--- OCR page 1 of 41 --- OTTAWA COUNTY, OKLAHOMA SPECIAL-PURPOSE FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED JUNE 30, 2003 tv eermnreremmmmrerserneenemee cr This publication is printed and issued by the State Auditor and Inspector as authorized by 19 O.S. § 171. Pursuant to 74 O.S. § 3105, 35 copies have been prepared and distributed at a cost of $88.20. Copies have been deposited with the Publications Clearinghouse of the Oklahoma Department of Libraries. --- OCR page 2 of 41 --- STATE OF OKLAHOMA OFFICE OF THE AUDITOR AND INSPECTOR JEFF A. MCMAHAN State Auditor and Inspector March 30, 2005 TO THE CITIZENS OF OTTAWA COUNTY, OKLAHOMA Transmitted herewith is the audit of Ottawa County, Oklahoma, for the fiscal year ended June 30, 2003. A report of this type is critical in nature; however, we do not intend to imply that our audit failed to disclose commendable features in the present accounting and operating procedures of the County. We wish to take this opportunity to express our appreciation for the assistance and cooperation extended to our office during the course of our audit. The Office of the State Auditor and Inspector is committed to serve the public interest by providing independent oversight and to issue reports that serve as a management tool to the state to ensure a government which is accountable to the people of the State of Oklahoma. Sincerely, at Mein JEFF A. MCMAHAN State Auditor and Inspector 2300 North Lincoln Boulevard * Room 100 State Capitol « Oklahoma City, OK 73105-4801 + (405) 521-3495 « Fax (405) 521-3426 + ww.sai.state.ok.us --- OCR page 3 of 41 --- OTTAWA COUNTY, OKLAHOMA FINANCIAL STATEMENTS, FOR THE YEAR ENDED JUNE 30, 2003 EEE eee — — ——————ee TABLE OF CONTENTS INTRODUCTORY SECTION (Unaudited Report to the Citizens of Ottawa Count........ssssessseesessecesersessseseesesesssnnnannneeseeesessessssssnneseneesessesesesesesee ti County Officials and Responsibilities .......ccssssssssesssscsssssssssssisssssnsesiueseetvisssevinssseinateiiasssasaseeasseuad¥ Ad Valorem Tax Distribution ..........::cccscssessssssssssssssnssnvnssscvereesueceseseseeesensssssanseseseessssrsssssssasssseesessessseeseeedX FINANCIAL SECTION Report of State Auditor and InspectOr.....sssesssssssessssssesesesececsesereseeseseeseessnnsnnnaneeesesesssssensassvanseeeesesessesesessee Special-Purpose Financial Statements: Statement of Receipts, Disbursements, and Changes in Cash Balances - All FUunds..0........ccsccesssssssss03 Comparative Statement of Receipts, Expenditures, and Changes in Cash Balances - Budget and Actual - General Fund .....0...02..00..... soeeeevecenecerenseensnesnesssecseesssesecssresseessecsseesateseseesee Comparative Statement of Receipts, Expenditures, and Changes in Cash Balances - Budget and Actual - County Health Department Fund .....scccccccccsssssssssssssssssssevtesssssesesssensessssnssseseseseeee Detailed Statement of Receipts, Disbursements, and Changes in Cash Balances - Sinking FUNG .....cccosssssssssestesteneustinsintintieneeietseistssintisenstssinsininntsiasuanustuanenssnsenT Detailed Statement of Receipts, Disbursements, and Changes in Cash Balances - Official Depository ACCOUNS ...........::scsssssssssssssstessssescesssssueessenssnseneesresssssessntssssssasieesesasesesssresssaseecesese® Notes to the Financial Statement ............ccesesssssssssssseresesensnsssssseseeseserestiriusutitnaninssssssaseeeseseeessssasesseneD COMPLIANCE AND INTERNAL CONTROL SECTION Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards ..........cccceccsssesesssessesessesssssesssesssssssssvsssssuimesesssesesessesesssweeee 20 Schedule of Findings ..........::s:csssssssssssssssssssssssnsssnsssevusvssvsnennnsnessssssseesecesesessesasssssnsievecserssessereeseeeeesnnes 22 i --- OCR page 4 of 41 --- OTTAWA COUNTY, OKLAHOMA FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2003 STATISTICAL SECTION (Unaudited Top Ten TAXPayers .sceessessseeessssessesssenssitessesesteisestisassisssestanetnnsatessaraassesevaes sittteessessneesntenneessessneesne QO Computation of Legal Debt Margin .......ccceccsssssessssseecsssee siesetnensesaeaesesessesssesssesesessetstsateresesasssutsersssesecane 