Big Corkscrew FCRD required Audit Year End 12/2014 r j
BIG CORKSCREW ISLAND FIRE CONTROL
AND RESCUE DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH REPORTS OF
INDEPENDENT AUDITOR
YEAR ENDED DECEMBER 31, 2014
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TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT 1-2
MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-vi
l.a,,, BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:
Statement of Net Position 3
Statement of Activities 4
FUND FINANCIAL STATEMENTS:
Governmental Funds:
Balance Sheet 5
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 6
Statement of Revenues,Expenditures and Changes
in Fund Balance 7
Reconciliation of the Statement of Revenues,Expenditures and Changes
in Fund Balance of Governmental Funds to the Statement of Activities 8
NOTES TO THE FINANCIAL STATEMENTS 9-25
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds)
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
U General Fund 26-27
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund 28
ADDITIONAL REPORTS OF INDEPENDENT AUDITOR
Independent Auditor's Report on Internal Control
over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Basic Financial
Statements Performed in Accordance with Government Auditing Standards 29-30
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Management Letter
t"_ Independent Auditor's Compliance Report 34
Management's Response to Independent Auditor's Report to Management Exhibit
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PERRINO&ASSOCIATES,CPAS,PA
Suite 160 Suite 300
4100 Corporate Square 214 South Sixth
Naples, Florida 34104 Springfield, Illinois 62701
Telephone: (239)434-8299 Telephone:(217)523-4123
Fax: (239)434-7240 Fax: (217)523-5939
perrinoandassociates @earthlink.net www.perrino.com
INDEPENDENT AUDITORS'REPORT
Board of Fire Commissioners
Big Corkscrew Island Fire Control and Rescue District
13240 Immokalee Road
Naples,FL 34120
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities for the Big
Corkscrew Island Fire Control and Rescue District(the "District") as of and for the three months ended
December 31, 2014, and the 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.
I 3 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 of America. 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
entity'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 entity'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.
MEMBER AMERICAN INSTITUTE OF CPA'S•DIVISION FOR CPA FIRMS•ILLINOIS CPA SOCIETY•FLORIDA INSTITUTE OF CPA'S
Board of Commissioners
Big Corkscrew Island Fire Control and Rescue District
Page 2
Summary of Opinions
Governmental Activities-Qualified
General Fund—Unmodified
Impact Fee Fund- Unmodified
Basis of Qualified Opinion on Governmental Activities
Management had not yet implemented GASB Statement No. 68 "Accounting and Financial Reporting
for Pensions — An Amendment to GASB No. 27". Accounting principles generally accepted in the
United States of America required that this Statement be implemented by entities to which the
Statement was applicable within the entities' financial statements for fiscal years beginning after June
15, 2014. The implementation of this Statement would increase the assets or liabilities and deferred
inflows or outflows in the Governmental Activities. The amount by which this departure would affect
the assets or liabilities and deferred inflows or outflows in the Governmental Activities had not been
determined.
Qualified Opinion on Governmental Activities
In our opinion, except for the effects of the matter described in the "Basis for Qualified Opinion on
Governmental Activities", the financial statements referred to above present fairly, in all material
respects, the financial position of the Big Corkscrew Island Fire Control and Rescue District as of
December 31, 2014, and changes in the financial position thereof for the period then ended in
accordance with accounting principles general accepted in the United States of America.
Unmodified Opinions
In our opinion, based on our audit the financial statements referred to above present fairly, in all
material respects, the respective financial position of the general fund and impact fee fund of the Big
Corkscrew Island Fire Control and Rescue District as of December 31, 2014, and the respective
changes in financial position, for the three months then ended in accordance with accounting principles
generally accepted in the United States of America.
Matters of Emphasis
On January 1, 2015, Big Corkscrew Island Fire Control and Rescue District merged into the newly
created North Collier Fire Control and Rescue District. The financial statements referred to above
reflect only the assets, liabilities, fund balance/net position, revenue and expenditures/expenses of Big
Corkscrew Island Fire Control and Rescue District for the three months ended December 31, 2014.
Additional information regarding the merger is presented in the accompanying note to the financial
t. statements under the heading Subsequent Events.
Other Matters—Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis (MD&A) 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.
Board of Commissioners
Big Corkscrew Island Fire Control and Rescue District
Page 3
Other Matters—Required Supplementary Information(Continued)
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 of provide assurance.
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Big Corkscrew Island Fire Control and Rescue District's basic financial
statements. The required supplementary information other than MD&A consists of budgetary
comparison information and is presented for purposes of additional analysis and is not a required part of
the basic financial statements. This 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. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, this required
supplementary information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 27,
2015, on our consideration of the 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
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 the District's internal
control over financial reporting and compliance.
Other Reporting Required by Section 218.415,Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have issued a report dated August 27, 2015,
on our consideration of Big Corkscrew Island Fire Control and Rescue District's compliance with the
provisions of this section. The purpose of the report is to describe the scope of our testing of
compliance and the results of that testing, and to provide an opinion on compliance. That report is an
integral part of an audit performed in accordance with Sections 218.39 and 218.415,Florida Statutes.
PERRINO&ASSOCIATES,CPAS,PA
Naples, Florida
August 27,2015
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3 MANAGEMENT'S DISCUSSION
AND ANALYSIS(MD&A)
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Management's Discussion and Analysis of Financial Statements
`- For The Three Months Ended December 31,2014
The Discussion and Analysis of the Big Corkscrew Island Fire Control and Rescue District's ("the
District") basic financial statements is provided to assist the reader in understanding the District's
financial activities and significant changes in ending financial position for the three months ended
December 31,2014
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Contained within are the basic financial statements, consisting of the government-wide financial
statements, governmental fund financial statements and notes to the financial statements. The
Discussion and Analysis will also provide an analytical overview of these statements, including
comparisons of the District's financial position at September 30, 2014, September 30, 2013, and
December 31,2014.
District Highlights
1. The District's assets exceeded its liabilities at September 30, 2014 resulting in a net position
of $5,698,316 as compared to a net position of $5,698,316 at September 30, 2014. The
District's net position at December 31,2014 was$7,413,098.
1 The District's net position decreased by $453,294 during fiscal year 2014 as compared to a
decrease of $310,172 during the fiscal year 2013. The District's net position increased
$1,714,782 during the three months ended December 31,2014.
3. The District had $1,921,982 of unrestricted net assets at September 30, 2014 that could be
used to meet the District's ongoing obligations, as compared to $2,529,962 at September 30,
2013. This is a decrease of$607,980. The District had unrestricted net assets of$3,533,443
a at December 31, 2014 which represented an increase of $1,611,461 (84%) over the three
months ended.
4. The District's total revenue on the government-wide basis increased $34,393 during fiscal
year 2014 as compared to an increase of$72,602 during fiscal year 2013. The District's total
revenue on the government-wide basis was $2,959,313 during the three months ended
Li December 31, 2014. During this three month period, the District had recorded 80% of the
total revenue that was recorded for the entire fiscal year ended September 30, 2014.
5. The District's total expenses on the government-wide basis increased $177,515 during fiscal
year 2014 as compared to an increase of$484,473 during fiscal year 2013. The District's
total expenses on the government-wide basis were $1,244,531 during the three months ended
December 31, 2014. During the three month period, the District had recorded 30% of the
total expenses that was recorded for the entire fiscal year ended September 30,2014.
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Government-wide Financial Statements
Government-wide financial statements are intended to allow a reader to assess a government's
Li operational accountability. Operational accountability is defined as the extent to which the
government has met its operating objectives efficiently and effectively, using all resources available
Q for that purpose, and whether it can continue to meet its objectives for the foreseeable future.
Government-wide financial statements concentrate on the District as a whole and do not emphasize
fund types.
Li The Statement of Net Position presents information on all the District's assets and liabilities,with the
difference between the two reported as net position. The District's capital assets are included in this
statement and reported net of accumulated depreciation.
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The Statement of Activities presents revenue and expense information showing how the District's net
assets changed during the fiscal year Both statements are measured and reported using the economic
resource measurement focus (revenues and expenses) and the accrual basis of accounting (revenue
recognized when earned and expense recognized when incurred).
Governmental Fund Financial Statements
The accounts of the District are organized on the basis of governmental funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self-balancing accounts that consist of assets, liabilities, fund equity, revenues, and
expenditures. Government resources are allocated to and accounted for in individual funds based
0 upon the purpose for which they are to be spent and the means by which spending activities are
controlled.
