Audit Report 2013-3 Impact Fee & Economic Development (Job Creation Investment Program) CO
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Audit Report 2013-3
Impact Fee & Economic Development
Job Creation Investment Program
Dwight E. Brock
Clerk of the Circuit Court
3299 '1'amiami 'I'rail East Issued: June 21, 2013
Suite #402
Naples. FL 34112-5746
www.col I ierc Ierk.cum
Prepared by: Patrick Blaney, Senior Internal Auditor
Report Distribution: Board of County Commissioners
Leo Ochs, Jr., County Manager
Bruce Register, Director, Business & Economic Development
Amy Patterson, Manager, Impact Fee & Economic Development
Cc: Dwight E. Brock, Clerk of the Circuit Court
Crystal K. Kinzel, Director of Internal Audit/Finance &Accounting
Table of Contents
Background 2
Summary 2
Scope 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, 5th District) and Section 1 19.07I3, 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 specified 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 2006-36 defines jobs as "limited
to individual permanent legal residents of the United States who are employed in each new created position of
employment at a primary location in Collier County, and as applicable maintained, as a result of the program."
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 Center of Florida, LLC, Florida Specialties, LLC, and
Guadalupe Center, Inc. Names,job titles, hire dates, and pay rates were recorded for all employees in created
jobs. Rates of pay were averaged for all jobs created, and compared to the minimum requirements of the
Ordinance.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,job titles,hire dates, lawful US residency, and pay rates.
The procedures revealed no exceptions. These tests validated the following numbers of jobs created: 27 at
Animal Specialty Center of Florida,LLC,20 at Florida Specialties,and 25 jobs at Guadalupe Center.
SCOPE
This examination consisted of validating jobs and wages,including,but not limited to,the following:
• Reviewing sections 125.045,288.075,and 688.02,Florida Statutes;
• Reviewing Collier County Ordinances 2003-60,2006-36,and 2008-46;
• Examining payroll and personnel records from the following businesses;
o Animal Specialty Center of Florida,LLC
o Florida Specialties,LLC
o Guadalupe Center,Inc.
• Visiting the respective businesses and interviewing applicable management;
• Scheduling data from payroll records for all employees holding jobs claimed as created;and
• Tracing payroll data, such as names,job titles, hire dates, lawful US residency, and pay rates, to the personnel
records.
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Internal Audit tested 100% of applicable payroll and personnel records for each of these three companies. 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 72 employees in those created jobs.
CONCLUSION
Due to these three entities' compliance with the requirements of the Job Creation Investment Program's Ordinances
2003-60,2006-36,and 2008-46,there are no adverse observations to report.
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