2 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita vrreteeseeseascenecuuetsssenestasecaseroesconssasessunasnsrvcrautsasecassanecsscssessuestuesuissustsussueriestusstartsesssessece 25 Assessed Value of Property sttessecnsenenssceeasecsnnseessarensunescttieccssssstsscesceiatsasetssassesuesessntstsisssseessssneessasasnveesessee 26 ii --- OCR page 5 of 41 --- OTTAWA COUNTY, OKLAHOMA FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2003 EERE mmmemmmmmsammmmemmemmmmemmm= emma ee The extreme northeastern county of Oklahoma, bordering Kansas and Missouri, is named for the Ottawa Indians. This county has been the home to members of a greater number of Indian tribes than any other county in the United States. With 71 percent of the total land area in farms, as much as 60 percent of the county’s agriculture income is from livestock and dairy products. Northeastem Oklahoma A&M College is located at Miami, the county seat. Various industries are represented throughout Ottawa County. County Seat — Miami Area — 471.4 Square Miles County Population — 33,194 (2000 est.) Farms — 972 Land in Farms — 214,870 Source: Oklahoma Almanac — 2003-2004 See independent auditor's report. iti --- OCR page 6 of 41 --- OTTAWA COUNTY OFFICIALS AND RESPONSIBILITIES RE emmmmemmmmmemmmmmamemmmmmmmeemmmeee= ene COUNTY ASSESSOR Linda Kelly (D) Quapaw The County Assessor has the responsibility to appraise and assess the real and personal property within the county for the purpose of ad valorem taxation. Also, the County Assessor is required to compute the ad valorem taxes due on all taxable property. The County Assessor appraises all the taxable real and personal property according to its fair cash value for which the property is actually being used as of January | of the taxable year at the percentages provided for in Article 10, § 8 of the Oklahoma Constitution. The County Assessor is required to build and maintain permanent records of the taxable real property and tax exempt real property within the county. Information entered on each record includes the property's legal description, owner's name and address, and the homestead exemption status of the owner. COUNTY CLERK Reba G. Sill (D) Miami The County Clerk serves as the register of deeds and custodian of records for the county. The County Clerk also serves as the secretary to several boards, including the Board of County Commissioners, the County Excise Board, the County Board of Equalization, and the Board of Tax Roll Corrections. The County Clerk reviews all the claims for payment of goods and services purchased or contracted by the county, and prepares the proper warrants for payment of those goods and services and the county payroll. The County Clerk, or his or her designated deputy, serves as the purchasing agent for the county. This system is a means to ensure the public that tax dollars are being spent appropriately. Various records within the different county offices are classified as “open records.” As such, they can be reviewed and mechanically copied by the public. See independent auditor's report. iv --- OCR page 7 of 41 --- OTTAWA COUNTY OFFICIALS AND RESPONSIBILITIES BOARD OF COUNTY COMMISSIONERS DISTRICT 1 DISTRICT 2 John Clarke James E. Leake (D) Quapaw (D) Miami DISTRICT 3 Russell Earls (D) Fairland The Board of County Commissioners is the chief administrative body for the county. County Commissioners are also responsible for maintaining and constructing the county roads and bridges. The Commissioners must act as a Board when entering into contracts or other agreements affecting the county's welfare. Thus, actions taken by the Board are voted on and approved by a majority of the Commissioners. The Board of County Commissioners’ business meetings are open to the public. As the county's chief administrative body, the three County Commissioners must make major financial decisions and transactions. The Board has the official duty to ensure the fiscal responsibility of the other county officers who handle county funds. The review and approval procedures empowered to the Board of County Commissioners are a means to provide the public with