Phillips Harvey FY13/14 Audit �.� ' ` ,,�� GREATER NAPLES FIRE RESCUE DISTRICT
(gb . ADMINISTRATIVE HEADQUARTERS
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'-' ' 14575 Collier Boulevard • Naples, FL 34119
` r,"' Phone: (239)348-7540 Fax: (239)348-7546
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�" Kingman Schmidt,Fin Chief
May 21,2015
ETT
Auditor General's Office
Local Government Audits/342 ,,; + 1 2015
Claude Pepper Building, Room 401
111 West Madison Street
By ��
Tallahassee, Florida 32399-1450
Dear Sir/Madam:
The firm of Phillips Harvey Group recently did a 2013/2014 fiscal year audit for the Golden Gate
Fire Control & Rescue District. The Fire District received the completed audit report on May 12,
2015.
As a matter of record, the Golden Gate Fire Control & Rescue District has complied with the
Rules of the Auditor General Chapter 10.550.
As required by the Rules of the Auditor General (Section 10.554(g) (6) c. and,10.556), the
Golden Gate Fire Control & Rescue District is continually monitoring its financial condition.
Sincerely,
iiipp
ishop I
Deputy Director
TB/pm
RECEIVED
MAY 2 9 2015
FINANCE
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
TABLE OF CONTENTS
SEPTEMBER 30, 2014
PAGE
PART I. FINANCIAL SECTION
Independent Auditors' Report 1
Management's Discussion and Analysis(MD&A) 4
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 12
Statement of Activities 13
Fund Financial Statements:
Balance Sheet- Governmental Funds 14
Statement of Revenues, Expenditures and Changes in
Fund Balances-Governmental Funds 15
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 16
Notes to Financial Statements 17
PART II. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
Statement of Revenues, Expenditures and Changes in
Fund Balances- Budget and Actual- Governmental Funds 37
PART III. OTHER REPORTS SECTION
Independent Auditors' Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters based on an Audit of the Financial
Statements Performed in Accordance with Government Auditing Standards 38
Independent Auditors' Report on Compliance with
Section 218.415, Florida Statutes 40
Independent Auditors' Report on Compliance for Each Major Federal Program
and on Internal Control Over Compliance Required By OMB Circular A-133 41
Schedule of Findings and Questioned Costs—Federal Awards 43
Schedule of Expenditures of Federal Awards 45
Management Letter- Local Government Entities 46
Phillips Harvey
GROUP
Nathan A.Phillips,CPA
Deborah L.Harvey,CPA
INDEPENDENT AUDITORS' REPORT
Stephanie J.Feldman,CPA
Shannon Huber,CPA
February 24, 2015 Clara V.Lopez,CPA
Michelle L.Vastola,CPA
To The Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
Naples, Florida
We have audited the accompanying financial statements of the governmental activities and each major fund of
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT as of and for the year ended September 30, 2014,
and related notes to the financial statements, which collectively comprise the District's basic financial
statements as listed in the table of contents.
Management's Responsibility 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.
Auditor's Responsibility
Our responsibility is to express opinions 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the District's preparation and fair
presentation of the financial statements 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 District's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
- 1 - Certified Public Accountants
801 Laurel Oak Drive,Suite 303,Naples,FL 34108
P 239 566 1600 I F 239 566 1901 1 swflcpas.com
, Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
February 24, 2015
Page 2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities and each major fund of GOLDEN GATE FIRE CONTROL AND
RESCUE DISTRICT as of September 30, 2014, and the respective changes in financial position for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and budgetary comparison information on pages 4 through 11 and 37 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's basic financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations, and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the 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 schedule of expenditures of federal awards is fairly stated, in material respects in relation to
the basic financial statements taken as a whole.
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Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
February 24, 2015
Page 3
Other Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated February 24, 2015,
on our consideration of GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's compliance with
provisions of Section 218.415, Florida Statutes. The purpose of that report is to describe the scope of our
testing of compliance and the results of that testing, and to provide an opinion on compliance with the
aforementioned Statute. That report is an integral part of an audit performed in accordance with Sections
218.39 and 218.415, Florida Statutes in considering GOLDEN GATE FIRE CONTROL AND RESCUE
DISTRICT's compliance with Section 218.415, Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 24, 2015,
on our consideration of the GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT'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 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 GOLDEN GATE FIRE
CONTROL AND RESCUE DISTRICT's internal control over financial reporting and compliance.
IL - At_ GR , P.A.
Certified Public A countants
Naples, Florida
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
The Golden Gate Fire Control & Rescue District's discussion and analysis is designed to provide an overview
of the District's financial activities for the fiscal year ended September 30, 2014. In accordance with Florida
Statutes, the District is required to have an annual audit.
FINANCIAL HIGHLIGHTS
• Levied taxes through the TRIM process. The millage rate was set at 1.5 mills.
• The net position of the District increased by $241,669.
• At the close of the current fiscal year, the District had a fund balance of$4,012,453 in the General
Fund.
• At the close of the current fiscal year, the District had a fund balance of$132,545 in the Special
Revenue Fund (Impact Fees).
• At the close of the current fiscal year, the District had debt and other obligations in the amount of
$7,064,895.
OVERVIEW OF THE FINANCIAL STATEMENTS
GASB Statement 34 represents a monumental change from the manner in which government financial
statements are recorded and presented. For the first time, it provides a concise "entity-wide" Statement of Net
Assets and Statement of Activities to give the user of the financial statements a combined overview of the
District's financial position and result of operations, eliminating interfund activities and "other people's money"
such as pension funds, which can mislead users when incorporated in a combined manner.
Additionally, this new reporting model requires the use of accrual accounting (which focuses on economic
resources)at the top most level, while maintaining modified accrual accounting (which focuses on current
financial resources—budgeted resources)at the individual fund level. This is an important change in
governmental accounting. For the first time, the impact of long-term financial decisions can be more properly
matched to the period in which the expense or revenue is more properly attributed. In short, more fairness in
presentation is achieved and the impacts of long-term decisions are promptly recorded as the transactions
occur, as opposed to the traditional method of recording them when the bill is paid.
In 2013, the District adopted new accounting guidance, GASB Statement No. 63, Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. The statement required
that the difference between assets and liabilities be reported as net position. In addition, the impact of a
deferred outflow of resources or a deferred inflow of resources must be explained. As of September 30, 2014,
the District did not have deferred outflow of resources or deferred inflows of resources to be reported.
Government-wide Statements: The government-wide financial statements are designed to provide readers
with a broad overview of the District's finances. These statements include all assets and liabilities using the
accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of
the current year's revenues and expenses are taken into account regardless of when cash is received or paid.
The government-wide financial statements consist of a Statement of Net Position and a Statement of Activities.
The Statement of Net Position presents information on all of the District's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the District is improving or deteriorating,
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
OVERVIEW OF THE FINANCIAL STATEMENTS—Continued
The Statement of Activities presents information showing how the government's net position changed during
the most recent fiscal year. All changes in net position are reported when the change occurs, regardless of the
timing of the related cash flows. Thus revenues and expenses are reported in this statement for some items
that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
These two statements report the Fire District's net position and changes in them. One can think of the
District's net position-the difference between assets and liabilities-as one way to measure the District's
financial health, or financial position.
Fund financial statements: A fund is a grouping of related accounts used to maintain control over resources
that have been segregated for specific activities or objectives. The Fire District, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. The District's funds can be divided into two categories: general fund and special revenue fund
(impact fees).
General Fund is the general operating fund of the District. It is used to account for all financial resources
except those required to be accounted for in another fund.
Special Revenue Fund is used to account for impact fees required to be used for future capital outlays in
response to growth of the community.
Notes to the financial statements: The notes provide additional information essential to a full understanding of
the data provided in the government-wide and fund financial statements. The notes to the financial statements
can be found on pages 17-36 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information. The individual fund statements with budget to actual are
found on page 37 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position: As noted earlier, net position may serve over time as a useful indicator of a
government's financial position. The District's assets exceeded liabilities by $3,443,555 at the close of the
most recent fiscal year The largest portion of the District's net position reflects its investment in capital assets
(e.g. land, building, apparatus and equipment); less any related debt used to acquire those assets that are still
outstanding. The Golden Gate Fire District uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the District's investment in its
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. The table below reflects the condensed government-wide Statement of Net Position.
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS—Continued
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NET POSITION
AS OF SEPTEMBER 30, 2014
FY 2013 FY 2014 %
Current and Other Assets $ 4,127,725 $ 4,395,381 6.5%
Capital Assets 6,875,334 6,400,233 -6.9%
Total Assets 11.003.059 10,795,614 -1.9% (1)
Current and Other Liabilities 250,028 287,164 14.9%
Long-Term Liabilities 7,551,145 7,064,895 -6.4% (2)
Total Liabilities 7.801,173 7.352,059 -5.8%
Net Position:
Invested in Capital Assets, net (242,093) (217,576) -10.1%
Restricted 54,725 115,910 111.8%
Unrestricted 3,389,254 3,545,221 4.6%
Total Net Position $ 3.201,886 $ 3.443,555 7.5%
• Net position shows the difference between the Fire District's assets and liabilities.
• The bulk of General funds and Impact Fee funds (Special Revenue Fund)are kept in separate saving
accounts at the State Board of Administration in Tallahassee until needed.
