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Backup Documents 05/24/2016 Item #13A 1 4 A Comprehensive 4 f, Annual Financial Report Collier County, Florida Year ended September 30, 2015 4. 1 3; A Artwork courtesy of Michaela Castaldi. www.artworkbymichaeta.com We would like to express our sincere gratitude to Ms. Castaldi for allowing us to use her artwork. lA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2015 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS TIM NANCE, CHAIRMAN—DISTRICT 5 DONNA FIALA,VICE-CHAIRMAN—DISTRICT 1 GEORGIA A. HILLER, ESQ.—DISTRICT 2 TOM HENNING—DISTRICT 3 PENNY TAYLOR—DISTRICT 4 COUNTY MANAGER LEO E.OCHS,Jr. COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CHIEF FINANCIAL OFFICER DWIGHT E. BROCK DIRECTOR OF FINANCE AND ACCOUNTING CRYSTAL K. KINZEL Prepared by the Office of the Clerk of the Circuit Court, Finance and Accounting Department COLLIER COUNTY, FLORIDA ::) A COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS INTRODUCTORY SECTION Page Transmittal Letter Certificate of Achievement vii Organizational Chart viii FINANCIAL SECTION Independent Auditors'Report 1 Management's Discussion and Analysis(Unaudited) 4 Basic Financial Statements: Statement of Net Position 16 Statement of Activities 18 Balance Sheet—Governmental Funds 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 21 Statement of Revenues,Expenditures and Changes in Fund Balances—Governmental Funds 22 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Net Position 23 General Fund-Statement of Revenues,Expenditures and Changes in Fund Balances—Budget and Actual (Budgetary Basis) 24 Bayshore Gateway Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual(Budgetary Basis) 27 Immokalee Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual(Budgetary Basis) 28 Statement of Net Position—Proprietary Funds 29 Statement of Revenues,Expenses and Changes in Fund Net Position—Proprietary Funds 31 Statement of Cash Flows—Proprietary Funds 32 Statement of Fiduciary Net Position—Agency Funds 34 Notes to the Financial Statements 35 Required Supplemental Information 82 Combining and Individual Fund Financial Statements and Other Supplemental Information: Nonmaior Governmental Funds Combining Balance Sheet 90 Combining Statement of Revenues,Expenditures and Changes in Fund Balances 100 Combining Schedule of Revenues,Expenditures and Changes in Fund Balances-Budget and Actual(Non-GAAP) 110 Nonmaior Enterprise Funds Combining Statement of Net Position 134 Combining Statement of Revenues,Expenses and Changes in Net Position 136 Combining Statement of Cash Flows 137 Internal Service Funds Combining Statement of Net Position 140 Combining Statement of Revenues,Expenses and Changes Net Position 141 Combining Statement of Cash Flows 142 Fiduciary Funds Combining Statement of Fiduciary Net Position 144 Combining Statement of Changes in Fiduciary Net Position 145 3 7 A COLLIER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS- CONTINUED Component Units Combining Statement of Net Position 148 Combining Statement of Activities 149 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill 152 STATISTICAL SECTION(UNAUDITED' Net Position by Component 154 Change in Net Position 155 Governmental Activities Tax Revenues by Source 158 Fund Balances of Governmental Funds 159 Changes in Fund Balances of Governmental Funds 160 Assessed Value and Estimated Actual Value of Taxable Property 162 Property Tax Rates—All Direct and Overlapping Governments 163 Principal Tax Payers County-Wide 164 Property Tax Levies and Collections 165 Ratios of Outstanding Debt by Type 166 Ratios of General Bonded Debt Outstanding 167 Legal Debt Margin Information 168 Direct,Overlapping and Underlapping Governmental Activities Debt 168 Pledged-Revenue Coverage 169 Demographic and Economic Statistics 170 Principal Employers 171 Budgeted Full-Time Equivalent County Employees by Function 172 Operating Indicators by Function 173 Capital Asset Statistics by Function 174 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards 177 Independent Auditors' Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB Circular A-133 and Chapter 10.550,Rules of the Auditor General of the State of Florida 179 Schedule of Expenditures of Federal Awards and State Financial Assistance 182 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance 187 Schedule of Findings and Questioned Costs 188 Summary Schedule of Prior Audit Findings 198 iSA THIS PAGE INTENTIONALLY LEFT BLANK 1 3 A Coin* f Co.1lier CLERK OF THE CIRCtiIT COURT COLLIER COUNTY,XOURnIOUSE Dwight E. Brock-'Ql' erk of ircuit Court 3315 TAMIAMI TRL E STE 102 t P.O.BOX 413044 NAPLES,FL 34112-5324 NAPLES,FL 34101-3044 Clerk of Courts • Comptroller • Auditor•Custodian of County Funds May 24, 2016 To the Citizens and Members of the Board of County Commissioners, Collier County, Florida: It is with extreme pleasure that we present to you,the citizens of Collier County and members of the Board of County Commissioners, the Comprehensive Annual Financial Report (CAFR)for the fiscal year ended September 30, 2015. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the Board of County Commissioners and County management. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. For the fiscal year ended September 30, 2015 the independent auditor, CliftonLarsonAllen LLP, issued an unmodified opinion on the financial statements. Their report is included in the Financial Section of this report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Government Auditing Standards,the U.S. Office of Management and Budget Circular A-133,Audits of States, Local Governments and Non-Profit Organizations and the Rules of the Auditor General, Chapter 10.550. Information relating to the Single Audits, including the schedule of expenditures of federal awards and state financial assistance and the independent auditors' report on compliance and internal control over compliance with requirements applicable to each major federal program and state project,are included in the Federal and State Single Audit Section of this report. Governmental accounting and auditing principles require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Phone- (239)252-2646 Fax- (239) 252-2755 Website-www.collierclerk.com Email- collierclerk(a),collierclerk.com (MD&A). designed to Management's Discussion and AnalysisThis letter of transmittal is g ( ) complement MD&A and the two should be read in concert. Collier County's MD&A can be found in the Financial Section immediately following the independent auditors' report. PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and is made up of five residents elected by voters. In addition to the County Commissioners, voters elect the following five constitutional officers: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include law enforcement, emergency management, fire and EMS services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction. Additionally,the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility,three airports and a transit system. Budgets are prepared annually. Formal budgetary integration is employed as a management control throughout the year. The Board of County Commissioners conducts budget workshops during June of each year. The Board's proposed budget is released by July 15, in accordance with Florida Statutes. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to state statute. Public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state's largest county at 2,026 square miles, is on the southwest coast of Florida, directly west of Miami. With a 2015 population of 348,777 (a 6.8 percent increase over the last ten years), Collier County has been considered to be one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 309,939) and three municipalities: the Cities of Naples (pop. 20,968), Marco Island (pop. 17,460) and Everglades (pop. 410). The County's economic base is concentrated in tourism, agriculture, fishing, ranching and forestry with a growing services economy and an emerging technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. Taxable property market valuation for fiscal year 2015 totaled $64.6 billion, or a very high $185,210 per capita. The County's millage for General Fund operations in fiscal year 2015 remained at only 36%of the statutory 10 mill limit,or$3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2015 annual County unemployment rate stood at 5.2%,while the statewide average is 5.4%. Income levels are high, with a per capita personal income of$73,869. ii 1 3 A LONG TERM FINANCIAL PLANNING The County annually performs a three-year projection of major ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to developing annual budget policy. On an annual basis the County prepares and adopts a five-year Capital Improvement Element (CIE). The CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement Program (CIP). The total CIP projects planned for fiscal years 2016-2020 is $613.1 million. Included in the County's current CIP for fiscal years 2016-2020 are approximately$300.9 million in water and wastewater projects, $142.0 million in transportation projects, $22.7 million in stormwater projects and $24.4 million in government facilities projects. In addition, parks and recreation projects of approximately$36.3 million are planned,as well as$34.8 million for tourist development funded projects, $25.1 million in solid waste projects and miscellaneous projects totaling $1.8 million. None of the fiscal year 2016 — 2020 Capital Improvement Program is currently planned to be funded by bond or loan proceeds. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as revenue in the following year, maintaining a recommended General Fund unassigned fund balance of between 8% and 16% of actual expenditures and net operating transfers, the assessment of impact fees at such levels as allowed by law and supported by studies, and the earmarking of gas taxes for payment of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. The Collier County Debt Policy provides that a smaller net present value savings may be considered, but only on a case-by-case basis. In addition,the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. Consistent with Collier County's Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. During fiscal year 2015,the County refunded a portion of the Series 2006 Water and Sewer Revenue Bonds. This refinancing achieved a net present value savings of over 5%and is further described in Note 6 to the financial statements. The Clerk's Finance and Accounting Department monitors the daily cash needs of the County and invests the County's portfolio in accordance with the Collier County Investment Policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency securities, commercial paper and bankers' acceptances. The weighted average maturity of the total managed portfolio,to first call or maturity,was .99 years as of September 30, 2015. The average yield for fiscal year 2015 was .88%, which constitutes a reduction from historical rates, but an increase over recent years. Changes in the fair value of investments are recorded as part of interest income in the financial statements. iii 1 3 A AWARDS GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2014. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past twenty-nine years,from fiscal year 1986 to 2014. We believe our current report conforms to the Certificate of Achievement program requirements,and we are submitting it to the GFOA for consideration for an award again this year. Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2014. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last twenty- nine consecutive years. The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court and Comptroller for its annual budget for the fiscal year beginning October 1, 2014. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document,as an operations guide,as a financial plan,and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last thirteen consecutive years. ACKNOWLEDGEMENTS The preparation and publication of this Comprehensive Annual Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular we would like to express our appreciation to Kelly Jones, CGFO, Edith Manuel, CPA, Suzanne Boothby, Ron Dortch, Laura Drigotas, Don Holder, Lisa Johnson, Christine Killen, Michael Lofendo and June Wathen, all Accountants, along with Robin Sheley, Operations Manager, Raymond Milum, Jr., Clerk's iv 13 Accounting Manager and Jessica Arencibia and Vanessa Collier,Accounting Technicians,Jennifer Milum, Fiscal Technician, and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to CliftonLarsonAllen,the Board of County Commissioners, the Constitutional Officers, the County Manager, Division Administrators and the Department Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Crystal K. Kinzel, Director of Finance and Accounting, at(239) 252-6299. Respectfully, Dwigh '�. Brock Clerk of the Circuit Court and Comptroller 1 . IP , i lip Crystal ,, Kinzel Deputy Clerk Director a, inane'- and Accounting *`-rel('M.Johnssen,CPA /6eputy Clerk Assistant Finance Director v 1 A Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2014. This was the twenty-ninth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 1 3 A GO Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Collier County Clerk of the Circuit Court Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2014 iredefr'At-) Executive Director/CEO ........... ,i v^'i vo� � t1 3A >o m� m .7„82 z 2 a oL C-.1 c misimmimmmoc E2 « , 2 w a c 3 n a„ ' gin F „ " « t='oE um N N ° 3 °' zT � `oCu nm3 OEN ` Ey vao axA uoas c$O a co ucFo n m Ih ..... QVN ` 2N �' °pr as l' m v e w o m d ,n 2 0 « p m,n O u.E v m a w ` u ` w L`o w ZN 'Z u E.:12,7. a-4 C Ti. a C N `o-� n-E$ "02'%', UP1 ar v t F, u a n' w o E m E g a a o d a' ua � 1(45(3 :tT,' or. 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F, t' g ,.-0...7=2 o z v E ,LL _ E m = a N Y N N_« m „ d « m mEm$N oa¢ ury E > w o `o w 0 o o a 13A FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK 13 /1 110 GliftonLarsonAllen LLP CLAconnect corn CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the entity'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. Auditors'Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' 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. NEfxiA An gidepextntnenberof%lalntanakrd I NT F".12^4 ATHIN AL 13A Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2015, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the General Fund, the Bayshore Gateway Redevelopment Agency special revenue fund, and the Immokalee Redevelopment Agency special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of a Matter As described in Note 19, the County adopted the provisions of Governmental Accounting Standards Board Statement (GASBS) No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27 and the related GASBS No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment of GASB Statement No. 68. As a result of the implementation of GASBS No. 68 and No. 71, the County reported a restatement for the change in accounting principle. The auditors' opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis (MD&A) on pages 4 — 15, the schedules of the county's proportionate share of the net pension liability and of county contributions on page 83, and the other postemployment benefits schedule of funding progress for the retiree health plan on page 84 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The combining and individual fund financial statements and other supplemental information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, and is also not a required part of the basic financial statements. 2 13A Honorable Board of County Commissioners Collier County, Florida Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 10, 2016, on our consideration of the County'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 result 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 County's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida May 10, 2016 3 13A MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30,2015. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i-v of this report. Financial Highlights ■ Collier County's assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2015 by $2,439,522,571. Of this amount, $178,236,493 represents unrestricted net position and may be used to meet future County obligations. ■ The County's total net position decreased by $81,621,204 when compared to fiscal year 2014. The overall decrease includes adjustments that reduced the beginning net position by $160,945,771 as a result of adopting Governmental Accounting Standards Board (GASB) Statement No.68,Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Offsetting the effect of this adjustment was a $61,910,320 increase from governmental activities and a $17,414,247 increase resulting from business-type activities. ■ As of September 30, 2015 Collier County's governmental fund financial statements showed combined ending fund balances of $412,533,879, an increase of $43,754,453 over the previous fiscal year. Of the total combined ending governmental fund balance,$54,488,531 is reported as unassigned. ■ The General Fund reported an unassigned fund balance of $55,002,184 at September 30, 2015, a decrease in unassigned General Fund balance of $2,778,169 when compared to September 30, 2014. ■ Total face value of bonded debt, notes,outstanding loans and capital leases owed by Collier County decreased by$32,406,904 during fiscal year 2015,with a decrease in governmental activities debt of $18,124,949 and a decrease in the business-type activities debt of $14,281,955. In September of 2015,the Collier County Water and Sewer District issued the Series 2015 County Water and Sewer Bond to advance refund a portion of the Series 2006 Collier County Water and Sewer Revenue Bonds. Additional information on debt activity can be found in Note 6 to the financial statements beginning on page 53. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements. Collier County's basic financial statements include government-wide and fund financial statements, as well as notes to the basic financial statements. This report also contains a statistical section, single audit and other supplementary information in addition to the basic financial statements. Government-Wide Financial Statements Government-wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19 of this report. 4 1 3 A The Statement of Net Position shows the financial position of Collier County as of September 30, 2015. The statement shows the County's assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources,with the difference being reported as net position. Changes in net position are useful indicators of financial condition. The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities),from business-type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business-type activities in Collier County include water and sewer, solid waste collections, airport operations,transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with financial legal requirements. The funds of the County can be divided into the following three categories:governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities reported under the government-wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources,as well as balances of expendable resources available at the end of the fiscal year,on a near term basis. As such,these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's near term financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government-wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County's statements include three major funds,the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies. While there are many smaller governmental funds under Collier County management,they are aggregated in a total column named "other governmental funds". Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to 5 13A demonstrate compliance with this budget. Budgetary comparison schedules for any non-major governmental fund required to adopt an annual budget is presented in the combining statements presented elsewhere in this report. Proprietary funds Collier County maintains two different types of proprietary funds, enterprise and internal service,which are reflected on pages 29 to 33 of this report. Enterprise funds report,with more detail,the same functions presented as business-type activities in the government-wide financial statements for water and sewer, solid waste disposal, emergency medical services,transit and the airport authority. The Collier County Water and Sewer District Fund and the Solid Waste Disposal Fund are presented individually as major funds. Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government-wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds are presented on page 34 of this report. All of the County's fiduciary funds are agency funds. The accounting used for agency funds is based on the concept that assets equal liabilities when the government is acting in a fiduciary capacity. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government-wide and fund financial statements. The notes appear on pages 35 to 80 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 87. This section contains combining balance sheets and statements of revenues,expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position for enterprise funds. Also included are combining financial statements for internal service and agency funds. Additional information about the County,which may be of interest to the reader,can be found under the Statistical and Single Audit sections of this report. The statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial Assistance during the fiscal year and presents grant compliance information as well as auditor reports. 6 13A 3 Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by$2,439,522,571 as of the fiscal year ending September 30, 2015 for Collier County. Positive balances were reported in all categories of net position in the governmental and business-type activities for fiscal year 2015, as well as fiscal year 2014. Collier County's net position at September 30, 2015 decreased by $176,816,638 for unrestricted net position and increased $76,596,608 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County's ongoing obligations. The implementation of GASB Statements No. 68 and 71, related to pensions, had a significant impact on the reporting of the County's long term liabilities and net position for both governmental and business- type activities. These statements require the County to record its proportionate share of the long term liability and deferred inflows and outflows associated with the Florida Retirement System's defined pension benefit plan and the retiree health insurance subsidy program. The impact of this implementation should not be considered,solely,as evidence of financial difficulties. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 79.2% of net position as of September 30,2015,compared to 75.9%as of September 30,2014. During fiscal year 2015, the County's net investment in capital assets increased by$18,598,826. Capital assets are used to provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County's net position and changes in net position for the fiscal years ended September 30, 2014 and 2015,shown in condensed form: Collier County's Schedule of Net Position (in millions) Total Business-type Percentage Governmental Activities Activities Total Change 2015 2014 2015 2014 2015 2014 2014-2015 Current and other assets $ 509.9 $ 466.2 $ 239.4 $ 233.7 $ 749.3 $ 699.9 7.1% Capital assets,net 1,571.2 1,581.9 910.3 919.5 2,481.5 2,501.4 (0.8%) Total assets 2,081.1 2,048.1 1,149.7 1,153.2 3,230.8 3,201.3 0.9% Deferred outflows of resources 41.7 14.7 10.8 4.8 52.5 19.5 169.2% Long-term liabilities 490.9 379.7 211.0 197.4 701.9 577.1 21.6% Current liabilities 81.1 82.2 34.1 40.4 115.2 122.6 (6.0%) Total liabilities 572.0 461.9 245.1 237.8 817.1 699.7 16.8% Deferred inflows of resources 22.2 - 4.5 - 26.7 - 100.0% Net position: Net investment in capital assets 1,217.2 1,207.8 714.2 705.1 1,931.4 1,912.9 1.0% Restricted 298.3 223.5 31.6 29.7 329.9 253.2 30.3% Unrestricted 13.1 169.6 165.1 185.4 178.2 355.0 (49.8%) Total net position $ 1,528.6 $ 1,609.9 $ 910.9 $ 920.2 $ 2,439.5 $ 2,521.1 (3.2%) 7 13A Collier County's Schedule of Changes in Net Position (in millions) Total Business-type Percentage Governmental Activities Activities Total Change 2015 2014 2015 2014 2015 2014 2014-2015 Revenues Program revenues: Fines,fees and charges for services $ 73.5 $ 68.0 $ 173.2 $ 157.4 $ 246.7 $ 225.4 9.4% Operating grants and contributions 35.5 31.4 5.1 3.0 40.6 34.4 18.0% Capital grants and contributions 30.0 28.9 21.2 30.7 51.2 59.6 (14.1%) General revenues: Property taxes 259.8 244.4 - - 259.8 244.4 6.3% Other taxes and shared revenues 97.2 91.0 - - 97.2 91.0 6.8% Interest income 5.1 2.6 2.2 1.3 7.3 3.9 87.2% Miscellaneous 17.5 13.3 0.1 0.1 17.6 13.4 31.3% Total revenues 518.6 479.6 201.8 192.5 720.4 672.1 7.2% Expenses General government 93.7 92.2 - - 93.7 92.2 1.6% Public safety 174.9 177.3 - - 174.9 177.3 (1.4%) Physical environment 22.8 17.0 - - 22.8 17.0 34.1% Transportation 70.3 71.6 - - 70.3 71.6 (1.8%) Economic environment 9.3 9.3 - - 9.3 9.3 0.0% Human services 13.5 12.8 - - 13.5 12.8 5.5% Culture and recreation 45.1 41.6 - - 45.1 41.6 8.4% Interest on long-term debt 12.9 12.7 - - 12.9 12.7 1.6% Water and sewer - - 122.8 112.6 122.8 112.6 9.1% Solid waste - - 36.4 33.8 36.4 33.8 7.7% Airport authority - - 4.8 3.8 4.8 3.8 26.3% Mass transit - - 10.4 10.3 10.4 10.3 1.0% Emergency medical services - - 24.1 23.2 24.1 23.2 3.9% Total expenses 442.5 434.5 198.5 183.7 641.0 618.2 3.7% Increase in net position before net transfers 76.1 45.1 3.3 8.8 79.4 53.9 47.3% Transfers,net (14.2) (13.2) 14.2 13.2 - - - Change in net position 61.9 31.9 17.5 22.0 79.4 53.9 47.3% Net position-beginning 1,600.9 1,573.3 920.2 898.6 2,521.1 2,471.9 2.0% Restatement of net position (134.2) (4.3) (26.8) (0.4) (161.0) (4.7) 3325.5% Net position-ending $ 1,528.6 $ 1,600.9 $ 910.9 $ 920.2 $ 2,439.5 $ 2,521.1 (3.2%) 8 Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues,such as property taxes, must be used to the extent that the fee, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenditures followed by general government. Revenues and Expenses Governmental Activities Fiscal Year 2015 200 180 160 140 120 — — N c 100 80 60 40 20 Fec $ems Fec c ;,, �`o� `�oc oJeCs ,\goo acyet �ce.<.° �``a ec sac oNe6s MJF Jteaca C� •o 1/45' 0)i> L ['Revenues o Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by fines,fees and charges for services. Revenue by Type Governmental Activities Fiscal Year 2015 TouristTaxes Other Income 4% 18% Sales Taxes 7% Gas Taxes 4% Capital Grants and Contributions Property Taxes 6% 50% Operating Grants and Contributions 7% Fines,Fees and Charges for Services 14% 9 Revenues and expenses are shown by business-type activity. The Water and Sewer system is the largest business-type activity followed by the Solid Waste system. Revenues and Expenses Business-type Activities Fiscal Year 2015 160 140 120 '//f/ 100 //' 0 80 60 40 !/ _ 20 '�• / Water and Sewer Solid Waste Airport Authority Mass Transit Emergency Medical Services Revenues 0 Expenses Revenues for business-type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by capital grants and contributions. Revenue by Type Business-type Activities Fiscal Year 2015 Capital Grants and Contributions 10% OperatingGrants and Contributions 3% Other Income 1% Fines,Fees and Charges for Services 86% 10 1 3 A Governmental Activities The current year increase in the net position of governmental activities amounted to $61,910,320, an increase of 4.2%when compared to the previous year's net position as restated. The previous fiscal years' increase in net position was 2.0%. The current years' increase is mainly due to the following: ■ Overall, revenues related to governmental activities increased by 8.1%,or$38,875,407 while expenses only increased by 1.8%,or$7,922,974. ■ Governmental activities revenues increased primarily due to an increase in total ad valorem taxes collected in fiscal year 2015 of $15,374,667 when compared to fiscal year 2014. In addition, Half Cent Sales Tax and Tourist Development Tax collections increased a combined 8.8%over fiscal year 2014,or$4,837,933. Permit fees,included in fines,fees and charges for services increased by 20.2%,or$2,583,043,over the same period. ■ Governmental activities expenses increased primarily due to an increase in the physical environment functional area. Physical environment expenses increased predominately due to expenses related to underground conversion of electrical utilities in the Vanderbilt Beach area and beach renourishment projects associated with Tropical Storm Debbie. Business-type Activities Increases in net position related to business-type activities amounted to $17,414,247 in the aggregate, representing a 1.9%increase over the previous year's net position as restated. The previous fiscal years' increase in net position was 2.5%. The current years'increase is mainly due to the following: ■ The majority of the increase,or$8,055,362,can be attributed to the Collier County Water and Sewer District(District). The increase in the District's net position is largely due to a 9.0%rate increase that went in to effect October 1, 2014. Water and sewer impact fees, charged to new construction, increased by 14.4%when compared to fiscal year 2014. ■ Solid waste contributed $2,419,255 to the overall increase in business-type activities net position. User charges increased by $3,768,581, primarily a result of a 7.0% increase in residential and commercial municipal waste tonnage and construction and demolition waste being accepted into the Naples landfill during fiscal year 2015. Operating costs increased primarily due to an increase in landfill operating costs. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Fund, Debt Service Funds and Capital Project Funds. As of September 30, 2015, Collier County governmental funds reported combined fund balances of $412,533,879, an increase of$43,754,453 when compared to prior year combined fund balances. The governmental funds had non-spendable fund balances of $6,658,136 consisting of inventory, prepaid items, notes receivable and General Fund and Other Governmental Fund advances to other funds. The restricted fund balance was $293,625,771 and consists of monies whose expenditure is externally 11 1 3 A constrained by grantors, creditors, binding law or enabling legislation. Of the remaining$112,249,972 in fund balance, $25,662,659 is classified as committed, $32,098,782 is recorded as assigned and $54,488,531 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2015: • The General Fund is the primary operating fund of Collier County. At September 30, 2015, total fund balance in the General Fund was $60,191,643, of which $55,002,184 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 16.9%. The total fund balance decreased by $18,407,167 or 23.4%, compared to the September 30, 2014 total fund balance. The decrease in total fund balance was primarily the result of an increase in General Fund operating transfers to Other Governmental Funds when compared to fiscal year 2014. • The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle. During fiscal year 2015 the Bayshore Gateway Community Redevelopment Agency collected $1,009,800 in tax increment revenues. In addition,miscellaneous revenues of$421,170,consisting mostly of rents and a$152,000 non- refundable deposit related to a potential real estate sale, were received. Operating expenditures of$489,557 were associated with the Bayshore Gateway Triangle Community Redevelopment Agency. • The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2015, the Immokalee Community Redevelopment Agency collected $356,000 in tax increment revenues and was reimbursed $2,882,743 primarily for stormwater improvements in downtown Immokalee. In addition, grant revenues of$20,645 were received for transportation improvements. Capital expenditures of$2,793,688 were made for stormwater and transportation improvements with a further$456,551 being spent on associated operating costs. Proprietary funds Proprietary fund statements provide the same information as the business-type activities in the government-wide financial statements, but in greater detail,and on a fund basis for enterprise funds. At September 30, 2015,total net position amounted to$909,442,595 for enterprise funds, as compared to$891,761,778,as restated,as of September 30,2014,an increase of$17,680,817. Net position changes as a result of operations, non-operating revenues and expenses, capital contributions and grants and donations. The Collier County Water and Sewer District's activities represent the largest share of the increase in the business-type net position. For the year ended September 30, 2015, the Collier County Water and Sewer District reported capital grants and contributions of$17,352,735,which consists of water and sewer impact fees of$12,647,736, $4,698,719 in developer infrastructure contributions and other contributions of$6,280. Net Operating Income/(Loss) 2015 2014 County Water and Sewer $ 1,698,445 $ 748,899 Solid Waste Disposal 2,659,868 1,420,189 Non-major enterprise funds (21,542,395) (23,394,859) Total $ (17,184,082) $ (21,225,771) 12 The Collier County Water and Sewer District's net operating income increased by $949,546 when compared to fiscal year 2014. The increase in net operating income was primarily the result of a 9.0% increase in overall water and sewer rates,effective October 1, 2014. County Water and Sewer payments in lieu of taxes paid to the General Fund of $5,203,400 were reclassified from operating expense to operating transfers for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. Total operating expenses, including depreciation, increased by $7,770,784, or 7.3%, when compared to fiscal year 2014. The Solid Waste Disposal fund's net operating income increased by$1,239,679 when compared to fiscal year 2014. The increase in net operating income was primarily the result of a 7.0%increase in residential and commercial municipal waste tonnage and construction and demolition waste being accepted into the Naples landfill during fiscal year 2015. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of$210,600 were reclassified from operating expense to operating transfers for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered.Total operating expenses, including depreciation,increased by$2,512,740,or 7.4%,when compared to fiscal year 2014. Capital Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business-type activities amounted to $2,481,507,654, net of accumulated depreciation. This investment in capital assets, both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year, net of depreciation, decreased by $19,904,678 when compared to the previous year. There was a decrease in the governmental activities net capital assets of$10,719,890,or.7%,while the business-type activities capital assets decreased by $9,184,788, or 1.0%. The major capital asset activities during the current and previous fiscal years are as follows: ■ Capitalization as construction in progress of $41,783,774 for governmental activity related costs including$9,158,445 related to US 41 and Collier Boulevard intersection improvements, $4,434,172 for improvements to Collier Boulevard from Golden Gate Boulevard to Green Boulevard and $2,316,458 for improvements to Golden Gate Boulevard from Wilson Boulevard to Everglades Boulevard. Stormwater improvements of $4,133,696 and $2,381,074 were capitalized relating to County Barn Road and downtown Immokalee, respectively. A total of $6,147,322 was spent on the purchase of a new Supervisor of Election's building and renovation of the Collier Jail's heating,ventilation and air conditioning system. The remaining$13,212,607 is related to$5,009,493 in other transportation projects, $3,434,079 in other physical environment projects, $2,162,691 in culture and recreation projects and$2,606,344 in other capital projects. ■ The business-type activities capitalized $31,709,969 of construction in process during fiscal year 2015 including $2,083,330 for utility force main transmission system improvements, $2,299,219 for joint utility projects with the Florida Department of Transportation, $2,119,980 for well and plant power systems improvements and $3,190,815 for distribution system improvements. In addition,$1,214,392 was related to the solid waste fund's ongoing project to construct hammerheads(turnarounds)on rural roads to facilitate trash pickup. The remaining $20,802,233 was made up of $15,186,482 in other County Water and Sewer 13 13A projects, $343,888 in other airport projects, $886,619 in solid waste projects, $766,325 in Emergency Medical Services projects and$3,618,919 in Mass Transit. • Total purchases of land and non-depreciable assets were $5,025,821 for fiscal year 2015, compared to$11,531,337 for fiscal year 2014. Additional information regarding Collier County's capital assets can be found in Note 5 beginning on page 52 of this report. Debt Administration At September 30, 2015, Collier County had total bonded debt, notes and loans, net of premiums of $552,212,685, a decrease of $35,339,050 from the previous year. The following table illustrates the balances of all bonds, notes and loans, net,for the fiscal years ended September 30, 2015 and 2014: Outstanding Debt 2015 2014 Limited General Obligation Bonds,net $ 3,368,515 $ 3,780,677 Revenue Bonds,net 437,967,928 463,677,586 State Revolving Fund Loans 104,410,895 112,943,672 Miscellaneous Notes 6,465,347 7,149,800 Total $ 552,212,685 $ 587,551,735 On September 30, 2015 the Collier County Water and Sewer District issued the Series 2015 Water and Sewer Refunding Revenue Bond in the par amount of$17,687,000 for the purpose of advance refunding a portion of the District's Series 2006 Revenue Bonds. The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long-term debt can be found in Note 6 beginning on page 53 of this report. General Fund Budgetary Highlights During the current fiscal year, the Board of County Commissioners approved a $2,826,645 increase in General Fund expenditure appropriations between the original and the final amended budget. Significant variances between the original budget and the final amended budget are listed below: • $211,900 increase in charges for services and Clerk's overall budget to recognize additional revenues received and provide for additional data processing software and minor computer equipment. • $442,201 increase in County Attorney operating due to re-budgeting of lapsed appropriations from the previous fiscal year. • $340,941 increase in charges for services and Facilities Management operating related to an increase in maintenance requests. • $1,334,000 increase in charges for services and Sheriff's agency personal services related to special detail duties. • $164,060 increase in Economic Development operating due to re-budgeting of lapsed appropriations from the previous fiscal year as well as additional funding for a Soft Landing Accelerator project. 14 I 3 A Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2015. Tax revenues were under budget by $7,803,369 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4%to 1%,depending on the date of payment. General Fund general government expenditures were under budget primarily due to $1,298,463 in unspent budget related to goods and services contracted for in 2015 that had not been received as of September 30, 2015 as well as an effort to reduce spending in all departments. Economic Factors and Year 2016 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2016 budget: ■ A 7.5%increase in countywide taxable property values. ■ Millage neutral General Fund and Unincorporated Area General Fund tax rates. ■ Expected year on year increases in sales tax and state shared revenues of 2.0% and 2.6%, respectively. ■ No new fees or service charges to Collier County residents. ■ Expected expanded position requests to meet the increase in service expectations. ■ Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff and Tax Collector). During fiscal year 2015, the General Fund unassigned fund balance decreased by $2,778,169 to $55,002,184. As of January 22, 2016, $48,509,000 of the fiscal year 2015 unassigned fund balance has been appropriated as carryforward for fiscal year 2016,with$27,890,800 budgeted in reserves. Contact Information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court Department of Finance and Accounting 3299 Tamiami Trail East,Suite#403 Naples, Florida 34112-5746 Our office may also be contacted via the internet at www.collierclerk.com. 15 1 3 A COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30,2015 Primary Government Governmental Business-type Component Activities Activities Total Units ASSETS Current assets: Cash,cash equivalents and investments $ 176,276,278 $175,718,466 $ 351,994,744 $ 343,675 Cash with fiscal agent 11,704,336 - 11,704,336 - Trade receivables,net 2,294,692 12,521,437 14,816,129 - Special assessments receivable - 30,454 30,454 - Interest receivable 442,463 583,558 1,026,021 - Due from other governments 5,955,077 278,267 6,233,344 - Internal balances (3,216,066) 3,216,066 - - Deposits 56,361 - 56,361 - Inventory 2,456,570 5,840,495 8,297,065 - Prepaid costs 143,769 260,788 404,557 - Restricted assets: Cash,cash equivalents and investments 18,131,927 6,412,410 24,544,337 - Trade receivables,net 1,478,909 69,225 1,548,134 - Notesreceivable 45,612 - 45,612 - Interest receivable 695,634 47,975 743,609 - Due from other governments 24,439,880 4,140,952 28,580,832 - Deposits 1,250 - 1,250 - Inventory for resale 11,951,923 - 11,951,923 - Total current assets 252,858,615 209,120,093 461,978,708 343,675 Noncurrent assets: Restricted assets: Cash,cash equivalents and investments 249,855,487 30,073,608 279,929,095 - Notes receivable 609,564 - 609,564 - Impact fee receivable 4,984,026 - 4,984,026 - Special assessments receivable 5,473 10,118 15,591 - Notes receivable 1,623,781 - 1,623,781 - Unamortized bond insurance 15,570 133,489 149,059 - Capital assets: Land and non-depreciable capital assets 469,069,032 77,564,459 546,633,491 - Depreciable capital assets,net 1,102,106,605 832,767,558 1,934,874,163 - Total noncurrent assets 1,828,269,538 940,549,232 2,768,818,770 - Total assets 2,081,128,153 1,149,669,325 3,230,797,478 343,675 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 13,545,140 4,843,433 18,388,573 - Deferred outflows of resources related to pensions 28,139,705 5,993,638 34,133,343 - Total deferred outflows of resources $ 41,684,845 $ 10,837,071 $ 52,521,916 $ - The notes to the financial statements are an integral part of this statement. 16 1 3 A Primary Government Governmental Business-type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 11,854,965 $ 11,548,576 $ 23,403,541 $ - Wages payable 8,171,109 2,827,581 10,998,690 - Retainage payable 465,898 826,728 1,292,626 - Due to other governments 3,179,545 176,497 3,356,042 - Self-insurance claims payable 5,703,441 - 5,703,441 - Compensated absences 8,206,198 2,075,855 10,282,053 - Capital lease obligations 595,162 283,358 878,520 - Unearned revenue 13,922 59,217 73,139 - Interest payable 5,201,901 1,603,702 6,805,603 - Bonds and loans payable 20,161,289 6,783,792 26,945,081 - Liabilities payable from restricted assets: Accounts payable 9,171,859 1,338,442 10,510,301 - Wages payable 1,862,254 3,668 1,865,922 - Retainage payable 1,493,880 287,769 1,781,649 - Refundable deposits 1,325,933 88,778 1,414,711 - Notes payable - 64,255 64,255 - Due to other governments 3,731,252 68,553 3,799,805 - Unearned revenue 1,035 75,368 76,403 - Bonds and loans payable - 5,971,084 5,971,084 - Total current liabilities 81,139,643 34,083,223 115,222,866 - Noncurrent liabilities: Self-insurance claims payable 1,255,993 - 1,255,993 - Compensated absences 13,584,127 518,965 14,103,092 - Capital lease obligations 924,333 790,609 1,714,942 - Landfill post-closure liability - 1,905,976 1,905,976 - Net OPEB obligation 2,994,152 - 2,994,152 - Net pension liability 134,200,768 26,451,457 160,652,225 - Bonds and loans payable,net 337,886,077 181,346,188 519,232,265 - Total noncurrent liabilities 490,845,450 211,013,195 701,858,645 - Total liabilities 571,985,093 245,096,418 817,081,511 - DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 22,183,538 4,531,774 26,715,312 - NET POSITION Net investment in capital assets 1,217,175,435 714,239,414 1,931,414,849 - Restricted for: Growth related capital expansion 83,591,428 20,820,502 104,411,930 - Transportation capital projects 31,912,751 - 31,912,751 - Tourist development 59,643,088 - 59,643,088 - Conservation 33,843,610 - 33,843,610 - Community redevelopment 12,448,739 - 12,448,739 - Grants 7,690,204 1,320,937 9,011,141 - Debt service 5,370,395 9,069,663 14,440,058 - Nonexpendable purposes-other 2,555,691 - 2,555,691 - Special revenues-other 61,304,221 - 61,304,221 - Renewal and replacement - 300,000 300,000 - Unrestricted 13,108,805 165,127,688 178,236,493 343,675 Total net position $1,528,644,367 $910,878,204 $2,439,522,571 $ 343,675 17 COLLIER COUNTY, FLORIDA 13 STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Program Revenues Fees,Fines and Operating Capital Charges for Grants and Grants and FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions Primary Government: Governmental Activities: General government $ 93,643,877 $ 34,240,147 $ 2,615,827 $ 2,348,429 Public safety 174,874,148 25,227,164 5,542,670 3,100,567 Physical environment 22,812,939 819,750 3,522,778 2,119,602 Transportation 70,295,765 1,093,847 14,716,315 13,324,636 Economic environment 9,308,791 2,883,453 6,451,771 37,887 Human services 13,499,287 534,155 2,386,101 124,905 Culture and recreation 45,116,881 8,684,562 285,378 8,929,822 Interest and fiscal charges 12,912,451 - - - Total governmental activities 442,464,139 73,483,078 35,520,840 29,985,848 Business-type Activities: Water and sewer 122,857,731 116,644,674 35,674 17,341,213 Solid waste 36,410,616 39,120,692 111,351 - Airport authority 4,770,853 3,349,767 - 368,842 Mass transit 10,416,433 1,719,206 4,788,094 3,455,290 Emergency medical services 24,094,317 12,327,543 206,588 - Total business-type activities 198,549,950 173,161,882 5,141,707 21,165,345 Total primary government 641,014,089 246,644,960 40,662,547 51,151,193 Component Units: Industrial Development Authority $ 15 $ 32,500 $ - $ - Health Facilities Authority 12 75,000 - - Housing Finance Authority 85 32,905 - - Total component units $ 112 $ 140,405 $ - $ - General revenues: Property taxes Gas taxes Sales taxes Tourist taxes Communications services tax State revenue sharing Other taxes Interest income Miscellaneous Transfers,net Total general revenues and transfers Change in net position Net position-beginning Restatement of net position due to implementation of GASB 68 Net position-beginning,as restated Net position-ending The notes to the financial statements are an integral part of this statement. 18 1 3 A Net(Expense)Revenue and Changes in Net Position Primary Government Governmental Business-type Component Activities Activities Total Units $ (54,439,474) $ - $ (54,439,474) $ - (141,003,747) - (141,003,747) - (16,350,809) - (16,350,809) - (41,160,967) - (41,160,967) - 64,320 - 64,320 - (10,454,126) - (10,454,126) - (27,217,119) - (27,217,119) - (12,912,451) - (12,912,451) - (303,474,373) - (303,474,373) - 11,163,830 11,163,830 - 2,821,427 2,821,427 - (1,052,244) (1,052,244) - (453,843) (453,843) - - (11,560,186) (11,560,186) - 918,984 918,984 - (303,474,373) 918,984 (302,555,389) - $ 32,485 74,988 32,820 140,293 259,778,922 - 259,778,922 - 19,546,741 - 19,546,741 - 38,572,787 - 38,572,787 - 21,188,190 - 21,188,190 - 4,855,279 - 4,855,279 - 10,589,362 - 10,589,362 - 2,467,269 - 2,467,269 - 5,068,585 2,209,097 7,277,682 78 17,509,698 94,026 17,603,724 - (14,192,140) 14,192,140 - - 365,384,693 16,495,263 381,879,956 78 61,910,320 17,414,247 79,324,567 140,371 1,600,910,225 920,233,550 2,521,143,775 203,304 (134,176,178) (26,769,593) (160,945,771) - 1,466,734,047 893,463,957 2,360,198,004 203,304 $ 1,528,644,367 $ 910,878,204 $ 2,439,522,571 $ 343,675 19 1 COLLIER COUNTY, FLORIDA 3 BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds ASSETS Cash,cash equivalents and investments $ 64,792,690 $ 758,649 $ 229,191 $328,933,797 $394,714,327 Cash with fiscal agent - - - 11,704,336 11,704,336 Receivables: Interest 168,533 1,771 806 856,405 1,027,515 Trade,net 634,167 - 236 1,849,254 2,483,657 Notes 1,623,781 - - 655,176 2,278,957 Impact fee - - - 4,984,026 4,984,026 Special assessments - - - 5,473 5,473 Due from other funds 5,218,119 - - 15,125,957 20,344,076 Due from other governments 5,392,906 - - 24,974,205 30,367,111 Deposits 4,628 - 625 1,250 6,503 Inventory for resale - 11,722,190 - 229,733 11,951,923 Inventory 1,144,635 - - 922,450 2,067,085 Advances to other funds 711,800 - - 528,901 1,240,701 Prepaid costs 66,169 - - 77,600 143,769 Total assets $ 79,757,428 $ 12,482,610 $ 230,858 $390,848,563 $483,319,459 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 7,499,398 $ 21,290 $ 3,525 $ 12,664,573 $ 20,188,786 Wages payable 6,461,737 10,236 14,395 3,153,816 9,640,184 Due to other funds 871,227 - 3,462 18,425,078 19,299,767 Due to other governments 1,397,180 845 - 5,481,949 6,879,974 Unearned revenue 485 - - 7,528 8,013 Refundable deposits 1,261,598 1,500 - 62,835 1,325,933 Retainage payable - - - 1,959,778 1,959,778 Advances from other funds - - 268,901 4,052,080 4,320,981 Total liabilities 17,491,625 33,871 290,283 45,807,637 63,623,416 Deferred inflows of resources: Unavailable revenue 2,074,160 - - 5,088,004 7,162,164 Fund balances(deficit): Nonspendable 3,546,385 - - 3,111,751 6,658,136 Restricted 344,611 12,448,739 - 280,832,421 293,625,771 Committed - - - 25,662,659 25,662,659 Assigned 1,298,463 - - 30,800,319 32,098,782 Unassigned 55,002,184 - (59,425) (454,228) 54,488,531 Total fund balances(deficit) 60,191,643 12,448,739 (59,425) 339,952,922 412,533,879 Total liabilities,deferred inflows of resources and fund balances(deficit) $ 79,757,428 $ 12,482,610 $ 230,858 $390,848,563 $483,319,459 The notes to the financial statements are an integral part of this statement. 20 COLLIER COUNTY,FLORIDA 1 3 A RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30,2015 Differences in amounts reported for governmental activities in the statement of net position on pages 16-17: Fund balances-total governmental funds $ 412,533,879 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and other non-depreciable assets $ 411,580,042 Construction in progress 57,488,990 Depreciable assets,net of$805,098,834 in accumulated depreciation 1,086,879,170 1,555,948,202 Certain long-term assets are not financial resources and therefore are not reported in the governmental funds-unamortized bond insurance premium. 15,570 Certain revenues will be collected after year-end,but are not available to pay for the current period's expenditures,and therefore are reported as deferred inflows in the funds. 7,162,164 Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in the governmental funds,but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30,2015 are: Accrued interest on bonds $ (5,201,901) Bonds and notes payable (341,276,092) Capital lease obligations (1,519,495) Compensated absences (21,288,624) Pension liability (131,485,294) Unamortized premium (16,771,274) (517,542,680) Unamortized deferred charges on refunding 13,545,140 Pension deferred outflows 27,566,066 Pension deferred inflows (21,789,491) Internal service funds are used by the County to charge self-insurance,fleet management and information technology services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position is: 51,205,517 Total net position-governmental activities $1,528,644,367 The notes to the financial statements are an integral part of this statement. 