a fiscally efficient system of county government. See independent auditor's report. v --- OCR page 8 of 41 --- OTTAWA COUNTY OFFICIALS AND RESPONSIBILITIES TTT COUNTY SHERIFF Dennis King (D) Miami The County Sheriff is responsible for preserving the peace and protecting life and property within the county's jurisdiction. As the county's chief law enforcement officer, the Sheriff has the power and authority to suppress all unlawful disturbances, to apprehend and secure persons charged with felony or breach of peace, and to operate the county jail. The County Sheriff has the responsibility of serving warrants and processing papers ordered by the District Court. COUNTY TREASURER Brenda Conner (D) Commerce All collections by county government from ad valorem taxes and other sources are deposited with the County Treasurer. The County Treasurer collects ad valorem taxes for the county and its political subdivisions. The County Treasurer is authorized to issue delinquent personal property tax warrants and to impose tax liens on real property for delinquent taxes. To account for county collections and disbursements, the County Treasurer is required to maintain an accurate record of all the monies received and disbursed. The State Auditor and Inspector's Office prescribes all the forms used by the County Treasurer, and at least twice a year inspects the County Treasurer's accounts. See independent auditor's report. vi --- OCR page 9 of 41 --- OTTAWA COUNTY OFFICIALS AND RESPONSIBILITIES mma eee | COURT CLERK Beverly Stepp (D) Pitcher The Court Clerk has the primary responsibility to record, file, and maintain as permanent records the proceedings of the District Court. Court proceedings are recorded in the appropriate journal or record docket, All the court proceedings are public information except those related to juvenile, guardianship, adoption, and mental health cases. The Court Clerk issues marriage licenses, passports, notary certificates, beer and pool hall licenses, and private process server licenses. Monies from the court fund are identified for distribution by the Court Clerk to the appropriate units of county and state government. Court Clerks use forms and follow procedures prescribed by the Court Administrator's Office, the Oklahoma Supreme Court, and the State Auditor and Inspector. DISTRICT ATTORNEY Thomas H. May (7/2002-12/2002) (D) Afton Eddie Wyant (1/2003-6/2003) (D) Miami As the chief attorney for county government, the District Attorney acts as the legal advisor to the county officers on matters related to their duties. The District Attorney represents the county in civil litigation. County officials may call upon the District Attorney to clarify a law or request an official interpretation from the Attorney General. See independent auditor's report. vii --- OCR page 10 of 41 --- OTTAWA COUNTY OFFICIALS AND RESPONSIBILITIES _—_::™"*—"”""™X—__—_==={={={&=#=_=_=_=—=_—_—_—_S_——————— ELECTION BOARD SECRETARY Dave E. Charloe (D) Miami The Election Board Secretary is appointed by the State Election Board and is the chief administrative officer of the County Election Board. The County Election Board has direct responsibility for all the ballots used in all elections within the county. The Board also conducts all elections held within the county. To finance the operation of the County Election Board, the County Excise Board must appropriate sufficient funds annually. The state and counties split the election costs, but counties must pay for any county elections not held concurrently with state elections. See independent auditor's report. viii --- OCR page 11 of 41 --- AD VALOREM TAX DISTRIBUTION OTTAWA COUNTY, OKLAHOMA SHARE OF THE AVERAGE MILLAGE Property taxes are calculated by applying a millage rate to the assessed valuation of property. Millage rates are established by the Oklahoma Constitution. One mill equals one-thousandth of a dollar. For example, if the assessed value of a property is $1,000.00 and the millage rate is 1.00, then the tax on that property is $1.00. This chart shows the different entities of the County and their share of the various millages as authorized by the Constitution. Aa _County Health Le > 2.09% School Dist. Avg. & . 