(1) During fiscal year 2014 total assets decreased due to the annual depreciation recording of$499,397.
(2) Long term liabilities went down due to payments made on existing loans and normal debt amortization
as well as cancellation of interest-swap agreement.
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS—Continued
Statement of Activities: The Fire District's net position increased by $241,669 during the current fiscal year.
The table below compares the revenues and expenses for the two activity types for the current fiscal year.
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
CHANGES IN NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2014
FY 2013 FY 2014
Program Revenues:
Charges for services $ 93,788 $ 104,348 11.3%
Operating Grants 815,157 730,173 -10.4%
General Revenues:
Ad Valorem Taxes 6,769,092 6,987,527 3.2%
Investment Earnings 9,401 4,604 -51.0%
Impact Fees and Other 829,112 398,808 -51.9%
Total Revenue 8,516,550 8,225,460 -3.4%
Expenses:
Public safety:
Employee costs 6,376,469 6,453,904 1.2%
Outside services 747,911 687,399 -8.1%
Materials and supplies 387,243 209,729 -45.8%
Depreciation 577,830 499,397 -13.6%
Debt service:
Interest expense 312,762 133,362 -57.4%
Loss on disposal of capital assets 0 0 0.0%
Total Expenses 8,402,215 7,983,791 -5.0%
Change in net position 114,335 241,669 111.4%
Net Position - Beginning of Year 3.087,551 3,201,886 3.7%
Net Position - Ending of Year $ 3,201,886 $ 3.443,555 7.5%
General Revenues
During fiscal year of 2014 the Fire District received a 3.2% increase in Ad Valorem tax dollars over the prior
fiscal year. Investment earnings decreased 51.0% due to the decrease of funds kept in savings and interest
rates over the prior fiscal year. With interest rates being low a larger portion of funds were kept in the checking
accounts to offset banking charges. Operating grants decreased 10.4% due to fewer funds available from the
Safer Cost Reimbursement Grant. Other revenues decreased 51.9% over the prior fiscal year mainly due to
the loss of derivative income (termination of interest swap).
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS-Continued
Expenses
During fiscal year of 2014 outside services decreased by 8.1% over the prior fiscal year due to cutting back on
expenditures wherever possible. Materials and supplies decreased by 45.8% over the prior fiscal year due to
cutting back on expenditures wherever possible. Depreciation declined 13.6% due to fully depreciated capital
assets.
Net Position
During fiscal year 2014 net position increased due to the Safer Cost Reimbursement Grant as well as the full
year of depreciation of$499,397. Total 2014 expenses were less than total revenues by$241,669.
Liabilities
Long term liabilities went down due to payments being made on existing loans and compensated absences.
GENERAL FUND BUDGETARY HIGHLIGHTS
By motion, transfers of unencumbered appropriation balances are made at midyear to reflect changes in
anticipated revenues and/or expenditures.
The following compares original general fund budget to final budget:
ORIGINAL FINAL
• Revenues $11.271,554 $11,834.912
• Expenditures $11,271,554 $11.834.912
SPECIAL REVENUE FUND BUDGETARY HIGHLIGHTS
The following compares original special revenue fund budget to final budget:
ORIGINAL FINAL
• Revenues $ 150,000 $ 268,338
• Expenditures $ 150.000 $ 268,338
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets: The Fire District's investment in capital assets as of September 30, 2014, amounts to
$6,400,233 (net of accumulated depreciation). The investment in capital assets includes land, buildings,
apparatus and equipment.
Long-term Debt: At the end of the current fiscal year, the Golden Gate Fire District had total debt outstanding
of$7,064,895.
Long-term debt at the end of the current fiscal year included (see page 29—31 for further details):
• Lease purchase agreement for Station #70.
• Loan for purchase of new fire truck (Pumper at Station #71).
• Construction Loan at Fifth Third Bank for$8mil for building two fire stations.
• Compensated absences.
• Loan for purchase of LED lighting fixtures for Stations#71, #72, #73
GOVERNMENTAL FUNDS FINANCIAL ANALYSIS
Changes in General Fund Balances
PERCENT
2013 2014 CHANGE
Revenues
Ad Valorem and County Taxes $ 6,769,092 $ 6,987,527 3.2%
Grant Income 815,157 730,173 -10.4%
Impact and Other Fees 93,788 104,348 11.3%
Investment Income 9,372 4,561 -51.3% (1)
Miscellaneous 167,343 193,357 15.5%
Total Revenues 7,854,752 8,019,966 2.1%
Expenses
Public Safety 7,558,770 7,355,417 -2.9%
Capital Outlay 133,221 27,942 -79.0% (2)
Debt Service 399,958 487,862 22.0% (3)
Total Expenses 8,091,949 7,871,221 -2.7%
Other Financing Sources (Uses)
Proceeds from Capital Lease 120,588 0 -100.0%
Change in Fund Balance (116,609) 148,745 227.6%
Fund Balance - Beginning of Year 3,980,317 3,863,708 -2.9%
Fund Balance - End of Year $ 3,863,708 $ 4,012,453 3.8%
(1) Investment income decreased due to lower interest rates and fewer funds for investment in 2014.
(2) Capital Outlay decreased due to fewer capital item purchases.
(3) Debt Service increased due to resuming payment of principal amount on 51h/3'd Bank Construction
Loan.
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
GOVERNMENTAL FUNDS FINANCIAL ANALYSIS—Continued
Changes in Special Revenue (Impact Fee) Fund Balances
PERCENT
2013 2014 CHANGE
Revenues
Impact and Other Fees $ 148,362 $ 205,451 38.5% (1)
Investment Income 29 43 48.3%
Total Revenues 148,391 205,494 38.5%
Expenses
Debt Service 130,000 145,952 12.3%
Total Expenses 130,000 145,952 12.3%
Change in Fund Balance 18,391 59,542 423.8%
Fund Balance- Beginning of Year 54,612 73,003 33.7%
Fund Balance - End of Year $ 73,003 $ 132.545 81.6%
(1) Impact and other fees revenue increased due to return of new construction in our area.
FUND BALANCE DISCLOSURE
In accordance with GASB No. 54, the District classifies governmental fund balances as follows:
GENERAL SPECIAL TOTAL
FUND REVENUES FUNDS
Non-spendable $ 120,934 $ 0 $ 120,934
Restricted 4,675 132,545 137,220
Committed 0 0 0
Assigned:
Revenue and contingency reserve 3,368,849 0 3,368,849
Unassigned 517,995 0 517,995
Total $ 4,012,453 $ 132.545 $ 4,144,998
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
MANAGEMENT'S DISCUSSION and ANALYSIS
SEPTEMBER 30, 2014
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
When preparing the fiscal year 2015 budget, the District considered the increase in cost for just doing business
and any anticipated changes in the development of our area that would make an impact on the tax dollars
received. The District obtains most of its funding from ad valorem tax dollars. The Property Appraiser has
forecasted an increase in tax rolls for FY 2015. Impact fees continue to increase which has an impact on the
District's budget. This in turn means that the District will have more funds available for necessary operating
expenses which include personnel costs.
General Fund Budget: The Collier County Property Appraiser certified the preliminary FY 2015 tax roll on June
27, 2014. The District's assessed taxable value is at 5,057,814,343 an increase of 323,131,083 or 6.8% from
the prior year's final tax roll. The Fire Board approved setting the millage rate at 1.5 mills for FY 2015. The
Fire District will receive an increase in tax dollars of$347,181 or 5.0%.
Use of Prior Year General Fund Cash: The fund balance for FY 2014 is being used to fund the necessary
reserve portions of the FY 2015 General Fund Budget.
Special Revenue Fund Budget: The District is anticipating an increase of$75,000 to be collected from impact
fees in FY 2015 plus an increase in the fund balance. During FY 2011, the District started receiving a small
increase in the amount of impact fees collected after having received decreases for five years. During FY
2014, the District continued to see an increase in impact fees collected. This is all due to a return of new
construction in our area. It is new construction that generates the impact fees.
On November 4, 2014, the voters approved the merger of Golden Gate Fire District and East Naples Fire
District into one special fire district to be known as Greater Naples Fire Rescue District.
Kingman D. Schuldt
Chief Kingman D. Schuldt
Golden Gate Fire Control and Rescue District
REQUESTS FOR INFORMATION
This financial report is designed to provide Golden Gate Fire Control & Rescue District's citizens and
taxpayers with a general overview of the District's finances and to show the District's accountability
for the money it receives. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Fire Chief, Golden Gate Fire
Control & Rescue District, 14575 Collier Blvd., Naples, FL 34119 or phone at 239-348-7540.
