Audit FY End 09-30-2015 NORTH COLLIER FIRE CONTROL
AND RESCUE DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
NINE MONTH PERIOD ENDED
SEPTEMBER 30,2015
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT 1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-xi
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:
Statement of Net Position 5
Statement of Activities 6
FUND FINANCIAL STATEMENTS:
Governmental Funds:
Balance Sheet 7
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 8
Statement of Revenues,Expenditures and Changes
in Fund Balance 9
Reconciliation of the Statement of Revenues,Expenditures and Changes
in Fund Balance of Governmental Funds to the Statement of Activities 10
Fiduciary Fund-Firefighters'Pension Plan:
Statement of Fiduciary Net Position 11
Statement of Changes in Fiduciary Net Position 12
NOTES TO THE FINANCIAL STATEMENTS 13-74
OTHER INFORMATION
COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREAS
Governmental Funds
Combining Balance Sheet-General Fund-by Service Delivery Areas 75
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances-
General Fund-by Service Delivery Areas 76
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
NORTH NAPLES SERVICE DELIVERY AREA
BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds)
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
General Fund-Summary Statement 77
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
General Fund-Detailed Statement 78-80
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund-Summary Statement 81
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund-Detailed Statement 82
TABLE OF CONTENTS(CONTINUED)
Page(s)
BUDGET TO ACTUAL COMPARISON-OTHER NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds:
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Inspection Fee Fund-Summary Statement 83
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Inspection Fee Fund-Detailed Statement 84-85
BIG CORKSCREW ISLAND SERVICE DELIVERY AREA
BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
General Fund-Summary Statement 86
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
General Fund-Detailed Statement 87-89
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund-Summary Statement 90
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund-Detailed Statement 91
OTHER REQUIRED SUPPLEMENTARY INFORMATION
Schedule of District's Proportionate Share of the Net Pension Liability-Florida Retirement
System Plan(FRS) 92
Schedule of District Contributions-Florida Retirement System Plan(FRS) 92
Schedule of District's Proportionate Share of the Net Pension Liability-Health Insurance
Subsidy Pension Plan(HIS) 93
Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS) 93
Notes to the Required Supplementary Information 94-95
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control
over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Basic Financial
Statements Performed in Accordance with Government Auditing Standards 96-97
Independent Accountant's Report on Compliance with
Section 218.415,Florida Statutes 98
Independent Auditor's Report to Management 99-101
Management's Response to Independent Auditor's Report to Management Exhibit
TU CAN Afficiations
Florida Institute of Certified Public Accountants
& Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples,Florida 34109-0492
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund
of North Collier Fire Control and Rescue District(the"District")as of and for the nine month period ended
September 30,2015,and the related notes to the financial statements,which collectively comprise the District's
basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America;this includes the
design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement,whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.We did not audit
the financial statements of North Collier Fire Control and Rescue District Firefighters'Pension Fund("Pension
Fund")as of and for the year ended September 30,2015,which represent 100%of the assets,liabilities and net
position as well as 100%of the revenue and expenses of the District's Fiduciary Fund. Those financial
statements were audited by other auditors whose report thereon has been furnished to us,and our opinion,
insofar as it relates to the amounts included for North Collier Fire Control and Rescue District Firefighters'
Pension Trust Fund,is based on the report of the other auditors. We also did not audit the financial statements
of the Florida Retirement System Pension Plan(FRS)or Health Insurance Subsidy Pension Plan(HIS)as of and
for the year ended June 30,2015. The District is required to record its proportionate share of the FRS and HIS
liability in the District's government-wide financial statements as of September 30,2015 and for the nine month
period then ended. The Florida Retirement System financial statements were audited by other auditors whose
reports have been furnished to us,and our opinion,insofar as it relates to the amounts included for the
District's government-wide financial statements,are based on the reports of the other auditors. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards,issued by the
Comptroller General of the United States of America. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment,including the assessment of
the risks of material misstatement of the financial statements,whether due to fraud or error. In making those
risk assessments,the auditor considers internal control relevant to the entity's preparation and fair
INTEGRITY SERVICE EXPERIENCE
12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907• Phone: (239)333-2090 • Fax: (239)333-2097
Board of Commissioners
North Collier Fire Control and Rescue District
Page 2
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 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.
Summary of Opinions
Opinion Unit Type of Opinion
Governmental Activities Unmodified
General Fund Unmodified
Impact Fee Fund Unmodified
Inspection Fee Fund Unmodified
Firefighters'Pension Trust Fund Unmodified
Opinions
Unmodified Opinions
In our opinion,based on our audit and the report of other auditors,the financial statements referred to above
present fairly,in all material respects,the respective financial position of the governmental activities and each
major and non-major fund of North Collier Fire Control and Rescue District as of September 30,2015,and the
respective changes in financial position,for the nine month period then ended in accordance with accounting
principles generally accepted in the United States of America.
Emphasis of Matter
On January 1,2015,the North Naples Fire Control and Rescue District merged with Big Corkscrew Island Fire
Control and Rescue District to form the North Collier Fire Control and Rescue District. Accordingly,these
financial statements reflect the assets,liabilities,fund balance/net position,revenue and expenditures/
expenses of the initial operating period ended September 30,2015,and for the nine(9)month period then ended
of the North Collier Fire Control and Rescue District as a result of the merger. The merger is further discussed
in Note A within these financial statements.
Emphasis of a Matter
During the nine month period ended September 30,2015,the District adopted GASB Statement No.68,
Accounting and Financial Reporting for Pensions,an amendment of GASB Statement No.27,which is a
change in accounting principle that requires an employer participating in a defined benefit pension plan to
report the employer's proportionate share of the net pension liability of the defined benefit pension plan. This
affects the comparability of amounts reported in the 2014-15 fiscal year with the amount reported for the 2013-14
fiscal year. As a result of the implementation of GASB 68,the District reported a restatement of net position for
the change in accounting principle of$7,857,862(see Note K). The auditor's 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 the management's
discussion and analysis on pages i-xi,Schedule of the District's Proportionate Share of the Net Pension
Board of Commissioners
North Collier Fire Control and Rescue District
Page 3
Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement
System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health
Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension
Plan(HIS)and Notes to the Required Supplementary Information,as listed in the table of contents,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 which 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-
management's discussion and analysis(MD&A),Schedule of the District's Proportionate Share of the Net
Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida
Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability
-Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy
Pension Plan(HIS),and Notes to the Required Supplementary Information,as listed in the table of contents,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 required supplementary information-management's discussion and analysis
(MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement
System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS),
Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension
Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS),and Notes to the
Required Supplementary Information,as listed in the table of contents,because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise North Collier Fire Control and Rescue District's basic financial statements.The required
supplementary information other than MD&A-budgetary comparison information is presented for purposes
of additional analysis and is not a required part of the basic financial statements.The required supplementary
information other than MD&A budgetary comparison information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures,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 required
supplementary information other than MD&A-budgetary comparison information is fairly stated,in all
material respects,in relation to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The combining financial statements and schedules,the
introductory section and statistical section,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.
Board of Commissioners
North Collier Fire Control and Rescue District
Page 4
The combining financial statements and schedules are the responsibility of management and were derived from
and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, 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 combining and individual fund
financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Districts basic financial statements. The Exhibit-Managements Response to Independent
Auditor's Report to Management is not a required part of the basic financial statements but is required by
Government Auditing Standards. Such information has 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 Section 218.415, Florida Statutes
In accordance with Section 218,415,Florida Statutes,we have also issued a report dated May 24,2016,on
our consideration of North Collier Fire Control and Rescue District's compliance with provisions of Section
218.415,Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and
the results of that testing,and to provide an opinion on compliance with the aforementioned Statute. That
report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415,Florida Statutes
in considering North Collier Fire Control and Rescue District's compliance with Section 218.415,Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated May 24,2016,on
our consideration of the District's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws,regulations,contract and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing,and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering North Collier Fire Control and Rescue District's internal control over financial
reporting and compliance.
44.143W
TUSCAN&COMPANY,P.A.
Fort Myers,Florida
May 24,2016
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
Management's Discussion and Analysis
of Financial Statements FYE September 30,2015
This Discussion and Analysis of the North Collier Fire Control and Rescue District's
("The District")basic financial statements is provided to assist the reader in
understanding the District's financial activities and significant changes in ending
financial position for the nine month period ended September 30, 2015. These statements
implement the requirements of GASB Statements#34 and#68 and incorporate those
annual reporting requirements, as well as the financial statement format and presentation.
Contained within are the basic financial statements, consisting of the government-wide
financial statements, governmental fund financial statements and notes to the financial
statements. This Discussion and Analysis will also provide an analytical overview of
these statements. No comparison of the District's financial position as compared to the
previous fiscal year is possible since the District was created and effective as of January
1, 2015. Therefore, these financial statements reflect financial activity for the nine month
period ended September 30, 2015.
Effective September 30, 2015, the District adopted the provisions of Governmental
Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting for
Pensions" (Statement No. 68). The implementation of this accounting standard requires
the District to report its actuarially determined net pension liability of the Firefighters'
Pension Plan and the Florida Retirement System(FRS and HIS) of$7,098,671 in the
government-wide financial statements as of September 30, 2015. It also requires
additional disclosure in the notes related to the financial statements and restatement of the
prior year net position in the amount of$7,857,862.
District Merger
On February 6, 2014, the North Naples Fire Control and Rescue District entered into an
Interlocal Agreement with Big Corkscrew Island Fire Control and Rescue District to
merge the two districts. Both District Boards adopted a resolution identifying their
intention to initiate the voluntary merger process pursuant to Florida Statute, Chapter
189.074. The two Districts then created a proposed Joint Merger Plan which was adopted
by both Boards and ultimately put before the voters of each District by referendum.
On November 4, 2014, voters from both Districts approved the referendum to merge the
two Districts into one. On January 1, 2015, the North Collier Fire Control and Rescue
District was officially formed by merger of the two Districts. On June 10, 2015, the
Governor signed into legislation the official enabling act of the new District via Laws of
Florida("LOF"), Chapter 2015-191. Pursuant to that enabling legislation, each service
delivery area(identified by the geographic boundaries of the former North Naples Fire
Control and Rescue District and the Big Corkscrew Island Fire Control and Rescue
District) shall be a separate taxing unit,with the North Naples Service Delivery Area
authorized to levy a millage rate of up to 1 mill and the Big Corkscrew Island Service
Delivery Area authorized to levy a millage rate of up to 3.75 mills. The budget of the
District shall be comprised of separate budgets of each service delivery area until such
time as there is one millage rate levied districtwide and the taxing subunits have been
eliminated. Until such time, a cost allocation methodology shall be used and there shall
be separate budgets and cash reserves for each service delivery.
BJB/bb 6-11-16
District Highlights
1. At September 30, 2015, the District's assets exceeded its liabilities,resulting in net
assets of$31,806,678. Prior to the effects of GASB #68 on the Firefighters'
Retirement Plan.
2. The District had$1,423,812 of unrestricted net assets at September 30, 2015 that can
be used to meet the District's ongoing obligations.
Government-wide Financial Statements
Government-wide financial statements (Statement of Net Position and Statement of
Activities found on pages 5 and 6) are intended to allow a reader to assess a
government's operational accountability. Operational accountability is defined as the
extent to which the government has met its operating objectives efficiently and
effectively, using all resources available for that purpose, and whether it can continue to
meet its objectives for the foreseeable future. Government-wide financial statements
concentrate on the District as a whole and do not emphasize fund types.
The Statement of Net Position(page 5)presents information on all of the District's assets
and liabilities, with the difference between the two reported as net assets. The District's
capital assets are included in this statement and reported net of their accumulated
depreciation.
The Statement of Activities (page 6)presents revenue and expense information showing
how the District's net assets changed during the fiscal year. Both statements are
measured and reported using the economic resource measurement focus (revenues and
expenses) and the accrual basis of accounting(revenue recognized when earned and
expense recognized when incurred).
Governmental Fund Financial Statements
The accounts of the District are organized on the basis of governmental funds, each of
which is considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self-balancing accounts that comprise its assets,
liabilities, fund equity or retained earnings,revenues and expenditures. Government
resources are allocated to and accounted for in individual funds based upon the purpose
for which they are to be spent and the means by which spending activities are controlled.
Governmental fund financial statements (found on pages 7 and 9) are prepared on the
modified accrual basis using the current financial resources measurement focus. Under
the modified accrual basis of accounting, revenues are recognized when they become
measurable and available as net current assets.
Notes to the Financial Statements
The notes to the financial statements explain in detail some of the data contained in the
preceding statements and begin on page 13. These notes are essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Government-Wide Financial Analysis
The government-wide financial statements are designed so that the user can determine if
the District's financial condition is better or worse than the prior year. However, since
the statements for the nine month period ended September 30, 2015 represent the first
BJB/bb 6-11-16 ii
fiscal period of the North Collier Fire Control and Rescue District, no comparison to a
prior year is possible, so the financial statements are intended to provide the user the
District's initial financial condition and financial activity for the nine month period ended
September 30, 2015.
Summary Statement of Net Position
September 30,2015
Assets: 2015
Current and Other Assets $ 17,215,466
Capital Assets 30,913,073
Total Assets 48,128,539
Deferred Outflows of Resources—Pensions 6,994,515
Liabilities:
Current Liabilities 2,509,067
Non-Current Liabilities 11,730,921
Total Liabilities 14,239,988
Deferred Inflows of Resources—Pension 9,076,388
Net Position:
Net Investment in Capital Assets 30,373,570
Restricted 9,296
Unrestricted 1,423,812
Total Net Position $ 31,806,678
Current and other assets represent 36 percent of total assets at September 30, 2015.
Current assets at September 30, 2015 are comprised of unrestricted cash balances of
$8,723,137, restricted cash of $1,544,714, unrestricted investments of $6,010,518, due
from other governments of $472,433, other receivables of $221,188 and other assets of
$243,476. The balances of unrestricted cash represent amounts that are available for
spending at the discretion of the Board of Fire Commissioners of the District. Restricted
cash balances are comprised of the impact fee funds restricted for the purchase of capital
assets, and unspent inspections fee revenue restricted to support the inspection of new
construction.
The net investment in capital assets represent 95 percent of net position at September 30,
2015. These assets are comprised of land, buildings, improvements, equipment,
furniture, and vehicles, net of accumulated depreciation, and the outstanding related debt
used to purchase the assets. The unrestricted net position balance of $1,423,812
represents resources available for spending at September 30, 2015.
BJB/bb 6-11-16 iii
Summary of Revenues,Expenses and Changes in Net Assets
For the Nine Month Period Ended September 30,2015
Revenues: 2015
General Revenues
Ad Valorem Taxes $ 4,013,065
Charges for Services 1,826,219
Program Revenues
Grants 32,803
Miscellaneous
Impact Fees 1,745,626
Investment Earnings 68,837
Gain (Loss) on Disposition of
Capital Assets (13,605)
Other 313,700
Total Revenues 7,986,645
Expenses:
Public Safety—Fire/Rescue Service 23,599,435
Increase(Decrease) in Net Position (15,612,790)
Net Position-Beginning of Year, as restated 47,419,468
Net Position-End of Year $31,806,678
It must be noted that Ad Valorem tax revenue received for the first fiscal year of the
North Collier Fire Control and Rescue District reflects taxes received only for the nine
month period from January 1, 2015 through September 30, 2015. The majority of Ad
Valorem revenue for each of the taxing subunits was received between October 1, 2014
and December 30, 2014, prior to the dissolution of the North Naples Fire Control and
Rescue District and the Big Corkscrew Island Fire Control and Rescue District and the
establishment of the North Collier Fire Control and Rescue District. Therefore, the Ad
Valorem tax revenue reflected in the initial financial statements for the North Collier Fire
Control and Rescue District is artificially low, and significantly lower than the projected
annual Ad Valorem tax revenue for future years.
BJB/bb 6-11-16 iv
The respective Boards of the taxing subunits adopted millage rates of.95 mils (North
Naples taxing subunit) or$0.95 for every$1,000 of taxable property value, and 3.50 mils
(Big Corkscrew Island taxing subunit), or$3.50 for every$1,000 of taxable property
value.
Fund Balance—Governmental Fund Financial Statements
Staff has worked hard to meet the Board of Fire Commissioners' directive to maintain the
fund balance and cash reserves of the General Fund to solidify the District's financial
position. The total fund balance of the General Fund, was $14,786,918 at September 30,
2015, including the nonspendable amount of$243,476 restricted for prepaid expenses,
and$14,543,442 in assigned reserves.
While assigned reserves have been established and maintained in accordance with
anticipated future needs of the District,it must be noted that the need may arise for the
Board to unassign a portion of these reserves to fund the District's operations should
property values fall or other unforeseen circumstances arise. The following General Fund
Assigned Reserves were approved for the nine month period ended September 30, 2015:
NonSpendable Fund Balance Amount
General Fund Prepaid Expenses $ 243,476
Assigned Fund Balance Amount
Operating Reserve—First Quarter $ 7,250,000
Minimum Operating Reserve per Policy 3,100,000
Health insurance Claim Reserve 629,973
Protective Gear 75,000
Vehicle Replacement 175,000
Fire Equipment 300,000
Emergency Reserve 1,776,282
Fire Apparatus 1,000,000
Community Outreach 3,500
Radio Replacement 21,718
Station Improvements &Equip. 191,069
Station#46 Improvements 20,900
Total Assigned Reserves $14,543,442
Total General Fund Reserves $14,786,918
The assigned reserves have been established by the Board of Fire Commissioners to meet
the future needs of the District, including operating expenses for the first quarter of the
fiscal year when prior to receipt of Ad Valorem revenue, and the replacement of capital
assets. Additionally, increases in health insurance, and other personnel and operating
expenses require that funds be set aside, or assigned, to prepare for the funding of future
expenditures.
BJB/bb 6-11-16 V
Impact Fees
The North Naples Taxing Subunit Board of Fire Commissioners opted to waive impact
fees for the 2012-2013 fiscal year in an effort to encourage growth in the District,
following a two year period when the Board adopted fees at fifty percent of the allowable
amount. For the 2013-2014 fiscal year, the Board reinstated impact fees at the full rate.
For the nine month period of January 1, 2015 through September 30, 2015, the North
Naples Taxing Subunit received impact fees in the amount of$1,740,724 and the Big
Corkscrew Taxing Subunit received$331,870 which is reflective of the growth occurring
throughout the District. Total Impact Fee Fund expenses of$1,063,247 largely consisted
of the cost to complete construction and equip Station#48, which opened in March of
2015. The Board, by Resolution 13-033, approved a loan from the General Fund to the
Impact Fee Fund for the construction of Station#48, which resulted in the transfer of
$703,891 from the Impact Fee Fund to the General Fund at the end of FYE 9-30-15.
Inspection Fees
The Inspection Fee Fund exists only in the North Naples taxing subunit. Inspection fee
revenue for the nine month period ended September 30, 2015 was $1,434,734, again
reflective of the growth and new construction occurring within the District. Expenses
totaled$1,432,146.
Budgetary Highlights
Budget versus actual comparisons are reported in the required supplementary information
other than management's discussion and analysis on pages 77 through 99 and are
reflected by taxing subunit. The variances in budget to actual are due to the fact that the
budgeted revenue and expenses are for the full fiscal year, and based on the independent
budgets adopted by the North Naples Fire Control and Rescue District and the Big
Corkscrew Island Fire Control and Rescue District prior to the merger. The actual
revenue and expenses recorded are for the nine month period of January 1, 2015 through
September 30, 2015, or 75% of the fiscal year. Therefore, variances, especially in
revenue, are significant.