83.97% , ~~ County General eee 13.94% County General BSchool Dist. Avg. County Health County-Wide Millages School District Millages Co. General 10.00 Gen. _ Bldg, Ske. Career Tech Common __ Total County Health 1.50 Turkey Ford D-10 35.00 5.00 9.21 10.00 4.00 63.21 Co. Sinking 0.43 Wyandotte Li 35,00 5.00 11.97 10.00 4.00 65.97 Quapaw 4 35.00 5.00 10.00 4.00 34,00 Other Picher LIS 35.00 5.00 10.26 10.00 4.00 64.26 S.D. £23 EMS 3.00 Commerce 118 35.00 5.00 3.01 10.00 4.00 57.01 Miami 1-23 35.00 5.00 5.57 10.00 4.00 59.57 Afton 1-26 35.00 5.00 10.00 4.00 34.00 Fairland 131 35.00 5.00 12.35 10.00 4.00 66.35 Neosho Valley 35.00 5.00 7.01 10.00 4.00 61.01 Miami L18 35.00 5.00 3.01 10.00 4.00 57.01 See independent auditor's report. ix --- OCR page 12 of 41 --- Financial Section --- OCR page 13 of 41 --- STATE OF OKLAHOMA OFFICE OF THE AUDITOR AND INSPECTOR JEFF A. McMAHAN State Auditor and inspector Independent Auditor’s Report TO THE OFFICERS OF OTTAWA COUNTY, OKLAHOMA We have audited the special-purpose financial statements of Ottawa County, Oklahoma, as of and for the year ended June 30, 2003, as listed in the table of contents. These special-purpose financial statements are the responsibility of Ottawa County's management. Our responsibility is to express an opinion on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying special-purpose financial statements were prepared for the purpose of presenting the receipts, disbursements, and changes in cash of all funds of Ottawa County, Oklahoma, and comparisons of such information with the corresponding budgeted information for the general fund and county health department fund of the County, and are not intended to be a complete presentation of the financial position and results of operations of those funds or of Ottawa County in conformity with accounting principles generally accepted in the United States of America. In our opinion, the special-purpose financial statements referred to in the first paragraph present fairly, in all material respects, the receipts, disbursements, and changes in cash of all funds of Ottawa County, Oklahoma, and comparisons of such information with the corresponding budgeted information for the general fund and county health department fund of the County, as of and for the year ended June 30, 2003, in conformity with the basis of accounting described in Note 1. In accordance with Government Auditing Standards, we have also issued our report dated November 3, 2004, on our consideration of Ottawa County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, and contracts. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 2300 North Lincoln Boulevard Room 100 State Capitol + Oklahoma City, OK 73105-4801 + (405) 521-3495 + Fax (405) 521-3426 + ww.sai.state.ck.us --- OCR page 14 of 41 --- Our audit was performed for the purpose of forming an opinion on the special-purpose financial statements of Ottawa County, Oklahoma, taken as a whole. The information listed in the table of contents under Introductory Section and Statistical Section has not been audited by us, and accordingly, we express no opinion on such data. The American Institute of Certified Public Accountants’ Statement on Auditing Standards No. 87 requires the inclusion of the following paragraph in this report: This report is intended solely for the information and use of the management of the County and is not intended to be and should not be used by anyone other than these specified parties. However, the Oklahoma Open Records Act states that all records of public bodies and public officials shall be open to any person, except as specifically exempted. The purpose of this Act is to ensure and facilitate the public’s right of access to and review of government records so they may efficiently and intelligently exercise their inherent political power. Therefore, this report is a matter of public record and its distribution is in no way limited or restricted. Sincerely, SH Whe JEFF A. MCMAHAN State Auditor and Inspector November 3, 2004 2 --- OCR page 15 of 41 --- Special-Purpose Financial