- 11 -
PART I. FINANCIAL STATEMENTS
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
GOVERNMENTAL
ACTIVITIES
ASSETS
Cash $ 1,287,321
Investments 2,459,245
Receivables (Note 4) 411,971
Prepaid expenses 120,934
Cash, restricted for lease interest(Note 7) 4,675
Cash and investments, restricted for impact fee 111,235
Capital assets, not being depreciated:
Land 774,341
Capital assets, net of accumulated
depreciation:
Buildings and improvements 4,560,424
Autos and trucks 740,384
Furniture, fixtures, and equipment 325,084
Total capital assets, net(Note 5) 6,400,233
Total assets 10,795,614
LIABILITIES
Accounts payable 63,184
Salaries and benefits payable (Note 6) 210,941
Interest payable 13,039
Compensated absences (Note 7):
Expected to be paid within one year 8,859
Expected to be paid after one year 438,227
Notes and capital leases payable (Note 7):
Portion due within one year 408,695
Portion due after one year 6,209,114
Total liabilities 7,352,059
NET POSITION
Net investment in capital assets (217,576)
Restricted for lease interest 4,675
Restricted for impact fees 111,235
Unrestricted 3,545,221
Total net position $ 3.443.555
The accompanying notes are an integral part of these financial statements.
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
GOVERNMENTAL
ACTIVITIES
Expenses:
Public safety-fire protection:
Personal services $ 6,453,904
Outside services 687,399
Materials and supplies 209,729
Depreciation 499,397
Interest on long-term debt and capital leases 133,362
Total program expenses 7,983,791
Program revenues:
Charges for services 104,348
Operating grants (Note 12) 730,173
834,521
Net program expense 7,149,270
General revenues:
Property taxes 6,987,527
Impact fee revenue 205,451
Interest income 4,604
Tower leases 153,120
Miscellaneous 40,237
Total general revenues 7,390,939
Change in net position 241,669
Net position, September 30, 2013 3,201,886
Net position, September 30, 2014 $ 3.443,555
The accompanying notes are an integral part of these financial statements.
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2014
GOVERNMENTAL FUND TYPES TOTAL
SPECIAL GOVERNMENTAL
GENERAL REVENUE FUNDS
ASSETS
Cash (Note 3) $ 1,287,321 $ 29,577 $ 1,316,898
Cash, restricted (Note 7) 4,675 0 4,675
Investments(Note 3) 2,459,245 81,658 2,540,903
Receivables (Note 4) 395,245 16,726 411,971
Prepaid expenses 120,934 0 120,934
Due from the General Fund 0 4,584 4,584
Total Assets $ 4.267.420 $ 132.545 $ 4,399.965
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 63,184 $ 0 $ 63,184
Accrued liabilities (Note 6) 187,199 0 187,199
Due to Special Revenue Fund 4,584 0 4,584
Total Liabilities 254,967 0 254,967
Fund Balances (Note 11):
Non-spendable 120,934 0 120,934
Restricted 4,675 132,545 137,220
Committed 0 0 0
Assigned 3,368,849 0 3,368,849
Unassigned 517,995 0 517,995
Total Fund Balances 4,012,453 132,545 4,144,998
Total Liabilities and Fund Balances $ 4.267.420 $ 132,545 4,399.965
Amounts reported for governmental activities in the
statement of net position are different because:
Fund balances - governmental funds 4,144,998
Capital assets used in governmental activities
are not financial resources and, therefore, are
not reported in the funds. 6,400,233
Long-term liabilities, including capital leases payable,
a promissory note obligation, related interest payable,
termination benefits/other are not due and payable in the
current period and therefore are not reported in the funds. (7,101,676)
Net position of governmental activities $ 3,443,555
The accompanying notes are an integral part of these financial statements.
- 14-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
GOVERNMENTAL FUND TYPES TOTAL
SPECIAL GOVERNMENTAL
GENERAL REVENUE FUNDS
Revenues:
Ad valorem and county taxes $ 6,987,527 $ 0 $ 6,987,527
Grant income 730,173 0 730,173
Impact and other fees 104,348 205,451 309,799
Interest and dividends 4,561 43 4,604
Tower leases and miscellaneous 193,357 0 193,357
Total Revenues 8,019,966 205,494 8,225,460
Expenditures:
Current
Public safety:
Employee costs 6,453,076 0 6,453,076
Outside services 696,258 0 696,258
Materials and supplies 206,083 0 206,083
Capital outlay 27,942 0 27,942
Debt service:
Principal retirement 473,994 25,624 499,618
Interest and fiscal charges 13,868 120,328 134,196
Total Expenditures 7,871,221 145,952 8,017,173
Excess revenues over expenditures 148,745 59,542 208,287
Fund Balances, September 30, 2013 3,863,708 73,003 3,936,711
Fund Balances, September 30, 2014 $ 4,012,453 $ 132,545 $ 4.144,998
The accompanying notes are an integral part of these financial statements.
- 15 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Amounts reported for governmental activities in the statement of activities (page 13)
are different because:
Net change in fund balances -total governmental funds (page 15) $ 208,287
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of these assets is allocated over
their estimated useful lives and reported as depreciation expense. This
is the amount by which depreciation exceeded capital outlays in the
current period. (471,455)
The issuance of long-term debt(e.g., notes, capital leases) provides
current financial resources to governmental funds, while the repayment
of the principal of long-term debt consumes the current financial resources
of governmental funds. Neither transaction, however, has any effect on
net position. This amount is the net effect of these differences in the
treatment of long-term debt. 499,618
Some items reported in the statement of activities including interest,
vacation/sick leave, termination benefits, and the disposal of capital
assets do not require the use of current financial resources and,
therefore, are not reported as expenditures in governmental funds. 5,219
Change in net position of governmental activities (page 13) $ 241,669
The accompanying notes are an integral part of these financial statements.
- 16 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
•
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting entity
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT(the District)is a local governmental unit created
by the Florida State Legislature to provide fire and rescue services to a certain prescribed area in Collier
County, Florida, and is an independent special district authorized and existing under Florida House Bill 0865.
The District is operated by a three-person board of commissioners. The government-wide balance sheet and
statement of activities and the General and Special Revenue include all of the operations and activities
relevant to the District.
During 2004, the District implemented Government Accounting Standards Board (GASB) Statement No. 34,
Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments,
Statement No. 37, Basic Financial Statements and Management's Discussion and Analysis-for State and
Local Governments;Omnibus Statement No.38, Certain Financial Statement Note Disclosures, and GASB
Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Government
Fund Financials. GASB Statement No. 34 and these related pronouncements established a new financial
reporting model for state and local governments that included the addition of management's discussion and
analysis, district-wide financial statements, required supplementary information and the elimination of the
effects of internal service activities, if any, and the use of account groups to the already required fund financial
statements and notes.
The GASB determined that fund accounting has and will continue to be essential in helping governments to
achieve fiscal accountability and should, therefore, be retained. The GASB also determined that district-wide
financial statements are needed to allow users of financial reports to assess a government's operational
accountability. The new GASB model integrates fund-based financial reporting and district-wide financial
reporting as complementary components of a single comprehensive financial reporting model.
As required by U.S. Generally Accepted Accounting Principles (GAAP), these financial statements present
Golden Gate Fire Control and Rescue District(the primary government)as a stand-alone government. The
reporting entity for the District includes all functions of the government in which the District's Board of
Commissioners exercises oversight responsibility. Oversight responsibility includes, but is not limited to,
financial interdependency, selection of governing authority, designation of management, significant ability to
influence operations and accountability for fiscal matters.
Based upon the application of the above mentioned criteria as set forth in Governmental Accounting Standards
Board Statement Number 14, The Financial Reporting Entity, as amended by GASB No. 39, Determining
Whether Certain Organizations Are Component Units, the District has identified no component units.
Government-wide and fund financial statements
The government-wide financial statements(i.e., the statement of net position and the statement of activities)
report information on all activities of the primary government. Governmental activities, which normally are
supported by taxes, are reported separately from business-type activities of which the District had no such
activities during 2014.
- 17 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Government-wide and fund financial statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include(1)charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and (2)grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, even though such funds are excluded from
the government-wide financial statements. All governmental funds of the District are reported as major
individual funds.
Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
Government fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current period or
soon enough thereafter to pay liabilities of the current period. The government considers all revenues
available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due. The
primary revenue sources that are susceptible to accrual are ad valorem taxes, impact fees, inspection fees and
interest. Other receipts and fees become measurable and available when cash is received by the District and
are recognized as revenue at that time.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements.
When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted
resources first, then unrestricted resources as they are needed.
The District reports the following major governmental funds:
General Fund -The General Fund is the general operating fund of the District. It is used to account for
all financial resources except those required to be accounted for in another fund.
Special Revenue Fund -The Special Revenue Fund is used to account for impact fees required to be
used for future capital outlays in response to growth of the community.
- 18-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BudAetary process
The budget and amendments, if any, are approved by the Commissioners. The budget is prepared on the
cash basis, which is considered not to be materially different from the modified accrual basis in accordance
with U.S. generally accepted accounting principles. The annual budget serves as the legal authorization for
expenditures. Expenditures cannot legally exceed the total amount budgeted. All budget amendments, which
change the legally adopted total appropriation, are approved by the Commissioners.
Encumbrances
Encumbrance accounting under which purchase orders and other commitments for expenditures of monies are
recorded is not employed by the District and thus no amount has been included in these basic financial
statements for encumbrances.
Due to and from other funds
Interfund receivables and payables arise from interfund transactions and are recorded by funds affected in the
period in which the transactions are executed. There were amounts due to and from other funds at September
30, 2014 in the accompanying fund statements.