Governmental fund financial statements are prepared on the modified accrual basis of accounting
using the current financial resources measurement focus. Under this basis of accounting, revenues
are recognized when they become measurable and available as current net assets.
Notes to the Financial Statements
The notes to the financial statements explain in detail some of the data contained in the preceding
statements. The notes are essential to a full understanding of the data provided in the government-
0 wide and fund financial statements.
Government-wide Financial Analysis
, The government-wide financial statements are designed so that the reader can determine if the
District's financial condition is better or worse than the prior year.
The following is a condensed summary Statement of Net Position for the District at December 31,
2014, September 30,2014 and September 30,2013:
Summary Statement of Net Position
riDecember 31,2014, September 30,2014 and September 30,2013
12/31/2014 9/30/2014 9/30/2013
Assets:
Current and Other Assets $ 5,245,315 $3,516,805.00 $3,593,259.00
0 Capital Assets 3,604,314 3,577,395 3,793,922
Total Assets 8,849,629 7,094,200 7,387,181
1 Liabilities:
Current Liabilities 178,968 179,559 173,345
Noncurrent Liabilities 1,257,563 1,216,325 1,062,226
Total Liabilities 1,436,531 1,395,884 1,235,571
Net Position:
Net Investment in Capital Assets 3,144,314 3,059,895 3,218,922
Restricted 735,341 716,439 402,726
Unrestricted 3,533,443 1,921,982 2,529,962
Total Net Position $ 7,413,098 $ 5,698,316 $ 6,151,610
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Current and Other Assets represent 59% of the District's total assets at December 31, 2014 as
compared to 49.6% at September 30, 2014 and 48.6% at September 30, 2011 Current assets at
,,, December 31, 2014 consisted of unrestricted cash in the amount of$4,366,074, restricted cash in the
amount of$728,282, receivables in the amount of$109,592, and prepaid expenses in the amount of
Q $5,245,315. The unrestricted cash represents amounts that are available for spending at the discretion
of the Board of Fire Commissioners of the District. The restricted cash represents amounts that are
restricted for the purchase of capital assets associated to growth within the District boundaries.
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Li Capital assets represents 41% of the District's total assets at December 31, 2014 as compared to
50.4%at September 30,2014 and 51.2%at September 30,2013.
The following is a condensed summary of Revenue, Expenses, and Changes in Net Position for the
-' three months ended December 31,2014 and fiscal years ended September 30,2014 and 2013:
Summary of Revenues,Expenses and Changes in Net Position For the Three Months Ended
December 31,2014 and Fiscal Years Ended September 30,2014 and 2013
Revenues: 12/31/2014 9/30/2014 9/30/2013
General Revenues
Ad Valorem Taxes $ 2,847,614 $ 3,180,464 $ 3,033,517
Impact Fees 98,762 404,142 218,909
Interest Income 358 1,307 3,735
Gain on Sale of Assets - 800 -
Other Revenues 4,546 70,537 42,419
Program Revenues 8,033 30,856 355,133
Total Revenues 2,959,313 3,688,106 3,653,713
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Expenses:
Public Safety - Fire Protection 1,244,531 4,141,400 3,963,885
Change in Net Position 1,714,782 (453,294) (310,172)
[.] Net Position - Beginning of the Year 5,698,316 6,151,610 6,461,782
Net Position - End of the Year $ 7,4137098 $ 5,698,316 $ 6,151,610
Fund Balance—Governmental Fund Financial Statements
The District utilizes only Governmental Funds, which include a General Fund and an Impact Fee
Fund.
The focus of the District's Governmental Funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. This information is useful in assessing the District's
[I financing requirements. The unassigned fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
[I The General Fund is the operating fund for the District. The total fund balance of the General Fund
was $4,388,507 at December 31, 2014 as compared to $2,678,308 at September 30, 2014 and
$3,076,128 at September 30, 2013. $2,583,038 of the General Fund balance has been assigned by the
U. Board of Commissioners to cover specific needs of the District in future years. The following is a
schedule of the assigned fund balance at December 31, 2014, September 30, 2014, and September 30,
2013:
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The following is a schedule of the assigned fund balance at December 31, 2014, September 30, 3014
and September 30, 2013.
Assigned Fund Balance
December 31,2014
Assigned Fund Balance 12/31/2014 9/30/2014 9/30/2013
Li General Fund- Fiscal Year Startup $ 700,000 $ 750,000 $750,000
General Fund- Fleet Reserves 150,000 100,000 100,000
General Fund- Facility Reserves 655,000 45,000 45,000
General Fund- GASB Reserves 259,102 230,000 230,000
Total Assigned Fund Balance $1,764,102 $1,125,000 1,125,000
[1] The Impact Fee Fund is a restricted fund for the District. The total fund balance of the Impact Fee
Fund was $735,341 at December 31, 2014, as compared to $716,439 at September 30, 2014 and
$402,726 at September 30, 2013. Impact Fee Fund cash and cash equivalents was $728,282 at
December 31, 2014 as compared to $669,927 at September 30, 2014 and $311,553 at September 30,
2013. Impact Fee funds are restricted for the acquisition, construction, or purchase of assets required
to provide fire protection and emergency services and any related debt service.
General Fund Budgetary Highlights
Budget versus actual comparisons are reported as required supplementary information other than
management's discussion and analysis. The final budgeted General Fund revenues were $6,423,159
for the fiscal year ending September 30, 2015 as compared to $6,391,154 for September 30, 2014.
The final budgeted Impact Fee Fund revenues were$907,225 for the fiscal year ending September 30,
2015 as compared to $465,275 for September 30, 2014. The original budgets can be amended
throughout the fiscal year by approval of the Board of Commissioners to reflect changes in financial
information that the District becomes aware of.
During the three months ended, December 31, 2014, the District Board approved a budget
amendment that reduced the fiscal year fund balance carryover for both the General and Impact Fee
Funds and a corresponding reduction in Reserve expenses.
Capital Assets
The District's investment in capital assets, net of accumulated depreciation and related debt was
$3,144,314 at December 31, 2014 as compared to $3,059,895 at September 30, 2014 and $3,218,922
at September 30, 2013. The investment in capital assets includes land, buildings and improvements,
equipment, vehicles, and construction in progress. The District's investment in capital assets
increased by $84,419 during the three months ended December 3I, 2014 as a result of capital asset
acquisitions made during the period. The following is a schedule of Capital Assets at December 31,
2014 and September 30, 2014 and 2013:
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The following is a schedule of the District's capital assets at September 30, 2014 and September 30,
2013.
Capital Assets
September 30
12/31/2014 9/30/2014 9/30/2013
1] Capital Assets
Land $ 765,081 $ 765,081 $ 765,081
Construction in Progress 1,009,289 1,007,790 1,002,437
rjTotal Capital Assets not Depreciated 1,774,370 1,772,871 1,767,518
Buildings and Improvements 1,721,095 1,721,095 1,721,095
Equipment and Furniture 653,715 615,403 605,453
Vehicles 1,445,763 1,398,697 1,398,697
0 Total Capital Assets being Depreciated 3,820,573 3,735,195 3,725,245
Accumulated Depreciation
1 Buildings and Improvements 605,407 593,173 544,230
Equipment and Furniture 495,248 479,560 424,375
Vehicles 889,974 857,938 730,236
Total Accumulated Depreciation 1,990,629 1,930,671 1,698,841
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Total Capital Assets being Depreciated,Net 1,829,944 1,804,524 2,026,404
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Capital Assets Net of Depreciation 3,604,314 3,577,395 3,793,922
Notes Payable (460,000) (517,500) (575,000)
Investment in Capital Assets Net of Related Debt $3,144,314 $3,059,895 $3,218,922
Debt Administration
The District had long-term obligations of $1,257,563 at December 31, 2014, as compared to
$1,216,325 at September 30, 2014 and $1,062,226 at September 30, 2013. The increase is primarily
due to the increase in the liabilities for OPEB and Compensated Absences. Included in the long-term
obligations is a note payable with a balance at December 31, 2014 of $402,500. The principal
,,; balance on the note is being reduced by$57,500 annually.
Economic Factors and Next Year's Budget and Rates
s The three months ended December 31, 2014 was the final operating period for Big Corkscrew Island
Fire Control and Rescue District. Effective January 1, 2015, the District has merged with North
-1 Naples Fire Control and Rescue District to create the North Collier Fire Control and Rescue District.