Statements --- OCR page 16 of 41 --- OTTAWA COUNTY, OKLAHOMA STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN CASH BALANCES - ALL FUNDS FOR THE YEAR ENDED JUNE 30, 2003 Eee Beginning Ending Cash Balances Receipts Cancelled Cash Balances All County Funds July 1, 2002 Apportioned _Disbursements_ Vouchers _June 30, 2003 General Fund $711,959 $2,449,103 $2,571,463 S$ 589,599 Highway Cash 929,380 1,937,983 1,939,872 927,491 Highway Sales Tax 642,602 1,052,040 780,035 914,607 County Sales Tax. 120,351 913 19,250 102,014 ‘County Health 154,705 489,175 532,951 110,929 Resale Property 101,105 74,337 99,645 75,797 Assessor's Revolving 7611 7,611 County Clerk Lien Fee 5,565 8,765 8,212 6,118 Treasurer's Mortgage Certification Fee 8,120 8,845 9,663 7,302 Sheriff Service Fee 33,340 224,386 99,723 158,003 Sheriff DARE 1,344 9,764 5,858 5,250 Sheriff DFCF 15,805 14,420 17,210 13,015 Sheriff Fast Cop 34,812 15,729 19,083 County Clerk Preservation 21,248 34,708 22,894 33,062 Dist. 1 D.E.Q. Settlement 1,127,544 19,494 198,798 948,240 CDBG Fire 42,057 39,123 2,934 Community Crisis Grant Fund 12,120 12,120 Sheriff Commissary 11,775 66,112 65.426 12,461 Sheriff Drug Buy 2,350 1,500 850 Child Abuse Prevention 4245 430 4,675 Board of Prisoners 190,309 389,329 479,429 100,209 Sheriff LEBG 30 30 Ins. Recovery Cash Fund 8 8 Protest Tax 122,004 122,004 Tax Refunds 59 59 Sinking Fund 37,968 39,233, 39,068 38,133 Excess Resale 2,485 106 2,591 Law Library 8373 35,685 35,175 8,883 Municipal 22,096 240,479 244,672 17,903 County EMS 605 118,011 114,926 3,690 Schools 48,094 5,695,884 5,624,497 119,481 Individual Redemption 2,421 20,068 19,172 3,317 Individual Redemption Fee 205 205 Official Depository 668,068 4,106,501 4,160,491 93,137 707,215 Total County Funds $__4,879,565_ “$17,246,969 “$17,157,166 “$3 93,137 ~S 5,062,505 The notes to the financial statements are an integral part of this statement. 3 --- OCR page 17 of 41 --- OTTAWA COUNTY, OKLAHOMA COMPARATIVE STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN CASH BALANCES - BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2003 EEE General Fund _—————— Original Final Budget Budget Actual Variance Beginning Cash Balances $ 711,959 $ 711,959 $ 711,959 $ - Less: Prior Year Outstanding Warrants (96,033) (96,033) (95,957) 6 Less: Prior Year Encumbrances (134,397) __(134,397) (133,484) 913 Beginning Cash Balances, Budgetary Basis 481,529 481,529 482,518 989 Receipts: Ad Valorem Taxes 850,337 850,337 891,984 41,647 Sales Tax 813,847 813,847 888,222 74,375 Charges for Services 313,070 313,070 353,769 40,699 Intergovernmental Revenues 245,955 283,012 273,747 (9,265) Miscellaneous Revenues 53,103 $3,103 41,381 (11,722) Total Receipts, Budgetary Basis 2,276,312 2,313,369 2,449,103 135,734 Expenditures: Total District Attorney 7,000 7,000 1,298 5,702 County Sheriff 906,726 921,827 921,776 31 Capital Outlay 50,000 34,899 34,899 Total County Sheriff 956,726 956,726 956,675 El County Treasurer 82,724 83371 74,370 9,001 Capital Outlay 1 1 1 Total County Treasurer 82,725 83372 74,370 9,002 Total County Commissioners 152,178 153,330 152,915 415 Total OSU Extension 41,640 33,040 42,864 176 County Clerk 204,160 204,517 204,396 121 Capital Outlay 1,250 1,550 1,520 30 Total County Clerk 205,410 206,067 205,916 151 Total Court Clerk 357,699 370,362 369,419 943 Total County Assessor 130,885 132,653, 131211 1442 Total Revaluation of Real Property 90,905 91,752 89,686, 2,066 General Government 409,541 408,309 299,391 108,918 Capital Outlay 200,000 217,958 42,652 175,303 Total General Government 609,541 626,264 342,043 284,221 continued on next page The notes to the financial statements are an integral part of this statement. 