Capital Assets
Non-depreciable capital assets include land and construction in progress. Depreciable
assets include buildings, improvements other than buildings, equipment, furniture and
vehicles.
The following is a schedule of the District's capital assets as of September 30, 2015.
Capital Assets
September 30,2015
Capital Assets 2015
Land $11,947,895
Construction in Progress 1,130,645
Total Capital Assets not Depreciated 13,078,540
Assets Held Under Capital Lease 160,240
Buildings 20,104,344
BJB/bb 6-11-16 vi
Vehicles 10,000,490
Office Equipment 1,675,316
Equipment&Machinery 3,637,256
Total Capital Assets Being Depreciated 35,577,646
Accumulated Depreciation
Assets Held Under Capital Lease (64,542)
Buildings ( 6,392,330)
Vehicles ( 7,567,741)
Office Equipment ( 1,173,796)
Equipment&Machinery ( 2,544,704)
Total Accumulated Depreciation (17,743,113)
Total Capital Assets being Depreciated,
Net 17,834,533
Capital Assets—Net of Depreciation 30,913,073
Less: Capital Lease and Note Payables (539,503)
Net Investment in Capital Assets $30.373,570
For additional information on the District's capital assets, see Note E on pages 33
through 35.
Debt Administration
As of September 30, 2015, the District had long term obligations of$11,820,736. That
debt consists of:
1. Compensated absences (accrued vacation liability)in the amount of$1,965,499.
2. OPEB obligation of$2,217,063, representing post employment health insurance
obligations pursuant to GASB No. 45.
3. Capital lease for medical equipment in the amount of$79,503. This lease was
entered into in 2013 as a lease to purchase agreement for 12 Lucas Chest
Compressors, and is a principal only lease, with no associated interest cost.
4. Note payable for the purchase of land in the amount of$460,000.
5. Pension liability (FRS)in the amount of$4,935,293. (see Note F)
6. Pension liability(HIS)in the amount of$2,155,823 (see Note F)
7. Pension liability(Ch. 175)in the amount of$7,555 (see Note F)
Request for Information
This financial report is designed to provide the reader an overview of the District.
Questions regarding any information provided in this report should be directed to: Becky
Bronsdon, Chief Financial Officer, North Collier Fire Control and Rescue District, 1885
Veteran's Park Drive, Naples, FL 34109, 239-597-3222, e-mail:
bbronsdon@northcollierfire.com.
BJB/bb 6-11-16 Vii
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 of 101
STATEMENT OF NET POSITION
September 30,2015 Governmental
Activities
ASSETS
Current assets:
Cash and cash equivalents $ 8,723,137
Restricted cash and cash equivalents 1,544,714
Investments 6,010,518
Due from other governments 472,433
Other receivables 221,188
Other assets 243,476
Total current assets 17,215,466
Noncurrent assets:
Capital assets:
Land 11,947,895
Construction in progress 1,130,645
Depreciable buildings,equipment, and vehicles
(net of$17,743,113 accumulated depreciation) 17,834,533
Total noncurrent assets 30,913,073
TOTAL ASSETS 48,128,539
DEFERRED OUTFLOWS OF RESOURCES-PENSIONS 6,994,515
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 1,349,443
Retainage payable -
Contract deposits 7,500
Unearned revenue 1,062,309
Current portion of long-term obligations 89,815
Total current liabilities 2,509,067
Noncurrent liabilities:
Noncurrent portion of long-term obligations 11,730,921
TOTAL LIABILITIES 14,239,988
DEFERRED INFLOWS OF RESOURCES-PENSIONS 9,076,388
NET POSITION
Net investment in capital assets 30,373,570
Restricted 9,296
Unrestricted 1,423,812
TOTAL NET POSITION $ 31,806,678
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 6 of 101
STATEMENT OF ACTIVITIES
Nine Month Period ended September 30,2015
Governmental
Activities
EXPENSES
Governmental Activities
Public Safety-Fire Protection
Personnel services $ 19,522,302
Operating expenses 2,910,819
Depreciation 1,145,952
Interest and fiscal charges 20,362
TOTAL EXPENSES -GOVERNMENTAL ACTIVITIES 23,599,435
PROGRAM REVENUES
Charges for services 1,826,219
Operating grants and contributions 32,803
NET PROGRAM EXPENSES 21,740,413
GENERAL REVENUES
Ad Valorem taxes 4,013,065
Impact fees 1,745,626
Interest 68,837
Loss on disposition of capital assets (13,605)
Other 313,700
TOTAL GENERAL REVENUES 6,127,623
DECREASE IN NET POSITION (15,612,790)
NET POSITION-Beginning of the year,as restated(see Note K) 47,419,468
NET POSITION-End of the year $ 31,806,678
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 7 of 101
BALANCE SHEET - GOVERNMENTAL FUNDS
September 30,2015
Total
General Impact Fee Impact Fee Inspection Fee Governmental
Fund Fund-NN Fund-BCI Fund-NN Funds
ASSETS
Cash and cash equivalents $ 8,723,137 $ - $ - $ - $ 8,723,137
Restricted cash and cash equivalents - 49,137 997,449 498,128 1,544,714
Investments 6,010,518 - - - 6,010,518
Due from other governments 200,502 69,471 62,507 139,953 472,433
Due from other funds 2,019,028 1,423,055 3,291 50 3,445,424
Other receivables 202,431 18,757 - - 221,188
Prepaid expenses 243,476 - - - 243,476
TOTAL ASSETS $ 17,399,092 $ 1,560,420 $ 1,063,247 $ 638,131 $ 20,660,890
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $ 1,178,278 $ 170,227 $ 938 $ - $ 1,349,443
Retainage payable - - -
Duetootherfunds 1,426,396 1,390,193 - 628,835 3,445,424
Contract deposits 7,500 - - - 7,500
Unearned revenue - - 1,062,309 - 1,062,309
TOTAL LIABILITIES 2,612,174 1,560,420 1,063,247 628,835 5,864,676
FUND BALANCE
Nonspendable 243,476 - - - 243,476
Restricted - - - 9,296 9,296
Assigned 14,543,442 - - - 14,543,442
-
Unassigned - - -
TOTAL FUND BALANCE 14,786,918 - - 9,296 14,796,214
TOTAL LIABILITIES AND
FUND BALANCE $ 17,399,092 $ 1,560,420 $ 1,063,247 $ 638,131 $ 20,660,890
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 8 of 101
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30,2015
Amount
Total fund balance of governmental funds $ 14,796,214
Amounts reported for governmental activities in the
Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the governmental funds.
Capital assets not being depreciated:
Land 11,947,895
Construction in progress 1,130,645
13,078,540
Governmental capital assets being depreciated:
Building,equipment and vehicles 35,577,646
Less accumulated depreciation (17,743,113)
17,834,533
Deferred outflows and deferred inflows related to pensions are applied to
future periods and,therefore,are not reported in the governmental funds.
Deferred outflows related to pensions 6,994,515
Deferred inflows related to pensions (9,076,388)
(2,081,873)
Long-term obligations are not due and payable in the current period
and therefore are not reported in the funds.
Net pension liability-FRS (4,935,293)
Net pension liability-HIS (2,155,823)
Net pension liability-FPT (7,555)
Net OPEB obligation (2,217,063)
Capital lease (79,503)
Note payable (460,000)
Compensated absences (1,965,499)
(11,820,736)
Elimination of interfund amounts:
Due to other funds (3,445,424)
Due from other funds 3,445,424
Total net position of governmental activities $ 31,806,678
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 9 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Nine Month Period ended September 30,2015
Total
General Impact Fee Impact Fee Inspection Fee Governmental
Fund Fund-NN Fund-BCI Fund-NN Funds
REVENUES
Ad Valorem taxes $ 4,013,065 $ - $ - $ - $ 4,013,065
Intergovernmental revenue: -
State firefighter supplement 32,803 - - - 32,803
Federal grants - - - - -
Charges for services:
Inspection fees and other 391,935 - - 744,996 1,136,931
Plan review fees - - - 689,288 689,288
Impact fees - 1,740,724 4,902 - 1,745,626
Miscellaneous:
Interest 67,998 369 20 450 68,837
Other 313,644 - 56 - 313,700
TOTAL REVENUES 4,819,445 1,741,093 4,978 1,434,734 8,000,250
EXPENDITURES
Current
Public safety
Personnel services 16,328,261 - - 1,376,981 17,705,242
Operating expenditures 2,824,567 26,109 4,978 55,165 2,910,819
Capital outlay 290,005 990,731 - - 1,280,736
Debt service:
Principal reduction 24,036 - - - 24,036
Interest and fiscal charges - 20,362 - - 20,362
TOTAL EXPENDITURES 19,466,869 1,037,202 4,978 1,432,146 21,941,195
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (14,647,424) 703,891 - 2,588 (13,940,945)
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets - - -
Transfers in 703,891 - - - 703,891
Transfers out - (703,891) - - (703,891)
TOTAL OTHER FINANCING SOURCES
AND USES 703,891 (703,891) - - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCING USES (13,943,533) - - 2,588 (13,940,945)
FUND BALANCE-Beginning of the year 28,730,451 - - 6,708 28,737,159
FUND BALANCE-End of the year $ 14,786,918 $ - $ - $ 9,296 $ 14,796,214
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 10 of 101
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES,AND CHANGES IN FUND BALANCE
OF GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Nine Month Period ended September 30,2015
Amount
Net change(revenues and other financing sources over(under)expenditures
and other financing uses)in fund balance-total governmental funds $ (13,940,945)
The decrease(change)in net position reported for governmental activities
in the Statement of Activities is different because:
Governmental funds report capital outlays as expenditures.
In the Statement of Activities,however,the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense. The loss on disposition of capital assets
decreases the net position.
Plus:expenditures for capital assets 1,280,736
Less:proceeds on disposition of capital assets -
Less: loss on disposition of capital assets (13,605)
Less:current year depreciation (1,145,952)
121,179
The issuance of debt is reported as a financing source in governmental
funds and thus contributes to the change in fund balance. In the
Statement of Net Position,however,issuing debt increases long-term
liabilities and does not affect the Statement of Activities.
Similarly,repayment of principal is an expenditure in the
governmental funds but reduces the liability in the Statement of
Net Position.
Borrowings(proceeds from issuance):
Less:capital lease -
Repayments(principal retirement):
Plus:capital lease 24,036
24,036
Some expenses reported in the Statement of Activities do not require the
use of current financial resources and therefore are not reported as
expenditures in the governmental funds.
Less:transfers in (703,891)
Plus:transfers out 703,891
(Increase)decrease in net pension liability-pension(FRS) (2,397,545)
(Increase)decrease in net pension liability-HIS (178,710)
(Increase)decrease in net pension liability-FPT (1,729,545)
Increase(decrease)in deferred outflows 6,184,827
(Increase)decrease in deferred inflows (3,201,709)
(Increase)decrease in Net OPEB obligation (575,655)
(Increase)decrease in compensated absences 81,277
(1,817,060)
Decrease in net assets of governmental activities $ (15,612,790)
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 11 of 101
STATEMENT OF FIDUCIARY NET
POSITION-FIDUCIARY FUND
September 30,2015
Firefighters'
Pension
Fund
ASSETS
Investments,at fair value:
Cash and cash equivalents $ 1,086,441
Mutual funds 8,423,468
Common stocks 22,017,150
U.S. Government securities 4,828,731
Corporate bonds 8,004,129
Real estate 5,207,416
49,567,335
Due from other governments-State 1,487,600
Due from District 522,460
Prepaid expenses 935
Due from securities sold 753,728
Accrued investment income 125,653
TOTAL ASSETS 52,457,711
LIABILITIES
Accounts payable 67,078
Due for securities purchased 858,184
TOTAL LIABILITIES 925,262
NET POSITION
Restriced for DROP benefits 208,135
Restricted for defined pension benefits 51,324,314
$ 51,532,449
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 12 of 101
STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION-FIDUCIARY FUND
Year Ended September 30,2015
Firefighters'
Pension
Fund
ADDITIONS
Contributions:
Employer $ 1,105,545
Plan members 283,205
Buybacks 48,804
State of Florida,insurance premiums 1,487,600
Total contributions 2,925,154
Investment income:
Net appreciation(depreciation) including realized gains/losses (1,823,764)
Interest and dividends 1,811,524
(12,240)
Less: investment expenses (272,540)
Net investment income(loss) (284,780)
Other income
TOTAL ADDITIONS 2,640,374
DEDUCTIONS
Refunds of contributions _
Benefits paid 199,951
Administrative expenses 97,545
TOTAL DEDUCTIONS 297,496
NET INCREASE IN NET POSITION 2,342,878
NET POSITION-BEGINNING 49,189,571
NET POSITION-ENDING $ 51,532,449
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 13 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
North Collier Fire Control and Rescue District(the "District") is an independent
special taxing district located in Collier County, Florida. On January 1, 2015, the
North Collier Fire Control and Rescue District was officially formed by merging the
North Naples Fire Control and Rescue District and the Big Corkscrew Island Fire
Control and Rescue District. On February 6, 2014, the two Districts entered into an
Interlocal Agreement to merge. Each Board adopted a resolution identifying their
intent to initiate the voluntary merger process pursuant to Florida Statute Chapter
189.074. The two Districts created a proposed Joint Merger Plan which was
adopted by both Boards and ultimately put before the voters of each District by
referendum. On November 4, 2014, voters from both districts approved the
referendum to merge the two districts into one. On June 10, 2015,the Governor
signed into legislation the official enabling act of the new District via Laws of Florida
(LOF), Chapter 2015-191. The intent of the merger is to ensure the best possible
emergency response times, operational efficiencies and ensure long term sustainability
of the combined District. There was no impairment of capital assets as the result of
the merger and no significant accounting adjustment other than to combine the assets,
liabilities and net position/fund balance at January 1, 2015 of both Districts. The
District has the general and special powers prescribed by Florida Statute Chapters
189, 191 and 633.15. The District is governed by an eight(8)member elected Board
of Commissioners. Commissioners serve on a staggered four(4)year term basis.
These financial statements reflect the initial nine month period of financial activity of
the North Collier Fire Control and Rescue District, which began January 1, 2015
and ended September 30, 2015.
The Board of Trustees of the North Collier Fire Control and Rescue District
Firefighters'Pension Plan elected to have the twelve months activity of the Plan
audited as of and for the twelve month period ended September 30, 2015. Therefore,
the Plan's financial statements included herein reflect twelve months of activity.
As of January 1, 2015, after restatement for GASB 68,the assets, liabilities, and net
position of the Big Corkscrew Island Fire Control and Rescue District in the amounts
of$8,849,629, $3,755,418 and$3,315,305, respectively, were merged with the
North Naples Fire Control and Rescue District to create the newly formed North
Collier Fire Control and Rescue District. The Districts will report as one District
going forward.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 14 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization,continued
The North Collier Fire Control and Rescue District provides fire control and
protection services, fire safety, inspections, code enforcement, fire hydrant
maintenance, firefighter training, and crash and fire rescue services as well as basic
and advanced life support services. In providing these services, the District operates
and maintains ten (10) stations and the related equipment and employs
approximately 190 full-time professional firefighters and administrative staff.
During the year ended September 30, 2009, the North Naples Fire Control and
Rescue District entered into a joint venture agreement with Florida SouthWestern
State College (FSW)for the operation of the North Collier Fire Training Center
(NCFTC)to educate and train students as State Certified Firefighters. The North
Collier Fire Control and Rescue District is now licensed to operate the NCFTC and
FSW is the program coordinator. The District provides the training room and training
facilities for the NCFTC. FSW, as program coordinator, is responsible for the
operations of the NCFTC including but not limited to the screening and enrolling of
students and for screening and engaging instructors. Therefore, the activities of the
NCFTC are not included in the District's basic financial statements.
Reporting Entity
The District adheres to Governmental Accounting Standards Board(GASB)
Statement Number 14, "Financial Reporting Entity," (GASB 14) as amended by
GASB Statement Number 39, "Determining Whether Certain Organizations Are
Component Units" (GASB 39)and GASB Statement Number 61, "The Financial
Reporting Omnibus- An Amendment of GASB Statements No. 14 and No. 34".
This Statement requires the basic financial statements of the District(the primary
government) to include its component units, if any. A component unit is a legally
separate organization for which the elected officials of the primary government are
financially accountable. Based on the criteria established in GASB 14, as amended,
there are no component units required to be included or included in the District's
basic financial statements.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 15 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Government-wide Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities)report information on all of the activities of the District and do
not emphasize fund types. These governmental activities comprise the primary
government. Fiduciary funds are properly not included in the Government-wide
financial statements. General governmental and intergovernmental revenues support
the governmental activities. The purpose of the government-wide financial statements
is to allow the user to be able to determine if the District is in a better or worse
financial position than the prior year. The effect of all interfund activity between
governmental funds has been removed from the government-wide financial
statements.
Government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the pension fund
financial statements. Under the accrual basis of accounting,revenues, expenses,
gains, losses, assets, and liabilities resulting from exchange and exchange-like
transactions are recognized when the exchange takes place. Revenues, expenses,
gains, losses, assets, and liabilities resulting from nonexchange transactions are
recognized in accordance with the requirements of GASB Statement Number 33,
"Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33).
Amounts paid to acquire capital assets are capitalized as assets in the
government-wide financial statements rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government-wide
financial statements rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government-wide financial statements rather than as
expenditures.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 16 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Government-wide Financial Statements,continued
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1)
charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function, and 2)grants and
contributions that are restricted to meeting the operational or capital improvements of
a particular function. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Program revenues are considered to be revenues generated by services performed
and/or by fees charged such as inspection fees, burn permits, and hydrant tests.
Fund Financial Statements
The District adheres to GASB Number 54, "Fund Balance Reporting and
Governmental Fund Type Definitions". Essentially, the implementation resulted in
adoption of a fund balance policy and reclassification of the components within fund
balance.
The accounts of the District are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities,
fund equity or net position, revenues, and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual
funds based upon the purpose for which they are to be spent and the means by
which spending activities are controlled.
Fund financial statements for the District's governmental funds are presented after the
government-wide financial statements. These statements display information about
major funds individually and nonmajor funds in aggregate for governmental funds.
The fiduciary statement includes financial information for the firefighters'pension fund.
The fiduciary fund represents assets held by the District in a custodial capacity for the
benefit of other individuals.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 17 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Governmental Funds
When both restricted and unrestricted resources are combined in a fund,
expenditures are considered to be paid first from restricted resources, as appropriate,
and then from unrestricted resources. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are considered to be available when they are
collected within the current period or soon thereafter to pay liabilities of the current
period.
The District's major funds are presented in separate columns on the governmental
fund financial statements. The definition of a major fund is one that meets certain
criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and
Management's Discussion and Analysis -for State and Local Governments" (GASB
34). The funds that do not meet the criteria of a major fund are considered
non-major funds and are combined into a single column on the governmental fund
financial statements.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported in separate columns on the fund financial statements.
In accordance with the District's enabling documents separate budgets are maintained
for the North Naples Service Delivery Area(NN) and the Big Corkscrew Island
Service Delivery Area(BCI). Separate budgets are required for each service
delivery area until such time as when one consistent millage rate is adopted for both
service delivery areas. As such, separate service delivery area budget vs. actual
comparison statements are included in the required supplementary information and a
combining schedule is included in the other information section as the District must
maintain and report a single general fund.