The accounting records for the new District will separately report the activities of the Big Corkscrew
Island service delivery area from the activities of the North Naples service delivery area. Each
service delivery area is governed by its separately approved budgets for the fiscal year ending
September 30,2015.
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Requests for Information
r- This financial report is designed to provide a general overview of the District's finances for all those
with an interest in the District's finances. Questions concerning any of the information provided in
this report or requests for additional financial information should be addressed to Becky Bronsdon,
Assistant Chief of Administrative Services, North Collier Fire Control and Rescue District, 1885
Veterans rark Drive,Naples,Florida 34109.
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Page 3 of 34
BIG CORKSCREW ISLAND FIRE CONTROL & RESCUE DISTRICT
STATEMENT OF NET POSITION
December31, 2014
Governmental
Activities
ASSETS
Current Assets
Cash and cash equivalents $ 4,366,074
Restricted cash and cash equivalents 728,282
Due from other governments 109,379
Other Receivables 213
[.] Prepaid Expenses 41,367
Total Current Assets 5,245,315
Noncurrent Assets
Capital Assets
Land 765,081
Construction in Progress 1,009,289
Depreciable Assets (net of accumulated depreciation$1,990,630) 1,829,944
Total Noncurrent Assets 3,604,314
TOTAL ASSETS 8,849,629
LIABILITIES
Current Liabilities
Accounts payable and accrued expenses 121,468
Current portion of long-term obligations 57,500
Total Current Liabilites 178,968
Noncurrent Liabilities
Noncurrent portion of long-term obligations 1,257,563
Total Noncurrent Liabilities 1,257,563
TOTAL LIABILITIES 1,436,531
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NET POSITION
Net investment in capital assets 3,144,314
Restricted 735,341
Unrestricted 3,533,443
TOTAL NET POSITION $ 7,413,098
The accompanying notes are an integral part of this statement.
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OPage 4 of 34
BIG CORKSCREW ISLAND FIRE CONTROL&RESCUE DISTRICT
Q STATEMENT OF ACTIVITIES
Three Months Ended December 31,2014
Governmental
Activities
EXPENSES
Governmental Activities
Public Safety-Fire Protection
i , Personnel Services $ 991,100
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Li Operating Expenses 174,029
Depreciation 59,960
Interest and fiscal charges 19,442
''' TOTAL EXPENSES-GOVERNMENTAL ACTIVITIES 1,244,531
0 PROGRAM REVENUES
Charges for services 5,882
Operating grants and contributions 2,151
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I TOTAL PROGRAM REVENUES 8,033
r GENERAL REVENUES
Ad Valorem Taxes 2,847,614
Impact Fees 98,762
Q Interest Income 358
Gain on Sale of Assets
-
Other Revenues 4,546
E.] TOTAL GENERAL REVENUES 2,951,280
CHANGE IN NET POSITION 1,714,782
INET POSITION-September 30,2014 5,698,316
NET POSITION-December 31,2014 $ 7,413,098
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BIG CORKSCREW ISLAND FIRE CONTROL & RESCUE DISTRICT
a BALANCE SHEET- GOVERNMENTAL FUNDS
December31, 2014
Impact Total
General Fee Governmental
Fund Fund Funds
0 ASSETS
Cash and cash equivalents $4,366,074 $ - $ 4,366,074
Restricted Cash and cash equivalents - 728,282 728,282
Due from other governments 102,053 7,326 109,379
Other Receivables 213 -
213
Prepaid Expenses 41,367 - 41,367
TOTAL ASSETS $4,509,707 $735,608 $ 5,245,315
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenses $ 121,200 $ 267 $ 121,467
TOTAL LIABILITIES 121,200 267 121,467
E FUND BALANCES
Nonspendable 41,367 - 41,367
Restricted - 735,341 735,341
Li Assigned 1,764,102 - 1,764,102
Unassigned 2,583,038 2,583,038
TOTAL FUND BALANCES 4,388,507 735,341 5,123,848
0 ,TOTAL LIABILITES AND FUND BALANCES $4,509,707 $735,608 r$ 5,245,315
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The accompanying notes are an integral part of this statement.
Page 6 of 34
BIG CORKSCREW ISLAND FIRE CONTROL & RESCUE DISTRICT
r- RECONCILIATION OF THE BALANCE SHEET
OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2014
Amount
Total fund balance of governmental funds $ 5,123,848
Amounts reported for governmental activities in the
Li Statement of Net Position are different because:
Capital assets used in governmental activities are not
financial resources and therefore are not reported in
the governmental funds.
Capital assets not being depreciated
Land 765,081
Construction in Progress 1,009,289
1,774,370
Governmental capital assets being depreciated
Buildings,improvements,equipment,and vehicles 3,820,573
Accumulated Depreciation (1,990,630)
1,829,943
Long-term obligations are not due and payable in the current
period and therefore are not reported in the funds.
Notes Payable (460,000)
Net OPEB obligation (466,203)
Compensated absences (388,860)
(1,315,063)
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Total net position of governmental activities $ 7,413,098
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The accompanying notes are an integral part of this statement.
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BIG CORKSCREW ISLAND FIRE CONTROL & RESCUE DISTRICT
1 STATEMENT OF REVENUES, EXPENSES, & CHANGES IN
FUND BALANCE - GOVERNMENTAL FUNDS
r Three Months Ended December31, 2014
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Impact Total
p General Fee Governmental
Fund Fund Funds
REVENUES
1 Ad Valorem Taxes $ 2,847,614 $ - $ 2,847,614
Charges for Services 5,882 5,882
Impact Fees - 98,762 98,762
Opearting grants and contributions 2,151 - 2,151
Interest income 233 125 358
Gain on sale of assets - - -
Other Revenues 4,546 - 4,546
TOTAL REVENUES 2,860,426 98,887 2,959,313
I EXPENDITURES
Current
Public Safety - Fire Protection - - -
Personnel Services 892,362 - 892,362
Operating expenditures 172,486 1,543 174,029
Debt Service - - -
Principal reduction - 57,500 57,500
Interest and fiscal charges - 19,442 19,442
[1 Capital Outlay 85,379 1,500 86,879
TOTAL EXPENDITURES 1,150,227 79,985 1,230,212
ElExcess or(Deficiency) of Revenues
Over Expenditures 1,710,199 18,902 1,729,101
Fund Balance, September 30,2014 2,678,308 716,439 3,394,747
Fund Balance,December 31,2014 $ 4,388,507 $ 735,341 . $ 5,123,848
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The
accompanying notes are an integral part of this statement.
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BIG CORKSCREW ISLAND FIRE CONTROL & RESCUE DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
[� EXPENDITURE AND CHANGES IN FUND BALANCE OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Three Months Ended December 31, 2014
a
Amount
Net Changes in Fund Balances of Total Governmetal Funds $ 1,729,101
The decrease (change) in net position reported for governmental
activities in the Statement of Activities is different because:
Governmental funds report capital outlays as expenditures.
In the Statement of Activities; however,the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense.
Expenditures for capital assets 86,879
Less -current year depreciation (59,960)
26,919
Repayment of principal is an expenditure in the governmental
funds but reduces the liability in the Statement of Net Position.
i:.3
Repayments (principal retirement)
[13 Notes Payable 57,500
Some expenses reported in the Statement of Activities do not
require the use of current financial resources and,therefore,are
not reported as expenditures in the governmental funds.
ri
Increase in the Net OPEB obligation (36,116)
Increase in compensated absences (62,622)
(98,738)
" Change in net position of governmental activities $ 1,714,782
d
The accompanying notes are an integral part of this statement.
Page 9 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Big Corkscrew Island Fire Control and Rescue District(the"District") is an independent special
taxing district located in Collier County, Florida. The District was originally established June 24,
E 1977 by Florida Legislature to provide fire and rescue services to a certain prescribing area in
.. Collier County, Florida. The District is an independent special authorized and existing under the
Laws of Florida Chapter 77-535. The District is governed by three(3)member elected Board of
Commissioners.
The District operates and maintains two (2) stations, an administration facility, and a shop for
equipment repairs and maintenance. As a result of the decline in property values within the
District over the past several years,the construction of a third station has been postponed.
