 note payable for the purchase of Ford F350, matures February 2027 with a stated interest rate of 4.74%. If the City defaults, the collateralized equipment will be returned to the lender. 46,366 $329,100 note payable for the purchase of 2024 Freightliner M2 106 and Tyco Model 600 Street Sweeper, matures March 2029 with a stated interest rate of 4.61%. If the City defaults, the collateralized equipment will be returned to the lender. 314,432 $55,427 note payable for the purchase of a Ford Interceptor, matures December 2025 with a stated interest rate of 4.30%. If the City defaults, the collateralized equipment will be returned to the lender. 28,576 $55,427 note payable for the purchase of a Ford Interceptor, matures December 2025 with a stated interest rate of 4.30%. If the City defaults, the collateralized equipment will be returned to the lender. 28,576 $55,427 note payable for the purchase of a Ford Interceptor, matures December 2025 with a stated interest rate of 4.30%. If the City defaults, the collateralized equipment will be returned to the lender. 28,576 $200,000 note payable for the purchase of a wheel loader, matures November 2025 with a stated interest rate of 3.8%. If the City defaults, the collateralized equipment will be returned to the lender. 97,193 Total notes payable $1,435,532 Current portion $523,369 Non-current portion 912,163 $1,435,532 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. $5,755,000 Current portion $500,000 Non-current portion 5,255,000 Total Revenue Bonds Payable $5,755,000 Notes Payable – Direct Borrowings: 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. 137,922 49  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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. 20,999 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. 1,969,844 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 enforce action in action of parties under provisions of the indenture, security agreement or lease agreement. 1,190,845 $407,674 note payable for the purchase of a 2023 Crane, matures February 2027, with a stated interest rate of 4.85%. If the Authority defaults, the collateralized equipment will be returned to the lender. 364,388 $303,168 note payable for the purchase of a 2023 Freightliner, matures August 2026, with a stated interest rate of 4.85%. If the Authority defaults, the collateralized equipment will be returned to the lender. 223,342 $77,623 note payable for the purchase of a 2023 Hyundai Excavator R60CR-9A, matures May 2026, with a stated interest rate of 4.85%. If the Authority defaults, the collateralized equipment will be returned to the lender. 57,177 $198,160 note payable for the purchase of a 2022 Brooks Brothers Trailer, matures August 2026, with a stated interest rate of 4.85%. If the Authority defaults, the collateralized equipment will be returned to the lender. 145,697 $255,466 note payable for the purchase of a 2023 Altec Bucket Truck, matures January 2027, with a stated interest rate of 4.97%. If the Authority defaults, the collateralized equipment will be returned to the lender. 222,242 $102,342 note payable for the purchase of a Caterpillar Mini Excavator, matures January 2027, with a stated interest rate of 4.97%. If the Authority defaults, the collateralized equipment will be returned to the lender. 89,032 50  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 $286,418 note payable for the purchase of a digger derrick, matures April 2026, with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 179,395 $174,200 note payable for the purchase of a telescopic ariel device, matures April 2026 with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 109,126 $346,196 note payable for the purchase of a freightliner with digger, matures April 2026 with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 217,198 $424,300 note payable for the purchase of a vacuum truck, matures April 2026 with a stated interest rate of 4.84%. If the Authority defaults, the collateralized equipment will be returned to the lender. 261,632 $314,092 note payable for the purchase of a cat wheel loader, matures December 2029 with a stated interest rate of 4.01%. If the Authority defaults, the collateralized equipment will be returned to the lender. 246,911 $129,393 note payable for the purchase of a backhoe, matures November 2027 with a stated interest rate of 3.91%. If the Authority defaults, the collateralized equipment will be returned to the lender. 91,051 $31,776 note payable for the purchase of a Ford explorer, matures December 2025 with a stated interest rate of 3.81%. If the Authority defaults, the collateralized equipment will be returned to the lender. 15,462 Total Notes Payable – Direct Borrowings $5,542,264 Current portion $1,951,068 Non-current portion 3,591,195 $5,542,264 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 2025 $ 495,000 $ 499,388 $ 523,369 $ 63,952 2026 505,000 489,388 412,555 56,103 2027 515,000 479,188 311,471 48,904 2028 525,000 468,394 123,874 48,073 2029 535,000 456,731 64,263 79 2030-2034 550,000 2,194,781 - - 2035-2039 4,435,000 1,744,750 - - 2040-2044 3,925,000 1,006,875 - - 2045-2049 4,560,000 356,250 - - Total $ 16,045,000 $ 7,695,745 $ 1,435,532 $ 217,111 51  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Business-Type Activities Notes Payable-Direct Borrowings Revenue Bonds Payable Year Ending June 30, Principal Interest Principal Interest 2025 $ 1,951,068 $ 188,162 500,000 $ 188,175 2026 1,239,370 128,630 515,000 173,175 2027 580,848 94,175 530,000 157,725 2028 365,805 83,282 545,000 141,825 2029 359,146 76,004 560,000 125,475 2030-2034 1,622,461 293,143 3,105,000 333,375 2035-2039 1,706,250 155,854 - 2040-2041 944,750 25,999 - - Amount to be drawn (3,227,435) - - - Total $ 5,542,264 $ 1,045,249 $ 5,755,000 $ 1,119,750 MDRA Debt: Balance Balance Due Within Type of Debt July 1, 2023 Additions Deductions June 30, 2024 One Year Component Unit: Accrued Compensated Absences $ 3,440 $ 2,294 $ - $ 5,734 $ 573 Total MDRA $ 3,440 $ 2,294 $ - $ 5,734 $ 573 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% due on demand $43,279 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%, due on demand 26,665 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%, due on demand 8,313 Total debt outstanding – MIDA $78,257 Balance Balance Due Within Type of Debt July 1, 2023 Additions Deductions June 30, 2024 One Year Component Unit: MIDA Note payable (direct borrowings) $ 144,006 $ - $ 65,749 $ 78,257 $ - 52  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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, 2019, 2014 CWSRF, and 2019 DWSRF promissory notes payable. Proceeds from the notes provided financing for capital assets. The notes are payable from net utility revenues and are payable through 2042. The total principal and interest payable for the remainder of the life of these notes is $7,446,867. Net utility revenues received in the current year were $8,977,495. Debt service payments of $1,308,157 for the current fiscal year were 14.6% of pledged net utility revenues. Pledged Sales Tax – The City has pledged 3.65 cents (or 100%) of future sales tax revenues to repay $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 2016 bonds refinanced the 2010 bonds that were originally for street purposes and the 2013 bond anticipation note for the stadium construction. The 2018 bonds were for capital improvements. 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 2046 and 2033, respectively. The total principal and interest payable for the remainder of the life of these bonds is $31,609,681. Pledged sales taxes received in the current year were $8,745,567. Net revenues and sales tax pledged during the year was $17,723,062. Debt service payments of $2,080,603 for the current fiscal year were 11.7% 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. 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, 2024 net position restricted by enabling legislation totaled $257,058. 