Deferred Outflows/Inflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to future reporting
period(s). For example, the District would record deferred outflows of resources on the statement of net
position related to debit amounts resulting from current and advance refundings resulting in the defeasance of
debt(i.e. where there are differences between the reacquisition price and the net carrying amount of the old
debt.
Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s).
For example, when an asset is recorded in the fund financial statements, but the revenue is unavailable, the
District report a deferred inflow of resources on the balance sheet until such times as the revenue becomes
available.
As of September 30, 2014, the District did not have deferred outflows of resources or deferred inflows of
resources to be reported.
Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual -All
Governmental Fund Types
The budget column of this statement is prepared from the District's adopted annual budget, as amended during
the year, which reflects budgeted revenues and expenditures in total for all governmental fund types on a cash
basis which is comparable to the modified accrual basis of accounting for the year ended September 30, 2014.
Appropriations lapse at year-end.
- 19-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property tax calendar
The calendar is composed of the following dates:
1. Lien date - 3rd week in May
2. Levy date - July 1
3. Due date - March 31
4. Collection dates - November through March
Total Column on the Balance Sheet and the Statement of Revenues, Expenditures and Changes in
Fund Balances-Governmental Funds
The total columns on the balance sheet and the statement of revenues, expenditures and changes in fund
balances is presented only to facilitate financial analysis and also is utilized for reconciliation purposes to the
government-wide financial statements. Data in this column does not present financial position or results of
operations in conformity with U.S. generally accepted accounting principles, and such data is not comparable
to a consolidation.
Investments
Investments are reported and are equal or equivalent to market value. Florida Statutes allows the District to
invest surplus funds in:
a) The Local Government Surplus Funds Trust Fund, or any intergovernmental investment pool
authorized pursuant to the Florida Interlocal Cooperation Act of 1969, as provided in s.163.01.
b) Securities and Exchange Commission registered money market funds with the highest credit quality
rating from a nationally recognized rating agency.
c) Interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s.
280.02.
d) Direct obligations of the U.S. Treasury.
Certain funds are invested with the State Board of Administration (SBA)of Florida in the Local Government
Surplus Funds Trust Fund Investment Pool. These funds are recorded at cost, which according to the State
Board of Administration of Florida is approximately equal to the fair value of the investments for financial
reporting purposes.
Taxes and fees receivable
No allowance for losses on uncollectible accounts has been recorded since the District considers all amounts
to be fully collectible.
Prepaid items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government-wide and fund financial statements.
-20-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Pavables and accruals
Such payable and accrual amounts are recorded as expenses and liabilities when incurred in the government
wide financial statements and as expenditures and liabilities in the fund financial statements when paid and
when expected to be liquidated with available expendable financial resources.
Restricted assets
Certain resources set aside for impact fee expenditures, are classified as restricted assets on the statement of
net position because they are maintained in separate bank accounts and their use is limited by laws and
regulations. The "cash and investments restricted for impact fees" are solely required to be used for growth
capital expenditures. Cash restricted for prepaid interest was originally established pursuant to the Lease
Agreement dated April 2011, Note 7.
Capital assets
Capital assets, which include land, buildings and improvements, autos and trucks, and furniture, fixtures, and
equipment, are reported in the government-wide financial statements. Capital assets are defined by the
District as assets with an initial, individual cost of more than $500 and an estimated useful life in excess of one
year.
In the case of initial capitalization of District capital assets and within the guidelines promulgated by GASB 34,
the District was able to use historical cost and original purchase date for all such assets. As the District
constructs or acquires additional capital assets each period, such assets are capitalized and reported at
historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts
spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful
life. In the case of donations, the District values these capital assets at the estimated fair value of the item at
the date of donation. There were no such donated assets during 2014.
Interest on debt cannot meaningfully be associated with individual District functions and, consequently, is
reported as a separate line within governmental activities in the government-wide statement of activities. Such
treatment also applies to interest incurred on capital leases. The practical effect of capitalizing interest
incurred during the construction of capital assets used in governmental activities would be to allocate interest
cost to whatever function reported the related depreciation expense. However, the allocation of interest to
individual functions within governmental activities is not appropriate. Consequently, no such interest costs
incurred related to the construction of stations #72 and #73 were capitalized.
Capital assets of the District are depreciated using the straight line method over the following estimated useful
lives:
YEARS
Buildings and improvements 5 -39
Autos and trucks 5 - 15
Furniture, fixtures and equipment 3-20
-21 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Loney-term obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as
liabilities in the Statement of Net Position. In the fund financial statements, the face amount of debt issued and
debt principal and interest payments are reported as other financing sources and principal and interest
expenditures, respectively, in the Statement of Revenues, Expenditures and Changes in Fund Balances—
Governmental Funds.
Compensated absences
The District's employees earn vacation which may either be taken or accumulated, up to certain amounts, until
paid upon retirement or termination. Unused sick leave accumulates and is subject to a reduction if paid in
cash upon retirement or termination. The liability for compensated absences reflects amounts attributable to
employee services already rendered on a cumulative basis which is probable for payment.
Fund equity
The District displays its fund equity pursuant GASB 54 "Fund Balance Reporting and Governmental Fund Type
Definitions'. This statement establishes fund balance classifications that comprise a hierarchy based primarily
on the extent to which a government is bound to observe constraints imposed upon the use of resources
reported in governmental funds. Fund balance classifications, under GASB 54, are: Nonspendable, Restricted,
Committed, Assigned and Unassigned. These classifications reflect not only the nature of funds, but also
provide clarity to the level of restrictions placed upon fund balance. Fund balance can have different levels of
restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual
classification within the General Fund. The General Fund should be the only fund that reports a positive
unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further
details of various fund balance classifications, refer to Note 11.
Net position in the government-wide statements is categorized as invested in capital assets, net of related
debt, restricted or unrestricted. Invested in capital assets, net of related debt, represents net position related to
land, building and improvements, vehicles, and furniture, fixtures and equipment, net of any related debt.
Restricted net position for impact fees are funds legally mandated to be set aside solely for growth capital
expenditures.
Risk management
The District is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. Insurance coverage for such losses is purchased
from third-party carriers. The financial impact of the District's risk management activities are reported in the
general fund. For the fiscal year ended September 30, 2014, the District paid $194,555 to third-party carriers
to insure for these purposes. There has been no reduction in coverage from the prior year. Liabilities are
reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
There was no such type of occurrence during fiscal 2014. No accrual has been provided for claims and
incidents not reported to the insurer. Claims made have not exceeded the insurance coverage for the current
year.
- 22-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Explanation of certain differences between the government-wide statement of net position and the
governmental fund balance sheet
The government fund balance sheet includes a reconciliation between fund balance—total governmental funds
and net position—governmental activities as reported in the government-wide statement of net position. One
element of that reconciliation explains that "capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds."
Capital assets:
The details of this $6,400,233 difference are as follows:
Total historical cost of fixed assets at September 30, 2014 (Note 5) $ 19,524,371
Accumulated depreciation at September 30, 2014(Note 5) (13,124,138)
Net adjustment to increase fund balance-total governmental funds
to arrive at net position -governmental activities $ 6.40Q,233
Debt and other liabilities:
Another element of that reconciliation explains that "long term liabilities, including capital leases payable, a
promissory note obligation, interest payable, and termination benefits are not due and payable in the current
period and therefore are not reported in the funds."
The details of this ($7,101,676), (Notes 6 and 7)difference are as follows:
Capital lease payable-facility - Station #70 $ (109,162)
Capital lease payable -fire truck and equipment(P71) (71,305)
Capital lease obligations- LED lighting (80,026)
Promissory note obligation payable -Station#72 and #73 (6,357,316)
Compensated absences (447,086)
Accrued insurance benefits - previous retired Chief(Note 6) (23,742)
Accrued interest payable (13,039)
Net adjustment to reduce fund balance-total governmental funds
to arrive at net position-governmental activities $ (7,101,676)
- 23 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
(Continued)
Explanation of certain differences between the government-wide statement of activities and
governmental fund statement of revenues, expenditures and changes in fund balances
Capital outlay:
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net change in fund balances-total governmental funds and change in net position of
governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains that, "Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of these assets is allocated over their estimated useful lives and reported as
depreciation expense."
The details of this $(471,455) difference are as follows:
Capital outlay $ 27,942
Depreciation expense (Note 5) (499,397)
Net adjustment to decrease net change in fund balances—total governmental
funds to arrive at change in net position of governmental activities $ (471,455)
Long-term debt:
Another element of that reconciliation states that, "The issuance of long-term debt(e.g., notes, capital leases)
provides current financial resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds."
The details of this $499,618 (Note 7)difference are as follows:
Principal repayments:
Capital lease—facility $ 16,794
Capital leases -fire truck and equipment 148,228
Promissory note- stations#72 and #73 334,596
Net adjustment to increase net change in fund balances—total governmental
funds to arrive at change in net position of governmental activities $ 499,618
-24-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
(Continued)
Compensated Absence, Other Accruals and Other Items:
Another element of that reconciliation states that, "some expenses reported in the statement of activities
including interest, vacation/sick leave expense, termination benefits, and others do not require the use of
current financial resources and, therefore, are not reported as expenditures in governmental funds."