On February 6, 2014, the District entered into an Interlocal Agreement with North Collier Fire
Control and Rescue District to merge the two Districts. Each Board adopted a resolution
identifying their intent to initiate the voluntary merger process pursuant to Florida Statute
189.074. The two Districts created a proposed Joint Merger Plan which was adopted by both
Boards and ultimately put before the voters of each District by referendum. On November 4,
2014, voters from both Districts approved the referendum to merge the Districts into one called
the North Collier Fire Control and Rescue District. On June 10, 2015, the Governor signed into
legislation the official enabling act of the new District under the Laws of Florida, Chapter 2015-
I 1 191. On January 1, 2015, the North Collier Fire Control and Rescue District officially began
operating. There is no effect of the merger on these financial statements.
As of December 31, 2014, the District had not implemented GASB Statement No. 68
"Accounting and Financial Reporting for Pensions — An Amendment of GASB Statement No.
27". Accounting principles generally accepted in the United States of America required this
Statement be implemented by the District for fiscal years beginning after June 15, 2014. The
implementation would increase the assets or liabilities and deferred inflows and outflows in the
District's Governmental Activities. With the upcoming merger of the Districts, it was decided to
begin implementation of the Statement with the initial reporting period for North Collier Fire
Control and Rescue District as of and for the nine months ended September 30,2015.
Reporting Entity
The District adheres to Governmental Accounting Standards Board (GASB) Statement No. 14,
"Financial Reporting Entity", as amended by GASB Statement No 39, "Determining Whether
Certain Organizations Are Component Units" and GASB Statement No. 61, "The Financial
Reporting Omnibus—An Amendment of GASB Statements No. 14 and No. 34.
,I
1
i.:
[l]
Page 10 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
r"" Reporting Entity,continued
This Statement requires the basic financial statements of the District(the primary government)to
include its component units, if any. The District administration had entered into a contract with
the Immokalee Fire District to provide mechanic services. This agreement ceased in April 2014.
The Immokalee Fire District has its own separate Board of Commissioners who are charged with
governance of their District. In evaluating how to define the District for financial reporting
purposes, management has considered its relationship with the Immokalee Fire District as well as
other potential component units in applying the criteria set forth in GASB Statement No. 14,
"The Financial Reporting Entity". The basic criterion for including a component unit within the
District's reporting entity is (1) the governing body's ability to exercise oversight responsibility,
(2)the scope of public services provided, and(3)the existence of special financing relationships,
regardless of whether the District is able to exercise oversight responsibility. Based on the
application of these criterion, the District has no component units required to be included in the
District's basic financial statements.
Government-wide Financial Statements
The government-wide financial statements(i.e.,the Statement of Net Position and the Statement
of Activities)report information on all of the activities of the District and do not emphasize fund
types.These governmental activities comprise the primary government.General governmental
and intergovernmental revenues support the governmental activities.The purpose of the
government-wide financial statements is to allow the user to be able to determine if the District is
in a better or worse financial position than the prior year.The effect of all interfund activity
between governmental funds has been removed from the government-wide financial statements.
Government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting,as are the pension fund financial statements. Under the
accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting
from exchange and exchange-like transactions are recognized when the exchange takes place.
Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions
are recognized in accordance with the requirements of GASB Statement Number 34,
"Accounting and Financial Reporting for Nonexchange Transactions"(GASB 34).
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial
statements rather than reported as expenditures. Proceeds of long-term debt are recorded as
liabilities in the government-wide financial statements rather than as other financing sources.
Amounts paid to reduce long-term indebtedness of the reporting government are reported as a
reduction of the related liability in the government-wide financial statements rather than as
expenditures.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
ri function 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, and 2) grants and contributions that are restricted to meeting the operational or
capital improvements of a particular function.Taxes and other items not properly.
-iI
Page 11 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Fund Financial Statements
The District adheres to GASB Number 54, "Fund Balance Reporting and Governmental Fund
Type Definitions" that required a change in the reporting format of fund balances in the
governmental fund statements. Essentially, the implementation resulted in adoption of a fund
balance policy and reclassification of the components within fund balance.
The accounts of the District are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets, liabilities, fund equity or retained earnings,
revenues, and expenditures or expenses, as appropriate. Government resources are allocated to
and accounted for in individual funds based upon the purpose for which they are to be spent and
the means by which spending activities are controlled.
Fund financial statements for the District's governmental funds are presented after the
government-wide financial statements. These statements display information about major funds
individually.
Governmental Funds
When both restricted and unrestricted resources are combined in a fund, expenditures are
considered to be paid first from restricted resources, as appropriate, and then from unrestricted
resources. Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues are
considered to be available when they are collected within the current period or soon thereafter to
pay liabilities of the current period.
[1 The District's major funds are presented in separate columns on the governmental fund financial
statements. The definition of a major fund is one that meets certain criteria set forth in GASB
[? Statement Number 34, "Basic Financial Statements-and Management's Discussion and Analysis
[_ - for State and Local Governments" (GASB 34). The funds that do not meet the criteria of a
major fund are considered non-major funds and are combined into a single column on the
[1 governmental fund financial statements.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported in separate columns on the fund financial statements.
Measurement Focus and Basis of Accounting
Li Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the basic financial statements. Basis of accounting relates to the timing
("1 of the measurements made,regardless of the measurement focus applied.
1
a
[1] Page 12 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Measurement Focus and Basis of Accounting,continued
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 have been met.
Governmental 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 and
• soon enough thereafter to pay liabilities of the current period. For this purpose, the District
considers tax revenues to be available if they are collected within sixty days of the end of the
current fiscal period.
Revenues susceptible to accrual are property taxes, interest on investments, and
intergovernmental revenues. Property taxes are recorded as revenues in the fiscal year in which
they are levied,provided they are collected in the current period or within sixty days thereafter.
Interest on invested funds is recognized when earned. Intergovernmental revenues that are
reimbursements for specific purposes or projects are recognized when all eligibility requirements
are met.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liability is incurred. Exceptions to this general rule include: (1)principal and interest
on long-term debt, if any, is recognized when due; and(2)expenditures are generally not divided
between years by the recording of prepaid expenditures.
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.
Non-current Government Assets/Liabilities
GASB 34 requires non-current governmental assets, such as land and buildings, and non-current
governmental liabilities, such as notes payable and capital leases, to be reported in the
governmental activities column in the government-wide Statement of Net Position.
rl
Page 13 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Major Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial resources
[] of the District,except those required to be accounted for in another fund.
The Impact Fee Fund (a special revenue fund) consists of fees imposed and collected by Collier
Q County based on new construction within the District. The fees are restricted and can only be
used for certain capital expenditures associated with growth within the District.
Budgetary Information
The District has elected to report budgetary comparisons of its major funds as required
supplementary information(RSI).
Capital Assets
11 Capital assets, which include land, construction in progress, buildings, equipment and vehicles,
are reported in the government-wide Statement of Net Assets.
The District follows a capitalization policy which calls for capitalization of all capital assets that
have a cost or donated value of$1,000 or more and have a useful life in excess of one year.
[i All capital assets are valued at historical cost, or estimated historical cost if actual historical cost
is not available. Donated capital assets are valued at their estimated fair market value on the date
donated. Public domain (infrastructure) capital assets consisting of certain improvements other
than building, including curbs, gutters and drainage systems, are not capitalized, as the District
generally does not acquire such assets. No debt-related interest expense is capitalized as part of
capital assets in accordance with GASB 34.
Maintenance, repairs and minor renovations are not capitalized. The acquisition of land and
construction projects utilizing resources received from Federal and State agencies are capitalized
when the related expenditure is incurred.
Expenditures that materially increase values, change capacities or extend useful lives are
capitalized. Upon sale or retirement,the cost is eliminated from the respective accounts.
Expenditures for capital assets are recorded in the fund statements as current expenditures.
However, such expenditures are not reflected as expenditures in the government-wide statements,
but rather are capitalized and depreciated.
U
Page 14 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Capital Assets,continued
Depreciable capital assets are depreciated using the straight-line method over the following
estimated useful lives:
Capital Asset Years
a Buildings 15-30
Capital Assets acquired under Capital Lease 6
Office Equipment 3-30
Vehicles 3-10
Equipment and Machinery 3-15
Budgets and Budgetary Accounting
The District adopted an annual budget for the General Fund.
The District adopted annual budgets for the Special Revenue Funds-Impact Fee Fund.