Fiduciary Fund
The pension trust fund accounts for the activities of the Firefighters'Pension Trust
(FPT)Fund, which accumulates resources for the pension benefit payments to
qualified firefighters.
The net position of this fund is not considered to be part of the net position of the
District and is not available to the District's creditors.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 18 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Measurement Focus and Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the basic financial statements. Basis of
accounting relates to the timing of the measurements made,regardless of the
measurement focus applied.
The government-wide and fiduciary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current
period and soon enough thereafter to pay liabilities of the current period. For this
purpose, the District considers tax revenues to be available if they are collected
within sixty days of the end of the current fiscal period.
Revenues susceptible to accrual are interest on investments, and intergovernmental
revenues. Interest on invested funds is recognized when earned. Intergovernmental
revenues that are reimbursements for specific purposes or projects are recognized
when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
principal and interest on long-term debt, if any, is recognized when due; and (2)
expenditures are generally not divided between years by the recording of prepaid
expenditures.
Separate financial statements are provided for governmental funds and the fiduciary
funds, even though the latter are excluded from the government-wide financial
statements.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 19 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Change in Accounting Principles
Effective September 30, 2015, the District adopted the provisions of Government
Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting
for Pensions" (Statement No. 68). The implementation required the District to report
its proportionate share of the actuarially determined net pension liability of defined
benefit plans in the statement of net position, in the District's financial statements.
The District participates in the FRS defined benefit pension plan and HIS defined
benefit plan administered by the Florida Department of Management Services,
Division of Retirement. The effects of implementing this Statement are discussed in
a subsequent note.
Non-current Government Assets/Liabilities
GASB 34 requires non-current governmental assets, such as land and buildings, and
non-current governmental liabilities, such as notes payable and capital leases, to be
reported in the governmental activities column in the government-wide Statement of
Net Position.
Major Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the District, except those required to be accounted for in another fund.
The Impact Fee Funds (the District has two (2) Impact Fee Funds)consist of fees
imposed and collected by Collier County based on new construction within each
service delivery area within the District. The fees are restricted and can only be used
for certain capital expenditures associated with growth within the District.
Non-Major Fund
The District reports the following non-major fund:
The Inspection Fee Fund is used by the District to account for the receipt and
expenditures of its Inspection Fee Program. Fees are charged for the inspection of
new building construction. The fees are collected by Collier County and are
remitted to the District.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 20 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Fiduciary Fund
The Fiduciary Fund is excluded from the government-wide financial statements
because the resources of those funds are not available to support the District's
programs. The only type of fiduciary fund the District maintains is a Firefighters'
Pension Fund, which accounts for retirement assets held by the Plan that are payable
to qualified firefighters upon retirement.
Budgetary Information
The District has elected to report budgetary comparisons of its major funds and its
non-major fund as required supplementary information (RSI).
Investments
The District adheres to the requirements of GASB Statement Number 31,
"Accounting and Financial Reporting for Certain Investments and for External
Investment Pools," (GASB 31)in which all investments are reported at fair value.
Investments, including restricted investments, consist of certificates of deposit, U.S.
Government securities, corporate debt and equity securities, and securities of
government agencies unconditionally guaranteed by the U.S. Government.
Capital Assets
Capital assets, which include land, construction in progress, buildings, equipment and
vehicles, are reported in the government-wide Statement of Net Position.
The District follows a capitalization policy which calls for capitalization of all capital
assets that have a cost or donated value of$1,000 or more and have a useful life in
excess of one year.
All capital assets are valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated capital assets are valued at their estimated
fair market value on the date donated. Public domain (infrastructure)capital assets
consisting of certain improvements other than building, including curbs, gutters and
drainage systems, are not capitalized, as the District generally does not acquire such
assets. No debt-related interest expense is capitalized as part of capital assets in
accordance with GASB 34.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 21 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Capital Assets,continued
Maintenance,repairs and minor renovations are not capitalized. The acquisition of
land and construction projects utilizing resources received from Federal and State
agencies are capitalized when the related expenditure is incurred.
Expenditures that materially increase values, change capacities or extend useful lives
are capitalized. Upon sale or retirement, the cost is eliminated from the respective
accounts.
Expenditures for capital assets are recorded in the fund statements as current
expenditures. However, such expenditures are not reflected as expenditures in the
government-wide statements,but rather are capitalized and depreciated.
Depreciable capital assets are depreciated using the straight-line method over the
following estimated useful lives:
Capital Asset Years
Buildings 15-30
Capital Assets acquired under Capital Lease 6
Office Equipment 3-30
Vehicles 3-10
Equipment and Machinery 3-15
Budgets and Budgetary Accounting
The District adopted separate annual budgets for each of the two (2) service delivery
areas within the District's General Fund.
The District adopted annual budgets for the Special Revenue Funds -Impact Fee
Fund -NN, Impact Fee Fund-BCI and the Inspection Fee Fund- NN.
No budget was adopted or required to be adopted for the Firefighters'Pension Trust
Fund.
The annual budgets reflected in the Statement of Revenues, Expenditures and
Changes in Fund Balance-Budget and Actual, as required by GASB 68, are the
annual budgets adopted for fiscal year ended September 30, 2015. However,
actual activity used to compare against the annual budgets is only for the nine month
period ended September 30, 2015.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 22 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Budgets and Budgetary Accounting,continued
The District follows these procedures in establishing budgetary data for the General
Fund,the Impact Fee Funds, and the Inspection Fee Fund:
1. During the summer of each year, the District Fire Chief submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
the upcoming October 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these basic financial statements, are as originally
adopted or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
Several budget amendments were approved by the Board of Commissioners during
the nine month period ended September 30, 2015. Budgeted revenues and
expenditures were increased as follows:
Amount
General fund -NN $ 1,253,608
General fund - BCI 155,736
Total General Fund $ 1,409,344
Impact fee fund -NN $ 1,986,115
Impact fee fund- BCI $ (75)
Inspection fee fund $ 542,816
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 23 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Impact Fees/Deferred Revenue
The District levies an impact fee on new construction within the District. The intent of
the fee is for growth within the District to pay for capital improvements needed due to
the growth. The fee is imposed and collected by Collier County and remitted to the
District which accounts for impact fees collected by service delivery areas. The fee is
refundable if not expended by the District within six (6) years from the date of
collection. The District, therefore, records this fee as restricted cash and as deferred
revenue until the date of expenditure, at which time it is recognized as unearned
revenue until the date of expenditure, at which time it is recognized as revenue and
charged to capital outlay in the fund financial statements and capital assets in the
government-wide financial statements.
Net Position
In government-wide financial statements net position is identified as restricted when
there are externally imposed constraints as to its use, such as through debt covenants,
by grantors, or by law.
Fund Balances
The governmental fund financial statements the District maintains include
nonspendable, restricted, assigned, and unassigned fund balances. Nonspendable
fund balances are those that cannot be spent because they are either(a)not in
spendable form or(b) legally or contractually required to be maintained intact.
Criteria include items that are not expected to be converted into cash, for example
prepaid expenses.
Restricted fund balances are those that are restricted by a third party. Restricted fund
balances can only be spent for the stipulated purposes.
The District's assigned fund balances are a result of official action of the District's
Board. The District's intent is to maintain a minimum assigned fund balance level of
three (3)months of budgeted total expenditures. The assigned fund balance includes
the District's operational and capital reserves as well as its disaster reserve. At
September 30, 2015, fund balance is also assigned for a variety of specific items by
District Board action. Any use of the assigned fund balance requires the District's
Board approval.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 24 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Due To/From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded
by funds affected in the period in which the transactions are executed.
Due From Other Governments
No allowance for losses on uncollectible accounts has been recorded since the
District considers all amounts to be fully collectible.
Indirect Costs
Expenses are allocated between service and delivery areas on the same line item
based upon a Board approved cost allocation plan. No costs are allocated between
line items.
Compensated Absences
The District's employees accumulate annual leave based on the number of years of
continuous service. Upon termination of employment, employees can receive
payment of accumulated annual leave if certain criteria are met. The costs of
accumulated annual leave benefits (compensated absences) are expended in the
respective operating funds when payments are made to employees. However, the
liability for all accrued vacation and personal leave benefits is recorded in the
government-wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because, at
present, it is not necessary in order to assure effective budgetary control or to
facilitate effective cash planning and control.
Management Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 25 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Management Estimates,continued
and the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
Interfund Transactions
The District considers interfund receivables (due from other funds) and interfund
payables (due to other funds)to be loan transactions to and from other funds to cover
temporary(three months or less) cash needs. Transactions that constitute
reimbursements to a fund for expenditures/expenses initially made from it that are
properly applicable to another fund are recorded as expenditures/expenses in the
reimbursing funds and as reduction of expenditures/expenses in the fund that is
reimbursed. Such amounts are eliminated in the Government-wide Financial
Statements.
Pensions
In the government-wide statement of net position, liabilities are recognized for the
District's proportionate share of each pension plan's net pension liability. For
purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the Firefighters'Pension Fund (FPF), the Florida
Retirement System (FRS) and the Health Insurance Subsidy(HIS)defined benefit
plan and additions to/deductions from fiduciary net position have been determined on
the same basis as they are reported by the Plans. For this purpose, benefit payments,
(including refunds of employees contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value for the
FPF.
The District's retirement plans and related amounts are described in a subsequent
note.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net 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 future
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 26 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Deferred Outflows/Inflows of Resources,continued
periods and so will not be recognized an as outflow of resources
(expense/expenditure) until then. The deferred amount on pensions reported in the
government-wide statement of net position. The deferred outflows of resources
related to pensions are discussed in a subsequent note.
In addition to liabilities, the statement of net 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 and so will not be recognized as an inflow of resources (revenue) until that
time. The deferred amount on pension is reported only in the government-wide
statement of net position. A deferred amount on pension results from the difference
in the expected and actual amounts of experience, earnings, and contributions. This
amount is deferred and amortized over the service life of all employees that are
provided with pensions through the pension plan except earnings which are amortized
over five to seven years.
Subsequent Events
Subsequent events have been evaluated through May 24, 2016, which is the date
the basic financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
Cash and cash equivalents of the primary government(exclusive of the Firefighters'
Pension Fund)were $10,267,851, of which $1,544,714 was restricted at September
30, 2015. Total cash and cash equivalents included cash on hand of$1,300 at
September 30, 2015.
Deposits
The District's deposit policy allows deposits to be held in demand deposit and money
market accounts and is consistent with Florida Statutes, Chapter 218.415(17). All
District depositories are institutions designated as qualified depositories by the State
Treasurer at September 30, 2015.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 27 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Deposits,continued
Deposits consist of the following at September 30, 2015:
District Carrying Bank
Amount Balance
Unrestricted
General Fund
Depository Accounts $ 5,141,552 $ 5,558,523
Money Market - 3,580,285 3,580,285
Total General Fund $ 8,721,837 $ 9,138,808
Restricted
General Fund
Depository Accounts $ - $ -
Special Revenue Funds
Impact Fee-NN
Depository Accounts 49,137 49,137
Impact Fee-BCI
Depository Accounts 997,449 997,449
Inspection Fee
Depository Accounts 498,128 498,128
Total Special Revenue Funds 1,544,714 1,544,714
Total Restricted Funds $ 1,544,714 $ 1,544,714
The District's deposits were entirely covered by federal depository insurance or by
collateral pursuant to the Public Depository Security Act(Florida Statute 280) of
the State of Florida. Bank balances approximate market value.
The District held no other types of deposits during the nine month period ended
September 30, 2015.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 28 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Restricted Cash and Equivalents
The following is a brief description of the restrictions on cash and cash equivalents:
The Impact Fee accounts are used to account for the deposit of impact fees received
by service delivery areas and are restricted for certain capital asset acquisition
associated with growth within the District. Impact fees are collected by Collier
County for the District pursuant to County ordinance and District resolution.
The Inspection Fee account is used to account for inspection fees collected for
performing new construction fire inspections within the District. Such revenue is
restricted for inspection service related costs.
NOTE C - INVESTMENTS
District- Investments
Investments of the District(primary government) (exclusive of the Firefighters'
Pension Fund) was $6,010,518 (market value) and$6,010,518 (bank balance) at
September 30, 2015 and consisted of certificates of deposit which were designated
as public funds with qualified public depositories, and were entirely collateralized
pursuant to the Public Depository Security Act(Florida Statute 280)of the State of
Florida.
Firefighters' Pension Plan- Investments
Investments held in the Firefighters'Pension Trust Fund totaled $49,567,335
(including$1,086,441 in cash and cash equivalents, $8,423,468 in mutual funds,
$22,017,150 in equity securities, $12,832,860 in fixed income securities, and
$5,207,416 in real estate) at September 30, 2015. Such investments are
administered in accordance with Firefighters' Pension Board policy. This policy
provides for investments in cash and cash equivalents, money markets, mutual funds,
equities, treasury notes, federal agency guaranteed securities, corporate bonds, notes
and/or equities and real estate.
The Firefighters'Pension Trust Fund accounts for resources held to fund the
respective firefighter employee pension benefits.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 29 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan- Investments,continued
The Firefighters'Pension Trust Fund investments were held by a financial and
investment institution and are subject to certain insurances up to limits specific to the
trustee/custodian institution and retirement trust funds. These assets are subject to
loss of principal.
Investment Authorization:
The Plan's investment policy is determined by the Plan's Board of Trustees. The
policy has been designed by the Board to conduct the operations of the Plan in a
manner so that the assets will provide the pension and other benefits provided under
applicable laws. As such, the policy is designed by the Board to maximize the Plan's
asset value, while assuming risk that is consistent with the Board's risk tolerance. The
Trustees are authorized to acquire and retain every kind of property (real,personal or
mixed) and every kind of investment specifically including, but not by way of
limitation, money markets, mutual funds,bonds, debentures, stocks (preferred or
common) and other corporate obligations. Investments are carried at fair value at
September 30, 2015. Interest and dividend revenues are recorded as earned.
Purchases and sales of investments are recorded on the trade-date basis.
Unrealized gains and losses are presented as net appreciation(depreciation) in fair
value of investments on the statement of changes in fiduciary net position along with
gains and losses realized on sales of investments.
Given the inherent nature of investments, it is reasonably possible that changes in the
value of those investments will occur in the near term and that such changes could
materially affect the amounts reported (loss of principal).
Investment in all equity securities shall be limited to those listed on a major U.S. stock
exchange and limited to no more than 80% (at market) of the Plan's total asset
value. The equity position in any one company shall not exceed 5% of the Plan's total
assets at market. Investments in stock of foreign companies shall be limited to 25%
of the value of the Plan's total assets at market.
The fixed income portfolio shall be compromised of securities with a quality rating of
investment grade or higher by a major rating service. Except for Treasury and
Agency obligations, the debt portion of the Fund shall contain no more than 10% of a
given issuer irrespective of the number of differing issues.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 30 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan- Investments,continued
Investment Authorization, continued:
The current target allocation at September 30, 2015, of these investments at market is as
follows:
Investment Long Term
Authorized Policy-Target Expected Real
Investments Allocation% Rate Return%
Fixed Income 20-40% 0%
Domestic Equities 35-55% 0%
International Equities 10-25% 0%
Real Estate 0-15% 0%
International Fixed Income 0-10% 0%
Cash and Cash Equivalents N/A 0%
Interest Rate Risk:
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to change in market interest rates. As a means of
limiting its exposure to interest rate risk, the Plan diversifies its investments by security
type and institution, and limits holdings in any one type of investment with any one
issuer with various durations of maturities.
Information about the sensitivity of the fair values of the Plan's fixed income
investments to market interest rate fluctuations is provided by the following table that
shows the distribution of the Plan's investment by maturity at September 30, 2015:
Investment Maturities(in years)
Investment Type Fair Value Less than 1 1 to 5 6 to 10 More than 10
Corporate bonds $ 8,004,129 $ 170,276 $ 4,082,913 $ 1,911,834 $ 1,839,106
Mutual funds 2,416,732 - 1,249,934 973,943 192,855
U.S.Agencies 3,489,935 - - - 3,489,935
U.S.Treasuries 1,338,796 - 549,573 - 789,223
$ 15,249,592 $ 170,276 $ 5,882,420 $ 2,885,777 $ 6,311,119
Credit Risk:
Credit risk is the risk that a security or a portfolio will lose some or all of its value due
to a real or perceived change in the ability of the issuer to repay its debt. The Plan's
investment policy utilizes portfolio diversification in an effort to mitigate this risk.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 31 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan-Investments,continued
The following table discloses credit rating by fixed income investment type at
September 30, 2015, if applicable:
Fair Percentage of
Value Portfolio
U.S.government guaranteed* $ 4,828,731 9.96 %
Quality rating of credit risk debt securities
Aaa $ 1,787,955 3.69 %
Aa 457,729 0.94
Aal 24,951 0.05
Aa2 572,392 1.18
Aa3 238,510 0.49
A 878,482 1.81
A 1 508,612 1.05
A2 1,026,235 2.12
A3 1,186,133 2.45
Baal 2,450,376 5.05
Baa2 944,853 1.95
Baa3 316,637 0.65
Bal 67,912 0.14
B 199,622 0.41
BBB 288,558 0.60
BBB 463,529 0.96
Unrated 3,837,106 7.91
Total credit risk debt securities $ 15,249,592 41.41 %
*Obligations of the U.S.government or obligations explicitly guaranteed by the U.S.
government are not considered to have credit risk and do not have purchase limitations.
Concentration of Credit Risk:
The investment policy of the Plan contains limitations on the amount that can be
invested in any one equity issuer as well as maximum portfolio allocation percentages.
There were no individual equity investments that represented 5% or more of Plan net
position at September 30, 2015. In addition, the Plan contains limitations on the
amount that can be invested in any one debt issuer, except for the debt securities
issued by the U.S. Government. There were no investments in non-U.S. Government
debt securities that represented 10% or more of Plan net position at September 30,
2015.
Custodial Credit Risk:
This is the risk that in the event of the failure of the counterparty, the plan will not be
able to recover the value of its investments or collateral securities that are in the
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 32 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan- Investments,continued
Custodial Credit Risk, continued:
possession of an outside party. This risk is generally measured by the assignment of a
rating by a nationally recognized statistical rating organization. Consistent with the
Plan's investment policy, the investments are held by Plan's custodial bank and
registered in the Plan's name.
