Audit (Special) Report 2012-S2 Impact Fee and Economic Development (Job Creation Investment Program) co-
Internal Audit Department
Op Ti1E C1RC
Report 2012 — S2
Impact Fee & Economic Development
Job Creation Investment Program
December 2011
Dwight E. Brock
Clerk of the Circuit Court
3299 Tamiami Trail East
Suite #402
Naples, FL 34I 12-5746
www.coIlierclerk.com
Prepared by: Patrick Blaney, Senior Internal Auditor
Report Distribution: Board of County Commissioners
Leo Ochs, Jr., County Manager
Amy Patterson, Manager, Impact Fee & Economic Development Office
Cc: Dwight E. Brock, Clerk of the Circuit Court
Crystal K. Kinzel, Director of Finance & Accounting
Table of Contents
Background .2
Summary 2
Scope 2
Observations, Recommendations and Responses 2
Conclusion 3
Workpapers supporting the observations noted within this report are public record and can be made available
upon request once the final audit report has been issued. The files and draft versions of audit reports remain
confidential and protected from public records requests during an active audit under Nicolai v. Baldwin (Aug.
28, 1998 DCA of FL, Sth District) and Section 1 19.0713, Florida Statutes.
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BACKGROUND
The Clerk's Finance Director requested Internal Audit to observe the Impact Fee & Economic Development
Office's validation of jobs created in accordance with the Job Creation Investment Program. This program is a
performance-based Collier County initiative authorized in Board of County Commissioners(BCC) Ordinance 2003-
60. It provides general revenue funding to local businesses for the creation of jobs that meet the criteria specified in
the Ordinance. Those criteria, which vary by geographic location within the county, include minimum numbers of
new jobs at specific wage levels. Ordinance 2003-60 states that the program's purpose is "to promote and foster
economic diversification through the retention and creation of high wage jobs in targeted industry clusters."
Ordinance 2003-60 originally terminated this program on October 1, 2008, but on September 9, 2008, the BCC
enacted Ordinance 2008-46, which extended the Job Creation Investment Program to October 1,2013.
To be eligible, businesses must apply to the County Manager prior to making the decision to locate or expand
within Collier County. The general fund pays $1,000 to$3,000 over a three year period to qualifying businesses for
each job created.
SUMMARY
This examination generated the following observations for the Job Creation Investment Program:
• Payroll records were reviewed for Animal Specialty Hospital, Florida Specialties, Guadalupe Center, Haynes
Corporation, and NCH/Anchor Health Center. Haynes Corporation requested that its records remain
confidential, in accordance with section 288.075, Florida Statutes. For all employees in created jobs, names,
addresses, hire dates,job titles, and pay rates were captured. Average rates of pay were calculated for all jobs
created,and compared to the minimum requirements of the Ordinance.
On July 28, 2010, the Board of County Commissioners approved a waiver from the 150% of average private
sector wage requirement for Haynes Corporation. At the request of the Economic Development Council, the
BCC accepted Haynes into the Job Creation Investment Program at 87% of the average private sector wage.
Due to that waiver,no exceptions from the average wage requirements were noted.
• Site visits were conducted to vouch payroll record data to the personnel records of all employees in created
jobs. The verified data consisted of employees' names, addresses, hire dates, job titles, and pay rates. The
procedures revealed no exceptions. These tests documented the following numbers of jobs created: 24 at
Animal Specialty Hospital, 10 jobs at Florida Specialties, 25 at Guadalupe Center, 12 at Haynes Corporation,
and 15 jobs at NCH/Anchor Health Center.
SCOPE
This examination consisted of validating jobs created, including,but not limited to, the following:
• Reviewing sections 125.045,288.075,and 688.02,Florida Statutes;
• Reviewing Collier County Ordinances 2003-60 and 2008-46;
• Validating payroll records from the following businesses;
o Animal Specialty Hospital
o Florida Specialties
o Guadalupe Center
o Haynes Corporation
o NCH/Anchor Health Center
• Visiting the respective businesses and interviewing applicable management;
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• Scheduling data from payroll records for all employees holding jobs claimed as created;and
• Tracing payroll data, such as names, addresses, hire dates,job titles, and pay rates,to the personnel records.
Internal Audit tested 100% of applicable payroll and personnel records for each of the five companies in the Job
Creation Investment Program. The objectives of this special request were to validate the wages paid for jobs
claimed to have been created by eligible employers, and to confirm the 94 employees in those created jobs.
CONCLUSION
Due to the Job Creation Investment Program's compliance with the requirements of Ordinance 2003-60, there are
no adverse observations to report.
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