The details of this $5,219 difference are as follows:
Net effect of differences in accounting treatment of accrued
termination benefits $ 5,937
Net compensated absences changes (Note 7) 8,859
Disposal of capital items and capital lease equipment (10,411)
Net effect of differences in accounting treatment of long-term debt
related interest and other accruals 834
Net adjustment to increase net change in fund balances—total governmental
funds to arrive at change in net position of governmental activities $ 5.219
NOTE 3- CASH AND INVESTMENTS
Cash
Cash held at September 30, 2014 consisted of the following:
SPECIAL
GENERAL REVENUE
FUND FUND TOTAL
Demand Deposits $ 1,291,896 $ 29,577 $ 1,321,473
Petty Cash 100 0 100
$ 1.291,996 $ 29,577 $ 1,321.573
All deposits with banks are entirely insured by Federal Depository Insurance. All District depositories are
designated by the Florida State Treasurer as qualified public depositories. Chapter 280 of the Florida Statutes
"Florida Security for Public Deposits Act" provides procedures for public depositories to ensure public monies
in banks and savings and loans are collateralized with the Treasurer as agent for the public entities. Financial
institutions qualifying as public depositories shall deposit with the Treasurer eligible collateral having a market
value equal to or in excess of the average daily balance of public deposits times the depository collateral
pledging level required pursuant to Chapter 280 as computed and reported monthly or 25 percent of the
average monthly balance, whichever is greater. The Public Deposit Security Trust Fund has a procedure to
allocate and recover losses in the event of a default or insolvency. When public deposits are made in
accordance with Chapter 280, no public depositor shall be liable for any loss thereof. Chapter 280 defines
deposits as demand deposit accounts, time deposit accounts, and certificates of deposit.
-25-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 3 - CASH AND INVESTMENTS (Continued)
Cash (continued)
The District does not have a formal deposit policy that dictates deposits as a means of managing its exposure
to losses and follows the guidance stipulated by Chapter 280 of Florida Statutes.
At September 30, 2014, the District's cash carrying amounts and bank balances were$1,321,573 and
$1,412,143, respectively.
Investments
The District has no written policy and/or adopted formal investment policy and consequently adheres to the
investment guidelines as set forth in Section 218.415(17) of the Florida Statutes. All the District's investments
at September 30, 2014 are invested in the Local Government Surplus Funds Trust Fund (labeled as "Florida
PRIME"). These funds are not categorized because it is not evidenced by securities that exist in physical or
book entry form. All monies deposited in the surplus funds are collateralized as required under law.
The District invests funds throughout the year with the Local Government Surplus Funds Trust Fund, which is
administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida.
As of September 30, 2014, the investment pool closed with the total investments of approximately $7.2 billion
with the District's investment in the SBA totaling $2,540,903 which was entirely invested in Florida PRIME.
The Local Government Surplus Funds Trust Fund is governed by Ch. 19-7.001-through 19.7.017 of the Florida
Administrative Code, which identifies the Rules of the State Board of Administration. These rules provide
guidance and establish the general operating procedures for the administration of the Local Government
Surplus Funds Trust Fund. Additionally, the Office of the Auditor General performs the operational audit of the
activities and investments of the State Board of Administration.
Florida Prime is not a registrant with the Securities and Exchange Commission (SEC); however, the Board has
adopted operating procedures consistent with the requirements for a 2a-7 like fund. Consequently, such
investments are recorded at amortized costs consistent with GASB Statement#31. In accordance with
regulations of a 2a-7 like fund, the method used to determine the participants' shares sold and redeemed is the
amortized cost method as a means to maintain a constant net asset value (NAV) of$1 per share. The Florida
PRIME account fair value equals the value in the account of$2,540,903 at September 30, 2014.
At September 30, 2014, the District's investment balance was as follows:
Florida PRIME $ 2,540,903
Historical information showing the Local Government Surplus Funds Trust Fund's performance is presented in
the June 30, 2014 Comprehensive Annual Financial Report, which can be found at the State Board of
Administration's website.
- 26-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 3 - CASH AND INVESTMENTS (Continued)
Interest rate risk
The District does not have a formal investment policy that limits investment maturities as a means of managing
its exposure to fair value losses arising from increasing interest rates. The Florida PRIME weighted average
days to maturity at September 30, 2014 was 39 days.
Credit risk
Florida Statutes Section 218.415(17)authorizes certain investment instruments that the District is permitted to
invest in since the District does not have a formal investment policy. Consequently, the District has no
investment policy that would further limit its investment choices. The Florida PRIME is rated by Standard and
Poors and is its current rating is AAAm.
Concentration of credit risk
The District places no limit on the amount it may invest in any one issuer. All the District investments are in the
Florida PRIME.
NOTE 4- RECEIVABLES
Receivables at September 30, 2014 consisted of the following:
Grant receivable (Safer Grant)-general fund (Note 12) $ 318,329
Ad valorem taxes-general fund 50,990
Inspection fees -general fund 5,020
Impact fees- special revenue fund 16,726
Property appraisal fees -general fund 9,211
Tower lease 6,577
Other
5,118
Total $ 411.971
-27 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 5 - CAPITAL ASSETS, NET
Capital asset activity for the year ended September 30, 2014 was as follows:
BALANCE BALANCE
SEPT. 30, OTHER/ SEPT. 30,
2013 ADDITIONS DELETIONS 2014
Capital assets, not being depreciated:
Land $ 774,341 $ 0 $ 0 $ 774,341
Construction in progress 0 0 0 0
Total capital assets, not being
depreciated 774,341 0 0 774,341
Capital assets, being depreciated:
Buildings and improvements 12,019,857 0 0 12,019,857
Autos and trucks 4,606,738 0 (6,766) 4,599,972
Furniture, fixtures and equipment 2,102,259 27,942 0 2,130,201
Total capital assets being depreciated 18,728,854 27,942 (6,766) 18,750,030
Less accumulated depreciation for:
Buildings and improvements (7,206,114) (253,319) 0 (7,459,433)
Autos and trucks (3,723,865) (138,843) 3,120 (3,859,588)
Furniture, fixtures and equipment (1,697,882) (107,235) 0 (1,805,117)
Total accumulated depreciation (12,627,861) (499,397) 3,120 (13,124,138)
Total capital assets being
depreciated, net 6,100,993 (471,455) 0 5,625,892
Total capital assets, net $ 6,875,334 $ (471,455) $ (3,646) $ 6,400.233
The cost of assets under capital lease arrangements totaled $2,199,229 with accumulated depreciation of
$1,558,398 at September 30, 2014.
NOTE 6-ACCRUED LIABILITIES
Accrued liabilities at September 30, 2014, were comprised of the following:
Accrued wages payable $ 149,560
Payroll taxes payable 10,782
Retirement contribution payable 26,710
Other miscellaneous 147
Total Accrued Liabilities-General Fund 187,199
Insurance obligations
Accrued insurance benefits - previously retired Chief(Note 10) 23,742
Total Accrued Liabilities - Statement of Net Position $ 210.941
-28 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 7 - LEASES AND OTHER LONG-TERM DEBT
Capital Lease Obligations
The District is committed to three capital leases: (1) Station #70 Collier County lease, (2) Oshkosh Capital
firefighter truck lease, (3) CSI, Leasing, Inc. LED lighting for Stations#71, #72 and #73. Capital leases are
generally defined as leases which transfer benefits and risks of ownership to the lessees.
(1) Station#70 Collier County Lease
The District and Collier County have a lease agreement for the facility previously constructed by Collier County
to be shared by the District, the Sheriffs Department and Emergency Medical Services. Based on the lease
agreement, the lease has been recorded as a non-interest bearing capital lease in the accompanying financial
statements.
Following is a schedule of the future minimum lease payments on the facility capital lease as of September 30,
2014:
YEAR ENDED
SEPTEMBER 30,
2015 $ 16,794
2016 16,794
2017 16,794
2018 16,794
2019 16,794
2020 - 2021 25,192
$ 109.162
(2) Oshkosh Capital Firefighter Truck Lease
In January 2006, the District entered into a capital lease agreement with Oshkosh Capital for the purchase of
one firefighter truck including related equipment totaling $299,200. Following is a schedule of the present
value of the net future minimum lease payments on this lease obligation at September 30, 2014:
YEAR ENDED
SEPTEMBER 30,
2015 $ 38,185
2016 38,185
76,370
Less: Amount representing interest (5,065)
Present value of net minimum lease payments $ 71,305
- 29-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 7 - LEASES AND OTHER LONG-TERM DEBT (Continued)
Capital Lease Obligations (Continued)
(3) CSI Leasing, Inc. - LED Lighting
In October 2012, the District entered into three five-year capital lease agreements with CSI Leasing, Inc. for
the purchase of certain interior and exterior LED lighting fixtures (726 fixtures in total)for Stations#71, #72 and
#73 totaling $120,588. Following is a combined schedule of the present value of the net future minimum lease
payments on the three lease obligations at September 30, 2014:
YEAR ENDED
SEPTEMBER 30,
2015 $ 27,869
2016 27,869
2017 27,689
2018 2,322
85,929
Less: Amount representing interest (5,903)
Present value of net minimum lease payments $ 80,026
Promissory Note Obligation
In August 2003, the District entered into a promissory note with Fifth Third Bank totaling $8,000,000. Pursuant
to the loan agreement, the District was required to use the loan proceeds for the purpose of constructing two
fire station facilities (known as "Station#72" and "Station#73") located in the Golden Gate Fire District. The
loan is unsecured and interest is being charged at the sum of 90 day Libor interest rate plus 1.65%. The
District's operating funds and impact fees received each year are used as the source of debt service for such
loan.