4 --- OCR page 18 of 41 --- OTTAWA COUNTY, OKLAHOMA COMPARATIVE STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN CASH BALANCES - BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2003 EEE eee continued from previous page Original Final Budget Budget Actual Variance Total Excise-Equalization Board $ 1,964 $1,964 S874 $ 90 County Election Board 99,132 99,132 97,294 1,838 Capital Outlay 400 400 390 10 Total County Election Board 99,532 99,532 97,684 1,848 Total County Audit Budget 10,135 10,135 10,135 ~ Total County Cemetery 1 1,201 1,200 1 Total Free Fair Budget 9,500 9,500 9,209 291 Provision for Interest on Warrants 2,000 2,000 2,000 ‘Total Expenditures, Budgetary Basis 2,757,841 2,794,898 2,486,499 308,399 Excess of Receipts and Beginning Cash Balances Over Expenditures, Budgetary Basis $ - $ - 445,122 $445,122 Reconciliation to Statement of Receipts, Disbursements, and Changes in Cash Balances Add: Current Year Encumbrances 28,567 Add: Current Year Outstanding Warrants 115,910 Ending Cash Balance $_ 589,599 The notes to the financial statements are an integral part of this statement. 5 --- OCR page 19 of 41 --- OTTAWA COUNTY, OKLAHOMA COMPARATIVE STATEMENT OF RECEIPTS, EXPENDITURES, AND CHANGES IN CASH BALANCES - BUDGET AND ACTUAL - COUNTY HEALTH DEPARTMENT FUND FOR THE YEAR ENDED JUNE 30, 2003 —_—_—————————_—_—_—_—_—__—_—_—_— County Health Department —————— ee Original Final Budget Budget Actual Variance Beginning Cash Balances $ 154,705 $ 154,705 $ 154,705 § - Less: Prior Year Outstanding Warrants (705) (705) G12) 393 Less: Prior Year Encumbrances — 06.495) _(66,495) _ (64,544) 1,951 Beginning Cash Balances, Budgetary Basis 87,505 87,505 89,849 2,344 Receipts: Ad Valorem Taxes 127,550 127,790 133,798 6,008 Charges for Services 155,672 155,672 Intergovernmental Revenue 199,705 199,705 Total Receipts, Budgetary Basis 127,550 483,167 489,175 6,008 Expenditures: Health and Welfare 214,055 569,672 488,109 81,563 Capital Outlay 1,000 1,000 1,000 Total Expenditures, Budgetary Basis 215,055 370,672 488,109 82,563 Excess of Receipts and Beginning Cash Balances Over Expenditures, Budgetary Basis $ - 38 : 90915 _$ 90915 S12 = Reconciliation to Statement of Receipts, Disbursements, and Changes in Cash Balances Add: Current Year Encumbrances 10,143 Add: Current Year Outstanding Warrants 9,871 Ending Cash Balance $110,929 The notes to the financial statements are an integral part of this statement. 6 --- OCR page 20 of 41 --- OTTAWA COUNTY, OKLAHOMA DETAILED STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN CASH BALANCES - SINKING FUND FOR THE YEAR ENDED JUNE 30, 2003 EEE Beginning Cash Balance $ 37,968 Receipts: Ad Valorem Taxes 38,033 Miscellaneous 1,200 Total Receipts 39,233 Disbursements: G.O. Bonds 15,000 County Judgments 9,570 Interest Paid 14,498 Total Disbursements 39,068 Ending Cash Balance $ 38,133 ‘The notes to the financial statements are an integral part of this statement. 7 --- OCR page 21 of 41 --- OTTAWA COUNTY, OKLAHOMA DETAILED STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN CASH BALANCES - OFFICIAL DEPOSITORY ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2003 S————o Beginning Ending Official Depository Cash Balance Cancelled Cash Balance Accounts July 1, 2002 Receipts Disbursements Vouchers Sune 30, 2003 Court Clerk S$ 278315 $ 1,636859 $1,545,148 § 7403 § 377.429 Court Clerk Revolving Fund 22,730 40,113 16,802 46,041 Court Fund 207,845 930,493 958,813 104 179,629 Treasurer 15,640 132,708 133,838 427 14,937 Election Board 1,909 34,613 35,188 575 1,909 County Sheriff 10,220 190,894 273,341 79,303 7,076 Health 997 182,712 160,581 23,128 County Assessor 7,696 7,696 ‘County Clerk Recorder 16,850 195,036 195,202 1,200 17,884 District Attorney 113,562 755,377 833,882 4,125 39,182 Total Official Depository Accounts $668,068 8410650 STOOL SRT TTS The notes to the financial statements are an integral part of this statement, 8 --- OCR page 22 of 41 --- OTTAWA COUNTY, OKLAHOMA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2003 1. Summary of Significant Accounting Policies A. Reporting Entity Counties were created by the Constitution of Oklahoma. One county officer is appointed; however, most county officers are locally elected by their constituents. All county powers are delegated by the state. The accompanying special-purpose financial statements present the receipts, disbursements, and changes in cash balances of all funds of Ottawa County, Oklahoma, and comparisons of such information with the corresponding budgeted information for the general fund and county health department fund of the