21 COLLIER COUNTY, FLORIDA 13 A STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Revenues: Taxes $221,480,290 $ 1,009,800 $ 356,000 $ 77,495,048 $300,341,138 Licenses,permits and impact fees 309,500 - 710 51,008,451 51,318,661 Intergovernmental 51,121,618 - 20,645 41,676,002 92,818,265 Charges for services 16,277,577 - 2,882,743 18,011,504 37,171,824 Fines and forfeitures 434,229 - - 2,432,366 2,866,595 Interest income 1,086,564 7,719 3,288 3,508,214 4,605,785 Special assessments - - - 3,131,864 3,131,864 Miscellaneous 3,487,550 421,170 - 12,154,314 16,063,034 Total revenues 294,197,328 1,438,689 3,263,386 209,417,763 508,317,166 Expenditures: Current: General government 53,927,908 - - 24,218,751 78,146,659 Public safety 140,857,023 - - 26,930,683 167,787,706 Physical environment 718,830 - - 15,438,233 16,157,063 Transportation 251,022 - - 36,741,483 36,992,505 Economic environment 1,073,596 489,557 456,551 7,139,407 9,159,111 Human services 10,001,930 - - 3,148,589 13,150,519 Culture and recreation 14,243,709 - - 23,278,994 37,522,703 Debt service: Principal 570,323 - - 19,469,106 20,039,429 Interest - - - 13,554,708 13,554,708 Fiscal charges - - - 21,337 21,337 Capital outlay 9,351,915 - 2,793,688 50,040,401 62,186,004 Total expenditures 230,996,256 489,557 3,250,239 219,981,692 454,717,744 Excess(deficiency)of revenues over(under)expenditures 63,201,072 949,132 13,147 (10,563,929) 53,599,422 Other financing sources(uses): Capital leases 1,914,480 - - - 1,914,480 Sale of capital assets 570,843 - - 24,294 595,137 Insurance proceeds 67,208 - - 312,102 379,310 Transfers in 10,644,487 136,800 76,000 185,168,723 196,026,010 Transfers out (94,805,257) (905,700) (192,708) (112,856,241) (208,759,906) Total other financing sources(uses) (81,608,239) (768,900) (116,708) 72,648,878 (9,844,969) Net change in fund balances (18,407,167) 180,232 (103,561) 62,084,949 43,754,453 Fund balances at beginning of year 78,598,810 12,268,507 44,136 277,867,973 368,779,426 Fund balances(deficit)at end of year $ 60,191,643 $ 12,448,739 $ (59,425) $339,952,922 $412,533,879 The notes to the financial statements are an integral part of this statement. 22 COLLIER COUNTY,FLORIDA 1 A RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Differences in amounts reported for governmental activities in the statement of net position on pages 18-19: Net change in fund balances-total governmental funds $ 43,754,453 Governmental funds report capital outlays as expenditures. However,in the statement of net positiot the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay $ 62,186,004 Depreciation expense (72,123,697) (9,937,693) Donations of capital assets are not financial resources to governmental funds,but receiving donated assets increases net position in the statement of net position. 1,212,136 Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. 18,053 In the statement of net position,the gain or loss on the sale of capital assets is reported. However,in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net position differs from the change in fund balance by the net book value of assets disposed. (470,738) Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. (46,259) Debt proceeds provide current financial resources to governmental funds,but issuing debt increases long-term liabilities in the statement of net position. Proceeds from capital leases (1,914,480) Repayment of principal on long-term debt is an expenditure in governmental funds,but a reduction of long-term liabilities in the statement of net position. Bond and loan principal payments $ 19,414,518 Payments on capital lease obligations 624,911 20,039,429 Certain amounts 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. Compensated absences $ 3,080,671 Pension expense 5,585,576 Accrued interest on bonds and loans 341,628 Amortization of bond insurance premium (9,385) Amortization of deferred charges on refunding (1,175,185) Amortization of premium 1,506,536 9,329,841 The net revenues of internal service funds are reported with governmental activities. (74,422) Change in net position-governmental activities $ 61,910,320 The notes to the financial statements are an integral part of this statement. 23 COLLIER COUNTY,FLORIDA 13 GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Original Final Budget Budget Actual Variance Revenues: Taxes $229,290,200 $229,290,200 $221,486,831 $ (7,803,369) Licenses,permits and impact fees 280,900 280,900 309,500 28,600 Intergovernmental 44,585,000 44,585,000 51,121,618 6,536,618 Charges for services 17,529,146 19,419,670 16,277,577 (3,142,093) Fines and forfeitures 470,200 470,200 434,229 (35,971) Interest income 452,600 452,600 932,265 479,665 Miscellaneous 7,385,900 7,447,060 10,431,350 2,984,290 Total revenues 299,993,946 301,945,630 300,993,370 (952,260) Expenditures: Current: General government Board of County Commissioners personal services 1,069,700 1,070,200 1,047,704 22,496 Board of County Commissioners operating 83,900 83,900 54,559 29,341 County manager administrative personal services 681,400 693,800 689,017 4,783 County manager administrative operating 40,900 40,900 29,482 11,418 Budget and management personal services 669,700 657,300 562,848 94,452 Budget and management operating 67,000 97,100 87,357 9,743 Administrative services personal services 2,427,800 2,397,200 2,301,015 96,185 Administrative services operating 159,300 190,200 165,456 24,744 Administrative services capital outlay 1,500 16,500 16,497 3 Human resources administration personal services 1,192,400 1,215,973 1,172,865 43,108 Human resources administration operating 300,200 300,200 256,402 43,798 Clerk of the Circuit Court personal services 6,987,800 6,754,200 6,528,467 225,733 Clerk of the Circuit Court operating 1,892,700 2,454,300 2,234,866 219,434 Clerk of the Circuit Court capital outlay 343,100 227,000 226,710 290 Property Appraiser personal services 5,174,383 5,174,383 5,026,460 147,923 Property Appraiser operating 1,549,810 1,549,810 1,572,042 (22,232) Property Appraiser capital outlay 25,000 25,000 121,281 (96,281) Tax Collector personal services 10,040,774 10,040,774 9,708,287 332,487 Tax Collector operating 2,036,647 2,020,178 1,744,766 275,412 Tax Collector capital outlay 29,522 45,991 45,270 721 County attorney personal services 2,197,300 2,212,300 2,191,762 20,538 County attorney operating 367,500 809,701 393,415 416,286 County attorney capital outlay 3,000 3,000 2,268 732 Natural resource planning operating 106,400 106,400 100,100 6,300 Circuit court costs operating 34,700 34,700 33,593 1,107 County court cost operating 22,800 22,800 21,961 839 State Attorney operating 272,500 272,500 264,968 7,532 Public Defender operating 210,700 210,700 205,986 4,714 Other general administrative personal services 200,000 178,100 38,994 139,106 Other general administrative operating 6,733,200 6,599,897 4,619,704 1,980,193 Facilities management personal services 3,846,400 3,846,400 3,789,265 57,135 Facilities management operating 7,917,500 8,258,441 8,191,711 66,730 Facilities management capital outlay 216,800 239,500 239,331 169 Sheriff personal services 2,959,600 2,959,600 3,634,660 (675,060) Sheriff operating 131,700 131,700 78,912 52,788 24 COLLIER COUNTY,FLORIDA 1 3 A GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 1,983,100 1,988,100 1,913,220 74,880 Supervisor of Elections operating 1,282,600 1,229,072 1,134,580 94,492 Supervisor of Elections capital outlay 32,200 73,920 73,915 5 Real property management personal services 658,400 658,400 617,493 40,907 Real property management operating 34,500 34,500 32,901 1,599 Total general government 63,984,436 64,924,640 61,170,090 3,754,550 Public safety Sheriff personal services 114,498,800 115,832,800 113,929,185 1,903,615 Sheriff operating 25,544,100 25,923,873 24,287,764 1,636,109 Sheriff capital outlay 2,036,300 2,036,300 4,871,760 (2,835,460) Emergency management administration personal services 859,400 854,400 824,505 29,895 Emergency management administration operating 566,600 571,600 518,770 52,830 Helicopter operations personal services 813,900 803,900 772,782 31,118 Helicopter operations operating 626,600 627,200 587,749 39,451 Helicopter operations capital outlay - 9,400 3,887 5,513 Medical examiner services operating 1,106,200 1,106,200 1,101,284 4,916 Total public safety 146,051,900 147,765,673 146,897,686 867,987 Physical environment Conservation and resource management personal services 628,600 628,600 597,860 30,740 Conservation and resource management operating 147,300 151,540 120,114 31,426 Conservation and resource management capital outlay 39,000 34,760 34,616 144 Immokalee cemetery operating 3,100 3,100 856 2,244 Total physical environment 818,000 818,000 753,446 64,554 Transportation Alternative transportation modes personal services 237,500 237,500 237,054 446 Alternative transportation modes operating 20,000 20,000 13,968 6,032 Alternative transportation modes capital outlay 34,000 34,000 24,690 9,310 Total transportation 291,500 291,500 275,712 15,788 Economic environment Veterans services personal services 301,400 301,400 294,610 6,790 Veterans services operating 53,900 48,200 36,570 11,630 Veterans services capital - 5,700 5,610 90 Economic development personal services 347,700 347,700 279,610 68,090 Economic development operating 1,148,600 1,312,660 462,806 849,854 Total economic environment 1,851,600 2,015,660 1,079,206 936,454 Human services Health Care Responsibility Act operating 46,100 46,100 21,359 24,741 Domestic animal services personal services 1,992,200 1,992,200 1,903,212 88,988 Domestic animal services operating 725,500 706,700 664,523 42,177 Domestic animal services capital outlay 120,200 139,000 - 139,000 Health department operating 1,577,600 1,604,792 1,271,431 333,361 Health department capital outlay 48,000 20,808 20,360 448 Mental health operating 1,154,200 1,154,200 811,516 342,684 Client assistance personal services 675,400 724,400 706,664 17,736 Client assistance operating 4,562,100 4,475,192 4,099,414 375,778 Client assistance capital outlay 24,000 27,800 27,686 114 Public services division office personal services 526,400 526,400 490,473 35,927 Public services division office operating 31,800 33,444 27,119 6,325 Public services division office capital outlay 2,500 7,856 7,856 - Total human services 11,486,000 11,458,892 10,051,613 1,407,279 (continued) 25 COLLIER COUNTY,FLORIDA 1 3 GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Original Final Budget Budget Actual Variance Culture and recreation Library administration personal services 5,460,500 5,460,500 5,136,126 324,374 Library administration operating 1,495,600 1,491,600 1,447,554 44,046 Library administration capital outlay 82,000 86,000 54,704 31,296 Beach and water park operations personal services 4,299,400 4,273,400 4,014,164 259,236 Beach and water park operations operating 3,962,600 3,914,109 3,640,574 273,535 Beach and water park operations capital outlay 242,500 352,707 310,659 42,048 Total culture and recreation 15,542,600 15,578,316 14,603,781 974,535 Total expenditures 240,026,036 242,852,681 234,831,534 8,021,147 Excess of revenues over expenditures 59,967,910 59,092,949 66,161,836 (8,973,407) Other financing sources(uses): Sale of capital assets 200,000 200,000 570,843 (370,843) Insurance proceeds - 11,757 67,208 (55,451) Transfers in 5,562,079 5,863,152 10,644,487 (4,781,335) Transfers out (77,483,889) (78,179,371) (78,328,083) 148,712 Total other financing sources(uses) (71,721,810) (72,104,462) (67,045,545) (5,058,917) Net change in fund balance (11,753,900) (13,011,513) (883,709) (14,032,324) Fund balance at beginning of year 54,213,300 55,188,913 55,188,913 - Fund balance at end of year S 42,459,400 5 42,177,400 5 54,305,204 5(14,032,324) Reconciliation: Net change in fund balance,budgetary basis $ (883,709) Net change in fair value of investments 154,299 Change in inventory 1,066,044 Equipment purchases for multi-period projects not budgeted (1,350,335) Ad valorem refunds not budgeted (6,541) Advances reclassified to transfers (17,386,925) Net change in fund balance,GAAP basis $ (18,407,167) The notes to the financial statements are an integral part of this statement. 26 13A COLLIER COUNTY,FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Original Final Budget Budget Actual Variance Revenues: Taxes $1,009,800 $1,009,800 $ 1,009,800 $ - Charges for services - 308,740 - (308,740) Interest income 2,000 2,000 6,490 4,490 Miscellaneous 318,500 443,500 421,170 (22,330) Total revenues 1,330,300 1,764,040 1,437,460 (326,580) Expenditures: Economic environment Personal services 257,500 257,500 240,073 17,427 Operating 231,000 240,544 143,446 97,098 Capital outlay - 308,740 - 308,740 Total expenditures 488,500 806,784 383,519 423,265 Excess of revenues over expenditures 841,800 957,256 1,053,941 96,685 Other financing sources(uses): Transfers in 136,800 136,800 136,800 - Transfers out (905,700) (1,030,700) (905,700) (125,000) Total other financing uses (768,900) (893,900) (768,900) (125,000) Net change in fund balance 72,900 63,356 285,041 (28,315) Fund balance at beginning of year 344,800 354,344 354,344 - Fund balance at end of year $ 417,700 $ 417,700 $ 639,385 $ (28,315) Reconciliation: Net change in fund balance,budgetary basis $ 285,041 Net change in fair value of investments 1,229 Change in inventory held for resale (106,038) Net change in fund balance,GAAP basis $ 180,232 The notes to the financial statements are an integral part of this statement. 27 COLLIER COUNTY,FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY 1 3 A STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Original Final Budget Budget Actual Variance Revenues: Taxes $ 356,000 $ 356,000 $ 356,000 $ - Licenses,permits and impact fees - - 710 710 Intergovernmental - 20,645 20,645 - Chargesforservices - 3,149,168 2,882,743 (266,425) Interest income 1,000 1,000 2,756 1,756 Total revenues 357,000 3,526,813 3,262,854 (263,959) Expenditures: Economic environment Personal services - 349,850 267,272 82,578 Operating 506,900 303,763 189,279 114,484 Capital outlay - 3,043,101 2,793,688 249,413 Total expenditures 506,900 3,696,714 3,250,239 446,475 Deficiency of revenues under expenditures (149,900) (169,901) 12,615 182,516 Other financing sources: Transfers in 76,000 344,902 76,000 268,902 Transfers out - (192,708) (192,708) - Total other financing uses 76,000 152,194 (116,708) 268,902 Net change in fund balance (73,900) (17,707) (104,093) 451,418 Fund balance at beginning of year 144,500 144,500 144,500 - Fund balance at end of year $ 70,600 $ 126,793 $ 40,407 $ 451,418 Reconciliation: Net change in fund balance,budgetary basis $ (104,093) Net change in fair value of investments 532 Net change in fund balance,GAAP basis $ (103,561) The notes to the financial statements are an integral part of this statement. 28 1 3 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30,2015 Business-type Activities Enterprise Funds Governmental Activities- County Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds ASSETS Current assets: Cash,cash equivalents and investments $ 141,465,535 $ 23,674,598 $ 10,578,333 $175,718,466 $ 49,549,365 Receivables: Trade,net 10,103,890 904,331 1,513,216 12,521,437 1,289,944 Special assessments 30,454 - - 30,454 - Interest 389,486 167,177 26,895 583,558 110,582 Due from other funds 15,400 56,984 19,022 91,406 255,514 Due from other governments 248,871 - 29,396 278,267 27,846 Deposits - - - - 51,108 Inventory 5,714,483 - 126,012 5,840,495 389,485 Prepaid costs - - 260,788 260,788 - Restricted assets: Cash,cash equivalents and investments 5,930,561 66,927 414,922 6,412,410 - Trade,net 69,225 - - 69,225 - Interest 47,332 - 643 47,975 - Due from other governments - - 4,140,952 4,140,952 - Total current assets 164,015,237 24,870,017 17,110,179 205,995,433 51,673,844 Noncurrent assets: Restricted assets: Cash,cash equivalents and investments 30,073,608 - - 30,073,608 - Receivables: Special assessments 10,118 - - 10,118 - Advances to other funds 1,504,132 1,576,148 - 3,080,280 - Unamortized bond insurance 133,489 - - 133,489 - Capital assets: Land and nondepreciable capital assets 57,789,865 7,774,034 12,000,560 77,564,459 - Depreciable capital assets,net 757,673,076 22,428,263 52,666,219 832,767,558 15,227,435 Total noncurrent assets 847,184,288 31,778,445 64,666,779 943,629,512 15,227,435 Total assets 1,011,199,525 56,648,462 81,776,958 1,149,624,945 66,901,279 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 4,843,433 - - 4,843,433 - Deferred outflows of resources related to pensions 2,367,891 197,944 3,427,803 5,993,638 573,639 Total deferred outflows of resources 7,211,324 197,944 3,427,803 10,837,071 573,639 (Continued) 29 13A COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30,2015 Business-type Activities Enterprise Funds Governmental Activities- County Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds LIABILITIES Current liabilities: Accounts payable $ 8,521,276 $ 2,220,889 $ 806,411 $ 11,548,576 $ 838,038 Wages payable 1,451,996 131,261 1,244,324 2,827,581 393,179 Retainage payable 806,525 - 20,203 826,728 - Due to other funds 365,859 - 1,025,370 1,391,229 - Due to other governments 172,490 617 3,390 176,497 30,823 Unearned revenue - - 59,217 59,217 6,944 Self-insurance claims payable - - - - 5,703,441 Compensated absences 1,392,767 129,432 553,656 2,075,855 401,361 Capital lease obligations - - 283,358 283,358 - Interest payable 1,603,702 - - 1,603,702 - Bonds and loans payable 6,783,792 - - 6,783,792 - Liabilities payable from restricted assets: Accounts payable - - 1,338,442 1,338,442 - Wages payable - - 3,668 3,668 - Retainage payable - - 287,769 287,769 - Due to other governments - - 68,553 68,553 - Refundable deposits 73,025 - 15,753 88,778 - Unearned revenue - 66,927 8,441 75,368 - Notes payable 64,255 - - 64,255 - Bonds and loans payable 5,971,084 - - 5,971,084 - Total current liabilities 27,206,771 2,549,126 5,718,555 35,474,452 7,373,786 Noncurrent liabilities: Self-insurance claims payable - - - - 1,255,993 Compensated absences 348,192 32,358 138,415 518,965 100,340 Capital lease obligations - - 790,609 790,609 Net OPEB obligation - - - - 2,994,152 Net pension liability 11,556,848 984,622 13,909,987 26,451,457 2,715,474 Landfill post-closure liability - 1,905,976 - 1,905,976 - Bonds and loans payable,net 181,346,188 - - 181,346,188 - Total noncurrent liabilities 193,251,228 2,922,956 14,839,011 211,013,195 7,065,959 Total liabilities 220,457,999 5,472,082 20,557,566 246,487,647 14,439,745 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 1,551,500 125,701 2,854,573 4,531,774 394,047 NET POSITION Net investment in capital assets 622,018,059 30,070,072 62,151,283 714,239,414 15,156,612 Restricted for grants and other purposes - - 1,320,937 1,320,937 - Restricted for growth related capital expansion 20,820,502 - - 20,820,502 - Restricted for renewal and replacement 300,000 - - 300,000 - Restricted for debt service 9,069,663 - - 9,069,663 - Unrestricted 144,193,126 21,178,551 (1,679,598) 163,692,079 37,484,514 Total net position $ 796,401,350 $ 51,248,623 $ 61,792,622 909,442,595 $ 52,641,126 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds 1,435,609 Net position of Business-type Activities $910,878,204 The notes to the financial statements are an integral part of this statement. 30 1 COLLIER COUNTY,FLORIDA 3 A STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Business-type Activities Enterprise Funds Governmental County Activities- Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Operating revenues: Charges for services $ 116,069,777 $ 38,944,709 $ 17,142,340 $ 172,156,826 $ 78,024,564 Miscellaneous 574,897 175,983 254,176 1,005,056 61,512 Total operating revenues 116,644,674 39,120,692 17,396,516 173,161,882 78,086,076 Operating expenses: Personal services 25,392,683 2,196,132 20,616,888 48,205,703 6,250,224 Operating 48,950,954 33,015,590 14,444,623 96,411,167 70,439,778 Depreciation and amortization 40,602,592 1,249,102 3,877,400 45,729,094 1,846,856 Total operating expenses 114,946,229 36,460,824 38,938,911 190,345,964 78,536,858 Operating income(loss) 1,698,445 2,659,868 (21,542,395) (17,184,082) (450,782) Non-operating revenues(expenses): Operating grants and contributions 35,674 111,351 4,994,682 5,141,707 - Interest income 1,802,591 298,855 107,651 2,209,097 462,800 Insurance reimbursement 55,618 3,932 34,476 94,026 1,102,413 Interest expense (5,037,532) - (22,363) (5,059,895) - Gain(Loss)on disposal of capital assets (2,903,749) (17,900) 14,250 (2,907,399) 20,874 Total non-operating revenues(expenses) (6,047,398) 396,238 5,128,696 (522,464) 1,586,087 Income(loss)before contributions and transfers (4,348,953) 3,056,106 (16,413,699) (17,706,546) 1,135,305 Capital grants and contributions 17,352,735 - 3,824,132 21,176,867 303 Transfers in 518,780 86,810 19,807,408 20,412,998 - Transfers out (5,467,2001 (723,661) (11,641) (6,202,502) (1,476,600) Changes in net position 8,055,362 2,419,255 7,206,200 17,680,817 (340,992) Net position-beginning,as previously stated 799,763,895 49,809,654 68,957,822 55,864,001 Restatement of net position due to implementation of GASB 68 (11,417,907) (980,286) (14,371,400) (2,881,883) Net position-as restated 788,345,988 48,829,368 54,586,422 52,982,118 Net position-ending $ 796,401,350 $ 51,248,623 $ 61,792,622 $ 52,641,126 Consolidation adjustment for internal service fund activities related to enterprise funds (266,570) Change in net position of Business-type Activities $ 17,414,247 The notes to the financial statements are an integral part of this statement. 31 3 A COLLIER COUNTY,FLORIDA 1 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Business-type Activities Enterprise Funds Governmental County Activities- Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Cash flows from operating activities: Cash received for services $116,406,735 $ 38,980,175 $ 17,510,425 $172,897,335 $ - Cash received from other funds for services - - - - 69,358,316 Cash received from employees for services - - - - 6,787,209 Cash received from other governments for services - - - - 368,869 Cash received from refundable deposits 129,000 516,620 - 645,620 - Cash received from retirees for services - - - - 1,385,986 Cash payments on behalf of retirees - - - - (2,439,766) Cash payments for goods and services (42,875,262) (31,199,326) (10,741,931) (84,816,519) (67,021,640) Cash payments to employees (25,971,083) (2,262,088) (21,640,412) (49,873,583) (6,576,435) Cash payments for interfund services (6,957,137) (1,588,857) (3,837,878) (12,383,872) (715,671) Cash payments on refundable deposits (113,000) (519,396) - (632,396) - Net cash provided by(used for)operating activities 40,619,253 3,927,128 (18,709,796) 25,836,585 1,146,868 Cash flows from non-capital financing activities: Cash received from operating grants 600,000 111,351 5,325,414 6,036,765 - Cash transfers from other funds 472,340 630,587 19,839,712 20,942,639 - Cash transfers to other funds (6,967,200) (677,221) (3,789,622) (11,434,043) (1,884,022) Net cash provided by(used for)non-capital financing activities (5,894,860) 64,717 21,375,504 15,545,361 (1,884,022) Cash flows from capital and related financing activities: System development charges 12,647,736 - - 12,647,736 - Special assessment collections 8,549 - - 8,549 - Receiptsfrom insurance reimbursements 82,019 3,932 83,834 169,785 1,120,136 Proceeds from loans 17,687,000 - - 17,687,000 - Proceeds from disposal of capital assets 2,059,652 3,528 10,789 2,073,969 23,565 Proceeds from capital grants - - 9,159,557 9,159,557 - Payments for capital acquisitions (26,538,697) (3,713,615) (7,519,748) (37,772,060) (344,946) Principal payments on state revolving loans (8,532,777) - - (8,532,777) - Principal payments on bonds (6,073,205) - - (6,073,205) - Payments to escrow agents (17,882,314) - - (17,882,314) - Principal payments on leases - - (278,323) (278,323) - Interest and fiscal agent fees paid (6,620,035) - (22,363) (6,642,398) - Net cash provided by(used for)capital and related financing activities (33,162,072) (3,706,155) 1,433,746 (35,434,481) 798,755 Cash flows from investing activities: Interest on investments 1,543,217 252,042 89,220 1,884,479 396,555 Net cash provided by investing activities 1,543,217 252,042 89,220 1,884,479 396,555 Net increase in cash,cash equivalents and investments 3,105,538 537,732 4,188,674 7,831,944 458,156 Cash,cash equivalents and investments,October 1,2014 174,364,166 23,203,793 6,804,581 204,372,540 49,091,209 Cash,cash equivalents and investments,September 30,2015 $177,469,704 $ 23,741,525 $ 10,993,255 $212,204,484 $ 49,549,365 Current cash,cash equivalents and investments $141,465,535 $ 23,674,598 $ 10,578,333 $175,718,466 $ 49,549,365 Current cash,cash equivalents and investments-restricted 5,930,561 66,927 414,922 6,412,410 - Noncurrent cash,cash equivalents and investments-restricted 30,073,608 - - 30,073,608 - Cash,cash equivalents and investments,September 30,2015 $177,469,704 $ 23,741,525 $ 10,993,255 $212,204,484 $ 49,549,365 (Continued) 32 COLLIER COUNTY,FLORIDA STATEMENT OF CASH FLOWS I 3A PROPRIETARY FUNDS (CONTINUED) RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Business-type Activities Enterprise Funds Governmental County Activities- Water Solid Waste Other Internal Service and Sewer Disposal Funds Total Funds Operating income(loss) $ 1,698,445 $ 2,659,868 $(21,542,395) $(17,184,082) $ (450,782) Adjustments to reconcile operating income(loss)to net cash provided by(used for)operating activities: Depreciation expense 40,131,522 1,249,102 3,877,400 45,258,024 1,846,856 Amortization of bond insurance costs 8,273 - - 8,273 - Amortization of deferred charges on debt refundings 462,797 - - 462,797 Net changes in assets and liabilities: Trade receivable (308,106) (120,922) 135,033 (293,995) (1,161,031) Due from other funds - 23,525 (41,302) (17,777) (173,026) Due from other governments 71,301 - 212 71,513 18,180 Inventory (394,783) - 61,771 (333,012) 380,178 Prepaid costs 5,298 - (52,325) (47,027) - Accounts payable (493,230) 159,356 (149,757) (483,631) 174,037 Wages payable 154,173 12,237 117,135 283,545 36,078 Due to other funds 137 44,660 21,066 65,863 (39,300) Due to other governments - (134) 1,047 913 30,744 Compensated absences (55,124) (10,286) (103,273) (168,683) (16,288) Refundable deposits 16,000 (2,776) (819) 12,405 - Unearned revenue - - 1,054 1,054 (2,828) Self-insurance claims payable - - - - 386,606 Net OPEB obligation - - - - 463,445 Net pension liability and related deferred outflows/inflows (677,450) (67,907) (1,034,643) (1,780,000) (346,001) Landfill post closure liability - (19,595) - (19,595) - Total adjustments 38,920,808 1,267,260 2,832,599 43,020,667 1,597,650 Net cash provided by(used for)operating activities $ 40,619,253 $ 3,927,128 $(18,709,796) $ 25,836,585 $ 1,146,868 Non-cash investing,capital and financing activities: Change in fair value of investments $ 311,643 $ 50,161 $ 18,541 $ 380,345 $ 50,182 Developer infrastructure contributions 4,698,719 - - 4,698,719 - Contributed capital assets 11,524 - 433,985 445,509 303 Change in capital related grant receivable - - (5,769,410) Change in special assessment receivable (13,793) - - (13,793) - Capital related accounts payable 2,950,612 132,225 1,133,557 4,216,394 70,823 The notes to the financial statements are an integral part of this statement. 33 COLLIER COUNTY, FLORIDA ,; . 3 STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30,2015 Agency Funds ASSETS Cash,cash equivalents and investments $ 40,975,879 Receivables: Interest 16,240 Other 33,208 Total assets $ 41,025,327 LIABILITIES Due to other governments $ 8,502,105 Due to individuals 542,545 Refundable deposits 31,156,744 Due to special assessment holders 823,933 Total liabilities $ 41,025,327 The notes to the financial statements are an integral part of this statement. 34 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS3A SEPTEMBER 30, 2015 INDEX NOTE PAGE NUMBER 1 Summary of Significant Accounting Policies 36 2 Cash,Cash Equivalents and Investments 47 3 Trade Receivables 49 4 Interfund Payables and Receivables 50 5 Capital Assets 52 6 Long-Term Debt 53 7 Conduit Debt Obligations 60 8 Defeased Debt 60 9 Defined Benefit Pension Plans 61 10 Defined Contribution Plan 67 11 Transfers 68 12 Net Position/Fund Balances 69 13 Risk Management 72 14 Other Postemployment Benefits 73 15 Landfill Liability 76 16 Significant Contingencies 77 17 Significant Commitments 78 18 Fund Deficits 79 19 Change in Accounting Principle 80 35 COLLIER COUNTY, FLORIDA 1 3A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES THE REPORTING ENTITY The primary government consists of Collier County,a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller,the Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners,Supervisor of Elections and the Clerk of the Circuit Court and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board,impose its will on the organization,and the existence of a financial benefit/burden relationship or fiscal dependency. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex-officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with Governmental Accounting Standards Board(GASB)Statement No.14,The Financial Reporting Entity,as amended,these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District The District was established by Chapter 88-499, Laws of Florida, as amended by Chapter 03-353, to provide water,sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency(CRA) The CRA was established by Resolution 2000-82 to benefit blighted areas in both the lmmokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010-10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization(MPO) The Authority was created in 1981 by Collier County Resolution 81-222 pursuant to Section 334.215,Florida Statutes,as amended by Section 339.175,Florida Statutes. The purpose of the MPO is to provide for short- term and long-term planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units'Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB No. 14, as amended, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. 36 COLLIER COUNTY, FLORIDA 1 3A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED Collier County Housing Finance Authority The Authority was formed in 1980 by Collier County Ordinance 80-66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7,"Conduit Debt Obligations". Collier County Health Facilities Authority The Authority was established in 1979 by Collier County Ordinance 79-95 for the purpose of assisting health facilities in the acquisition,construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7,"Conduit Debt Obligations". Collier County Industrial Development Authority The Authority was created in 1978 by Collier County Resolution 78-94,rescinded and replaced by Resolution 79-34,to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7,"Conduit Debt Obligations". Collier County Educational Facilities Authority The Authority was created in 1999 by Collier County Resolution 99-17 to assist institutions for higher education in the construction,financing and refinancing of projects.Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7,"Conduit Debt Obligations". Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District Collier County Airport Authority 3339 East Tamiami Trail,Suite#302 2005 Mainsail Drive,Suite#1 Naples,Florida 34112 Naples,Florida 34114 Collier County Industrial Development Collier County Health Facilities Authority Authority and Educational Facilities Authority and Housing Finance Authority 3050 North Horseshoe Drive,Suite#120 5150 Tamiami Trail North,Suite#502 Naples,Florida 34104 Naples,Florida 34103 Bayshore Gateway Community Redevelopment Agency Immokalee Community Redevelopment Agency 3570 Bayshore Drive,Unit#102 1320 North 15th Street Naples,Florida 34112 Immokalee,Florida 34142 Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive Naples,Florida 34104 Certain separate legal entities within the County are autonomous organizations with their own governmental powers and constituencies. These entities,which are not included in these financial statements,are as follows: 37 COLLIER COUNTY, FLORIDA 1 3 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED The Cities of Naples,Marco Island and Everglades The Cities of Naples,Marco Island and Everglades are in the boundaries of Collier County.Each of these entities has a separately elected board and separate budgeting,accounting and reporting requirements. Collier County School Board The Collier County School Board operates countywide and is completely separate and autonomous. The School Board has five elected board members and a superintendent of schools and operates under regulations prescribed by the State Board of Education and the Florida Statutes. It levies its own taxes and receives part of its income from the State of Florida. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government-wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business-type activities of Collier County. The government-wide financial statements consist of a Statement of Net Position and a Statement of Activities. These statements report on the financial condition of Collier County,at the reporting entity level. Internal balances represent net amounts due between the governmental and business-type activities. As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government-wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund financial statements.Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Position reports all financial and capital resources of Collier County's governmental and business-type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources,and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. The Statement of Activities reports results of operations on a functional activity(program)basis and demonstrates to what degree the particular program has been self-supporting. Direct expenses are those that are specifically associated with a service,program or department and,thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government- wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government-wide Statement of Activities.All interest on general long term debt is considered indirect and is reported separately in the government-wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service,and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. The fund financial statements follow the government-wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government-wide presentation. 38 COLLIER COUNTY, FLORIDA ,a , 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund—the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller,Property Appraiser,Sheriff,Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Bayshore/Gateway and lmmokalee Community Redevelopment Area Special Revenue Funds — the Redevelopment funds are used to account for the receipt and expenditure of tax increment revenues generated by the Bayshore/Gateway and lmmokalee Community Redevelopment Areas. The following are reported as major enterprise funds: County Water and Sewer Fund—the County Water and Sewer fund is used to account for the provision of water,wastewater and effluent services to certain portions of the County's unincorporated area. Solid Waste Disposal Fund—the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Fund—Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund—Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds—Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long-term obligations. Capital Proiect Funds—Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds—Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds—Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self Insurance,Sheriff's Self Insurance, Fleet Management and Information Technology. Agency Funds—Agency funds are custodial in nature and do not report the results of operations(assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain agency funds. 39 3 A COLLIER COUNTY, FLORIDA 1 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources(current assets less current liabilities)or economic resources(all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases(i.e.,revenues)and decreases(i.e.,expenses)in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus,only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases(i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences and principal and interest on long-term debt. When both restricted and unrestricted resources are available,restricted resources will be used first for incurred expenses,and then unrestricted as needed. When using the unrestricted resources,committed amounts would be reduced first,followed by assigned amounts,and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1)Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser,the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures,reserves and balances to be carried forward at the end of the year as specified in Section 129.03,Florida Statutes. 2)Within eighty days of the certification of value,but not earlier than sixty-five days after certification,the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget,recomputes the proposed millage rate,and announces publicly the percentage,if any,by which the recomputed proposed millage rate exceeds the rolled-back rate. If the millage rate tentatively adopted exceeds that proposed,each taxpayer within the jurisdiction is notified of the increase by first class mail,at the expense of the Board. 40 COLLIER COUNTY, FLORIDA 1 3A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED 3) Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4)A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate,except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5)The resolution approved at the final hearing is forwarded to the Property Appraiser,Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200,Florida Statutes. 6)The County Manager approves interdepartmental budget changes within the same fund and division of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7) Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However,because the Board approves all budgetary changes between departments, except those approved by the County Manager,the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds.Budgets have been legally adopted by the Board for all Board departments except for the agency funds and the Impact Fees Escrow special revenue fund. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer,and as such,prepares its budget in accordance with Section 218.35,Florida Statutes. The Sheriff and Supervisor of Elections prepare budgets for their general funds,which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles(GAAP)except for certain non-budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances,refer to Note 17 on page 78. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years,the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation,certain transactions that have been accounted for in the governmental funds statements of revenues,expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. 41 3 COLLIER COUNTY, FLORIDA I A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED CASH AND INVESTMENTS The County is required by Section 218.415 Florida Statutes to adopt a written investment policy consistent with the requirements of that statute. The County's current investment policy,as amended,was adopted December 9,2014 by Resolution 2014-260. This investment policy formally establishes guidelines and authorized the following investments: 1) U.S.Treasury and Government Guaranteed—U.S.Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S.Government; 2) Federal Agency/Government Sponsored Enterprise—Debt obligations,participations or other instruments issued or fully guaranteed by any U.S.Federal agency,instrumentality or government sponsored enterprise; 3) Corporates—U.S.dollar denominated corporate notes,bonds or other debt obligations issued or guaranteed by a domestic corporation,financial institution,non-profit or other entity; 4) Municipals—Obligations, including both taxable and tax-exempt, issued or guaranteed by any State,territory or possession of the United States,political subdivision,public corporation,authority,agency board,instrumentality or other unit of local government of any State or territory; 5) Agency Mortgage Backed Securities — Mortgage backed securities , backed by residential , multi-family or commercial mortgages,that are issued or fully guaranteed as to principal and interest by a U.S.Federal agency or government sponsored enterprise,including but not limited to pass-throughs,collateralized mortgage obligations and real estate mortgage investment conduits; 6) Non-Negotiable Certificates of Deposit- Non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act,Chapter 280,Florida Statutes; 7) Depository Bank Account—Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state,provided that any such deposits are secured by the Florida Security for Public Deposits Act,Chapter 280,Florida Statutes; 8) Commercial Paper—U.S.dollar denominated commercial paper issued or guaranteed by a domestic corporation, company,financial institution,trust or other entity,including both unsecured debt and asset backed programs; 9) Repurchase Agreements—Repurchase agreements must be governed by written agreement,counterparty must be a Federal Reserve Bank,a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by,the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102%(or 100%if the counterparty is a Federal Reserve Bank)of the purchase price plus current accrued price differential; 10) Money Market Funds—Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a-7; 11) Fixed-Income Mutual Funds —Shares on open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restrictions; 42 1 3 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED 12) Local Government Investment Pools—State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13) The Florida Local Government Surplus Funds Trust Funds(Florida Prime). The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund's individual equity in the County's cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Surplus Funds Trust Fund(Florida Prime),which is an external 2a7-like investment pool,are stated at share price which is substantively the same as fair value. Florida Prime is administered to by the State Board of Administration(SBA)under the regulatory oversight of the State of Florida,Chapter 19-7 of the Florida Administrative Code. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles,which is generally a year except for Emergency Medical Services receivable which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first-in,first-out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non-spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government-wide and proprietary fund financial statements are reported as an expense when consumed. Inventory held for resale consists of real estate holdings,acquired through various programs,which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of$11,951,923 is classified as restricted,which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business-type activities columns in the government-wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at their estimated fair value on the date donated. The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value,change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold,together with the related accumulated depreciation,is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government-wide financial statements and proprietary fund financial statements. 43 COLLIER COUNTY, FLORIDA 1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED Depreciation is calculated using the straight-line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20-45 years Infrastructure 3-30 years Improvements other than buildings 4-45 years Machinery and equipment 3-20 years CAPITAL LEASE OBLIGATIONS In the government-wide financial statements and proprietary fund financial statements capital lease obligations and the related cost of assets acquired are reflected in the Statement of Net Position. For capital lease obligations originating in governmental funds,an expenditure for the asset and the offsetting other financing source is reflected in the fund financial statements in the year of inception. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element,deferred outflows of resources,represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County's statement of net position represent changes in actuarial assumptions,the net difference between projected and actual earnings on Health Insurance Subsidy Program investments, changes in the proportion and differences between the County's contributions and proportionate share of contributions, and the County's contributions subsequent to the measurement date,relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. These amounts will be recognized as increases in pension expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element,deferred inflows of resources,represents an acquisition of net position that applies to a future period(s)and so will not be recognized as an inflow of resources(revenue)until that time.The deferred inflows of resources reported in the County's statement of net position represent the difference between expected and actual economic experience,the net difference between projected and actual earnings on Florida Retirement System Pension investments, and changes in the proportion and differences between the County's contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. These amounts will be recognized as reductions in pension expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements,as deferred inflows. 44 COLLIER COUNTY, FLORIDA 1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED BOND PREMIUMS,LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums and bond insurance costs for the governmental activities and the business-type activities are deferred and amortized over the term of the bonds using the straight-line method which approximates the effective interest method. Bond premiums are presented as an increase to the face amount of bonds payable,while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB No.65,Items Previously Reported as Assets and Liabilities,the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. In the governmental fund financials,bond premiums and issuance costs,including bond insurance costs,are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are also reported as other financing sources. Issuance costs,including bond insurance costs,whether or not they have been paid from debt proceeds are reported as debt service expenditures. INTEREST COST In the proprietary funds,interest costs are expensed or capitalized as required by GASB 62,Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30,1989 FASB and AICPA Pronouncements. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements,as delinquent taxes as of September 30,2015 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st delinquent date as follows: November-4%, December-3%,January-2%,and February-1%. Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1st of each year. No accrual for the property tax levy becoming due in November 2015 is included in the accompanying financial statements,since such taxes are collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for the fiscal year ended September 30,2015 are as follows: Property Tax Cycle Date Assessment roll compiled January 1,2014 Assessment roll certified July 1,2014 Millage resolution approved Within 35 days of the certification of the assessment roll Beginning of fiscal year for tax levy October 1,2014 Taxes due and payable(levy date) November 1,2014 Collection dates By November 30: 4%discount By December 31: 3%discount By January 31: 2%discount By February 28: 1%discount Due date March 31,2015 Delinquent(lien date) April 1,2015 Tax certificates sold Prior to June 1,2015 45 3 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED ACCOUNTING ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Unearned revenues of the County as of September 30,2015 are gift certificates issued and prepayments on accounts. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No.16,Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. It is the Board of County Commissioners'policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all employees. The Sheriff's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,000 hours,and up to 500 hours of unused vacation time. Both the Clerk of the Circuit Court and Comptroller's and Tax Collector's policies allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service,and up to 440 hours of unused vacation. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government-wide financial statements and the proprietary fund financials.A liability is reported in governmental funds only if they have matured,for example,as a result of employee resignations or retirements,and are considered due and payable as of year end. PENSIONS In the government-wide and proprietary funds statements of net position,liabilities are recognized for the County's proportionate share of each pension plan's net pension liability.For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS's and HIS's fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 46 COLLIER COUNTY, FLORIDA1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONTINUED NEW ACCOUNTING PRONOUNCEMENTS For the year ended September 30, 2015, the financial statements include the impact of adoption of Governmental Accounting Standards Board (GASB) Statement 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. The primary objective of these statements is to improve accounting and financial reporting for pensions by State and Local governments. These statements are a result of a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions in providing decision useful information, supporting assessments of accountability and interperiod equity and creating additional transparency. GASB Statement No. 68 replaces the requirements of GASBS No. 27,Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of GASBS No.50,Pension Disclosures. NOTE 2—CASH,CASH EQUIVALENTS AND INVESTMENTS The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is displayed on the balance sheet under the heading of Cash, Cash Equivalents and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. As of September 30,2015,the County had the following cash,cash equivalents and investments: Final First Investment Maturities Fair Value Call Date Call Frequency Rating* Cash on hand N/A $ 82,501 N/A N/A N/A Cash with fiscal agent N/A 11,704,336 N/A N/A N/A Demand deposits N/A 164,819,961 N/A N/A N/A State Board of Administration Pool: Florida PRIME N/A 742,264 N/A N/A AAAm Federal Home Loan Mortgage Corporation 10/14/2016 25,104,775 N/A N/A AA+ Federal National Mortgage Association 11/28/2016 24,989,025 05/28/2014 quarterly AA+ US Treasury Note 11/30/2016 50,042,950 N/A N/A AA+ US Treasury Note 01/15/2017 60,221,100 N/A N/A AA+ US Treasury Note 02/15/2017 25,046,225 N/A N/A AA-F US Treasury Note 03/15/2017 10,035,030 N/A N/A AA+ Federal Farm Credit Bank 10/23/2017 10,000,870 04/23/2015 continuously AA+ Federal National Mortgage Association 03/29/2018 35,066,535 09/29/2015 quarterly AA+ Federal National Mortgage Association 04/02/2018 50,099,650 10/02/2015 quarterly AA+ Federal Home Loan Mortgage Corporation 05/18/2018 29,996,460 11/18/2015 quarterly AA+ Federal Farm Credit Bank 12/16/2019 25,077,350 12/16/2015 continuously AA+ Federal Home Loan Bank 12/30/2019 15,091,065 12/30/2015 once AA+ Federal Home Loan Bank 12/30/2019 15,094,815 12/30/2015 once AA+ Federal Home Loan Bank 12/30/2019 11,342,951 12/30/2015 quarterly AA+ Federal National Mortgage Association 01/15/2020 15,008,835 07/15/2013 quarterly AA+ Federal Farm Credit Bank 02/03/2020 14,296,313 02/03/2016 continuously AA+ Federal Home Loan Mortgage Corporation 02/13/2020 25,033,400 02/13/2017 once AA+ Federal National Mortgage Association 03/30/2020 50,180,900 03/30/2016 quarterly AA+ Federal Farm Credit Bank 04/01/2020 40,071,080 04/01/2016 continuously AA+ Total $709,148,391 *Standard and Poor's rating 47 COLLIER COUNTY, FLORIDA1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 2—CASH,CASH EQUIVALENTS AND INVESTMENTS—CONTINUED CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The investment practices are governed by Florida Statutes,Chapter 218 and the Investment Policy. The Investment Policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund(Florida PRIME),direct obligations of,or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association),certificates of deposit collateralized by U.S.Government Securities or Agencies,fixed income mutual funds collateralized by U.S.Government Securities or Agencies,domestic bankers'acceptances rated"AA"or higher, prime commercial paper rated "A-1" and "P-1", tax-exempt obligations rated "AA" or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County's master repurchase agreement,a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S.Government securities and 104 percent on Agencies and Instrumentalities with a term over five(5)years,and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration(SBA),under the regulatory oversight of the State of Florida. At September 30,2015,the Sheriff had$742,264 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated"AAAm"by Standard&Poor's Ratings Services. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280,"Florida Security for Public Deposits Act". Under the Act,all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 25%to 200%depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance,sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK The policy requires execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County's name. At September 30, 2015, the County had demand deposits of$164,819,961. All balances in excess of the Federal Depository Insurance Corporation insurance for these demand deposits are fully collateralized by the multiple financial institutions'collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of$343,675 are secured by the Federal Depository Insurance Corporation as individual entity balances do not exceed$250,000. INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. 48 COLLIER COUNTY, FLORIDA I 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 2—CASH,CASH EQUIVALENTS AND INVESTMENTS—CONTINUED The portion of the County's cash,cash equivalents and investments invested in U.S. Government Instrumentalities is detailed as follows,at September 30,2015: Issuer %of Portfolio Federal Home Loan Bank 5.86% Federal Farm Credit Bank 12.61% Federal Home Loan Mortgage Corporation 11.30% Federal National Mortgage Association 24.73% Total U.S.Government Instrumentalities 54.50% Reconciliation of cash,cash equivalents and investments to the basic financial statements: Primary government: Cash,cash equivalents and investments $ 351,994,744 Cash with Fiscal Agent 11,704,336 Restricted cash,cash equivalents and investments-current 24,544,337 Restricted cash,cash equivalents and investments-noncurrent 279,929,095 Agency funds: Cash,cash equivalents and investments 40,975,879 Total $ 709,148,391 NOTE 3-TRADE RECEIVABLES Trade receivables for Governmental and Business-type Activities are net of an allowance for doubtful accounts as follows: Less Allowance Trade for Doubtful Net Trade Receivables Accounts Receivables General Fund $ 1,171,130 $ 536,963 $ 634,167 Bayshore Gateway Community Redevelopment Agency 12,720 12,720 - ImmokaleeCommunityRedevelopmentAgency 236 - 236 Nonmajor Governmental Funds 2,456,581 607,327 1,849,254 Total receivables reported in Governmental Funds 3,640,667 1,157,010 2,483,657 Total receivables reported in Internal Service Funds 1,304,463 14,519 1,289,944 Total Governmental Activities trade receivables $ 4,945,130 $ 1,171,529 $ 3,773,601 County Water and Sewer $ 10,103,890 $ - $ 10,103,890 Solid Waste Disposal 904,806 475 904,331 Nonmajor Enterprise Funds 25,618,140 24,104,924 1,513,216 Total Business-type Activities trade receivables $ 36,626,836 $ 24,105,399 $ 12,521,437 49 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS J 1 . 3 SEPTEMBER 30, 2015 NOTE 3—TRADE RECEIVABLES—CONTINUED The County has multi and single-family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program(SHIP). If the homeowners remain in their homes for the full term of the deferred loan,the loan is forgiven. If the property is transferred or sold before the end of the loan period,the proceeds from the repayment including interest,if any,are then repaid and returned to the appropriate grant program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. NOTE 4—INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances to and advances from other funds at September 30,2015 were as follows: Advance Advance To From Governmental Activities: General Fund $ 711,800 $ - ImmokaleeCommunityRedevelopmentAgency - 268,901 Other governmental funds: Unincorporated Area MSTD 528,901 - Improvement Districts - 260,000 Fire Control Districts - 711,800 Government Facilities Impact Fees Fund - 3,080,280 Total Governmental Activities 1,240,701 4,320,981 Business-type Activities: County Water and Sewer 1,504,132 - Solid Waste Disposal 1,576,148 - Total Bus i ness-type Activiti es 3,080,280 - Total Advances $ 4,320,981 $ 4,320,981 Advances are made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end,and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. 50 COLLIER COUNTY, FLORIDA + NOTES TO THE FINANCIAL STATEMENTS 311 SEPTEMBER 30, 2015 NOTE 4-INTERFUND PAYABLES AND RECEIVABLES-CONTINUED Due from and due to other funds at September 30,2015 were as follows: Due From Due To Governmental Activities: General Fund $ 5,218,119 $ 871,227 Immokalee Community Redevelopment Agency - 3,462 Other Governmental Funds: Road Districts 800,000 - Unincorporated Area MSTD 276,620 18,896 Community Development 21 - Water Management and Pollution Control 41,783 - Grants and Shared Revenues 614,035 9,112,299 Improvement Districts 32,563 3,855 Fire Control Districts 35,162 398 Lighting Districts 10,997 312 Tourist Development 164,537 1,273 State CourtAdministration 3,137 - Conservation Collier - 8,559 Court Services - 379 Other Sheriff Special Revenue Funds 34,747 445,763 Other Special Revenue Funds - 3,137 Radio Road Limited General Obligation Bonds 816 - Conservation Collier Limited Obligation Bonds 8,559 - Forest Lakes Limited General Obligation Bonds 4,011 - Special Obligation Revenue Bonds - 7,600,000 County-Wide Capital Improvement - 1,051,307 Parks Improvements 337,528 - Correctional Facilities Impact Fee 1,300,000 - Water Management 2,517 30,385 Parks Impact Fee 2,400,000 - Road Construction 6,257,339 148,515 Government Facilities Impact Fee 2,300,000 - Law Enforcement Impact Fee 500,000 - Other Capital Projects 1,585 - Total other governmental funds 15,125,957 18,425,078 Business-type Activities: County Water and Sewer 15,400 365,859 Solid Waste 56,984 - Other Business-type funds: Emergency Medical Services 2,743 Airport Authority 7,472 979,436 Collier Area Transit 8,807 45,934 Total other business-type funds 19,022 1,025,370 Internal Service Funds 255,514 - Total All Funds $ 20,690,996 $ 20,690,996 51 1 3 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 5—CAPITAL ASSETS A summary of capital asset activity for the year ended September 30,2015 is as follows: September 30, September 30, 2014 Additions Deductions Reclassifications 2015 Governmental Activities: Capital assets not depreciated: Land and other non-depreciable assets $ 406,357,819 $ 4,705,802 $ (2,350) $ 518,771 $ 411,580,042 Construction in progress 45,277,969 41,783,774 - (29,572,753) 57,488,990 Total capital assets not depreciated 451,635,788 46,489,576 (2,350) (29,053,982) 469,069,032 Capital assets depreciated: Buildings 438,101,254 2,590 - 7,188,233 445,292,077 Infrastructure 988,509,093 541,637 (8,500) 18,065,018 1,007,107,248 Improvements other than buildings 277,954,464 278,015 (512,064) 3,204,687 280,925,102 Machinery and equipment 181,486,413 16,393,919 (8,201,822) 681,819 190,360,329 Total capital assets depreciated 1,886,051,224 17,216,161 (8,722,386) 29,139,757 1,923,684,756 Less accumulated depreciation: Buildings 150,171,115 13,593,866 - (27,662) 163,737,319 Infrastructure 307,787,802 32,747,654 (3,622) (34,915) 340,496,919 Improvements other than buildings 148,069,247 14,198,000 (165,094) - 162,102,153 Machinery and equipment 149,763,321 13,431,033 (8,082,590) 129,996 155,241,760 Total accumulated depreciation 755,791,485 73,970,553 (8,251,306t 67,419 821,578,151 Total depreciable capital assets,net 1,130,259,739 (56,754,392) (471,080) 29,072,338 1,102,106,605 Total Governmental Activities capital assets,net $1x581,895,527 _.$11.1211,810_ $ (473,43 $ 18,356_ $1,571,175637 Business-type Activities: Capital assets not depreciated: Land and other non-depreciable assets $ 32,332,386 $ 320,019 $(1,704,343) $ 110,828 $ 31,058,890 Construction in progress 71,218,216 31,709,969 (755,508) (55,667,108) 46,505,569 Total capital assets not depreciated 103,550,602 32,029,988 (2,459,851) (55,556,280) 77,564,459 Capital assets depreciated: Buildings 135,834,560 8,543 (3,375,439) 9,677,747 142,145,411 Improvements other than buildings 1,102,621,203 4,728,727 (3,146,069) 42,745,118 1,146,948,979 Machinery and equipment 51,385,831 4,177,800 (1,262,158) 3,047,642 57,349,115 Total capital assets depreciated 1,289,841,594 8,915,070 (7,783,666) 55,470,507 1,346,443,505 Less accumulated depreciation: Buildings 77,884,927 4,205,552 (3,108,480) - 78,981,999 Improvements other than buildings 367,741,972 35,446,210 (1,061,149) 714 402,127,747 Machinery and equipment 28,248,492 5,606,262 (1,220,422) (68,131) 32,566,201 Total accumulated depreciation 473,875,391 45,258,024 (5,390,051) (67,417) 513,675,947 Total depreciable capital assets,net 815,966,203 (36,342,954) (2,393,615) 55,537,924 832,767,558 Total Business-type Activities capital assets,net ...1=2.1112.5,.... $ (4,312,966) $(4,853,466) $ (18, 6j $ 910,332,017 52 COLLIER COUNTY, FLORIDA 1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 5-CAPITAL ASSETS-CONTINUED Schedule of depreciation for fiscal year 2015: General Government $ 8,761,462 Public Safety 13,435,519 Physical Environment 7,211,918 Transportation 33,795,287 Economic Environment 240,304 Human Services 432,166 Culture and Recreation 8,247,041 Subtotal 72,123,697 Internal Service Funds 1,846,856 Total Governmental Activities $ 73,970,553 Water and Sewer $ 40,131,522 Solid Waste 1,249,102 EMS 973,635 Airport Authority 1,413,499 Mass Transit 1,490,266 Total Business-type Activities $ 45,258,024 NOTE 6-LONG-TERM DEBT SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30,2015: 000's Omittec( October 1, 2014,as Premium September 30, Due within Restated Additions Reductions Amortized,net 2015 one year Governmental Activities: Bonds Payable $ 353,610 $ - $ (18,735) $ - $ 334,875 $ 19,605 Premium on Bonds Payable 18,278 - - (1,507) 16,771 - Notes Payable 7,081 - (680) - 6,401 556 Capital Lease Obligations 230 1,914 (625) - 1,519 595 Self-Insurance Claims 6,573 52,244 (51,858) - 6,959 5,703 Net Pension Liability 84,865 49,336 - - 134,201 - Net OPEB Obligation 2,531 2,038 (1,575) - 2,994 - Compensated Absences 24,887 6,645 (9,742) - 21,790 8,206 Total $ 498,055 $ 112,177 $ (83,215) $ (1,507) $ 525,510 $ 34,665 Business-type Activities: Bonds and Loans Payable $ 207,414 $ 17,687 $ (31,816) $ - $ 193,285 $ 12,755 Premium on Bonds Payable 1,100 - (233) (51) 816 - Notes Payable 69 - (5) - 64 64 Capital Lease Obligations 1,222 130 (278) - 1,074 283 Landfill Closure Liability 1,926 - (20) - 1,906 - Net Pension Liability 16,169 10,282 - - 26,451 - Compensated Absences 2,764 2,235 (2,404) - 2,595 2,076 Total $ 230,664 _l__E2.324__ $ (34,756) $ (51L $ 226,191_ $ 15,178 53 1 COLLIER COUNTY, FLORIDA -° A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6—LONG-TERM DEBT—CONTINUED DESCRIPTIONS OF BONDS,LOANS AND NOTES PAYABLE Bonds,loans and notes payable at September 30,2015 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit,due in installments of$300,000 to$540,000 through January 1,2022;interest at 3.75%to 4.25%and collateralized by a limited ad valorem pledge of up to 4 mils. $ 3,355,000 Total Governmental Activities Limited General Obligation Bonds $ 3,355,000 Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to$6,605,000 through June 1,2023;interest at 3.00%to 5.00%and collateralized by a pledge on the combined gas tax proceeds. $ 25,725,000 $89,780,000 2014 Gas Tax Refunding Revenue Bonds, due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025;interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds. 88,715,000 $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to$3,860,000 through July 1, 2034;interest at 3.00%to 4.50%and collateralized by pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing,communications services tax and charges and services generated by governmental activities. 51,270,000 $24,620,000 2010B Special Obligation Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 16,370,000 $92,295,000 2011 Special Obligation Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 75,635,000 $73,805,000 2013 Special Obligation Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by pledge on legally available non-ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. 73,805,000 Total Governmental Activities Revenue Bonds $ 331,520,000 Governmental Activities Notes Payable $7,557,900 Bayshore Gateway Community Redevelopment Agency Taxable Note, due in monthly installments of$41,988 through June 1,2018;variable interest rate of 30-Day LIBOR plus 3.75%and collateralized by a pledge on all legally available non-ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency. $ 6,009,577 54 COLLIER COUNTY, FLORIDA 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6—LONG-TERM DEBT—CONTINUED DESCRIPTIONS OF BONDS,LOANS AND NOTES PAYABLE—CONTINUED $550,000 2012 Limited General Obligation Note, Radio Road East Municipal Service Taxing Unit, due in installments of $3,847 to $5,408 through June 1, 2022; interest at 3.44%and collateralized by a limited a d valorem pledge of up to.5 mils. 391,515 Total Governmental Activities Notes Payable $ 6,401,092 Total Governmental Activities Obligations $ 341,276,092 Unamortized Bond Premium $ 16,771,274 Governmental Activities Obligations,Net $ 358,047,366 Less Current Portion of Governmental Activities Obligations $ (20,161,289) Long-Term Portion of Governmental Activities Obligations,Net $ 337,886,077 BUSINESS-TYPE ACTIVITIES Business-type Activities Revenue Bonds $110,165,000 2006 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,310,000 to $8,695,000, commencing July 1, 2017 through July 1, 2036; interest at 4.00%to 5.00%and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. $ 60,160,000 $11,727,489 2009 Collier County Water and Sewer Revenue Bonds due in annual installments of $1,569,324 to $1,817,005, commencing July 1, 2010 through July 1, 2016; interest at 2.97%and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 1,817,005 $17,769,080 2013 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $1,369,430 to $4,312,275, commencing July 1, 2014 through July 1, 2021; interest at 1.47%and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 9,209,813 $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $2,533,000 to $4,561,000, commencing July 1, 2017 through July 1, 2022; interest at 1.75%and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. 17,687,000 Total Business-type Activities Revenue Bonds $ 88,873,818 Business-type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non-interest bearing agreement. $ 64,255 $13,730,740 County Water and Sewer District State Revolving Fund Loan,interest payable at 2.65%payable in 40 semiannual payments commencing January 15,1999 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,538,021 $21,951,544 County Water and Sewer District State Revolving Fund Loan,interest payable at 3.05% payable in 40 semiannual payments commencing November 15, 2001 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 7,964,628 $5,055,347 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05%payable in 40 semiannual payments commencing October 15,2004 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,709,893 55 COLLIER COUNTY, FLORIDA 1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6—LONG-TERM DEBT—CONTINUED DESCRIPTIONS OF BONDS,LOANS AND NOTES PAYABLE—CONTINUED $6,560,956 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05%payable in 40 semiannual payments commencing January 15,2005 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. $ 3,442,863 $28,630,467 County Water and Sewer District State Revolving Fund Loan,interest payable at 2.95%payable in 40 semiannual payments commencing June 15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 17,447,845 $10,280,778 County Water and Sewer District State Revolving Fund Loan,interest payable at 2.90% payable in 40 semiannual payments commencing September 15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 6,011,725 $5,445,223 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.92% payable in 40 semiannual payments commencing December 15, 2005 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 3,129,243 $4,210,716 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74% payable in 40 semiannual payments commencing November 15, 2007 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 2,709,725 $5,625,546 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 3,761,015 $21,126,718 County Water and Sewer District State Revolving Fund Loan,interest payable at 2.25%, 2.64%, 2.71%and 2.79%payable in 40 semiannual payments commencing August 15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 15,700,512 $42,505,652 County Water and Sewer District State Revolving Fund Loan,interest payable at 2.25%,2.37%,2.64%and 2.79%payable in 40 semiannual payments commencing October 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 36,833,440 $2,864,137 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and 2,161,985 Total Business-type Activities Loans and Notes Payable $ 104,475,150 Total Business-type Activities Obligations $ 193,348,968 Unamortized Bond Premium $ 816,351 Business-type Activities Obligations,Net $ 194,165,319 Less Current Portion of Business-type Activities Obligations Payable from Unrestricted Assets $ (6,783,792) Less Current Portion of Business-type Activities Obligations Payable from Restricted Assets $ (6,035,339) Long-Term Portion of Business-type Activities Obligations,Net $ 181,346,188 56 COLLIER COUNTY, FLORIDA 1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6—LONG-TERM DEBT—CONTINUED SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY The total annual debt service requirements to maturity of long-term debt,excluding compensated absences,capitalized leases,premiums,discounts and arbitrage rebate liability,are as follows: Governmental Activities Fiscal Limited General Year Obligation Bonds Revenue Bonds Notes Payable Totals Principal Interest Principal Interest Principal Interest 2016 $ 425,000 $ 130,775 $ 19,180,000 $ 12,261,577 $ 556,289 $ 240,902 $ 32,794,543 2017 440,000 113,475 19,900,000 11,529,730 558,121 219,168 32,760,494 2018 460,000 95,475 20,655,000 10,766,957 5,058,027 152,123 37,187,582 2019 475,000 76,181 21,440,000 9,961,048 58,124 6,955 32,017,308 2020 495,000 55,569 22,270,000 9,145,667 60,156 4,924 32,031,316 2021-25 1,060,000 45,475 116,640,000 33,048,831 110,375 3,513 150,908,194 2026-30 - - 51,590,000 17,605,916 - - 69,195,916 2031-35 - - 53,130,000 6,908,263 - - 60,038,263 2036-40 - - 6,715,000 134,300 - - 6,849,300 Totals $ 3,355,000 $ 516,950 $ 331,520,000 $ 111,362,289 $ 6,401,092 $ 627,585 $ 453,782,916 Business-type Activities Fiscal Loans and Year Revenue Bonds Notes Payable Totals Principal - Interest Principal Interest 2016 $ 3,986,420 $ 3,120,912 $ 8,832,710 $ 2,744,775 $ 18,684,817 2017 3,902,430 2,990,729 9,010,716 2,502,514 18,406,389 2018 3,968,061 2,925,465 9,259,743 2,253,489 18,406,758 2019 4,031,480 2,859,179 8,623,257 2,003,493 17,517,409 2020 4,099,464 2,791,703 8,862,105 1,764,650 17,517,922 2021-25 8,725,963 13,211,228 41,164,315 5,329,275 68,430,781 2026-30 13,195,000 12,835,650 18,722,304 899,518 45,652,472 2031-35 38,270,000 7,144,977 - - 45,414,977 2036-40 8,695,000 386,928 - - 9,081,928 Totals $ 88,873,818 $ 48,266,771 $ 104,475,150 $ 17,497,714 $ 259,113,453 CURRENT YEAR DEBT REFUNDINGS On September 30, 2015 the Collier County Water and Sewer District issued the Series 2015 Water and Sewer Refunding Revenue Bond in the par amount of$17,687,000. These bonds were issued for the purpose of advance refunding a portion of the County's outstanding Series 2006 Water and Sewer Revenue Bonds. The final maturity of the bonds is July 1,2022,with an interest rate of 1.75%. The refunding achieved a net present value savings of 7.12% on the refunded bonds. The advance refunding achieved an aggregate debt service savings of$1,382,125 and an economic gain of$1,470,675. The refunded Series 2006 bonds have a redemption date of July 1,2016. 57 COLLIER COUNTY, FLORIDA 1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6—LONG-TERM DEBT—CONTINUED RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2010, 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds,the County has covenanted,subject to certain restrictions and limitations,to appropriate in its annual budget,by amendment if necessary,from non-ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds. According to County resolutions authorizing the issuance of the Series 2012 and 2014 Gas Tax Revenue Refunding Bonds,the issues are payable from and secured by liens on gas tax revenues. Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the repayment of the Agency's Series 2013 taxable note. The Agency has additionally covenanted to budget and appropriate from all legally available non-ad valorem revenues of the Agency to pay the Series 2013 note to the extent the tax increment revenues are insufficient. The Series 2013 note does not constitute an indebtedness of the County and is payable solely from the security provided by the Agency. The Agency is required to have a debt service reserve balance of$800,000 as of the end of fiscal year 2015. The Agency was in compliance with these covenants for the year ended September 30,2015. The County Water and Sewer District(District)has pledged future water and sewer customer revenues,net of certain operating expenses,to repay$88,873,818 in Series 2006,2009,2013 and 2015 revenue bonds. Proceeds from the bonds were used for rehabilitation or expansion of the District's water and sewer systems or for the refinancing of bonds issued for rehabilitation or expansion of the District's water and sewer systems. Principal and interest are payable through July 1, 2036, solely from the net revenues and certain other fees and charges derived from operation of the County's Water and Sewer District(District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds received shall be at least 125%of the annual debt service requirements for the bonds; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds. Fiscal year 2015 pledged revenues,net of operating expenses,were$43,242,167 and$55,893,517 when system development fees and special assessments were included. Principal and interest paid on the bonds during fiscal year 2015 totaled $9,712,547, providing coverage of 445%and 575%,respectively. In addition,bond covenants require a renewal and replacement amount equal to$300,000 in the District funds.The District was in compliance with these covenants for the year ended September 30,2015. The District has several State Revolving Fund loans outstanding with the Florida Department of Environmental Protection. These loans are collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien is subordinate in all respects to the liens placed upon pledged revenues established by bonded indebtedness. The District must maintain rates and charges for services which together with system development fees are sufficient to pay 115%to 125%, depending upon the individual loan agreement, of the annual debt service requirements on the loans, as well as satisfy the coverage requirements of all senior debt obligations. The District's State Revolving Fund loans were in compliance with these covenants for the year ended September 30,2015. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. 58 COLLIER COUNTY, FLORIDA I. A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 6—LONG-TERM DEBT—CONTINUED INTEREST CAPITALIZED Interest costs on the long-term debt of business-type activities,including capitalized leases,incurred and capitalized . during the year ended September 30,2015 were as follows: Total Interest Interest Cost Net Interest Cost Incurred Capitalized Expense Business-type Activities $ 6,350,919 $ 1,313,387 $ 5,037,532 Interest expense is shown as a direct expense of the Business-type Activities. LEASE OBLIGATIONS Capitalized leases payable at September 30, 2015 amounted to $2,593,462. These obligations, which are collateralized by equipment and vehicles,have total annual installments ranging from$59,406 to$964,620 including interest ranging from 1.83%to 4.82%and mature through 2022. As of year-end,equipment currently leased under capital leases in the governmental activities had a historical cost of$2,930,057 and accumulated depreciation of $855,945. Equipment currently leased under capital leases in the business-type activities had a historical cost of $1,678,920 and accumulated depreciation of$513,003. Future minimum capital lease obligations as of September 30,2015 were as follows: Governmental Business-type Activities Activities Total 2016 $ 663,211 $ 301,409 $ 964,620 2017 663,211 301,409 964,620 2018 92,887 258,705 351,592 2019 92,887 257,981 350,868 2020 87,622 - 87,622 2021-22 59,406 - 59,406 Total minimum lease payments 1,659,224 1,119,504 2,778,728 Less amount representing interest (139,729) (45,536) (185,265) Present value of minimum lease payments $ 1,519,495 $ 1,073,968 $2,593,463 The County also leases office space,office equipment and storage space under operating leases. These leases expire or are cancellable within the next fiscal year. In the normal course of operations,these leases will be renewed or replaced by other leases. Total rental expenditures for all operating leases within the governmental activities for the year ended September 30, 2015 were $1,317,915. Total rental expenditures for all operating leases within business-type activities governmental activities for the year ended September 30,2015 were$208,550. 59 COLLIER COUNTY, FLORIDA 1. 3 NOTES TO THE FINANCIAL STATEMENTS A SEPTEMBER 30, 2015 NOTE 7—CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority,all component units of Collier County,issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi-family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities.The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuer,nor the County,is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2015, the outstanding principal amount payable on all component unit conduit debt was $438,847,215 and is made up of the following: Industrial development revenue bonds $ 215,190,000 Housing finance revenue bonds 27,587,215 Health facilities revenue bonds 105,330,000 Educational facilities revenue bonds 90,740,000 Total $ 438,847,215 NOTE 8—DEFEASED DEBT The County has defeased certain outstanding bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the defeased debt. Accordingly,the trust accounts and the defeased bonds are not included in the County's financial statements. At September 30,2015 the following issues were considered defeased: Original Debt Defeased Bonds Governmental Activities Defeased Outstanding 1986 Capital Improvement Program Revenue Bonds, Sub-Series 5 Mode A $ 12,245,000 $ 1,025,000 Total Governmental Activities Defeased Debt $ 12,245,000 $ 1,025,000 Original Debt Defeased Bonds Business-type Activities Defeased Outstanding 2006 County Water and Sewer Revenue Bonds $ 50,005,000 $ 50,005,000 Total Business-type Activities Defeased Debt $ 50,005,000 $ 50,005,000 60 COLLIER COUNTY, FLORIDA " 7 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9—DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1,2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy(HIS)Program,a cost-sharing multiple-employer defined benefit pension plan,to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122,Florida Statutes;Chapter 112,Part IV,Florida Statutes;Chapter 238,Florida Statutes;and FRS Rules,Chapter 60S,Florida Administrative Code;wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS,which includes its financial statements,required supplementary information,actuarial report,and other relevant information, is available from the Florida Department of Management Services' web site (www.dms.mvflorida.com). The County's pension expense totaled$12,733,272 for both the FRS Pension Plan and HIS Plan for the year ended September 30,2015. FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan(FRS Plan)is a cost-sharing multiple-employer defined benefit pension plan,with a Deferred Retirement Option Program(DROP)for eligible employees. The general classes of membership are as follows: Regular Class—Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class—Members who hold specified elective offices in local government. Senior Management Service Class(SMSC)—Members in senior management level positions. Special Risk Class—Members who are special risk employees,such as law enforcement officers,meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1,2011,vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1,2011,vest at 8 years of creditable service. All vested members,enrolled prior to July 1,2011,are eligible for normal retirement benefits at age 62 or at any age after 30 years of service,except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1,2011,once vested,are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service,except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision;however,there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement,disability,death benefits,and annual cost-of-living adjustments to eligible participants. 61 1 + 3 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9—DEFINED BENEFIT PENSION PLANS—CONTINUED DROP,subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate,except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation,deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service,average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1,2011,the average final compensation is the average of the 5 highest fiscal years' earnings;for members initially enrolled on or after July 1,2011,the average final compensation is the average of the 8 highest fiscal years'earnings. The total percentage value of the benefit received is determined by calculating the total value of all service,which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. The following chart shows the percentage value for each year of service credit earned: Class,Initial Enrollment and Retirement Age/Years of Service: %Value Regular Class members initially enrolled before July 1,2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement up to age 63 or with 31 years of service 1.63 Retirement up to age 64 or with 32 years of service 1.65 Retirement up to age 65 or with 33 or more years of service 1.68 Regular Class members initially enrolled after July 1,2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement up to age 66 or with 34 years of service 1.63 Retirement up to age 67 or with 35 years of service 1.65 Retirement up to age 68 or with 36 or more years of service 1.68 Elected County Officers 3.00 Senior Management Service Class 2.00 Special Risk Regular Service from December 1,1970 through September 30,1974 2.00 Service on and after October 1,1974 3.00 As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1,2011,the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1,2011,will not have a cost-of-living adjustment after retirement. CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3%employee contributions on a pretax basis.The employer contribution rates by job class for the periods from October 1,2014 through June 30,2015 and from July 1,2015 through September 30,2015,respectively,were as follows: Regular employees-7.37%and 7.26%; County Elected Officials-43.24% and 42.27%; Senior Management Services-21.14% and 21.43%; and DROP participants-12.28%and 18.75%.The County's contributions to the FRS Plan were$17,830,147 for the year ended September 30,2015. 62 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9—DEFINED BENEFIT PENSION PLANS—CONTINUED PENSION COSTS At September 30, 2015,the County reported a liability of$95,078,054 for its proportionate share of the FRS Plan's net pension liability.The net pension liability was measured as of June 30,2015,and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The County's proportion of the net pension liability was based on the County's contributions received by FRS during the measurement period for employer payroll paid dates from July 1,2014,through June 30,2015,relative to the total employer contributions received from all of FRS's participating employers.At June 30,2015,the County's proportion was 0.736107%,which was an increase of 0.032452%from its proportion measured as of June 30,2014. For the year ended September 30,2015,the County recognized pension expense of$7,523,684 for its proportionate share of FRS's pension expense.In addition,the County reported its proportionate share of FRS's deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences Between Expected and Actual Economic Experience $ 10,037,428 $ 2,254,962 Changes in Actuarial Assumptions 6,310,649 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 22,703,048 Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 5,585,758 1,659,713 County Contributions Subsequent to the Measurement Date 4,207,785 - Total $ 26,141,620 $ 26,617,723 Deferred outflows of resources related to pensions of$4,207,785, resulting from County contributions to the FRS Plan subsequent to the measurement date,will be recognized as a reduction of the net pension liability in the year ended September 30, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase(decrease)in pension expense as follows: Year Ended September 30 Amount 2016 $ (6,795,255) 2017 (6,795,255) 2018 (6,795,255) 2019 11,935,469 2020 2,957,172 Thereafter 809,236 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions,applied to all periods included in the measurement: Inflation 2.60%per year Salary Increases 3.25%Average, Including Inflation Investment Rate of Return 7.65%,Net of Pension Plan Investment Expense, Including Inflation 63 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9—DEFINED BENEFIT PENSION PLANS—CONTINUED Mortality rates were based on the Generational RP-2000 with Projection Scale BB.The actuarial assumptions used in the July 1,2015,valuation were based on the results of an actuarial experience study for the period July 1,2008, through June 30,2014. The long-term expected rate of return on pension plan investments was not based on historical returns,but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation,as outlined in the FRS Plan's investment policy,and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation Return Return Deviation Cash 1.0% 3.2% 3.1% 1.7% Fixed income 18.0% 4.8% 4.7% 4.7% Global equity 53.0% 8.5% 7.2% 17.7% Real estate(property) 10.0% 6.8% 6.2% 12.0% Private Equity 6.0% 11.9% 8.2% 30.0% Strategic investments 12.0% 6.7% 6.1% 11.4% Totals 100.0% Assumed Inflation-Mean 2.6% 1.9% DISCOUNT RATE The discount rate used to measure the total pension liability was 7.65%for the FRS Plan.The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute.Based on that assumption,each of the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the FRS Plan,calculated using the discount rate disclosed in the preceding paragraph,as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1%Decrease in Current Discount 1%Increase in Description Discount Rate Rate Discount Rate FRS Plan Discount Rate 6.65% 7.65% 8.65% County's Proportionate Share of the FRS Plan Net Pension Liability $246,368,741 $ 95,078,054 $ (30,820,648) 64 13A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9—DEFINED BENEFIT PENSION PLANS—CONTINUED PENSION PLAN FIDUCIARY NET POSITION Detailed information about the FRS Plan's fiduciary's net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at http://www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program(HIS Plan)is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. BENEFITS PROVIDED For the fiscal year ended June 30,2015,eligible retirees and beneficiaries received a monthly HIS payment of$5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of$30 and a maximum HIS payment of$150 per month, pursuant to Section 112.363,Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage,which may include Medicare. CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rate rates include a 1.20%and 1.26%HIS Plan subsidy for the periods October 1, 2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015, respectively, pursuant to Section 112.363, Florida Statues. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County's contributions to the HIS Plan were$2,614,704 for the year ended September 30,2015. PENSION COSTS At September 30,2015,the County reported a liability of$65,574,171 for its proportionate share of the HIS Plan's net pension liability.The net pension liability was measured as of June 30,2015,and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The County's proportion of the net pension liability was based on the County's contributions received during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all participating employers.At June 30,2015,the County's proportion was 0.642983%, which was an increase of 0.021597%from its proportion measured as of June 30,2014. For the year ended September 30,2015,the County recognized pension expense of$5,209,587 for its proportionate share of HIS's pension expense. In addition,the County reported its proportionate share of HIS's deferred outflows of resources and deferred inflows of resources from the following sources: 65 COLLIER COUNTY, FLORIDA ,�, 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9—DEFINED BENEFIT PENSION PLANS—CONTINUED Deferred Outflows Deferred Inflows Description of Resources of Resources Differences Between Expected and Actual Economic Experience $ - $ - Changes in Actuarial Assumptions 5,158,975 Net Difference Between Projected and Actual Earnings on HIS Program Investments 35,497 - Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 2,054,403 97,589 County Contributions Subsequent to the Measurement Date 742,848 Total $ 7,991,723 $ 97,589 Deferred outflows of resources related to pensions of$742,848,resulting from County contributions to the FRS Plan subsequent to the measurement date,will be recognized as a reduction of the net pension liability in the year ended September 30,2016.Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ended September 30 Amount 2016 $ 1,222,743 2017 1,222,743 2018 1,222,743 2019 1,215,528 2020 1,212,065 Thereafter 1,055,464 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions,applied to all periods included in the measurement: Inflation 2.60%per year Salary Increases 3.25%Average,Including Inflation Municipal Bond Rate 3.80% Mortality rates were based on the Generational RP-2000 with Projection Scale BB.The actuarial assumptions used in the July 1,2015,valuation were based on the results of an actuarial experience study for the period July 1,2008, through June 30,2014. DISCOUNT RATE The discount rate used to measure the total pension liability was 3.80%for the HIS Plan. In general,the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. 1%Decrease in Current Discount 1%Increase in Description Discount Rate Rate Discount Rate HIS Plan Discount Rate 2.80% 3.80% 4.80% Authority's Proportionate Share of the HIS Plan Net Pension Liability $ 74,718,716 $ 65,574,172 $ 57,948,994 66 COLLIER COUNTY, FLORIDA 1 3A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 9—DEFINED BENEFIT PENSION PLANS—CONTINUED PENSION PLAN FIDUCIARY NET POSITION Detailed information about the HIS Plan's fiduciary's net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at http://www.dms.myflorida.com. NOTE 10—DEFINED CONTRIBUTION PLAN The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan(Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions,including amounts contributed to individual member's accounts,are defined by law,but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class(Regular Class, Elected County Officers,etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan,including the FRS Financial Guidance Program,are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. The County's Investment Plan pension expense totaled $4,408,500 for the year ended September 30, 2015. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan,the member must have the years of service required for FRS Pension Plan vesting(including the service credit represented by the transferred funds)to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period,the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA;however,management believes that these amounts,if any,would be immaterial to the County. After termination and applying to receive benefits,the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution,leave the funds invested for future distribution,or any combination of these options. Disability coverage is provided;the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan,or remain in the Investment Plan and rely upon that account balance for retirement income. 67 1 3 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 11—TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from(2)move receipts restricted to debt service to the debt service fund as payments become due, (3) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations or(4)permanent transfer of advances that are not expected to be repaid in the near future. Transfers for the year ended September 30,2015 were as follows: Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Nonmajor Governmental Funds $ 76,753,876 Solid Waste Disposal 41,510 Nonmajor Business-type 18,009,871 Bayshore Gateway Community Redevelopment Agency Nonmajor Governmental Funds 905,700 Immokalee Community Redevelopment Agency Nonmajor Governmental Funds 192,708 Nonmajor Governmental Funds General Fund 3,546,453 Bayshore Gateway Community Redevelopment Agency 136,800 lmmoka lee Community Redevelopment Agency 76,000 Nonmajor Governmental Funds 106,894,939 County Water and Sewer 404,512 Nonmajor Business-type 1,797,537 Business-type Activities: County Water and Sewer General Fund 5,203,400 Nonmajor Governmental Funds 218,500 Solid Waste Disposal 45,300 Solid Waste Disposal General Fund 609,393 County Water and Sewer 114,268 Nonmajor Business-type General Fund 8,641 Nonmajor Governmental Funds 3,000 Internal Service Funds General Fund 1,276,600 Nonmajor Governmental Funds 200,000 Total Operating Transfers $ 216,439,008 68 13A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 12—NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets,net of debt issued in the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for grants: State and federal government grant monies restricted for grant related purposes. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long-term debt. Restricted for nonexpendable purposes—other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues—other: Balances are restricted for specific uses associated with the revenue collected. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bonds. The use of monies in the renewal and replacement fund is restricted to funding the cost of additions,replacement or major repair of water and wastewater capital assets. Unrestricted:Balances are not restricted for specific purposes. Governmental funds report fund balances as either spendable or non-spendable. Spendable fund balances are further classified as restricted, committed, assigned or unassigned depending upon the extent to which there are external or internal constraints on the spending of these fund balances. Non-spendable fund balance:Amounts that are not in spendable form or that are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances,loans and notes receivable. 69 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 12—NET POSITION/FUND BALANCE CLASSIFICATION—CONTINUED Spendable fund balance: Restricted fund balance — Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors;or imposed by law through constitutional provisions or enabling legislation. Committed fund balance—Amounts that can be spent only for specific purposes determined by the County's highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance — Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners,but that are neither restricted nor committed to the specific purpose. Unassigned fund balance—Unassigned fund balance is the residual classification for the County's general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available,the County spends the restricted amounts first,unless prohibited by law,grant agreements or other contractural arrangement. Further,when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. 70 1 3 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 12—NET POSITION/FUND BALANCE CLASSIFICATION—CONTINUED A detailed schedule of fund balances at September 30,2015 is as follows: Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Nonspendable: Endowments $ - $ - $ - $ 1,582,800 $ 1,582,800 Advances 711,800 - - 528,901 1,240,701 Notes 1,623,781 - - - 1,623,781 Inventory 1,144,635 - - 922,450 2,067,085 Prepaid costs 66,169 - - 77,600 143,769 Total nonspendable fund balance 3,546,385 - - 3,111,751 6,658,136 Restricted for: Community redevelopment - 12,448,739 - - 12,448,739 Federal and state grants 344,611 - - 6,492,651 6,837,262 Bond covenants or debt service - - - 9,751,048 9,751,048 Transportation growth related capital - - - 53,212,385 53,212,385 Parks growth related capital expansion - - - 17,823,101 17,823,101 Transportation capital projects - - - 31,146,406 31,146,406 Community development - - - 33,797,316 33,797,316 Transportation operations - - - 2,701,194 2,701,194 Tourist development - - - 59,643,088 59,643,088 Conservation Collier - - - 33,795,298 33,795,298 Emergency 911 - - 5,157,790 5,157,790 Law Enforcement - - - 9,422,582 9,422,582 Fire services growth related capital - - - 65,079 65,079 Government facilities growth capital - - - 2,430,165 2,430,165 Libraries growth related capital - - - 1,043,343 1,043,343 Court functions - - - 7,833,160 7,833,160 Public Records Modernization - - - 4,909,801 4,909,801 Other purposes - - - 1,608,014 1,608,014 Total restricted fund balance 344,611 12,448,739 - 280,832,421 293,625,771 Committed for: Special districts - - - 21,856,442 21,856,442 Natural resource management - - - 2,126,587 2,126,587 Utility regulation - - - 1,316,464 1,316,464 Other purposes - - - 363,166 363,166 Total committed fund balance - - - 25,662,659 25,662,659 Assigned for: Parks and recreation - - - 4,443,926 4,443,926 General building&improvements - - - 9,581,141 9,581,141 Water management - - - 13,332,196 13,332,196 Libraries - - - 646,886 646,886 Other purposes 1,298,463 - - 2,796,170 4,094,633 Total assigned fund balance 1,298,463 - - 30,800,319 32,098,782 Unassigned: 55,002,184 - (59,425) (454,228) 54,488,531 Total Fund Balances $60,191,643 $ 12,448,739 $ (59,425) $ 339,952,922 $ 412,533,879 71 13 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 13—RISK MANAGEMENT The County is exposed to various risks of loss related to tort;theft of,damage to and destruction of assets;errors and omissions; injuries to employees and natural disasters. A self-insurance internal service fund is maintained by the County to administer insurance activities relating to workers'compensation, health and property and casualty,which covers general,property,auto,public official and crime liabilities. The County self-insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self-insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self-insurance fund and for all other covered risks of loss. Claim Type County's Coverage Excess Carrier's Coverage Property and casualty claims $50,000-$500,000 $50,000-$75,000,000 (5%Named Storm) Auto liability claims $300,000 $300,000-$5,000,000 Employee health claims $325,000 $325,000-Unlimited Workers'compensation claims $500,000 $500,000-Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30,2015 the operating departments were charged$36,909,612 for workers'compensation,health and property and casualty self-insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of$4,789,434 reported at September 30,2015 was calculated by third party actuaries based upon GASB Statement 30,Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.5%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of$3,533,441 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self-Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self-Insurance Fund provides liability insurance coverage subject to the following limitations:$5,000,000 for any one incident or occurrence and$10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self-Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self-insurance fund providing coverage for the first $500,000 of every claim. Re-insurance is provided through a third party insurer for all claims exceeding$500,000 up to$10,000,000. Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self-Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. 72 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 13—RISK MANAGEMENT—CONTINUED The Sheriff has also established a self-funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding$200,000. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The claims loss reserve for health of $2,170,000 reported at September 30, 2015 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability. CHANGES IN SELF-INSURANCE CLAIMS PAYABLE Changes in the self-insurance claims payable for fiscal years 2014 and 2015 were as follows for the County and Sheriff self-insurance programs: Property and Group Workers' Casualty Health Compensation Total Balance at September 30,2013 $ 821,779 $ 6,452,000 $ 855,099 $ 8,128,878 Current year claims incurred and changes in estimates 1,371,715 43,165,938 226,887 44,764,540 Claim payments (1,084,859) (44,748,938) (486,793) (46,320,590) BalanceatSeptember 30,2014 $ 1,108,635 $ 4,869,000 $ 595,193 $ 6,572,828 Current year claims incurred and changes in estimates 1,004,390 50,779,519 460,864 52,244,773 Claim payments (1,258,999) (50,084,519) (514,649) (51,858,167) Balance at September 30,2015 $ 854,026 $ 5,564,000 $ 541,408 $ 6,959,434 NOTE 14—OTHER POSTEMPLOYMENT BENEFITS Plan Description—The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan. The participants of this plan include retirees of the Board of County Commissioners,the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. In accordance with Florida Statute 112.0801,employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The plan does not issue a separate financial report. The Board of County Commissioners and the Tax Collector administer an additional single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. The Board offers an OPEB Plan that subsidizes the cost of health care for its retirees who have at least 60%of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition,the retiree must retire from the Board,be at least 55 years of age or have completed 30 years of service under the Florida Retirement System(FRS)and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50%to 100%subsidy toward the cost of coverage under the active plan. A subsidy is currently provided to fourteen retirees. The Tax Collector offers an OPEB plan that subsidizes 100%the cost of health care for employees with 10 years of service,between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement. At September 30,2015,the date of the latest actuarial valuation,County plan participation consisted of: OPEB plan participants 2,107 Retirees receiving benefits 70 73 i 3 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 14—OTHER POSTEMPLOYMENT BENEFITS—CONTINUED Funding Policy-The County has the authority to establish and amend funding policy.For the year ended September 30,2015,the County contributed$831,869 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation-The annual cost of the County's OPEB Plan is calculated based on the Annual Required Contribution(ARC),an amount actuarially determined in accordance with the parameters of GASB Statement No.45.The ARC represents a level of funding that, if paid on an ongoing basis,is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County's annual OPEB Plan cost for the year, the amount actually contributed,and the changes in the net OPEB Plan obligation. 