Foreign Currency Risk:
This is the risk that fluctuations in currency exchange rate may affect transactions
conducted in currencies other than US Dollars and the carrying value of foreign
investments. The Plan's exposure to foreign currency risk is derived mainly from its
investments in international equity funds. The Plan owns shares in international
equity funds and does not own the individual securities. The investment policy limits
the foreign investments to no more than 25% of the Fund's investment balance in
equities and no more than 10% in fixed income. As of September 30, 2015, the
Plan's exposure to foreign currency risk related to foreign equity funds and bonds is
as follows:
Fair Percentage of
Value Portfolio
International equity funds and fixed income(bonds) $ 9,701,673 2
NOTE D - DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2015, are as follows:
Due from Due to
Fund Other Funds Other Funds
General Fund:
Impact Fee Fund-NN $ 1,390,193 $ 1,423,055
Impact Fee Fund-BCI - 3,291
Inspection Fee Fund 628,835 50
Total General Fund 2,019,028 1,426,396
Special Revenue Funds:
Impact Fee Fund-NN
General Fund 1,423,055 1,390,193
Impact Fee Fund-BCI
General Fund 3,291 -
Inspection Fee Fund
General Fund 50 628,835
Total Special Revenue Funds 1,426,396 2,019,028
Total $ 3,445,424 $ 3,445,424
Interfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at September 30, 2015.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 33 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE E - CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the nine month period
ended September 30, 2015:
Balance Balance
January 1 Increases/ Decreases/ Adjustments/ September 30
North Naples Service Area(NN) 2015 Additions Retirements Reclassifications 2015
Capital Assets Not
Being Depreciated:
Land $ 11,182,814 $ - $ - $ - $11,182,814
Construction in progress 5,166,857 - - (5,045,501) 121,356
Total Capital Assets Not
Being Depreciated 16,349,671 - - (5,045,501) 11,304,170
Capital Assets
Being Depreciated:
Assets held under capital lease 160,240 - - - 160,240
Buildings 12,605,262 714,548 - 5,045,501 18,365,311
Office equipment 689,428 338,473 (12,502) - 1,015,399
Vehicles 8,427,643 125,834 - - 8,553,477
Equipment&machinery 3,589,321 76.491 (28,556) - 3,637,256
Total Capital Assets
Being Depreciated 25,471,894 1,255,346 (41,058) 5,045,501 31,731,683
Less Accumulated
Depreciation:
Assets held under capital lease (44,512) (20,030) - - (64,542)
Buildings (5,455,685) (294,232) - - (5,749,917)
Office equipment (614,811) (32,797) 12,502 - (635,106)
Vehicles (6,224,889) (367,922) - - (6,592,811)
Equipment&machinery (2,294,088) (265,567) 14,951 - (2,544,704)
Total Accumulated Depreciation (14,633,985) (980,548) 27,453 - (15,587,080)
Total Capital Assets being
Depreciated,Net 10,837,909 274,798 (13,605) 5,045,501 16,144,603
Capital Assets,Net $ 27,187,580 $ 274,798 $ (13,605) $ - 27,448,773
Less: Capital Lease Payable (79,503)
Net investment in capital assets $27,369,270
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 34 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE E-CAPITAL ASSETS ACTIVITY,CONTINUED
The following is a summary of changes in capital assets activity for the nine month period
ended September 30, 2015:
Balance Balance
January 1 Increases/ Decreases/ Adjustments/ September 30
Big Corkscrew Service Area(BCI) 2015 Additions Retirements Reclassifications 2015
Capital Assets Not
Being Depreciated:
Land $ 765,081 $ - $ - $ - $ 765,081
Construction in progress 1,009,289 - - - 1,009,289
Total Capital Assets Not
Being Depreciated 1,774,370 - - - 1,774,370
Capital Assets
Being Depreciated:
Buildings 1,721,095 17,938 - 1,739,033
Equipment&furniture 653,715 6,202 - - 659,917
Vehicles 1,445,763 1,250 - - 1,447,013
Total Capital Assets
Being Depreciated 3,820,573 25,390 - - 3,845,963
Less Accumulated
Depreciation:
Buildings (605,407) (37,006) - - (642,413)
Equipment&furniture (495,248) (43,442) - - (538,690)
Vehicles (889,974) (84,956) - - (974,930)
Total Accumulated Depreciation (1,990,629) (165,404) - - (2,156,033)
Total Capital Assets being
Depreciated,Net 1,829,944 (140,014) - - 1,689,930
Capital Assets,Net $ 3,604,314 $ (140,014) $ - $ - 3,464,300
Less: Note Payable (460,000)
Net investment in capital assets $ 3,004,300
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 35 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE E- CAPITAL ASSETS ACTIVITY, CONTINUED
Depreciation expense was charged to the following functions during the nine
month period ended September 30, 2015:
Amount
General Government
Total Depreciation Expense $1,145,952
NOTE F- LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the nine month period
ended September 30,2015:
Balance Retirements Balance Amounts
January 1 And September 30 Due Within
2015 Additions Adjustments 2015 One Year
Net OPEB obligation $ 1,641,408 $ 575,655 $ - $ 2,217,063 $
Net Pension Liability-FRS* 2,537,748 2,397,545 - 4,935,293
Net Pension Liability-HIS* 1,977,113 178,710 - 2,155,823
Net Pension Liability-FPT* (1,721,990) 1,729,545 - 7,555 -
Capital Lease-NN 103,539 - (24,036) 79,503 32,315
Note Payable-BCI 460,000 - - 460,000 57,500
Compensated Absences 2,046,776 104,812 (186,089) 1,965,499 -
$7,044,594 $4,986,267 $ (210,125) $11,820,736 $ 89,815
*As restated-see prior period adjustment Note K.
The following is a summary of long-term obligations at September 30,2015:
Amount
Net OPEB obligation. Cumulative difference between annual
OPEB cost and District payments toward the cost of post
employment benefits other than pensions since GASB No.45
transition date of October 1, 2009. (Combined SDA) $2,217,063
Net pension obligation-FRS pension plan. This amount is
actuarially determined through calculation based upon the
audited financial statements of the Florida FRS Plan. 4,935,293
Net pension obligation-HIS plan. This amount is
actuarially determined through calculation based upon the
audited financial statements of the Florida FRS Plan. 2,155,823
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 36 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE F- LONG-TERM OBLIGATIONS, CONTINUED
Amount
Net pension obligation-Firefighters'Pension Trust(FPT)plan.
This amount is actuarially determined through calculation based
upon the audited financial statements of the FPT Plan. 7,555
$160,240 capital lease payable of a chest compression system to
financial institution over a 60 month period ending March 2018 in
equal payments of$2,671 at a zero stated interest rate. (NN) 79,503
$1,150,000 note payable to Suntrust Bank over a 20 year period
ending November 1,2024 in equal annual principal payments on
November 1 of$57,000 plus accrued interest at a rate of 3.75%.
The note is collateralized by Impact Fees. (BCI) 460,000
Non-current portion of compensated absences. Employees of the
District are entitled to paid vacation based on length of service and
job classification. (Combined SDA) 1,965,499
11,820,736
Less Current Portion (89,815)
Long-Term Portion $ 11,730,921
The annual debt service requirements at September 30, 2015, were as follows:
Capital Note
Years Ending Lease Payable Payable Total
September 30 Principal(1) Principal Principal
2016 $ 32,315 $ 57,500 $ 89,815
2017 32,315 57,500 89,815
2018 14,873 57,500 72,373
2019 - 57,500 57,500
2020 - 57,500 57,500
2021 -2023 - 172,500 172,500
$ 79,503 $ 460,000 539,503
Net OPEB obligation 2,217,063
Net Pension Liability-FRS 4,935,293
Net Pension Liability-HIS 2,155,823
Net Pension Liability-FPT 7,555
Compensated absences 1,965,499
Total long-term debt $ 11,820,736
(1)Debt service paid through General Fund
Interest expense for the nine month period ended September 30,2015,was $0.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 37 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS
The following three retirement plans have been established by the District:
Plan 1 -Florida Retirement System(FRS)
Plan 2 -Firefighters'Pension Trust Fund (Florida Statute 175)
Plan 3 -401(a)Plan
Employee participation in a specific plan is based on the respective employee's
original hire date.
General Information about the Florida Retirement System
The Florida Retirement System ("FRS") was created in Chapter 121, Florida
Statutes. The FRS was created to provide a defined benefit pension plan("Pension
Plan") for participating public employees. All District employees are participants in
the Statewide Florida Retirement System (FRS) under authority of Article X, Section
14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS
was amended in 1998 to add the Deferred Retirement Option Program under the
defined benefit plan and amended in 2000 to provide an integrated 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 separate 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 District 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 Florida Retirement System 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 two cost-sharing, multiple-employer defined benefit plans (Pension and
HIS 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 dated June 30, 2015, is
available from the Florida Department of Management Services'Web site
(www.dms.myflorida.com).
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 38 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
General Information about the Florida Retirement System,continued
The District's total FRS and HIS pension expense was$153,797 for the nine
month period ended September 30, 2015 and is recorded in the government-wide
financial statements. Total District actual FRS and HIS retirement contribution
expenditures were $761,542 for the nine month period ended September 30,
2015. The District contributed 100% of the required contributions.
FRS Pension Plan
Plan Description. The FRS Pension Plan ("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.
Senior Management Service Class (SMSC) -Members in senior management
level positions.
Special Risk Class -Members who are employed as certified firefighters and
meet the criteria to qualify for this class.
Elected Officials - Members who are elected by the voters within the District
boundaries.
Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable
service and employees enrolled in the Plan on or after July 1, 2011, vest at eight
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 those 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 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. Members of both Plans
(Pension and HIS)may include up to 4 years of credit for military service toward
creditable service. The 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 Plan provides retirement, disability, death benefits, and annual
cost of living adjustments to eligible participants.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 39 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS Pension Plan,continued
DROP, subject to provisions of Section 121.091, Florida Statutes,permits
employees eligible for normal retirement under the Plan to defer receipt of monthly
benefit payments while continuing employment with an FRS employer. An employee
may participate in DROP for a period not to exceed 60 months after electing to
participate. 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 Plan are computed on the basis of age,
and/or years of service, average final compensation, and credit service. 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 five highest fiscal years' earnings; for the members initially enrolled
on or after July 1, 2011, the average final compensation is the average of the eight
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 retirement
plan and/or the 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 of each year of service
credit earned:
Class,Initial Enrollment,and Retirement Age/Years of Service %Value
Regular Class and elected members initially enrolled before July 1,2011
Retirement up to age 62,or up to 30 years of service 1.60
Retirement at age 63 or with 31 years of service 1.63
Retirement at age 64 or with 32 years of service 1.65
Retirement at age 65 or with 33 or more years of service 1.68
Regular Class and elected members initially enrolled on or after July 1,2011
Retirement up to age 65 or up to 33 years of service 1.60
Retirement at age 66 or with 34 years of service 1.63
Retirement at age 67 or with 35 years of service 1.65
Retirement at age 68 or with 36 or more years of service 1.68
Special Risk Regular
Service from December 1, 1970 through September 30, 1974 2.00
Service on or after October 1, 1974 3.00
Senior Management Service Class 2.00
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 40 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS Pension Plan,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. 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. Contribution rates during the
year ended September 30, 2015 were as follows:
Percent of Gross Salary*
Class Employee Employer(1) Employer(3)
Florida Retirement System,Regular 3.00 7.37 7.26
Florida Retirement System,Senior Management Service 3.00 21.14 21.43
Florida Retirement System,Special Risk 3.00 19.82 22.04
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 12.28 12.88
Florida Retirement System,Reemployed Retiree (2) (2) N/A
Florida Retirement System,Elected Official 3.00 43.24 42.27
Notes:
(1) Employer rates include 1.26 percent for the postemployment health insurance subsidy.Also,
employer rates,other than for DROP participants,include 0.04 percent for administrative costs of
the Investment Plan. Rates for 7/1/14-6/30/15.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates,other than for DROP participants,include.04 percent for administrative costs for
the Investment Plan. Rates for 7/1/15-6/30/16.
* As defined by the Plan.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 41 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS Pension Plan,continued
Pension Liabilities,Pension Expense,and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the Pension Plan. At
September 30, 2015, the District reported an FRS pension liability of$4,935,293
for its proportionate share of the net pension liability. The net pension liability was
measured as of September 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 District's proportionate share of the net pension liability was based on the
District's 2014-15 fiscal year contributions relative to the total 2014-15 fiscal year
contributions of all participating members. At September 30, 2015, the District's
proportionate share was .038209683 percent, which was a decrease of.003382716
percent from its proportionate share measure as of September 30, 2014.
For the nine month period ended September 30, 2015, the District recognized
pension expense of$785. In addition, the District reported deferred outflows
of resources and deferred inflows of resources related to the pension from the
following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected
and actual experience $ 521,020 $ 117,050
Change of assumptions 327,572
Net difference between projected and
actual earnings on pension plan investments 1,738,347 2,916,812
Changes in proportion and differences between
District contributions and proportionate share
of contributions 550,940 2,148,564
District contributions subsequent to the
measurement date 241,790 -
Total $ 3,379,669 $ 5,182,426
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 42 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS Pension Plan,continued
The deferred outflows of resources related to the FRS pension, totaling$241,790,
resulting from District contributions subsequent to the measurement date, will be
recognized as a reduction on the net pension liability in the fiscal year ended
September 30, 2016. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the pension will be recognized in pension
expense over the remaining service period of 6.3 years as follows:
Fiscal Years Ending
September 30 Amount
2016 $ (458,027)
2017 (458,027)
2018 (458,027)
2019 (458,028)
2020 (163,411)
Thereafter (49,027)
Total $ (2,044,547)
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 percent
Real payroll growth 0.65 percent
Salary increases 3.25 percent, average, including inflation
Investment rate of return 7.65 percent, net of pension plan
investment expense, including inflation
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,
2013.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 43 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS Pension Plan,continued
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 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(1) Return Return Deviation
Cash 1.00% 3.2% 3.1% 1.7%
Fixed income 18.00% 4.8% 4.7% 4.7%
Global equity 53.00% 8.5% 7.2% 17.7%
Real estate(property) 10.00% 6.8% 6.2% 12.0%
Private equity 6.00% 11.9% 8.2% 30.0%
Strategic investments 12.00% 6.7% 6.1% 11.4%
Total 100.00%
Assumed inflation-Mean 2.60% 1.90%
(1)As outlined in the Plan's investment policy
Discount Rate. The discount rate used to measure the total pension liability
was 7.65 percent. The 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 discount rate for calculating the total pension liability is equal to the
long-term expected rate of return.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 44 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS Pension Plan,continued
Sensitivity of the District's Proportionate Share of the Net Pension Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net pension liability calculated using the discount rate of
7.65 percent, as well as what the District's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower(6.65 percent) or 1-percentage-point higher(8.65 percent) than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(6.65%) (7.65%) (8.65%)
District's proportionate share of
the net pension liability $ 12,788,460 $ 4,935,293 $ (1,599,832)
Pension Plan Fiduciary Net Position. Detailed information about pension plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Systems Comprehensive Annual Financial Report dated June 30,
2015.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2015, the District reported a
payable of$21,530 for the outstanding amount of contributions in the pension plan.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 45 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G - RETIREMENT PLANS,CONTINUED
HIS Plan
Plan Description.The HIS Plan ("HIS Plan")is a cost-sharing multiple-
employer defined benefit pension plan established under section 112.363, Florida
Statutes. 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
Division of Retirement within the Florida Department of Management Services.
Benefits Provided. For the nine month period ended September 30, 2015, eligible
retirees and beneficiaries received a monthly HIS payment equal to the number of
years of creditable service completed at the time of retirement multiplied by$5. The
payments are at least$30 but not more than$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 can 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. For the nine month
period ended September 30, 2015,the contribution rate ranged between 1.26
percent and 1.66 percent of payroll pursuant to Section 112.363, Florida Statutes.
The District contributed 100 percent of its statutorily required contributions for the
current and preceding three years. HIS Plan contributions are deposited in a separate
trust fund from which HIS 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 cancelled.
Pension Liabilities,Pension Expense,and Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the HIS Plan. At September
30, 2015, the District reported a HIS liability of$2,155,823 for its proportionate
share of the net HIS Plan's net pension liability. The net pension liability was
measured as of September 30, 2015, and the total pension liability was used to
calculate the net pension liability determined by an actuarial valuation as of July
1, 2015. The District's proportionate share of the net HIS liability was based on the
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 46 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan,continued
District's 2014-15 fiscal year contributions relative to the total 2014-15 fiscal year
contributions of all participating members. At September 30, 2015, the District's
proportionate share was .021138780 percent, which was a decrease of.000006262
percent from its proportionate share measured as of September 30, 2014.
For the fiscal year ended September 30, 2015, the District recognized HIS expense
of$153,012. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected
and actual experience $ - $ -
Change of assumptions 169,607
Net difference between projected and actual
earnings on HIS pension plan investments 1,167 -
Changes in proportion and differences between
District HIS contributions and proportionate
share of HIS contributions 269,910 309,491
District contributions subsequent to the
measurement date 26,707 -
Total $ 467,391 $ 309,491
The deferred outflows of resources related to HIS, totaling $26,707, resulting from
District contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the year ended September 30, 2016. Other
amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense over the
remaining service period of 7.2 years as follows:
Fiscal Years Ending
September 30 Amount
2016 $ 21,264
2017 21,264
2018 21,264
2019 21,263
2020 20,972
Thereafter 25,166
Total $ 131,193
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 47 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
HIS Plan,continued
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 percent
Real Payroll Growth 0.65 percent
Salary Increases 3.25 percent, average, including inflation
Municipal Bond Rate 3.80 percent
Mortality rates were based on the Generational RP-2000 with Projected Scale BB.
Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has
been completed for the Plan.
Discount Rate. The discount rate used to measure the total HIS liability was
3.80 percent. In general, the discount rate for calculating the total HIS 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 plan sponsor. The Bond Buyer General
Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal
bond index.
Sensitivity of the District's Proportionate Share of the Net HIS Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net HIS liability calculated using the discount rate of
3.80 percent, as well as what the District's proportionate share of the net HIS
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower(2.80 percent)or 1-percentage-point higher(4.80 percent)than the current
rate:
1% Current 1%
Decrease Discount Rate Increase
(2.80%) (3.80%) (4.80%)
District's proportionate share of
the net HIS liability $ 2,456,460 $ 2,155,823 $ 1,905,137
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 48 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
HIS Plan,continued
Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Comprehensive Annual Financial Report dated June 30, 2015.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2015, the District reported a
payable of$1,754 for the outstanding amount of contributions to the HIS plan.
FRS -Defined Contribution Pension Plan
The 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. District
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
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 49 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS -Defined Contribution Pension Plan,continued
are directed to individual member accounts, and the individual members allocate
contributions and account balances amount various approved investment choices.
Costs of administering plan, including FRS Financial Guidance Program, are funded
through an employer contribution of 0.04 percent of payroll and by forfeited benefits
of plan members. Allocations to the investment member's accounts during the
2014-15 fiscal year were as follows:
Percent of Gross Salary*
Class Employee Employer(1) Employer(3)
Florida Retirement System,Regular 3.00 7.37 7.26
Florida Retirement System,Senior Management Service 3.00 21.14 21.43
Florida Retirement System,Special Risk 3.00 19.82 22.04
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 12.28 12.88
Florida Retirement System,Reemployed Retiree (2) (2) N/A
Florida Retirement System,Elected Official 3.00 43.24 42.27
Notes:
(1) Employer rates include 1.26 percent for the postemployment health insurance subsidy.Also,
employer rates,other than for DROP participants,include 0.04 percent for administrative costs of
the Investment Plan. Rates for 7/1/14-6/30/15.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates,other than for DROP participants,include.04 percent for administrative costs for
the Investment Plan. Rates for 7/1/15-6/30/16.
* As defined by the Plan.
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. Nonvested 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 September 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 District.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 50 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
FRS -Defined Contribution Pension Plan,continued
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.
The District's Investment Plan pension expense totaled$379,879 for the nine month
period ended September 30, 2015.
Payables to the Investment Plan. At September 30, 2015, the District reported a
payable of$0 for the outstanding amount of contributions to the Plan.
Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund
The following brief description of the North Collier Fire Control and Rescue District
Firefighters' Pension Plan(originally known as the North Naples Firefighters'Pension
Plan) (the "Plan") is provided for general information purposes only. The Plan's name
changed effective January 1, 2015 with the District's merger. Participants should
refer to the plan agreement for a more complete description of the Plan. On
July 11, 1996, under the authority of Florida Statute 175 and Laws of Florida,
Chapter 95-338, the District's Board of Commissioners passed Resolutions 96-004
and 96-005, providing for the establishment and funding of a single employer defined
benefit retirement plan and trust for newly hired fire suppression personnel. The
resolutions establish that certified firefighters hired on or after January 1, 1996 are to
become participants in the District's Firefighters' Pension Trust(FPT) Fund. The
Plan is totally administered, including all investment management,by a third party
administrator and the Plan's appointed Pension Board.
Effective October 1, 2011, employee participants were required to contribute 3%
(similar to FRS)of compensation (an increase from .5% of compensation)per
Resolution 11-031.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 51 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G - RETIREMENT PLANS,CONTINUED
Plan 2 -Plan Description and Provisions - Firefighters' Pension Trust Funds
continued
During the nine month period ended September 30, 2015, the District adopted
Governmental Accounting Standards Board Statement No. 68 "Accounting and
Financial Reporting for Pensions". As such, the Plan's beginning net position was
restated and the net pension liability was recorded in the government-wide
financial statements.
During the year ended September 30, 2015, there were employee contributions in
the amount of$283,205.
During the nine months ended September 30, 2015, there were employee
contributions in the amount of$112,895 to the plan. During the three months ended
December 31, 2014 and years ended September 30, 2014 and 2013,there were
employee contributions in the amounts of$66,087, $263,115, and$252,053
respectively, to the plan. The employer contributed 100% of its required
contributions, as well as those required contributions of the participating firefighters
(0.5% pick-up).
The Plan provides for full-time firefighting personnel to become eligible to participate
in the Plan immediately upon hire. Under District resolution 96-005, the District
elected to pay the 0.5% (1% prior to December 9, 2004)employee required
contribution on behalf of the employee. Effective December 9, 2004, the employee
contribution was reduced to 0.5% (employee pick up). Effective July 1, 2001 (per
resolution 01-01), benefits under the Plan vest after six years of creditable service.
Employees who elect normal retirement at or after age 55 with 6 years of creditable
service, or 25 years of service regardless of age, are entitled to a retirement benefit.
Effective October 1, 2011, required employee contributions increased to 3% of
compensation. Employees may elect early retirement after 6 years of creditable
service with a reduction in benefit not to exceed 3% for each year before normal
retirement. The Plan also includes certain disability and death benefits.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 52 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund,
continued
Contributions- Contributions to the Plan are derived from three sources:
the plan's participants are required to contribute to the plan in the amount of 3% of
their covered wages and pursuant to resolution 11-031 the District has elected to
increase the affected employees' salary by 0.5% (employer pick-up), State funds
(fire [hazard] insurance premium tax per Florida Statute Chapter 175) and employer
(remaining amount necessary to meet actuarial requirement). For the period from
January 1, 1996 through September 30, 1996,no employer contributions were
required. Employer contributions were required beginning October 1, 1996. The
State contributions under Chapter 175 began in June 1997. This revenue is based on
property fire insurance premiums paid within the District and is applied up to an
approved "frozen" limit of$1,746,716. The District(employer) is required to fund
the difference each year between the total contributions from all other sources for the
year and the total cost for the year pursuant to the most recent actuarial valuation of
the Plan. The total cost for any year equals total normal cost plus the additional
amounts sufficient to amortize the unfunded past service liability over a 30 year period
commencing the first year of the Plan's inception.
Pursuant to the actuarial study dated October 1, 2013 for the year ended September
30, 2015, the District's contribution(District only)requirement was 13% of the
actuarially determined covered payroll. Actual District contributions to the Plan for
the nine months ended September 30, 2015 were$796,502. Actual District
contributions to the Plan for the year ended September 30, 2015, were $1,105,545.
The State contributions for the year ended September 30, 2015 were$1,487,600.
Employees contributed (3%) $283,205 to the Plan for the year ended September 30,
2015. At October 1, 2014, $51,532,449 the Plan's total net position was restricted
for retiree benefits.
Payables to the Pension Plan. At September 30, 2015, the District reported a
payable of$21,361 for the outstanding amount of contributions in the pension plan.
Pension Benefits -Effective July 1, 2001, employees with 6 or more years of
service are entitled to monthly pension benefits, beginning at the earlier of age 55 with
6 years of credited service or 25 years credited service regardless of age. Benefit is
equal to 3.53% of their average final compensation (AFC)times credited service
prior to October 1, 2010 plus 3% of average final compensation times credited
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 53 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund,
continued
service on and after October 1, 2010. AFC means the average of the highest five (5)
years within the last ten (10) years of service. Maximum benefit is 100% of AFC.
The plan permits early retirement at age 50 with 6 years of credited service.
Employees may elect to receive their pension benefits in the form of a 10 year certain
and life annuity. If employees terminate before rendering 6 years of credited service,
they forfeit the right to receive the portion of their accumulated plan benefits.
All retirement benefits are annually increased for cost of living at 3%.
Death and Disability Benefits -Upon the death of any vested member,
whether or not still in active employment, a survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age. The
benefit is equal to the vested pension benefit and is payable for 10 years. A spousal
and/or minor benefit is provided for line of duty death equal to a minimum of one
half of the members salary for life (spouse)or age 18 (child).
Employees who become totally disabled with at least 8 years of credited service
receive the greater of the accrued pension benefit or 25% of AFC, if non-service
incurred, or 42% of AFC, if active service incurred. Effective December 9, 2004,
the active service related benefit was increased to 65%.
Supplemental Benefits-Effective December 31, 2004, each service and
disability retiree and their joint pensioners or beneficiaries and vested terminated
members shall receive a supplemental payment to be used as a health insurance
subsidy payment. The amount shall be five dollars ($5) for each full year of credited
service for life. The maximum monthly supplement is one hundred fifty dollars ($150)
and the minimum thirty dollars ($30).
DROP-Effective December 12, 2013, Resolution 13-034 was adopted, which
established a Deferred Retirement Option Plan "DROP". An "eligible participant" of
the pension plan, which is defined as an individual currently on full-time work status,
may elect to participate in the DROP on the first day of the month coincident with or
next following either, attainment of age fifty-five (55) and the completion of ten (10)
years of credited service, or the completion of twenty-five (25) years of credited
service, which date shall constitute the "initial date of eligibility". An eligible
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 54 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
participant electing to participate in DROP must complete and execute such forms as
may be required by the District and supplied by the Board of Trustees not less than
thirty(30) days prior to entering the DROP. The forms shall include, but not limited
to, an irrevocable letter of resignation effective no later than the conclusion of the
maximum period of DROP participation. Election into the DROP is irrevocable
provided there shall be no minimum period of participation; however in the event of a
voluntary termination prior to the maximum period, any DROP participant termination
prior to such maximum DROP period shall submit a written notice at least thirty(30)
days prior to such early termination of DROP participation.
An eligible participant may elect to participate in the DROP only once. After
commencement of participation in DROP, a participant shall no longer earn, accrue or
purchase additional service credits towards retirement benefits or later enhancements
to the firefighters' pension plan.
Upon the effective date of an eligible participant's participation in DROP, all
contributions by and on behalf of the participant to the plan shall be discontinued.
For all plan purposes, service and vesting credits of an eligible participant electing
DROP shall be fixed as of the effective date of commencement of DROP
participation. Any services as a firefighter after entry into DROP shall not be used
for calculation or determination of benefits payable by the pension plan. The average
final compensation of a participant, as defined in this plan shall be determined as of the
effective date of commencement of DROP participation and other subsequent earning
shall not be used for calculation or determination of benefits payable by the pension
plan.
Income Recognition -Interest income is recorded on the accrual basis. Investments
are reported at market value. Short-term investments are reported at cost, which
approximates market value.
Actuarial Present Value of Accumulated Plan Benefits-Accumulated plan
benefits are those future periodic payments, including lump-sum distributions, that
are attributable under the Plan's provisions to the service employees have rendered.
Accumulated plan benefits include benefits expected to be paid to (a)retired or
terminated employees or their beneficiaries, (b)beneficiaries of employees who have
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 55 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund,
continued
died, and (c)present employees or their beneficiaries. Benefits under the Plan are
based on employees'age at entry to the Plan and are based upon the current starting
salary for firefighters at entry level. Benefits payable under all circumstances,
retirement, death, disability and termination of employment, are included, to the
extent they are deemed attributable to employee service rendered to the valuation
date.
The actuarial present value of accumulated plan benefits is determined by an actuary
and is the amount that results from applying actuarial assumptions to adjust the
accumulated plan benefits to reflect the time value of money(through discounts for
interest) and the probability of payment(by means of decrements such as for death,
disability, withdrawal, or retirement) between the valuation date and the expected
date of payment. The significant actuarial assumptions used in the valuations as of
October 1, 2013 were(a) life expectancy of participants - RP 2000(combined
healthy, sex distinct) Mortality Table was used, (b)retirement age assumptions (the
assumed average retirement age was 55), and (c) annual investment return of 7.5%
(net of fees). The actuarial valuation reflected assumed average rates of return of
8% (net of fees). The foregoing actuarial assumptions are based on the presumption
that the Plan will continue. If the Plan terminated, different actuarial assumptions and
other factors might be applicable in determining the actuarial present value of
accumulated plan benefits.
Payment of Benefits - Benefit payments to participants are recorded upon
distribution. The District contributed 100% of the required contributions. A summary
of certain Plan details and trend information is included below.
A copy of the Plan and Plan audit as of and for September 30, 2015 can be
obtained by writing to the District at 1885 Veterans Park Drive,Naples, Florida
34109-0492, or by calling(239) 597-3222.
The following is a summary of the Single Employer-Defined Benefits Plan(Florida
Statutes Chapter#175), including funding policies, contribution methods, benefit
provisions and trend information:
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 56 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions- Firefighters' Pension Trust Fund,
continued
Firefighters'Pension
Trust Fund-Plan 2
Year established and governing authority District Resolution 96-004(July 11, 1996)
Governing body Board of Trustees of Plan
Determination of contribution requirements: Actuarially determined
Employer(District) Amount required in excess of Member and
applicable State contributions needed in
order to pay current costs and amortize any
unfunded past service cost over 30 years
Plan members 3.0%of covered payroll
Funding of administrative costs: Employer
Period required to vest 6 years
Annual salary increase Graduated Scale based on Credited Service(see below)
Post retirement benefit increase Cost of living increase of 3%each year
Eligibility for distribution Earlier of 55 with 6 years of credited service or
(Normal retirement) 25 years credited service regardless of age
Provisions for:
Disability benefits Yes
Death benefits Yes
Early retirement Yes
Assumed inflation 3%
Actuarial assumption/method changes since
prior valuation:
Actuarial Cost Method Frozen Entry Age to Entry Age Normal
Net-of-Fees Investment Return 8.00%to 7.50%
Annual Salary Increase flat 6%per year to graduated scale(9%per year
for first 10 years&3%per year for 10+years)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 57 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund=
continued
Net Pension Liability of the Fund-The components of the net pension liability of
the District at September 30, 2015 were as follows:
Amount
Total pension liability $ 51,541,750
Plan fiduciary net position (51,534,195)
District's net pension liability $ 7,555
Plan fiduciary net position as a percentage of the
total pension liability 99.99%
The total pension liability was determined by an actuarial valuation as of September 30,
2015 using certain actuarial assumptions, the most significant of which were 7.5 percent
for the investment rate of return (net of fees), 3.0-9.0 percent for projected salary increases
and 3.0 percent for inflation.
Mortality rates were based on the RP-2000 Combined Healthy Mortality Table, Sex
Distinct. Disabled lives are set forward five(5) years.
The Plan's policy with regards to the allocation of invested assets is established and may be
amended by the Pension Board. Plan assets are managed on a total return basis with a
long-term objective of achieving and maintaining a fully funded status for the benefits
provided through the Plan. The investment policy was last amended in February 2014.
The following table summarizes the Board's adopted allocation policy and the long-term
expected real rates of return for each major asset class:
Long-Term
Target Actual Expected Real
Asset Class Allocation Allocation Rate of Return*
Domestic equities 45% 43% 7.50%
International equities 15% 13% 8.50%
Fixed income 25% 23% 2.50%
International fixed income 5% 8% 3.50%
Real estate 10% 11% 4.50%
Cash and cash equivalents minimal 2% not available
*annual arithmetic return 100% 100%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 58 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund,
continued
The long-term expected rate of return on Plan assets was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected
returns, net of Plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation.
Discount Rate. The discount rate used to measure the total pension liability was 7.5
percent. The projection of cash flows used to determine the discount rate assumed that
plan participant contributions will be made at the current contribution rate and that District
contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the participant rate. Based on those assumptions, the Plan's fiduciary
net position was projected to be available to make all projected future benefit payments of
current plan participants. Therefore, the long-term expected rate of return on Plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
Rate of Return Sensitivity. The sensitivity of the net pension liability to changes in the
discount rate was measured as follows. The net pension liability of the District was
calculated using the discount rate of 7.5 percent. It was also calculated using a discount
rate that was 1-percentage-point lower(6.5 percent) and 1-percentage-point higher
(8.5 percent) than the current rate:
1% Current 1%
Decrease Discount Rate Increase
6.5% 7.5% 8.5%
Net pension liability(asset) $ 8,330,949 $ 7,555 $ (6,809,847)
Deferred Inflows/Outflows of Resources Related to Pensions
On September 30, 2015, the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 59 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund,
continued
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ - $
Change of assumptions - 1,105,754
Net difference between projected and actual 2,478,717
earnings on plan investments 3,147,455
Contributions subsequent to the measurement date not available
$ 3,147,455 $ 3,584,471
The deferred outflows of resources related to the pension, resulting from District
contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the fiscal year ended September 30, 2016.
Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to the pension will be recognized in pension expense as follows:
Fiscal Years Ending
September 30 Amount
2016 $ -
2017 312,752
2018 312,751
2019 312,752
2020 416,965
Thereafter (1,792,236)
Total $ (437,016)
Memberships of the Plan consisted of the following at October 1, 2014:
Firefighters'Pension
Trust Fund-Plan 2
Active plan members 104
Inactive plan members or beneficiarties currently receiving benefits 7
Inactive plan members entitled to but not yet receiving benefits 7_
Total 118
Number of participating employers 1
Number of participating state agencies 1
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 60 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2-Plan Description and Provisions- Firefighters' Pension Trust Fund:
continued
The following is a schedule of changes in net pension liability for the fiscal year ended
September 30, 2015:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability(Asset)
Balances at September 30,2014 $ 47,467,581 $ 49,189,571 $ (1,721,990)
Changes for the fiscal year:
Service cost 2,800,358 - 2,800,358
Interest 4,119,495 - 4,119,495
Differences between expected and
actual experience (1,243,974) - (1,243,974)
Changes of assumptions (2,788,556) - (2,788,556)
Changes of benefit terms 1,337,993 - 1,337,993
Contributions-Employer - 1,107,133 (1,107,133)
Contributions-State - 1,487,600 (1,487,600)
Contributions-Employee - 283,371 (283,371)
Contributions-Buy Back 48,804 48,804
Net investment income - (284,780) 284,780
Benefit payments,including refunds
of employee contributions (199,951) (199,951) -
Administrative expense - (97,553) 97,553
Net changes 4,074,169 2,344,624 1,729,545
Balances at September 30,2015 $ 51,541,750 $ 51,534,195 $ 7,555
Annual Pension Cost,Net Pension Obligation and Reserves
Current year annual pension costs for the Firefighters' Pension Trust Fund are shown
in the trend information provided. The Firefighters'Pension Trust Fund had a net
unfunded actuarial accrued liability at October 1, 2015 of$7,555.
The Plan assets are legally reserved for the payment of the respective plan member
benefits within the Plan. There are no assets legally restricted for plan benefits other
than these assets within the Plan. The Firefighters'Pension Trust Fund held certain
investments at year end.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 61 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE G RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund,
continued
Trend Information
Firefighters'Pension Trust Fund
Total(1)
Required Actual Contributions Net
Annual District State State(2) Pension
Fiscal Pension Required Required Frozen Actual Percentage Obligation
Year Contribution Contribution Contribution Contribution Contribution Contributed (NPO)
2015 $ 2,594,733 $ 1,107,133 $ 1,487,600 $1,746,716 $2,594,733 100% -
2014 $ 2,896,024 $ 1,518,926 $ 1,377,098 $1,746,716 $2,896,024 104% -
2013 $ 3,386,733 $ 2,127,828 $ 1,314,064 $1,746,716 $3,441,892 102% -
2012 $ 3,283,811 $ 2,166,246 $ 1,214,214 $1,746,716 $3,380,454 103% -
2011 $ 3,473,598 $ 2,333,799 $ 1,139,799 $1,746,716 $3,626,125 104% -
2010 $ 3,190,997 $ 2,170,443 $ 1,020,554 $1,746,716 $3,200,901 100% -
2009 $ 2,796,158 $ 1,756,228 $ 1,039,931 $1,746,716 $3,079,738 110% -
2008 $ 2,211,933 $ 1,009,715 $ 1,485,798 $1,485,798 $2,495,513 113% -
2007 $ 2,132,248 $ 2,019,430 $ 1,390,449 $ 112,818 $2,132,248 100% -
2006 $ 1,178,959 $ 1,066,141 $ 733,516 $ 112,818 $ 1,178,959 100% -
(1) The District considers its annual pension cost to be its actuarially determined required
annual pension contribution including the employer and state contribution.
(2) The Plan's State frozen limit for 2015,2014,2013 and 2012 was$1,746,716.
Pension Trust Required Supplementary Information
Schedule of Funding Progress Firefighters'Pension Plan:
Unfunded
Actuarial Actuarial Actuarial UAAL as
Value of Accrued Accrued Annual a%of
Actuarial Assets** Liability(AAL) Liability Funded Covered Covered
Valuation (AVA) -Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) (b-a)/c
10/01/15 $51,534,195 $51,541,750 $ 7,555 100.0% $9,671,942 0.1%
10/01/14 $49,189,571 $47,467,581 $(1,721,990) 103.6% $8,770,495 -19.6%
10/01/13 $42,143,137 $41,366,768 $ (776,369) 101.9% $9,092,235 -8.5%
10/01/12 $33,983,491 $33,924,855 $ (58,636) 100.2% $8,254,150 -0.7%
10/01/11 $26,196,164 $26,153,965 $ (42,199) 100.2% $8,291,830 -0.5%
10/01/10 $22,990,534 $23,284,830 $ 294,296 98.7% $7,737,940 3.8%
10/01/09 $17,833,111 $18,108,267 $ 275,156 98.5% $7,522,834 3.7%
10/01/08 $16,719,426 $16,890,153 $ 170,727 99.0% $7,082,194 2.4%
10/01/07 $12,904,948 $12,884,785 $ (20,163) 100.2% $7,276,954 -0.3%
10/01/06 $ 8,572,161 $ 9,025,001 $ 452,840 95.0% $5,960,908 7.6%
** reflected by actuary as Plan Fiduciary Net Position
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 62 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2015
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund,
continued
Firefighters'Pension
Trust Fund
Valuation date 10/01/13
Actuarial cost method Frozen Entry Age
Amortization method Level dollar,closed
Mortality table RP2000 Combined Healthy
Remaining amortization period 27 years (as of 10/1/13)
Actuarial asset valuation method 5 Year Smoothed Market
Actuarial assumptions:
Investment rate 7.5% (net of fees)
Projected salary increase Graduated based on Service
(9% per year for first 10 years &
(3% per year for 10 or more years)
Inflation 3%
Post retirement cost of living
adjustment 3%
Plan 3 -Plan Description and Provisions -401(a)
The Board of Fire Commissioners established the 401(a)Plan for the general
employees and elected officials who are ineligible to participate in the Florida
Retirement System. The Plan was effective on January 1, 2013. At September 30,
2015, the Plan had four(4) active participants.