The District follows these procedures in establishing budgetary data for the General Fund, the
Impact Fee Fund, and the Inspection Fee Fund:
1. During the summer of each year,the District Fire Chief submits to the Board
of Commissioners a proposed operating budget for the fiscal year commencing
on the upcoming October 1.The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these basic financial statements, are as
originally adopted or as amended by the Board of Commissioners.
[I
5. The budget is adopted on a basis consistent with accounting principles
generally accepted in the United States of America.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
A budget amendment was approved by the Board of Commissioners at their October 10, 2014
meeting. The General Fund budgeted revenue was reduced by $72,465 while Reserves
expenditures were reduced by the same amount. The Impact Fee Fund budgeted revenue was
reduced by $30,075 while the Reserve expenditures were reduced by the same amount. There
were no other amendments during the three months ended December 31,2014.
4
Page 15 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Impact Fees/Deferred Revenue
The District levies an impact fee on new construction within the District. The intent of the fee is
for growth within the District to pay for capital improvements needed due to the growth. The fee
LIis imposed and collected by Collier County and remitted to the District.
Net Assets
In governmental fund statements net assets are identified as restricted when there are externally
imposed constraints as to their use,such as through debt covenants,by grantors,or by law.
Fund Balances
The governmental fund financial statements the District maintains include nonspendable,
restricted, assigned, and unassigned fund balances. Nonspendable fund balances are those that
cannot be spent because the are either (a) not in spendable form or (b) legally or contractually
required to be maintained intact. Criteria include items that are not expected to be converted into
cash,for example prepaid expenses.
Restricted fund balances are those that are restricted by a third party. Restricted fund balances
can only be spent for the stipulated purposes.
The District's assigned fund balances are a result of the actions of the District's Board. The
assigned fund balance includes the District's operational and capital reserves. At September 30,
`; 2014, fund balance is also assigned for a variety of specific items by District Board action. Any
use of the assigned fund balance requires the District's Board approval.
Compensated Absences
The District's employees accumulate annual leave based on the number of years of continuous
service. Upon termination of employment, employees can receive payment of accumulated
annual leave if certain criteria are met. The costs of accumulated annual leave benefits
(compensated absences)are expended in the respective operating funds when payments are made
to employees. However, the liability for all accrued vacation and personal leave benefits is
recorded in the government-wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable
appropriation, is not employed by the District because, at present, it is not necessary in order to
assure effective budgetary control or to facilitate effective cash planning and control.
Page 16 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
r
NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Management Estimates
1 The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenditures during the reporting period.Actual results could differ from those estimates.
Subsequent Events
Subsequent events have been evaluated through September 7, 2015, which is the date the basic
financial statements were available to be issued.
NOTE B—CASH AND CASH EQUIVALENTS
Cash and cash equivalents of the primary government were $5,094,356 at December 31,2014,of
which $728,282 was restricted. The total cash and cash equivalents included cash on hand in the
amount of$150.
Deposits
The District's deposit policy allows deposits to be held in demand deposit accounts, money
market accounts, and the Florida State Board of Administration — Local Government Surplus
Trust Fund. All depositories are institutions designated as qualified public depositories by the
State Treasurer. The District's deposits were entirely covered by federal depository insurance of
by collateral pursuant to the Public Depository Security Act (Florida Statute 280)of the State of
Florida. Bank balances approximate market value.
The District held no other types of deposits during the three months ended December 31, 2014.
The Local Government Surplus Fund is not required to be categorized because the investments
are not evidenced by securities that exist in physical or book entry form.
Deposits consist of the following at December 31,2014:
[11 Carrying Bank
Amount Balance
Unrestricted cash and cash equivalents
General Fund
Depository Accounts $4,366,224 $4,408,281
Restricted cash and cash equivalents
Impact Fee Fund
Depository Accounts $ 728,282 $ 729,782
LI
[-I
Page 17 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
Pi NOTE B—CASH AND CASH EQUIVALENTS,CONTINUED
.[7i Restricted Cash and Cash Equivalents
The Impact Fee Fund account is used to account for the deposit of impact fees received and is
restricted for certain capital asset acquisition associated with growth within the District
f boundaries. Impact Fees are collected by Collier County on behalf of the District pursuant to
County ordinance and District resolution.
NOTE C—CAPITAL ASSETS ACTIVITY
The following is a summary of the changes in capital assets for the year ended December 31,2014:
[ 9/30/2014 Additions Dispositions 12/31/2014
Governmental Activities
Capital Assets not being depreciated
Land $ 765,081 $ - $ - $ 765,081
Construction In Progress 1,007,789 1,500 - 1,009,289
^ Total Capital Assets not being depreciated 1,772,870 1,500 - 1,774,370
Capital Assets being depreciated
Buildings and Improvements 1,721,095 - -
1,721,095
Equipment and Furniture 615,402 38,313 - 653,715
[II Vehicles and Trucks 1,398,697 47,066 - 1,445,763
Total Capital Assets being depreciated 3,735,194 85,379 - 3,820,573
El Accumulated Depreciation
Buildings and Improvements 593,171 12,236 - 605,407
Equipment and Furniture 479,560 15,688 - 495,248
Vehicles and Trucks 857,938 32,036 889,974
Total Accumulated Depreciation 1,930,669 59,960 - 1,990,629
::1 Total Capital Assets being depreciated, net 1,804,525 25,419 - 1,829,944
Li Governmental Activities Capital Assets, net $3,577,395 ., $26,919 $ - $3,604,314
Notes Payable (460,000)
LiNet investment in capital assets $3,144,314
ii
Li
Ii}s
Page 18 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
1 NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE D- LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the year ended December 31,
2014:
Amounts
Balance Balance Due Within
9/30/2014 Additions Reductions 12/31/2014 One Year
Net OPEB obligation $ 430,087 $ 36,116 $ $ 466,203 $
Notes Payable 517,500 - (57,500) 460,000 57,500
Compensated Absences 326,238 119,921 (57,299) 388,860 -
`- $ 1,273,825 $156,037 $(114,799) $ 1,315,063 $ 57,500
[I
Amount
Net OPEB obligation. Cumulative difference between annual between annual
OPEB cost and District payments toward the cost of post employment benefits
other than pensions since GASB No. 45 transition date of October 1, 2012. $ 466,203
$1,150,000 bank note payable to Suntrust Bank over a 20-year period ending
November 1,2024 in equal annual principal payments of$57,500 plus
accrued interest at a rate of 3.75%. 460,000
,
Compensated absences. Employees of the District are entitled to paid time off
based on length of service and job classification, 388,860
$ 1,315,063
The following is a schedule of the present value of net future minimum payments
on the District's debt as of December 31,2014:
Year Ended September 30, Amount
2016 $ 74,750
2017 72,594
2018 70,438
2019
68,281
2020-2023
251,562
Total minimum payments 537,625
Less:Amount representing interest 77,625
of net minimum payments $ 460,000
Page 19 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE E-RETIREMENT PLANS
Florida Retirement System
All District personnel employed prior to January 1, 1996 and all other District personnel (other
than firefighters) including the Board of Commissioners, hired on or after January 1, 1996, are
participants in to the statewide Florida Retirement System (FRS) under the authority of Article
X, Section 14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS
iag Plan (the "Plan") was noncontributory prior to July 1, 2011. Beginning July 1, 2011, FRS
required a participant contribution equal to 3% of eligible compensation for all classes of
employees except for those enrolled in the DROP program, which requires no employee
contribution. The FRS is administered by the State of Florida. The District contributed 100%of
the required contributions for the three months ended December 31, 2014 and the years ended
September 30, 2014, 2013, and 2012. The District's contributions to the Plan for the three
months ended December 31, 2014 was$107,507 and the years ended September 30, 2014, 2013,
and 2012 were $348,049, $311,123, and $251,490, respectively, which represents 18%, 18%,
15%, and 22%, respectively, of covered payroll. The pension cost for the District ranged
between 6.95% and 19.82%for the three months ended December 31,2014.
Employees enrolled prior to July 1,2011, who retire at or after age 62 with 6 years of creditable
service (6 years for elected state officials), 6 years of senior management service and age 62, 6
years of special risk service and age 55, Or 30 years of service (25 years for special risk)
regardless of age, are entitled to a retirement benefit, payable for life, equal to 1.6%to 3.0% per
year of creditable service, depending on the class of employee (regular, special risk, etc.) based
on average final compensation of the five (5) highest fiscal years' compensation. The benefit
cannot exceed 100%of average final compensation.