2015 2014 2013 Annual required contribution(ARC) $ 825,046 $ 816,457 $ 749,470 Interest on net OPEB obligation 25,484 25,017 19,502 Adjustment to ARC (42,077) (41,306) (32,200) Annual OPEB cost 808,453 800,168 736,772 Contributions made (831,869) (784,612) (552,929) Increase(decrease)in net OPEB obligation (23,416) 15,556 183,843 Net OPEB obligation-beginning of year 849,469 833,913 650,070 Net OPEB obligation-end of year $ 826,053 $ 849,469 $ 833,913 Percentage of annual OPEB cost contributed 98% 98% 75% Funded Status and Funding Progress-As of the September 30,2014 actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was$6,977,743,and the actuarial value of plan assets was$0, resulting in an unfunded actuarial accrued liability(UAAL) of$6,977,743. As of the September 30, 2015 actuarial valuation date the OPEB Plan was 0.0%funded and the actuarial accrued liability for benefits was$7,178,976, and the actuarial value of plan assets was$0, resulting in a UAAL of$7,178,976. The covered payroll(annual payroll of active employees covered by the OPEB Plan)was$160.4 million, and the ratio of the UAAL to the covered payroll was 4.4%. Actuarial Methods and Assumptions - 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 the healthcare cost trend. Amounts determined regarding the funded status of the 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. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future.Actuarial calculations reflect a long-term perspective. Consistent with that perspective, 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. 74 COLLIER COUNTY, FLORIDA 1 3A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 14—OTHER POSTEMPLOYMENT BENEFITS—CONTINUED The actuarial methods and assumptions are: Actuarial cost method Projected Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years,Open Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 6%for the 2016 fiscal year grading to an ultimate rate of 5%for the 2022 fiscal year Plan Description -The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidizes the cost of health care for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20%for both single and family coverage for qualifying individuals. In 2010,the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. The plan does not issue a separate financial report. At September 30,2015,the date of the latest actuarial valuation,Sheriff plan participation consisted of: OPEB plan participants 1,138 Retirees receiving benefits 104 Funding Policy-The Sheriff has the authority to establish and amend funding policy. For the year ended September 30,2015,the Sheriff contributed$742,376 to the OPEB Plan. No trust or agency fund has been established for the plan. Annual OPEB Cost and Net OPEB Obligation-The annual cost of the Sheriff's OPEB Plan is calculated based on the Annual Required Contribution(ARC),an amount actuarially determined in accordance with the parameters of GASB Statement No.45.The ARC represents a level of funding that, if paid on an ongoing basis,is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the Sheriff's annual OPEB Plan cost for the year, the amount actually contributed,and the changes in the net OPEB Plan obligation. 2015 2014 2013 Annual required contribution(ARC) $1,262,077 $1,138,923 $1,151,695 Interest on net OPEB obligation 50,437 40,348 31,444 Adjustment to ARC (83,277) (66,618) (51,918) Annual OPEB cost 1,229,237 1,112,653 1,131,221 Contributions made (742,376) (776,332) (834,442) Increase in net OPEB obligation 486,861 336,321 296,779 Net OPEB obligation-beginning of year 1,681,238 1,344,917 1,048,138 Net OPEB obligation-end of year $2,168,099 $1,681,238 $1,344,917 Percentage of annual OPEB cost contributed 70% 70% 73% 75 1 3 A COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 14—OTHER POSTEMPLOYMENT BENEFITS—CONTINUED Funded Status and Funding Progress-As of the September 30, 2014 actuarial valuation date, the OPEB Plan was 0.0%funded,the actuarial accrued liability for benefits was$14,207,209, and the actuarial value of assets was$0, resulting in an unfunded actuarial accrued liability(UAAL)of$14,207,209. As of the September 30,2015 actuarial valuation date,the OPEB Plan was 0.0%funded,the actuarial accrued liability for benefits was$15,133,114,and the actuarial value of assets was$0, resulting in a UAAL of$15,133,114. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was $117.6 million, and the ratio of the UAAL to the covered payroll was 12.9%. Actuarial Methods and Assumptions - 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 the healthcare cost trend. Amounts determined regarding the funded status of the 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. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future.Actuarial calculations reflect a long-term perspective. Consistent with that perspective, 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. The actuarial methods and assumptions are: Actuarial cost method Projected Unit Credit Actuarial Cost Amortization method Level Dollar Amount Amortization period 30 years,Closed Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 8%for the 2016 fiscal year grading to an ultimate rate of 5%for the 2022 fiscal year NOTE 15—LANDFILL LIABILITY On May 1,1995 the County entered into a landfill operating agreement with a third party for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital improvements,closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989.The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement 18,Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs,a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any increase due to inflation,changes in technology or additional postclosure care requirements will be recorded as a current cost. 76 COLLIER COUNTY, FLORIDA 1 3A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 16—SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here,will not materially affect the financial position of the County. During fiscal year 2012, the Federal Emergency Management Agency (FEMA) made a decision to de-obligate $11,172,273 in sand replacement costs previously reimbursed by the Agency to Collier County. The reimbursed costs were related to a project to repair beach erosion due to Hurricanes Katrina and Wilma. The decision to de- obligate the funding is currently under appeal by Collier County. Due to the uncertainty of an appeal, and based upon the opinion of legal counsel,a liability was recorded in the amount of$11,172,273. In fiscal year 2014,Collier County received notification of FEMA's decision to reinstate$1,853,756 of funding as a result of the first round of appeals. In fiscal year 2015,the county's second round of appeals was successful and an additional $7,760,504 in funding was reinstated. The remaining balance of $1,558,013 is recorded as a liability in both the entity wide financial statements and the tourist development fund financial statements of Collier County. The Board has been named as a defendant in three related lawsuits, styled Francis Hussey, et al v. Collier County, Case No.08-6933-CA;Board of County Commissioners v.Francis D.Hussey,et al.,Case No.08-6988-CA consolidated with 08-6933-CA;and Sean Hussey,et al.v.Collier County,et al.,Case No.08-7025-CA. On September 11,2008,the Plaintiffs,Francis D. Hussey,Jr.and Mary P. Hussey,husband and wife,and Winchester Lakes Corporation,a Florida corporation, filed an inverse condemnation suit seeking monetary damages from Collier County, Florida, the Honorable Charlie Crist,the Governor of the State of Florida and the Florida Department of Community Affairs. The Husseys contend that the designation of certain real property owned by them through a growth management plan amendment adopted in 2002 had the effect of precluding mining activities on their property,thereby resulting in a substantial diminution in value of the real estate,which the Plaintiffs contend to be compensable under Florida law. The complaint alleges current damage claims in the amount of$91,500,000. The Plaintiffs have also presented a claim for"inverse condemnation based on a regulatory taking of plaintiffs'property,"in an amount not specified in the complaint. The Wildlife Federation and Collier County Audubon Society were granted leave to intervene in the suit by the Court on April 29, 2009. On July 9, 2009, the Florida Wildlife Federation and Collier County Audubon Society served upon defendants Francis and Mary Hussey a Notice of Intent to Sue over violations of the Endangered Species Act of 1973(16 U.S.C. 1531 et seq.) The initial cases were dismissed with prejudice in February 2011 by the trial court and are now on appeal to the Second District Court of Appeals. Pending the outcome of the first appeal, the parties entered into a Settlement Agreement with no costs to be incurred by the County. The Bert Harris Act statute requires Court approval of the Settlement Agreement which approval was denied by the Circuit Court Judge. The denial of this Settlement Agreement is now also on appeal at the Second District Court of Appeal. The Second District Court affirmed denial of the Settlement Agreement. The Second District Court reversed dismissal of the Bert Harris Act claim and affirmed dismissal of the inverse condemnation claim. The County is currently awaiting the Second District Court of Appeal's ruling on the parties' Post Opinion Motions. Given the proposed Settlement Agreement(filed October 1,2015),the County believes that this litigation will be concluded with no risk of liability to the County. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience,the County does not believe that such disallowances,if any,would have a material effect on the financial position of the County. The Clerk's office is aware of inquiries being conducted by various grantor agencies. The impact to the financial statements,if any,is unknown and therefore unable to be calculated at this time. 77 COLLIER COUNTY, FLORIDA 1 3 A NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 16—SIGNIFICANT CONTINGENCIES—CONTINUED ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. There was no arbitrage rebate liability as of September 30,2015. NOTE 17—SIGNIFICANT COMMITMENTS Encumbrances represent commitments for future expenditures,based on purchase orders or contracts issued, where the goods or services have been order but not received. Encumbrance commitments do not include construction contracts,as they are included as contract commitments. Collier County has the following encumbrances as of September 30,2015: Encumbrance Category Commitments Governmental Activities: General Fund General Government $ 636,637 Public Safety 40,592 Economic Environment 129,000 Human Services 129,848 Culture and Recreation 93,887 Bayshore Gateway Community Redevelopment Agency Economic Environment 15,735 I mmoka I ee CRA Economic Environment 12,232 Other Governmental Funds General Government 1,682,104 Public Safety 4,423,732 Physical Environment 4,281,737 Transportation 4,622,343 Economic Environment 5,163,099 Human Services 1,452,341 Culture and Recreation 2,439,151 Business-type Activities: Water and Sewer Utilities 24,491,974 Solid Waste Disposal Landfill 901,983 Other Enterprise Funds Emergency Medical Services 313,680 Airports 17,092 Mass Transit 1,996,282 Total $ 52,843,449. 78 1 A COLLIER COUNTY, FLORIDA 3 NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 17—SIGNIFICANT COMMITMENTS—CONTINUED Collier County has active construction projects as of September 30, 2015. The projects include road construction, governmental facilities and utilities improvements. At year end,the County's commitments with contractors include the following: Construction Category Commitments Governmental Activities: Immokalee Community Redevelopment Agency Economic Environment $ 177,510 Other Governmental Funds Public Safety 1,390,115 Physical Environment 2,655,899 Transportation 40,648,433 Culture and Recreation 1,000,373 Business-type Activities: Water and Sewer Utilities 14,804,386 Solid Waste Disposal Landfill 591,589 Other Enterprise Funds Airports 121,728 Mass Transit 1,454,509 Total $ 62,844,542 NOTE 18—FUND DEFICITS The following funds had fund balance deficits at September 30,2015: Fund Amount Immokalee Community Redevelopment Agency $ (59,425) Fire Control Districts (454,228) Total $ (513,653) The fund balance deficits are the result of advances from other funds made prior to September 30, 2015. These advances were recorded to ensure repayment of monies loaned primarily for the acquisition of a fire station. County management anticipates that the deficits will be covered by future years'revenues. 79 COLLIER COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 NOTE 19—CHANGE IN ACCOUNTING PRINCIPLE During the year ended September 30,2015,the County adopted GASB Statement No.68 Accounting and Financial Reporting for Pensions, and the related GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68.These pronouncements require the restatement of the September 30, 2014 net position of the governmental activities and proprietary funds as follows: Business-type Activities Enterpri se Funds Governmental Activities- Governmental Business-Type County Water Solid Waste Internal Service Activities Activities and Sewer Disposal Other Funds Funds Net Position,September 30,2014,as Previously Reported $1,600,910,225 $920,233,550 $799,763,895 $49,809,654 $68,957,822 $ 55,864,001 Cumulative Affect of Application of GASB 68: Net Pension Liability as of September 30, (84,865,427) (16,168,963) (7,782,595) (676,326) (7,710,042) (1,888,731) Deferred Outflow of Resources for Unamortized Pension Costs as of September 30,2014 13,896,713 2,402,902 945,803 80,475 1,376,624 245,469 Deferred Inflow of Resources for Unamortized Pension Costs as of September 30,2014 (63,207,464) (13,003,532) (4,581,115) (384,435) (8,037,982) (1,238,621) September 30,2014, as Restated $1,466,734,047 $893,463,957 $788,345,988. $48,829,368 $54,586,422 $ 52,982,118 80 13A REQUIRED SUPPLEMENTARY INFORMATION 1 3 : THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION I 3 A COLLIER COUNTY,FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS* 2015 2014 County's Proportion of the Net Pension Liability 0.736106708% 0.703655077% County's Proportionate Share of the Net Pension Liability $ 95,078,054 $ 42,933,306 County's Covered-Employee Payroll $ 140,176,971 $ 132,386,835 County's Proportionate Share of the Net Pension Liability(Asset)as a Percentage of Its Covered-Employee Payroll 67.83% 32.43% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 92.00% 96.09% SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS* 2015 2014 Contractually Required Contribution $ 17,830,147 $ 17,287,796 Contributions in Relation to the Contractually Required Contribution (17,830,147) (17,287,796) Contribution Deficiency(Excess) $ - $ - County's Covered-Employee Payroll FY $ 139,443,152 $ 133,436,828 Contributions as a Percentage of Covered Employee Payroll 12.79% 12.96% SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS* 2015 2014 County's Proportion of the Net Pension Liability 0.642983194% 0.621385755% County's Proportionate Share of the Net Pension Liability $ 65,574,171 $ 58,101,084 County's Covered-Employee Payroll $ 195,154,275 $ 184,577,284 County's Proportionate Share of the Net Pension Liability(Asset)as a Percentage of Its Covered-Employee Payroll 33.60% 31.48% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 0.50% 0.99% SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS* 2015 2014 Contractually Required Contribution $ 2,614,704 $ 2,131,155 Contributions in Relation to the Contractually Required Contribution (2,614,704) (2,131,155) Contribution Deficiency(Excess) $ - $ County's Covered-Employee Payroll FY $ 193,543,352 $ 185,505,694 Contributions as a Percentage of Covered Employee Payroll 1.35% 1.15% "The Amounts Presented for Each Fiscal Year were Determined as of June 30. Note:Information is required to be presented for 10 years. However,until a full 10-year trend is compiled,the County will pre for which information is available. 83 REQUIRED SUPPLEMENTARY INFORMATION 1., 34 COLLIER COUNTY,FLORIDA OTHER POSTEMPLOYMENT BENEFITS SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN Actuarial Accrued UAAL as a Actuarial Actuarial Liability(AAL)- Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL(UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2009 $ - $ 5,814,470 $ 5,814,470 0.0% $ 112,828,491 5.2% (Non-Sheriff) Board and Constitutionals 10/1/2010 - 5,825,874 5,825,874 0.0% 105,458,501 5.5% (Non-Sheriff) Board and Constitutionals 10/1/2011 - 6,564,292 6,564,292 0.0% 106,554,662 6.2% (Non-Sheriff) Board and Constitutionals 10/1/2012 - 6,650,672 6,650,672 0.0% 105,433,555 6.3% (Non-Sheriff) Board and Constitutionals 10/1/2013 - 7,093,909 7,093,909 0.0% 102,713,900 6.9% (Non-Sheriff) Board and Constitutionals 10/1/2014 - 6,977,743 6,977,743 0.0% 109,906,269 6.3% (Non-Sheriff) Board and Constitutionals 10/1/2015 - 7,178,976 7,178,976 0.0% 116,579,554 6.2% (Non-Sheriff) Sheriff 10/1/2009 - 14,171,709 14,171,709 0.0% 123,296,677 11.5% Sheriff 10/1/2010 - 12,148,033 12,148,033 0.0% 117,879,632 10.3% Sheriff 10/1/2011 - 12,018,242 12,018,242 0.0% 114,185,572 10.5% Sheriff 10/1/2012 - 13,291,909 13,291,909 0.0% 108,390,240 12.3% Sheriff 10/1/2013 - 13,141,022 13,141,022 0.0% 107,204,015 12.3% Sheriff 10/1/2014 - 14,207,209 14,207,209 0.0% 112,902,749 12.6% Sheriff 10/1/2015 - 15,133,114 15,133,114 0.0% 117,563,839 12.9% 84 COMBINING AND INDIVIDUAL 13A FUND FINANCIAL STATEMENTS AND OTHER SUPPLEMENTAL INFORMATION 13A THIS PAGE INTENTIONALLY LEFT BLANK 3 A Nonmajor Governmental Funds Special Revenue Funds ROAD DISTRICTS—To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT — To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT—To account for building permit and development fees to support licensing,permitting and inspection services. WATER MANAGEMENT AND POLLUTION CONTROL —To account for taxes levied County-wide to provide water resource management and water pollution control. GRANTS AND SHARED REVENUES—To account for the revenues received from federal,state and local grants. IMPROVEMENT DISTRICTS — To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS—To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICTS—To account for taxes levied within municipal service taxing district for street lighting. 911 ENHANCEMENT FEE — To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT—To account for the 4%tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP—To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND — To account for moving traffic violation surcharges received to fund the County's intergovernmental radio communications program. STATE COURT ADMINISTRATION—To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY—To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS — To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads,facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE—To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER—To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY —To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES—To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION—To account for fund accumulation to meet the educational goals of the Collier County UF/IFAS extension. COURT FACILITIES FEE—To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING—To account for fees to be used to provide for affordable housing related projects. OTHER COURT SPECIAL REVENUE FUNDS—To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS—To account for the accumulation of resources for the Sheriff's Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare,crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS—To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment Adoption Awareness Legal Aid Society Teen Court Law Enforcement Training Animal Control Domestic Violence Public Library Juvenile Assessment Center Law Library Driver Education Freedom Memorial Crime Prevention County Drug Abuse Permanent Fund RESOURCE RECOVERY PARK ENDOWMENT—To account for the permanent endowment established for the benefit of the County's land conservation program. Debt Service Funds RADIO ROAD EAST LIMITED GENERAL OBLIGATION BONDS-To account for the accumulation of resources, surety reserve and payment of interest and principal on the Radio Road East limited general obligation bonds. CONSERVATION COLLIER LIMITED GENERAL OBLIGATION BONDS—To account for the accumulation of resources and payment of interest and principal on long-term debt incurred for the acquisition of environmentally sensitive lands. COMMUNITY REDEVELOPMENT TAXABLE NOTE—To account for the accumulation of resources and payment of interest and principal on taxable long-term debt incurred for the acquisition of land in the Bayshore/Gateway Community Redevelopment Agency. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS—To account for the accumulation of resources and payment of interest and principal on long-term debt incurred on the Forest Lakes Limited General Obligation Bonds. SPECIAL OBLIGATION REVENUE BONDS—To account for the accumulation of resources and payment of interest and principal on long-term debt incurred in the refinancing of various outstanding variable rate commercial paper loans. OTHER DEBT SERVICE —To account for the accumulation of resources and payment of interest and principal on variable rate commercial paper loans and special assessment debt incurred in the Naples Park area. Capital Project Funds 3 COUNTY-WIDE CAPITAL IMPROVEMENTS — To account for capital projects, designated by the Board of County Commissioners,to be funded by a County-wide one third mil levy. PARKS IMPROVEMENTS—To account for the expenditure of funds raised specifically for improvements to parks. Projects include land acquisition, design, construction and equipping of certain Community Park sites in the unincorporated areas of the County.Primary funding is ad valorem taxes. COUNTY-WIDE LIBRARY IMPACT FEES—To account for the receipt and expenditure of library impact fees collected from all qualifying new construction.These impact fees must be used for acquisition of County-wide library facilities. CORRECTIONAL FACILITIES IMPACT FEES—To account for the receipt and expenditure of correctional facilities impact fees collected from all qualifying new construction.The impact fee must be used for the acquisition/construction of correctional facilities. EMERGENCY MEDICAL SERVICES IMPACT FEES—To account for the receipt and expenditure of emergency medical service impact fees collected from all qualifying new construction. The impact fees must be used for acquisition/construction of emergency service facilities. WATER MANAGEMENT — To account for the receipt and expenditure of funds raised specifically for water management purposes.Primary funding is ad valorem taxes. PARKS IMPACT DISTRICTS — To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction.The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS — To account for the receipt and expenditure of road impact fees collected from all qualifying new construction.The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION —To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to,right-of-way acquisition,design and construction of various transportation improvements. GOVERNMENT FACILITIES IMPACT FEES—To account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. LAW ENFORCEMENT IMPACT FEES—To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK—To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. OTHER CAPITAL PROJECTS—To account for major capital expenditure financed from resources other than proceeds from the issuance of long-term debt and the one third mil levy. COLLIER COUNTY, FLORIDA 1 :3 A COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2015 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Districts Area MSTD Development Control ASSETS Cash,cash equivalents and investments $ 2,637,594 $ 9,771,544 $ 36,676,107 $ 2,260,719 Cash with fiscal agent - - - - Receivables: Interest 8,469 30,350 86,796 7,057 Trade,net 1,277 145,350 6,355 282 Notes - - - - Impact fee - - - - Special assessments - - - - Due from other funds 800,000 276,620 21 41,783 Due from other governments 18,287 403,116 122,900 66,254 Deposits - - - - Inventory for resale - - - - Inventory 904,891 - - 17,559 Advances to other funds - 528,901 - - Prepaid costs 60,000 4,000 - - Total assets $ 4,430,518 $ 11,159,881 $ 36,892,179 $ 2,393,654 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 242,008 1,065,608 186,157 107,960 Wages payable 522,314 806,278 847,461 141,548 Due to other funds - 18,896 - - Due to other governments 111 503,153 1,999,460 - Unearned revenues - 6,493 - - Refundable deposits - - 61,785 - Retainage payable - - -Advances from other funds - - -Total liabilities 764,433 2,400,428 3,094,863 249,508 Deferred inflows of resources: Unavailable revenue - - - - Fund balances(deficits): Nonspendable 964,891 532,901 - 17,559 Restricted 2,701,194 - 33,797,316 - Committed - 8,226,552 - 2,126,587 Assigned - - - - Unassigned - - - - Total fund balances(deficits) 3,666,085 8,759,453 33,797,316 2,144,146 Total liabilities,deferred inflows of resources and fund balances(deficits) $ 4,430,518 $ 11,159,881 $ 36,892,179 $ 2,393,654 See accompanying independent auditor's report 90 134 Special Revenue Funds Grants and Fire 911 Shared Improvement Control Lighting Enhancement Tourist Revenues Districts Districts Districts Fee Development $ 3,597,691 $ 13,876,990 $ 351,414 $ 1,170,603 $ 4,196,432 $ 52,698,434 9,336 36,586 1,790 3,366 10,648 130,836 267,950 377 1,274 242 - 859,626 614,035 32,563 35,162 10,997 - 164,537 13,293,675 - 3,254 - - 8,532,800 $ 17,782,687 $ 13,946,516 $ 392,894 $ 1,185,208 $ 4,207,080 $ 62,386,233 3,507,945 981,121 5,585 64,860 901,513 1,056,065 145,998 27,705 129,339 6,166 - 126,744 9,112,299 3,855 398 312 - 1,273 172,823 - - - - 1,558,013 - - 1,050 1,230,595 157,815 - - - - 260,000 711,800 - - - 14,169,660 1,430,496 847,122 71,338 901,513 2,743,145 103,979 - - - - - 3,509,048 - - - 3,305,567 59,643,088 12,516,020 - 1,113,870 - - - - (454,228) - - - 3,509,048 12,516,020 (454,228) 1,113,870 3,305,567 59,643,088 $ 17,782,687 $ 13,946,516 $ 392,894 $ 1,185,208 $ 4,207,080 $ 62,386,233 91 COLLIER COUNTY, FLORIDA 1 3 A COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2015 Special Revenue Funds State 800 Housing MHZ Initiative IRCP State Court Confiscated Partnership Fund Administration Property ASSETS Cash,cash equivalents and investments $ 2,402,662 $ 27,651 $ 187,039 $ 340,343 Cash with fiscal agent - - - - Receivables: Interest 6,312 295 825 934 Trade,net - 19,651 84,402 - Notes 655,176 - - - Impact fee - - - - Special assessments - - - Due from other funds - - 3,137 - Due from other governments - - - - Deposits - - - - Inventory for resale - - - - Inventory - - - - Advances to other funds - - - - Prepaid costs - - - Total assets $ 3,064,150 $ 47,597 $ 275,403 $ 341,277 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 73,120 7,642 307 11,895 Wages payable 7,427 - 107,279 - Due to other funds - - - - Due to other governments - - - - Unearned revenues - - - - Refundable deposits - - - - Retainage payable - - - Advances from other funds - - - Total liabilities 80,547 7,642 107,586 11,895 Deferred inflows of resources: Unavailable revenue - - - - Fund balances(deficits): Nonspendable - - - - Restricted 2,983,603 - - 329,382 Committed - 39,955 167,817 - Assigned - - - - Unassigned - - - - Total fund balances(deficits) 2,983,603 39,955 167,817 329,382 Total liabilities,deferred inflows of resources and fund balances(deficits) $ 3,064,150 $ 47,597 $ 275,403 $ 341,277 See accompanying independent auditor's report 92 13A Special Revenue Funds GAC Land Court Sales,Roads Utility Conservation Information Court University and Canals Fee Collier Technology Services Extension $ 920,121 $ 1,253,072 $ 33,759,829 $ 1,023,432 $ 1,422,535 $ 120,665 2,631 2,994 85,881 2,925 - 308 80,843 576 68,386 - - 49,312 - 229,733 - - - - - $ 1,152,485 $ 1,336,909 $ 33,846,286 $ 1,094,743 $ 1,471,847 $ 120,973 4 159,190 66,092 223,259 154 20,441 15,452 4,253 - - -- - 8,559 - 379 - -- - - - 1,248,209 - - 1,035 - - - - 20,445 184,236 70,345 1,471,847 154 1,152,485 - 33,662,050 1,024,398 - 120,819 1,316,464 - - - - 1,152,485 1,316,464 33,662,050 1,024,398 - 120,819 $ 1,152,485 $ 1,336,909 $ 33,846,286 $ 1,094,743 $ 1,471,847 $ 120,973 93 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET3 A NONMAJOR GOVERNMENTAL FUNDS •L SEPTEMBER 30,2015 Special Revenue Funds Other Other Court Court Special Public Safety Facilities Affordable Revenue Revenue Fee Housing Funds Funds ASSETS Cash,cash equivalents and investments $ 6,726,719 $ 155,002 $ 4,948,870 $ 4,232,911 Cash with fiscal agent - - - - Receivables: Interest 16,950 392 - 4,893 Trade,net 69,845 - - 12,471 Notes - - - - Impact fee - - - - Special assessments - - - - Due from other funds - - - 34,747 Due from other governments - - - - Deposits - - - - Inventory for resale - - - - Inventory - - -Advances to other funds - - - - Prepaid costs - - - - Total assets $ 6,813,514 $ 155,394 $ 4,948,870 $ 4,285,022 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable - - 39,069 147,013 Wages payable - - - - Duetootherfunds - - - 445,763 Due to other governments - - - - Unearned revenues - - - - Refundable deposits - - - - Retainage payable 4,752 - - - Advances from other funds - - - Total liabilities 4,752 - 39,069 592,776 Deferred inflows of resources: Unavailable revenue - - - - Fund balances(deficits): Nonspendable - - - - Restricted 6,808,762 - 4,909,801 3,692,246 Committed - 155,394 - - Assigned - - - - Unassigned - - - - Total fund balances(deficits) 6,808,762 155,394 4,909,801 3,692,246 Total liabilities,deferred inflows of resources and fund balances(deficits) $ 6,813,514 $ 155,394 $ 4,948,870 $ 4,285,022 See accompanying independent auditor's report 94 13A 3 Special Revenue Funds Permanent Fund Debt Service Funds Other Total Conservation Special Special Resource Radio Road East Collier Revenue Revenue Recovery Park Limited General Limited General Funds Funds Endowment Obligation Bonds Obligation Bonds $ 2,991,182 $ 187,749,561 $ 1,719,029 $ 109,536 $ 56,850 7,471 458,045 4,392 296 144 22,844 1,641,751 - - - 655,176 - - - 2,013,602 - 816 8,559 - 22,489,598 - - - - 229,733 - - - 922,450 - - - 528,901 - - - - 64,000 - - - $ 3,021,497 $ 216,752,817 $ 1,723,421 $ 110,648 $ 65,553 7,183 8,853,750 7,373 - - 6,308 2,914,713 - - - 3,137 9,594,871 - - - 180 5,481,949 - - - 7,528 - - - - 62,835 - - - 1,393,162 - - - 971,800 - - - 16,808 29,280,608 7,373 - - - 103,979 - - - - 1,515,351 1,582,800 - - 472,583 158,112,342 133,248 110,648 65,553 25,662,659 - - - 2,532,106 2,532,106 - - - (454,228) - - - 3,004,689 187,368,230 1,716,048 110,648 65,553 $ 3,021,497 $ 216,752,817 $ 1,723,421 $ 110,648 $ 65,553 95 COLLIER COUNTY,FLORIDA COMBINING BALANCE SHEET 1 3A NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2015 Debt Service Funds Community Forest Lakes Special Redevelopment Limited General Obligation Other Taxable Note Obligation Bonds Revenue Bonds Debt Service ASSETS Cash,cash equivalents and investments $ 27,600 $ 887,087 $ 52,573 $ 81,591 Cash with fiscal agent 800,295 - 10,904,041 - Receivables: Interest 405 2,277 31,022 3,252 Trade,net - - - 40 Notes - - - Impact fee - - - - Special assessments - - - - Due from other funds - 4,011 - - Due from other governments - - - - Deposits - - - - Inventory for resale - - - - Inventory - - - Advances to other funds - - - - Prepaid costs - - - - Total assets $ 828,300 $ 893,375 $ 10,987,636 $ 84,883 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable - - - - Wages payable - - - - Due to other funds - - 7,600,000 - Due to other governments - - - - Unearned revenues - - - - Refundable deposits - - - - Retainage payable - - - - Advances from other funds - - - Total liabilities - - 7,600,000 - Deferred inflows of resources: Unavailable revenue - - - - Fund balances(deficits): Nonspendable - - - - Restricted 828,300 893,375 3,387,636 84,883 Committed - - - - Assigned - - - - Unassigned - - - - Total fund balances(deficits) 828,300 893,375 3,387,636 84,883 Total liabilities,deferred inflows of resources and fund balances(deficits) $ 828,300 $ 893,375 $ 10,987,636 $ 84,883 See accompanying independent auditor's report 96 1 3 A Debt Service Funds Capital Projects Funds Total Emergency Debt County-Wide County-Wide Correctional Medical Service Capital Parks Library Facilities Services Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ 1,215,237 $ 11,326,446 $ 1,197,472 $ 1,090,308 $ 490,543 $ 2,018,878 11,704,336 - - - - - 37,396 24,025 3,445 2,514 4,336 5,050 40 - 34,040 - - - - 203,974 60,774 57,889 13,386 - 337,528 - 1,300,000 - 12,389 - 12,836 35,714 7,793 $ 12,970,395 $ 11,362,860 $ 1,572,485 $ 1,309,632 $ 1,891,367 $ 2,089,610 423,849 134,964 62,315 - 162,219 7,600,000 1,051,307 - - - - - 306,563 - - - 17,279 7,600,000 1,781,719 134,964 62,315 - 179,498 203,974 60,774 57,889 5,370,395 - - 1,043,343 1,830,593 1,852,223 9,581,141 1,437,521 - - - 5,370,395 9,581,141 1,437,521 1,043,343 1,830,593 1,852,223 $ 12,970,395 $ 11,362,860 $ 1,572,485 $ 1,309,632 $ 1,891,367 $ 2,089,610 97 COLLIER COUNTY, FLORIDA 1 3 :11,',., COMBINING BALANCE SHEET if NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2015 Capital Projects Funds Parks Road Water Impact Impact Road Management Districts Districts Construction ASSETS Cash,cash equivalents and investments $ 13,686,061 $ 15,516,684 $ 53,930,354 $ 28,759,931 Cash with fiscal agent - - - - Receivables: Interest 35,133 42,005 133,716 73,573 Trade,net - - - 171,113 Notes - - - - Impact fee - 1,238,057 3,161,944 - Special assessments - - - - Due from other funds 2,517 2,400,000 - 6,257,339 Due from other governments - 78,261 709,177 1,573,310 Deposits - 1,250 - - Inventory for resale - - - - Inventory - - - - Advances to other funds - - - - Prepaid costs - - - 8,000 Total assets $ 13,723,711 $ 19,276,257 $ 57,935,191 $ 36,843,266 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 424,748 215,099 1,400,818 900,706 Wages payable 2,459 - - 177,777 Due to other funds 30,385 - - 148,515 Due to other governments - - - - Unearned revenues - - - - Refundable deposits - - - - Retainage payable 1,520 - 160,045 81,209 Advances from other funds - - - Total liabilities 459,112 215,099 1,560,863 1,308,207 Deferred inflows of resources: Unavailable revenue - 1,238,057 3,161,943 - Fund balances(deficits): Nonspendable - - - 8,000 Restricted - 17,823,101 53,212,385 35,527,059 Committed - - - - Assigned 13,264,599 - - - Unassigned - - - - Total fund balances(deficits) 13,264,599 17,823,101 53,212,385 35,535,059 Total liabilities,deferred inflows of resources and fund balances(deficits) $ 13,723,711 $ 19,276,257 $ 57,935,191 $ 36,843,266 See accompanying independent auditor's report 98 13A Capital Projects Funds Total Total Government Law All Terrain Other Capital Nonmajor Facilities Enforcement Vehicle Capital Projects Governmental Impact Fees Impact Fees Park Projects Funds Funds $ 3,141,854 $ 2,929,999 $ 2,998,851 $ 1,162,589 $ 138,249,970 $ 328,933,797 - - 11,704,336 13,464 8,966 7,554 2,791 356,572 856,405 - - 2,310 207,463 1,849,254 - - - - 655,176 191,627 69,761 - - 4,984,026 4,984,026 - 5,473 5,473 5,473 2,300,000 500,000 - 1,585 13,098,969 15,125,957 55,127 - - - 2,484,607 24,974,205 - - - 1,250 1,250 - - - 229,733 - - - 922,450 - - - 528,901 - - 5,600 13,600 77,600 $ 5,702,072 $ 3,508,726 $ 3,006,405 $ 1,180,348 $ 159,401,930 $ 390,848,563 6,477 - 72,255 3,803,450 12,664,573 - - 58,867 239,103 3,153,816 - - 1,230,207 18,425,078 - - - - 5,481,949 - - - 7,528 - - - 62,835 - - - 566,616 1,959,778 3,080,280 - - - 3,080,280 4,052,080 3,080,280 6,477 - 131,122 8,919,656 45,807,637 191,627 69,761 - - 4,984,025 5,088,004 - - 5,600 13,600 3,111,751 2,430,165 3,432,488 - 65,079 117,216,436 280,832,421 25,662,659 3,006,405 978,547 28,268,213 30,800,319 - (454,228) 2,430,165 3,432,488 3,006,405 1,049,226 145,498,249 339,952,922 $ 5,702,072 $ 3,508,726 $ 3,006,405 $ 1,180,348 $ 159,401,930 $ 390,848,563 99 COLLIER COUNTY, FLORIDA 1 3A COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Districts Area MSTD Development Control Revenues: Taxes $ - $ 32,673,287 $ - $ 1,829,677 Licenses,permits and impact fees 550,175 247,549 24,152,882 800 Intergovernmental 1,650,210 13,201 607 - Charges for services 299,441 3,190,972 2,994,896 354,247 Fines and forfeitures - 376,800 - - Interest income 35,190 162,496 321,348 39,397 Special assessments - - - 2,693,303 Miscellaneous 80,406 201,101 206 3,625 Total revenues 2,615,422 36,865,406 27,469,939 4,921,049 Expenditures: Current: General government - 5,658,865 5,286,286 - Public safety - 4,148,913 11,734,370 - Physical environment - 653,565 852,254 2,864,995 Transportation 15,517,947 7,170,994 - 1,930,047 Economic environment - 98,789 - - Human services - - - - Culture and recreation - 11,079,962 - - Debt service: Principal - - - - Interest - - - - Fiscal charges - - - - Capital outlay 1,957,278 436,928 631,916 129,957 Total expenditures 17,475,225 29,248,016 18,504,826 4,924,999 Excess(deficiency)of revenues over(under)expenditures (14,859,803) 7,617,390 8,965,113 (3,950) Other financing sources(uses): Sale of capital assets - - 12,054 4,344 Insurance proceeds 240,016 30,019 - 48 Transfers in 16,213,600 1,066,714 827,800 41,783 Transfers out (1,205,500) (7,650,943) (223,573) (270,320) Total other financing sources(uses) 15,248,116 (6,554,210) 616,281 (224,145) Net change in fund balances 388,313 1,063,180 9,581,394 (228,095) Fund balances(deficits)at beginning of year 3,277,772 7,696,273 24,215,922 2,372,241 Fund balances(deficits)at end of year $ 3,666,085 $ 8,759,453 $ 33,797,316 $ 2,144,146 See accompanying independent auditor's report 100 13A Special Revenue Funds Grants and Fire 911 Shared Improvement Control Lighting Enhancement Tourist Revenues Districts Districts Districts Fee Development $ - $ 3,452,115 $ 2,623,789 $ 1,265,060 $ - $ 21,188,191 27,313,721 - 3,254 - 1,721,811 2,529,126 1,801 220,372 8,708 - - 14,615 37,362 164,328 10,236 14,521 44,633 511,028 612,512 308,613 6,377 10,177 - 7,971,614 27,965,396 4,145,428 2,652,364 1,289,758 1,766,444 32,214,574 1,745,803 - - - - - 2,061,661 - 3,113,849 - 1,670,846 - 564,033 3,157,059 - - - 4,198,681 181,078 988,349 - 925,395 - - 6,392,618 - - - - - 2,962,443 - - - - - 556,769 814,107 - - - 9,817,517 - - 54,588 - - 10,345 - - - - - 20,342,828 1,302,801 64,994 - 1,018,209 499,507 34,807,233 6,262,316 3,243,776 925,395 2,689,055 14,515,705 (6,841,837) (2,116,888) (591,412) 364,363 (922,611) 17,698,869 - 7,896 - - - 3,883 1,259 - - - 6,309,867 425,698 551,513 10,599 - 305,236 (3,202) (692,558) (82,151) (78,419) - (875,764) 6,306,665 (262,977) 478,517 (67,820) - (570,528) (535,172) (2,379,865) (112,895) 296,543 (922,611) 17,128,341 4,044,220 14,895,885 (341,333) 817,327 4,228,178 42,514,747 $ 3,509,048 $ 12,516,020 $ (454,228) $ 1,113,870 $ 3,305,567 $ 59,643,088 101 13A COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Special Revenue Funds State Housing Initiative 800 MHZ State Court Confiscated Partnership ICRP Fund Administration Property Revenues: Taxes $ - $ - $ - $ - Licenses,permits and impact fees - - - - Intergovernmental 525,997 - - - Charges for services - 402,401 175,280 - Fines and forfeitures - - 952,852 68,048 Interest income 26,251 1,645 3,362 4,070 Special assessments - - - - Miscellaneous 360,248 134,982 5,798 - Total revenues 912,496 539,028 1,137,292 72,118 Expenditures: Current: General government - - 866,444 - Public safety - 1,193,755 1,486,259 67,500 Physical environment - - - - Transportation - - - - Economic environment 648,000 - - - Human services - - - - Culture and recreation - - - - Debt service: Principal - - - - Interest - - - - Fiscal charges - - - Capital outlay - - - - Total expenditures 648,000 1,193,755 2,352,703 67,500 Excess(deficiency)of revenues over(under)expenditures 264,496 (654,727) (1,215,411) 4,618 Other financing sources(uses): Sale of capital assets - - - - Insurance proceeds - - - - Transfers in - 632,900 1,269,237 - Transfers out (63,143) - (24,537) (63,725) Total other financing sources(uses) (63,143) 632,900 1,244,700 (63,725) Net change in fund balances 201,353 (21,827) 29,289 (59,107) Fund balances(deficits)at beginning of year 2,782,250 61,782 138,528 388,489 Fund balances(deficits)at end of year S 2,983,603 $ 39,955 $ 167,817 $ 329,382 See accompanying independent auditor's report 102 1 3V 1,1 Special Revenue Funds GAC Land Court Sales,Roads Utility Conservation Information Court University and Canals Fee Collier Technology Services Extension $ - $ 338,688 $ 12,555 $ - $ - $ - - - - 361,895 - - 100,000 432 850,946 6,484,209 32,301 11,287 12,148 357,594 11,279 10,644 1,255 89,056 - - - 11,287 450,836 459,637 862,225 6,856,748 33,556 - - - 699,603 6,856,748 - 32,248 - - 397,866 769,891 - - 25,638 12,976 - - 187,769 - - - - - 296,561 32,279 - - 187,769 397,866 1,066,452 777,106 6,856,748 25,638 (176,482) 52,970 (606,815) 85,119 - 7,918 50,000 91,229 - - - (176) - (917) - - - (176) 50,000 90,312 - - - (176,658) 102,970 (516,503) 85,119 - 7,918 1,329,143 1,213,494 34,178,553 939,279 - 112,901 $ 1,152,485 $ 1,316,464 $ 33,662,050 $ 1,024,398 $ - $ 120,819 103 A COLLIER COUNTY, FLORIDA IU COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Special Revenue Funds Other Other Court Court Special Public Safety Facilities Affordable Revenue Revenue Fee Housing Funds Funds Revenues: Taxes $ - $ - $ - $ - Licenses,permits and impact fees - - - - Intergovernmental - - - - Charges for services - - 1,463,188 936,072 Fines and forfeitures 891,401 - - 57,067 Interest income 68,225 1,813 7,650 25,997 Special assessments - - - - Miscellaneous - - - 157,615 Total revenues 959,626 1,813 1,470,838 1,176,751 Expenditures: Current: General government 167,270 - 1,298,620 - Public safety - - - 999,708 Physical environment - - - - Transportation - - - - Economic environment - - - - Human services - - - - Culture and recreation - - - - Debt service: Principal - - - - Interest - - - - Fiscal charges - - - - Capital outlay 64,233 - - 110,115 Total expenditures 231,503 - 1,298,620 1,109,823 Excess(deficiency)of revenues over(under)expenditures 728,123 1,813 172,218 66,928 Other financing sources(uses): Sale of capital assets - - - - Insurance proceeds - - - - Transfers in - - - - Transfers out - - - (79,298) Total other financing sources(uses) - - - (79,298) Net change in fund balances 728,123 1,813 172,218 (12,370) Fund balances(deficits)at beginning of year 6,080,639 153,581 4,737,583 3,704,616 Fund balances(deficits)at end of year $ 6,808,762 $ 155,394 $ 4,909,801 $ 3,692,246 See accompanying independent auditor's report 104 1 3A Special Revenue Funds Permanent Fund Debt Service Funds Other Total Conservation Special Special Resource Radio Road East Collier Revenue Revenue Recovery Park Limited General Limited General Funds Funds Endowment Obligation Bonds Obligation Bonds $ - $ 63,383,362 $ - $ 90,433 $ 10,907 7,739 24,959,145 - - - 34,119,822 - - - 315,933 17,845,814 - - - 86,198 2,432,366 - - - 25,466 1,909,225 18,239 1,275 841 2,693,303 - - - 1,007,642 10,949,972 - - - 1,442,978 158,293,009 18,239 91,708 11,748 176,838 22,756,477 - 13 36 173,400 26,682,509 - - - 13,483,982 51,433 - - 26,713,810 - - - - 7,139,407 - - - 173,170 3,148,589 - - - 55,198 22,511,322 - - - 54,588 - 50,662 - 10,345 - 14,417 - - - - 2,570 - 88,126 26,975,732 - - - 666,732 149,476,761 51,433 67,662 36 776,246 8,816,248 (33,194) 24,046 11,712 24,294 - - - - 275,225 - - - 667,437 28,463,613 - 816 - (3,137) (11,317,363) - (2,652) (91,025) 664,300 17,445,769 - (1,836) (91,025) 1,440,546 26,262,017 (33,194) 22,210 (79,313) 1,564,143 161,106,213 1,749,242 88,438 144,866 $ 3,004,689 $ 187,368,230 $ 1,716,048 $ 110,648 $ 65,553 105 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESI 3A NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Debt Service Funds Community Forest Lakes Special Redevelopment Limited General Obligation Other Taxable Note Obligation Bonds Revenue Bonds Debt Service Revenues: Taxes $ - $ 392,471 $ - $ 950 Licenses,permits and impact fees - - - - Intergovernmental - - - - Chargesforservices - - - - Fines and forfeitures - - - - Interest income 3,446 10,047 90,226 21,292 Special assessments - - - - Miscellaneous 125,000 - - - Total revenues 128,446 402,518 90,226 22,242 Expenditures: Current: General government - - - - Public safety - - - - Physical environment - - - - Transportation - - - - Economic environment - - - - Human services - - - - Culture and recreation - - - - Debt service: Principal 628,856 410,000 8,885,000 9,440,000 Interest 250,631 147,475 9,425,569 3,697,146 Fiscal charges 25 2,941 10,278 5,523 Capital outlay - - - - Total expenditures 879,512 560,416 18,320,847 13,142,669 Excess(deficiency)of revenues over(under)expenditures (751,066) (157,898) (18,230,621) (13,120,427) Other financing sources(uses): Sale of capital assets - - - Insurance proceeds - - - - Transfers in 905,700 118,211 18,074,421 13,141,600 Transfers out - (12,658) - (4,371) Total other financing sources(uses) 905,700 105,553 18,074,421 13,137,229 Net change in fund balances 154,634 (52,345) (156,200) 16,802 Fund balances(deficits)at beginning of year 673,666 945,720 3,543,836 68,081 Fund balances(deficits)at end of year $ 828,300 $ 893,375 $ 3,387,636 $ 84,883 See accompanying independent auditor's report 106 .1 3 A Debt Service Funds Capital Projects Funds Emergency Total County-Wide County-Wide Correctional Medical Debt Service Capital Parks Library Facilities Services Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ 494,761 $ - $ - $ - $ - $ - 635,835 869,236 1,471,250 344,533 12,389 - - - - 60,640 - - - 127,127 90,972 11,900 10,284 15,548 18,371 125,000 - 273,400 - - - 746,888 103,361 981,775 879,520 1,486,798 362,904 49 1,455,798 - - - - 233,253 - - 5,568 5,323 21,434 - - - - 244 569,206 10,933 - - 19,414,518 - - - - - 13,535,238 - - - - - 21,337 - - - - - 3,555,885 594,639 94,023 - 294,626 32,971,142 5,266,614 1,163,845 104,956 5,568 299,949 (32,224,254) (5,163,253) (182,070) 774,564 1,481,230 62,955 - 32,639 - - - 32,240,748 18,908,900 1,050,338 11,108,925 7,523,200 5,015,700 (110,706) (62,866,036) (333,451) (1,161,000) (1,887,100) (447,700) 32,130,042 (43,957,136) 749,526 9,947,925 5,636,100 4,568,000 (94,212) (49,120,389) 567,456 10,722,489 7,117,330 4,630,955 5,464,607 58,701,530 870,065 (9,679,146) (5,286,737) (2,778,732) $ 5,370,395 $ 9,581,141 $ 1,437,521 $ 1,043,343 $ 1,830,593 $ 1,852,223 107 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ' it NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Capital Projects Funds Parks Road Water Impact Impact Road Management Districts Districts Construction _ Revenues: Taxes $ - $ - $ - $ 13,616,925 Licenses,permits and impact fees - 8,098,940 11,014,501 - Intergovernmental - - 94,641 7,449,150 Charges for services - - - 105,050 Fines and forfeitures - - - - Interest income 151,262 168,082 544,123 314,340 Special assessments 323,445 - - - Miscellaneous 82,631 - 27 723,166 Total revenues 557,338 8,267,022 11,653,292 22,208,631 Expenditures: Current: General government - - - - Public safety - - - - Physical environment 614,358 - - - Transportation - - 173,975 9,853,698 Economic environment - - - - Human services - - - - Culture and recreation - 126,907 - - Debt service: Principal - - - - Interest - - - - Fiscal charges - - - - Capital outlay 2,046,569 3,107,680 4,610,504 4,787,005 Total expenditures 2,660,927 3,234,587 4,784,479 14,640,703 Excess(deficiency)of revenues over(under)expenditures (2,103,589) 5,032,435 6,868,813 7,567,928 Other financing sources(uses): Sale of capital assets - - - - Insurance proceeds - - - 4,238 Transfers in 5,757,836 - - 16,415,276 Transfers out (4,232,066) (3,318,320) - (20,139,251) Total other financing sources(uses) 1,525,770 (3,318,320) - (3,719,737) Net change in fund balances (577,819) 1,714,115 6,868,813 3,848,191 Fund balances(deficits)at beginning of year 13,842,418 16,108,986 46,343,572 31,686,868 Fund balances(deficits)at end of year $ 13,264,599 $ 17,823,101 $ 53,212,385 $ 35,535,059 See accompanying independent auditor's report 108 1 3 Capital Projects Funds Total Total Government Law All Terrain Other Capital Nonmajor Facilities Enforcement Vehicle Capital Projects Governmental Impact Fees Impact Fees Park Projects Funds Funds $ - $ - $ - $ - $ 13,616,925 $ 77,495,048 2,349,191 1,260,634 - 5,186 26,049,306 51,008,451 - 7,556,180 41,676,002 - 165,690 18,011,504 - - - 2,432,366 50,543 36,499 31,254 10,445 1,453,623 3,508,214 115,116 438,561 3,131,864 - - 118 1,079,342 12,154,314 2,399,734 1,297,133 31,254 130,865 50,359,627 209,417,763 6,427 - - - 1,462,225 24,218,751 4,030 - - 248,174 26,930,683 - 1,267,026 1,902,818 15,438,233 - - - 10,027,673 36,741,483 - - - - 7,139,407 - - - 3,148,589 - 861 59,521 767,672 23,278,994 - - - 19,469,106 9,125 - - - 9,125 13,554,708 - - 21,337 3,536,636 220,732 - 216,370 23,064,669 50,040,401 3,552,188 224,762 861 1,542,917 37,482,356 219,981,692 (1,152,454) 1,072,371 30,393 (1,412,052) 12,877,271 (10,563,929) - - 24,294 - - - - 36,877 312,102 33,299,100 23,682,000 - 1,703,087 124,464,362 185,168,723 (4,382,700) (2,656,600) - (3,948) (101,428,172) (112,856,241) 28,916,400 21,025,400 - 1,699,139 23,073,067 72,648,878 27,763,946 22,097,771 30,393 287,087 35,950,338 62,084,949 (25,333,781) (18,665,283) 2,976,012 762,139 109,547,911 277,867,973 $ 2,430,165 $ 3,432,488 $ 3,006,405 $ 1,049,226 $ 145,498,249 $ 339,952,922 109 COLLIER COUNTY,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) 1 3 A MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Road Districts Unincorporated Area MSTD (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ 33,001,100 $ 32,673,287 $ (327,813) Licenses,permits and impact fees 345,000 550,175 205,175 196,000 247,549 51,549 Intergovernmental 1,561,100 1,650,210 89,110 - 13,201 13,201 Charges for services 228,000 299,441 71,441 3,433,700 3,190,972 (242,728) Fines and forfeitures - - - 407,000 376,800 (30,200) Interest income 3,000 29,272 26,272 50,000 135,736 85,736 Special assessments - - - - - - Miscellaneous 35,400 80,406 45,006 193,500 201,101 7,601 Total revenues 2,172,500 2,609,504 437,004 37,281,300 36,838,646 (442,654) Expenditures: Current: General government - - - 6,541,450 5,657,745 883,705 Public safety - - - 4,248,800 4,148,913 99,887 Physical environment - - - 816,300 653,565 162,735 Transportation 16,217,551 14,994,231 1,223,320 8,160,470 7,170,994 989,476 Economic environment - - - 113,200 98,789 14,411 Human services - - - - - - Culture and recreation - - - 12,052,351 11,079,962 972,389 Debt service - - - - - - Capital outlay 2,249,443 1,957,278 292,165 478,301 436,928 41,373 Total expenditures 18,466,994 16,951,509 1,515,485 32,410,872 29,246,896 3,163,976 Excess(deficit)of revenues over(under)expenditures (16,294,494) (14,342,005) 1,952,489 4,870,428 7,591,750 2,721,322 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds 105,000 240,016 135,016 30,000 30,019 19 Transfers in 16,213,600 16,213,600 - 997,400 1,066,714 69,314 Transfers out (1,205,500) (1,205,500) - (8,273,063) (8,179,844) 93,219 Total other financing sources(uses) 15,113,100 15,248,116 135,016 (7,245,663) (7,083,111) 162,552 Net change in fund balances (1,181,394) 906,111 2,087,505 (2,375,235) 508,639 2,883,874 Fund balances at beginning of year 1,494,394 1,494,394 - 5,762,834 5,762,834 - Fund balances(deficits)at end of year $ 313,000 $ 2,400,505 $ 2,087,505 $ 3,387,599 $ 6,271,473 $ 2,883,874 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 906,111 $ 508,639 Change in fair value of investments 5,918 26,760 Ad valorem refunds not budgeted - (1,120) Change in inventory (523,716) - Change in inventory held for resale - - Advances budgeted as transfers - 528,901 Advances reclassified to transfers - - Unbudgetedfunds - - Net change in fund balance,GAAP basis $ 388,313 $ 1,063,180 110 13A Community Development Water Management and (Budgetary Basis) Pollution