On April 1, 2011, the District entered into a Lease Purchase Agreement with Fifth Third Bank as a means to
refinance the original $8M Promissory Note with a current outstanding principal balance of$6,357,316 the
proceeds of which were originally used to finance the construction and equipping of two fire stations#72 and
#73. Pursuant to the Agreement, the District provided the Bank a leasehold interest in the real property and
related improvements and equipment of these two specific fire stations as defined, and agreed to pay the Bank
quarterly base rent amounts (consisting of principal and interest)for the use of these leased properties as
defined in the Agreement. The interest component of the base rent is due quarterly on the 20th of each month
commencing May 20, 2011 bearing interest at the three month Libor plus 1.65% (defined as "adjusted rate")
and the principal component of the base rent totaling $83,649 is due quarterly on 20`h of each month
commenced November 20, 2013 with a final balloon payment of$5,939,071 due on February 20, 2016. The
District agreed to maintain certain required insurance policies and amounts as defined in the Agreement.
In April 2011, the District's interpretation was to initially establish and fund an "Interest Account' held by the
Bank totaling $124,680 representing the first 12 months of the respective interest component of the base rent.
These funds were solely utilized to pay interest for the first 12 months as agreed. At September 30, 2014, the
remaining cash balance in this Interest Account was $4,675 and was reflected as a restricted fund balance,
see Note 11.
- 30 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 7 - LEASES AND OTHER LONG-TERM DEBT(Continued)
Promissory Note Obligation (Continued)
Following is a schedule of future principal debt service payments (per 4/1/2011 Lease Agreement denoted
above) as of September 30, 2014 based on an overall synthetic rate of 3.81% (3.44 fixed plus Libor rate spread
of 0.374%):
YEAR ENDED
SEPTEMBER 30, PRINCIPAL INTEREST
2015 $ 334,596 $ 126,535
2016 6,022,720 61,215
$ 6.357,316 $ 187,750
Long-term liability activity for the year ended September 30, 2014 was as follows:
DUE
BALANCE BALANCE WITHIN
SEPT. 30, PAYMENTS/ SEPT.30, ONE
2013 ADDITIONS OTHER 2014 YEAR
Capital lease- Station#70 building $ 125,956 $ 0 $ (16,794) $ 109,162 $ 16,794
Capital lease @ 4.7% w/Oshkosh Capital, 104,575 0 (33,270) 71,305 34,834
principal and interest due annually,
secured and matures February 2016.
Capital lease @ 4.55%w/Leasing 2, 94,377 0 (94,377) 0 0
principal and interest due annually,
secured and matures March 2014.
Capital leases @ 4.6%w/CSI Leasing, Inc. 100,607 0 (20,581) 80,026 22,471
principal and interest due monthly,
secured and matures October 2017.
Promissory note payable, interest
and principal due quarterly at Libor
plus 1.65%, secured, source of
repayment-impact fees, matures
February 2016. 6,691,912 0 (334,596) 6.357,316 334,596
7,117,427 0 (499,618) 6,617,809 408,695
Compensated absences 433.718 22,227 (8,859) 447,086 8,859
$ 7,551,145 $ 22,227 $ (508,477) $ 7,064,895 $ 417.554
- 31 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 8- PENSION PLAN OBLIGATIONS
All paid District employees are participants in the Florida Retirement System (System), a defined benefit non-
contributory multiple-employer, cost-sharing public retirement system, which is controlled by the State
Legislature and administered by the State of Florida, Department of Administration, Division of Retirement.
The plan covers a total of approximately 1,007,000 employees of various governmental units within the State
of Florida.
The System provides for vesting of benefits after 6 years of creditable service. Normal retirement benefits are
available to employees who retire at or after age 62 with 6 or more years of service with a 5% reduction of
benefits for each year prior to the normal retirement age. Retirement benefits are based upon age, average
compensation and years-of-service credit, where average compensation is computed as the average of an
individual's defined highest fiscal years' earnings ( i.e., either five or eight years) depending on enrollment
date.
Participating employer contributions are based upon State-wide rates established by the State of Florida.
These rates effective July 1, 2014 are applied to employee salaries as follows: regular employees— 7.37% and
special risk employees— 19.82% of which the employee contribution rate of 3% is included in these rates.
The funding policy provides for monthly employer contributions at actuarially determined rates that are
determined using the entry age actuarial cost method.
The District's contribution to the plan for the year ended September 30, 2014 was $764,179 and was paid by
the due date for the contribution. This represents approximately 18% of the District's 2014 covered payroll of
$4,236,138. The total payroll for fiscal 2013 was$4,283,753. In addition, the District's contribution to the plan
for fiscal 2013 was $642,283.
The pension benefit obligation for the System as a whole, determined through an actuarial valuation was
$138.6 billion at July 1, 2014, the date of the most recent actuarial report. The report also indicates that the
System had total actuarial accrued liability of approximately$160.1 billion at that date resulting in an
underfunded pension obligation of$21.5 billion. The pension benefit obligation is a standardized disclosure
measure of the present value of plan benefits, adjusted for the effects of projected salary increases and step-
rate benefits estimated to be payable in the future as a result of employee service to date. A variety of
significant actuarial assumptions are used to determine the standardized measure of the pension benefit
obligation and these assumptions are summarized below:
a) a rate of return on the investment of present and future assets of 7.65% per year compounded
annually;
b) projected salary increases of 3.25% per year compounded annually, attributable to inflation of 3%; and
c) cost-of-living adjustments of 2.60% or as defined in the Plan based on certain timeframes,
- 32 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 8- PENSION PLAN OBLIGATIONS (Continued)
The measure is intended to help users assess the System's funding status on a going concern basis, assess
progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among
retirement systems and among employers. The System does not make separate measurements of assets and
pension benefit obligations for individual employers. Significant assumptions used to compute pension
contribution requirements are the same as those used to determine the standardized measure of the pension
obligation.
Ten year historical trend information showing the System's progress in accumulating sufficient assets to pay
benefits when due is presented in the System's June 30, 2014 Comprehensive Annual Financial Report.
NOTE 9- LEASE AND CONSTRUCTION AGREEMENTS
In June 1999, the District entered into a lease and construction agreement with Sprint Spectrum, L.P. (SSLP)
for an initial five-year term. The District agreed to allow SSLP to construct a certain communications tower on
a portion of the District's property. Upon completion of the construction of the tower, SSLP agreed to transfer
title to the tower and all related rights to the District. Upon title transfer, SSLP would lease such tower space to
maintain and operate at SSLP's sole expense a personal communication service system facility. In
consideration of this arrangement, the District agreed to charge an annual rent of$10,800. Such annual rent
was waived for the initial term and for four additional terms of five years each since SSLP paid for all
construction costs associated with construction of the tower.
In August 2000, the District entered into a lease agreement with Omnipoint Holdings, Inc., presently T-Mobile
USA, Inc. ("T-Mobile"), for an initial five-year period. The District agreed to lease tower antenna space located
at the Golden Gate Fire Station to T-Mobile. As consideration for this arrangement, T-Mobile agreed to pay the
District annual rent of$22,800 plus applicable sales tax. This lease agreement has a renewable clause for
four additional terms of five-years each with certain defined annual rent adjustments. The lease was renewed
for an additional term with a 20% increase during fiscal year 2005, resulting in an annual rental payment of
$27,360. This lease was renewed for a second additional term in fiscal year 2010. The rent was increased by
20%, resulting in an annual rental payment of$32,832 received by the District in August 2014.
In August 2000, the District entered into a lease and construction agreement with Verizon Wireless("Verizon")
for an initial five-year term. The District agreed to lease to Verizon certain tower antenna space located at the
Golden Gate Fire Station. Pursuant to the agreement, Verizon agreed to pay to the District annual rent during
the initial five-year term of$16,800 plus applicable sales tax. As consideration separate from and in addition to
the mentioned annual rent, Verizon agreed to pay for the installation of VHF cabling in Station #71 costing
$50,000, in lieu of installing a certain shelter, generator and antennas as defined in the original agreement. At
September 30, 2001, such installation had been completed. This lease agreement has a renewable clause for
four additional terms of five-years each with certain defined annual rent adjustments. The lease was renewed
for an additional term with a 20% increase during fiscal year 2005, resulting in an annual rental payment of
$20,160. This lease was renewed for a second additional term in fiscal year 2010. The rent was increased by
20%, resulting in an annual rental payment of$24,192 received by the District in July 2014.