The Plan allows for employer contributions. Amounts contributed by the employer
correspond to the percentage of contributions by class, established for participants
of the Florida Retirement System. Employee contributions are prohibited.
Employer contributions are 100% vested after completion of one year of service. A
year of service is based on an employee completing at least 1,000 hours of service
during a plan year.
Total District contributions to the Plan for the nine months ended September 30, 2015
were$3,639.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 63 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE H - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB)
The District formally established two (2) OPEB Plans to provide its retirees the
opportunity to obtain insurance (health and life)benefits. The year ended September
30, 2010, was the District's transition year. As such, the District implemented GASB
No. 45 on a prospective basis. All retired full-time employees are eligible for OPEB
benefits if actively employed by the District immediately before retirement. As such,
active employees with at least twenty five (25) years of service as of September 30,
2010 were allowed to elect to remain in the Defined Benefit Plan or to enter the Post
Employment Health Plan (PEHP), a defined contribution plan. All retirees and Early
Retirement Incentive Program (ERIP)participants, who were eligible,remained in the
Defined Benefit Plan. All other active employees at that time, September 30, 2010,
as well as future employees entered the PEHP.
The benefits are provided both with and without contractual or labor agreements.
The benefits may require contribution from the retirees, depending on certain
specified criteria and, in particular, length of creditable employment. The District
finances the benefits on a pay-as-you-go basis and recognizes expenditures at the
time the premiums are due for both Plans.
As a result of the merger, five(5)employees originally from Big Corkscrew Island
Fire Control and Rescue District joined the Plan.
Defined Benefit Plan
Specifically, the Defined Benefit Plan provides that the District will pay a portion of
medical and dental premiums for retirees depending on their years of credited service
starting with the completion of fifteen(15) years of credited service. As such, the
District pays 50% of the employee's premium and 25% of the spouse's premium at
completion of 15 years of service progressing to 100% of the employee's premium
and 50% of the spouse's premium upon completion of 25 years of service. The
District also pays the premium associated with a$5,000 life insurance benefit.
During fiscal years 2009 and 2010, the District offered two (2) separate Early
Retirement Incentive Programs (ERIP)to a number of active employees. A portion
of the programs includes full payment of premiums associated with medical, dental,
vision and life insurance coverage, including dependent coverage for a period of 3
years. After the 3 year period ends, the ERIP participants receive the Defined
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 64 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Defined Benefit Plan,continued
Benefit Plan benefits they had been eligible for at termination. During the year ended
September 30, 2014, the District paid the final amounts due on the ERIP Plans.
Note that the projected premiums for the dental, and life benefits are assumed to
cover the entire cost of the program.
Post Employment Health Plan(PEHP)
The PEHP is a defined contribution plan administered by the District.
All employees who did not elect to remain in the Defined Benefit Plan, and all
future active employees are participants in the PEHP.
Participants in the PEHP have$7,000 deposited on their behalf into a trust account
on the 20th anniversary of their date of hire and on each subsequent anniversary.
Additionally, those participants who have over 20 years of credited service at their
date of retirement also receive a$30,000 deposit on their behalf at date of
separation. Effective October 1, 2012, the Plan was changed to limit District
contributions to$50,000 per employee.
The PEHP is designed to offer similar benefits to those offered under the Defined
Benefit Plan.
The District, as part of the PEHP, entered a group variable annuity contract. As
such, the PEHP Plan's asset custodian and third party administrator is the insurance
company through which the annuity is contracted.
General -Funding Policy
The District paid$174,326 for retiree's and ERIP participants'health care premiums
as part of the Defined Benefit Plan on a pay-as-you-go basis for the nine month
period ended September 30, 2015.
The District also contributed$119,000 to the PEHP Plan for the nine month
period ended September 30, 2015.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 65 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE H - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
General -Funding Policy, continued
No separate trust has been established for either Plan. No separate financial
statement is issued for either OPEB Plan. All required disclosures are presented
herein. The District obtained an actuarial valuation for its OPEB Plans to measure the
current year's subsidies and project these subsidies into the future, making an
allocation of that cost to different years. The following schedule of funding progress
presents multi-year trend information about whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
Schedule of Funding Progress-Defined Benefit Plan
Unfunded
Actuarial (2) Actuarial UAAL as a
(1) Value of Actuarial Accrued Annual Percentage of
Actuarial Assets Accrued Liability Funded Covered Covered
Valuation (AVA) Liability(AAL) (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) (b-a)/c
01/01/15 $ - $ 10,342,305 $10,342,305 0.0% $ 13,652,782 75.8%
10/01/13 $ - $ 3,477,741 $ 3,477,741 0.0% $ 328,225 1059.6%
10/01/12 $ - $ 3,343,982 $ 3,343,982 0.0% $ 1,057,211 316.3%
10/01/11 $ - $ 6,882,021 $ 6,882,021 0.0% $ 1,057,211 651.0%
(1)-Initial actuarial valuation dated 10/1/09(transition year)
(2)-The AAL reduction in 2012 was in part due to a change in certain actuarial assumptions but
substantially due to consideration given to the fact the District is funding the PEHP.
Schedule of Contributions from Employer-Three Year Trend-Defined Benefit Plan
Expected Percentage of
Year Annual Cash Annual OPEB Net OPEB
Ended OPEB Cost Payment Cost Obligation
09/30/15 $1,020,150 $ 358,162 35.1% $2,217,063
09/30/14 $ 508,598 $ 78,065 15.3% $ 1,555,292
09/30/13 $ 503,266 $ 78,335 15.6% $ 1,208,932
Note: Actuarial projection for the PEHP is N/A
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 66 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE H - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Annual OPEB Cost and Net OPEB Obligation
The annual OPEB cost is the amount that was expensed in the current year. Since the
District's Defined Benefit Plan is unfunded, the offset to that expense comes from subsidies
paid on behalf of the current retirees and their dependents for the current year. This offset
is called the expected cash payment. The cumulative difference between the annual OPEB
cost for the year and the expected cash payment is called the net OPEB obligation
(NOO). The net OPEB obligation for the North Naples Service Delivery Area and Big
Corkscrew Island Service Delivery Area as of September 30, 2015 is as follows:
Amount
Net OPEB obligation-NN $ 1,604,757
Net OPEB obligation-BCI 612,306
$ 2,217,063
The Net OPEB obligation is reflected as a liability in the Statement of Net Position. The
following table shows the components of the District's annual OPEB cost for the year and
the net OPEB obligation.
Nine month period ended September 30, 2015
Defined
Benefit
Plan PEHP
Annual required contribution(ARC) $ 912,070 $ 119,000
Adjustment to ARC (71,194) -
Plus interest on NOO 49,243 -
Annual OPEB cost 890,119 119,000
Annual Net contribution made (314,464) (119,000)
Expected cash payment 314,464 (119,000)
Yearly change in OPEB obligation 575,655
Net OPEB obligation-beginning of year 1,641,408
Net OPEB obligation-end of year $ 2,217,063 $ -
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 67 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future.
Examples include assumptions about future employment, mortality, and healthcare cost
trend. Amounts determined regarding the funding status of a plan and the annual required
contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive
plans (the plans as understood by the employer and plan members) and include the
types of benefits provided at the time of the valuation and the historical pattern of
sharing of benefit costs between the employer and plan members. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial valuation
of assets, consistent with the long-term perspective of the calculations.
In the October 1, 2012 actuarial valuation, the Projected Unit Credit Unit cost
method with linear pro-ration to assumed benefit commencement was used. The
actuarial assumptions included a 4.0 percent investment rate of return and an inflation
assumption of 3.0 percent with an annual salary scale of 6.0 percent. Since there
are no invested plan assets held in trust to finance the Defined Benefit Plan- OPEB
obligations, the investment return discount rate is the long-term expectation of
investment return on assets held in District funds pursuant to its investment policy.
The assumptions also included an annual healthcare cost trend based on a graded
schedule beginning with 8.0 percent annually down by 0.5 percent to an ultimate
rate of 4.5 percent in fiscal 2020. The unfunded actuarial accrued liability is being
amortized over a closed period of 30 years as a level dollar amount. The funding
method is the projected unit credit method as noted above.
NOTE I - RISK MANAGEMENT
During the nine months ended September 30, 2015, the District provided health
benefits as follows:
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 68 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE I - RISK MANAGEMENT, CONTINUED
The District continued the use of a high deductible health plan offered to employees and
retirees of the North Naples Service Delivery Area. The District does not offer vision
coverage to the employees of the North Naples Service Delivery Area. The District
also established a HSA plan for its employees of the North Collier Service Delivery
Area. The District contributes$5,000 for those eligible participants who have met
the family deductible and $3,000 for those eligible participants who have to meet the
the individual deductible to the HSA plan annually.
The District also continued the use of the health plan offered to the employees of the
Big Corkscrew Service Delivery Area. The District also established an HSA plan for
the employees of the Big Corkscrew Service Delivery Area. The District contributes
$1,500 per eligible participant to the plan.
Participants in both Service Delivery Areas may also elect to contribute to the
respective plan on a pre-tax basis. HSA amounts that are not utilized by the year end
are carried over and are the property of the participant per IRS regulation.
HSA contributions for the nine month period ended September 30, 2015 were as
follows:
Service Delivery Area Amount
North Naples $ 624,682
Big Corkscrew Island 33,750
Total $ 658,432
As of January 1, 2016, all District employees were offered health coverage, and the
related HSA contribution under the plan established for the North Naples Service
Delivery Area employees.
The District incurred$2,671,703 in claims, third party administration costs,premiums
and reinsurance premiums including HSA contributions and workers compensation
insurance during the nine month period ended September 30, 2015, for the
self-insurance and fully-funded insurance programs.
It is the policy of the District to purchase third party commercial insurance for other
remaining forms of potential risks to which it is exposed. The District's risk
management activities are reported in the General Fund. No accrual has been
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 69 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE I- RISK MANAGEMENT, CONTINUED
recorded for claims and incidents not reported to the insurer. The District had no
significant reductions in insurance coverage from the prior year. Reported claims
have not exceeded the insurance coverage for the year ended September 30, 2011
through September 30, 2015.
NOTE J- PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become
due and payable on November 1 of each year and are delinquent on April 1 of the
following year. Discounts on property taxes are allowed for payments made prior to
the April 1 delinquent date. Tax certificates are sold to the public for the full amount
of any unpaid taxes and must be sold not later than June 1 of each year. The billing,
collection, and related record keeping of all property taxes is performed for the
District by the Collier County Tax Collector. No accrual for the property tax levy
becoming due in November 2015 is included in the accompanying basic financial
statements, since such taxes are collected to finance expenditures of the subsequent
period.
Procedures for collecting delinquent taxes, including applicable tax certificate sales
and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is
approximately two years after taxes become delinquent and occurs only upon request
of a holder of a delinquent tax certificate. As of September 30, 2015, $200,502 was
recorded in the General Fund and was due from the Collier County Tax Collector to
the District for ad valorem taxes and excess fees, and interest.
Important dates in the property tax cycle are as follows:
Assessment roll certified July 1
Millage resolution approved No later than 93 days following
certification of assessment roll.
Taxes due and payable (Levy date) November/with various discount
provisions through March 31.
Property taxes payable- maximum
discount(4 percent) 30 days after levy date
Beginning of fiscal year for which
taxes have been levied October 1
Due date March 31
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 70 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE J- PROPERTY TAXES, CONTINUED
Important dates in the property tax cycle are as follows (continued):
Taxes become delinquent(lien date) April 1
Tax certificates sold by the Collier
County Tax Collector Prior to June 1
For the year ended September 30, 2015, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of$.95 per$1,000 (.95 mills)of the 2014
net taxable value of real property located within the North Naples Service Delivery
Area.
For the year ended September 30, 2015, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of$3.50 per$1,000 (3.5 mills)of the 2014
net taxable value of real property located within the Big Corkscrew Island Service
Delivery Area.
NOTE K- PRIOR PERIOD ADJUSTMENT
Restatement of Net Position
The beginning net position of the District was adjusted as follows:
Amount
Net Position, December 31, 2014 - North Naples $ 47,636,009
Merger of Big Corkscrew Island Fire
Control and Rescue District 7,413,098
Reclassification of Impact Fee Fund
Balance- BCI to deferred revenue (735,341)
GASB #68 Adjustment:
Net pension liability-FRS (NN) (4,882,279)
Net pension liability- HIS (NN) (1,335,121)
Net pension liability- FRS (BCI) (2,766,968)
Net pension liability- HIS (BCI) (595,484)
Net pension asset- 175 Plan(FPT) 1,721,990
(7,857,862)
Depreciation adjustment(NN) 963,564
Total Prior Period Adjustments (216,541)
Net Position, December 31, 2014, as restated $ 47,419,468
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 71 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE K- PRIOR PERIOD ADJUSTMENT, CONTINUED
GASB Statement No. 68 requires the District to recognize its proportionate
share of the net pension liabilities and related pension amounts of the
cost-sharing multiple-employer FRS and HIS defined benefit plans.
Restatement of Fund Balance- General Fund
Amount
North Naples fund balance, December 31, 2014 $ 24,341,944
Merger of Big Corkscrew Island Fire
Control and Rescue District 4,388,507
Fund balance, December 31, 2014, as restated $ 28,730,451
Restatement of Fund Balance-Impact Fee Fund,Big Corkscrew Service
Delivery Area
Amount
Fund balance, December 31, 2014 $ 735,341
Reclassification to unearned revenue (735,341)
Fund balance, December 31, 2014, as restated $ -
Fund balance was reclassified to unearned revenue for the cumulative
effect of impact fees received and unexpended as of December 31, 2014.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 72 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE L- FUND BALANCE/NET POSITION ALLOCATIONS
Fund Balance/Net Position were allocated for the following purposes at September
30, 2015:
NN BCI Total
Nonspendable-General Fund Amount Amount Amount
Nonspendable fund balance-General Fund prepaid expenses $ 243,476 $ - $ 243,476
NN BCI Total
Assigned fund balance-General Fund Amount Amount Amount
General Fund-2015-Expenses-Oct-Dec $ 6,500,000 $ 750,000 $ 7,250,000
General Fund-Minimum operating reserve per policy 2,600,000 500,000 3,100,000
General Fund-Health insurance claim reserve 579,973 50,000 629,973
General Fund-Protective gear 75,000 - 75,000
General Fund-Vehicle replacement 75,000 100,000 175,000
General Fund-Fire equipment 200,000 100,000 300,000
General Fund-Emergency reserve 1,270,774 505,508 1,776,282
General Fund-Fire apparatus 500,000 500,000 1,000,000
General Fund-Community outreach 3,500 - 3,500
General Fund-Radio replacement 21,718 - 21,718
General Fund-Station improvements&equipment 150,000 41,069 191,069
General Fund-Station#46 improvements 20,900 - 20,900
Total General Fund $ 11,996,865 $ 2,546,577 $ 14,543,442
NN BCI Total
Unassigned-General Fund Amount Amount Amount
General Fund $ - $ - $
Total
Restricted Fund Balance/Net Position-Inspection Fee Fund Amount
Inspection Fee Fund $ 9,296
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 73 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE M -IMPACT FEE FUND ACTIVITY,CONTINUED
During the nine month period ended September 30, 2015, the Impact Fee Fund had the
following activity:
NN BCI
Unearned revenue,January 1,2015 $ - $ 735,341
Impact fee receipts 1,740,724 331,870
Interest and other income 369 76
Operating fees-collection fees (26,109) (4,978)
Loan interest (20,362) -
Miscellaneous - -
Capital outlay (990,731) -
Transfers in* (703,891) -
Unearned revenue,September 30,2015 $ - $ 1,062,309
*included in due from other funds
NOTE N- COMMITMENTS AND CONTINGENCIES
The District is involved from time to time in certain routine litigation,the substance
of which either as liabilities or recoveries, would not materially affect the financial
position of the District. Although the final outcome of the lawsuits, assertions, and
claims or the exact amount of costs and/or potential recovery is not presently
determinable, in the opinion of the District's legal counsel,the resolution of these
matters will not have a materially adverse affect on the financial condition of the
District. As a general policy,the District plans to vigorously contest any such
matters.
On January 8, 2014, the District entered into an agreement for the construction of a
new fire station, Station#48. The project was completed during the nine month period
ended September 30,2015. The cost of this project was financed through the use of
impact fees and a short-term loan from the General Fund. The loan is to be repaid
including interest of 2% by the Impact Fee Fund. The loan,due to its short term
nature, is recorded as due to the General Fund.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 74 of 101
NOTES TO THE FINANCIAL STATEMENTS
September 30,2015
NOTE O •MERGER OF OPERATIONS
The following is a summary statement of net position by service delivery area as of
January 1, 2015 (the merger date):
North Naples Big Corkscrew
Service Service District
Delivery Area Delivery Area Totals
Assets:
Current assets $ 25,547,199 $ 5,245,315 $ 30,792,514
Capital assets,net 27,187,580 * 3,604,314 30,791,894
Other assets - - -
Total Assets 52,734,779 8,849,629 61,584,408
Deferred outflows of resources-pensions 509,195 * 300,493 * 809,688
Liabilities:
Current liabilities 1,222,849 914,309 2,137,158
Non-current liabilities 5,843,672 * 2,841,109 * 8,684,781
Total Liabilities 7,066,521 3,755,418 10,821,939
Deferred inflows of resources-pensions 3,795,280 * 2,079,399 * 5,874,679
Net Position:
Net investment in capital assets 27,084,042 * 3,144,314 30,228,356
Restricted 6,708 - * 6,708
Unrestricted 15,291,423 * 170,991 * 15,462,414
Total Net Position $ 42,382,173 $ 3,315,305 $ 45,697,478
*As restated from December 31,2014 audited balance. See Note K for prior period adjustments.
NOTE P-SUBSEQUENT EVENTS
In December 2015, the Board approved a capital lease in the amount of$2,400,000
for the purchase of three (3)new fire trucks and one (1) new ladder truck.
On February 22, 2016, the District received$999,491 from the Greater Naples Fire
Rescue District from the dissolution of the Fire Code Official's office and subsequent
sale of the building, which the District was a member. These funds will be designated
for fire prevention.
COMBINING FINANCIAL STATEMENTS
BY SERVICE DELIVERY AREAS
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 75 of 101
COMBINING BALANCE SHEET -GENERAL FUND-BY SERVICE
DELIVERY AREAS
September 30,2015
North Naples Big Corkscrew Total
Service Island Service General
Delivery Area Delivery Area Eliminations Fund
ASSETS
Cash and cash equivalents $ 5,927,625 $ 2,795,512 $ - $ 8,723,137
Restricted cash and cash equivalents - - - -
Investments 6,010,518 - - 6,010,518
Due from other governments 172,549 27,953 - 200,502
Due from other funds 2,062,137 - (43,109) 2,019,028
Other receivables 172,052 30,379 - 202,431
Prepaid expenses 243,476 - - 243,476
TOTAL ASSETS $ 14,588,357 $ 2,853,844 $ (43,109) $ 17,399,092
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $ 917,411 $ 260,867 $ - $ 1,178,278
Retainage payable - - - -
Due to other funds 1,423,105 46,400 (43,109) 1,426,396
Contract deposits 7,500 - - 7,500
Unearned revenue - - - _
TOTAL LIABILITIES 2,348,016 307,267 (43,109) 2,612,174
FUND BALANCE
Nonspendable 243,476 - - 243,476
Restricted - - - -
Assigned 11,996,865 2,546,577 - 14,543,442
Unassigned - - - -
TOTAL FUND BALANCE 12,240,341 2,546,577 - 14,786,918
TOTAL LIABILITIES AND
FUND BALANCE $ 14,588,357 $ 2,853,844 $ (43,109) $ 17,399,092
The accompanying notes are an integral part of this statement.