Control(Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 1,893,100 $ 1,829,677 $ (63,423) 14,990,200 24,152,882 9,162,682 600 800 200 607 607 - - - 2,567,200 2,994,896 427,696 383,000 354,247 (28,753) 86,700 264,516 177,816 9,000 33,482 24,482 2,794,400 2,693,303 (101,097) 500 206 (294) - 3,625 3,625 17,644,600 27,413,107 9,768,507 5,080,100 4,915,134 (164,966) 6,825,348 5,286,286 1,539,062 - - - 15,191,582 11,734,370 3,457,212 - - - 1,044,700 852,254 192,446 3,294,373 2,882,500 411,873 1,965,600 1,930,047 35,553 722,047 631,916 90,131 351,409 129,957 221,452 23,783,677 18,504,826 5,278,851 5,611,382 4,942,504 668,878 (6,139,077) 8,908,281 15,047,358 (531,282) (27,370) 503,912 12,054 12,054 - 4,344 4,344 - 48 48 827,800 827,800 - - 41,783 41,783 (223,573) (223,573) - (308,100) (270,320) 37,780 604,227 616,281 12,054 (308,100) (224,145) 83,955 (5,534,850) 9,524,562 15,059,412 (839,382) (251,515) 587,867 18,790,750 18,790,750 - 2,154,011 2,154,011 - $ 13,255,900 $ 28,315,312 $ 15,059,412 $ 1,314,629 $ 1,902,496 $ 587,867 $ 9,524,562 $ (251,515) 56,832 5,915 (54) - 17,559 $ 9,581,394 $ (228,095) 111 COLLIER COUNTY,FLORIDA A COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Grants and Shared Revenues Improvement Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ 3,570,500 $ 3,452,115 $ (118,385) Licenses,permits and impact fees - - - - - - Intergovernmental 62,979,613 26,362,104 (36,617,509) - - - Charges for services 294,265 1,801 (292,464) 227,900 220,372 (7,528) Fines and forfeitures - - - - - - Interest income 2,057 30,248 28,191 25,500 136,000 110,500 Special assessments - - - - - - Miscellaneous 658,066 612,512 (45,554) 312,100 308,613 (3,487) Total revenues 63,934,001 27,006,665 (36,927,336) 4,136,000 4,117,100 (18,900) Expenditures: Current: General government 3,150,863 1,684,929 1,465,934 - - - Public safety 3,941,607 1,374,767 2,566,840 - - - Physical environment 581,390 564,033 17,357 6,598,759 3,157,059 3,441,700 Transportation 2,061,166 181,078 1,880,088 2,594,754 988,318 1,606,436 Economic environment 17,888,239 6,261,948 11,626,291 - - - Human services 5,257,801 2,962,443 2,295,358 - - - Culture and recreation 810,541 556,769 253,772 923,146 814,067 109,079 Debt service - - - - - - Capital outlay 47,785,162 20,335,991 27,449,171 9,179,224 1,302,801 7,876,423 Total expenditures 81,476,769 33,921,958 47,554,811 19,295,883 6,262,245 13,033,638 Excess(deficit)of revenues over(under)expenditures (17,542,768) (6,915,293) 10,627,475 (15,159,883) (2,145,145) 13,014,738 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - 3,883 3,883 Transfers in 13,745,524 6,303,059 (7,442,465) 653,200 425,698 (227,502) Transfers out (292,819) (3,202) 289,617 (716,554) (692,558) 23,996 Total other financing sources(uses) 13,452,705 6,299,857 (7,152,848) (63,354) (262,977) (199,623) Net change in fund balances (4,090,063) (615,436) 3,474,627 (15,223,237) (2,408,122) 12,815,115 Fund balances at beginning of year 4,407,659 4,407,659 - 16,085,137 16,085,137 - Fund balances(deficits)at end of year $ 317,596 $ 3,792,223 $ 3,474,627 $ 861,900 $ 13,677,015 $ 12,815,115 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ (615,436) $ (2,408,122) Change in fair value of investments 6,478 28,328 Ad valorem refunds not budgeted - (71) Change in inventory - - Change in inventory held for resale (130,670) - Advances budgeted as transfers - - Advances reclassified to transfers - - Unbudgeted funds 204,456 - Net change in fund balance,GAAP basis $ (535,172) $ (2,379,865) 112 Fire Control Districts(Budgetary Basis) Lighting Districts(Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 2,710,900 $ 2,623,789 $ (87,111) $ 1,301,100 $ 1,265,060 $ (36,040) 3,254 3,254 - - _ 4,000 8,708 4,708 - - - 2,300 8,547 6,247 2,500 12,081 9,581 5,075 6,377 1,302 - 10,177 10,177 2,722,275 2,650,675 (71,600) 1,303,600 1,287,318 (16,282) 3,279,837 3,113,548 166,289 - - - - - 1,026,689 925,384 101,305 70,000 64,933 5,067 - - - 66,313 64,994 1,319 10,911 - 10,911 3,416,150 3,243,475 172,675 1,037,600 925,384 112,216 (693,875) (592,800) 101,075 266,000 361,934 95,934 5,166 7,896 2,730 - - - 1,259 1,259 - - - - 543,465 551,513 8,048 - 10,599 10,599 (91,515) (82,151) 9,364 (97,100) (78,419) 18,681 458,375 478,517 20,142 (97,100) (67,820) 29,280 (235,500) (114,283) 121,217 168,900 294,114 125,214 357,600 357,600 - 804,700 804,700 - $ 122,100 $ 243,317 $ 121,217 $ 973,600 $ 1,098,814 $ 125,214 $ (114,283) $ 294,114 1,689 2,440 (301) (11) $ (112,895) $ 296,543 113 COLLIER COUNTY,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESa) A BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Tourist Development 911 Enhancement Fee(Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ 17,048,600 $ 21488,191 $ 4,139,591 Licenses,permits and impact fees - - - - - - Intergovernmental 1,825,500 1,721,811 (103,689) - 2,529,126 2,529,126 Charges for services - - - - 14,615 14,615 Fines and forfeitures - - - - - - Interest income 16,600 36,819 20,219 158,700 422,071 263,371 Special assessments - - - - -Miscellaneous .. - 165,000 7,971,614 7,806,614 Total revenues 1,842,100 1,758,630 (83,470) 17,372,300 32,125,617 14,753,317 Expenditures: Current: General government - - - - - - Public safety 2,140,437 1,670,846 469,591 - - - Physical environment - - - 4,255,849 4,198,681 57,168 Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - 13,275,338 9,817,517 3,457,821 Debt service - - - - - - Capital outlay 1,086,000 1,018,209 67,791 9,301,170 499,507 8,801,663 Total expenditures 3,226,437 2,689,055 537,382 26,832,357 14,515,705 12,316,652 Excess(deficit)of revenues over(under)expenditures (1,384,337) (930,425) 453,912 (9,460,057) 17,609,912 27,069,969 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in - - - 200,000 305,236 105,236 Transfers out - - - (888,500) (875,764) 12,736 Total other financing sources(uses) - - - (688,500) (570,528) 117,972 Net change in fund balances (1,384,337) (930,425) 453,912 (10,148,557) 17,039,384 27,187,941 Fund balances at beginning of year 4,107,637 4,107,637 - 41,936,388 41,936,388 Fund balances(deficits)at end of year $ 2,723,300 $ 3,177,212 $ 453,912 $ 31,787,831 $ 58,975,772 $ 27,187,941 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ (930,425) $ 17,039,384 Change in fair value of investments 7,814 88,957 Ad valorem refunds not budgeted - - Change in inventory - - Change in inventory held for resale - - Advances budgeted as transfers - - Advances reclassified to transfers - - Unbudgetedfunds -Net change in fund balance,GAAP basis $ (922,611) $ 17,128,341 114 315, State Housing Initiativeship 800 MHZ IRCP Fund Partnership(Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - 4,630,224 525,997 (4,104,227) - - - 436,600 402,401 (34,199) 31,759 21,737 (10,022) 500 1,390 890 429,191 360,248 (68,943) 128,600 134,982 6,382 5,091,174 907,982 (4,183,192) 565,700 538,773 (26,927) - - - 1,230,700 1,193,755 36,945 5,091,563 608,000 4,483,563 - - - 5,091,563 608,000 4,483,563 1,230,700 1,193,755 36,945 (389) 299,982 300,371 (665,000) (654,982) 10,018 - - - 632,900 632,900 - - (63,143) (63,143) - - - - (63,143) (63,143) 632,900 632,900 - (389) 236,839 237,228 (32,100) (22,082) 10,018 706 706 - - - - $ 317 $ 237,545 $ 237,228 $ (32,100) $ (22,082) $ 10,018 $ 236,839 $ (22,082) 4,514 255 (40,000) - $ 201,353 $ (21,827) 115 COLLIER COUNTY,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES +��ee 3 III BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 State Court Administration Confiscated Property (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses,permits and impact fees - - - - - - Intergovernmental - - - - - - Charges for services 160,000 175,280 15,280 - - - Fines and forfeitures 974,000 952,852 (21,148) - 68,048 68,048 Interest income 500 2,763 2,263 - 3,357 3,357 Special assessments - - - - - - Miscellaneous - 5,798 5,798 - - - Total revenues 1,134,500 1,136,693 2,193 - 71,405 71,405 Expenditures: Current: General government 892,800 866,444 26,356 - - - Public safety 1,586,500 1,486,259 100,241 95,247 67,500 27,747 Physical environment - - - - - Transportation .. - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - - - - Capital outlay 3,000 - 3,000 - - - Total expenditures 2,482,300 2,352,703 129,597 95,247 67,500 27,747 Excess(deficit)of revenues over(under)expenditures (1,347,800) (1,216,010) 131,790 (95,247) 3,905 99,152 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in 1,266,100 1,269,237 3,137 - - - Transfers out (20,600) (24,537) (3,937) (270,573) (63,725) 206,848 Total other financing sources(uses) 1,245,500 1,244,700 (800) (270,573) (63,725) 206,848 Net change in fund balances (102,300) 28,690 130,990 (365,820) (59,820) 306,000 Fund balances at beginning of year 137,000 137,000 - 383,700 383,700 - Fund balances(deficits)at end of year $ 34,700 $ 165,690 $ 130,990 $ 17,880 $ 323,880 $ 306,000 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 28,690 $ (59,820) Change in fair value of investments 599 713 Ad valorem refunds not budgeted - - Changeininventory - - Change in inventory held for resale - - Advances budgeted as transfers - - Advances reclassified to transfers - - Unbudgeted funds - - Net change in fund balance,GAAP basis $ 29,289 $ (59,107) 116 I 3 A GAC Land Sales, Utility Fee Roads and Canals(Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 170,000 $ 338,688 $ 168,688 - - 100,000 100,000 - 3,700 9,312 5,612 1,500 10,020 8,520 16,500 - (16,500) - - - 20,200 9,312 (10,888) 271,500 448,708 177,208 - - 443,535 397,866 45,669 274,700 187,769 86,931 - - - 274,700 187,769 86,931 443,535 397,866 45,669 (254,500) (178,457) 76,043 (172,035) 50,842 222,877 50,000 50,000 - (400) (176) 224 - - - (400) (176) 224 50,000 50,000 - (254,900) (178,633) 76,267 (122,035) 100,842 222,877 891,300 891,300 - - - - $ 636,400 $ 712,667 $ 76,267 $ (122,035) $ 100,842 $ 222,877 $ (178,633) $ 100,842 1,975 2,128 $ (176,658) $ 102,970 117 COLLIER COUNTY,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES 4,1,,, 3 A BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Conservation Collier Court Information Technology (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ 12,555 $ 12,555 $ - $ - $ - Licenses,permits and impact fees - - - _ _ - Intergovernmental - - - - - - Charges for services 9,000 432 (8,568) 750,000 850,946 100,946 Fines and forfeitures Interest income 148,800 294,943 146,143 3,100 9,322 6,222 Special assessments Miscellaneous 27,200 89,056 61,856 - - - Total revenues 185,000 396,986 211,986 753,100 860,268 107,168 Expenditures: Current: General government - - - 775,380 699,603 75,777 Public safety - - - 38,300 32,248 6,052 Physical environment 964,108 769,821 194,287 - - - Transportation - - _ - - - Economic environment - - - _ - - Human services - - - 21,700 12,976 8,724 Culture and recreation - - - - - - Debt service - - _ - - - Capital outlay 779,169 296,561 482,608 79,520 32,279 47,241 Total expenditures 1,743,277 1,066,382 676,895 914,900 777,106 137,794 Excess(deficit)of revenues over(under)expenditures (1,558,277) (669,396) _ 888,881 (161,800) 83,162 244,962 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - _ - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in 793,100 91,229 (701,871) - - - Transfers out (15,000) (917) 14,083 - - - Total other financing sources(uses) 778,100 90,312 (687,788) - - - Net change in fund balances (780,177) (579,084) 201,093 (161,800) 83,162 244,962 Fund balances at beginning of year 32,288,977 32,288,977 - 855,100 855,100 - Fund balances(deficits)at end of year $ 31,508,800 $ 31,709,893 $ 201,093 $ 693,300 $ 938,262 $ 244,962 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ (579,084) $ 83,162 Change in fair value of investments 62,651 1,957 Ad valorem refunds not budgeted (70) - Changeininventory _ - Change in inventory held for resale - - Advances budgeted as transfers - - Advances reclassified to transfers - - Unbudgeted funds - - Net change in fund balance,GAAP basis $ (516,503) $ 85,119 118 1 3A Court Services University Extension(Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - S - $ - $ - $ - 261,459 361,895 100,436 - - - 6,814,553 6,484,209 (330,344) 14,000 32,301 18,301 8,500 10,644 2,144 - 1,037 1,037 7,084,512 6,856,748 (227,764) 14,000 33,338 19,338 7,084,512 6,856,748 227,764 - - - - - - 50,400 25,638 24,762 7,084,512 6,856,748 227,764 50,400 25,638 24,762 - - (36,400) 7,700 44,100 - - - (36,400) 7,700 44,100 - - 70,400 70,400 - $ - $ - $ - $ 34,000 $ 78,100 $ 44,100 $ - $ 7,700 - 218 $ - $ 7,918 119 i 3 A i" COLLIER COUNTY,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Court Facilities Fee (Budgetary Basis) Affordable Housing(Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses,permits and impact fees - - - - - - Intergovernmental - - - - - - Charges for services - - - - - Fines and forfeitures 1,090,000 891,401 (198,599) - - - Interest income 15,000 56,353 41,353 1,000 1,527 527 Special assessments - - - - - - Miscellaneous - - - - - - Total revenues 1,105,000 947,754 (157,246) 1,000 1,527 527 Expenditures: Current: General government 616,200 167,270 448,930 - - - Public safety - - - - - - Physical environment - - - - - - Transportation - - .. - - - Economic environment - - - 109,000 - 109,000 Human services - - - - - - Culture and recreation - - - - - - Debt service - - - - - - Capital outlay 2,467,349 64,233 2,403,116 - - - Total expenditures 3,083,549 231,503 2,852,046 109,000 - 109,000 Excess(deficit)of revenues over(under)expenditures (1,978,549) 716,251 2,694,800 (108,000) 1,527 109,527 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - Insurance proceeds - - .. - - - Transfers in - - - - - - Transfers out - - - - - - Total other financing sources(uses) - - - - - - Net change in fund balances (1,978,549) 716,251 2,694,800 (108,000) 1,527 109,527 Fund balances at beginning of year 6,063,383 6,063,383 - - - - Fund balances(deficits)at end of year $ 4,084,834 $ 6,779,634 $ 2,694,800 $ (108,000) $ 1,527 $ 109,527 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 716,251 $ 1,527 Change in fair value of investments 11,872 286 Ad valorem refunds not budgeted - - Change in inventory - - Change in inventory held for resale - - Advances budgeted as transfers - Advances reclassified to transfers - - Unbudgeted funds - - Net change in fund balance,GAAP basis $ 728,123 $ 1,813 120 13 Other Public Safety Other Court Special Revenue Funds Revenue Funds(Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - 1,365,000 1,463,188 98,188 90,000 97,950 7,950 60,000 57,067 (2,933) 8,300 7,650 (650) 8,700 16,935 8,235 1,373,300 1,470,838 97,538 158,700 171,952 13,252 2,491,900 1,298,620 1,193,280 - - - 587,500 259,366 328,134 410,200 - 410,200 12,500 - 12,500 2,902,100 1,298,620 1,603,480 600,000 259,366 340,634 (1,528,800) 172,218 1,701,018 (441,300) (87,414) 353,886 - - (135,000) (79,298) 55,702 - - - (135,000) (79,298) 55,702 (1,528,800) 172,218 1,701,018 (576,300) (166,712) 409,588 4,315,031 4,315,031 - 1,786,100 1,786,100 - $ 2,786,231 $ 4,487,249 $ 1,701,018 $ 1,209,800 $ 1,619,388 $ 409,588 $ 172,218 $ (166,712) 3,586 150,756 $ 172,218 $ (12,370) 121 COLLIER COUNTY,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES I 3 u BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Other Special Resource Recovery Park Revenue Funds(Budgetary Basis) Endowment(Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses,permits and impact fees 4,900 7,739 2,839 - - - Intergovernmental - - - - - - Chargesforservices 348,700 315,933 (32,767) - - - Fines and forfeitures 85,000 86,198 1,198 - - - Interest income 6,500 21,226 14,726 8,600 15,040 6,440 Special assessments - - - - - Miscellaneous 795,778 1,007,642 211,864 - - - Total revenues 1,240,878 1,438,738 197,860 8,600 15,040 6,440 Expenditures: Current: General government 190,300 176,838 13,462 - - - Public safety 547,200 173,400 373,800 - - - Physical environment - - - 69,700 51,433 18,267 Transportation - - - - - - Economic environment - - - - - - Human services 189,900 173,170 16,730 - - - Culture and recreation 133,078 55,198 77,880 - - - Debt service - - - - - - Capital outlay 1,654,400 88,126 1,566,274 - - - Total expenditures 2,714,878 666,732 2,048,146 69,700 51,433 18,267 Excess(deficit)of revenues over(under)expenditures (1,474,000) 772,006 2,246,006 (61,100) (36,393) 24,707 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds .. - - - - - Transfers in 665,100 667,437 2,337 - - - Transfers out - (3,137) (3,137) - - - Total other financing sources(uses) 665,100 664,300 (800) - - - Net change in fund balances (808,900) 1,436,306 2,245,206 (61,100) (36,393) 24,707 Fund balances at beginning of year 1,380,700 1,380,700 - 1,727,700 1,727,700 - Fund balances(deficits)at end of year $ 571,800 $ 2,817,006 $ 2,245,206 $ 1,666,600 $ 1,691,307 $ 24,707 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 1,436,306 $ (36,393) Change in fair value of investments 4,240 3,199 Ad valorem refunds not budgeted - - Change in inventory - - Change in inventory held for resale - - Advances budgeted as transfers - - Advances reclassified to transfers - - Unbudgeted funds - - Net change in fund balance,GAAP basis $ 1,440,546 $ (33,194) 122 Radio Road East Limited General Conservation Collier Limited General Obligation Bonds(Budgetary Basis) Obligation Bonds(Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 93,700 $ 90,433 $ (3,267) $ - $ 10,907 $ 10,907 1,059 1,059 400 683 283 93,700 91,492 (2,208) 400 11,590 11,190 71,000 67,649 3,351 - - - 71,000 67,649 3,351 - - - 22,700 23,843 1,143 400 11,590 11,190 816 816 - - - (4,400) (2,652) 1,748 (91,200) (91,025) 175 (4,400) (1,836) 2,564 (91,200) (91,025) 175 18,300 22,007 3,707 (90,800) (79,435) 11,365 84,000 84,000 - 90,800 90,800 - $ 102,300 $ 106,007 $ 3,707 $ - $ 11,365 $ 11,365 $ 22,007 $ (79,435) 216 158 (13) (36) $ 22,210 $ (79,313) 123 COLLIER COUNTY,FLORIDA 1 °�9A COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES •� BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Community Redevelopment Forest Lakes Limited General Taxable Note(Budgetary Basis) Obligation Bonds(Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ 405,900 $ 392,471 $ (13,429) Licenses,permits and impact fees - - - - - - Intergovernmental - - - - - - Charges for services - - - - - - Fines and forfeitures - - - - - - Interest income 2,500 2,856 356 1,000 8,250 7,250 Special assessments - - - - - - Miscellaneous - 125,000 125,000 - - - Total revenues 2,500 127,856 125,356 406,900 400,721 (6,179) Expenditures: Current: General government - - - - - - Public safety - - - - - - Physical environment - - - - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service 955,000 879,512 75,488 562,000 560,416 1,584 Capital outlay - - - - - - Total expenditures 955,000 879,512 75,488 562,000 560,416 1,584 Excess(deficit)of revenues over(under)expenditures (952,500) (751,656) 200,844 (155,100) (159,695) (4,595) Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in 1,030,700 905,700 (125,000) 114,200 118,211 4,011 Transfers out - - - (16,800) (12,658) 4,142 Total other financing sources(uses) 1,030,700 905,700 (125,000) 97,400 105,553 8,153 Net change in fund balances 78,200 154,044 75,844 (57,700) (54,142) 3,558 Fund balances at beginning of year 627,400 627,400 - 933,200 933,200 - Fund balances(deficits)at end of year $ 705,600 $ 781,444 $ 75,844 $ 875,500 $ 879,058 $ 3,558 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 154,044 $ (54,142) Change in fair value of investments 590 1,797 Ad valorem refunds not budgeted - - Changeininventory - - Change in inventory held for resale - Advances budgeted as transfers - - Advances reclassified to transfers - - Unbudgetedfunds - - Net change in fund balance,GAAP basis $ 154,634 $ (52,345) 124 << , Special Obligation Revenue Bonds(Budgetary Basis) Other Debt Service(Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 1,500 $ 950 $ (550) 6,300 84,660 78,360 500 17,772 17,272 6,300 84,660 78,360 2,000 18,722 16,722 18,342,700 18,320,847 21,853 13,243,000 13,142,669 100,331 18,342,700 18,320,847 21,853 13,243,000 13,142,669 100,331 (18,336,400) (18,236,187) 100,213 (13,241,000) (13,123,947) 117,053 18,074,700 18,074,421 (279) 13,141,600 13,141,600 - (6,800) (4,371) 2,429 18,074,700 18,074,421 (279) 13,134,800 13,137,229 2,429 (261,700) (161,766) 99,934 (106,200) 13,282 119,482 3,486,600 3,486,600 - 106,300 106,300 - $ 3,224,900 $ 3,324,834 $ 99,934 $ 100 $ 119,582 $ 119,482 $ (161,766) $ 13,282 5,566 3,520 $ (156,200) $ 16,802 125 COLLIER COUNTY,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES 1 3 A BUDGET AND ACTUAL(BUDGETARY BASIS) a MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 County-Wide Capital Improvememts Parks Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses,permits and impact fees - - - 412,000 635,835 223,835 Intergovernmental - 12,389 12,389 - - - Chargesforservices - - - 62,000 60,640 (1,360) Fines and forfeitures - - - Interest income 25,000 75,789 50,789 25,000 9,878 (15,122) Special assessments Miscellaneous - - - 860,000 273,400 (586,600) Total revenues 25,000 88,178 63,178 1,359,000 979,753 (379,247) Expenditures: Current: General government 1,772,012 1,455,798 316,214 - - - Public safety 547,609 233,253 314,356 - - - Physical environment 82,202 21,434 60,768 - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation 1,000 244 756 680,434 569,206 111,228 Debt service Capital outlay 13,464,778 4,906,220 8,558,558 1,766,222 594,639 1,171,583 Total expenditures 15,867,601 6,616,949 9,250,652 2,446,656 1,163,845 1,282,811 Excess(deficit)of revenues over(under)expenditures (15,842,601) (6,528,771) 9,313,830 (1,087,656) (184,092) 903,564 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - 32,639 32,639 Transfers in 18,908,900 18,908,900 - 1,012,810 1,050,338 37,528 Transfers out (11,720,300) (11,724,001) (3,701) (333,380) (333,451) (71) Total other financing sources(uses) 7,188,600 7,184,899 (3,701) 679,430 749,526 70,096 Net change in fund balances (8,654,001) 656,128 9,310,129 (408,226) 565,434 973,660 Fund balances at beginning of year 9,215,348 9,215,348 - 741,313 741,313 - Fund balances(deficits)at end of year $ 561,347 $ 9,871,476 $ 9,310,129 $ 333,087 $ 1,306,747 $ 973,660 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 656,128 $ 565,434 Change in fair value of investments 15,183 2,022 Ad valorem refunds not budgeted Change in inventory - - Change in inventory held for resale - - Advances budgeted as transfers - _ Advances reclassified to transfers (49,791,700) - Unbudgetedfunds - - Net change in fund balance,GAAP basis $ (49,120,389) $ 567,456 126 1 3 4 County-Wide Library Correctional Facilities Impact Fees(Budgetary Basis) Impact Fees(Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ 640,000 869,236 229,236 1,100,000 1,471,250 371,250 4,000 8,595 4,595 5,200 12,930 7,730 644,000 877,831 233,831 1,105,200 1,484,180 378,980 - - 185,245 5,568 179,677 127,121 10,933 116,188 - - - 225,516 94,023 131,493 - - - 352,637 104,956 247,681 185,245 5,568 179,677 291,363 772,875 481,512 919,955 1,478,612 558,657 679,000 679,000 - 495,300 495,300 - (1,161,000) (1,161,000) (1,887,100) (1,887,100) - 679,000 (482,000) (1,161,000) (1,391,800) (1,391,800) - 970,363 290,875 (679,488) (471,845) 86,812 558,657 1,890,745 1,890,745 - $ 970,363 $ 290,875 $ (679,488) $ 1,418,900 $ 1,977,557 $ 558,657 $ 290,875 $ 86,812 1,689 2,618 10,429,925 7,027,900 $ 10,722,489 $ 7,117,330 127 COLLIER COUNTY,FLORIDA 1 "�P COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES iil °�/ BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Emergency Medical Services Water Management Impact Fees(Budgetary Basis) (Budgetary Basis) Budget Actual _ Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses,permits and impact fees 260,000 344,533 84,533 - - - Intergovernmental - - - - - - Charges for services - - - - - - Fines and forfeitures - - - - -Interest income 1,400 15,269 13,869 45,800 124,903 79,103 Special assessments - - - 336,400 323,445 (12,955) Miscellaneous - - - - 82,631 82,631 Total revenues 261,400 359,802 98,402 382,200 530,979 148,779 Expenditures: Current: General government - - - - - - Public safety 59,415 5,323 54,092 - - - Physical environment - - - 1,853,643 614,358 1,239,285 Transportation - .. - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - - - - Capital outlay 1,731,504 294,626 1,436,878 13,114,614 2,046,569 11,068,045 Total expenditures 1,790,919 299,949 1,490,970 14,968,257 2,660,927 12,307,330 Excess(deficit)of revenues over(under)expenditures (1,529,519) 59,853 1,589,372 (14,586,057) (2,129,948) 12,456,109 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - Transfers in 1,799,800 1,799,800 - 5,754,900 5,757,836 2,936 Transfers out (447,700) (447,700) - (5,038,115) (4,232,066) 806,049 Total other financing sources(uses) 1,352,100 1,352,100 - 716,785 1,525,770 808,985 Net change in fund balances (177,419) 1,411,953 1,589,372 (13,869,272) (604,178) 13,265,094 Fund balances at beginning of year 430,219 430,219 - 14,123,672 14,123,672 - Fund balances(deficits)at end of year $ 252,800 $ 1,842,172 $ 1,589,372 $ 254,400 $ 13,519,494 $ 13,265,094 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 1,411,953 $ (604,178) Change in fair value of investments 3,102 26,359 Ad valorem refunds not budgeted - - Change in inventory - - Change in inventory held for resale - - Advances budgeted as transfers - - Advances reclassified to transfers 3,215,900 - Unbudgeted funds - - Net change in fund balance,GAAP basis $ 4,630,955 $ (577,819) 128 Parks Impact Districts Road Impact Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ 6,200,000 8,098,940 1,898,940 6,000,000 11,014,501 5,014,501 65,000 - (65,000) 94,600 94,641 41 39,800 139,273 99,473 166,000 450,687 284,687 - - - 27 27 6,304,800 8,238,213 1,933,413 6,260,600 11,559,856 5,299,256 - - 3,937,998 173,975 3,764,023 357,586 126,907 230,679 - - - 11,044,456 3,107,680 7,936,776 36,412,620 4,610,504 31,802,116 11,402,042 3,234,587 8,167,455 40,350,618 4,784,479 35,566,139 (5,097,242) 5,003,626 10,100,868 (34,090,018) 6,775,377 40,865,395 (2,929,900) (3,318,320) (388,420) (4,873,930) - 4,873,930 (2,929,900) (3,318,320) (388,420) (4,873,930) - 4,873,930 (8,027,142) 1,685,306 9,712,448 (38,963,948) 6,775,377 45,739,325 15,722,842 15,722,842 - 47,446,948 47,446,948 - $ 7,695,700 $ 17,408,148 $ 9,712,448 $ 8,483,000 $ 54,222,325 $ 45,739,325 $ 1,685,306 $ 6,775,377 28,809 93,436 $ 1,714,115 $ 6,868,813 129 COLLIER COUNTY,FLORIDA ,. COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES " 4 BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Road Construction Government Facilities (Budgetary Basis) Impact Fees(Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 12,692,000 $ 13,616,925 $ 924,925 $ - $ - $ - Licenses,permits and impact fees - - - 1,700,000 2,349,191 649,191 Intergovernmental 7,137,000 7,449,150 312,150 - - - Chargesforservices 90,300 105,050 14,750 - - - Fines and forfeitures - - - - - - Interest income 121,600 259,933 138,333 10,400 41,909 31,509 Special assessments - - - - - - Miscellaneous 241,742 723,166 481,424 - - - Total revenues 20,282,642 22,154,224 1,871,582 1,710,400 2,391,100 680,700 Expenditures: Current: General government - - - 200,613 6,427 194,186 Public safety - - - - - - Physical environment - - - - - - Transportation 9,921,573 9,853,698 67,875 - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - 10,000 9,125 875 Capital outlay 35,974,172 4,787,005 31,187,167 5,535,350 3,536,636 1,998,714 Total expenditures 45,895,745 14,640,703 31,255,042 5,745,963 3,552,188 2,193,775 Excess(deficit)of revenues over(under)expenditures (25,613,103) 7,513,521 33,126,624 (4,035,563) (1,161,088) 2,874,475 Other financing sources(uses): Bonds issued - - - - - - Premiums on bonds issued - - - - - - Payment to refunding bond escrow - - - - - - Sale of capital assets - - - - - - Insurance proceeds - 4,238 4,238 - - - Transfers in 16,415,500 16,415,276 (224) 8,217,300 8,217,300 - Transfers out (22,258,265) (20,139,251) 2,119,014 (5,012,700) (5,012,700) - Total other financing sources(uses) (5,842,765) (3,719,737) 2,123,028 3,204,600 3,204,600 - Net change in fund balances (31,455,868) 3,793,784 35,249,652 (830,963) 2,043,512 2,874,475 Fund balances at beginning of year 36,646,016 36,646,016 - 3,640,063 3,640,063 - Fund balances(deficits)at end of year $ 5,190,148 $ 40,439,800 $ 35,249,652 $ 2,809,100 $ 5,683,575 $ 2,874,475 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 3,793,784 $ 2,043,512 Change in fair value of investments 54,407 8,634 Ad valorem refunds not budgeted - - Change in inventory - - Change in inventory held for resale - - Advances budgeted as transfers - 630,000 Advances reclassified to transfers - 25,081,800 Unbudgeted funds - Net change in fund balance,GAAP basis $ 3,848,191 $ 27,763,946 130 1 3 ;.‘. Law Enforcement Impact Fees All Terrain Vehicle Park (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ 900,000 1,260,634 360,634 - - - 5,200 30,486 25,286 10,000 25,786 15,786 905,200 1,291,120 385,920 10,000 25,786 15,786 148,492 4,030 144,462 - - - - - 11,801 861 10,940 2,394,000 220,732 2,173,268 2,965,271 - 2,965,271 2,542,492 224,762 2,317,730 2,977,072 861 2,976,211 (1,637,292) 1,066,358 2,703,650 (2,967,072) 24,925 2,991,997 3,758,900 3,758,900 - - - - (2,656,600) (2,656,600) - - - - 1,102,300 1,102,300 - - - - (534,992) 2,168,658 2,703,650 (2,967,072) 24,925 2,991,997 2,967,572 2,967,572 - $ (534,992) $ 2,168,658 $ 2,703,650 $ 500 $ 2,992,497 $ 2,991,997 $ 2,168,658 $ 24,925 6,013 5,468 19,923,100 - $ 22,097,771 $ 30,393 131 COLLIER Y,FLORIDA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL(BUDGETARY BASIS) MAJOR CAPITAL PROJECT AND NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Other Capital Projects (Budgetary Basis) Budget Actual Variance Revenues: Taxes $ - $ - $ - Licenses,permits and impact fees 2,000 5,186 3,186 Intergovernmental - - - Chargesforservices - - - Fines and forfeitures - -Interest income 4,600 8,671 4,071 Special assessments 118,600 115,116 (3,484) Miscellaneous - 118 118 Total revenues 125,200 129,091 3,891 Expenditures: Current: General government 75,000 - 75,000 Public safety 3,852 - 3,852 Physical environment 1,369,134 1,267,026 102,108 Transportation - - - Economic environment - - - Human services - - - Culture and recreation 261,000 59,521 201,479 Debt service - - - Capital outlay 351,571 216,370 135,201 Total expenditures 2,060,557 1,542,917 517,640 Excess(deficit)of revenues over(under)expenditures (1,935,357) (1,413,826) 521,531 Other financing sources(uses): Bonds issued - - - Premiums on bonds issued - - - Payment to refunding bond escrow - - - Sale of capital assets - - - Insurance proceeds - -Transfers in 1,702,200 1,703,087 887 Transfers out (7,900) (3,948) 3,952 Total other financing sources(uses) 1,694,300 1,699,139 4,839 Net change in fund balances (241,057) 285,313 526,370 Fund balances at beginning of year 759,782 759,782 - Fund balances(deficits)at end of year $ 518,725 $ 1,045,095 $ 526,370 See accompanying independent auditor's report Reconciliation: Net change in fund balance,budgetary basis $ 285,313 Change in fair value of investments 1,774 Ad valorem refunds not budgeted - Changeininventory - Change in inventory held for resale - Advances budgeted as transfers - Advances reclassified to transfers - Unbudgetedfunds Net change in fund balance,GAAP basis $ 287,087 132 13A 3 Nonmajor Enterprise Funds EMERGENCY MEDICAL SERVICES — To account for the provision of emergency ambulance and paramedical services to users throughout the County. AIRPORT AUTHORITY—To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT —To account for the provision of public transportation throughout the County. COLLIER COUNTY,FLORIDAI 3A COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30,2015 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds ASSETS Current assets: Cash,cash equivalents and investments $ 7,971,973 $ 1,042,692 $ 1,563,668 $ 10,578,333 Receivables: Trade,net 1,476,879 23,301 13,036 1,513,216 Interest 20,138 2,464 4,293 26,895 Due from other funds 2,743 7,472 8,807 19,022 Due from other governments 29,270 - 126 29,396 Inventory 35,218 90,794 - 126,012 Prepaid costs 159,413 - 101,375 260,788 Restricted assets: Cash,cash equivalents and investments 243,837 24,782 146,303 414,922 Interest receivable 643 - - 643 Due from other governments - 1,326,286 2,814,666 4,140,952 Total current assets 9,940,114 2,517,791 4,652,274 17,110,179 Noncurrent assets: Capital assets: Land and nondepreciable capital assets - 1,805,421 10,195,139 12,000,560 Depreciable capital assets,net 7,058,659 32,326,464 13,281,096 52,666,219 Total noncurrent assets 7,058,659 34,131,885 23,476,235 64,666,779 Total assets 16,998,773 36,649,676 28,128,509 81,776,958 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pensions 3,325,754 78,353 23,696 3,427,803 134 COLLIER COUNTY,FLORIDA COMBINING STATEMENT OF NET POSITION 3A NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2015 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds LIABILITIES Current liabilities: Accounts payable 348,232 65,958 392,221 806,411 Wages payable 1,186,522 43,483 14,319 1,244,324 Retainage payable - - 20,203 20,203 Due to other funds - 979,436 45,934 1,025,370 Due to other governments - 3,390 - 3,390 Unearned revenue - 59,217 - 59,217 Compensated absences 520,911 28,347 4,398 553,656 Capital lease obligations 283,358 - - 283,358 Liabilities payable from restricted assets: Accounts payable - 11,762 1,326,680 1,338,442 Wages payable - - 3,668 3,668 Retainage payable - - 287,769 287,769 Due to other governments - - 68,553 68,553 Refundable deposits - 15,753 - 15,753 Unearned revenue - 8,441 - 8,441 Total current liabilities 2,339,023 1,215,787 2,163,745 5,718,555 Noncurrent liabilities: Compensated absences 130,228 7,087 1,100 138,415 Capital lease obligations 790,609 - - 790,609 Net pension liability 13,402,201 405,822 101,964 13,909,987 Total noncurrent liabilities 14,323,038 412,909 103,064 14,839,011 Total liabilities 16,662,061 1,628,696 2,266,809 20,557,566 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 2,789,805 46,287 18,481 2,854,573 NET POSITION Net investment in capital assets 5,984,692 34,076,248 22,090,343 62,151,283 Restricted for grants and other purposes 244,480 23,464 1,052,993 1,320,937 Unrestricted (5,356,511) 953,334 2,723,579 (1,679,598) Total net position $ 872,661 $ 35,053,046 $ 25,866,915 $ 61,792,622 See accompanying independent auditor's report 135 COLLIER COUNTY,FLORIDA 1 3 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION a'4 NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds Operating revenues: Charges for services $ 12,213,440 $ 3,315,331 $ 1,613,569 $ 17,142,340 Miscellaneous 114,103 34,436 105,637 254,176 Total operating revenues 12,327,543 3,349,767 1,719,206 17,396,516 Operating expenses: Personal services 19,443,811 890,934 282,143 20,616,888 Operating 3,374,158 2,471,325 8,599,140 14,444,623 Depreciation 973,635 1,413,499 1,490,266 3,877,400 Total operating expenses 23,791,604 4,775,758 10,371,549 38,938,911 Operating loss (11,464,061) (1,425,991) (8,652,343) (21,542,395) Non-operating revenues(expenses): Operating grants and contributions 206,588 - 4,788,094 4,994,682 Interest income 78,253 12,366 17,032 107,651 Insurance reimbursement 8,470 - 26,006 34,476 Interest expense (22,363) - - (22,363) Gain(loss)on disposal of capital assets 17,277 361 (3,388) 14,250 Total non-operating revenues(expenses) 288,225 12,727 4,827,744 5,128,696 Loss before contributions and transfers (11,175,836) (1,413,264) (3,824,599) (16,413,699) Capital grants and contributions - 368,842 3,455,290 3,824,132 Transfers in 15,488,300 658,200 3,660,908 19,807,408 Transfers out (3,000) (8,641) - (11,641) Total transfers and contributions 15,485,300 1,018,401 7,116,198 23,619,899 Changes in net position 4,309,464 (394,863) 3,291,599 7,206,200 Net position-beginning,as previously stated 10,443,926 35,813,824 22,700,072 68,957,822 Restatement of net position due to implementation of GASB 68 (13,880,729) (365,915) (124,756) (14,371,400) Net position-as restated (3,436,803) 35,447,909 22,575,316 54,586,422 Net position-ending $ 872,661 $ 35,053,046 $ 25,866,915 $ 61,792,622 See accompanying independent auditor's report 136 1COLLIER COUNTY,FLORIDA 3 COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Total Emergency Collier Nonmajor Medical Airport Area Enterprise Services Authority Transit Funds Cash flows from operating activities: Cash received for services $ 12,281,291 $ 3,367,000 $ 1,862,134 $ 17,510,425 Cash payments for goods and services (2,091,191) (2,083,844) (6,566,896) (10,741,931) Cash payments to employees (20,444,256) (883,674) (312,482) (21,640,412) Cash payments for interfund services (1,241,903) (353,257) (2,242,718) (3,837,878) Net cash provided by(used for)operating activities (11,496,059) 46,225 (7,259,962) (18,709,796) Cash flows from non-capital financing activities: Cash received from operating grants 177,318 - 5,148,096 5,325,414 Cash transfers from other funds 15,488,300 685,408 3,666,004 19,839,712 Cash transfers to other funds (3,000) (3,786,622) - (3,789,622) Net cash provided by(used for)non-capital financing activities 15,662,618 (3,101,214) 8,814,100 21,375,504 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 57,828 - 26,006 83,834 Proceeds from disposal of capital assets 2,416 479 7,894 10,789 Proceeds from capital grants - 6,461,988 2,697,569 9,159,557 Payments for capital acquisitions (2,111,473) (2,563,324) (2,844,951) (7,519,748) Principal payments on leases (278,323) - - (278,323) Interest and fiscal agent fees paid (22,363) - - (22,363) Net cash provided by(used for)capital and related financing activities (2,351,915) 3,899,143 (113,482) 1,433,746 Cash flows from investing activities: Interest on investments 65,382 10,380 13,458 89,220 Net cash provided by investing activities 65,382 10,380 13,458 89,220 Net increase in cash,cash equivalents and investments 1,880,026 854,534 1,454,114 4,188,674 Cash,cash equivalents and investments,October 1,2014 6,335,784 212,940 255,857 6,804,581 Cash,cash equivalents and investments,September 30,2015 $ 8,215,810 $ 1,067,474 $ 1,709,971 $ 10,993,255 Cash,cash equivalents and investments $ 7,971,973 $ 1,042,692 $ 1,563,668 $ 10,578,333 Cash,cash equivalents and investments-restricted 243,837 24,782 146,303 414,922 Cash,cash equivalents and investments,September 30,2015 $ 8,215,810 $ 1,067,474 $ 1,709,971 $ 10,993,255 Operating loss $ (11,464,061) $ (1,425,991) $ (8,652,343) $ (21,542,395) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation expense 973,635 1,413,499 1,490,266 3,877,400 Net changes in assets and liabilities: Trade receivable (17,505) 15,903 136,635 135,033 Due from other funds (2,743) - (38,559) (41,302) Due from other governments 411 - (199) 212 Inventory 5,266 56,505 - 61,771 Prepaid costs 49,050 - (101,375) (52,325) Accounts payable (42,362) (22,281) (85,114) (149,757) Wages payable 117,781 (352) (294) 117,135 Due to other funds - - 21,066 21,066 Due to other governments (48) 1,095 - 1,047 Compensated absences (101,006) (229) (2,038) (103,273) Refundable deposits - (819) - (819) Unearned revenue - 1,054 - 1,054 Net pension liability and related deferred outflows/inflows (1,014,477) 7,841 (28,007) (1,034,643) Total adjustments (31,998) 1,472,216 1,392,381 2,832,599 Net cash provided by(used for)operating activities $ (11,496,059) $ 46,225 $ (7,259,962) $ (18,709,796) Non-cash investing,capital and financing activities: Change in fair value of investments $ 13,096 $ 2,369 $ 3,076 $ 18,541 Contributed capital assets - - 433,985 433,985 Change in capital related grant receivable - (6,093,146) 323,736 (5,769,410) Capital related accounts payable - 55,637 1,077,920 1,133,557 See accompanying independent auditor's report 137 1 3 THIS PAGE INTENTIONALLY LEFT BLANK 13A Internal Service Funds SELF-INSURANCE — To account for the self-insurance costs of providing coverage for property, general and vehicle liability. To account for the provisions of health benefits to Board and participating constitutional officer employees and their dependents. To account for payment of workers'compensation claims, in lieu of insurance. SHERIFF'S SELF-INSURANCE — To account for the provisions of health benefits to Sheriff employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. FLEET MANAGEMENT —To account for fuel, oil, lubricants, repairs and maintenance of County vehicles and the use of certain County owned vehicles by County employees. INFORMATION TECHNOLOGY—To account for the costs of operating the County data processing facility and telephone communication system. COLLIER COUNTY, FLORIDAI3 COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30,2015 Sheriffs Self- Self- Fleet Information Insurance Insurance Management Technology Total ASSETS Current assets: Cash,cash equivalents and investments $ 36,441,402 $ 9,902,000 $ 1,092,518 $ 2,113,445 $ 49,549,365 Receivables: Trade,net 1,241,235 45,012 3,697 - 1,289,944 Interest 102,147 - 2,308 6,127 110,582 Due from other funds 12,604 183,556 59,354 - 255,514 Due from other governments 3,005 - 24,841 - 27,846 Deposits 51,108 - - - 51,108 Inventory 300 - 376,913 12,272 389,485 Total current assets 37,851,801 10,130,568 1,559,631 2,131,844 51,673,844 Noncurrent assets: Capital assets: Depreciable capital assets,net 253,684 - 10,795,210 4,178,541 15,227,435 Total noncurrent assets 253,684 - 10,795,210 4,178,541 15,227,435 Total assets 38,105,485 10,130,568 12,354,841 6,310,385 66,901,279 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pensions 101,567 - 176,170 295,902 573,639 LIABILITIES Current liabilities: Accounts payable 237,744 - 339,124 261,170 838,038 Wages payable 67,295 - 129,581 196,303 393,179 Due to other governments 10,552 - 20,271 - 30,823 Unearned revenue 6,944 - - - 6,944 Self-insurance claims payable 3,533,441 2,170,000 - - 5,703,441 Compensated absences 99,923 - 110,140 191,298 401,361 Total current liabilities 3,955,899 2,170,000 599,116 648,771 7,373,786 Noncurrent liabilities: Self-insurance claims payable 1,255,993 - - - 1,255,993 Compensated absences 24,980 - 27,535 47,825 100,340 Net OPEB obligation 826,053 2,168,099 - - 2,994,152 Net pension liability 468,901 861,531 1,385,042 2,715,474 Total noncurrent liabilities 2,575,927 2,168,099 889,066 1,432,867 7,065,959 Total liabilities 6,531,826 4,338,099 1,488,182 2,081,638 14,439,745 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 72,336 - 115,063 206,648 394,047 NET POSITION Net investment in capital assets 253,684 - 10,795,210 4,107,718 15,156,612 Unrestricted 31,349,206 5,792,469 132,556 210,283 37,484,514 Total net position $ 31,602,890 $ 5,792,469 $ 10,927,766 $ 4,318,001 $ 52,641,126 See accompanying independent auditor's report 140 COLLIER COUNTY,FLORIDA1 COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION 3A INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Sheriffs Self- Self- Fleet Information Insurance Insurance Management Technology Total Operating revenues: Charges for services $ 45,007,675 $ 19,777,998 $ 7,614,087 $ 5,624,804 $ 78,024,564 Miscellaneous 28,497 - 31,872 1,143 61,512 Total operating revenues 45,036,172 19,777,998 7,645,959 5,625,947 78,086,076 Operating expenses: Personal services 1,104,125 - 2,032,635 3,113,464 6,250,224 Operating 41,047,767 21,159,525 6,037,402 2,195,084 70,439,778 Depreciation 25,566 - 570,481 1,250,809 1,846,856 Total operating expenses 42,177,458 21,159,525 8,640,518 6,559,357 78,536,858 Operating income(loss) 2,858,714 (1,381,527) (994,559) (933,410) (450,782) Non-operating revenues(expenses): Interest income 413,837 14,430 10,313 24,220 462,800 Insurance reimbursement 1,100,039 - 2,374 - 1,102,413 Gain(Loss)on disposal of capital assets - - 20,725 149 20,874 Total non-operating revenues(expenses) 1,513,876 14,430 33,412 24,369 1,586,087 Income(loss)before contributions and transfers 4,372,590 (1,367,097) (961,147) (909,041) 1,135,305 Capital grants and contributions 303 - - - 303 Transfers out (1,476,600) - - - (1,476,600) Change in net position 2,896,293 (1,367,097) (961,147) (909,041) (340,992) Net position-beginning,as previously stated 29,201,070 7,159,566 12,775,720 6,727,645 55,864,001 Restatement of net position due to implementation of GASB 68 (494,473) - (886,807) (1,500,603) (2,881,883) Net position-as restated 28,706,597 7,159,566 11,888,913 5,227,042 52,982,118 Net position-ending $ 31,602,890 $ 5,792,469 $ 10,927,766 $ 4,318,001 $ 52,641,126 See accompanying independent auditor's report 141 COLLIER COUNTY, FLORIDA 1 3A COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Sheriffs Self- Self- Fleet Information Insurance Insurance Management Technology Total Cash flows from operating activities: Cash received from other funds for services $ 37,676,361 $18,750,000 $ 7,306,008 $ 5,625,947 $ 69,358,316 Cash received from employees for services 6,787,209 - - - 6,787,209 Cash received from other governments for services - - 368,869 - 368,869 Cash received from retirees for services 586,556 799,430 - - 1,385,986 Cash payments on behalf of retirees (2,439,766) - - - (2,439,766) Cash payments for goods and services (39,043,625) (20,475,265) (5,480,520) (2,022,230) (67,021,640) Cash payments to employees (1,167,377) - (2,083,551) (3,325,507) (6,576,435) Cash payments for interfund services (419,947) - (258,536) (37,188) (715,671) Net cash provided by(used for)operating activities 1,979,411 (925,835) (147,730) 241,022 1,146,868 Cash flows from non-capital financing activities: Cash transfers to other funds (1,476,600) (407,422) - - (1,884,022) Net cash used for non-capital financing activities (1,476,600) (407,422) - - (1,884,022) Cash flows from capital and related financing activities: Receipts from insurance reimbursements 1,114,621 - 5,515 - 1,120,136 Proceeds from disposal of capital assets - - 23,416 149 23,565 Payments for capital acquisitions (38,289) - (114,933) (191,724) (344,946) Net cash provided by(used for)capital and related financing activities 1,076,332 - (86,002) (191,575) 798,755 Cash flows from investing activities: Interest on investments 352,702 14,430 8,831 20,592 396,555 Net cash provided by investing activities 352,702 14,430 8,831 20,592 396,555 Net increase(decrease)in cash,cash equivalents and investments 1,931,845 (1,318,827) (224,901) 70,039 458,156 Cash,cash equivalents and investments,October 1,2014 34,509,557 11,220,827 1,317,419 2,043,406 49,091,209 Cash,cash equivalents and investments,September 30,2015 $ 36,441,402 $ 9,902,000 $ 1,092,518 $ 2,113,445 $ 49,549,365 Operating income(loss) $ 2,858,714 $(1,381,527) $ (994,559) $ (933,410) $ (450,782) Adjustments to reconcile operating income(loss)to net cash provided(used for)by operating activities: Depreciation expense 25,566 - 570,481 1,250,809 1,846,856 Net changes in assets and liabilities: Trade receivable (1,217,721) 60,387 (3,697) - (1,161,031) Due from other funds (900) (183,556) 11,430 - (173,026) Due from other governments (3,005) - 21,185 - 18,180 Inventory - - 378,518 1,660 380,178 Accounts payable 140,395 - (100,364) 134,006 174,037 Wages payable 4,258 - 26,241 5,579 36,078 Due to other funds (39,300) - - - (39,300) Due to other governments 10,552 - 20,192 - 30,744 Compensated absences (12,707) - 9,226 (12,807) (16,288) Unearned revenue (2,828) - - - (2,828) Self-insurance claims payable 294,606 92,000 - - 386,606 Net OPEB obligation (23,416) 486,861 - - 463,445 Net pension liability and related deferred outflows/inflows (54,803) (86,383) (204,815) (346,001) Total adjustments (879,303) 455,692 846,829 1,174,432 1,597,650 Net cash provided by(used for)operating activities $ 1,979,411 $ (925,835) $ (147,730) $ 241,022 $ 1,146,868 Non-cash investing,capital and financing activities: Change in fair value of investments $ 71,112 $ (26,970) $ 1,824 $ 4,216 $ 50,182 Contributed capital assets 303 - - - 303 Capital related accounts payable - - - 70,823 70,823 See accompanying independent auditor's report 142 13A Fiduciary Funds CLERK OF COURTS AGENCY FUND—To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF AGENCY FUND—To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR AGENCY FUND —To account for assets held by the Tax Collector prior to legal disbursement. DEPOSITS AGENCY FUND — To account for monies held by the County for businesses and individuals. PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND — To account for the receipt of special assessments and the payment of principal and interest on behalf of assessment holders. COLLIER COUNTY,FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION 1 311 AGENCY FUNDS SEPTEMBER 30,2015 Pine Ridge Clerk Tax and Naples of Courts Sheriff Collector Deposits Production Park Agency Fund Agency Fund Agency Fund Agency Fund Agency Fund Total ASSETS Cash,cash equivalents and investments $26,821,917 $ 566,302 $ 7,152,324 $ 5,613,684 $ 821,652 $40,975,879 Receivables: Interest - - - 13,959 2,281 16,240 Other - 14,388 18,820 - - 33,208 Total assets $26,821,917 $ 580,690 $ 7,171,144 $ 5,627,643 $ 823,933 $41,025,327 LIABILITIES Due to other governments $ 1,292,816 $ 65,223 $ 7,144,066 $ - $ - $ 8,502,105 Due to individuals - 515,467 27,078 - - 542,545 Refundable deposits 25,529,101 - - 5,627,643 - 31,156,744 Due to special assessment holders - - - - 823,933 823,933 Total liabilities $26,821,917 $ 580,690 $ 7,171,144 $ 5,627,643 $ 823,933 $41,025,327 See accompanying independent auditor's report 144 COUNTY,FLORIDA 3 A ER COMBINING STATEMENTIOF CHANGES IN FIDUCIARY NET POSITION ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash,cash equivalents and investments $ 26,166,962 $ 187,125,599 $ 186,470,644 $ 26,821,917 Total assets $ 26,166,962 $ 187,125,599 $ 186,470,644 $ 26,821,917 Liabilities: Due to other governments $ 1,134,274 $ 11,122,487 $ 10,963,945 $ 1,292,816 Refundable deposits 25,032,688 176,003,112 175,506,699 25,529,101 Total liabilities $ 26,166,962 $ 187,125,599 $ 186,470,644 $ 26,821,917 Sheriff Agency Fund Assets: Cash,cash equivalents and investments $ 600,082 $ 3,733,558 $ 3,767,338 $ 566,302 Receivable: Other 23,827 14,388 23,827 14,388 Total assets $ 623,909 $ 3,747,946 $ 3,791,165 $ 580,690 Liabilities: Due to other governments $ 60,129 $ 65,223 $ 60,129 $ 65,223 Due to individuals 563,780 515,467 563,780 515,467 Total liabilities $ 623,909 $ 580,690 $ 623,909 $ 580,690 Tax Collector Agency Fund Assets: Cash,cash equivalents and investments $ 6,817,938 $ 889,709,054 $ 889,374,668 $ 7,152,324 Receivable: Other 14,902 2,623,036 2,619,118 18,820 Total assets $ 6,832,840 $ 892,332,090 $ 891,993,786 $ 7,171,144 Liabilities: Due to other governments $ 6,747,383 $ 1,150,978,126 $ 1,150,581,443 $ 7,144,066 Due to individuals 85,457 38,154,904 38,213,283 27,078 Total liabilities $ 6,832,840 $ 1,189,133,030 $ 1,188,794,726 $ 7,171,144 Deposits Agency Fund Assets: Cash,cash equivalents and investments $ 6,603,422 $ 979,691 $ 1,969,429 $ 5,613,684 Receivables: Interest 7,009 13,959 7,009 13,959 Total assets $ 6,610,431 $ 993,650 $ 1,976,438 $ 5,627,643 Liabilities: Refundable deposits $ 6,610,431 $ 962,626 $ 1,945,414 $ 5,627,643 Total liabilities $ 6,610,431 $ 962,626 $ 1,945,414 $ 5,627,643 (Continued) 145 COUNTY, ER COMBINING STATEMENTIOF CHANGES IN FLORIDA D CIARY NET POSITION 13 ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2014 Balance Balance October 1 Additions Deductions September 30 Pine Ridge and Naples Production Park Agency Assets: Cash,cash equivalents and investments $ 1,117,644 $ 9,108 $ 305,100 $ 821,652 Receivables: Interest 1,288 2,281 1,288 2,281 Other - - - - Total assets $ 1,118,932 $ 11,389 $ 306,388 $ 823,933 Liabilities: Due to special assessment holders $ 1,118,932 $ 10,101 $ 305,100 $ 823,933 Total liabilities $ 1,118,932 $ 10,101 $ 305,100 $ 823,933 Total -All Agency Funds Assets: Cash,cash equivalents and investments $ 41,306,048 $ 1,081,557,010 $ 1,081,887,179 $ 40,975,879 Receivables: Interest 8,297 16,240 8,297 16,240 Other 38,729 2,637,424 2,642,945 33,208 Total assets $ 41,353,074 $ 1,084,210,674 $ 1,084,538,421 $ 41,025,327 Liabilities: Due to other governments $ 7,941,786 $ 1,162,165,836 $ 1,161,605,517 $ 8,502,105 Due to individuals 649,237 38,670,371 38,777,063 542,545 Refundable deposits 31,643,119 176,965,738 177,452,113 31,156,744 Due to special assessment holders 1,118,932 10,101 305,100 823,933 Total liabilities $ 41,353,074 $ 1,377,812,046 $ 1,378,139,793 $ 41,025,327 See accompanying independent auditor's report 146 A 3 1 ' Component Units COLLIER COUNTY HOUSING FINANCE AUTHORITY — The authority was established for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. COLLIER COUNTY HEALTH FACILITIES AUTHORITY — The authority was established for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY — The authority was established for the purpose of facilitating projects that promote economic growth and opportunities for employment in Collier County. COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY—The authority was established for the purpose of assisting institutions of higher education in the construction,financing and refinancing of projects. COLLIER COUNTY, FLORIDA COMPONENT UNITS COMBINING STATEMENT OF NET POSITION A SEPTEMBER 30,2015 Housing Health Industrial Educational Finance Facilities Development Facilities Authority Authority Authority Authority Totals ASSETS Cash,cash equivalents and investments $ 125,934 $ 92,691 $ 54,993 $ 70,057 $ 343,675 Total Assets $ 125,934 $ 92,691 $ 54,993 $ 70,057 $ 343,675 NET POSITION Net position-unrestricted $ 125,934 $ 92,691 $ 54,993 $ 70,057 $ 343,675 Total Net Position $ 125,934 $ 92,691 $ 54,993 $ 70,057 $ 343,675 See accompanying independent auditor's report 148 1 3 COLLIER COUNTY, FLORIDA COMPONENT UNITS COMBINING STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 Net(Expense) Revenue and Changes Program Revenues in Net Position Fees,Fines and Governmental FUNCTIONS/PROGRAMS Expenses Charges for Services Activities Housing Finance Authority $ 85 $ 32,905 $ 32,820 Health Facilities Authority 12 75,000 74,988 Industrial Development Authority 15 32,500 32,485 Total $ 112 $ 140,405 140,293 General revenues: Interest income 78 Total general revenues 78 Change in net position 140,371 Net position-beginning 203,304 Net position-ending $ 343,675 See accompanying independent auditor's report 149 THIS PAGE INTENTIONALLY LEFT BLANK I 3 ift Other Supplemental Information Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. 