Employees enrolled on or after July I, 2011, who retire at or after age 65 with 8 years of
creditable service, 8 years of senior management service and age 65, 8 years of special risk
service and age 60, or 33 years of service(30 years for special risk)regardless of age,are entitled
to a retirement benefit, payable for life, equal to 1.6% to 3.0% per year of creditable service,
depending on the class of employee based on average final compensation of the eight(8)highest
[1 fiscal years'compensation. Benefit cannot exceed 100%of average final compensation.
Benefits vest after six years of creditable service for those enrolled prior to July 1, 2011, and
after eight years for those enrolled on or after July 1, 2011. Vested employees may retire any
time after vesting and incur a 5%benefit reduction for each year prior to normal retirement age.
Early retirement, disability, death and survivor benefits are also offered. Benefits are established
rit
by State statute. The Plan provides for a constant 3%cost-of-living adjustment for retirees.
The Plan also provides several other Plan investment options that may be elected by the
employee. Each offers specific contribution and benefit options. The Plan documents should be
3 referenced for complete detail.
U
Page 20 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
[7,1 NOTE E-RETIREMENT PLANS,CONTINUED
Description of Funding Policy
The Plan is a cost sharing, multi-employer plan available to governmental units within the state
of Florida. Actuarial information with respect to an individual participating entity is not
available. Participating employers are required, by statute, to pay monthly contributions at
actuarially determined rates that, expressed as percentages of annual eligible compensation, are
adequate to accumulate sufficient assets to pay benefits when due.
Trend Information
A copy of the FRS's June 30, 2014 annual report can be obtained by writing to the Florida
Division of Retirement, Cedars Executive Center, 2639-C North Monroe Street, Tallahassee,
Florida 32399-1560,or by calling 850-488-5706.
Deferred Compensation Plan
The District's Board of Commissioners adopted GASB Statement No. 32, "Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans"
during the fiscal year ended September 30, 1998. This required the removal of the related asset
and liability of the deferred compensation plan since the funds were not held in trust and were
not the property of the District. The District makes no contributions to this Plan.
NOTE F-OTHER POST-EMPLOYMENT BENEFITS(OPEB)
Defined Benefit Plan
Big Corkscrew Island Fire Control and Rescue District offers its retirees the opportunity to
El continue health and dental benefits for themselves, spouse, and eligible dependents. During the
fiscal year ended September 30, 2014, one retiree participated in the District's OPEB
arrangement. The retiree notified the District of his election to withdraw from the arrangement.
As of December 31,2014,the District has no retirees participating in this program.
Li
Plan Contributions,Funding Policy,and Annual OPEB Cost
Retirees choosing to continue participating in the group health insurance plan offered by the
District are required to contribute 100% of the active premium. The District made no premium
payments for retired personnel during the three months ended December 31, 2014. In future
years, retiree contributions are assumed to increase at the same rate as premiums increase. The
projected employee contributions for the post-employment benefits are assumed to cover the
entire cost of the program. No separate trust has been established for the Plan and the Plan does
ri not issue a stand-alone financial report. The District Board of Commissioners has the authority
to establish and amend benefit provisions.
L.
Page 21 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE F-OTHER POST-EMPLOYMENT BENEFITS(OPEB),CONTINUED
Plan Contributions,Funding Policy,and Annual OPEB Cost,continued
Li The District obtained an actuarial valuation for its OPEB Plan to measure the current year's
subsidies and project subsidies into the future, making an allocation of that cost to different
years. The following schedule of funding progress is based on the initial actuarial valuation
dated September 30,2012.
The following schedule of funding progress is based on the initial actuarial valuation dated
September 30,2012.
Percentage of
Year Annual Annual OPEB Net OPEB
Ended OPEB Cost Contribution Cost Obligation
9/30/2014 $ 150,884 $ 8,284 5.50% $ 430,087
9/30/2013 $ 154,884 $ 13,723 8.90% $ 285,624
9/30/2012 $ 158,186 $ 13,723 8.70% $ 144,463
The annual OPEB cost is the amount that was expensed in the current year Since the District's
Plan is unfunded, the offset to that expense comes from subsidies paid on behalf of the current
retirees and their dependents for the current year. The offset is called the expected cash payment.
The cumulative difference between the annual OPEB cost for the year and the expected cash
payment is called the net OPEB obligation (NOO). The net OPEB obligation is reflected as a
liability in the Statement of Net Position. The following table shows the components of the
District's annual OPEB cost for the year and the net OPEB obligation.
Three Months Ended December 31,2014
Amount
Normal Cost(Service Cost For One Quarter) $ 31,462
Amortization of Unfunded Actuarial Accrued Liability(UAAL) 8,085
Interest on Normal Cost and Amortization 198
Annual Required Contribution(ARC) 39,745
1 Interest on Net OPEB Obligation 357
Adjustment to Annual Required Contribution (3,986)
Total OPEB Cost(Expense) 36,116
;ry Age Adjusted Contributions Made -
Change in Net OPEB Obligation 36,116
Net OPEB Obligation-September 30,2014 430,087
Net OPEB Obligation -December 31,2014 $ 466,203
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BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE F-OTHER POST-EMPLOYMENT BENEFITS(OPEB),CONTINUED
Plan Contributions,Funding Policy,and Annual OPEB Cost,continued
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trend. Amounts
determined regarding the funding status of a plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future.
Plan Contributions,Funding Policy,and Annual OPEB Cost,continued
Actuarial Actuarial Actuarial Annual Unfunded AAL
Valuation Value of Accrued Unfunded Funded Covered as a Percentage
Date Assets Liability (AAL) AAL Ratio Payroll of Covered Payroll
9/30/2012 - $ 1,303,353 $ 1,303,353 0.00% $ 1,950,000 66.84%
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on substantive plan provisions,
as understood by the employer and participating members, and include the type of benefits
provided at the time of each valuation and the historical pattern of sharing benefit costs between
the employer and participating members. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
11:1 The September 30, 2012 OPEB actuarial valuation was calculated using the alternative
measurement method in accordance with GASB No. 45 and GASB No. 43. Because the OPEB
liability is unfunded, the actuarial assumptions included a discount rate of.50%, mortality rates
as set forth in the RP2000 Mortality Table, standard turnover assumptions per GASB No. 45
paragraph 35b, average retirement age of 59, and healthcare cost trend rate of 8.00% in year 1
decreasing to 4.70%. The healthcare cost trend rates were developed consistent with the Getzen
model promulgated by the Society of Actuaries for use in long-term trend projections. The
unfunded actuarial accrued liability, as calculated, is being amortized over a period of 30 years as
a level percentage of payroll.
NOTE G- HEALTH SAVINGS ACCOUNT PLAN
The District established an HSA plan for its employees. The District contributed $1,500 per
eligible participant to the plan for a total contribution of $45,000 for the three months ended
December 31, 2014. Participants may also elect to contribute to the plan on a pre-tax basis.
HSA amounts that are not utilized by the year end are carried over and are the property of the
participant per Internal Revenue Service regulation.
Page 23 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
[111 NOTE H- RISK MANAGEMENT
The District is exposed to various risk of loss related to torts;theft of,damage to, and destruction
of assets; errors and omissions; and natural disasters. The District has obtained commercial
insurance from independent third parties to mitigate the costs of these risks; coverage may not
extend to all situations. There has been no significant decrease in coverage from the prior fiscal
year. Settled claims from these risks have not exceeded commercial insurance coverage for the
year ended September 30,2011 through December 31,2014.
NOTE I- PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become due and
payable on November 1 of each year and considered delinquent if not paid by April 1 of the
following year. Discounts on property taxes are allowed for payments made prior to the April 1
date. Tax certificates are sold to the public for the full amount of any unpaid taxes and must be
sold no later than June 1 of each year. The billing, collection, and related record keeping of all
property taxes is performed for the District by the Collier County Tax Collector. No accrual for
the property tax levy becoming due in November is included in the accompanying basic financial
statements,since such taxes are collected to finance expenditures of the subsequent period.
Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed
sales, are provided for by Florida Statutes. The enforceable lien date is approximately two years
after taxes become delinquent and occurs only upon request of a holder of a delinquent tax
certificate. As of December 31, 2014, $100,391 was recorded in the General Fund and was due
from Collier County Tax Collector to the District for ad valorem taxes and County held amounts.
Important dates in the property tax cycle are as follows:
Assessment roll certified July 1
Millage resolution approved No later than 93 days following
certification of assessment roll.