- 33-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 9- LEASE AND CONSTRUCTION AGREEMENTS (Continued)
In August 2005, the District entered into a communications site lease agreement related to the communications
tower located at Golden Gate Fire Station #71 with Alltel Communications, presently known as Verizon, for an
initial five-year term. The lessee is granted five additional five-year renewal terms following the initial five-year
term. Pursuant to the agreement, Alltel agreed to pay the District monthly rent totaling $2,500 plus applicable
sales tax. The rent will be increased each year thereafter by four percent. A first amendment to the lease
agreement was entered into on December 11, 2008, in order to reduce the tenants rent. This amendment
commences on January 1, 2009, and expires on December 31, 2013. On January 1, 2009, the rent was
decreased to $2,200 per month. The rent shall be increased by 2% every anniversary thereafter. Alltel,
presently known as Verizon, will pay all utility charges applicable to the tower. In April 2011, the monthly rent
was increased an additional $556 per month due to improvements made to their antenna holdings on the
communication tower. The prior year monthly rent of$2,960 was increased by 2% to$3,019 in January 2014.
In September 2005, the District entered into a communications site lease agreement related to the
communications tower located at Golden Gate Fire Station#71 with Metro PCS, presently known as T-Mobile,
for an initial five-year term. The lessee is granted five additional five-year renewal terms following the initial
five year term. Pursuant to the agreement, Metro PCS, presently known as T-Mobile, agreed to pay the
District monthly rent totaling $2,500 plus applicable sales tax. The rent will be increased each year thereafter
by four percent. Metro PCS, presently known as T-Mobile, pays all utility charges applicable to the tower. The
prior year monthly rent was increased by 4% to $3,558 in September 2014.
NOTE 10 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS
The Governmental Accounting Standards Board has issued Statement No. 45, 'Accounting and Financial
Reporting by Employers for Post-Employment Benefits Other Than Pensions." This Statement changes the
manner in which the District funds and records its post retirement benefit cost other than pension ("OPEB").
During 2010, the District implemented the standard and accrued and fund costs rather than fund them on a
pay-as-you-go basis. The District had less than 100 employees at September 30, 2010 and met the criteria for
the simplified "Alternative Measurement Method", which excuses the District from obtaining an actuarial
valuation for the post-employment benefit liability and allowed the District to perform a simple present value
calculation. The following significant assumptions and methods were used in updating the 2014 present value
calculation of the post-employment benefit liability under the"Alternative Measurement Method'for one
previously retired Chief:
a) One receiving benefits for approximately 21 years;
b) Cost of benefits are approximately$488 per month for the second recipient;
c) Long-term growth rate estimated to equal long-term inflation estimate of approximately 2%;
d) Estimated discount rate of 2% which is the yield on a 10-year Treasury security at September 30, 2014;
e) Discounted on a monthly basis.
f) Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB
valuation.
At September 30, 2014, total accrued insurance benefits- previously retired chief was $23,742, see Note 6.
- 34-
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 11 - FUND BALANCE DISCLOSURE
In accordance with GASB No. 54, the District classifies governmental fund balances (as applicable) as follows:
• Non-spendable - includes fund balance amounts that cannot be spent either because they are not in
spendable form or because of legal or contractual requirements (i.e., prepaid items)
• Restricted - includes fund balance amounts that are constrained for specific purposes which are
externally imposed by providers, such as creditors, lenders or amounts constrained due to
constitutional provisions or enabling legislation.
• Committed- includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the District through a formal action of the highest level of decision making
authority.
• Assigned - includes fund balance amounts that are intended to be used for specific purposes that are
neither considered restricted or committed. Fund balance may be assigned through the following: (1)
the District's Chief is authorized by the Commissioners to assign amounts for specific purpose as
denoted in the annual budget; (2)the Commissioners have authorized the District's Chief, in
coordination with the District's auditors, to recapture excess fund balance that is not restricted or
committed.
• Unassigned - includes residual positive fund balance within the General Fund which has not been
classified within the other above mentioned classifications. Unassigned fund balance may include
negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or
assigned for those specific purposes.
The District uses restricted amounts to be spent first when both restricted and unrestricted fund balance is
available unless there are legal documents and/or contracts that prohibit doing this, such as grant agreements
requiring certain dollars spent. Additionally, the District would first use committed, then assigned, and lastly
unassigned amounts of unrestricted fund balance when expenditures are made, with the exception of the
emergency reserve established by the Commissioners. Under normal circumstances, the District would first
elect to utilize the Operating Reserve (Unassigned fund balance in the General Fund) before considering use
of its Emergency Reserve.
The District does not have a formal minimum fund balance policy. However, the District addresses various
targeted reserve balances via the annual budget process and calculates targets and actuals to report the
results to the Commissioners annually.
- 35 -
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
NOTE 11 - FUND BALANCE DISCLOSURE (Continued)
A schedule of the District's fund balances at September 30, 2014 is as follows:
MAJOR FUNDS
GENERAL SPECIAL TOTAL
FUND REVENUES FUNDS
Non-spendable $ 120,934 $ 0 $ 120,934
Restricted 4,675 132,545 137,220
Committed 0 0 0
Assigned 3,368,849 0 3,368,849
Unassigned 517,995 0 517,995
Total $ 4.012,453 $ 132.545 $ 4,144,998
NOTE 12 -SAFER GRANT
In September 2012, the District was awarded the Staffing for Adequate Fire and Emergency Response
("SAFER") cost reimbursement grant totaling $1,417,935 with U.S Department of Homeland Security. The
purpose of the SAFER grant was to provide funding directly to fire departments in order to help them increase
the number of trained "front-line " firefighters or to rehire firefighters that have been laid-off. The SAFER grant
performance period is from September 29, 2012 through September 28, 2014. The District is required to
comply with the provisions of OMB Circular A-133, Audits of States, Local Governments, and Nonprofit
Organizations and other certain defined financial rules and regulations. This SAFER grant is on a cost
reimbursement basis and requires the District to submit quarterly forms with supporting documentation for
reimbursement. In conjunction with the SAFER grant agreement, the District agreed to certain reporting and
compliance requirements and related monitoring benchmarks. As of September 30, 2014 and for the year then
ended, the District has complied with these specific requirements. In 2014, the District reported total SAFER
grant income of$730,173 of which $318,329 was included in receivables at September 30, 2014(Note 4).
This receivable was paid by November 13, 2014.
NOTE 13 -INTERLOCAL AGREEMENT
On April 23, 2013, the District entered into an interlocal agreement with East Naples Fire Control and Rescue
District ("ENFD") to consolidate defined services provided by each of the respective independent districts in
anticipation of a proposed joint merger of the Districts. As stipulated in the agreement, the ENFD's Fire Chief
would be appointed as Fire Chief of both Districts and the Fire Chief of Golden Gate Fire Control and Rescue
District would be appointed as Assistant Fire Chief and second in command of both Districts. Under their
supervision, they would assemble a management team from existing personnel of the District and ENFD. The
management team is responsible for providing certain consolidated administrative and operational services.
Also, the agreement requires separate governance, accounting and employees of both Districts.
NOTE 14 - SUBSEQUENT EVENT
On November 4, 2014, the voters approved the merger of Golden Gate Fire District and East Naples Fire
District into one special fire district to be known as Greater Naples Fire Rescue District.
- 36 -
PART II. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
SPECIAL REVENUE FUND
VARIANCE
WITH FINAL
BUDGET
BUDGETED AMOUNTS ACTUAL POSITIVE
ORIGINAL FINAL AMOUNT (NEGATIVE)
$ 0 $ 0 $ 0 $ 0
0 0 0 0
100,000 213,726 205,451 (8,275)
0 0 43 43
50,000 54,612 0 (54,612)
150,000 268,338 205,494 (62,844)
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
25,624 143,962 25,624 118,338
124,376 124,376 120,328 4,048
150,000 268,338 145,952 122,386
$____ 0 $ 0 59,542 $ 59,542
$ 73,003
$ 132,545
The accompanying notes are an integral part of these financial statements.
- 37-
PART III. OTHER REPORTS SECTION
Phillips Harvey
GROUP
Nathan A.Phillips,CPA
INDEPENDENT AUDITORS' REPORT ON INTERNAL Deborah L.Harvey,CPA
CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED Stephanie J.Feldman,CPA
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Shannon Huber,CPA
Clara V.Lopez,CPA
Michelle L.Vastola,CPA
February 24, 2015
To the Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
Naples, Florida
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 and
each major fund of GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT, as of and for the year ended
September 30, 2014, and the related notes to the financial statements, which collectively comprise GOLDEN
GATE FIRE CONTROL AND RESCUE DISTRICT's basic financial statements, and have issued our report
thereon dated February 24, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered GOLDEN GATE FIRE
CONTROL AND RESCUE DISTRICT's internal control over financial reporting (internal control)to determine
the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinions
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's internal control. Accordingly, we do not express
an opinion on the effectiveness of the District'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 District's financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or,
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
- 38 - Certified Public Accountants
801 Laurel Oak Drive,Suite 303,Naples, FL 34108
P 239 566 1 600 1 F 239 566 1901 I swflcpas.com
To the Board of Commissioners
• GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
February 24, 2015
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District'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
determination of financial statement amounts. 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.
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 District's internal control or on
compliance. The report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the District's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
- I S ft* Iditrig, PjfA. .
Certified Public Accountants
Naples, Florida
- 39-
Philli s Harve
p y
GROUP
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE Nathan A.Phillips,CPA
WITH SECTION 218.415, FLORIDA STATUTES Deborah L.Harvey,CPA
Stephanie J.Feldman,CPA
February 24, 2015 Shannon Huber,CPA
Clara V.Lopez,CPA
Michelle L.Vastola,CPA
To the Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
Naples, Florida
We have examined GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT'S compliance with Section
218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2014.