53  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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: Other General Governmental Fund Funds Total Fund Balance: Restricted For: Police operations - grants $ - $ 79,845 $ 79,845 General obligation debt service - 207,042 207,042 Capital improvements - 246,266 246,266 Street improvements - 1,498,317 1,498,317 Culture and rec programs - 335,250 335,250 Economic development - 91,716 91,716 Grant fund 189,029 189,029 Police - drug programs - 77,083 77,083 Sub-total restricted - 2,724,548 2,724,548 Committed for: Street operations - 105,639 105,639 Assigned for: Capital improvements - 1,503,429 1,503,429 Demolition 299,236 - 299,236 Supplement next year's budget 2,332,796 - 2,332,796 Sub-total assigned 2,632,032 1,503,429 4,135,461 Unassigned 1,511,447 - 1,511,447 TOTAL FUND BALANCE $ 4,143,479 $ 4,333,616 $ 8,477,095 54  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 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, 2024, 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 55  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 occurrence with the exceptions of classifications of electric, fire, and police who have a $750,000 specific retention • 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 specific deductible stop-loss policy which covers individual claims in excess of $75,000. Aggregate excess loss insurance 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, 2022 $ 534,581 $ 140,755 $ - $ 675,336 Claims and changes in estimates 25,779 1,453,373 9,181 1,488,333 Claims payments (73,252) (1,519,252) (8,605) (1,601,109) Claim liability, June 30, 2023 $ 487,108 $ 74,876 $ 576 $ 562,560 Claims and changes in estimates 198,091 1,490,891 7,322 1,696,304 Claims payments (112,507) (1,367,894) (6,952) (1,487,353) Claim liability, June 30, 2024 $ 572,692 $ 197,873 $ 946 $ 771,511 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, 2024: Governmental Business Type Total Deferred Outflows: Police Pension $ 1,070,430 $ - $ 1,070,430 Fire Pension 1,019,683 - 1,019,683 OkMRF 879,358 814,772 1,694,130 Total $ 2,969,471 $ 814,772 $ 3,784,243 Deferred Inflows: Police Pension $ 233,251 $ - $ 233,251 Fire Pension 340,867 - 340,867 OkMRF 246,585 270,120 516,705 Total $ 820,703 $ 270,120 $ 1,090,823 Net Pension Liability: Fire Pension $ 4,383,865 $ - $ 4,383,865 OkMRF 1,292,633 1,231,383 2,524,016 Total $ 5,676,498 $ 1,231,383 $ 6,907,881 Net Pension Asset: Police Pension $ 112,949 $ - $ 112,949 Total $ 112,949 $ - $ 112,949 56  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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. B. Eligibility Factors and Benefit Provisions As of 07/01/23 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 57  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 129 Deferred Vested Former Employees 21 Retirees or Retiree Beneficiaries 85 Total 235 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, 2023. For the year ended June 30, 2024, the City recognized $869,627 of employer contributions to the plan which is in excess of the actuarially determined amount by $181,664 based on covered payroll of $6,558,265. Employees contribute 4.50% to the plan in accordance with the plan provisions adopted by the City Council. Employee contributions for fiscal 2024 were $295,094. Actuarial Assumptions Date of Last Actuarial Valuation July 1, 2023 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 58  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 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, 2023 are summarized in the following table: 59  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Target Real Weighted Allocation Return Return Large cap stocks 25% 4.55% 1.14% S&P 500 Small/mid cap stocks 10% 5.00% 0.50% Russell 2500 Long/short equity 5% 6.05% 0.30% MSCI ACWI International stocks 25% 6.20% 1.24% MSCI EAFE Fixed income bonds 20% 2.55% 0.51% Barclay's Capital Aggregate Real estate 15% 4.95% 0.74% NCREIF Cash equivalents 0% 15.00% 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, 2023 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, 2023 and the City’s report ending date of June 30, 2024, that would have had a significant 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 $ 14,715,420 $ 12,718,692 $ 1,996,728 Changes for the Year: Service cost 391,099 - 391,099 Interest expense 1,065,973 - 1,065,973 Experience losses (gains) - 40,086 - 40,086 (amortized over avg remain svc period of actives & inactive) Changes of assumptions - - - Contributions--City - 795,247 (795,247) Contributions--members - 247,681 (247,681) Net investment income - 1,164,089 (1,164,089) Benefits paid (1,023,383) (1,023,383) - Plan administrative expenses - (28,327) 28,327 Benefit changes due to plan amendments 1,208,820 - 1,208,820 Change in deferred contributions made subsequent to the measurement date - - - Net Changes 1,682,595 1,155,307 527,288 Balances End of Year $ 16,398,015 $ 13,873,999 $ 2,524,016 60  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 $ 4,543,479 $ 2,524,016 $ 854,477 The City reported $1,336,524 in pension expense for the year ended June 30, 2024. At June 30, 2024, 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 $ - $ 250,784 Net difference between projected and actual earnings - 180,980 Changes in assumptions 724,682 - Changes in proportion and differences between City contributions and proportionate share of contributions 65,057 65,079 City contributions during measurement date 34,764 19,862 City contributions subsequent to the measurement date 869,627 - Total $ 1,694,130 $ 516,705 The $869,627 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, 2025. Any 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: 2025 (130,370) 2026 (56,739) 2027 535,293 2028 (40,386) 2029 - $ 307,798 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 61  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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. 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 $187,949. The State of Oklahoma also made on- behalf contributions to FPRS in the amount of $694,233 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 $388,326. These on-behalf payments did not meet the criteria of a special funding situation. 62  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2024, the City reported a liability of $4,383,865 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2023. 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, 2023. Based upon this information, the City’s proportion was .3398%. For the year ended June 30, 2024, the City recognized pension expense of $586,173. At June 30, 2024, 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 $ 521,363 $ 5,566 Changes of assumptions - 7,029 Net difference between projected and actual earnings on pension plan investments 289,199 - Changes in proportion 16,672 325,345 Contributions during the measurement date 4,500 2,927 Contributions subsequent to the measurement date 187,949 - Total $ 1,019,683 $ 340,867 In the year ending June 30, 2024, $187,949 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: 2025 $ 121,609 2026 (2,278) 2027 414,141 2028 (42,605) 2029 - Total $ 490,867 Actuarial Assumptions- The total pension liability was determined by an actuarial valuation as of July 1, 2023, 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, 2023, valuation were based on the results of an actuarial experience study for the period July 1, 2013, to June 30, 2018. 63  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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, 2023, are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Fixed income 20% 5.80% Domestic equity 47% 9.49% International equity 15% 11.55% Real estate 10% 8.48% Other assets 8% 6.47% 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. 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 $ 5,712,365 $ 4,383,865 $ 3,272,887 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. 64  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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. 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 $171,951. The State of Oklahoma also made on- behalf contributions to OPPRS in the amount of $180,713 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 $164,416. 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, 2024, the City reported an asset of $112,949 for its proportionate share of the net pension asset. The net pension asset was measured as of June 30, 2023, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of July 1, 2023. 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, 2023. Based upon this information, the City’s proportion was .3698%. For the year ended June 30, 2024, the City recognized pension expense of $308,394. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 65  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience $ 309,199 $ 17,419 Changes of assumptions - 210,832 Net difference between projected and actual earnings on pension plan investments 559,618 - Changes in proportion 28,312 3,610 Contributions during measurement date 1,350 1,390 Contributions subsequent to the measurement date 171,951 - Total $ 1,070,430 $ 233,251 In the year ending June 30, 2024, $171,951 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, or addition to, the net pension liability (asset) 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: 2025 $ 111,581 2026 7,169 2027 440,988 2028 104,232 2029 1,258 Total $ 665,228 Actuarial Assumptions-The total pension asset was determined by an actuarial valuation as of July 1, 2023, 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. 66  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 The actuarial assumptions used in the July 1, 2023, valuation were based on the results of an actuarial experience study for the period July 1, 2017, to June 30, 2022. 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, 2023, are summarized in the following table: Long-Term Expected Asset Class Real Rate of Return Fixed income 5.78% Domestic equity 7.73% International equity 11.55% Real estate 7.66% Private Equity 11.64% Commodities 0.00% 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) $ 1,066,427 $ (112,949) $ (1,111,511) 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 . 67  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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, 2024, employees contributed $115,345 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, 2024. Separate audited financial statements are not available. 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, 2024, were $40,387. Employees Covered by Benefit Terms Active Employees 182 Inactive or beneficiaries receiving benefits 5 Total 187 68  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Total OPEB Liability – The total OPEB liability was determined based on an alternative measurement method valuation performed as of June 30, 2023, which is also the measurement date. Actuarial Assumptions- The total OPEB liability in the June 30, 2023, valuation, was determined using the following actuarial assumptions: • Actuarial Cost Method - Entry Age • Discount Rate – 4.13% 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 5.01% 2035 4.97% 2040 4.81% 2045 4.70% 2050 4.64% 2060 4.54% 2065 4.50% 2070 4.20% 2075 3.94% Changes in Total OPEB Liability - Total OPEB Liability Balances at Beginning of Year $ 1,910,537 Changes for the Year: Service cost 131,374 Interest expense 78,141 Change in assumptions 49,839 Difference between expected and actual experience (94,229) Benefits paid (40,387) Net Changes 124,738 Balances End of Year $ 2,035,275 OPEB Liabilities, OPEB Expense (benefit), and Deferred Outflows or Resources and Deferred Inflows of Resources Related to OPEB - For the year ended June 30, 2024, the City recognized OPEB expense (benefit) of $(133,577). At June 30, 2024, 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 $ 43,743.00 $ 587,537 Changes of assumptions - 734,731 Changes in proportion 529,112 525,998 City Contributions during measurement date 9,862 9,954 Benefits paid subsequent to the measurement date 51,972 - Total $ 634,689 $ 1,858,220 69  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 In the year ending June 30, 2024, $51,972 reported as deferred outflows of resources 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 (benefit) as follows: Year Ended June 30: 2025 $ (329,490) 2026 (288,470) 2027 (242,692) 2028 (178,918) 2029 (121,486) Thereafter (114,447) $ (1,275,503) 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 (3.13 percent) or 1- percentage- point higher (5.13 percent) than the current discount rate: Current Discount Rate 1% Decrease ( 3.13%) (4.13%) 1% Increase (5.13%) Employers' total OPEB liability $ 2,266,790 $ 2,035,275 $ 1,831,273 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 (4.94 percent decreasing to 2.94 percent) or 1- percentage point higher (6.94 percent decreasing to 4.94 percent) than the current healthcare cost trend rates: Current Discount Rate 1% Decrease (4.94% (5.94% decreasing to 1% Increase (6.94% decreasing to 2.94%) 3.94%) decreasing to 4.94%) Employers' total OPEB liability $ 1,804,874 $ 2,035,275 $ 2,308,882 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. 70  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Grant Programs The City of Miami participates in various federal or state grant/loan programs from year to year. 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. 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, 2024, since the specific legally required costs of retirement have not yet been identified. The City anticipates identifying those specific legally required costs, if any, and obtaining an estimate of those costs in a subsequent fiscal year. 71  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 REQUIRED SUPPLEMENTARY INFORMATION 72  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Budgetary Comparison Schedules (Budgetary Basis) – Year Ended June 30, 2024 GENERAL FUND Actual Variance with Budgeted Amounts Amounts Final Budget Original Final (Budget basis) Positive (Negative) Beginning Budgetary Fund Balance: $ 3,658,854 $ 3,661,854 $ 4,336,366 $ 674,512 Resources (Inflows): Taxes 8,445,900 8,456,861 7,758,373 (698,488) Intergovernmental 228,032 228,032 904,840 676,808 Licenses and permits 60,335 60,335 146,058 85,723 Charges for services 220,705 220,705 209,890 (10,815) Fines and forfeitures 115,600 115,600 177,695 62,095 Investment income 10,800 10,800 23,332 12,532 Miscellaneous 44,200 48,494 299,423 250,929 Total Resources (Inflows) 9,125,572 9,140,827 9,519,611 378,784 Amounts available for appropriation 12,784,426 12,802,681 13,855,977 1,053,296 Charges to Appropriations (Outflows): General Government Muncipal Court 185,213 190,688 188,346 2,342 General Government 871,988 834,413 620,492 213,921 Human Resources 351,700 351,781 315,124 36,657 Legal 129,830 129,830 105,902 23,928 Public Safety Police 2,856,153 2,819,451 2,566,955 252,496 Fire 2,334,708 2,319,408 2,030,633 288,775 Emergency Management 53,438 70,136 70,064 72 Police Communications 764,177 762,777 706,810 55,967 Code Compliance 217,539 199,535 152,463 47,072 Risk Management 1,040,199 1,040,199 902,149 138,050 Public Works and Streets Streets 902,706 902,706 772,493 130,213 Cemetery 378,228 378,235 323,098 55,137 Facilities 339,867 340,537 304,576 35,961 Animal Control 257,705 262,209 207,858 54,351 Culture and Recreation Sports 334,437 334,437 248,825 85,612 Parks 709,427 698,927 548,954 149,973 Swimming Pool 197,908 211,408 140,210 71,198 Library 601,995 602,470 553,255 49,215 Total Charges to Appropriations 12,527,218 12,449,147 10,758,207 1,690,940 Other financing sources (uses) Transfers from other funds 8,575,342 8,605,715 9,238,261 632,546 Transfers to other funds (8,724,475) (8,852,049) (8,745,567) 106,482 Total other financing sources (uses) (149,133) (246,334) 492,694 739,028 Ending Budgetary Fund Balance $ 108,075 $ 107,200 $ 3,590,464 $ 3,483,264 73  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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, 2023 Fund Balance June 30, 2024 Budget to GAAP Reconciliation: Fund Balance - GAAP Basis 4,840,076 ($696,597) $4,143,479 Increases (Decreases): Revenues: Receivable from other governments and entities (981,175) 3,628 (977,547) Accounts receivable (256,728) (19,122) (275,850) State on behalf pension payments (589,122) (105,111) (694,233) Combining accounts (466,825) (10,259) (477,084) Expenditures: Accrued payroll 122,209 32,688 154,897 Other expenditures 1,078,809 (56,240) 1,022,569 State on behalf pension payments 589,122 105,111 694,233 Fund Balance - Budgetary Basis $4,336,366 ($745,902) $3,590,464 74  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 2023 2024 City's proportion of the net pension liability 0.413176% 0.418954% 0.4143524% 0.4169184% 0.421250% 0.394823% 0.375765% 0.380507% 0.365300% 0.339800% 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 $4,777,127 $4,383,865 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 $1,255,355 $1,303,779 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% 381% 336% 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% 69.40% 70.90% *The amounts present for each fiscal year