County. The funds presented are established by statute, and their operations are under the control of the County officials. The general fund is the County’s general operating fund, accounting for all financial resources except those required to be accounted for in another fund. The other funds presented account for financial resources whose use is restricted for specified purposes. B. Fund Accounting The government uses funds to report on receipts, disbursements, and changes in cash balances, Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities, C. Basis of Accounting The financial statements are prepared on a basis of accounting wherein amounts are recognized when received or disbursed. This basis of accounting differs from accounting principles generally accepted in the United States of America, which require revenues to be recognized when they become available and measurable or when they are earned, and expenditures or expenses to be recognized when the related liabilities are incurred. D. Budgetary Policies Under current Oklahoma Statutes, the general fund and the county health department fund are the only funds required to adopt a formal budget. The budget presented for the general fund and county health department fund includes the originally approved budgeted appropriations for expenditures and final budgeted appropriations as adjusted for supplemental appropriations and approved transfers between budget categories. Appropriations for the highway funds and other funds are made on a monthly basis, according to the funds then available. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employcd as an extension of formal budgetary integration in the general fund and county health department fund. 9 --- OCR page 23 of 41 --- OTTAWA COUNTY, OKLAHOMA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2003 EEE Summ: igni unting Policies (continued) Any encumbrances outstanding at year-end are included as reservations of cash balances, budgetary basis, since they do not constitute expenditures or liabilities. At the end of the year, unencumbered appropriations are lapsed. The Statements of Receipts, Expenditures, and Changes in Cash Balances - Budget and Actual — for the General Fund and the County Health Department Fund present comparisons of the legally adopted budget with actual data. The “actual” data, as presented in the comparison of budget and actual, will differ from the data as presented in the Statement of Receipts, Disbursements, and Changes in Cash Balances - All Funds because of adopting certain aspects of the budgetary basis of accounting and the adjusting of encumbrances to their related budget year. The County Treasurer collects and remits material amounts of intergovernmental revenues and ad valorem tax revenue for other budgetary entities, including the county health department, school districts and cities and towns. These other budgetary entities produce and file their own financial statements and estimates of needs (budgets). These related cash receipts and disbursements of other budgetary entities are not included in the County’s Estimate of Needs. E. Cash and Investment The County pools cash resources of its various funds to facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements. Investments are carried at cost, which approximates market value. All funds were fully invested or deposited in interest-bearing demand accounts at June 30, 2003. F. Risk Management The County is exposed to various risks of loss as follows: Types of Loss Method Managed Risk of Loss Retained General Liability The County participates If claims exceed - Torts in a public entity risk the authorized - Errors and Omissions pool; Association of deductibles, the - Law Enforcement County Commissioners of County could have to Officers Liability Oklahoma-Self-Insurance pay its share of any - Vehicle Group (See ACCO-SIG). pool deficit. A Physical Plant judgment could be - Theft assessed for claims in - Damage to Assets excess of the pool’s - Natural Disasters limits. 10 --- OCR page 24 of 41 --- OTTAWA COUNTY, OKLAHOMA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2003 ——<<—<—<—<—<<<