Taxes due and payable(Levy date) November/with various discount
provisions through March 31.
Property taxes payable-maximum
discount(4 percent) 30 days after levy date
Beginning of fiscal year for which
taxes have been levied October 1
Due date March 31
Taxes become delinquent(lien date) April 1
Tax certificates sold by the Collier
County Tax Collector Prior to June 1
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Page 24 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
_ December 31,2014
NOTE I- PROPERTY TAXES,CONTINUED
For the year ending September 30,2015,the Board of Commissioners levied ad valorem taxes at
a millage rate of $3.50 per $1,000 (3.5 mills) of the 2014 net taxable value of real property
located within the District.
NOTE J—ASSIGNED FUND BALANCE
A portion of the General Fund balance was assigned at December 31, 2014 for the following
specific purposes:
Amount
Nonspendable
,,. General Fund Prepaid Expenses $ 41,367
Assigned Fund Balance
General Fund - Fiscal Year Startup $ 700,000
General Fund - Fleet Reserves 150,000
General Fund - Facility Reserves 655,000
Q General Fund - GASB Reserves 259,102
Total General Fund Assigned Fund Balance $1,764,102
NOTE K- IMPACT FEE FUND ACTIVITY
During the three months ended December 31, 2014, the Impact Fee Fund reported the following
activity:
Amount
Impact Fee Revenues $ 98,762
Interest Income 125
Operating Expenditures - Collection Fees (1,481)
Operating Expenditures - Bank Fees (62)
Capital Outlay - Construction in Progress (1,500)
Debt Service - Principal Reduction (57,500)
Debt Service - Interest and Fiscal Charges (19,442)
Excess of Revenues over Expenditures $ 18,902
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Page 25 of 34
BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
December 31,2014
NOTE L-COMMITMENTS AND CONTINGENCIES
The District is involved from time to time in certain routine litigation, the substance of which
either as liabilities or recoveries, would not materially affect the financial position of the District.
Although the final outcome of the lawsuits, assertions, and claims or the exact amount of costs
and/or potential recovery is not presently determinable, in the opinion of the District's legal
counsel, the resolution of these matters will not have a materially adverse effect of the financial
L condition of the District. As a general policy, the District plans to vigorously contest any such
matters.
NOTE M-SUBSEQUENT EVENT
On December 9, 2014, the District Board approved resolution 15-3 authorizing District
management to sign the amended lease with American Tower. The amendment extends the lease
to May 26, 2031 and provides the District a one-time payment to the District of$60,000. The
funds had not yet been received as of December 31,2014.
On January 1, 2015, Big Corkscrew Island Fire Control and Rescue District officially merged
[it into the newly created North Collier Fire Control and Rescue District. The assets, liabilities,and
net position of the District was transferred into the new District. The new District will
encompass 264 square miles and revenues and expenses will be separately accounted for as the
Big Corkscrew Island Service Delivery Area and the North Naples Service Delivery Area
1
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OTHER THAN MD&A
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w BIG CORKSCREW ISLAND FIRE CONTROL & RESCUE DISTRICT
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL- GENERAL FUND
Li Three Months Ended December 31, 2014
Final Variance
�, Original Adjusted Favorable
Budget Budget Actual (Unfavorable)
1 1 REVENUES
u�= Ad Valorem Taxes $ 3,463,569 $ 3,463,569 $ 2,847,614 $ (615,955)
Intergovernmental Revenue
State Revenue Sharing- FF Supplemental 8,500 8,500 2,151 (6,349)
Operating Grants and Contributions 62,000 62,000 - (62,000)
Charges for Services 10,800 10,800 5,882 (4,918)
1 Miscellaneous
Interest Income 3,250 3,250 233 (3,017)
Other Income 102,625 102,625 4,546 (98,079)
Subtotal Revenues 3,650,744 3,650,744 2,860,426 (790,318)
Cash Brought Forward 2,844,880 2,772,415 - (2,772,415)
r Total Revenues 6,495,624 6,423,159 2,860,426 (3,562,733)
EXPENDITURES
[ Current
„j Public Safety
[il Personnel Services
Salaries 2,253,349 2,253,349 558,470 1,694,879
Taxes 199,499 199,499 44,242 155,257
Benefits 991,722 991,722 289,650 702,072
USubtotal Personnel Services 3,444,570 3,444,570 892,362 2,552,208
Operating Expenditures
ri Volunteer Services 2,500 2,500 1,110 1,390
Professional Services 15,000 15,000 - I5,000
Audit Services 10,900 10,900 - 10,900
Advertising 4,000 4,000 1,668 2,332
Property Appraiser 33,000 33,000 3,744 29,256
PCollection Fees 74,588 74,588 58,701 15,887
i Travel 5,000 5,000 1,567 3,433
Communications 26,000 26,000 5,898 20,102
Postage and Delivery 750 750 - 750
Subtotal Operating Expenditures 171,738 171,738 72,688 99,050
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BIG CORKSCREW ISLAND FIRE CONTROL&RESCUE DISTRICT
-
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
- BUDGET AND ACTUAL-GENERAL FUND
Three Months Ended December 31,2014
Final Variance
Original Adjusted Favorable
Budget Budget Actual (Unfavorable)
EXPENDITURES,CONTINUED
Operating Expenditures-continued
U Utilities 22,500 22,500 4,635 17,865
Rentals 6,000 6,000 1,446 4,554
[..] General Liability Insurance 45,520 45,520 12,648 32,872
Repairs and Maintenance 95,995 95,995 35,692 60,303
Printing 1,000 1,000 - 1,000
Bank Fees 6,000 6,000 1,214 4,786
Supplies 36,500 36,500 5,928 30,572
Fuels and Lubricants 42,000 42,000 9,371 32,629
Uniforms and Bunker Gear 31,725 31,725 10,056 21,669
Dues and Subscriptions 7,150 7,150 2,617 4,533
iii Training and Education 31,760 31,760 12,930 18,830
Small Equipment 16,500 16,500 3,261 13,239
Subtotal Operating Expenditures 342,650 342,650 99,798 242,852
El Capital Outlay
Other Improvements 7,000 7,000 - 7,000
Vehicles 46,000 46,000 47,066 (1,066)
Communication Technology 62,000 62,000 38,313 23,687
Office Equipment - - - -
Operating Equipment 8,000 8,000 - 8,000
Medical Equipment - - - -
c. Subtotal Capital Outlay 123,000 123,000 85,379 37,621
Reserves
Reserves 2,413,666 2,341,201 - 2,341,201
Total Expenditures 6,495,624 6,423,159 1,150,227 5,272,932
i'
j Excess of Revenues Over(Under)
Expenditures $ - $ - 1,710,199 $ 1,710,199
a:,i FUND BALANCE-September 30,2014 2,678,308
FUND BALANCE-December 31,2014 $ 4,388,507
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BIG CORKSCREW ISLAND FIRE CONTROL&RESCUE DISTRICT
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL-IMPACT FEE FUND
Three Months Ended December 31.2014
Final Variance
Original Adjusted Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Fees
Impact Fees $ 237,025 $ 237,025 $ 98,762 $ (138,263)
Miscellaneous
Interest Income 275 275 125 (150)
- Subtotal Revenues 237,300 237,300 98,887 (138,413)
Cash Brought Forward 700,000 669,925 - (669,925)
Total Revenues 937,300 907,225 98,887 (808,338)
,::- EXPENDITURES
Current
Public Safety
I Operating Expenditures
Collection Fees 3,555 3,555 1,481 2,074
Bank Fees - - 62 (62)
Subtotal Operating Expenditures 3,555 3,555 1,543 2,012
Capital Outlay
Medical Equipment - - - -
Construction in Progress 5,000 5,000 1,500 3,500
Subtotal Capital Outlay 5,000 5,000 1,500 3,500
Debt Service
0 Principal reduction 57,500 57,500 57,500 -
Interest and fiscal charges 31,000 31,000 19,442 11,558
Subtotal Debt Service 88,500 88,500 76,942 11,558
[.,] Reserves
Reserves 840,245 810,170 - 810,170
Total Expenditures 937,300 907,225 79,985 827,240
Excess of Revenues Over(Under)
Expenditures $ - $ -
18,902 $ 18,902
[I FUND BALANCE-September 30,2014 716,439
FUND BALANCE-December 31,2014 $ 735,341
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ADDITIONAL REPORTS OF
INDEPENDENT AUDITOR
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PERRINO&ASSOCIATES,CPAS,PA
Suite 160 Suite 300
4100 Corporate Square 214 South Sixth
— Naples, Florida 34104 Springfield, Illinois 62701
Telephone:(239)434-8299 Telephone: (217)523-4123
Fax: (239)434-7240 Fax: (217)523-5939
r o perrinoandassociates @earthlink.net www.perrino.com
;1
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Fire Commissioners
Big Corkscrew Island Fire Control and Rescue District
13240 Immokalee Road
Naples, FL 34120
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 of Big Corkscrew Island Fire Control and Rescue District, (the"District") as of and for the three
months ended December 31, 2014, and the related notes to the financial statements, which collectively
comprise the District's basic financial statements, and have issued our report thereon dated August 27,
2015.
I Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District's internal
control over financial reporting(internal control)to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the 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 combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency,or a combination of deficiencies, in internal control that is less severe
than a material weakness,yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. 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.
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L MEMBER AMERICAN INSTITUTE OF CPA'S•DIVISION FOR CPA FIRMS•ILLINOIS CPA SOCIETY•FLORIDA INSTITUTE OF CPA'S
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free from
— material misstatements, we performed tests of its compliance with certain provisions or laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
--) determination pf 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
--I 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
,
I 1 and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
,....
....
ill v.....,......, c.,,,,...c...........t.-4
O4 4„--
PERRINO&ASSOCIATES, CPAS,PA
Naples,Florida
August 27,2015
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PERRINO&ASSOCIATES,CPAS,PA
Suite 160 Suite 300
4100 Corporate Square 214 South Sixth
Naples, Florida 34104 Springfield, Illinois 62701
Telephone: (239)434-8299 Telephone: (217)523-4123
Fax: (239)434-7240 Fax: (217) 523-5939
perrinoandassociates @earthlink.net www.perrino.com
MANAGEMENT LETTER
1.
Board of Fire Commissioners
Big Corkscrew Island Fire Control and Rescue District
13240 Immokalee Road
Naples,FL 34120
Report on the Financial Statements
We have audited the financial statements of the Big Corkscrew Island Fire Control and Rescue District,
Florida,as of and for the three months ended December 31,2014, and have issued our report thereon dated
August 27,2015.
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 of America and Chapter 10.550, Rules of the Florida
Auditor General.
Other Reports
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and
t Compliance and Other Matters based on an audit of the financial statements performed in accordance with
Government Auditing Standards and Chapter 10.550,Rules of the Florida Auditor General. Disclosures in
that report, which was dated August 27, 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.
• Finding 13-14-1
During the testing of capital assets, it was noted that the District did not provide us with evidence
that a physical inspection of capital assets was performed as required by Article D of the Fixed
Assets Accounting and Control Policy. During the testing of capital assets for the three month
ended December 31, 2014, District staff provided us a copy of the inspection report performed.
This finding was corrected during the three months ended December 31,2014.
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Page 31 of 34
L MEMBER AMERICAN INSTITUTE OF CPA'S•DIVISION FOR CPA FIRMS•ILLINOIS CPA SOCIETY•FLORIDA INSTITUTE OF CPA'S
1
• Finding 13-14-2
During the testing of payroll, it was noted that the District had recorded a journal entry for the
change in other post-employment benefits(OPEB)for the fiscal year ended September 30,2014 to
an incorrect account. We provided the District with a correcting entry. The District needs to
review its controls over the recording of journal entries to ensure there is a timely detection of
incorrect postings. During our testing of payroll for the three months ended December 31, 2014,
District staff provided us a copy of the journal entry for posting the change in OPEB. This finding
was corrected during the three months ended December 31,2014.
Official Title and Legal Authority
s
Section 10.554(1)(i)(4)., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. There are no component
units related to the District. The information required by this section can be found in NOTE A to the
financial statements.
Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the Big Corkscrew Island Fire Control and Rescue District has met
one of more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the District did not meet any
of the conditions described in Section 218.503(1),Florida Statutes.
Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, require that we apply financial
condition assessment procedures. It is management's responsibility to monitor the District's financial
condition, and our financial condition assessment was based in part of the representations made by
management and the review of financial information provided by same. We applied the procedures as
required. The District had reported a loss in its General Fund in the amounts of$397,820 and $377,116
for the fiscal years ended September 30,2014 and September 30, 2013,respectively. For the three months
ended December 31, 2014, the District's General Fund showed revenues in excess of expenses in the
amount of$1,710,199. The District merged into North Collier Fire Control and Rescue District effective
January 1,2015.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, require that we report the results of our
determination as to whether the annual financial report for the 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 three months ended December 31,
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. No such recommendations were noted. The
District merged into the North Collier Fire Control and Rescue District effective January 1,2015.
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Page 32 of 34
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 House of Representatives,the Florida Auditor General,
Federal and other granting agencies, the Board of Commissioners, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
PERRINO&ASSOCIATES, CPAS,PA
Naples,Florida
August 27,2015
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PERRINO&ASSOCIATES,CPAS,PA
Suite 160 Suite 300
4100 Corporate Square 214 South Sixth
Naples, Florida 34104 Springfield, Illinois 62701
Telephone: (239)434-8299 Telephone:(217)523-4123
Fax: (239)434-7240 Fax: (217)523-5939
perrinoandassociates@earthlink net www.perrino.com
INDEPENDENT AUDITOR'S COMPLIANCE REPORT
Li Board of Fire Commissioners
Big Corkscrew Island Fire Control and Rescue District
13240 Immokalee Road
Naples,FL 34120
We have examined the Big Corkscrew Island Fire Control and Rescue District's (the "District")
compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, for the three
months ended December 31, 2014. Management is responsible for the District's compliance with those
requirements. Our responsibility is to express an opinion on the 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 the District's compliance with those requirements and performing such other procedures as we
consider 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 the District's compliance with
specified requirements.
In our opinion, the Big Corkscrew Island Fire Control and Rescue District complied, in all material
respects,with the aforementioned requirements for the three months ended December 31,2014.
' This report is intended solely for the information and use of the 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.
�¢�.ti•-mil l i-�►.o -. -a
PERRINO&ASSOCIATES,CPAS,PA
Naples,Florida
August 27,2015
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Page 34 of 34
L MEMBER AMERICAN INSTITUTE OF CPA'S•DIVISION FOR CPA FIRMS•ILLINOIS CPA SOCIETY•FLORIDA INSTITUTE OF CPA'S
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSION
J. Christopher Lombardo,Chairman • Norman E.Feder,Vice Chairman • Richard Hoffman,Secretary-Treasurer
James Burke . Ramon E.Chao • Christopher L.Crossan• Margaret Hanson • John 0.McGowan
June 11, 2015
Perrino&Associates,CPAs
4100 Corporate Square#160
Naples, FL 34104
The following is management's response to the audit report for the fiscal year ended September
30,2014:
Finding 13-14-1:
During the testing of capital assets, the auditor noted that the District did not provide evidence
that a physical inspection of capital assets was performed as required by Article D of the Fixed
Assets Accounting and Control Policy.
[1.
While a physical inventory was in fact performed,written confirmation by the individual(s)
performing the inventory was not obtained. A form has now been instituted for documentation
confirming the date(s)the physical inventory is performed, by whom, and provides for
supervisory acknowledgment.
Finding 13-14-2:
During payroll testing,the auditor noted the District incorrectly recorded a journal entry, and it is
noted that the District needs to review controls over the recording of journal entries to ensure
timely detection of incorrect postings.
Effective January 1, 2015, the Big Corkscrew Island Fare Control and Rescue District merged
with the North Naples Fire Control and Rescue D`strict to create the North Collier Fire Control
and Rescue District. One of the results of the merger was the addition of existing staff in the
North Naples District to augment the financial functions in the Big Corkscrew Island District.
There is now sufficient staff to segregate duties; the accounts payable/receivable accountant
makes the monthly financial journal entries, and the detailed general ledger is then reviewed by
L the Assistant Chief of Administration on a monthly basis to detect incorrect postings.
fSincerely,
L;
NORTH COLLIER FIRE C ' TROL AND RESCUE DISTRICT
RITA M. GREENBER /
Executive Fire Chief
1 885 Veterans Park Drive Naples,FL 34109•(239)597-3222N Fax(239)597-7082• www.northcollierfire.com