1
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 76 of 101
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE- GENERAL FUND -
BY SERVICE DELIVERY AREAS
Nine Month Period ended September 30,2015
General Fund
North Naples Big Corkscrew Total
Service Island Service General
Delivery Area Delivery Area Fund
REVENUES
Ad Valorem taxes $ 3,314,133 $ 698,932 $ 4,013,065
Intergovernmental revenue:
State firefighter supplement 32,803 - 32,803
Federal Grants - - -
Charges for services 375,532 16,403 391,935
Miscellaneous:
Interest 67,866 132 67,998
Other 172,543 141,101 313,644
TOTAL REVENUES 3,962,877 856,568 4,819,445
EXPENDITURES
Current
Public safety
Personnel services 14,056,601 2,271,660 16,328,261
Operating expenditures 2,423,119 401,448 2,824,567
Capital outlay 264,615 25,390 290,005
Debt service:
Principal reduction 24,036 - 24,036
Interest and fiscal charges - - -
Reserves - - -
TOTAL EXPENDITURES 16,768,371 2,698,498 19,466,869
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (12,805,494) (1,841,930) (14,647,424)
OTHER FINANCING SOURCES AND USES
Transfer in 703,891 - 703,891
Transfer out - - -
TOTAL OTHER FINANCING SOURCES
AND USES 703,891 - 703,891
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCING USES (12,101,603) (1,841,930) (13,943,533)
FUND BALANCE-Beginning 24,341,944 4,388,507 28,730,451
FUND BALANCE-Ending $ 12,240,341 $ 2,546,577 $ 14,786,918
The accompanying notes are an integral part of this statement.
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 77 of 101
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND -
SUMMARY STATEMENT -NN
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 21,867,901 $ 22,382,577 $ 3,314,133 $ (19,068,444)
Intergovernmental revenue:
State firefighter supplement - - 32,803 32,803
Federal Grants - - - -
Charges for services 587,444 471,068 375,532 (95,536)
Miscellaneous:
Interest 70,000 70,000 67,866 (2,134)
Other 238,017 239,812 172,543 (67,269)
Subtotal-revenues 22,763,362 23,163,457 3,962,877 (19,200,580)
Cash brought forward 12,559,119 13,412,632 - (13,412,632)
TOTAL REVENUES 35,322,481 36,576,089 3,962,877 (32,613,212)
EXPENDITURES
Current
Public safety
Personnel services 19,411,454 19,427,305 14,056,601 5,370,704
Operating expenditures 3,319,860 3,703,860 2,423,119 1,280,741
Capital outlay 1,068,500 993,891 264,615 729,276
Debt service:
Principal reduction 32,048 32,048 24,036 8,012
Interest and fiscal charges - - - -
Reserves 9,824,504 12,418,985 - 12,418,985
TOTAL EXPENDITURES 33,656,366 36,576,089 16,768,371 19,807,718
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 1,666,115 - (12,805,494) (12,805,494)
OTHER FINANCING SOURCES AND USES
Transfer in - - 703,891 703,891
Transfer out (1,666,115) - - -
TOTAL OTHER FINANCING SOURCES
AND USES (1,666,115) - 703,891 703,891
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - (12,101,603) $ (12,101,603)
FUND BALANCE-Beginning 24,341,944
FUND BALANCE-Ending $ 12,240,341
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 78 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
GENERAL FUND -DETAILED STATEMENT -NN
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 21,867,901 $ 22,382,577 $ 3,314,133 $ (19,068,444)
Intergovernmental revenue:
State firefighter supplement - - 32,803 32,803
Federal Grants - - - -
Charges for services 587,444 471,068 375,532 (95,536)
Miscellaneous:
Interest 70,000 70,000 67,866 (2,134)
Other 238,017 239,812 172,543 (67,269)
Subtotal-revenues 22,763,362 23,163,457 3,962,877 (19,200,580)
Cash brought forward 12,559,119 13,412,632 - (13,412,632)
TOTAL REVENUES 35,322,481 36,576,089 3,962,877 (32,613,212)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Firefighters&Admin. 11,813,826 11,578,054 8,684,082 2,893,972
Commissioners 30,000 30,000 22,500 7,500
Overtime 568,332 879,955 655,156 224,799
Vacation pay 25,000 64,000 35,398 28,602
Sick leave 511,000 511,000 358,507 152,493
Incentives and holiday pay 510,094 510,094 315,382 194,712
Payroll taxes
Social Security 1,037,286 1,037,286 795,669 241,617
Benefits
Retirement 1,913,504 1,664,504 1,100,393 564,111
Health insurance 2,216,807 2,366,807 1,057,521 1,309,286
Disability insurance 71,155 71,155 38,213 32,942
Unemployment 5,000 5,000 3,132 1,868
Workers compensation 396,450 396,450 134,072 262,378
Employee physicals 150,000 150,000 112,397 37,603
Post employment health plan 161,000 161,000 119,000 42,000
Health Savings Account Funding - - 624,682 (624,682)
Retirement recognition 2,000 2,000 497 1,503
Subtotal-Personnel services 19,411,454 19,427,305 14,056,601 5,370,704
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 79 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GENERAL FUND-DETAILED STATEMENT -NN(CONTINUED)
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Operating expenditures: Budget Budget Actual (Unfavorable)
Insurance 300,000 300,000 233,306 66,694
Uniforms 73,500 73,500 52,945 20,555 1
Communications 10,000 10,000 18,350 (8,350)
Telephone 174,342 229,342 162,775 66,567
Utilities 215,700 215,700 163,619 52,081
Maintenance
Vehicle 307,500 347,500 252,071 95,429
Equipment 46,500 46,500 18,511 27,989
Computer 276,050 276,050 144,357 131,693
Hydrant 23,500 23,500 11,910 11,590
Building 303,651 447,651 31 1,01 1 136,640
Supplies
Office 37,000 37,000 45,700 (8,700)
Protective gear 52,000 92,000 76,027 15,973
Station 32,000 32,000 32,265 (265)
Emergency medical 68,000 108,000 86,693 21,307
Hurricane/emergency - - - -
Equipment
Office 30,600 30,600 40,607 (10,007)
Fire 50,000 50,000 37,338 12,662
Shop 10,000 10,000 6,778 3,222
Warehouse/logistics 1,000 1,000 8,566 (7,566)
Professional and other fees
Legal and professional 196,000 196,000 163,934 32,066
Property appraiser fees 205,000 205,000 156,982 48,018
Tax collector fees 441,557 441,557 62,875 378,682
Accounting 40,000 90,000 90,707 (707)
Miscellaneous
Travel 18,400 18,400 18,515 (115)
Water/sewer fee St.44 5,000 5,000 - 5,000
Public information officer 3,000 3,000 2,757 243
Public education officer - - 7,616 (7,616)
Fuel and oil 244,000 244,000 121,345 122,655
Legal advertisements 5,500 5,500 9,366 (3,866)
Dues and subscriptions 8,210 8,210 2,755 5,455
CERT team 2,000 2,000 2,952 (952)
Dive team 6,950 6,950 1,200 5,750
Fire prevention 18,000 33,000 15,347 17,653
Training 88,500 88,500 47,838 40,662
Hazardous materials 8,100 8,100 407 7,693
Technical rescue 4,500 4,500 5,016 (516)
Boat team 3,800 3,800 3,347 453
K-9 search and rescue - - - -
Honor guard - - - -
OPS - - - -
Peer fitness - - - -
Miscellaneous 10,000 10,000 7,331 2,669
Operational Reserves
Contingency - - - -
Subtotal-Operating expenditures 3,319,860 3,703,860 2,423,119 1,280,741
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 80 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
GENERAL FUND-DETAILED STATEMENT -NN(CONTINUED)
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Capital outlay: Budget Budget Actual (Unfavorable)
Land - - - -
Station improvements 153,000 100,000 58,130 41,870
Fire&rescue equipment 31,000 16,000 - 16,000
Protective gear 70,000 45,000 41,552 3,448
Communication equipment 25,000 15,000 8,272 6,728
Medical equipment 18,000 18,000 - 18,000
Computers 44,000 44,000 - 44,000
Fire replacement equipment - - - _
Boat team 5,000 5,000 - 5,000
Vehicle purchase 244,500 244,500 122,343 122,157
Training equipment 3,000 3,000 - 3,000
Station equipment&computers - - 30,827 (30,827)
Logistics/warehouse - - - -
Hazardous materials equip. - - - -
Fire apparatus 475,000 503,391 3,491 499,900
Dive equipment - - - -
Fire prevention - - - -
Subtotal-Capital outlay 1,068,500 993,891 264,615 729,276
Debt service:
Principal reduction 32,048 32,048 24,036 8,012
Interest and fiscal charges - - - -
Subtotal-Debt service 32,048 32,048 24,036 8,012
Reserves:
Reserves 9,824,504 12,418,985 - 12,418,985
TOTAL EXPENDITURES 33,656,366 36,576,089 16,768,371 19,807,718
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 1,666,115 - (12,805,494) (12,805,494)
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets - - - -
Transfer out (1,666,115) - 703,891 703,891
TOTAL OTHER FINANCING SOURCES AND USES (1,666,115) - 703,891 703,891
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES $ - $ - (12,101,603) $ (12,101,603)
FUND BALANCE-Beginning 24,341,944
FUND BALANCE-Ending $ 12,240,341
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 81 of 101
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE -BUDGET AND ACTUAL -IMPACT FEE FUND-
SUMMARY STATEMENT -NN
Nine Month Period ended September 30,2015
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Fees:
Impact fees $ 1,400,000 $ 2,007,960 $ 1,740,724 $ (267,236)
Miscellaneous:
Interest 2,000 530 369 (161)
Other - - - -
Subtotal-revenues 1,402,000 2,008,490 1,741,093 (267,397)
Cash brought forward (486,279) 893,346 - (893,346)
TOTAL REVENUES 915,721 2,901,836 1,741,093 (1,160,743)
EXPENDITURES
Current
Public safety
Operating expenditures 21,000 31,000 26,109 4,891
Capital outlay 2,529,800 2,839,800 990,731 1,849,069
Debt service:
Principal - - - -
Interest 31,036 31,036 20,362 10,674
Reserves - - - -
TOTAL EXPENDITURES 2,581,836 2,901,836 1,037,202 1,864,634
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (1,666,115) - 703,891 703,891
OTHER FINANCING SOURCES
Transfers in/(out) 1,666,115 - (703,891) (703,891)
TOTAL OTHER FINANCING SOURCES
AND USES 1,666,115 - (703,891) (703,891)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - - $ -
FUND BALANCE-Beginning -
FUND BALANCE-Ending $ -
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 82 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
IMPACT FEE FUND-DETAILED STATEMENT-NN
Nine Month Period ended September 30,2015
Impact Fee Fund
Variance
Original Final Favorable
REVENUES Budget Budget Actual (Unfavorable)
Fees:
Impact fees $ 1,400,000 $ 2,007,960 $ 1,740,724 $ (267,236)
Miscellaneous:
Interest 2,000 530 369 (161)
Other - - - -
Subtotal-revenues 1,402,000 2,008,490 1,741,093 (267,397)
Cash brought forward (486,279) 893,346 - (893,346)
TOTAL REVENUES 915,721 2,901,836 1,741,093 (1,160,743)
EXPENDITURES
Equipment
Office - - - -
Miscellaneous:
Impact fee collection 21,000 31,000 26,109 4,891
Subtotal-Operating expenditures 21,000 31,000 26,109 4,891
Capital outlay:
Station#48 2,000,000 2,400,000 656,418 1,743,582
Emergency signal-station#42 360,000 - - -
Office&station equipment#42 - 400,000 307,646 92,354
Protective gear 19,800 19,800 21,677 (1,877)
Equipment 150,000 20,000 4,990 15,010
Subtotal-Capital outlay 2,529,800 2,839,800 990,731 1,849,069
Debt service:
Interest 31,036 31,036 20,362 10,674
Reserves: - - -
TOTAL EXPENDITURES 2,581,836 2,901,836 1,037,202 1,864,634
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (1,666,115) - 703,891 703,891
OTHER FINANCING SOURCES
Transfers in/(out) 1,666,115 - (703,891) (703,891)
TOTAL OTHER FINANCING SOURCES
AND USES 1,666,115 - (703,891) (703,891)
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ -
FUND BALANCE-Beginning -
FUND BALANCE-Ending $ -
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 83 of 101
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE-BUDGET AND ACTUAL- INSPECTION FEE FUND -
SUMMARY STATEMENT -NN
Nine Month Period ended September 30,2015
Inspection Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Charges for services
Inspection fees $ 670,000 $ 895,828 $ 744,996 $ (150,832)
Plan review fees 550,000 863,936 689,288 (174,648)
Miscellaneous:
Interest 1,000 554 450 (104)
Subtotal-revenues 1,221,000 1,760,318 1,434,734 (325,584)
Cash brought forward 5,572 9,070 - (9,070)
TOTAL REVENUES 1,226,572 1,769,388 1,434,734 (334,654)
EXPENDITURES
Current
Public safety
Personnel services 1,167,163 1,694,386 1,376,981 317,405
Operating expenditures 54,932 65,051 55,165 9,886
Capital outlay - - - -
Reserves 4,477 9,951 - 9,951
TOTAL EXPENDITURES 1,226,572 1,769,388 1,432,146 337,242
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES $ - $ - 2,588 $ 2,588
FUND BALANCE-Beginning 6,708
FUND BALANCE-Ending $ 9,296
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 84 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
INSPECTION FEE FUND-DETAILED STATEMENT-NN
Nine Month Period ended September 30,2015
Inspection Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Charges for services:
Inspection fees $ 670,000 $ 895,828 $ 744,996 $ (150,832)
Plan review fees 550,000 863,936 689,288 (174,648)
Miscellaneous:
Interest 1,000 554 450 (104)
Subtotal-revenues 1,221,000 1,760,318 1,434,734 (325,584)
Cash brought forward 5,572 9,070 - (9,070)
TOTAL REVENUES 1,226,572 1,769,388 1,434,734 (334,654)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Regular 859,373 1,083,209 858,217 224,992
Overtime 2,000 111,907 107,924 3,983
Sick leave 25,000 35,000 32,335 2,665
Vacation pay - - - -
Professional/Incentives and holiday pay 9,000 8,400 6,300 2,100
Payroll taxes
Social Security 47,971 94,745 46,201 48,544
Benefits
Retirement 54,879 141,110 146,837 (5,727)
Health insurance 144,595 165,190 128,092 37,098
Disability insurance 8,845 8,845 8,845 -
Employee physicals 500 - - -
Unemployment compensation - - - -
Workers compensation 15,000 45,980 42,230 3,750
Subtotal-Personnel services 1,167,163 1,694,386 1,376,981 317,405
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 85 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -
INSPECTION FEE FUND-DETAILED STATEMENT-NN(CONTINUED)
Nine Month Period ended September 30,2015
Inspection Fee Fund
Variance
Original Final Favorable
Operating expenditures: Budget Budget Actual (Unfavorable)
Uniforms 1,000 - - -
Telephone 1,000 - - -
Utilities 2,500 - - -
Rent 50,000 50,000 37,500 12,500
Maintenance
Contract labor -
- -
Hydrant -
- -
Supplies
Office 432 51 2,665 (2,614)
Miscellaneous
Employee physicals - - - -
Dues&subscriptions -
-
-
Fire prevention - 5,000 5,000 -
Training - 10,000 10,000 -
Miscellaneous - - - -
Subtotal-Operating expenditures 54,932 65,051 55,165 9,886
Capital outlay:
Office facility - - - -
Vehicles - - - -
Subtotal-Capital outlay - - - -
Debt service:
Principal reduction - - - -
Interest and fiscal charges - - -
Subtotal-Debt service - - - -
Reserves: 4,477 9,951 - 9,951
TOTAL EXPENDITURES 1,226,572 1,769,388 1,432,146 337,242
EXCESS OF REVENUES
OVER(UNDER) EXPENDITURES $ - $ - 2,588 $ 2,588
FUND BALANCE-Beginning 6,708
FUND BALANCE-Ending $ 9,296
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 86 of 101
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND-
SUMMARY STATEMENT -BCI
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 3,463,569 $ 3,545,870 $ 698,932 $ (2,846,938)
Intergovernmental revenue:
State firefighter supplement 8,500 8,500 - (8,500)
Federal Grants 62,000 62,000 - (62,000)
Charges for services 10,800 10,800 16,403 5,603
Miscellaneous:
Interest 3,250 3,250 132 (3,118)
Other 102,625 88,625 141,101 52,476
Subtotal-revenues 3,650,744 3,719,045 856,568 (2,862,477)
Cash brought forward 2,844,880 2,620,843 - (2,620,843)
TOTAL REVENUES 6,495,624 6,339,888 856,568 (5,483,320)
EXPENDITURES
Current
Public safety
Personnel services 3,444,570 3,062,953 2,271,660 791,293
Operating expenditures 514,388 594,388 401,448 192,940
Capital outlay 123,000 123,000 25,390 97,610
Debt service:
Principal reduction - - - -
Interest and fiscal charges - - - -
Reserves 2,413,666 2,559,547 - 2,559,547
TOTAL EXPENDITURES 6,495,624 6,339,888 2,698,498 3,641,390
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - - (1,841,930) (1,841,930)
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets - - - -
Transfer out - - - -
TOTAL OTHER FINANCING SOURCES
AND USES - - - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - (1,841,930) $ (1,841,930)
FUND BALANCE-Beginning 4,388,507
FUND BALANCE-Ending $ 2,546,577
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 87 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
GENERAL FUND-DETAILED STATEMENT-BCI
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 3,463,569 $ 3,545,870 $ 698,932 $ (2,846,938)
Intergovernmental revenue:
State firefighter supplement 8,500 8,500 - (8,500)
Federal Grants 62,000 62,000 - (62,000)
Charges for services 10,800 10,800 16,403 5,603
Miscellaneous:
Interest 3,250 3,250 132 (3,118)
Other 102,625 88,625 141,101 52,476
Subtotal-revenues 3,650,744 3,719,045 856,568 (2,862,477)
Cash brought forward 2,844,880 2,620,843 - (2,620,843)
TOTAL REVENUES 6,495,624 6,339,888 856,568 (5,483,320)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Firefighters&Admin. 2,039,849 1,753,232 1,360,259 392,973
Commissioners 18,000 18,000 13,000 5,000
Overtime 100,000 100,000 75,040 24,960
Vacation pay - - - -
Sick leave - - - -
Incentives and holiday pay 49,000 49,000 34,403 14,597
Payroll taxes
Social Security 168,824 168,824 125,076 43,748
Benefits
Retirement 413,466 343,466 310,814 32,652
Health insurance 523,856 523,856 297,266 226,590
Disability insurance - - -
Unemployment 30,675 5,675 - 5,675
Workers compensation 100,900 100,900 22,052 78,848
Employee physicals - - - -
Post employment health plan - - - -
Health Savings Account Funding - - 33,750 (33,750)
Retirement recognition - - -
Subtotal-Personnel services 3,444,570 3,062,953 2,271,660 791,293
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 88 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
GENERAL FUND-DETAILED STATEMENT-BCI(CONTINUED)
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Operating expenditures: Budget Budget Actual (Unfavorable)
Insurance 45,520 30,520 52,889 (22,369)
Uniforms 9,750 9,750 11,693 (1,943)
Communications 2,500 2,500 4,425 (1,925)
Telephone 26,000 26,000 13,782 12,218
Utilities 22,500 22,500 17,933 4,567
Volunteer services 2,500 2,500 - 2,500
Maintenance
Vehicle 34,500 79,500 57,144 22,356
Equipment 10,600 10,600 1,621 8,979
Computer 12,595 44,595 31,881 12,714
Hydrant - - - -
Building 30,600 30,600 20,650 9,950
Supplies
Office 8,500 8,500 8,450 50
Protective gear 25,975 25,975 16,791 9,184
Station 8,000 21,000 16,129 4,871
Emergency medical 8,100 8,100 9,341 (1,241)
Hurricane/emergency - - - -
Equipment
Office 7,000 7,000 - 7,000
Fire 21,750 11,750 3,892 7,858
Shop - - - -
Warehouse/logistics - - - -
Professional and other fees
Legal and professional 15,000 45,000 36,322 8,678
Property appraiser fees 33,000 33,000 22,377 10,623
Tax collector fees 74,558 74,558 13,373 61,185
Accounting 10,900 10,900 14,473 (3,573)
Miscellaneous
Travel 5,000 5,000 4,089 911
Water/sewer fee St.44 - - - -
Public information officer - - - -
Public education officer - - - -
Fuel and oil 42,000 42,000 27,508 14,492
Legal advertisements 4,000 4,000 2,069 1,931
Dues and subscriptions 7,150 7,150 279 6,871
CERT team - - - -
Dive team - - - -
Fire prevention 8,600 8,600 1,278 7,322
Training 31,760 16,760 10,565 6,195
Hazardous materials - - -
Technical rescue - - - -
Boat team - - - -
K-9 search and rescue - - - -
Honor guard - - - -
OPS - - - -
Peer fitness - - - -
Miscellaneous 6,030 6,030 2,494 3,536
Operational Reserves
Contingency - - - -
Subtotal-Operating expenditures 514,388 594,388 401,448 192,940
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 89 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
GENERAL FUND-DETAILED STATEMENT-BCI(CONTINUED)
Nine Month Period ended September 30,2015
General Fund
Variance
Original Final Favorable
Capital outlay: Budget Budget Actual (Unfavorable)
Land -
Station improvements 7,000 7,000 17,938 (10,938)
Fire&rescue equipment 8,000 14,202 6,202 8,000
Protective gear - _ - -
Communication equipment 62,000 51,206 - 51,206
Medical equipment - 4,592 - 4,592
Computers - - - -
Fire replacement equipment - - - -
Boat team - - - -
Vehicle purchase 46,000 46,000 1,250 44,750
Training equipment - - - -
Shop equipment - - - -
Logistics/warehouse - - - -
Hazardous materials equip. - - - -
Fire apparatus - - - -
Dive equipment - - - -
Fire prevention - - - -
Subtotal-Capital outlay 123,000 123,000 25,390 97,610
Debt service:
Principal reduction -
Interest and fiscal charges - - - -
Subtotal-Debt service - - - -
Reserves:
Reserves 2,413,666 2,559,547 - 2,559,547
TOTAL EXPENDITURES 6,495,624 6,339,888 2,698,498 3,641,390
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - - (1,841,930) (1,841,930)
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets - - - -
Transfer out - - - -
TOTAL OTHER FINANCING SOURCES AND USES - - - -
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES $ - $ - (1,841,930) $ (1,841,930)
FUND BALANCE-Beginning 4,388,507
FUND BALANCE-Ending $ 2,546,577
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 90 of 101
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE- BUDGET AND ACTUAL - IMPACT FEE FUND-
SUMMARY STATEMENT -BCI
Nine Month Period ended September 30,2015
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Fees:
Impact fees $ 237,025 $ 237,025 $ 4,902 $ (232,123)
Miscellaneous:
Interest 275 275 20 (255)
Other - - 56 56
Subtotal-revenues 237,300 237,300 4,978 (232,322)
Cash brought forward 700,000 699,925 - (699,925)
TOTAL REVENUES 937,300 937,225 4,978 (932,247)
EXPENDITURES
Current
Public safety
Operating expenditures 3,555 3,555 4,978 (1,423)
Capital outlay 5,000 5,000 - 5,000
Debt service:
Principal 57,500 57,500 - 57,500
Interest 31,000 31,000 - 31,000
Reserves 840,245 840,170 - 840,170
TOTAL EXPENDITURES 937,300 937,225 4,978 932,247
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - - - -
OTHER FINANCING SOURCES
Transfers in - - - -
TOTAL OTHER FINANCING SOURCES
AND USES - - - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - - $ -
FUND BALANCE-Beginning -
FUND BALANCE-Ending $ -
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 91 of 101
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
IMPACT FEE FUND-DETAILED STATEMENT-BCI
Nine Month Period ended September 30,2015
Impact Fee Fund
Variance
Original Final Favorable
REVENUES Budget Budget Actual (Unfavorable)
Fees:
Impact fees $ 237,025 $ 237,025 $ 4,902 $ (232,123)
Miscellaneous:
Interest 275 275 20 (255)
Other - - 56 56
Subtotal-revenues 237,300 237,300 4,978 (232,322)
Cash brought forward 700,000 699,925 - (699,925)
TOTAL REVENUES 937,300 937,225 4,978 (932,247)
EXPENDITURES
Equipment
Office - - - -
Miscellaneous:
Impact fee collection 3,555 3,555 4,978 (1,423)
Subtotal-Operating expenditures 3,555 3,555 4,978 (1,423)
Capital outlay:
Station#48 5,000 5,000 - 5,000
Emergency signal-station#42 - - - -
Protective gear - - - -
Equipment - - - -
Subtotal-Capital outlay 5,000 5,000 - 5,000
Debt service:
Principal 57,500 57,500 -
Interest 31,000 31,000 - 31,000
Subtotal-Debt services 88,500 88,500 - 31,000
Reserves: 840,245 840,170 - 840,170
TOTAL EXPENDITURES 937,300 937,225 4,978 874,747
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - - - -
OTHER FINANCING SOURCES
Transfers in - - - -
TOTAL OTHER FINANCING SOURCES
AND USES - - - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ -
FUND BALANCE-Beginning,as restated -
FUND BALANCE-Ending $ -
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 92 of 101
SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM PENSION
PLAN (1)
2015 2014
District's proportion of the net pension liability 0.038209683% 0.041592399%
District's proportionate share of the net pension liability $ 4,935,293 $ 2,537,748
District's covered-employee payroll $ 6,326,722 $ 6,293,887
District's proportionate share of the net pension liability as a
percentage of its covered-employee payroll 78.01% 40.32%
Plan fiduciary net position as a percentage of the
total pension liability 92.00% 96.09%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
FLORIDA RETIREMENT SYSTEM PENSION PLAN(1)
2015 2014
Contractually required contribution $ 967,270 $ 971,792
Contributions in relation to the contractually
required contribution 967,270 971,792
Contribution deficiency(excess) - -
District's covered-employee payroll $ 6,326,722 $ 6,293,887
Contributions as a percentage of covered-employee
payroll 15.29% 15.44%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled,
governments should present information for only those years for which information is available.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 93 of 101
SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY - HEALTH INSURANCE SUBSIDY (HIS)PENSION
PLAN (1)
2015 2014
District's proportion of the net pension liability 0.021138780% 0.021145042%
District's proportionate share of the net pension liability $ 2,155,823 $ 1,977,113
District's covered-employee payroll $ 6,326,722 $ 6,293,887
District's proportionate share of the net pension liability as a
percentage of its covered-employee payroll 34.07% 31.41%
Plan fiduciary net position as a percentage of the
total pension liability 0.50% 0.99%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
HEALTH INSURANCE SUBSIDY (HIS)PENSION PLAN(1)
2015 2014
Contractually required contribution $ 78,787 $ 65,973
Contributions in relation to the contractually
required contribution 78,787 65,973
Contribution deficiency(excess) - -
District's covered-employee payroll $ 6,326,722 $ 6,293,887
Contributions as a percentage of covered-employee
payroll 1.25% 1.05%
Notes: (1)The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10-year trend is compiled,
governments should present information for only those years for which information is available.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 94 of 101
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30,2015
Changes of Assumptions
Actuarial assumptions for both cost-sharing defined benefit plans are reviewed
annually by the Florida Retirement System Actuarial Assumptions Conference. The
FRS Pension Plan has a valuation performed annually. The HIS Program has a
valuation performed biennially that is updated for GASB reporting in the year a
valuation is not performed. The most recent experience study for the FRS Pension
Plan was completed in 2014 for the period July 1, 2008, through June 30, 2013.
Because the HIS Program is funded on a pay-as-you-go basis, no experience study
has been completed for that program. The actuarial assumptions that determined the
total pension liability for the HIS Program were based on certain results of the most
recent experience study for the FRS Pension Plan.
The total pension liability for each cost-sharing defined benefit plan was determined
using the individual entry age actuarial cost method. Inflation increases for both plans
is assumed at 2.60%. Payroll growth, including inflation, for both plans is assumed at
3.25%. Both the discount rate and the long-term expected rate of return used for
FRS Pension Plan investments is 7.65%. The 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 discount rate for calculating the total
pension liability is equal to the long-term expected rate of return.
Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond
rate of 3.80% was used to determine the total pension liability for the program(Bond
Buyer General Obligation 20-Bond Municipal Bond Index). Mortality assumptions
for both plans were based on the Generational RP-2000 with Projection Scale BB
tables.
Florida Retirement System Pension Plan
There were no changes in actuarial assumptions. As of June 30, 2015, the inflation
rate assumption remained at 2.6 percent, the real payroll growth assumption was
0.65 percent, and the overall payroll growth rate assumption remained at 3.25
percent. The long-term expected rate of return remained at 7.65 percent.
Health Insurance Subsidy Pension Plan
The municipal rate used to determine total pension liability decreases from 4.29
percent to 3.80 percent.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 95 of 101
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30,2015
Pension Expense and Deferred Outflows/Inflows of Resources
In accordance with GASB 68,paragraphs 54 and 71, changes in the net pension
liability are recognized in pension expense in the current measurement period, except
as indicated below. For each of the following, a portion is recognized in pension
expense in the current reporting period, and the balance is amortized as deferred
outflows or deferred inflows of resources using a systematic and rational method over
a closed period, as defined below:
• Differences between expected and actual experience with regard to economic
and demographic factors - amortized over the average expected remaining
service life of all employees that are provided with pensions through the
pension plan (active and inactive employees)
• Changes of assumptions or other inputs - amortized over the average
expected remaining service life of all employees that are provided with
pensions through the pension plan(active and inactive employees)
• Changes in proportion and differences between contributions and
proportionate share of contributions - amortized over the average expected
remaining service life of all employees that are provided with pensions through
the pension plan (active and inactive employees)
• Differences between expected and actual earnings on pension plan investments
- amortized over five years
Employer contributions to the pension plans from employers are not included in
collective pension expense. However, employee contributions are used to reduce
pension expense.
The average expected remaining service life of all employees provided with pensions
through the pension plans at June 30, 2015, was 6.3 years for FRS and 7.2 years
for HIS.
ADDiTZONAL ONOla S
TUSCANAffiliations
Florida Institute of Certified Public Accountants
Company, PA American Institute of Certified Public Accountants
PA
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 96 of 101
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples,Florida 34109-0492
We have audited, in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America, the basic financial
statements of the governmental activities and each major and non-major fund of North Collier
Fire Control and Rescue District(the "District") as of and for the nine month period ended
September 30, 2015, and the related notes to the financial statements which collectively comprise
the District's basic financial statements as listed in the table of contents and have issued our report
thereon dated May 24, 2016.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District's
internal control over financial reporting(internal control)to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements,but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly,we do not express an opinion on the effectiveness of the District's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic financial statements will not be prevented or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
INTEGRITY ,,, SERVICE ...,.,,,. EXPERIENCE
12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090•Fax: (239)333-2097
Page 97 of 101
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,as
defined previously. However, material weaknesses may exist that have not been identified.
We did, however, note a certain other matter,comment 2015-1 in our report to management
dated May 24, 2016.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether North Collier Fire Control and Rescue
District's financial statements are free of 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 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 internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District'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 District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
vU44€1/4/1, d'aPie44& /
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
May 24, 2016
USCAN Affiliations
1l Florida Institute of Certified Public Accountants
& Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants St Consultants Tax Division
Page 98 of 101
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
We have examined North Collier Fire Control and Rescue District's compliance with Section
218.415, Florida Statutes,regarding the investment of public funds during the nine month period
ended September 30, 2015. Management is responsible for North Collier Fire Control and
Rescue District's compliance with those requirements. Our responsibility is to express an opinion
on North Collier Fire Control and Rescue District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a test
basis, evidence about North Collier Fire Control and Rescue District's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on North Collier Fire Control and Rescue
District's compliance with specified requirements.
In our opinion,North Collier Fire Control and Rescue District complied, in all material respects,
with the aforementioned requirements for the nine month period ended September 30, 2015.
This report is intended solely for the information and use of the North Collier Fire Control and
Rescue District and the Auditor General, State of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
Yfikilemv 40,attil
TUSCAN& COMPANY, P.A.
Fort Myers, Florida
May 24, 2016
INTEGRITY SERVICE ,..,,..., EXPERIENCE
12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907• Phone: (239)333-2090 •Fax: (239)333-2097
y�yu cAN Affiliations
Florida Institute of Certified Public Accountants
& Coany, p� American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants&Consultants Tax Division
Page 99 of 101
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
We have audited the accompanying basic financial statements of North Collier Fire Control and
Rescue District(the "District") as of and for the nine month period ended September 30, 2015
and have issued our report thereon dated May 24,2016.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards,issued by the Comptroller General of the United States of America and Chapter
10.550,Rules of the Florida Auditor General. We have issued our Independent Auditor's Report
on Internal Control over Financial Reporting and Compliance and Other Matters based on an
audit of the financial statements performed in accordance with Government Auditing Standards
and Chapter 10.550,Rules of the Florida Auditor General. Disclosures in those reports,which
were dated May 24, 2016, should be considered in conjunction with this report to management.
Additionally,our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General,which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information,which is not included in the aforementioned
auditor's report:
• 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 prior year
report contained no financially significant comments.
• Section 10.554(1)(i)2., Rules of the Auditor General,requires that we address in the
management letter any recommendations to improve financial management. No such
recommendations were noted to improve financial management.
INTEGRITY .,.,,,,.. SERVICE ..,,.,,.. EXPERIENCE
12621 World Plaza Lane. Building 55 •Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239)333-2097
Page 100 of 101
• Section 10.554(1)(i)3., Rules of the Auditor General,requires that we address
violations or noncompliance with provisions of contracts or grant agreements, or
abuse, that have an effect on the financial statements that is less than material but more
than inconsequential. In connection with our audit, we did not have any such findings.
• Section 10.554(1)(i)4., Rule 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 the management letter,unless disclosed in the notes to
the financial statements. The District discloses this information in the notes to the
financial statements.
• Section 10.554(1)(i)5.a., Rules of the Auditor General,requires a statement be
included as to whether or not the local government entity 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 District
did not meet any of the conditions described in Section 218.503(1),Florida Statutes.
It should be noted the North Naples Fire Control and Rescue District and the Big
Cypress Corkscrew Island Fire Control and Rescue District merged into the North
Collier Fire Control and Rescue District on January 1, 2015.
• Section 10.554(1)(i)5.b.,Rules of the Auditor General,requires that we determine
whether the annual financial report for the District for the nine months 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 nine month period ended September 30, 2015. In connection with our
audit, we determined that these two reports were in agreement.
• Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7),Rules of the Auditor General,
we applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by management. It should be noted the North Naples
Fire Control and Rescue District and the Big Corkscrew Island Fire Control and
Rescue District merged into the North Collier Fire Control and Rescue District on
January 1, 2015.
• Pursuant to Section 10.554(1)(i)5.d.,Rules of the Auditor General,requires a statement
indicating a failure,if any, of a component unit Special District to provide financial
information necessary to a proper reporting of the component unit within the audited
financial statements of this entity(F.S. Section 218.39(3)(b)). There are no known
component special districts required to report within these financial statements.
Page 101 of 101
• Section 10.556(10)(a),Rules of the Auditor General, requires that the scope of our audit to
determine the entity's compliance with the provisions of Section 218.415, Florida Statutes,
regarding the investment of public funds. In connection with our audit, we determined that
the District complied with Section 218.415, Florida Statutes as reported in our
Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes
dated May 24, 2016, included herein.
PRIOR YEAR COMMENTS:
There were no financially significant prior year comments.
CURRENT PERIOD COMMENT:
2015-1 Fixed Asset Inventory Control Should Be Improved
T&Co performed a test of fixed assets inventory control. As such,we noted eight
(8)exceptions out of fifty(50) fixed assets tested, covering both service delivery areas,
including two (2) from the NN SDA and six(6) from the BCI SDA. Specifically,we
noted one(1) asset was improperly disposed of when it was determined that is was no
longer functioning. We noted four(4)assets did not have tag identification numbers,
and two (2) assets did not have tag identification numbers that matched the fixed asset
listing. One(1) asset could not be located.
Specifically, we recommend that fixed asset listing be kept current and accurate and that
all fixed assets be located at proper assigned station within reason. We also recommend
that all fixed assets be maintained on one fixed asset report for both service delivery areas.
Pursuant to Chapter 119, Florida Statutes,this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners, management,the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
1/4/..40.44, 4 41. d.
TUSCAN&COMPANY,P.A.
Fort Myers, Florida
May 24, 2016
vXiIBIT
Mp IN
17N IA 11
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSIONERS
Norman E. Feder,Chairman ■ Christopher L.Crossan,Vice Chairman ■ Margaret Hanson,Secretary-Treasurer
James Burke ■ Ramon E.Chao ■Richard Hoffman ■ J.Christopher Lombardo ■ John 0. McGowan
June 16, 2016
Auditor General's Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, FL 32399-1450
The first audit for the 9 month period of January 1 , 2015 through September 30, 2015
contains one audit comment:
"2015-1. Fixed Asset Inventory Control Should Be Improved"
The merger of two independent fire districts brought many financial and administrative
challenges the first year of the inception of the North Collier Fire Control and Rescue
District. Staff was aware prior to the audit that there might be some deficiencies in the
fixed asset control process and has been working to address the concerns identified in
the audit comment. The fixed assets are being consolidated into one depreciation
program and one centralized list. The logistics department is being reorganized to
provide for quarterly test checks of fixed assets as to physical location. We are
confident the issues identified in the audit comment will be resolved prior to the audit for
the fiscal year ending 9-30-16.
The Board of Fire Commissioners and management staff of the North Collier Fire
Control & Rescue District remains committed to maintain internal controls, and policy
and procedures to insure the financial stability of the District.
Sincerely,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
1885 Veterans Park Drive Naples, FL 34109■(239) 597-3222■ Fax(239)597-7082■ www.northcollierfire.com