were determined as of 6/30 SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA FIREFIGHTERS PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Statutorially required contribution $ 160,255 $ 162,264 $ 165,905 $ 169,204 $ 170,934 $ 168,865 $ 173,054 $ 175,750 $ 177,580 $ 187,949 Contributions in relation to the statutorially required contribution 160,255 162,264 165,905 169,204 170,934 168,865 173,054 175,750 177,580 187,949 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 $ 1,303,779 $ 1,289,196 Contributions as a percentage of covered-employee payroll 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.58% 75  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 2023 2024 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% 0.3860% 0.3698% 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) $ (309,568) $ (112,949) 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 $ 1,320,463 $ 1,378,435 $ 1,339,404 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% 138.63% 22.46% 8.43% 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% 102.74% 101.02% *The amounts present for each fiscal year were determined as of 6/30 SCHEDULE OF CITY CONTRIBUTIONS OKLAHOMA POLICE PENSION & RETIREMENT SYSTEM Last 10 Fiscal Years 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Statutorially required contribution $ 145,903 $ 156,178 $ 152,094 $ 162,102 $ 166,813 $ 167,131 $ 171,661 $ 179,197 $ 180,888 $ 171,951 Contributions in relation to the statutorially required contribution 145,903 156,178 152,094 162,102 166,813 167,131 171,661 179,746 180,888 171,951 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 $ 1,339,404 $ 1,322,694 Contributions as a percentage of covered-employee payroll 12.89% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 76  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Oklahoma Municipal Retirement Fund Schedule of Changes in Net Pension Liability and Related Ratios 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total pension liability Service cost $ 276,403 $ 308,701 $ 344,545 $ 330,866 $ 283,926 $ 346,075 $ 345,024 $ 390,061 $ 389,967 $ 391,099 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 1,071,795 1,065,973 Changes of benefit terms - - - - - - - - - Differences between expected and actual experience - 102,207 (202,315) (535,480) (541,596) (272,005) (198,240) (643,221) (165,221) 40,086 Changes of assumptions - - - 321,010 - 208,546 - - (350,120) - 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) (1,024,666) (1,023,384) Benefit changes due to plan amendments - - - - - 35,013 - - - 1,208,820 Net change in total pension liability 314,028 441,796 250,721 111,440 (272,102) 369,697 195,858 (182,423) (78,245) 1,682,594 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 14,793,665 14,715,420 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 $ 14,715,420 $ 16,398,014 Plan fiduciary net position Contributions - employer $ 569,542 $ 618,748 $ 640,172 $ 650,799 $ 635,453 $ 646,533 $ 657,276 $ 697,806 $ 703,506 $ 795,247 Contributions - member 166,578 175,420 181,046 183,989 179,680 182,834 185,855 197,343 198,934 247,681 Net investment income 1,363,071 261,920 83,267 1,149,965 755,918 735,845 465,013 3,203,292 (1,823,111) 1,164,089 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) (1,024,666) (1,023,383) Administrative expense (20,151) (19,533) (18,698) (20,154) (21,162) (22,670) (23,361) (23,726) (25,220) (28,327) 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 (1,970,557) 1,155,307 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 14,689,248 12,718,691 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 $ 12,718,691 $ 13,873,998 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 $ 1,996,729 $ 2,524,016 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% 86.43% 84.61% 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 $ 5,284,267 $ 6,012,867 Net pension liability as a percentage of covered- 100.06% 100.60% 109.51% 91.65% 73.05% 74.58% 63.64% 1.90% 37.79% 41.98% employee payroll *The amounts present for each fiscal year were determined as of 6/30 Required Supplementary Information Oklahoma Municipal Retirement Fund Schedule of Employer Contributions 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Actuarially determined contribution $ 616,160 $ 643,059 $ 592,589 $ 590,967 $ 512,617 $ 518,316 $ 551,638 $ 577,505 $ 630,750 $ 687,962 Contributions in relation to the actuarially 616,160 643,059 623,633 635,553 647,362 655,182 697,304 730,002 797,256 869,627 determined contribution Contribution deficiency (excess) $ - $ - $ (31,044) $ (44,586) $ (134,745) $ (136,866) $ (145,666) $ (152,497) $ (166,506) $ (181,665) 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 $ 6,012,867 $ 6,558,265 Contributions as a percentage of covered-employee payroll 13.22% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% 13.26% Notes to Schedule: 1. Latest Valuation Date: July 1, 2023 2. Actuarially determined contribution rate is calculated as of July 1, 2023 July 2023 through June 2024 contributions were at a rate of 9.45%. 3. 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% 77  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 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 2023 2024 Total OPEB Liability Service cost $ 233,167 $ 206,592 $ 180,562 $ 182,138 $ 182,230 $ 177,611 $ 131,374 Interest 91,262 125,031 120,692 96,946 54,855 51,676 78,141 Change of benefit terms - - - - 107,385 - - Changes in assumptions (280,566) (378,465) (162,177) (237,748) (42,145) (182,051) 49,839 Differences between expected and actual experience (17,115) (388,393) (237,298) (301,527) (449,318) (94,229) Benefit payments (78,120) (103,265) (99,477) (91,824) (90,502) (79,782) (40,387) Net change in total OPEB liability (34,257) (167,222) (348,793) (287,786) (89,704) (481,864) 124,738 Balances at Beginning of Year 3,320,163 3,285,906 3,118,684 2,769,891 2,482,105 2,392,401 1,910,537 Balances End of Year $ 3,285,906 $ 3,118,684 $ 2,769,891 $ 2,482,105 $ 2,392,401 $ 1,910,537 $ 2,035,275 Covered employee payroll $ 7,400,000 $ 7,310,000 $ 7,011,000 $ 7,564,000 $ 7,458,000 $ 7,735,000 $ 7,903,000 Total OPEB liability as a percentage of covered- employee payroll 44.40% 42.66% 39.51% 32.81% 32.08% 24.70% 25.75% Notes to Schedule: Only seven 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, 2024 OTHER SUPPLEMENTARY INFORMATION 79  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Balance Sheet – General Fund Accounts - June 30, 2024 Travel Municipal Court Information MCVB &Tourism Demolition Total General General Fund Account Center Account Account Account Fund ASSETS Cash and cash equivalents $ 2,805,062 $ 20,046 $ - $ 154,511 $ 272,761 $ 3,252,380 Investments - - - - - - Receivables: Accounts receivable 275,850 - - 4,475 21,398 301,723 Due from other funds 87,654 - - - - 87,654 Due from other accounts 11,466 - - - - 11,466 Receivable from other governments 977,547 - - 20,183 5,077 1,002,807 Other receivables - - 7,500 - - 7,500 Total assets $ 4,157,579 $ 20,046 $ 7,500 $ 179,169 $ 299,236 $ 4,663,530 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 132,044 $ 8,385 $ (410) $ 5,036 $ - $ 145,055 Wages payable 154,897 - - 4,390 - 159,287 Due to other funds 86,262 - - - - 86,262 Due to other accounts - 11,466 - - - 11,466 Total liabilities 373,203 19,851 (410) 9,426 - 402,070 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 117,981 - - - - 117,981 Fund balances: Assigned 2,332,796 - - - 299,236 2,632,032 Unassigned 1,333,599 195 7,910 169,743 - 1,511,447 Total fund balances 3,666,395 195 7,910 169,743 299,236 4,143,479 Total liabilities, deferred inflows and fund balances $ 4,157,579 $ 20,046 $ 7,500 $ 179,169 $ 299,236 $ 4,663,530 80  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund Accounts – Year Ended June 30, 2024 Travel MCVB & Municipal Information Tourism Demolition Total General General Fund Court Account Center Account Account Account Fund REVENUES Taxes $ 7,553,296 $ - $ - $ 205,077 $ - $ 7,758,373 Intergovernmental 904,840 - - - - 904,840 Charges for services 193,671 - - 16,219 - 209,890 Fines and forfeitures 150,136 - - - 27,559 177,695 Licenses and permits 160,570 - - - (14,512) 146,058 Investment income 23,332 - - - - 23,332 Miscellaneous 267,157 - - 32,266 - 299,423 Total revenues 9,253,002 - - 253,562 13,047 9,519,611 EXPENDITURES Current: General government 1,438,252 - - - 5,259 1,443,511 Public safety 7,068,253 - - - - 7,068,253 Public works and streets 1,612,893 - - - - 1,612,893 Culture and recreation 1,498,100 - - - - 1,498,100 Economic development - - - 463,837 - 463,837 Debt Service: Principal 165,862 - - - - 165,862 Interest and fiscal charges 13,876 - - - - 13,876 Total expenditures 11,797,236 - - 463,837 5,259 12,266,332 Excess (deficiency) of revenues over expenditures (2,544,234) - - (210,275) 7,788 (2,746,721) OTHER FINANCING SOURCES (USES) Transfers in - interaccount - - - 162,746 - 162,746 Transfers out - interaccount (162,746) - - - - (162,746) Transfers in 10,745,691 - - - 50,000 10,795,691 Transfers out (8,745,567) - - - - (8,745,567) Total other financing sources and uses 1,837,378 - - 162,746 50,000 2,050,124 Net change in fund balances (706,856) - - (47,529) 57,788 (696,597) Fund balances - beginning 4,373,251 195 7,910 217,272 241,448 4,840,076 Fund balances - ending $ 3,666,395 $ 195 $ 7,910 $ 169,743 $ 299,236 $ 4,143,479 81  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2024 SPECIAL REVENUE FUNDS DRUG PARKS AND GRANT AND MDA-HOUSING FISHING STREET AND FORFEITURE RECREATION DONATION CONSTRUCTION POLICE LICENSE FUND ALLEY FUND PROGRAM FUND FUND GRANTS ASSETS Cash and cash equivalents $ 77,192 $ 112,759 $ 77,083 $ 261,435 $ 247,945 $ 91,716 $ 79,845 Accounts receivable 1,000 - - - 2,070 - - Due from other governments - 11,145 - - 10,000 - - Due from other funds - 38,404 - - - - - Total assets $ 78,192 $ 162,308 $ 77,083 $ 261,435 $ 260,015 $ 91,716 $ 79,845 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 56,669 $ - $ 2,596 $ 5,204 $ - $ - Wages payable - - - 1,781 - - - Total liabilities - 56,669 - 4,377 5,204 - - Deferred Inflows: Unavailable revenue - - - - 65,782 - - Fund balances: Restricted 78,192 - 77,083 257,058 189,029 91,716 79,845 Commited - 105,639 - - - - - Assigned - - - - - - - Total fund balances 78,192 105,639 77,083 257,058 189,029 91,716 79,845 Total liabilities, deferred inflows and fund balances $ 78,192 $ 162,308 $ 77,083 $ 261,435 $ 260,015 $ 91,716 $ 79,845 (continued) 82  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Balance Sheet - Non-Major Governmental Funds - June 30, 2024, Continued DEBT SPECIAL SERVICE REVENUE FUNDS FUND CAPITAL PROJECT FUNDS G.O. BOND CAPITAL STREET AND POOL PARK S&L RECOVERY SINKING CEMETERY IMPROVEMENT STADIUM PROJECT IMPROVEMENT DEPARTMENT FUND FUND CARE FUND FUND FUND PROJECTS TOTALS ASSETS Cash and cash equivalents $ 134,013 $ 207,043 $ 92,839 $ 1,447,541 $ 1,301,082 $ 111,386 $ 42,041 $ 4,283,920 Accounts receivable - - - 94,228 - - - 97,298 Due from other governments - 55,409 - - 197,352 - - 273,906 Due from other funds - - - 6,657 - - - 45,061 Total assets $ 134,013 $ 262,452 $ 92,839 $ 1,548,426 $ 1,498,434 $ 111,386 $ 42,041 $ 4,700,185 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 21,085 $ - $ - $ 6,593 $ 117 $ - $ - $ 92,264 Wages payable - - - - - - - 1,781 Total liabilities 21,085 - - 44,997 117 - - 132,449 Deferred Inflows: Unavailable revenue 112,928 55,410 - - - - - 234,120 Fund balances: Restricted - 207,042 92,839 - 1,498,317 111,386 42,041 2,724,548 Commited - - - - - - - 105,639 Assigned - - - 1,503,429 - - - 1,503,429 Total fund balances - 207,042 92,839 1,503,429 1,498,317 111,386 42,041 4,333,616 Total liabilities, deferred inflows and fund balances $ 134,013 $ 262,452 $ 92,839 $ 1,548,426 $ 1,498,434 $ 111,386 $ 42,041 $ 4,700,185 83  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2024 SPECIAL REVENUE FUNDS DRUG PARKS AND GRANT AND MDA-HOUSING FISHING STREET AND FORFEITURE RECREATION DONATION CONSTRUCTION POLICE LICENSE FUND ALLEY FUND PROGRAM FUND FUND GRANTS REVENUES Taxes $ - $ - $ - $ - $ - $ - $ - Intergovernmental 1,000 107,505 48,267 - 199,321 - - Charges for services - - - 54,143 - - - Investment income - - - - - - - Miscellaneous - - - - 188,933 - 1,550 Total revenues 1,000 107,505 48,267 54,143 388,254 - 1,550 EXPENDITURES Current: General government - - - - 2,684 - - Public safety - - 4,199 - 186,580 - 58,887 Public works - 595,823 - - 3,545 - - Culture and recreation 8,200 - - 21,907 185,968 - - Capital Outlay - - 42,751 - - - - Debt Service Principal retirement - 116,762 - - - - - Interest and fiscal charges - 6,773 - - - - - Total Expenditures 8,200 719,358 46,950 21,907 378,777 - 58,887 Revenues over (under) expenditures (7,200) (611,853) 1,317 32,236 9,477 - (57,337) OTHER FINANCING SOURCES (USES) Debt proceeds - - - - - - - Transfers in - 500,000 - - - - - Transfers out - - - - (1,618,387) - - Total other financing sources (uses) - 500,000 - - (1,618,387) - - Net change in fund balances (7,200) (111,853) 1,317 32,236 (1,608,910) - (57,337) Fund balances - beginning 85,392 217,492 75,766 224,822 1,797,939 91,716 137,182 Fund balances - ending $ 78,192 $ 105,639 $ 77,083 $ 257,058 $ 189,029 $ 91,716 $ 79,845 (continued) 84  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds – Year Ended June 30, 2024, Continued SPECIAL REVENUE DEBT SERVICE FUNDS FUND CAPITAL PROJECT FUNDS CAPITAL STREET AND POOL PARK S&L RECOVERY G.O. BOND CEMETERY IMPROVEMENT STADIUM PROJECT IMPROVEMENT DEPARTMENT FUND SINKING FUND CARE FUND FUND FUND PROJECTS TOTALS REVENUES Taxes $ - $ 8,673 $ - $ 900,140 $ 1,557,136 $ - $ - $ 2,465,949 Intergovernmental 673,169 - - - - - - 1,029,262 Charges for services - - 9,083 - - 61,052 - 124,278 Investment earnings - - - 1,545 16,307 - - 17,852 Miscellaneous - - - 537,060 - - - 727,543 Total revenues 673,169 8,673 9,083 1,438,745 1,573,443 61,052 - 4,364,884 EXPENDITURES Current: General government - - - - - - - 2,684 Public safety - - - - - - - 249,666 Public works - - - - 642,027 - - 1,241,395 Culture and recreation - - - 400,000 - 20,867 - 636,942 Capital Outlay 673,169 - - 1,220,358 57,687 - - 1,993,965 Debt Service Principal retirement - - - 85,547 485,000 - - 687,309 Interest and fiscal charges - - - 17,143 513,687 - - 537,603 Total Expenditures 673,169 - - 1,723,048 1,698,401 20,867 - 5,349,564 Excess (deficiency) of revenues over expenditures - 8,673 9,083 (284,303) (124,958) 40,185 - (984,680) OTHER FINANCING SOURCES (USES) Debt proceeds - - - 937,149 - - - 937,149 Transfers in - - - - - - - 500,000 Transfers out - - - - - - - (1,618,387) Total other financing sources and uses - - - 937,149 - - - (181,238) Net change in fund balances - 8,673 9,083 652,846 (124,958) 40,185 - (1,165,918) Fund balances - beginning - 198,369 83,756 850,583 1,623,275 71,201 42,041 5,499,534 Fund balances - ending $ - $ 207,042 $ 92,839 $ 1,503,429 $ 1,498,317 $ 111,386 $ 42,041 $ 4,333,616 85  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Schedule of Net Position – Special Utility Authority Accounts – June 30, 2024 Miami Special Utility Authority Accounts Utility Grant & Improvement Stormwater Rainy Day Donations Public Utilities Account Account Account Account Total ASSETS Current assets: Cash and cash equivalents $ 6,336,613 $ 1,110,755 $ 650,745 $ 4,177,292 $ 600,000 $ 12,875,405 Cash and cash equivalents, restricted 556,565 2,191,709 - - - 2,748,274 Investments - - - 1,509,825 - 1,509,825 Accounts receivable, net 3,925,348 - 134 - - 3,925,482 Leases receivables 18,694 - - - - 18,694 Other receivable 436 - - - - 436 Inventory 1,657,238 - - - - 1,657,238 Due from other accounts 1,525,673 - - - 1,608,949 3,134,622 Due from other funds 50,012 - - - - 50,012 Total current assets 14,070,579 3,302,464 650,879 5,687,117 2,208,949 25,919,988 Non-current assets: Cash and cash equivalents, restricted 1,195 - - - - 1,195 Leases receivables 193,217 - - - - 193,217 Capital assets: Land, construction in progress, and water rights 2,095,213 - - - - 2,095,213 Other capital assets, net of accumulated depreciation 29,015,066 - - - - 29,015,066 Total non-current assets 31,304,691 - - - - 31,304,691 Total assets 45,375,270 3,302,464 650,879 5,687,117 2,208,949 57,224,679 DEFERRED OUTFLOW OF RESOURCES Deferred amounts related to pension 814,772 - - - - 814,772 Deferred amounts related to OPEB 166,041 - - - - 166,041 Deferred amounts related to GRDA settlement 99,788 - - - - 99,788 Total deferred outflow of resources 1,080,601 - - - - 1,080,601 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 2,043,790 - - - - 2,043,790 Wages payable 71,524 - - - - 71,524 Due to other accounts 1,608,949 1,197,259 328,414 - - 3,134,622 Due to other funds 86,341 - - - - 86,341 Accrued interest payable 13,999 78,406 - - - 92,405 Accrued compensated absences 22,149 - 92 - - 22,241 Unearned revenue 1,022,334 - - - - 1,022,334 Refundable deposits 29,148 - - - - 29,148 Revenue bond payable - 500,000 - - - 500,000 Notes payable 1,951,068 - - - - 1,951,068 Total current liabilities 6,849,302 1,775,665 328,506 - - 8,953,473 Non-current liabilities: Accrued compensated absences 199,338 - 826 - - 200,164 Net pension liability 1,231,383 - - - - 1,231,383 Total OPEB liability 607,820 - - - - 607,820 Refundable deposits 262,335 - - - - 262,335 Revenue bond payable - 5,255,000 - - - 5,255,000 Notes payable, net 3,591,196 - - - - 3,591,196 Total non-current liabilities 5,892,072 5,255,000 826 - - 11,147,898 Total liabilities 12,741,374 7,030,665 329,332 - - 20,101,371 DEFERRED INFLOW OF RESOURCES Deferred amounts related to leases 211,302 - - - - 211,302 Deferred amounts related to pensions 270,120 - - - - 270,120 Deferred amounts related to OPEB 793,291 - - - - 793,291 Total deferred inflow of resources 1,274,713 - - - - 1,274,713 NET POSITION Net investment in capital assets 28,131,570 (4,113,184) - - - 24,018,386 Restricted for debt service 53 549,866 - - - 549,919 Restricted for other purposes - - - - 2,208,949 2,208,949 Unrestricted (deficit) 4,308,161 (164,883) 321,547 5,687,117 - 10,151,942 Total net position $ 32,439,784 $ (3,728,201) $ 321,547 $ 5,687,117 $ 2,208,949 $ 36,929,196 86  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Schedule of Revenues, Expenses and Changes in Net Position – Special Utility Authority Accounts - Year Ended June 30, 2024 Miami Special Utility Authority Accounts Utility Grant & Improvement Stormwater Rainy Day Donations Public Utilities Account Account Account Account Total REVENUES Charges for services $ 29,119,685 $ - $ - $ - $ - $ 29,119,685 Fees, licenses and permits - - 132,120 - - 132,120 Miscellaneous 1,031,398 - - - 27,256 1,058,654 Total operating revenues 30,151,083 - 132,120 - 27,256 30,310,459 OPERATING EXPENSES Personal services 4,876,289 - 75,614 - 57,460 5,009,363 Materials and supplies 13,934,950 - 1,955 - - 13,936,905 Other services and charges 4,314,094 - 14,997 - - 4,329,091 Depreciation expense 2,611,614 - - - - 2,611,614 Total operating expenses 25,736,947 - 92,566 - 57,460 25,886,973 Operating income (loss) 4,414,136 - 39,554 - (30,204) 4,423,486 NON-OPERATING REVENUES (EXPENSES) Investment income 17,349 97,801 - 93,956 - 209,106 Miscellaneous 200,402 - - 11,695 - 212,097 Interest expense and fiscal charges (135,404) (192,888) - - - (328,292) Total non-operating revenue (expenses) 82,347 (95,087) - 105,651 - 92,911 Income (loss) before and transfers 4,496,483 (95,087) 39,554 105,651 (30,204) 4,516,397 Transfers in, interaccount - 691,708 - 372,232 635,890 1,699,830 Transfers out, interaccount (1,677,158) (22,672) - - - (1,699,830) Transfers in 8,745,567 - - - 1,603,263 10,348,830 Transfers out (11,280,567) - - (300,000) - (11,580,567) Change in net position 284,325 573,949 39,554 177,883 2,208,949 3,284,660 Total net position - beginning 32,155,459 (4,302,150) 281,993 5,509,234 - 33,644,536 Total net position - ending $ 32,439,784 $ (3,728,201) $ 321,547 $ 5,687,117 $ 2,208,949 $ 36,929,196 87  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Schedule of Cash Flows – Special Utility Authority Accounts - Year Ended June 30, 2024 Miami Special Utility Authority Accounts Utility Grant & Improvement Stormwater Rainy Day Donations Public Utilities Account Account Account Account Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 30,127,490 $ - $ 131,986 $ 11,695 $ 27,256 $ 30,298,427 Payments to suppliers (18,185,600) (515,367) (16,952) - (57,460) (18,775,379) Payments to employees (4,754,541) - (74,972) - - (4,829,513) Receipts from other funds and accounts - 1,197,259 17,084 - - 1,214,343 Payments to other funds and accounts 905,205 - - - (1,608,949) (703,744) Receipts of customer meter deposits 115,936 - - - - 115,936 Refunds of customer meter deposits (132,325) - - - - (132,325) Net cash provided by (used in) operating activities 8,076,165 681,892 57,146 11,695 (1,639,153) 7,187,745 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 8,745,567 - - - 1,603,263 10,348,830 Transfers to other funds (11,280,567) - - (300,000) - (11,580,567) Interaccount transfer in - 691,708 - 372,232 635,890 1,699,830 Interaccount transfer out (1,677,158) (22,672) - - - (1,699,830) Net cash provided by (used in) noncapital financing activities (4,212,158) 669,036 - 72,232 2,239,153 (1,231,737) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (2,260,692) - - - - (2,260,692) Principal paid on debt (1,916,006) (485,000) - - - (2,401,006) Interest and fiscal agent fees paid on debt (146,274) (198,950) - - - (345,224) Net cash provided by (used in) capital and related financing activities (4,322,972) (683,950) - - - (5,006,922) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 17,349 97,801 - 56,514 - 171,664 Net cash provided by investing activities 17,349 97,801 - 56,514 - 171,664 Net increase (decrease) in cash and cash equivalents (441,616) 764,779 57,146 140,441 600,000 1,120,750 Balances - beginning of year 7,335,989 2,537,685 593,599 4,036,851 - 14,504,124 Balances - end of year $ 6,894,373 $ 3,302,464 $ 650,745 $ 4,177,292 $ 600,000 $ 15,624,874 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 6,336,613 $ 1,110,755 $ 650,745 $ 4,177,292 $ 600,000 $ 12,875,405 Restricted cash and cash equivalents - current 556,565 2,191,709 - - - 2,748,274 Restricted cash and cash equivalents - noncurrent 1,195 - - - - 1,195 Total cash and cash equivalents, end of year $ 6,894,373 $ 3,302,464 $ 650,745 $ 4,177,292 $ 600,000 $ 15,624,874 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ 4,414,136 $ - $ 39,554 $ - $ (30,204) $ 4,423,486 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense 2,611,614 - - - - 2,611,614 Other nonoperating revenue 200,402 - - 11,695 - 212,097 Change in assets, liabilities and deferrals: Receivables, net 63,139 - (134) - - 63,005 Leases receivable 18,582 18,582 Due from other funds 905,205 - - - - 905,205 Inventory 152,847 - - - - 152,847 Deferred outflows related to pension 208,081 - - - - 208,081 Deferred outflows related to OPEB 22,478 - - - - 22,478 Accounts payable (89,403) (515,367) - - - (604,770) Due to other funds and accounts - 1,197,259 17,084 - (1,608,949) (394,606) Due to employees 15,108 - - - - 15,108 Unarned revenue (305,716) - - - - (305,716) Refundable deposits (16,389) - - - - (16,389) Total OPEB liability (128,533) - - - - (128,533) Net pension obligation 201,746 - - - - 201,746 Accrued compensated absences 10,769 - 642 - - 11,411 Deferred inflows related to OPEB (1,243) - - - - (1,243) Deferred inflows related to leases (19,209) - - - - (19,209) Deferred inflows related to pension (187,449) - - - - (187,449) Net cash provided by (used in) operating activities $ 8,076,165 $ 681,892 $ 57,146 $ 11,695 $ (1,639,153) $ 7,187,745 Noncash activities: Assets acquired with debt $ 1,344,433 - - - 1,344,433 $ 1,344,433 $ - $ - $ - $ - $ 1,344,433 88  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Statement of Net Position – Internal Service Funds – June 30, 2024 Internal Service Funds Worker's Health Compensation Unemployment Insurance Fund Fund Fund Total ASSETS Current assets: Cash and cash equivalents $ 1,818,509 $ 246,488 $ 684,387 $ 2,749,384 Investments 134,043 - - 134,043 Other receivable 410,591 - 30,342 440,933 Due from other funds 499,540 - - 499,540 Total current assets 2,862,683 246,488 714,729 3,823,900 Total assets 2,862,683 246,488 714,729 3,823,900 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 1,020 - - 1,020 Claims liability 572,692 946 197,873 771,511 Due to other funds - - 499,540 499,540 Total current liabilities 573,712 946 697,413 1,272,071 Total liabilities 573,712 946 697,413 1,272,071 NET POSITION Unrestricted 2,288,971 245,542 17,316 2,551,829 Total net position $ 2,288,971 $ 245,542 $ 17,316 $ 2,551,829 89  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds - Year Ended June 30, 2024 Internal Service Funds Worker's Compensation Unemployment Health Insurance Fund Fund Fund Total REVENUES Charges for services $ 291,954 $ 23,442 $ 1,852,777 $ 2,168,173 Miscellaneous - - 160,370 160,370 Total operating revenues 291,954 23,442 2,013,147 2,328,543 OPERATING EXPENSES Other services and charges 126,306 - 492,753 619,059 Insurance claims and expense 198,091 7,322 1,490,891 1,696,304 Total operating expenses 324,397 7,322 1,983,644 2,315,363 Operating income (loss) (32,443) 16,120 29,503 13,180 