3 A OTHER SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Amount Amount Received Expended in the in the 2015 2015 Source Fiscal Year Fiscal Year British Petroleum: Settlement agreement 1,981,641 - British Petroleum: Gulf Seafood and Tourism Promotional Fund 125,000 491,889 Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2015 fiscal year. 152 13A STATISTICAL SECTION (UNAUDITED) Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non-accounting data.These schedules reflect social and economic data,and financial trends of Collier County, Florida. CONTENTS PAGE FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government's financial performance and wellbeing have changed over time. Net position by component 154 Change in net position 155 Governmental activities tax revenues by source 158 Fund balances of governmental funds 159 Changes in fund balance of governmental funds 160 REVENUE CAPACITY These schedules contain information to help the reader assess the County's most significant local revenue source,the Property Tax. Assessed value and estimated actual value of taxable property 162 Property tax rates—All direct and overlapping governments 163 Principal tax payers County-wide 164 Property tax levies and collections 165 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Ratios of outstanding debt by type 166 Ratios of general bonded debt outstanding 167 Legal debt margin information 168 Direct,overlapping and underlapping governmental activities debt 168 Pledged-revenue coverage 169 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. Demographic and economic statistics 170 Principal employers 171 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Budgeted full-time equivalent County employees by function 172 Operating indicators by function 173 Capital Asset statistics by function/program 174 Sources: Unless otherwise noted,the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB 34 for fiscal year 2002. Schedules presenting government-wide information include information beginning in that fiscal year. 13A 00 M N M N IN 00 ul 0 0 CO 00 in O 01 M N CO 0 0 00 01 01 0 IN 0 0 tV IN 0 N 0 0 0 N N 0.0 0 N V) 00 t0 u1 00 n .4 00 1.1 u1 N 0 tO N M O N n N N in N M 001 N n in N H 1-1.- 1/1. VT VT N N VT ,-I t0 .-I 00 VI 00 CO 01 tO N 01 N 0 0 N O .. 0 M 01 VI 01 01 O n 01 n CO ul 0 n 0 N 01 0 00 in O -i C n C 0 0 i0 in .i ul 0 00 00 0 .. 0 00000000 .-I n 0 CO ON CO N m 0 10 N ul N O - .i .1 N VT VT N N VT VT M N .-1 tO ul 0l .-I ,-I 00 IN N n in .. M o1 0 10 W. 01 .. N 01 CO u l 0 0 ul 00 .. 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IL a I i 0 3 3 174 1 3 A SINGLE AUDIT/FEDERAL AND STATE SCHEDULE OF FINANCIAL ASSISTANCE The Single Audit/Federal and State schedule of financial assistance section presents Grants compliance reports filed by Collier County with Federal government and State government, respectively. THIS PAGE INTENTIONALLY LEFT BLANK 1 3 4 r i -''' CliftonLarsonAllen LLP CLAconnect corn CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated May 10, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County'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 opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2015-001 to be a material weakness. 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. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2015-002 to be a significant deficiency. NEXTA M I de{xlderrt rrertter Of rkwa trrterratiaral I NTBR N Alin NA1. 177 I 3 A Honorable Board of County Commissioners v Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. County's Response to Findings The County's response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs in which the findings are reported. The County's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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. d9,-1 OA 4•it /-Zo ZZ CliftonLarsonAllen LLP Naples, Florida May 10, 2016 178 s CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County, Florida's (County) compliance with the types of compliance requirements described in OMB Circular A-133 Compliance Supplement and in Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the County's major federal programs and state projects for the year ended September 30, 2015. The County's major federal programs and state projects are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditors'Responsibility Our responsibility is to express an opinion on compliance for each of the County's major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133 and Chapter 10.550, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County's compliance. NX I A M irdcperxklt rreritEr ci Neva International .N TERN A.10\ 179 3 Honorable Board of County Commissioners Collier County, Florida Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2015. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as item 2015-003. Our opinion on each major federal program is not modified with respect to these matters. The County's response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs was not subjected to the auditing procedures Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2015-003 to be a material weakness. 180 Honorable Board of County Commissioners Collier County, Florida A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2015-004, 2015-005, 2015-006 to be significant deficiencies. The County's responses to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The County's responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the result of that testing based on the requirements of OMB Circular A-133 and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. e/e/4 014.4"701I-4, ZL CliftonLarsonAllen LLP Naples, Florida May 10, 2016 181 COLLIER COUNTY,FLORIDA SCHEDULE OF EXPENDITURES OF > FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 CFDA 8/ Transfers to Federal or State Grantor/Pass-Through Grantor/Program or Project Title CSFA# Grant/Contract Number Expenditures Subrecipients Department of Agriculture Indirect Programs: Florida Department of Agriculture and Consumer Services: Summer Food Service Program for Children 10.559 04-0804 $ 88,824 $ - Cooperative Forestry Assistance 10.664 Collier County 1,050 - Total Department of Agriculture 89,874 - Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: Community Development Block Grants/Entitlement Grants 14.218 B-04-UC-12-0016 67,246 - Community Development Block Grants/Entitlement Grants 14.218 B-05-UC-12-0016 1,801 - Community Development Block Grants/Entitlement Grants 14.218 B-08-UN-12-0003 69,321 - Community Development Block Grants/Entitlement Grants 14.218 B-11-UC-12-0016 190,596 178,442 Community Development Block Grants/Entitlement Grants 14.218 B-11-UN-12-0003 63,863 - Community Development Block Grants/Entitlement Grants 14.218 B-12-UC-12-0016 106,539 95,217 Community Development Block Grants/Entitlement Grants 14.218 B-13-UC-12-0016 783,963 756,713 Community Development Block Grants/Entitlement Grants 14.218 B-14-UC-12-0016 866,434 423,987 Total CFDA 2,149,763 1,454,359 Emergency Solutions Grant Program 14.231 E-12-UC-12-0024E 2,364 2,364 Emergency Solutions Grant Program 14.231 E-13-UC-12-0024 80,706 64,847 Emergency Solutions Grant Program 14.231 E-14-UC-12-0024 64,851 52,593 Total CFDA 147,921 119,804 Home Investment Partnerships Program 14.239 M-03-UC-12-0217 19,760 19,760 Home Investment Partnerships Program 14.239 M-04-UC-12-0217 47,660 47,660 Home Investment Partnerships Program 14.239 M-05-UC-12-0017 40,702 40,702 Home Investment Partnerships Program 14.239 M-06-UC-12-0217 92,946 92,946 Home Investment Partnerships Program 14.239 M-07-UC-12-0217 • 35,538 35,538 Home Investment Partnerships Program 14.239 M-08-UC-12-0217 232,374 168,957 Home Investment Partnerships Program 14.239 M-10-UC-12-0217 75,722 - Home Investment Partnerships Program 14.239 M-11-UC-12-0217 43,795 43,795 Home Investment Partnerships Program 14.239 M-13-UC-12-0217 845 - Home Investment Partnerships Program 14.239 M-14-UC-12-0217 61,383 - Total CFDA 650,725 449,358 Indirect Programs: Florida Department of Economic Opportunity: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.228 07DB-3V-09-21-01-ZO1 1,921 - Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.228 O8DB-D3-09-21-01-A03 1,973 - Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.228 10DB-D4-09-21-01-K09 724,124 300,776 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.228 12DB-P5-09-21-01-K39 2,642,262 157,021 Total CFDA 3,370,280 457,797 Total Department of Housing and Urban Development 6,318,689 2,481,318 Department of the Interior Direct Programs: Office of the Secretary: Payments in Lieu of Taxes 15.226 Collier County 1,204,083 - Fish and Wildlife Service: Partners for Fish and Wildlife 15.631 F14AC00709 9,994 - National Wildlife Refuge Fund 15.659 Collier County 155,985 - Total Department of the Interior 1,370,062 - Department of Justice Direct Programs: Violence Against Women Office: Supervised Visitation,Safe Havens for Children 16.527 2009-CW-AX-1(011 151,529 - (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. 182 COLLIER COUNTY,FLORIDA SCHEDULE OF EXPENDITURES OF 4 uy FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE d_. 41y + ,‘ FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 "� i^ CFDA 8/ Transfers to Federal or State Grantor/Pass-Through Grantor/Program or Project Title CSFA# Grant/Contract Number Expenditures Subrecipients Office of Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2012ULWX0008 $ 61,456 $ - Public Safety Partnership and Community Policing Grants 16.710 2013ULWX0047 180,708 - Total CFDA 242,164 - Criminal Division: Equitable Sharing Program 16.922 Collier County Sheriff 65,274 - Bureau of Justice Assistance: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2014-DJ-BX-0305 37,757 - Indirect Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015-JAGC-COLL-1-R3-109 94,809 - Total CFDA 132,566 - Florida Office of the Attorney General: Crime Victim Assistance 16.575 V005-14129 126,718 - Florida Department of Children and Families-Florida Coalition Against Domestic Violence: Violence Against Women Formula Grants 16.588 15-8008-LE-INV 74,456 - Violence Against Women Formula Grants 16.588 16-8008-LE-INV 31,472 - Total CFDA 105,928 - Total Department of Justice 824,179 - Department of Transportation Direct Programs: Federal Aviation Administration(FAA): Airport Improvement Program 20.106 3-12-0031-008-2013 240,847 - Airport Improvement Program 20.106 3-12-0142-010-2013 125,269 - Total CFDA 366,116 - Federal Transit Administration(FTA): Federal Transit Cluster: Federal Transit_Capital Investment Grants 20.500 FL-03-0264-00 65,461 - Federal Transit_Capital Investment Grants 20.500 FL-04-0033-00 236,348 - Federal Transit_Capital Investment Grants 20.500 FL-04-0034-00 226,710 - Federal Transit_Capital Investment Grants 20.500 FL-04-0047-00 63,596 - Federal Transit_Capital Investment Grants 20.S00 FL-04-0117-00 171,674 - Total CFDA 763,789 - Federal Transit_Formula Grants 20.507 FL-90-X699-00 510,850 - Federal Transit_Formula Grants 20.507 FL-90-X731-00 25,413 - Federal Transit_Formula Grants 20.507 FL-90-X766-00 27,403 - Federal Transit_Formula Grants 20.507 FL-90-X784-00 154,435 - Federal Transit_Formula Grants 20.507 FL-90-X816-00 1,444,763 - Federal Transit_Formula Grants 20.507 FL-90-X853-00 1,009,928 - Federal Transit_Formula Grants 20.507 FL-95-X069-00 1,139,119 - ARRA Federal Transit_Formula Grants 20.507 ARRA-FL-96-X019-00 14,970 - Total CFDA 4,326,881 - Bus and Bus Facilities Formula Program 20.526 FL-34-0004-00 308,334 - Total Federal Transit Cluster 5,399,004 - Indirect Programs: Florida Department of Transportation: Highway Planning and Construction - 20.205 425670-1/A4377 647,412 - Highway Planning and Construction 20.205 429897-1/ARF41 306,919 - Highway Planning and Construction 20.205 429899-1/G0258 55 - Highway Planning and Construction 20.205 429900-1/ARROO 58 - Highway Planning and Construction 20.205 430868-1/AR481 172,313 - Highway Planning and Construction 20.205 430875-1/ARS55 58 - Total CFDA 1,126,815 - Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research 20.505 410113-1/AQR14 206,777 - Formula Grants for Rural Areas 20.509 410120-1/AQR01 404,500 - (Continued) 183 COLLIER COUNTY,FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 CFDA B/ Transfers to Federal or State Grantor/Pass-Through Grantor/Program or Project Title CSFA if Grant/Contract Number Expenditures Subrecipients Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL-16-0038 $ 385,764 $ - Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL-16-0039 10,838 _ Total CFDA 396,602 - Total Department of Transportation 7,899,814 - U.S.Election Assistance Commission Indirect Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 2013-2014-0001 33 Help America Vote Act Requirements Payments 90.401 2014-2015-0001-COL 45,417 Total U.S.Election Assistance Commission 45,450 Department of Health and Human Services Indirect Programs: Florida Department of Elder Affairs-Area Agency on Aging for Southwest Florida,Inc.: Aging Cluster: Special Programs for the Aging_Title Ill,Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.14 19,536 - Special Programs for the Aging_Title III,Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.15 48,013 - Total CFDA 67,549 - Special Programs for the Aging_Title III,Part C_Nutrition Services 93.045 OAA 203.14 115,206 - Special Programs for the Aging_Title Ill,Part C_Nutrition Services 93.045 OAA 203.15 370,405 Total CFDA 485,611 - Nutrition Services Incentive Program 93.053 NSIP 203.14 740 - Nutrition Services Incentive Program 93.053 NSIP 203.15 39,778 - Total CFDA 40,518 Total Aging Cluster 593,678 National Family Caregiver Support,Title Ill,Part E 93.052 OAA 203.14 23,273 - National Family Caregiver Support,Title Ill,Part E 93.052 OAA 203.15 98,666 - Total CFDA 121,939 Florida Department of Revenue: Child Support Enforcement 93.563 COC11 300,590 - Florida Department of State: Voting Access for Individuals with Disabilities_Grants to States 93.617 2014-2015-0003-CLL 8,616 - Total Department of Health and Human Services 1,024,823 - Corporation for National and Community Service Direct Programs: Retired and Senior Volunteer Program 94.002 12SRSFLO12 37,933 - Retired and Senior Volunteer Program 94.002 15SRSFLO15 8,013 - Total Corporation for National and Community Service 45,946 - Department of Homeland Security Indirect Programs: Florida Executive Office of the Governor: Disaster Grants-Public Assistance(Presidentially Declared Disasters) 97.036 13-DB-73-09-21-02-530 1,979,531 - Disaster Grants-Public Assistance(Presidentially Declared Disasters) 97.036 13-IS-3S-09-21-02-571 202,178 - Total CFDA 2,181,709 - Emergency Management Performance Grants 97.042 1S-FG-40-09-21-01-078 101,065 - Homeland Security Grant Program 97.067 14-DS-L5-09-21-01-343 2,100 - Homeland Security Grant Program 97.067 14-DS-L5-09-21-23-369 58,569 - Homeland Security Grant Program 97.067 15-DS-P4-09-21-02-277 5,425 - Total CFDA 66,094 - Total Department of Homeland Security 2,348,868 - TOTAL EXPENDITURES OF FEDERAL AWARDS $ 19,967,705 $ 2,481,318 (Continued) 184 COLLIER COUNTY,FLORIDA5 itt SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 CFDA It/ Transfers to Federal or State Grantor/Pass-Through Grantor/Program or Project Title CSFA U Grant/Contract Number Expenditures Subrecipients Florida Executive Office of the Governor Direct Projects: Emergency Management Programs 31.063 15-BG-83-09-21-01-011 $ 74,920 $ - Emergency Management Programs 31.063 16-BG-83-09-21-01-011 35,429 - Total Florida Executive Office of the Governor 110,349 - Florida Department of Environmental Protection Direct Projects: Beach Management Funding Assistance Program 37.003 14C01 154,184 - Total Florida Department of Environmental Protection 154,184 - Florida Department of Economic Opportunity Direct Projects: Local Economic Development Initiatives 40.012 SLOO7 721,996 - Indirect Projects: Florida Sports Foundation: Enterprise Florida,Inc 40.003 Football University Nat'l Championship 16,000 - Enterprise Florida,Inc 40.003 HITS Triathlon Series 3,500 Total CSFA 19,500 - Florida Tourism Industry Marketing Corporation dba VISIT FLORIDA 0: Visit Florida 40.006 Naples,Marco Island,Everglades CVB 23,916 - Total Florida Department of Economic Opportunity 765,412 - Florida Department of State and Secretary of State Direct Projects: State Aid to Libraries 45.030 11-ST-09 63,911 - State Aid to Libraries 45.030 12-ST-08 7,575 - State Aid to Libraries 45.030 13-ST-08 178,047 - State Aid to Libraries 45.030 14-ST-08 1,265 - Total Florida Department of State and Secretary of State 250,798 - Florida Housing Finance Corporation Direct Projects: State Housing Initiatives Partnership(SHIP)Program 52.901 FY 11/12 140,873 60,873 State Housing Initiatives Partnership(SHIP)Program 52.901 FY 12/13 40,000 - State Housing Initiatives Partnership(SHIP)Program 52.901 FY 13/14 360,875 128,968 State Housing Initiatives Partnership(SHIP)Program 52.901 FY 14/15 106,253 1,250 Total Florida Housing Finance Corporation 648,001 191,091 Florida Department of Transportation Direct Projects: Commission for the Transportation Disadvantaged(CTD)Trip and Equipment Grant Program 55.001 410656-1/ARP71 51,662 - Commission for the Transportation Disadvantaged(CTD)Trip and Equipment Grant Program 55.001 432027-1/432028-1/ARF15 631,014 - Commission for the Transportation Disadvantaged(CTD)Trip and Equipment Grant Program 55.001 432027-1/432028-1/GO13S 148,610 - Total CSFA 831,286 - Commission for the Transportation Disadvantaged(CTD) Planning Grant Program 55.002 432029-1/ARH55 18,937 - Commission for the Transportation Disadvantaged(CTD) Planning Grant Program 55.002 432029-1/G0216 5,966 - Total CSFA 24,903 - Aviation Development Grants 55.004 430969-1/AR519 (4,234) - Aviation Development Grants 55.004 430983-1/AR513 6,959 Total CSFA 2,725 - Public Transit Block Grant Program 55.010 410139-1/AQQ16 1,025,249 - Public Transit Service Development Program 55.012 432836-1/AQQ85 28,106 - Public Transit Service Development Program 55.012 435214-1/ARJ84 124,028 - Total CSFA 152,134 - (Continued) 185 COLLIER COUNTY,FLORIDA SCHEDULE OF EXPENDITURES OF 3 A FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2015 CFDA 8/ Transfers to Federal or State Grantor/Pass-Through Grantor/Program or Project Title CSFA N Grant/Contract Number Expenditures Subrecipients Transportation Regional Incentive Program(TRIP) 55.026 425840-1/ARF43 $ 2,144,913 $ - Alligator Alley Mile Marker 63 Fire Station 55.036 435389-1/ARF81 2,452,707 - Total Florida Department of Transportation 6,633,917 - Florida Department of Children and Families Direct Projects: Public Safety,Mental Health,and Substance Abuse Local Matching Grant 60.115 LHZ46 219,256 184,423 Total Florida Department of Children and Families 219,256 184,423 Florida Department of Health Direct Projects: County Grant Awards 64.005 C3011 54,195 - Total Florida Department of Health 54,195 - Florida Department of Elder Affairs Indirect Projects: Area Agency on Aging for Southwest Florida,Inc.: Home Care for the Elderly 65.001 HCE 203.14 11,814 - Home Care for the Elderly 65.001 HCE 203.15 8,939 Total CSFA 20,753 - Alzheimer's Respite Services 65.004 ADI 203.14 208,061 - Alzheimer's Respite Services 65.004 ADI 203.15 79,457 - Total CSFA 287,518 - Community Care for the Elderly 65.010 CCE 203.14 605,254 - Community Care for the Elderly 65.010 CCE 203.15 154,050 - Total CSFA 759,304 - Total Florida Department of Elder Affairs 1,067,575 - TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 9,903,687 $ 375,514 186 Collier County, Florida Notes to the Schedule of Expenditures of Federal 3 A Awards and State Financial Assistance Year Ended September 30, 2015 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Projects (the Schedule) includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on the modified accrual basis of accounting for expenditures accounted for in the governmental funds and the accrual basis of accounting for expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is both measurable and available for use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. The information in the schedule is presented in accordance with the requirements of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Section 215.97, Florida Statutes. Therefore, some amounts presented in the Schedule may differ from amounts presented, or used in the preparation of, the basic financial statements for the fiscal year ended September 30, 2015. 2.Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. 3. Negative Figures on the Schedule of Expenditures Negative expenditures reported in the Schedules of Expenditures of Federal Awards and State Financial Assistance are a result of corrections which reduced expenditures in one grant and increased expenditures in another grant or funding source. Although the current expenditures on a grant may be negative, the total of all expenditures on the grant is expected to be positive over its total period of performance. 187 COLLIER COUNTY, FLORIDA 1 Schedule of Findings and Questioned Costs ' Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part I—Summary Auditors' Results Financial Statement Section Type of auditors' report issued: Unmodified Internal control over financial reporting: Material weakness(es)identified? Yes Significant deficiencies identified not considered to be a material weakness(es) Yes Noncompliance material to financial statements noted? No Federal Awards Section Internal control over compliance: Material weakness(es)identified? Yes Were significant deficiency(ies)identified not considered to be a material Yes weakness(es) Type of auditors' report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Yes OMB Circular A-133, Section 510(a) Identification of major federal programs: CFDA Number Name of Federal Program or Cluster 14.218 Community Development Block Grants/ Entitlement Grants 15.226 Payments in Lieu of Taxes 16.710 Public Safety Partnership and Community Policing Grants 20.106 Airport Improvement Program 20.509 Formula Grants for Rural Areas 97.036 Disaster Grants-Public Assistance 20.500, 20.507, 20.526 Federal Transit Cluster 93.044, 93.045, 93.053 Aging Cluster Dollar threshold used to determine Type A Federal program $599,031 Auditee qualified as low-risk auditee? Yes 188 COLLIER COUNTY, FLORIDA "" Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 State Financial Assistance Section Internal control over compliance: Material weakness(es)identified? No Were significant deficiency(ies)identified not considered to be a material Yes weakness(es) Type of auditors' report issued on compliance for major projects: Unmodified Identification of major State projects: CSFA Number Name of State Project 40.012 Local Economic Development Initiatives 55.001 Commission for the Transportation Disadvantaged(CTD)Trip and Equipment Grant Program 55.010 Public Transit Block Grant Program 55.036 Alligator Alley Mile Marker 63 Fire Station 65.004 Alzheimer's Respite Services Dollar threshold used to determine Type A State projects $300,000 189 .4 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part II - Financial Statement Findings This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements and abuse related to the financial statements for which Government Auditing Standards requires reporting in a Circular A-133 and Section 215.97, Florida Statutes, audit. 2015-001 Inventory Type of Finding: Material Weakness in Internal Control over Financial Reporting Criteria: County management is responsible for establishing and maintaining internal controls for proper recording of the County's inventory. Condition: Inventory was not properly recorded on the County's books for two departments within the general fund for several years. Cause: The individuals who were responsible for reporting the inventory to the Clerk's office for proper recording on the financial statements were not familiar with the impact in regards to financial reporting. Effect: Inventory was understated in previous years with expenditures overstated in the general fund as well as the Government Wide Statement of Net Position. Recommendation: We recommend that County staff be trained to understand the reporting of inventory to the Clerk's office for financial reporting purposes. Views of Responsible Officials and Corrective Action Plan: Staff self-reported the end of year inventory reporting omission to the Finance Department. While not properly reported, the inventory was properly tracked, controlled and accounted for. There was no evidence or indication of fraudulent activity identified. A series of trainings have been developed and held for the Administrative Service Department Directors and affected Divisions during September through November of 2015. Training topics reviewed inventory basics, external audit reviews and segregation of duties. 190 COLLIER COUNTY, FLORIDA 1 A Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 2015-002 Subcontractor Agreements Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria: The County must have sufficient controls over expenditures to provide reasonable assurance to ensure that costs are allowable under grant agreements and supported by adequate documentation. Such controls would extend to the contractual agreements that govern these expenditures. Condition: The County entered into an agreement with a subcontractor which included specific procurement policies to ensure any purchases were conducted in an open manner resulting in competitive pricing, proper management and oversight, accountability and efficiency, and for the prevention of waste, fraud and abuse. During the term of the agreement, the subcontractor entered into a purchase order with a vendor for over$100,000. The procurement policy requires advertisements for competitive proposals amongst several other items. Not all of the items for this particular procurement were performed by the subcontractor. Cause/Effect: The County Department did not follow establish controls in place as defined by the agreement that the County entered into with the subcontractor. Recommendation: County staff should understand and become familiar with the terms and conditions of their contractor agreements and develop tools to assist in the effective monitoring of the compliance requirements of the agreements. Views of Responsible Officials and Corrective Action Plan: Background: The subcontractor's purchasing procedures required competition through advertisement for purchase orders above $100,000. Rather, competitive quotations were obtained due to the specialized type of systems furniture specified and to expedite the receipt of goods and assembly prior to the state grant agreement expiration date. On March 8; 2016, the Board of County Commissioners accepted the alternative procurement method, authorized payment and waived the procurement irregularities in the subcontractor's purchasing policy. Payment in full was issued to the vendor on May 12, 2016. Collier Economic Division staff and team members familiar with the subcontract have provided training to the subcontractor during February 2016 to review the procurement process requirements and proper supporting documentation. Monitoring will continue to take place through review of pay request submittals and communications. 191 COLLIER COUNTY, FLORIDA ftOf Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part III - Findings and Questioned Costs— Major Federal Programs This section identifies the audit findings required to be reported by Section .501(a) of Circular A- 133 as well as any abuse findings involving federal awards that is material to a major program. 2015-003 Allowable Costs and Activities Federal Program/State Project Information Department of Justice Passed through Office of Community Oriented Policing Services CFDA 16.710 Public Safety Partnerships and Community Policing Grants Award No. 2012ULWX0008 Award No. 2013ULWX0047 Type of Finding: Material Weakness in Internal Control over Compliance Criteria The Collier County Sheriff is required to provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable in accordance with applicable cost principles. Condition The Collier County Sheriff requested reimbursement for salaries and benefits beyond the approved entry level salary per the grant agreement. Context Out of a population of 12 monthly payroll reimbursement claims, the auditor haphazardly selected a sample of 4 monthly claims for testing. 3 of the 4 monthly claims tested include revised calculations that were corrected in May of 2015. Question Costs None Cause Both the Grant Coordinator and the Assistant Finance Director misunderstood the terms of the agreement. Effect The error was corrected during the fiscal year and was not material to the program; however, had the County not detected the unallowed costs, amounts could have been material. 192 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Recommendation The Collier County Sheriff should implement continued training for the Grant Coordinator and the Assistant Finance Director related to grant compliance. Views of Responsible Officials and Corrective Action Plan When the budget for the COPS Grant was developed it included all salary funding in one category. When some of the initial claims were prepared, amounts were submitted for reimbursement which was above the entry level salaries, but the yearly allocation was not exceeded. When these differences were discovered the Grants Coordinator contacted the COPS Grantor regarding these differences. The Grantor advised to adjust the next claims. The initial claims were never questioned or declined by the Grantor. The Grant Coordinator communicated with the Grantor once the salary differences were discovered on the initial claims. Corrections were made within the grant year minimizing the potential of any questioned or disallowed costs. The Grant Coordinator and Assistant Finance Director have read and understand the terms of the Grants but will review again to ensure grant compliance. Responsible party: Andrea Marsh, Finance Director Planned completion date for corrective action plan: January 2016 2015-004 Reporting Federal Program/State Project Information Department of Justice Passed through Office of Community Oriented Policing Services CFDA 16.710 Public Safety Partnerships and Community Policing Grants Award No. 2012ULWX0008 Award No. 2013ULWX0047 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria The Collier County Sheriff should have review and approval over quarterly reports prior to submission for both performance and financial reports. Condition The same person who prepares the quarterly performance and financial reports submits said reports; thus, there is no independent review. 193 COLLIER COUNTY, FLORIDA 1 3 A Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Context Out of a population of 12 reports, the auditor haphazardly selected a sample of 4 reports (2 financial and 2 performance) and noted that all reports lacked review and approval prior to submission to the grantor. Question Costs None Cause The Grant Coordinator prepares both the Financial and Performance reports in the COPS online system. She does not provide the data to be input or data inputted to the Assistant Finance Director for review and approval prior to submission. Effect Inaccurate reporting could result in potential loss of funding. Recommendation The Collier County Sheriff should design and implement internal control policies and procedures to ensure accurate reporting through review and approval. Views of Responsible Officials and Corrective Action Plan Financial quarterly reports are a compilation of the previous three months' claims which and are submitted online. The monthly claims are prepared by the Grants Fiscal Clerk, reviewed by the Grants Coordinator, and reviewed, approved and signed by the Assistant Finance Director. The Grants Coordinator calculates the three monthly claim totals and keys the amount into the quarterly report. The Grants Coordinator verifies that the report balances with the total from the claims for the three months. Future procedures will include the Grants Coordinator printing the screen of the information which was keyed for the report prior to submission. The Assistant Finance Director will review verifying that the total balances to the summation of all the claims for that quarter. Once verified, she will sign the printed screen prior to the report being submitted by the Grants Coordinator. The Finance Director will do a post review once each quarterly report has been submitted. Performance reports are prepared by the Grants Coordinator based on information received from the assigned Program Managers. Future procedures will include a report template which the Program Managers will complete and return to the Grants Coordinator for review. As with the online claims submissions, the Assistant Finance Director will also review the reports before final online submission by the Grants Coordinator. The Finance Director will do a post review once each quarterly report has been submitted. Responsible party: Andrea Marsh, Finance Director Planned completion date for corrective action plan: January 2016 194 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Ws, • e Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 2015-005 Eligibility Federal Program/State Project Information Department of Health and Human Services Passed through the Florida Department of Elder Affairs —Area Agency on Aging for Southwest Florida, Inc. CFDA 93.044, 93.045, 93.053 Aging Cluster Award 14/15#HM203.14 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Only individuals whom have applied for benefits using the proper standardized forms and been properly reviewed, approved and setup in the Client Information and Registration Tracking System (CIRTS)can be provided with meals by the Aging Cluster. Condition One individual was served a total of 5 meals prior to being enrolled in the CIRTS system. Context The auditor selected 40 individuals to test and noted exceptions with one individual who was served 5 meals. Question Costs None Cause Unallowable costs were incurred due to the individual not being properly determined to be eligible. Effect Lack of controls over these expenditures could result in additional unallowable costs being charged to the grant. Recommendation We recommend that the County implement policies and procedures to ensure that all individuals receiving benefits have completed the required applications and have properly been determined to be eligible. 195 13A COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Views of Responsible Officials and Corrective Action Plan While enrollment of one individual into CIRTS did not occur within the required timeframe, all requirements were completed after-the-fact within 12 days of the second meal served. As a result, the individual was determined to be eligible. Meals are provided at no charge to eligible program participants. The value of the five ineligible meals received was approximately $50. Unusual circumstances surrounding the single instance led to the oversight of filing the eligibility documentation timely. This is the only meal site that operates as a senior center and holds additional events which attracts as many as 300 individuals. As such, timely enrollment was impacted and the need to develop additional controls is warranted for this type of meal site. In the future, the following process will be implemented: 1. Only Individuals who are formally assessed and have reserved meals will be served a meal. Assessed individuals will have to reserve their meals the week before on the Reservation Form specifying which days they will be eating. 2. Each meal site will have a Daily Registration Form with all clients that have been assessed for that site. This Daily Registration Form will contain the last assessment date, and will also be used as the sign in sheet for that day. 3. Since the program has limited funding, the meal site coordinator will maintain a written waiting list for those desiring to be program participants. When assessed individuals leave or terminate the congregate meal site, the wait listed individuals will then be assessed. The individual will be added to the Daily Registration Form with the date they were assessed. 4. Daily Registration Forms will be submitted weekly to the nutrition supervisor, who will confirm that the client was enrolled at least by the third meal served to ensure that no billing occurs for an individual that has not been assessed into CIRTS within the required timeframe. 5. Corrective actions will begin on June 6, 2016. Monitoring of the corrective action will take place through the Grants Compliance Office one on one monthly meeting with CHS upper management. Responsible party: Therese Stanley, Grants Compliance Manager 196 1 3 A COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part IV- Findings and Questioned Costs—Major State Projects This section identifies the audit findings required to be reported under Rule 10.554(1)(1)4, Rules of the Auditor General. 2015-006 Allowable Costs Florida Department of Economic Opportunity CSFA 40.012 Local Economic Development Initiatives Award No. #SL007 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Compensation for personnel services rendered in conjunction with State awards must be documented and supported. Condition One instance was noted whereby the personnel activity report was not signed by a supervisor. Context Two months of personnel activity reports were reviewed and there was one exception. Questioned Costs None Cause/Effect The Officials over the subcontractor changed during the time of the grant, and new procedures were not put in place to transition the review of the Executive Director's time sheet. Recommendation When supervisors change during a grant term, control policies and procedures should be updated as necessary. Views of Responsible Officials and Corrective Action Plan This was a singular occurrence during the transition of subcontractor board of director members. Subsequently, a signed timesheet by the Director was found and provided by the subcontractor to the County and forwarded to the external auditor. Collier Economic Development Division staff and team members familiar with the subcontract have provided training to the subcontractor during February 2016 to review support documentation and requirements for timesheets. A checklist template has been developed as assistance. Responsible party: Therese Stanley, Grants Compliance Manager 197 COLLIER COUNTY, FLORIDA I a Summary Schedule of Prior Audit Findings Year Ended September 30, 2015 Prior-Year Findings and Questioned Costs— Finding 2014-001 Federal Program/State Project Information U.S. Department of Transportation CFDA 20.106 Airport Improvement Program Award No. 3-12-0031-010-2012, Award Year—2012 Award No. 3-12-0142-010-2013, Award Year—2013 U.S. Department of Homeland Security CFDA 97.036 Disaster Grants— Public Assistance (Presidentially Declared Disasters) Award No. PA-04-FL-1785-PW-01146, Award Year-2009 Condition Based on our testing of cash drawdowns in fiscal year 2014, there were instances of significant time lag between when the County paid for grant expenditures and the date of the related drawdowns for CFDA 20.106, the Airport Improvement Program, and CFDA 97.036, Disaster Grants- Public Assistance. Auditor Recommendation The County should implement procedures to minimize the time lag between the request for cash drawdown and the time that the disbursements are paid by the County by ensuring the County's Office of Management and Budget (OMB) Department's internal control protocol to target execution to draws within 30-45 days after quarter-end is being followed by all departments. Also, the County should develop policies and procedures to ensure the County immediately request reimbursement for qualifying grant expenditures incurred before the related grant agreement. Current Status: Corrective Action was taken. Finding 2014-002 Federal Program/State Project Information State of Florida, Department of Transportation CSFA 55.010 Public Transit Block Grant Award No. AQQ16, Award Year- 2012 Condition The Vendor/Contractor did not use the E-Verify system for employees hired during the County's 2014 fiscal year. Auditor Recommendation County grant personnel should understand and become familiar with the terms and conditions of their vendor/contractor agreements and develop tools to assist in the effective monitoring of compliance requirements. Current Status: Corrective Action was taken. 198 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2015 Finding 2012-02 Federal Program/State Project Information U.S. Department of Housing and Urban Development CFDA 14.218, ARRA-14.253 CDBG— Entitlement Grants Cluster CFDA 14.228 Community Development Block Grant/State's Program (DRI) U.S. Department of Transportation CFDA 20.205 Highway Planning and Construction (Federal-Aid Highway Program) Florida Department of Transportation CSFA 55.010 Public Transit Block Grant Program Condition Upon selecting 60 cash drawdowns, the auditor noted several instances where there was a significant time lag between when Collier County paid for grant expenditures and when the disbursement was requested for reimbursement. There was a lack of a process to minimize the time between disbursement and reimbursement request. This could adversely affect County cash flows as well as result in the grantor not reimbursing Collier County for reimbursements requested within a reasonable time frame. Auditor Recommendation The County should implement procedures that minimize the time elapsing between the request for a cash drawdown and the time that the disbursements are paid by the County. Fiscal 2013 Status Collier County's Office of Management and Budget (OMB) Department has developed an internal control protocol to target execution of draws within 30-45 days after quarter-end unless the grantor agency contract explicitly states otherwise. Based on our testing of cash drawdowns in fiscal year 2013, it appears improvements had been made since the prior year with regard to timely reimbursement requests. However, for CFDA 20.205, we noted a drawdown that occurred on June 20, 2013 for $253,350. The initial disbursement within the time period pertaining to this drawdown was incurred 155 days prior to this reimbursement request. For CSFA 55.010, there was a 254 day time lag between the earliest invoice posting date and the actual reimbursement date. Fiscal 2014 Status Based on our testing of cash drawdowns in fiscal year 2014, it appears further improvements have been made with regard to timely reimbursement requests for the two programs noted to still have issues in fiscal year 2013, CFDA 20.205 and CSFA 55.010. However, for CSFA 55.010, auditors noted that one of the two drawdown requests tested had a 500 day time lag between the payment earliest invoice and the related drawdown request date. While some improvement was noted, we identified excessive lag times for one sample selection for CSFA 55.010. This finding is considered partially cleared. Current Status: Corrective Action was taken. 199 131 THIS PAGE INTENTIONALLY LEFT BLANK 3 CliftonLarsonAllen LLP CLAconnect corn CliftonLarsonAllen MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida We have audited the financial statements of Collier County, Florida (County) as of and for the fiscal year ended September 30, 2015, and have issued our report thereon dated May 10, 2016. Auditors' 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; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors' Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated May 10, 2016, 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. The status of prior year's findings and recommendations are listed in Appendix A. Official Title and Legal Authority 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. This information has been included in the notes to the basic financial statements. NEXTAAn independent member ofNeAaInternational t^+f ERN A";!ON L 1 3 A Honorable Board of County Commissioners Collier County, Florida Financial Condition Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the County has met one or 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 County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the County's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the County for the fiscal year ended September 30, 2015, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2015. In connection with our audit, we determined that these two reports were in agreement. Special District Component Units Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 2 1 Honorable Board of County Commissioners 3 A Collier County, Florida Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. LZ.' CliftonLarsonAllen LLP Naples, Florida May 10, 2016 3 7 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Appendix A—Status of Prior Year's Findings and Recommendations Year Ended September 30, 2015 Prior Year Findings and Current Year Status Recommendations Cleared Partially Cleared Not Cleared 2012-02 Significant X Deficiency 2014-001 Significant X Deficiency 2014-002 Significant X Deficiency 4 131\ CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida's (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund; and Section 288.8018(1), Florida Statutes, regarding funds related to the Deepwater Horizon oil spill during the year ended September 30, 2015. Management is responsible for the County's compliance with those requirements. Our responsibility is to express an opinion on the County'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 County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the County's compliance with specified requirements. In our opinion, the County complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the County 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. d Vet X -max, .ZZ CliftonLarsonAllen LLP Naples, Florida May 10, 2016 NEXTA An independent rrerrtorofNaiaherndlirnal IN ERNA1 ONA.. THIS PAGE INTENTIONALLY LEFT BLANK 1 3 A Cf ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy the following Tables were prepared for the fiscal year ended September 30, 2015. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios 3 TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30,2015 Bondable revenues,as defined by Collier County Debt Policy: Current Ad Valorem Taxes $ 258,663,300 Governmental Impact Fees 25,430,713 Half Cent Sales Tax 38,572,787 Developmental Fees 26,293,021 State Revenue Sharing 10,084,052 5th Cent Local Option Gas Tax 5,238,931 6th Cent Local Option Gas Tax 6,921,219 Constitutional Gas Tax 4,122,525 Seventh Cent Gas Tax 1,807,291 Ninth Cent Gas Tax 1,456,775 Parks and Recreation Fees 7,538,844 Tourist Development Tax 21,188,190 Court Facilities Fees 891,401 Communications Services Tax 4,855,279 Total bondable revenues $ 413,064,328 Fiscal 2015 governmental debt service requirements: Series 2005 Gas Tax Bonds Principal: $ 1,770,000 Interest: 88,500 Series 2012 Gas Tax Bonds Principal: 6,605,000 Interest: 1,505,150 Series 2014 Gas Tax Bonds Principal: 1,065,000 Interest: 2,103,496 Series 2010 Special Obligation Bonds Principal: 1,850,000 Interest: 2,201,412 Series 2010B Special Obligation Bonds Principal: 1,960,000 Interest: 761,800 Series 2011 Special Obligation Bonds Principal: 5,075,000 Interest: 3,615,381 Series 2013 Special Obligation Bonds Principal: - Interest: 2,846,975 Total fiscal 2015 governmental debt service requirements $ 31,447,714 Governmental debt ratio of fiscal year 2015 debt service requirements to total bondable revenues(13.0%maximum allowed by County policy) 7.6% Notes: Debt service is based upon current amortization tables for the fiscal year indicated. Debt prepayments are not included as debt service requirements. 1 A� 1 3 TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30,2015 Collier County Water and Sewer District: Total Sales Revenue $ 113,219,312 Allowance for Funds Prudently Invested - Miscellaneous Revenue 3,425,362 Total Operating Revenue 116,644,674 Non-Operating Revenue 1,421,473 Gross Revenue 118,066,147 Less:Operation and Maintenance Expense(excluding Depreciation and Amortization) 74,343,637 Net Revenue Available for Debt Service(1) $ 43,722,510 Total Fiscal Year 2015 Debt Service on Bonds(2) $ 9,712,547 Net Revenue Debt Service Coverage on Bonded Debt (100%Required)-(1/2) 450% Other Pledged Funds: System Development Fees(Impact Fees) $ 12,647,736 Special Assessment Proceeds Total Pledged Funds Available for Debt Service(3) $ 56,370,246 Total Fiscal Year 2015 Debt Service on Bonds(4) $ 9,712,547 Total Pledged Funds Debt Service Coverage on Bonded Debt (125%Required)-(3/4) 580% Total Pledged Funds Available for Debt Service After Payment of Bonds(5) $ 46,657,699 Total Fiscal Year 2015 Debt Service on Subordinated Indebtedness(6) $ 11,513,231 Calculated Coverage on Subordinated Indebtedness-(5/6) 405% Total Pledged Funds Available for System Purposes $ 35,144,468 2 1 3 A Summary Debt Statement for Fiscal Year 2015 General Governmental Debt: Collier County's Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this self-imposed maximum. The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County's Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased from 8.1%, as of September 30, 2014, to 7.6% for the fiscal year ended September 30, 2015. The decrease in the debt ratio for FY-2015 is primarily the result of an 8.9% increase in overall bondable revenues. Ad valorem tax collection increased by 6.5% over FY-2014 due to a corresponding increase in taxable values. Impact fee collections related to governmental activities (non-enterprise activity) increased by 32.5%, developmental fee collections increased by 19.8% and tourist development tax receipts increased by 10.7%. Recent debt restructurings coupled with the growth of general governmental revenues has produced several consecutive years of decreases in the general governmental debt ratio. Governmental Debt Ratings Table: Current Ratings (as of 4/12/2016) Fitch Moody's Standard& Poor's Gas Tax Revenue Bonds AA- A2 A Special Obligation Bonds AA Aa2 AA+ A rating of AA is an indication by Fitch Ratings of an investment grade instrument, but one which carries a slightly higher risk than a AAA rated bond. Fitch also uses intermediate +/- modifiers for each AA category. A rating of Aa is an indication by Moody's Investors Service of a high quality investment grade instrument with very low credit risk, but "their susceptibility to long-term risks appears somewhat greater" than a Aaa rated bond. A rating of A is an indication by Moody's of an investment grade instrument with low credit risk but the bond has elements present that suggest a higher susceptibility to impairment over the long term than a Aa investment. Moody's uses intermediate modifiers of 1 (higher)to 3 (lower)within the Aa and A ranges. A rating of AA is an indication by Standard and Poor's of an investment grade instrument issued by a"quality borrower"but with slightly more risk than a AAA grade investment. A rating of A is an indication by Standard and Poor's of an investment grade instrument but one more susceptible to adverse changes in circumstances and economic conditions than AAA or AA instruments. Standard and Poor's also uses intermediate+/-modifiers for each category. 