Management is responsible for GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's compliance with
those requirements. Our responsibility is to express an opinion on GOLDEN GATE FIRE CONTROL AND
RESCUE DISTRICT's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute
of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe that our
examination provides a reasonable basis for our opinion. Our examination does not provide a legal
determination on GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's compliance with specified
requirements.
In our opinion, GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT complied, in all material respects,
with the aforementioned requirements for the year ended September 30, 3014.
This report is intended solely for the information and use of the GOLDEN GATE FIRE CONTROL AND
RESCUE DISTRICT and the Auditor General, State of Florida, and is not intended to be and should not be
used by anyone other than these specified parties.
PHILL• S ARV GRO P A
P!
Certified Public Accountants
Naples, Florida
-40- Certified Public Accountants
801 Laurel Oak Drive,Suite 303,Naples,FL 34108
P 239 566 1600 I F 239 566 1901 I swflcpas.com
Phillips Harvey
GROUP
Nathan A.Phillips,CPA
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE Deborah L.Harvey,CPA
FOR EACH MAJOR FEDERAL PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY OMB CIRCULAR A-133 Stephanie J.Feldman,CPA
Shannon Huber,CPA
Clara V.Lopez,CPA
Michelle L.Vastola,CPA
February 24, 2015
To the Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
Naples, Florida
Report on Compliance for Each Major Federal Program
We have audited GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's compliance with the types of
compliance requirements described in the OMB CircularA-133 Compliance Supplement that could have a
direct and material effect on each of the GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT's major
federal programs for the year ended September 30, 2014. The GOLDEN GATE FIRE CONTROL AND
RESCUE DISTRICT's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of GOLDEN GATE FIRE CONTROL AND
RESCUE DISTRICT's major federal programs based on our audit of the types of compliance requirements
referred to above. 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 OMB Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with
the types of compliance requirements referred to above that could have a direct and material effect on a major
federal program occurred. An audit includes examining, on a test basis, evidence about the GOLDEN GATE
FIRE CONTROL AND RESCUE DISTRICT's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the GOLDEN GATE FIRE CONTROL
AND RESCUE DISTRICT's compliance.
-41 - Certified Public Accountants
801 Laurel Oak Drive,Suite 303,Naples,FL 34108
P 239 566 1600 I F 239 566 1901 I swflcpas.com
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
February 24, 2015
Opinion on Each Major Federal Program
In our opinion, GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT 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 September 30, 2014.
Report on Internal Control over Compliance
Management of the GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT is responsible for establishing
and maintaining effective internal control over compliance with the types of compliance requirements referred
to above. In planning and performing our audit of compliance, we considered the GOLDEN GATE FIRE
CONTROL AND RESCUE DISTRICT's internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing procedures
that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each
major federal program and to test and report on internal control over compliance in accordance with OMB
Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the GOLDEN GATE FIRE
CONTROL AND RESCUE DISTRICT's 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
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 as combination of deficiencies, in internal control over compliance with the 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 first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses, or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
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 results of that testing based on the requirements of OMB A-133 Circular.
Accordingly, this report is not suitable for any other purpose.
IL S elle&hetiPP.A:
Certified Public Accountants
Naples, Florida
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GOLDEN GATE FIRE AND RESCUE CONTROL
SCHEDULE OF FINDINGS AND QUESTIONED COSTS -
FEDERAL AWARDS
FISCAL YEAR ENDED SEPTEMBER 30, 2014
A. SUMMARY OF AUDITOR'S RESULTS
1. The auditor's report expresses an unmodified opinion on the GOLDEN GATE FIRE AND RESCUE
CONTROL's financial statements.
2. No instances of significant deficiencies and/or material weaknesses in internal control were identified
during the audit.
3. No instances of noncompliance material to the financial statements of the GOLDEN GATE FIRE AND
RESCUE CONTROL which would be required to be reported in accordance with Government Auditing
Standards were disclosed during the audit.
4. No instances of significant deficiencies and/or material weaknesses in internal control over the
District's major federal award program were identified during the audit.
5. The auditor's report on compliance for the major federal award program for the GOLDEN GATE FIRE
AND RESCUE CONTROL expresses an unmodified opinion on its one major federal award program.
6. Our audit disclosed no findings required to be reported in accordance with Section 510(a)of OMB-
Circular A-133.
7. The District's one federal award program tested as a major program is as follows:
CFDA
NUMBER NAME OF FEDERAL AWARDS YEAR
97.044 Assistance to Fire Fighters 2014
8. The threshold for distinguishing between Type A and Type B programs was $300,000.
9. GOLDEN GATE FIRE AND RESCUE CONTROL was not determined to be a low-risk auditee.
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•
GOLDEN GATE FIRE AND RESCUE CONTROL
SCHEDULE OF FINDINGS AND QUESTIONED COSTS -
FEDERAL AWARDS
FISCAL YEAR ENDED SEPTEMBER 30, 2014
B. FINDINGS- FINANCIAL STATEMENTS
Findings
There were no financial statement findings during the year.
C. FINDINGS AND QUESTIONED COSTS-
MAJOR FEDERAL AWARD PROGRAM
Findings
There were no audit findings related to the District's one federal award program to be reported by
Section 510(A)of OMB Circular A-133.
D. STATUS OF PRIOR YEAR'S AUDIT FINDINGS
All prior year's audit findings have been implemented and corrected in the current year.
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GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FISCAL YEAR ENDED SEPTEMBER 30, 2014
PASS THROUGH
ENTITY
FEDERAL GRANTOR/PASS-THROUGH FEDERAL CFDA IDENTIFYING FEDERAL
GRANTOR/PROGRAM OR CLUSTER TITLE NUMBER NUMBER EXPENDITURES
U.S. Department of Homeland Security
Direct Programs
Staffing for Adequate Fire &
Emergency Response(SAFER) 97.044 None $ 730.173
Total Department of Homeland Security 730.173
Total Expenditures of Federal Awards $ 730,173
NOTE A- BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards has been prepared on an accrual basis of accounting in
conformity with accounting principles generally accepted in the United States of America and is in accordance
with the OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations.
Expenditures reported on the Schedule of Expenditures of Federal Awards include cash disbursements and
expenses during the fiscal year as well as grant related amounts recorded as payable at year end.
Expenditures are recognized following cost principles contained in OMB Circular A-122, Cost Principles for
Non-Profit Organizations, where in certain types of expenditures are not allowable or are limited as to
reimbursement. Revenues reported on the Schedule of Expenditures of Federal Awards include cash receipts
and revenues as well as grant receivables recorded at year end.
NOTE B - INDIRECT COSTS
The District does routinely allocate costs to Federal Awards. Costs charged to such programs were direct
costs unless specifically incurred for the program and allowed and indicated as such. Indirect costs are
allocated to the functions and programs based upon various methods which reflect appropriate cost, usage
and/or benefit by the function and program.
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Phillips Harvey
GROUP
Nathan A.Phillips,CPA
MANAGEMENT LETTER - LOCAL GOVERNMENT ENTITIES Deborah L.Harvey,CPA
Stephanie J.Feldman,CPA
February 24, 2015 Shannon Huber,CPA
Clara V.Lopez,CPA
Michelle L.Vastola,CPA
To the Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
Naples, Florida
Board of Commissioners:
Report on the Financial Statements
We have audited the financial statements of the governmental activities and each major fund of GOLDEN
GATE FIRE CONTROL AND RESCUE DISTRICT as of and for the fiscal year ended September 30, 2014 and
have issued our report thereon dated February 24, 2015.
Auditor's Responsibility
We conducted our audit 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 Chapter 10.550, Rules of the Florida Auditor General.
Other Reports and Schedule
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in accordance
Government Auditing Standards, and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in
those reports and schedule, which are dated February 24, 2015, should be considered in conjunction with this
management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. There were no findings and/or recommendations reported in the preceding annual financial audit
report.
-46- Certified Public Accountants
801 Laurel Oak Drive,Suite 303,Naples, FL 34108
P 239 566 1600 I F 239 566 1901 I swflcpas.com
T�the Board of Commissioners
GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
February 24, 2015
Page 2
Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be included as to whether or not
the local governmental entity has met one or more of the conditions described in the Section 218.503(1),
Florida Statutes, and identification of the specific condition met. In connection with our audit, we determined
that GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT did not meet any of the conditions described
in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the GOLDEN GATE FIRE
CONTROL AND RESCUE DISTRICT'S financial condition, and our financial condition assessment was based
in part on representations made by management and the review of financial information provided by same.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our determination
as to whether the annual financial report for the GOLDEN GATE FIRE CONTROL AND RESCUE DISTRICT
for the fiscal year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant
to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal
year ended September 30, 2014. In connection with our audit, we determined that these two reports were in
agreement.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any
recommendations to improve financial management. In connection with our audit, we did not have any such
recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions
of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an
effect on the financial statements that is less than material but which warrants the attention of those charged
with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal
and other granting agencies, and applicable management, and is not intended to be and should not be used by
anyone other than these specified parties.
PHIL PS H!AR cc GR
, P.A.
Certified Public ountants
Naples, Florida
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