NON-OPERATING REVENUES Investment income 523 - - 523 Total non-operating revenue 523 - - 523 Change in net position (31,920) 16,120 29,503 13,703 Total net position - beginning 2,320,891 229,422 (12,187) 2,538,126 Total net position - ending $ 2,288,971 $ 245,542 $ 17,316 $ 2,551,829 90  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Statement of Cash Flows – Internal Service Funds - Year Ended June 30, 2024 WORKER'S HEALTH COMPENSATION UNEMPLOYMENT INSURANCE FUND FUND FUND TOTALS CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 321,542 $ 23,442 $ 1,983,065 $ 2,328,049 Payments to suppliers (128,726) - (498,470) (627,196) Payments to other funds - - - - Payments from other funds - - - - Claims and benefits paid (112,507) (6,952) (1,367,894) (1,487,353) Net Cash Provided by Operating Activities 80,309 16,490 116,701 213,500 CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends 523 - - 523 Sale (purchase) of investments (523) - - (523) Net Cash Provided by (Used in) Investing Activities - - - - Net Increase in Cash and Cash Equivalents 80,309 16,490 116,701 213,500 Balances - beginning of the year 1,738,200 229,998 567,686 2,535,884 Balances - end of the year $ 1,818,509 $ 246,488 $ 684,387 $ 2,749,384 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 1,818,509 $ 246,488 $ 684,387 $ 2,749,384 Total cash and cash equivalents $ 1,818,509 $ 246,488 $ 684,387 $ 2,749,384 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $ (32,443) $ 16,120 $ 29,503 $ 13,180 Change in assets and liabilities: Receivables, net 29,588 - (30,082) (494) Accounts payable (2,420) (576) (5,717) (8,713) Claims liability 85,584 946 122,997 209,527 Net Cash Provided by Operating Activities $ 80,309 $ 16,490 $ 116,701 $ 213,500 91  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 Combining Schedule of Cash Flows – Discretely Presented Component Units - Year Ended June 30, 2024 MCFA MDRA MIDA MIPFA Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 101,380 $ 306,988 $ 72,274 $ 29,805 $ 510,447 Payments to suppliers 135,027 (151,486) (10,180) (19,040) (45,679) Payments to employees - (165,905) - - (165,905) Net Cash Provided by (used in) Operating Activities 236,407 (10,403) 62,094 10,765 298,863 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from primary government - 487,228 - - 487,228 Transfers to primary government - (11,695) - - (11,695) Net Cash Provided by Non-Capital Financing Activities - 475,533 - - 475,533 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased (269,297) - - (269,297) Principal paid on debt - - (65,750) - (65,750) Interest and fiscal charges paid on debt - - (4,140) - (4,140) Net Cash Provided by (Used in) Capital and Related Financing Activities (269,297) - (69,890) - (339,187) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (2,088) - - - (2,088) Interest and dividends 2,088 766 1 4,620 7,475 Net Cash Provided by Investing Activities - 766 1 4,620 5,387 Net Increase (Decrease) in Cash and Cash Equivalents (32,890) 465,896 (7,795) 15,385 440,596 Balances - beginning of the year 282,407 161,800 226,788 241,200 912,195 Balances - end of the year $ 249,517 $ 627,696 $ 218,993 $ 256,585 $ 1,352,791 Reconciliation to Statement of Net Position: Cash and cash equivalents $ 249,517 $ 627,696 $ 218,993 $ 256,585 $ 1,352,791 Total cash and cash equivalents $ 249,517 $ 627,696 $ 218,993 $ 256,585 $ 1,352,791 Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $ (186,165) $ (74,307) $ 41,367 $ (15,023) $ (234,128) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 240,454 - 20,727 27,156 288,337 Other nonoperating revenue - 46,182 - - 46,182 Change in assets, liabilities and deferrals: Other receivable (12,000) - - 500 (11,500) Leases receivabe - - - 7,631 7,631 Accounts payables 194,118 15,428 - - 209,546 Deferred inflows related to leases - - - (9,499) (9,499) Accrued compensated absences - 2,294 - - 2,294 Net Cash Provided by (used in) Operating Activities $ 236,407 $ (10,403) $ 62,094 $ 10,765 $ 298,863 Non-cash activity: Capital assets contributed from primary government $ 57,687 $ - $ - $ - $ 57,687 92  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 SINGLE AUDIT AND INTERNAL CONTROL AND COMPLIANCE INFORMATION 93  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 THIS PAGE INTENTIONALLY LEFT BLANK 94  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 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 the City of Miami, Oklahoma, as of and for the year ended June 30, 2024 and the related notes to the financial statements, which collectively comprise City of Miami, Oklahoma’s basic financial statements, and have issued our report thereon dated June 4, 2025. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered City of Miami, Oklahoma’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 City of Miami, Oklahoma’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Miami, Oklahoma’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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weakness. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2024-1, 2024-2, 2024-3, and 2024-4. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Miami, Oklahoma’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. 9905 N. May Ave, Oklahoma City, OK 73120 Phone (405) 848-7797 Fax (405) 848-7840 Web address: www.hbc-cpas.com 95 City of Miami, Oklahoma’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City of Miami, Oklahoma’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City of Miami, Oklahoma’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 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. Oklahoma City, Oklahoma June 4, 2025 9905 N. May Ave, Oklahoma City, OK 73120 Phone (405) 848-7797 Fax (405) 848-7840 Web address: www.hbc-cpas.com 96  INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the City Council City of Miami, Oklahoma Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Miami, Oklahoma’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 the City of Miami, Oklahoma’s major federal programs for the year ended June 30, 2024. City of Miami, Oklahoma’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 of Miami, Oklahoma, 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, 2024. 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 of Miami, Oklahoma 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 of Miami, Oklahoma’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, implantation, 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 of Miami, Oklahoma’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 City of Miami, Oklahoma’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 City of Miami, Oklahoma’s compliance with the requirements of each major federal program as a whole. 9905 N. May Avenue, Oklahoma City, Oklahoma 73120 Phone: (405) 848-7797 Fax: (405) 848-7840 Web Address: www.hbc-cpas.com 97 In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City of Miami, Oklahoma’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 City of Miami, Oklahoma’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 City of Miami, Oklahoma’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 have not been 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. Oklahoma City, Oklahoma June 4, 2025 9905 N. May Avenue, Oklahoma City, Oklahoma 73120 Phone: (405) 848-7797 Fax: (405) 848-7840 Web Address: www.hbc-cpas.com 98  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 City of Miami, Oklahoma SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2024 Federal Grantor/ Pass-through Federal AL Pass-Through Federal Grantor/Program Title Number Entity Number Expenditures WIOA Cluster Department of Labor Pass through Oklahoma Department of Libraries: WIOA Adult Program 17.258 F-23-183 31,156 Total WIOA Cluster 31,156 U.S. Department of Treasury Pass through Oklahoma Emergency Management: Coronavirus State and Local Fiscal Recovery Funds - ARPA 21.027 SA-0131 673,169 Pass through Ottawa County: Coronavirus State and Local Fiscal Recovery Funds - ARPA 21.027 03-03 134,218 Total U.S. Department of Treasury 807,387 Institute of Museum and Library Services Pass through Oklahoma Department of Libraries: Grants to States 45.310 F-24-78 8,000 Department of Homeland Security Pass through Oklahoma Emergency Management: Hazard Mitigation 97.039 FEMA 4438 HMPG 49 Disaster Grants - Public Assistance 97.036 PA FEMA DR 4438 PW 1156 5,394 Total Department of Homeland Security 5,443 Department of Justice State and Local HIDTA Task Force Grant 16.809 HIDTA Treas 303 10,276 Equitable Sharing Program 16.922 SFF-0188-215 FED AF 42,751 Total Department of Justice 53,027 Federal Aviation Administration Pass through Oklahoma Department of Aerospace & Aeronautics Airport Improvement Program 20.106 MIO-24-FS 90,710 Total Federal Awards $ 995,723 Note 1. 