3 1 3 A The County's Special Obligation Revenue Bonds are secured by a covenant to appropriate in the annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient pay debt service on the combined Special Obligation Bonds. The combined gas tax revenues are pledged for the payment of all the Gas Tax Revenue bonds. Fiscal year 2015 gas tax revenues covered the current year debt service payments on all outstanding Gas Tax Revenue bonds at 149%. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio,but coverage requirements related to the District's debt are set by bond covenants. Net revenues, defined as operating revenues plus non-operating revenues less operating expenses, excluding depreciation, must cover bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover bonded debt at 125%. Net revenue coverage on bonded debt was 450% and total pledged funds coverage on bonded debt was 580% for FY-2015, up from 400% and 511%, respectively, for FY-2014. Bonded debt coverages increased primarily due to a 7.9% increase in water and sewer sales revenues. The District's calculated coverage on subordinated debt, all in the form of State Revolving Fund Loans, increased from 353% to 405%, also as a result of the increase in sales revenue over FY-2014. The total pledged funds coverage required by the subordinated loan agreements varies between 115% and 125%, depending upon the individual loan agreement. In September of 2015, the Collier County Water and Sewer District issued the Series 2015 Water and Sewer Refunding Revenue Bond in the amount of $17,687,000 for purposes of advance refunding a portion of the Water and Sewer District's Series 2006 Revenue Bonds. The Series 2015 Bond proceeds, together with other available monies, were placed in escrow. The Series 2015 Water and Sewer Refunding Revenue Bond has a fixed interest rate of 1.8%. The advance refunding achieved a net present value savings of 7.1%on the refunded bonds. Enterprise Debt Ratings Table: Current Ratings (as of 4/12/2016) Fitch Moody's Standard& Poor's* Water and Sewer Revenue Bonds AAA Aal - *-Standard&Poor's does not currently rate County Water and Sewer Revenue Bonds. In December of 2015, Fitch Ratings affirmed the District's Water and Sewer Revenue Bonds at AAA. A rating of AAA is an indication by Fitch Ratings of an investment grade instrument with very little credit risk. In April of 2016, Moody's Investors Service upgraded the District's Water and Sewer Revenue Bonds to Aal from Aa2. A rating of Aa is an indication by Moody's Investors Service of a high 4 1 3 quality investment grade instrument, but "their susceptibility to long-term risks appears somewhat greater" than a Aaa rated bond. Moody's uses intermediate modifiers of 1 (higher) to 3 (lower)within the Aa and A ranges. A rating of Aal is the highest rating within the Aa range. Water, wastewater and irrigation quality water user rates and miscellaneous revenues are used to recover system operating, maintenance and capital costs as well as pay debt service. During September 2014 the District's governing board approved phased rate increases. The District's water and sewer user rates increased by 9.0%, effective 10/01/2014 with subsequent increases of 5.0% effective 10/01/2015 and 10/01/2016. Over recent years the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District's continuing focus is the optimization of resources and a risk based prioritization of capital projects. 5 1 3 A Collier County, Florida Clerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2015 1 3 A Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors' Report 1 Financial Statements Balance Sheet—Governmental Funds 4 Statement of Revenues, Expenditures, and Changes in Fund Balance— Governmental Funds 5 Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual—General Fund 6 Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual—Court Services Fund 7 Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual—Other Special Revenue Fund 8 Statement of Fiduciary Net Position—Agency Fund 9 Notes to Financial Statements 10 Supplementary Information Combining Statements of Fiduciary Net Position—All Agency Funds 27 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 28 Management Letter 30 Independent Accountants' Report 32 1314 CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk's 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. Auditors'Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'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. NEXTA Pin independent nentxrofNezainterraticnal I I N fk.N N Al ION Al. 1 3 Honorable Dwight E. Brock Clerk of the Circuit Court Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Clerk as of September 30, 2015, and the respective changes in financial position and, where applicable, budgetary comparisons thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk's financial statements. The combining statement, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The combining statement is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statement is fairly stated in all material respects in relation to the financial statements as a whole. 2 1 3 A Honorable Dwight E. Brock Clerk of the Circuit Court Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 14, 2016 on our consideration of the Clerk'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 included under the heading Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 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 Clerk's internal control over financial reporting and compliance. d4/247(2,044-&7E41/40.c.//)/- CliftonLarsonAllen LLP Naples, Florida January 14, 2016 3 1 3 A Collier County, Florida Clerk of the Circuit Court Balance Sheet—Governmental Funds September 30, 2015 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents $ 2,108,931 $ 1,422,535 $ 4,948,870 $ 8,480,336 Accounts receivable 114,903 - - 114,903 Due from other governments 8,257 49,312 - 57,569 Total assets $ 2,232,091 $ 1,471,847 $ 4,948,870 $ 8,652,808 Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities $ 555,365 $ 223,259 $ 39,069 $ 817,693 Due to Collier County,Florida Board of County Commissioners 423,128 - - 423,128 Due to Other Constitutional Officers - 379 - 379 Due to other governments - 1,248,209 - 1,248,209 Deposits 1,253,598 - - 1,253,598 Total liabilities 2,232,091 1,471,847 39,069 3,743,007 Fund balance: Restricted - - 4,909,801 4,909,801 Total fund balance - - 4,909,801 4,909,801 Total liabilities and fund balance $ 2,232,091 $ 1,471,847 $ 4,948,870 $ 8,652,808 See accompanying Notes to Financial Statements. 4 A Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2015 Total Court Other Special Governmental General Services Revenue Funds Revenues: Intergovernmental $ - $ 361,895 $ - $ 361,895 Charges for services 3,102,722 6,484,209 1,463,188 11.050,119 Miscellaneous 303 - - 303 Interest income 13,701 10,644 7,650 31,995 Total revenues 3,116,726 6,856,748 1,470.838 11,444,312 Expenditures: General government: Personal services 6,528,467 5,773,044 872,969 13,174,480 Operating 1,809,230 292,286 425,651 2,527,167 Capital outlay 226,710 - - 226,710 Total expenditures 8,564,407 6,065,330 1,298,620 15,928,357 Excess(deficiency)of revenues over(under)expenditures (5,447,681) 791,418 172,218 (4,484,045) Other financing sources(uses): Transfers in: Collier County,Florida Board of County Commissioners appropriations 5.869,500 - - 5,869,500 Transfers out: Distribution of excess fees to State of Florida - (791,418) - (791,418) Distribution of excess appropriations to Collier County,Florida Board of County Commissioners (421,819) - - (421,819) Total other financing sources(uses) 5,447,681 (791,418) - 4,656,263 Net change in fund balance - - 172,218 172,218 Fund balances—beginning of year - - 4,737,583 4,737,583 Fund balances—end of year $ - $ - $ 4,909,801 $ 4,909,801 See accompanying Notes to Financial Statements. 5 1 3 A Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual General Fund Year Ended September 30, 2015 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 2,788,100 $ 3,000,000 $ 3,102,722 $ 102,722 Miscellaneous - - 303 303 Interest income 20,000 20,000 13,701 (6,299) Total revenues 2,808,100 3,020,000 3,116,726 96,726 Expenditures: General government: Personal services 6,987,800 6,754,200 6,528,467 225,733 Operating expenditures 1,346,700 1,908,300 1,809,230 99,070 Capital outlay 343,100 227,000 226,710 290 Total expenditures 8,677,600 8,889,500 8,564,407 325,093 Excess(deficiency)of revenues over(under)expenditures (5,869,500) (5,869,500) (5,447,681) 421,819 Other financing sources(uses): Transfers in: Collier County,Florida Board of County Commissioners appropriations 5,869,500 5,869,500 5,869,500 - Transfers out: Distribution of excess appropriations to Collier County,Florida Board of County Commissioners - - (421,819) (421,819) Total other financing sources(uses) 5,869,500 5,869,500 5,447,681 (421,819) Net change in fund balance - - - - Fund balance—beginning of year - - - - Fund balance—end of year $ - $ - $ - $ - See accompanying Notes to Financial Statements. 6 1 3 Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual Court Services Fund Year Ended September 30, 2015 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 219,000 $ 261,459 $ 361,895 $ 100,436 Charges for services 7,177,100 6,814,553 6,484,209 (330,344) Interest income 8,500 8,500 10,644 2,144 Total revenues 7,404,600 7,084,512 6,856,748 (227,764) Expenditures: General government: Personal services 6,890,400 6,559,112 5,773,044 786,068 Operating expenditures 514.200 525,400 292,286 233,114 Total expenditures 7,404,600 7,084,512 6,065,330 1,019,182 Excess of revenues over expenditures - - 791,418 791,418 Other financing(uses): Transfers out: Distribution of excess fees to State of Florida - - (791,418) 791,418 Total other financing(uses) - - (791,418) 791,418 Net change in fund balance - - - - Fund balance—beginning of year - - - - Fund balance—end of year $ - $ - $ - $ - See accompanying Notes to Financial Statements. Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual Other Special Revenue Fund Year Ended September 30, 2015 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 1,365,000 $ 1,365,000 $ 1,463,188 $ 98,188 Interest income 8,300 8,300 7,650 (650) Total revenues 1,373,300 1.373,300 1,470,838 97,538 Expenditures: General government: Personal services 989,600 989,600 872,969 116,631 Operating expenditures 1,491,500 1,502,300 425,651 1,076,649 Capital outlay 412,600 410,200 - 410,200 Total expenditures 2,893,700 2,902,100 1,298,620 1,603,480 Net change in fund balance (1,520,400) (1,528,800) 172,218 1,701,018 Fund balance—beginning of year 3,141,662 4,315,031 4,737,583 422,552 Fund balance—end of year $ 1,621,262 $ 2,786,231 $ 4,909,801 $2.123.570 See accompanying Notes to Financial Statements. 8 Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Fund September 30, 2015 Assets Cash and cash equivalents $ 26,821,918 Liabilities Due to the Collier County, Florida Board of County Commissioners $ 341,868 Due to other governments 950,949 Deposits 25,529,101 Total liabilities $ 26,821,918 See accompanying Notes to Financial Statements. 9 6 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. The Clerk's Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk's general fund. Court-related operations are funded by the collection of fines, fees costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. The State transitioned the Clerk in July, 2013 to be self-funded from fees and fines. Pursuant to Section 28.37, Florida Statute, any surplus revenues over expenditures will be returned to the State. 10 1 3A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies(continued) Measurement Focus,Basis of Accounting,and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund— The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund— The court services fund is a special revenue fund established to account for court-related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35,Florida Statutes. Other Special Revenue Fund— The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office, and revenues mandated by Section 28.24(12)(e),Florida Statutes,to be used exclusively for funding court-related technology needs. This fund also accounts for revenues and expenditures pursuant to Section 28.37(5), Florida Statutes. 11 1 3 At Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies(continued) The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences,which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are classified as court-related and non-court-related. The Clerk's general fund activity, which is classified as non-court-related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. Court-related operations are funded by the collection of fines, fees costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally,the Clerk reports the following fund type: Fiduciary Funds—Agency Funds—Agency funds are used to account for assets held by the Clerk in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the full accrual basis of accounting. 12 1 3 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies(continued) Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less.The Clerk does not currently hold investments. Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk's funds, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. 13 44 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non-spendable fund balances at the Clerk as of September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Clerk's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk's fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available,the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available,the Clerk considers amounts to have been spent first out of committed funds,then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk's annual budget. The Clerk prepares and approves the budget for the Clerk s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation(Corporation). 14 1 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 2. Budgetary Process(continued) If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a revenue deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ended September 30, 2015, the Clerk had sufficient revenues to meet expenditures. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk's fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 15 1 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 3. Cash and Cash Equivalents At September 30, 2015, the carrying value of the Clerk's cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A $ 7,600 N/A Demand deposits N/A 35,294,654 N/A Total cash and cash equivalents $ 35,302,254 The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each fund type's portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. Cash and cash equivalents as of September 30, 2015 are reported as $8,480,336 and $26,821,918 in the governmental funds and fiduciary funds,respectively. Custodial Credit Risk At September 30, 2015, the Clerk's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. 16 13 .A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 3. Cash and Cash Equivalents (continued) Credit Risk The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter-local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk's funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of$13,701 is reported in the general fund for the year ended September 30, 2015, as the portion of interest earned on Clerk funds. 17 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. 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 value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2014 Additions Deductions Transfer-out 2015 Capital assets depreciated: Machinery and equipment $ 7,410,520 $ 226,710 $ (8,857) $ (54,956) $ 7,573,417 Less accumulated depreciation (4,943,685) (707,497) 8,857 54,956 (5,587,369) Total Capital assets depreciated 2,466,835 (480,787) - - 1,986,048 Total capital assets,net $ 2,466,835 $ (480,787) $ - $ - $ 1,986,048 6. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2014 Additions Deletions 2015 Accrued compensated absences $ 1.947.947 $ 839.443 $ (958.991) $ 1,828,399 Of these liabilities, $895,916 is expected to be paid during the fiscal year ending September 30, 2016. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. 18 I 3 Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site(www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan(FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class—Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class(SMSC)—Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. 19 1 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 7. Pension Plans (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. 20 134 . Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 7. Pension Plans (continued) As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. 21 1 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 7. Pension Plans(continued) FRS Investment Plan The Florida State Board of Administration(SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds)to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 22 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 7. Pension Plans (Continued) Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk's contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $754,155, $738,661, and $562,051 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report. • 8. Related Party Transactions The Board provided funding for the Clerk in the amount of$5,869,500. The Supervisor of Elections provided funding in the amount of a $45,000 fee for financial services performed by the Clerk. At September 30, 2015, the Clerk had a payable due to the Board of$764,996, comprised as follows: Distribution of excess fees $ 421,819 Amounts due for various services 1,309 Agency funds due 341,868 Total due to Board of County Commissioners $ 764,996 The Clerk also had a payable to the Collier County Sheriff at September 30, 2015 of$379 from the Court Services Fund for juror meals. 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2015, the Clerk was charged $2,468,141 by the County for participation in the risk management program. 23 1 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 9. Risk Management(continued) The County retains the first $500,000 per claim for workers' compensation, and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of$200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% named storm deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Other Postemployment Healthcare Benefits (OPEB) Plan The Clerk follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The Clerk participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report; however, additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County. Florida. 24 1 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 10. Other Postemployment Healthcare Benefits(OPEB)Plan (continued) Under Florida Statutes, retirees originally hired prior to July 1, 2011, are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62(65 if hired on or after July 1, 2011)are also eligible to participate in the medical plan. The Clerk provides no subsidy to the retiree, or their dependents, for group health care. Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County's self-insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Clerk had a net OPEB obligation of$38,747 as of September 30, 2015. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a "party in interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2015, the Clerk was involved in approximately 101,368 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in approximately 321 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are approximately 16 actions for foreclosure of property in which the Clerk has been a named defendant. 25 1 3 A Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2015 11. Claims and Contingencies(continued) Litigation (continued) Clerk continues to be involved in a class action involving a Florida Statute related to ownership of interest earned on monies paid into the registry of the court and an inverse condemnation allegation asserting that the Clerk has improperly retained interest accruing on funds in the court's registry. Two other cases with similar claims have been filed in Florida. Both cases found against the plaintiff. The plaintiffs filed motion for the Florida Supreme Court to rule on the cases. The court denied the motion. The plaintiffs have filed to have the U.S. Supreme Court hear the case. All proceedings in our case have been stayed until final resolution with the other cases. The Clerk is involved in a litigation regarding fees for public records requests. The Clerk has entered into new litigation against County Manager and Purchasing Director joined by the BOCC over the purchasing policies/actions in procurement. The Clerk's office expects to prevail in all of the above actions. In the opinion of the Clerk of the Circuit Court and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk of the Circuit Court. 26 Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2015 Jury and Clerk's Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents $ 4,899,492 $ 21,907,264 $ 15,162 $ 26,821,918 Liabilities Due to Collier County,Florida Board of County Commissioners $ 341,868 $ - $ - $ 341,868 Due to other governments 935,787 - 15,162 950,949 Deposits 3,621,837 21,907,264 - 25,529,101 Total liabilities $ 4,899,492 $ 21,907,264 $ 15,162 $ 26,821,918 27 1 3 A 5 CiftonLarsonAilen LLP �,. CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court(Clerk), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements, and have issued our report thereon dated January 14, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk'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 opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the 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. NEXTPnindependent merr cfNetiaklematimal 28 I^'If R'r AT I(1V AI. 13A Honorable Dwight E. Brock Clerk of the Circuit Court Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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. dZe-) 1140( •G�G.. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 29 1 3 A CliftonLarsonAllen LLP CLAconnect.com C lifton Larson Allen MANAGEMENT LETTER Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the fiscal year ended September 30,2015 and have issued our report thereon dated January 14, 2016. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 14, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority 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. See Note 1 in the notes to the financial statements. EXT A An mckcendentrrddrtxativvi therNezalnte30 IN FIRNAf ON AL Honorable Dwight E. Brock Clerk of the Circuit Court Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit,we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 31 1 3 A CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT ACCOUNTANTS' REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court's (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds: Section 61.181, Florida Statutes, regarding alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of court performance standards and budgets, during the year ended September 30, 2015. Management is responsible for the Clerk's compliance with those requirements. Our responsibility is to express an opinion on the Clerk'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 Clerk's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk's compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Clerk 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. CliftonLarsonAllen LLP Naples, Florida January 14, 2016 NxTA Pn independalnuitrrofNezaIrta ionel 32 IN TER N ATIO_V AL 13A Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2015 13A Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors' Report 1 Financial Statements Balance Sheet—General Fund 3 Statement of Revenues, Expenditures, and Changes in Fund Balance—General Fund 4 Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual—General Fund—Budgetary Basis 5 Notes to Financial Statements 6 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 21 Management Letter 23 Independent Accountants' Report 25 13A , .....,0 to , , ' , 4 CliftonLarsonAllen LLP CLAconnect com CliftonLarsonAtlen INDEPENDENT AUDITORS' REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2015, and the related notes to the financial statements,which collectively comprise the Property Appraiser's 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. Auditors'Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 auditors'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 opinion. xIA 444.4.sxmt44 tiar4.ty 1'1 dntr44,6,4.4 1 13A Honorable Abe Skinner Property Appraiser Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2015, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County,Florida as of September 30,2015,and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report on our consideration of the Property Appraiser'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 included under the heading Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result 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 Property Appraiser's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 2 1 3 Collier County, Florida Property Appraiser Balance Sheet— General Fund September 30, 2015 Assets Cash and cash equivalents $ 809,790 Total assets $ 809,790 Liabilities and fund balance Liabilities: Accounts payable and accrued expenses $ 30,945 Due to Collier County, Florida Board of County Commissioners 703,354 Due to other taxing districts 75,491 Total liabilities 809,790 Fund balance - Total liabilities and fund balance $ 809,790 See accompanying Notes to Financial Statements. 3 13A Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2015 Revenues: Commissions and fees $ 6,579,893 Miscellaneous 794,878 Interest 5,620 Total revenues 7,380,391 Expenditures: General government: Personal services 5,026,460 Operating 1,453,804 Capital outlay 121,282 Total expenditures 6,601,546 Excess of revenues over expenditures 778,845 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (703,354) Distribution of excess fees and commissions to other governmental agencies (75,491) Total other financing uses (778,845) Net change in fund balance - Fund balance, beginning of year - Fund balance, end ofyear $ - See accompanying Notes to Financial Statements. 4 13A Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance —Budget and Actual General Fund (Budgetary Basis) Year Ended September 30, 2015 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees $ 6,579,893 $ 6,579,893 $ 6,579,893 $ - Interest Revenue - - 5,620 5,620 Miscellaneous - - 794,878 794,878 Total revenues 6,579,893 6,579,893 7,380,391 800,498 Expenditures: General government: Personal services 5,174,383 5,174,383 5,026,460 147,923 Operating 1,380,510 1,380,510 1,453,804 (73,294) Capital outlay 25,000 25,000 121,282 (96,282) Total expenditures 6,579,893 6,579,893 6,601,546 (21,653) Excess of revenues over expenditures - - 778,845 778,845 Other financing uses: Distribution of excess fees to Collier County,Florida Board of County Commissioners - - (703,354) (703,354) Distribution of excess commissions and fees to other governmental agencies - - (75,491) (75,491) Total other financing uses - - (778,845) (778,845) Net change in fund balance - - - - Fund balance,beginning of year - - - - Fund balance,end of year $ - $ - $ - $ - See accompanying Notes to Financial Statements. 5 •01.7,,ti gpPf. _. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser(Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser's total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser's office. The Property Appraiser's financial statements include only the funds of the Property Appraiser's office. There are no separate legal entities (component units) for which the Property Appraiser is considered to be financially accountable. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. Measurement Focus,Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 6 1 3 A Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases(i.e.,revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser's only governmental fund is the general fund.The general fund is used to account for the general operations of the Property Appraiser and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt;earlier if the"susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. 7 r .I Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies (continued) Refund of"Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use-transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100%of allowable accumulated vacation hours and a percentage of unused sick leave,depending on years of service,not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. 8 �H11 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies(continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's annual budget.The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser's total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs from generally accepted accounting principles (GAAP). Certain revenues received from non ad valorem commissions and other sources are not recognized under the budgetary basis of accounting; however, the revenues have been recognized under GAAP. 9 13A Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 2. Budgetary Process (continued) The actual results of operations in the statement of revenues and expenditures,and changes in fund balance — budget to actual — general fund are presented on a budgetary basis. Adjustments to convert the results of operations for the year ended September 30, 2015, from the budgetary basis of accounting to the GAAP basis of accounting are as follows: Miscellaneous Revenues Budgetary Basis $ - Revenues not budgeted: Miscellaneous 794,878 Interest 5,620 GAAP Basis $ 800,498 During the year,the Property Appraiser exceeded the budgeted amount for operating expenditures and capital outlay mainly as a result of other contractual services, vehicles and computer equipment related expenditures which were not expected at the time of the budget preparation. These budget overages were partially offset by budget savings in the personnel services category. 3. Cash At September 30, 2015, the carrying value of the Property Appraiser's cash was as follows: Carrying Type Value Cash on hand $ 125 Demand deposits 809,665 Total cash $ 809,790 10 1 3 A Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 3. Cash (continued) Custodial Credit Risk At September 30, 2015, the Property Appraiser's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415,Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 11 a Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida. 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 value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2015: October 1, September 30, 2014 Additions Deductions 2015 Improvements other than buildings $ 15,332 $ - $ - $ 15,332 Machinery and equipment 1,560,828 121,282 - 1,682,110 Total capital assets 1,576,160 121,282 - 1,697,442 Less accumulated depreciation (1,270,868) (97,195) - (1,368,063) Total capital assets, net $ 305,292 $ 24,087 $ - $ 329,379 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2014 Increase Decrease 2015 Accrued compensated absences $ 299,899 $ 317,098 $ 286,715 $ 330,282 12 1 3 A Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2015, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program,a cost-sharing multiple-employer defined benefit pension plan,to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 13 13A 3 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSC) — Members in senior management level positions. • Special Risk Class— Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service,except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. 14 1 3 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service,average final compensation,and service credit.Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1,2011,the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service,which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. 15 I 3 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 6. Pension Plans(continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time.The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage,which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan(Investment Plan).The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. 16 1 3 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 6. Pension Plans(continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class(Regular Class, Elected County Officers,etc.),as the FRS defined benefit plan.Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program,are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution,leave the funds invested for future distribution,or any combination of these options. Disability coverage is provided;the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 17 1 3A Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 6. Pension Plans (continued) Contributions The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser's employer contributions to the plan for the years ended September 30,2015,2014 and 2013,were$377,140, $315,882,and$203,538,respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Property Appraiser follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description The Property Appraiser participates in a group health care plan that covers eligible retirees, and their dependents,of the Board and all Constitutional Officers with the exception of the Sheriff.The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report, however additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida(the County). Under Florida Statutes, retirees originally hired prior to July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service.Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1,2011)are also eligible to participate in the medical plan. In addition,the Property Appraiser provides no subsidy to the retiree, or their dependents, for group health care. 18 13y Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 7. Other Postemployment Healthcare Benefits (OPEB)Plan (continued) Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County's self insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care.The Property Appraiser had a net OPEB obligation of$28,262 as of September 30, 2015. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer(ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2013. The notes to the financial statements of the County disclose additional information regarding the other post employment benefit plan as a whole. 8. Related-Party Transactions During the fiscal year ended September 30, 2015, the Board paid fees to the Property Appraiser that amounted to$5,917,161. At September 30,2015,the Property Appraiser had a payable due to the Board of$703,354, respectively, comprised as follows: Distribution of excess commissions and fees $ 703,354 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund.All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County's self-insurance program. During the year ended September 30, 2015, the Property Appraiser was charged $940,547 by the County for participation in the risk management program. 19 1 3 A Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2015 9.Risk Management (continued) The County retains the first $500,000 per claim for workers' compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of$200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5%wind deductible and a $50,000 deductible for all other perils. The County retains the first$100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to$5 million per claim.There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first$325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. 20 3 A t:4 CliftonLarsonAllen LLP CLAconnectcom CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Property Appraiser's financial statements, and have issued our report thereon dated January 8, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser'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 Property Appraiser's internal control. Accordingly,we do not express an opinion on the effectiveness of the Property Appraiser's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control,such that there is a reasonable possibility that a material misstatement of the 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. .._..........::.. I EXIA AP-d,,I:,..,,.x A 1 art. 21 1 3 A Honorable Abe Skinner Property Appraiser Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly,we do not express such an opinion.The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2015-001—Budget Criteria Florida Statutes 195.087(1)(a)requires the Property Appraiser to submit a budget for operation of the Property Appraiser's office for the fiscal year to the Florida Department of Revenue (DOR) for review and approval. Total expenditures should not exceed the total appropriations as approved by DOR. Condition The Property Appraiser's total expenditures exceeded its final approved total appropriations. Cause A budget amendment was not submitted prior to the expenditure of additional amounts for capital outlay. Effect The Property Appraiser expended $21,653 in excess of final approved appropriations. Recommendation We recommend that management and the Property Appraiser periodically review budget to actual reports to determine if the Property Appraiser is adhering to its adopted budget. If circumstances arise that will cause the Property Appraiser to incur total expenditures in excess of approved total appropriations, the Property Appraiser should first submit a budget amendment to the DOR. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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. Ne-/-47(./.4A4-0-7Clia0<_ CliftonLarsonAllen LLP Naples, Florida January 8, 2016 22 3 CliftonLarsonAllen LLP CLAconnect corn CliftonLarsonAllen MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser)as of and for the year ended September 30, 2015,and have issued our report thereon dated January 8, 2016. Auditors' Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in those reports which are dated January 8, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority 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. See Note 1 in the notes to financial statements. NEXIAfilt,lep,rneut- of tv,:a frte,.axd 23 i9TLIt.\it,,al. 1 3 Honorable Abe Skinner Property Appraiser Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements,or abuse,that have occurred,or are likely to have occurred,that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit,we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives,the Florida Auditor General, Federal and other granting agencies,and the Property Appraiser and applicable management,and is not intended to be and should not be used by anyone other than these specified parties. e4-)I4 3 e/4 " G CliftonLarsonAllen LLP Naples, Florida January 8,2016 24 1 3 A CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT ACCOUNTANTS' REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County, Florida Property Appraiser's (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Property Appraiser's compliance with those requirements. Our responsibility is to express an opinion on the Property Appraiser'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 Property Appraiser's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser's compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Property Appraiser 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. elf/4*/4 //. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 NEXIAAri,d4lerKEKirf,h Wt.Ir,:,.k,c,d 25 1 3 A Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2015 13A Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors' Report 1 Financial Statements Balance Sheet—Governmental Funds 4 Statement of Revenues, Expenditures, and Changes in Fund Balances— Governmental Funds 5 Statement of Revenues, Expenditures, and Changes in Fund Balances— Budget(Non-GAAP) and Actual—General Fund 6 Statement of Net Position—Internal Service Fund 7 Statement of Revenues, Expenses, and Changes in Net Position— Internal Service Fund 8 Statement of Cash Flows—Internal Service Fund 9 Statement of Fiduciary Net Position—Agency Funds 10 Notes to Financial Statements 11 Required Supplementary Information Schedule of Funding Progress for the Retiree Health Plan 34 Combining Financial Information Combining Statement of Fiduciary Net Position—Agency Funds 35 Combining Statement of Changes in Assets and Liabilities—Agency Funds 36 13A Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2015 Contents (continued) Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 37 Management Letter 39 Independent Accountants' Report 41 Independent Accountants' Report on Applying Agreed-Upon Procedures 42 1 3 A CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff(Sheriff), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff's 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. Auditors'Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'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. 1 EX A An mckcerxknt nr,ba of Nomalntetrotiond 1 1^1 T 8A N ATIO.NAI. 1 3 A41 Honorable Kevin Rambosk Sheriff Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Sheriff • as of September 30, 2015, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Funding Progress for the Retiree Health Plan, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. 2 131 Honorable Kevin Rambosk Sheriff Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff's financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated in all material respects in relation to the 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 January 12, 2016 on our consideration of the Sheriff'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 included under the heading Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 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 Sheriff's internal control over financial reporting and compliance. d/1/447(24'6441-6`11/Aec- CliftonLarsonAllen LLP Naples, Florida January 12, 2016 3 1 3 A N �D N 00 O Cr, N O 00 01 N O 01 N COO N M O N ONO N v7 ,--- t- CO 00 N - 01 M ,— ,. 00 oo v) oo oo M O Cl,76 .' O Cr. ,* V� — 0O N N [ O N c'... coF � 69 bs 69 69 I.0 a> I I I I dM, I I I I . I rn ^ 0 44 N NC 00 N N01 06 NC'� C' 01 O 0 z 2 L .-ao IS Q+ 0 cA 69 FA 69 69 3 '—' I I I I I - I I .7rN ^ 1 v1 D, ,O N N R vtel i co p `., l— r- -- GE L CO 00 OO OO CQ R = mss. C/] cA go 'CS LT., 6A 64). 4A 69 No I g l I o I I I o rn o .� M O M vl N Vl M .cs a L too vii N nO vOi .r CI (1..) h y r r. w N ° 3 r...4 4. 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U 5 O o C7 a •o a F- E— c g 0 ca; F- w E- w0 " ZII. w 1 3 Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances—Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2015 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ — $ 1,379,000 $ 1,375,714 $ (3,286) Expenditures: General government: Personal services 2,959,600 2,959,600 3,634,660 (675,060) Operating expenditures 131,700 131,700 78,912 52,788 Capital outlay — — — Public safety: Personal services 114,498,800 115,832,800 113,929,185 1,903,615 Operating expenditures 22,466,100 22,511,100 20,567,896 1,943,204 Capital outlay 2,036,300 2,036,300 5,229,319 (3,193,019) Total expenditures 142,092,500 143,471,500 143,439,972 31,528 Excess of expenditures over revenues (142,092,500) (142,092,500) (142,064,258) 28,242 Other financing sources(uses): Transfers in: Collier County,Florida Board of County Commissioners appropriations 142,092,500 142,092,500 142,092,500 — Transfers out: Distribution of excess appropriations to Collier County,Florida Board of County Commissioners — — (28,242) (28,242) Total other financing sources 142,092,500 142,092,500 142,064,258 (28,242) Net change in fund balance — — — — Fund balance—beginning of year — — — — Fund balance—end of year $ — $ — $ — $ — See accompanying Notes to Financial Statements. 6 Collier County, Florida 13 A Sheriff Statement of Net Position—Internal Service Fund September 30, 2015 Assets Cash and cash equivalents $ 1,936,139 Investments 7,965,861 Due from other funds 183,556 Other receivable 45,012 Total assets 10,130,568 Liabilities: Self insurance claims payable 2,170,000 Net other postemployment benefit obligation 2,168,099 Total liabilities 4,338,099 Net position: Unrestricted 5,792,469 Total net position $ 5,792,469 See accompanying Notes to Financial Statements. 7 13A Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position— Internal Service Fund Year Ended September 30, 2015 Operating revenues: Charges for services $ 19,777,998 Operating expenses: Claims and claims expenses 19,415,269 Reinsurance premiums 884,997 Net other postemployment benefit expense 486,861 Administrative and other expenses 372,398 Total operating expenses 21,159,525 Operating income (loss) (1,381,527) Nonoperating revenues: Interest income 41,400 Decrease in fair value of investments (26,970) Total nonoperating revenues 14,430 Change in net position (1,367,097) Net position—beginning of year 7,159,566 Net position—end of year $ 5,792,469 See accompanying Notes to Financial Statements. 8 1 3 A Collier County, Florida Sheriff Statement of Cash Flows —Internal Service Fund Year Ended September 30, 2015 Operating activities Cash payments for claims and claims related services $ (19,217,870) Cash payments for reinsurance premiums (884,997) Cash payments for administrative services and supplies (372,398) Cash received from other funds for services 18,750,000 Cash received from retirees for services 799,430 Net cash used by operating activities (925,835) Noncapital and Related Financing Activities Amounts repaid to other funds (407,422) Net cash used by noncapital and related financing activities (407,422) Investing activities Investment income 41,400 Sales of securities (49,444) Net cash provided by investing activities (8,044) Net decrease in cash,cash equivalents,and investments (1,341,301) Cash,cash equivalents,and investments—beginning of year 3,277,440 Cash,cash equivalents,and investments—end of year $ 1,936,139 Reconciliation of operating loss to net cash used by operating activities Operating loss $ (1,381,527) Adjustments to reconcile operating loss to net cash used by operating activities: Increase in receivables 60,387 Increase in due to/from other funds (183,556) Increase in net other postemployment benefit obligation 486,861 Decrease in self-insurance claims payable 92,000 Net cash provided by operating activities $ (925,835) See accompanying Notes to Financial Statements. 9 1 3 Collier County, Florida Sheriff Statement of Fiduciary Net Position— Agency Funds September 30, 2015 Assets Cash and cash equivalents $ 566,302 Due from individuals and businesses 14,388 Total assets $ 580,690 Liabilitie s Due to other funds $ 36,232 Due to Collier County,Florida Board of County Commissioners 28,991 Due to individuals and businesses 515,467 Total liabilities $ 580,690 See accompanying Notes to Financial Statements. 10 y Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff(Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff's budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County's corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund(internal service fund), and agency funds of the Sheriff's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2),Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities(component units) for which the Sheriff is financially accountable. Chapter 10.550 Rules of the Auditor General - Local Governmental Entity Audits requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including a management's discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2015 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements— and Management's Discussion and Analysis—for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive Annual Financial Report. 11 3 A 44 11 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies(continued) Measurement Focus,Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases(i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff's funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the "susceptible to accrual"criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. 12 3 m Collier County, Florida 1 Sheriff Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has three major governmental funds: General Fund—The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund—This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. Prisoner Welfare Fund— This fund is used to account for the proceeds of inmate related services and is legally restricted to specified purposes, which benefit the inmate population. Federal Equitable Sharing Fund— The revenue from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. The Sheriff also has the following non-major funds: Reported as Other Non-major Special Revenue Funds Confiscated Trust Fund— This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. 13 Collier County, Florida 1 3 A Sheriff Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies(continued) Governmental Funds (continued) Civil Citation—This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund— This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911— This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training— Criminal Justice Education and Training — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Fiduciary Funds—Agency Funds—These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Proprietary Fund Internal Service Fund—This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost-reimbursement basis. Proprietary funds are accounted for 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. 14 13 /1 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash equivalents also include amounts deposited in Florida PRIME administered by the State Board of Administration, a 2a-7 like investment pool. Shares of the investment pool are based on the pool's share price, which approximates fair value. All investments are stated at fair value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 1,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non-spendable fund balances as of September 30, 2015. 15 31 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies(continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Sheriff's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Sheriffs fund balances for the grant special revenue fund, prisoner welfare fund and federal equitable sharing fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund, Prisoner Welfare Fund and the Federal Equitable Sharing Fund are constrained for specific purposes that are externally imposed by grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriffs annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from capital leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare and federal equitable sharing funds do not have legally adopted budgets. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 16 1 3 A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 2. Budgetary Process (continued) The differences between the budgetary basis and the GAAP basis for the General Fund budget as discuss above are as follows: Total expenditures-budgetary basis $ 143,439,972 Expenditures not budgeted: Vehicles and equipment purchased with proceeds from capital lease obligation 1,914,480 Expenditures for multi-period projects that are not budgeted 1,350,335 Total expenditure-GAAP basis $ 146,704,787 Total other financing sources(uses)-budgetary basis $ 142,064,258 Other financing sources not budgeted: Proceeds from capital lease obligations 1,914,480 Transfers in from Collier County Florida Board of County Commissioners(non-appropriations) 1,350,335 $ 145,329,073 17 1 3 A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 3. Cash,Cash Equivalents and Investments At September 30, 2015, the carrying value of the Sheriff's cash, cash equivalents and investments was as follows: Average Carrying Credit Type Maturity Value Rating Cash on hand N/A $ 21,107 N/A Demand deposits N/A 12,023,834 N/A Local government surplus funds trust fund: Florida Prime N/A 742,264 AAAm Total cash and cash equivalents 12,787,205 Money Market N/A 237,265 Not rated Treasury Note 11/15/2015 500,125 AAA Federal National Mortgage Association 10/26/2015 750,750 AAA Federal Home Loan Bank 12/11/2015 501,655 AAA Federal Home Loan Mortgage Corp. Note 1/21/2016 1,699,320 AAA Federal Home Loan Bank 2/19/2016 850,196 AAA Federal Home Loan Mortgage Corp. 3/15/2016 1,004,130 AAA Federal Home Loan Mortgage Corp. 5/13/2016 700,749 AAA Federal National Mortgage Association 7/5/2016 1,000,020 AAA Federal Home Loan Bank 9/9/2016 721,651 AAA Total Investments 7,965,861 Total cash,cash equivalents and investments $ 20,753,066 The total cash,cash equivalent and investments balances at September 30,2015, were as follows: General fund $ 7,654,030 Grant special revenue fund 189,921 Prisoner welfare fund 1,569,302 Federal equitable sharing fund 871,511 Internal service fund 9,902,000 Agency funds 566,302 $ 20,753,066 18 1 3 so, w Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 3. Cash, Cash Equivalents and Investments (continued) Custodial Credit Risk At September 30, 2015, the Sheriff's demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Multiple Employers Trust (FSMET) and are administered by Hunt Insurance Group. FMSET's policy required execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff's name. Credit Risk The Sheriff's policy is to follow the guidance in Sections 218.415 and 219.075,Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff's Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the US Treasury. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the state treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2015, the Sheriff had $742,264 invested in Florida Prime. Florida Prime is rated"AAAm" by Standard& Poor's Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. 19 3 g Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 3. Cash,Cash Equivalents and Investments (continued) Concentration of Credit Risk The Sheriff's investments are included in the internal service fund which is used to account for the Sheriff's self-insured health plan. The Florida Sheriff's Multiple Employer Trust administers the investments for the Sheriff's self-insured health plan and has an investment policy that allows for the investment of funds that exceed one month's required funding by more than $100,000. Investments can be made in government securities. The Sheriff's portfolio managed by the self- insurance trust includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits which are not managed by the self-insurance trust, which are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff's portfolio invested in FSMET is detailed as follows, at September 30, 2015: % of Portfolio Money Market 3% Treasury Note 6% Federal National Mortgage Association 22% Federal Home Loan Bank 26% Federal Home Loan Mortgage Corp. Note 21% Federal Home Loan Mortgage Corp. 22% Total 100% 20 1 3 A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. 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 value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2014 Additions Reclassifications 2015 Governmental Activities Capital assets not depreciated: Construction in Progress $ 691,071 $ 1,370,437 $ (691,071) $ 1,370,437 Total capital assets not depreciated 691,071 1,370,437 (691,071) 1,370,437 Capital assets depreciated : Machinery and equipment 67,251,490 8,613,461 (4,935,373) 70,929,578 Total capital assets depreciated 67,251,490 8,613,461 (4,935,373) 70,929,578 Less accumulated depreciation: Machinery and equipment (58,180,645) (5,630,445) 4,916,296 (58,894,794) Total Accumulated depreciation (58,180,645) (5,630,445) 4,916,296 (58,894,794) Total Depreciable capital assets,net 9,070,845 2,983,016 (19,077) 12,034,784 Total Governmental Activities capital assets,net $ 9,761,916 $ 4,353,453 $ (710,148) $ 13,405,221 21 1 3A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 5. Long-Term Liabilities The Sheriff has entered into certain capital lease agreements under which the related equipment will become the property of the Sheriff's Office when all terms of the lease agreements are met. Stated Present Value of Remaining Interest Payments as of Rate September 30,2015 Governmental fund activities: Vehicles and related equipment 4.50% $ 1,068,029 Telephone system 4.82% 276,128 Total Capital Lease Obligations $ 1,344,157 Equipment and related accumulated amortization under capital leases are as follows: Governmental Activities Equipment $ 1,914,480 Less:accumulated amortization - Net Value $ 1,914,478 As of September 30,2015,the future minimum lease payments under capital lease for each of the next five years and in the aggregate are: Year ending September 30: Governmental Activities 2016 $ 633,509 2017 633,509 2018 63,185 2019 63,185 2020 57,920 Total minimum lease payments 1,451,308 Less:amount representing interest (107,151) Present value of remaining payments $ 1,344,157 22 yt 3 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 5. Long-Term Liabilities (continued) The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2014 Additions Reclassifications 2015 Capital lease agreements $ - $ 1,914,480 $ (570,323) $ 1,344,157 Compensated Absences 14,483,453 1,431,788 (3,471,779) 12,443,462 Total $ 14,483,453 $ 3,346,268 $ (4,042,102) $ 13,787,619 Of these liabilities, approximately $1,160,000 is expected to be paid during the fiscal year ending September 30, 2015. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2015, were as follows: Due From Due To General fund $ 456,995 $ 183,556 Inmate Trust - 36,232 Prisoner welfare fund 25,000 440,146 Federal equitable sharing - 5,617 Internal service fund 183,556 - $ 665,551 $ 665,551 Interfund receivables and payables generally represent recurring activities between funds. 7. Related-Party Transactions The Board provided funding for the Sheriff for the year of $146,851,779. At September 30, 2015, the Sheriff had a payable due to the Board of$62,993 comprised of the following: General fund: Distribution of excess appropriations $ 28,242 Distribution of interest collected 5,559 Miscellaneous payables 201 Agency funds 28,991 Total $ 62,993 23 1 3 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 7.Related-Party Transactions(continued) Additionally, the Sheriff had a receivable from the Board related to services provided to the County of$2,088,466 at September 30, 2015. Agency Funds The Sheriff's Office administers funds for the Collier County Sheriff's Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 24 1 3 A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 8. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSC)—Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 25 1 3 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 8. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in- line-of-duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 26 13A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of$5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of$150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. 27 Collier County, Florida 1 3 Sheriff Notes to Financial Statements September 30, 2015 8. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriffs contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $13,341,786, $12,767,042, and $10,162,432 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report. 28 1 3A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). Plan Description The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for of retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriffs health insurance plan at the same group rate as for active employees. At September 30, 2015, the date of the latest actuarial valuation, the Sheriffs plan participation consisted of: OPEB plan participants 1,138 Retirees receiving benefits 104 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay as you go basis. For the year ended September 30, 2015, the Sheriff contributed $742,376 to the OPEB Plan. The annual other postemployment benefit cost for the plan is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed as of October 1, 2015. 29 1 3 A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 9. Other Postemployment Benefits (continued) Annual OPEB Cost and Net OPEB Obligation The annual cost (expense) of the Sheriff's OPEB Plan is calculated based on the ARC. The following table shows the components of the Sheriff's annual OPEB Plan cost for the year ended September 30, 2015, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution $ 1,262,077 Interest on net OPEB obligation 50,437 Adjustment to annual required contribution (83,277) Annual OPEB cost(expense) 1,229,237 Contributions made (742,376) Increase in net OPEB obligation(asset) 486,861 Net OPEB obligation—beginning of year 1,681,238 Net OPEB obligation(asset)—end year $ 2,168,099 No trust or agency fund has been established for the plan. The Sheriff's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended September 30, 2015 and the preceding years were as follows: Percentage of Annual Annual OPEB Net OPEB Fiscal Year Ended OPEB Cost Cost Contributed Obligation September 30,2015 $ 1,229,237 60% $ 2,168,099 September 30,2014 $ 1,112,653 70% $ 1,681,238 September 30,2013 $ 1,131,221 73% $ 1,344,917 Funded Status and Funding Progress As of the September 30, 2015 actuarial valuation date, the OPEB Plan was 0% funded, the actuarial accrued liability for benefits was $15,133,114, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of$15,133,114. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was approximately $117.6 million, and the ratio of the UAAL to the covered payroll was 12.9%. 30 13A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 9. Other Post Employment Benefits (continued) Funded Status and Funding Progress (continued) The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits. Actuarial Methods and Assumptions 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 the healthcare cost trend. Amounts determined regarding the funded status of the 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. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, 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. The actuarial methods are: Actuarial cost method Projected Unit Credit Method Amortization method Closed Amortization period 30 years, Level Dollar Amount The actuarial assumptions are: Investment rate of return 3% Discount rate 3% Healthcare cost trend rate 8%for the 2016 fiscal year grading to an ultimate rate of 5% for the 2022 fiscal year 31 1 3 A Collier County, Florida Sheriff Notes to Financial Statements September 30, 2015 10. Self-Insurance Program The Sheriffs Office participates in the Statewide Florida Sheriffs Self-Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers' compensation coverage. The Florida Sheriffs Workers' Compensation Self Insurance Program is a self-insurance program providing coverage for the first$500,000 ($350,000 for policy years 2002/2003 —2006/2007) of every claim. Reinsurance is purchased by the Program to cover claims exceeding $500,000 (or $350,000 where applicable) up to $10,000,000. Reinsurance coverage up to $20,000,000 any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third-party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self-funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY 15 there was one covered member who had a deductible amount of $450,000 because of a history of high claims. Specific claim excess coverage for this individual was for claims exceeding $450,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriffs Office uses a Third Party Administrator(TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. 32 Collier Con 1 3 Au ty, Florida Sheriff Notes to Financial Statements September 30, 2015 10. Self-Insurance Program (continued) Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2015 and 2014 is as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2014 $ 3,600,000 $ 17,354,000 $(18,876,000) $2,078,000 2015 $ 2,078,000 $ 15,167,000 $(19,415,000) $2,170,000 11. Claims and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. 33 3 Collier County, Florida Sheriff Schedule of Funding Progress for the Retiree Health Plan September 30, 2015 Actuarial Accrued UAAL as a Actuarial Actuarial Liability(AAL)— Percentage of Valuation Value of Projected Unfunded Funded Covered Covered Date Assets Unit Credit AAL Ratio Payroll Payroll 10/1/2013 $ — $ 13,141,022 $13,141,022 0.0% $ 107,204,015 12.2% 10/1/2014 $ — $ 14,207,209 $14,207,209 0.0% $ 112,902,749 12.6% 10/1/2015 $ — $ 15,133,114 $15,133,114 0.0% $ 117,563,839 12.9% 34 13A r c,„ @,.. m., A 9 Q G 2 7 2 a - 00 k k & 00 § m m w _ _ EA _ 4 / N N 7 £ 3 z c o2 EA _ m m _ 4-1 9 00 2 N G 7 E a , ( r < 9 C N C \ § '4 S / N $ 2 $ 7 •< 2 I _ _ _ _ / N m M m 7Q ?® f« . a\ § J ± f ± k Mm mm2 4-4 \ 49 643 EA EA EA \ / JD NN NE w a \ / \ \ \ 4 ( _ m 69 EA k / & $ 2 $ $ Q 9 r > an, / •: \ % % % % t U k g '= m EA m m -0 2 E ) _ 0 ) 0 \ 9 z .§ - / ( / 73 .2 3 g .) . / k / U / $ « .a © U « / / $ / k / / _ _ § 5 U ) .g % / Q / 2 2 U R © u ® I u u $ U / / Q 0 0 1 3 m n k .0.0 k q k k k / 0 2 m 2 0 ƒ $ .•..., ` ~ f , ev $ m m 99 99 00 N o o m m ƒ « c m 2 k cn N / r N en en N e cn- v / 99 m 69E.9 7 00 k r c - k § d p •2 & $ q & 2 • 1......., N m « \ rr ct ''0 m 99 9999 CC - q 2 CP, 2 3 2 E CZ: m o oo 0%, - o t a) 'T ? g % p N 2 g ? ? 0 m m '. / el 0 • . ) 99E•9 m 69 cn 7:3§ _ o « � >" 0 Z4-+ E Q CI VD � L. '•g .§ \ VI / .§ § / -,.t / k . .k - ? ' 7 7 ct / "0 ° § 2 § U o § U 2 @ .> s- • § � •- ' , / / \ \ / / 0 / / _ U _ 2 o k i / u w u g cfl / \ \ / \ 0 \ \ 1 3 ChftonLarsonAllen LLP CLAconneet.com Clifton Larson Allen INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County,Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff(Sheriff), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements, and have issued our report thereon dated January 12, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriffs internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriffs internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriff's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the 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. NEXTAAnirxiependm[ratter of Nana International 37 IN{ERNAI.,,NAL Honorable Kevin Rambosk „ , ,4 Sheriff Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriffs financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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. d-4/24,<Zet,c-alt7r-1-Zo->t_ZZ) CliftonLarsonAllen LLP Naples, Florida January 12, 2016 38 1 3 A CliftonLarsonAllen LLP CLAconnect.com Clifton Larson Allen MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff(Sheriff), as of and for the fiscal year ended September 30,2015 and have issued our report thereon dated January 12, 2016. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Schedule of Findings and Responses; and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated January 12, 2016, 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. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(I)(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. See Note 1 in the notes to the financial statements. NExTAAn independent natter of Neta Intematian.1 39 A'I1'1N AL 1 3 Honorable Kevin Rambosk Sheriff Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. /4u ,�6 'cd,� LL`s CliftonLarsonAllen LLP Naples, Florida January 12, 2016 40 13A CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT ACCOUNTANTS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff's (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Sheriffs compliance with those requirements. Our responsibility is to express an opinion on the Sheriffs 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 Sheriff's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriff's compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Sheriff 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. CliftonLarsonAllen LLP Naples, Florida January 12, 2016 NEXIAFn ini xleM ie i.a d Neia lrieratiorA 41 L."l IL3N AT ION AL 3 ACliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below, which were agreed to by management of the Collier County, Florida Sheriff(Sheriff), solely to assist you in evaluating the procedures and policies as defined by the Sheriff over its investigative funds for the year ended September 30, 2015. The Sheriff's management is responsible for the Sheriff's compliance with those procedures and policies. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the party specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are summarized as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2015 (the population sampled from included transactions from October 1, 2014 through September 30, 2015), and performed the following procedures with respect to the Sheriff's policies and procedures over investigative funds: 1. We obtained the "Disbursement for Investigation" form and observed that the form was properly completed and authorized by appropriate personnel. 2. We obtained the "Purchase of Evidence/Information Voucher" and observed that the form was properly completed to reflect the expenses incurred within the investigation procedures, that the investigative expenditures were properly supported, and that the use of funds was for authorized purposes.No exceptions were noted. 3. We observed that the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed that the amount deposited agreed to the amount returned per the "Receipt for Funds Received" form detail. I`I EX I!-1 Mindependent II e x d NPaaa lyderratimal 42 IN TLR N AT II)NAL I 3 , Honorable Kevin Rambosk Sheriff We were not engaged to, and did not, conduct an audit or examination, the objective of which would be the expression of an opinion on compliance. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the management of the Sheriff and is not intended to be, and should not be, used by anyone other than this specified party. d- - //9' CliftonLarsonAllen LLP Naples, Florida January 12, 2016 43 13A Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2015 13A Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2015 Contents Independent Auditors' Report 1 Financial Statements Balance Sheet—Governmental Funds 3 Statement of Revenues, Expenditures, and Changes in Fund Balances— Governmental Funds 4 Statement of Revenues, Expenditures,and Changes in Fund Balances-Budget and Actual—General Fund 5 Notes to Financial Statements 6 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance With Government Auditing Standards 22 Management Letter 24 Independent Accountants' Report 26 13A , A CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the entity's 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. Auditors'Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'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. NEx A fs,,xl4,:reirt roxitxx N,a ,te xtixre 1 IS`LHiJ rlTlf��.{1. Honorable Jennifer J. EdwardsI 3 A Supervisor of Elections Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2015, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2016 on our consideration of the Supervisor'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 included under the heading Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 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 Supervisors' internal control over financial reporting and compliance. d-4/47G/a-f-d-t .ZZ>1 CliftonLarsonAllen LLP Naples,Florida January 26,2016 2 13s Collier County, Florida Supervisor of Elections Balance Sheet— Governmental Funds September 30, 2015 Grant General Special Total Fund Revenue 2015 Assets Cash and cash equivalents $ 237,671 $ 1,000 $ 238,671 Accounts receivable 87 - 87 Total assets $ 237,758 $ 1,000 $ 238,758 Liabilities and fund balance Liabilities: Accounts payable $ 14,548 $ - $ 14,548 Accrued liabilities 74,379 - 74,379 Due to Other Governments 2,446 - 2,446 Due to Collier County, Florida Board of County Commissioners 146,385 - 146,385 Total liabilities 237,758 - 237,758 Fund balances: Restricted - 1,000 1,000 Total fund balances - 1,000 1,000 Total liabilities and fund balance $ 237,758 $ 1,000 $ 238,758 See accompanying Notes to Financial Statements 3 1311 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds Year Ended September 30, 2015 Grant General Special Total Fund Revenue 2015 Revenues: Intergovernmental $ - $ 54,004 $ 54,004 Interest - 29 29 Total revenues - 54,033 54,033 Expenditures: General government: Personal services 1,913,220 - 1,913,220 Operating 1,102,680 60,875 1,163,555 Capital outlay 73,915 - 73,915 Total expenditures 3,089,815 60,875 3,150,690 Excess of expenditures over revenues (3,089,815) (6,842) (3,096,657) Other financing sources(uses): Transfers in: General Fund - 6,808 6,808 Collier County, Florida Board of County Commissioners appropriations 3,238,700 - 3,238,700 Transfers out: Special revenue fund (6,808) - (6,808) Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (142,077) - (142,077) Total other financing sources 3,089,815 6,808 3,096,623 Net change in fund balance - (34) (34) Fund balance—beginning of the year - 1,034 1,034 Fund balance—end of the year $ - $ 1,000 $ 1,000 See accompanying Notes to Financial Statements 4 1 3 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual General Fund Year Ended September 30, 2015 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues $ - $ - $ - $ - Expenditures: General government: Personal services 1,983,100 1,988,100 1,913,220 74,880 Operating 1,223,400 1,169,872 1,102,680 67,192 Capital outlay 32,200 73,920 73,915 5 Total expenditures 3,238,700 3,231,892 3,089,815 142,077 Excess of expenditures over revenues (3,238,700) (3,231,892) (3,089,815) 142,077 Other financing sources (uses): Transfers in: Collier County,Florida Board of County Commissioners appropriations 3,238,700 3,238,700 3,238,700 - Transfers out: Special Revenue Fund - (6,808) (6,808) - Distrbution of excess appropriations: Collier County,Florida Board of County Commissioners - - (142,077) (142,077) Total other fmancing sources (uses) 3,238,700 3,231,892 3,089,815 (142,077) Net change in fund balance - - - - Fund balance—beginning of the year - - - - Fund balance—end of the year $ - $ - $ - $ - See accompanying Notes to Financial Statements 5 1 3A Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies and Practices Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor's office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General—Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the SOE are funded by appropriations from the Collier County, Florida Board of County Commissioners (BOCC),and grant revenue is funded from the State of Florida. Pursuant to Chapter 218,Florida Statutes,funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the SOE's general fund. The special revenue fund of the SOE is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. 6 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies and Practices(continued) Measurement Focus,Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases(i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund — The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund — The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences,which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. 7 3 . 3 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies Practices (continued) Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The SOE does not currently hold investments. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. 8 1 3 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 1. Summary of Significant Accounting Policies and Practices (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non-spendable fund balances as of September 30, 2015. Spendable fund balances are classified based on a hierarchy of the Supervisor's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor's fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with GASB Statement No. 54. 9 13A Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor's annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor's total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by State grants and is governed by those documents. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year,whenever legally authorized. 3. Cash and Cash Equivalents At September 30, 2015, the carrying value of the Supervisor's cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand $ 200 N/A Demand deposits 238,471 N/A Total cash and cash equivalents $ 238,671 10 13A Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 3. Cash and Cash Equivalents(continued) Custodial Credit Risk At September 30, 2015, the Supervisor's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. 11 1 3A Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. 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 value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September30, 2014 Additions Deductions 2015 Machinery and equipment $ 1,176,876 $ 73,915 $ (136,969) $ 1,113,822 Less accumulated depreciation (1,010,980) (54,858) 110,461 $ (955,377) Machinery and equipment,net $ 165,896 $ 19,057 $ (26,508) $ 158,445 12 1 3 Li Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2014 Increase Retirement 2015 Accrued compensated absences $ 196,105 $ 110,200 $ 150,568 $ 155,737 Of these liabilities, approximately $119,917 is expected to be paid during the fiscal year ending September 30, 2016, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1,2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112,Florida Statutes,established the Retiree Health Insurance Subsidy(HIS)Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. 13 1 3 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 6. Pension Plans(continued) Background (continued) Essentially all regular employees of the Supervisor are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site(www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan(FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class—Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class—Members who hold specified elective offices in local government. Senior Management Service Class (SMSC)—Members in senior management level positions. Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. 14 13i Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 6. Pension Plans(continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 15 �r 1 3 A Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 6. Pension Plans(continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services,Division of Retirement. 16 1 3 LI Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30,2015 6. Pension Plans(continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of$30 and a maximum HIS payment of$150 per month,pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration(SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. SOE employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms,including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. 17 13A Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 6. Pension Plans(continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds)to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts,if any, would be immaterial to the SOE. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor's contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $106,131, $103,864, and $76,386 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report. 18 13A Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 7. Related-Party Transactions For the year ended September 30, 2015, the Board provided funding for the Supervisor that amounted to $3,238,700. At September 30, 2015, the Supervisor had a payable due to the Board of$146,385 comprised as follows: Distribution of excess appropriations $ 142,077 Distribution of interest earnings 1,288 Amounts due for various services 3,020 Total due to Board of County Commissioners $ 146,385 8.Risk Management Collier County, Florida(County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers' compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self- insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County's self-insurance program. During the year ended September 30, 2015, the Supervisor was charged $279,509 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation, and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28,Florida Statutes, which provide for limited sovereign immunity of$200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. 19 1 3 Lir\ Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 8. Risk Management (continued) The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Healthcare Benefits (OPEB)Plan The SOE follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The SOE participates in a group health care plan that covers eligible retirees,and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report; however, additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County,Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011, are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62(65 if hired on or after July 1,2011)are also eligible to participate in the medical plan. The Supervisor provides no subsidy to the retiree, or their dependents, for group health care. 20 3 ,. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2015 9.Other Postemployment Healthcare Benefits(OPEB) Plan (continued) Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County's self-insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Supervisor had a net OPEB obligation of$9,736 as of September 30,2015. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor's grants. In fiscal 2015 the matching funds transferred was $6,808. 21 CliftonLarsonAllen LLP CLAconnect.com 1 3 A CliftonLarsonAtlen INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County,Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Supervisor's financial statements,and have issued our report thereon dated January 26,2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor'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 opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the Supervisor's internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the 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. 7�� vv. NEMr...;aaKEPIAl«ti 22 1 Honorable Jennifer J. Edwards Supervisor of Elections Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly,we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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. dhfit Ze -7t Z. CliftonLarsonAllen LLP Naples,Florida January 26,2016 23 1 3 A ,, , ,,, ,-, ,, A ChftonLarsonAllen LLP CLAconnect.com CliftonLarsonAtlen MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of the each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2015 and have issued our report thereon dated January 26, 2016. Auditors' Responsibility 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 and Chapter 10.550,Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report which is dated January 26, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority 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. See Note 1 in the notes to the financial statements. NEXIAx depepisrt n,n .1 N5,4aaeg 24 I.. ISN VI(,AI 1 3 Honorable Jennifer J. Edwards Supervisor of Elections Other Matters Section 10.554(1)(1)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(1)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit,we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. dr3-1C/0"(44'.7(-"1//.0-0,e--.Z21)/ CliftonLarsonAllen LLP Naples,Florida January 26,2016 25 A F. ! CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT ACCOUNTANTS'REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County,Florida We have examined the Collier County, Florida Supervisor of Elections' (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Supervisor's compliance with those requirements. Our responsibility is to express an opinion on the Supervisor'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 Supervisor's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor's compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Supervisor 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. &-1/147e-Zdt-44'er7tifkloot_ CliftonLarsonAllen LLP Naples,Florida January 26,2016 NEXIA A4.eti4xxfkli rrErito]I44a,t,rvti,xrs' 26 :NIL:2,AI 1 3 A Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2015 and 2014 13A Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2015 and 2014 Contents Independent Auditors' Report 1 Financial Statements Balance Sheets—General Fund 3 Statements of Revenues, Expenditures, and Changes in Fund Balance—General Fund 4 Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual—General Fund 5 Statements of Fiduciary Net Position—Agency Funds 6 Notes to Financial Statements 7 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 24 Management Letter '6 Independent Accountants' Report 28 1 3A CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAtlen INDEPENDENT AUDITORS' REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the years ended September 30, 2015 and 2014, and the related notes to the financial statements, which collectively comprise the Tax Collector's 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. Auditors'Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the 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. NNEXIA MirKkporviut!n k< XNtk In rai.xd 1 134 Honorable Larry H. Ray Tax Collector Opinions In our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30,2015 and 2014,and the respective changes in financial position for the years then ended and the budgetary comparison for the general fund thereof for the year ended September 30,2015, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida.In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund,and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2015 and 2014, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statement is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 8, 2016 on our consideration of the Tax Collector'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 included under the heading Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 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 Tax Collector's internal control over financial reporting and compliance. dri7C./.444it'r,11Zmac.. CliftonLarsonAllen LLP Naples, Florida January 8, 2016 2 1 3 Collier County, Florida Tax Collector Balance Sheets — General Fund September 30 2015 2014 Assets Cash and cash equivalents $ 7,118,870 $ 6,383,588 Due from other funds 64,735 73,087 Prepaid rent 30,789 23,079 Prepaid expense 19,780 — Security deposit 4,628 4,628 Total assets $ 7,238,802 $ 6,484,382 Liabilities and fund balance Liabilities: Accounts payable $ 40,242 $ 25,922 Due to Collier County, Florida Board of County Commissioners 6,364,300 5,725,702 Due to other governmental agencies 834,260 732,758 Total liabilities 7,238,802 6,484,382 Fund balance: Nonspendable 55,197 27,707 Unassigned (55,197) (27,707) Total fund balance — — Total liabilities and fund balance $ 7,238,802 $ 6,484,382 See accompanying Notes to Financial Statements. 3 13A Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30 2015 2014 Revenues: Commissions and fees $ 18,285,749 $ 17,201,400 Miscellaneous 254,225 234,947 Total revenues 18,539,974 17,436,347 Expenditures: General government: Personal services 9,708,288 9,344,705 Operating 1,587,856 1,587,153 Capital outlay 45,270 46,029 Total expenditures 11,341,414 10,977,887 Excess of revenues over expenditures 7,198,560 6,458,460 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,364,300) (5,725,702) Distribution of excess commissions and fees to other governmental agencies (834,260) (732,758) Total other financing uses (7,198,560) (6,458,460) Net change in fund balance — — Fund balance, beginning of year — — Fund balance, end of year $ — $ — See accompanying Notes to Financial Statements. 4 13A Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual General Fund Year Ended September 30, 2015 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees $ 17,408,353 $ 17,408,353 $ 18,285,749 $ 877,396 Miscellaneous 260,000 260,000 254,225 (5,775) Total revenues 17,668,353 17,668,353 18,539,974 871,621 Expenditures: General government: Personal services 10,040,774 10,040,774 9,708,288 332,486 Operating 1,825,647 1,809,178 1,587,856 221,322 Capital outlay 29,522 45,991 45,270 721 Total expenditures 11,895,943 11,895,943 11,341,414 554,529 Excess of revenues over expenditures 5,772,410 5,772,410 7,198,560 1,426,150 Other financing uses: Distribution of excess commissions and fees to Collier County,Florida Board of County Commissioners (5,079,721) (5,079,721) (6,364,300) (1,284,579) Distribution of excess commissions and fees to other governmental agencies (692,689) (692,689) (834,260) (141,571) Total other financing uses (5,772,410) (5,772,410) (7,198,560) (1,426,150) Net change in fund balance — — — — Fund balance,beginning of year — — — — Fund balance,end of year $ — $ — $ — $ — See accompanying Notes to Financial Statements. 5 1 3 4 Collier County, Florida Tax Collector Statements of Fiduciary Net Position Agency Funds September 30, 2015 and 2014 September 30 2015 2014 Assets Cash and cash equivalents $ 7,152,324 $ 6,817,938 Accounts receivable 18,820 14,902 Total assets $ 7,171,144 $ 6,832,840 Liabilities Due to other funds $ 64,735 $ 73,087 Due to Collier County, Florida Board of County Commissioners 1,030,992 1,138,080 Due to other governmental agencies 6,048,339 5,536,216 Due to individuals and businesses 27,078 85,457 Total liabilities $ 7,171,144 $ 6,832,840 See accompanying Notes to Financial Statements. 6 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector's operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector's office. Upon approval,the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector's financial statements include only the funds of the Tax Collector's office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus,Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Tax Collector. The focus of governmental fund financial statements is on major funds rather than reporting funds by type.Each major fund is reported in a separate column. 7 13A Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheets. Operating statements for these funds present increases(i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector's only governmental fund is the general fund.The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt; earlier if the "susceptible to accrual"criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. 8 1 3 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Agency funds— Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Refund of"Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as another financing use-transfer out in the accompanying financial statements. Compensated Absences All full-time employees of the Tax Collector are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave. Upon termination, employees receive 100%of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. 9 1 3A Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197,Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1%for payment in February. Unpaid Taxes—Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures.Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. 10 3 a Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's annual budget.The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval.A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector's total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 11 1 3 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 3. Cash At September 30, 2015 and 2014, the carrying value of the Tax Collector's cash was as follows: 2015 2014 Carrying Carrying Type Value Value Cash on hand $ 33,900 $ 32,700 Demand deposits 14,237,294 13,168,826 Total cash and cash equivalents $ 14,271,194 $ 13,201,526 Such amounts are reported as$7,118,870 and$7,152,324 for 2015 and$6,383,588 and$6,817,938 for 2014 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2015, the Tax Collector's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Tax Collector's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the state of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. 12 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 3. Cash (continued) Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of Collier County,Florida rather than in the governmental funds of the Tax Collector.Upon acquisition,such assets are recorded as expenditures in the general fund of the Tax Collector, and are capitalized at cost in the basic financial statements of Collier County, Florida. 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 value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2015: October 1 September30 2014 Additions Deletions 2015 Infrastructure $ 11,735 $ - $ - $ 11,735 Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,251,583 45,270 (74,655) 2,222,198 Total Capital Assets 2,375,232 45,270 (74,655) 2,345,847 Less accumulated depreciation: (2,105,422) (126,245) 74,451 (2,157,216) Total capital assets, net $ 269,810 $ (80,975) $ (204) $ 188,631 13 134 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 4. Capital Assets(continued) The following is a summary of changes in capital assets for the year ended September 30, 2014: October 1 September 30 2013 Additions Deletions 2014 Infrastructure $ 11,735 $ - $ - $ 11,735 Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,313,698 46,029 (108,144) 2,251,583 Total Capital Assets 2,437,347 46,029 (108,144) 2,375,232 Less accumulated depreciation: (2,064,019) (149,546) 108,143 (2,105,422) Total capital assets, net $ 373,328 $ (103,517) $ (1) $ 269,810 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1 September 30 2014 Increase Decrease 2015 Accrued compensated absences $ 1,152,878 $ 670,017 $ (597,987) $ 1,224,908 October 1 September 30 2013 Increase Decrease 2014 Accrued compensated absences $ 1,110,288 $ 450,850 $ (408,260) $ 1,152,878 Of these liabilities, approximately $600,000 is expected to be paid during the fiscal year ending September 30, 2016, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. 14 3 IA Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 6.Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees.The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program,a cost-sharing multiple-employer defined benefit pension plan,to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: 15 e7 77 c Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 6. Pension Plans (continued) • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSC) — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service,except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 16 13A Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 6. Pension Plans(continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service,average final compensation,and service credit.Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011,the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service,which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time.The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 17 x Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 6. Pension Plans(continued) Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of$30 and a maximum HIS payment of$150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage,which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan(Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class(Regular Class,Elected County Officers,etc.),as the FRS defined benefit plan.Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. 18 1 3 A Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 6.Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution,or any combination of these options.Disability coverage is provided;the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida.The Tax Collector's contributions made to the plans during the years ended September 30, 2015, 2014, and 2013 were $598,808, $545,011, and $359,211 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report or County-wide financial statements. 19 •ti Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 7. Other Postemployment Healthcare Benefits (OPEB)Plan The Tax Collector follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description. The Tax Collector participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report, however additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) are also eligible to participate in the medical plan. In addition, the Tax Collector provides a 100% subsidy for retirees between the ages of 55 and 65 with more than 10 years of service and 800 hours of accumulated sick leave to remit at the time of retirement for employees hired prior to June 1, 2015. Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County's self insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Tax Collector's agency had a net OPEB obligation of$13,851 and $14,077 as of September 30, 2015 and 2014, respectively. 20 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 7. Other Postemployment Healthcare Benefits (OPEB)Plan (continued) The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer(ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in October,2015. The notes to the financial statements of the County disclose additional information regarding the other postemployment benefit plan as a whole. 8. Related-Party Transactions During the fiscal years ended September 30,2015 and 2014,the Board paid commissions and fees to the Tax Collector that amounted to $16,391,328 and$15,458,070, respectively. At September 30,2015 and 2014,the Tax Collector had a payable due to the Board of$7,395,292 and $6,863,782, respectively, comprised as follows: 2015 2014 Distribution of excess commissions and fees $ 6,364,300 $ 5,725,702 Agency funds due to the Board 1,030,992 1,138,080 $ 7,395,292 $ 6,863,782 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County.The Tax Collector participates in the County's self-insurance program. During the years ended September 30, 2015 and 2014, the Tax Collector was charged $2,833,407 and $2,800,412, respectively, by the County for participation in the risk management program. 21 1 3 A Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 9. Risk Management(continued) The County provides coverage for up to $500,000 per claim for workers' compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $300,000 per occurrence for general liability and auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a$50,000 deductible for all other perils. The County retains the first$100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first$325,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2015.The two current leases include options for a 5-year renewal with an annual escalation clauses ranging from 1-5% annually. The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2016 $ 270,963 2017 247,105 2018 81,043 2019 83,469 2020 28,095 22 j tp Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2015 and 2014 10. Commitments and Contingencies (continued) Rental expense for all operating leases in the aggregate was $362,182 and $359,126 for the years ended September 30, 2015 and 2014, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2015 or 2014. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector. 23 21 CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Larry H. Ray Tax Collector Collier County, Florida We have audited,in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Collier County,Florida Tax Collector(Tax Collector),as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Tax Collector's financial statements, and have issued our report thereon dated January 8, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector'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 opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector's internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the 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. NEXIArorrbo I"sk i,torstx! 24 INIFRt ,Tt',1,1. 1 Honorable Larry H. Ray 3 A Tax Collector Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly,we do not express such an opinion.The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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. CliftonLarsonAllen LLP Naples, Florida January 8,2016 25 CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen MANAGEMENT LETTER Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector(Tax Collector)as of and for the year ended September 30, 2015, and have issued our report thereon dated January 8, 2016. Auditor's Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reports and Schedule We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in that report which is dated January 8, 2016 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority 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. See Note 1 in the notes to the financial statements. XIA1,?, icp,nck r mItuxajfrtaroti-YIA 26 INTI. 1 Honorable Larry H. Ray 3 A Tax Collector Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements,or abuse,that have occurred,or are likely to have occurred,that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit,we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives,the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. dZetX/eVt-JAt-it,11/Aft, CliftonLarsonAllen LLP Naples, Florida January 8, 2016 27 1 3 A CliftonLarsonAllen LLP CLAconnect.com CliftonLarsonAllen INDEPENDENT ACCOUNTANTS' REPORT Honorable Larry Ray Tax Collector Collier County, Florida We have examined the Collier County Tax Collector, Collier County, Florida's (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2015. Management is responsible for the Tax Collector's compliance with those requirements. Our responsibility is to express an opinion on the Tax Collector'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 Tax Collector's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector's compliance with specified requirements. In our opinion,the Tax Collector complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. This report is intended solely for the information and use of the Tax Collector 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. CliftonLarsonAllen LLP Naples, Florida January 8,2016 28 ......,,„.„.., 1 3 A .,.............,..„.„,........ , .... . ... . , . _ . „.42,7_.r...„..,.....„,.., . .;2„,.„...„,..„..,......,_ _ _ .,. '''',,,,0,•:‘,' :. - ,' , ' --,-.-- '''1.7':;7:';'''';',''''''•''''' '', - _-.-:' . . . '',1`-i;"-_.•:" , ' . ,.-' ,..-' , .,' ' -• ".''-'11,! h, .,,,,,--(.._':',.:.•_,' .-',,• . _ ..,, ,_'''''•-,'••,-, : • , .., ,,,,,,.,••••••--•... ,. ...,,-.._'- _ , , - , . : rr:--rr 1.,-.....„..,-. _ . . 1.'''.;rt''''''.';‘!-,..'-.." .. -,.'. • -,%... ,... .. ,.. . . ..,..,. _ 'ir,.r.... . . .... .;-.7.-.:,.,--..-;.„-,:.___-r r - r -' • ' ..,- ;42-i",---.•"--,:-----r-r . :::...,,..7.• it"'",;.`r‘gr;r.':',",_:-1,•.;- r '`. - ..•,,,d, .,..„._..,,_ , ... ,..."'.- 1 , - . 1 i. 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