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, 2024. The information in this Schedule is presented in accordance with the requireme Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Un 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 positi changes in net assets, or cash flows of the City. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3. Indirect Cost Rate The City has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. … 99  CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS OF QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 II. Financial Statement Findings Finding No. 2024-1 Criteria: Government entities should maintain adequate internal controls over cash. This includes proper authorization, documentation, disbursement procedures, and reconciliation of all cash transactions. Condition: During our audit, we were made aware that significant amounts of cash are withdrawn for distribution as prizes without adequate documentation or monitoring controls. We understand that the current process lacks proper segregation of duties and sufficient oversight or verification for the cash withdrawal and distribution process. Cause: The organization has not implemented comprehensive policies and procedures regarding cash handling for prize distributions. Additionally, there appears to be limited awareness of the risks associated with cash transactions and insufficient training on proper cash management protocols. Effect or This practice significantly increases the risk of misappropriation, theft, or loss of Potential Effect: public funds. Without proper documentation, the organization cannot demonstrate that all withdrawn funds were used for their intended purpose, potentially resulting in compliance violations, financial reporting deficiencies, and tax reporting issues. The absence of adequate controls also creates vulnerabilities in the organization's fiscal accountability and transparency obligations. Management's Response Effective immediately, we will no longer issue large cash amounts directly to employees for them to cash and distribute for events.To ensure greater accountability and security, oversight will now involve multiple levels of approval. This includes detailed sign-off sheets and a robust checks and balances system that must be adhered to at all times.This change is designed to enhance transparency and integrity in our financial operations. 100  CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS OF QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 II. Financial Statement Findings (continued) Finding No. 2024-2 Criteria: Government organizations should follow proper procurement procedures that include obtaining approved purchase requisitions and purchase orders prior to committing to purchases or receiving goods and services. Condition: During our testing of the purchasing process, we identified numerous instances where invoice dates preceded the dates of the corresponding purchase requisitions and purchase orders, indicating that purchases were made before proper authorization was obtained. Cause: This condition appears to result from inadequate enforcement of existing procurement policies and insufficient training on proper purchasing procedures. Staff may be bypassing established controls due to time constraints or lack of understanding of the importance of the procurement sequence. Effect or The practice of making purchases without prior authorization undermines Potential Effect: internal controls and exposes the organization to financial risks. This circumvention of proper procurement procedures could result in unauthorized spending, budget overruns, and non-compliance with regulations. Additionally, it creates an environment susceptible to fraud or abuse and impairs management's ability to effectively monitor and control expenditures, potentially leading to financial misstatements. Management's The City of Miami is currently in the process of revising its purchasing policy. Response During this period, it is imperative that all employees strictly adhere to the established purchasing procedures.We have emphasized the importance of following the proper chain for purchases, and I want to reiterate that compliance with these rules is non-negotiable. These guidelines are in place to ensure transparency, accountability, and efficiency in our operations. 101  CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS OF QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 II. Financial Statement Findings (continued) Finding No. 2024-3 Criteria: Government entities should maintain effective internal controls over accounts receivable, including regular reconciliation of accounts receivable subsidiary ledgers to the general ledger control accounts. Proper internal controls require that transactions be promptly recorded and reconciled to maintain accurate financial records and that management regularly monitor these processes. Condition: During our audit, we noted that the City is not routinely reconciling accounts receivable. Payments have been applied to a clearing account but have not been properly cleared or reconciled to the appropriate customer accounts. The supporting detail requires clean-up and improved maintenance. Cause: This condition appears to result from insufficient procedures for regular reconciliation of accounts receivable, lack of consistent follow-up on items recorded in clearing accounts, and inadequate oversight of the reconciliation process. Effect or Failure to routinely reconcile accounts receivable could result in misstatements Potential Effect: of accounts receivable balances that may go undetected, inaccurate tracking of customer accounts, inefficient collection efforts, increased risk of undetected errors, and difficulty resolving discrepancies in a timely manner. Management's Over time, these balances have accumulated discrepancies that must be Response addressed without further delay.To enhance the accuracy and clarity of our financial records, all outstanding receivable balances will be thoroughly reviewed and reconciled. Any amounts deemed uncollectible will be moved to the appropriate accounts to reflect a true representation of our real balances. 102  CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS OF QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 II. Financial Statement Findings (continued) Finding No. 2024-4 (repeat finding 2023-001) Criteria: Government entities must maintain complete and accurate cash reconciliations. This includes timely identification and resolution of all reconciling items to ensure accurate financial reporting and accountability for public funds. Condition: During our audit, we identified unreconciled differences in the entity's cash balance that have not been investigated or resolved. The organization continues operating with unexplained variances between the general ledger cash balance and bank statement balances. Cause: The entity lacks adequate procedures for investigating and clearing reconciling items. Effect or Unresolved reconciling differences may conceal errors or irregularities. Potential Effect: Management's This is a critical initiative that the Finance department will be prioritizing. We are Response committed to addressing and rectifying years' worth of bank statement adjustments that have accumulated over time. This is an area of utmost importance, and we intend to focus our efforts on developing a comprehensive plan to accurately make entries and clean up past discrepancies with the intent of better financial presentation. 103  CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS OF QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 III. Prior Year Findings Finding No. 2023-002 Status: Corrected 104  CITY OF MIAMI, OKLAHOMA SCHEDULE OF FINDINGS OF QUESTIONED COSTS YEAR ENDED JUNE 30, 2024 III. Prior Year Findings Finding No. 2023-003 Status: Corrected 105  CITY OF MIAMI, OKLAHOMA ANNUAL FINANCIAL REPORT As of and for the Year Ended June 30, 2024 THIS PAGE INTENTIONALLY LEFT BLANK 106