Agenda 04/25/2017 Item #16J204/25/2017
EXECUTIVE SUMMARY
To provide the Board of County Commissioners the Clerk of the Circuit Court’s Internal
Audit Report 2017-6 Fee Payment Assistance Program: Guadalupe Center, Inc., issued on,
April 19, 2017.
OBJECTIVE: To provide the Board of County Commissioners (Board) the issued Audit Report
2017-6 Fee Payment Assistance Program: Guadalupe Center, Inc.
Internal Audit delivered the Audit Report to the Board on Wednesday, April 19, 2017. It is
available electronically on the Clerk of Courts website.
The Clerk’s website for published Internal Audit Reports, once they are no longer confidential:
https://www.collierclerk.com/finance/internal-audit/published-reports/
Internal Audits do not become public record until the Clerk’s office issues them to the Board.
GROWTH MANAGEMENT IMPACT: None
FISCAL IMPACT: None
RECOMMENDATION: That the Clerk’s Audit Report 2017-6 Fee Payment Assistance
Program: Guadalupe Center Inc. be entered into the record.
Prepared by: Michael Harder, Senior Internal Auditor
Office of the Clerk of the Circuit Court
ATTACHMENT(S)
1. 2017-6 Fee Payment Assistance Program: Guadalupe Center, Inc (PDF)
04/25/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.2
Doc ID: 3083
Item Summary: To provide the Board of County Commissioners the Clerk of the Circuit Court’s
Internal Audit Report 2017-6 Fee Payment Assistance Program: Guadalupe Center, Inc., issued on, April
19, 2017.
Meeting Date: 04/25/2017
Prepared by:
Title: Senior Internal Auditor – Clerk of the Circuit Court
Name: Michael Harder
04/19/2017 10:20 AM
Submitted by:
Title: Senior Staff Assistant – Clerk of the Circuit Court
Name: Jennifer Milum
04/19/2017 10:20 AM
Approved By:
Review:
Clerk of the Circuit Court Derek Johnssen Additional Reviewer Completed 04/19/2017 10:53 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 04/19/2017 10:59 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 04/19/2017 11:03 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/19/2017 2:13 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 04/19/2017 2:25 PM
Board of County Commissioners MaryJo Brock Meeting Pending 04/25/2017 9:00 AM
Internal Audit Department
Audit Report 2017-6
Fee Payment Assistance Program:
Guadalupe Center, Inc.
Dwight E. Brock
Clerk of the Circuit Court
3299 Tamiami Trail East
Suite #402
Naples, FL 34112-5746
www.collierclerk.com
Issued: April 19, 2017
1
Prepared by: Michael Harder, Senior Internal Auditor
Patrick Blaney, Senior Internal Auditor
Report Distribution: Board of County Commissioners
Leo Ochs, Jr., County Manager
Jeff Klatzkow, County Attorney
Nick Casalanguida, Deputy County Manager
Mark Isackson, Director, Corporate Financial and Management Services
Jace Kentner, Director, Business and Economic Development
Amy Patterson, Director, Capital Project Planning, Impact Fees and Program Mgt
Cc: Dwight E. Brock, Clerk of the Circuit Court
Crystal K. Kinzel, Chief Deputy Clerk
James D. Molenaar, Internal Audit Manager
Table of Contents
SUMMARY ...........................................................................................................................................2
OBJECTIVE ..........................................................................................................................................2
SCOPE ...................................................................................................................................................2
BACKGROUND ...................................................................................................................................2
MANAGEMENT RESPONSE ..............................................................................................................3
CONCLUSION ......................................................................................................................................3
The files and draft versions of audit reports are confidential and exempt from public records requests during an active audit under
Nicolai v. Baldwin (Aug. 28, 1998 DCA of FL, 5th District) and Section 119.0713, Florida Statutes. Workpapers supporting the
observations in this report become public record and will be made available upon request once the final audit report has been issued.
2
Internal Audit provided a draft of this report to the Office of Business and Economic Development for management
response on March 31, 2017. County management provided that response on April 4, 2017.
Summary
Internal Audit conducted a site visit to Guadalupe Center, Inc., to vouch five created jobs in compliance with the Fee
Payment Assistance Program. Pay rates of those jobs were annualized, averaged, and compared to ordinance
requirements.
Payroll data was compared to the personnel records of employees filling the five created jobs. The data consisted of
employees’ names, hire dates, job titles, pay rates, and legal residency. The procedures revealed no exceptions.
These tests validated that Guadalupe Center, Inc., had created and continued to retain five jobs paying more than 50%
of the County's private-sector average wage, and remains eligible to participate in the Fee Payment Assistance
Program.
Objective
The objectives of this engagement were to validate five jobs created by Guadalupe Center, and to verify that the wages
paid for those jobs exceeded ordinance requirements.
Scope
This engagement consisted of validating jobs created and their wages, including, but not limited to, the following:
Reviewing Collier County Ordinances 2003-61, 2004-24, 2004-45, 2005-30, 2006-36, 2008-25, and 2008-46;
Reviewing section 125.045, Florida Statutes;
Checking the Property Appraiser’s records of ownership and tax-exempt status;
Visiting Guadalupe Center and interviewing the Human Resources Manager;
Validating payroll records from Guadalupe Center, Inc.;
Tracing names, hire dates, job titles, and pay rates, to the personnel records of Guadalupe Center;
Reviewing I-9’s for legal residency;
Scheduling payroll data for all employees filling the created jobs; and
Annualizing, averaging, and comparing pay rates of the five jobs to Program requirements.
Internal Audit examined applicable payroll and personnel records for Guadalupe Center.
Background
The Fee Payment Assistance program was a performance-based Collier County initiative authorized in Board of
County Commissioners (BCC) Ordinance 2003-61, as amended. The program paid selected impact fees for eligible
development projects. Eligibility criteria included the creation of minimum numbers of new jobs at or above specific
wage levels. Ordinance 2003-61 states that the program’s purposes were to:
1) Provide a performance-based program offering financial relief for eligible targeted industry development or
expansion projects in Collier County to mitigate the effects of rising Impact Fee rates;
2) Provide for the economic well being of Collier County residents by providing high-wage employment
opportunities in Collier County;
3) Lessen the seasonal cycle of Collier County’s economy; and
4) Encourage investment opportunities for new or existing companies thus increasing and diversifying the
County’s tax base.
3
Ordinance 2003-61 originally terminated this program on October 1, 2008, but on September 9, 2008, the BCC
enacted Ordinance 2008-46, which extended the Fee Payment Assistance Program to October 1, 2013.
To be eligible, businesses had to apply to the County Manager prior to making the decision to locate or expand within
Collier County. The Fee Payment Assistance incentive award was calculated by multiplying the total capital
investment (land, building, equipment) of the expansion or relocation by the current millage rate, then multiplying by
either ten (projects located in areas outside the enterprise community) or 15 (projects located within the enterprise
community). This project used the multiplier 15 because it was located within the enterprise community. This award,
$73,998.79, equaled the amount of impact fees due for the project.
On January 25, 2005, the BCC approved the application of Guadalupe Center, Inc., to participate in the Fee Payment
Assistance Program. The County Manager executed the BCC approved Fee Payment Assistance Agreement with
Guadalupe Center on March 17, 2005. The legal description for the property, located at 509 Hope Circle, Immokalee,
was included in Exhibit A to the Agreement.
The Agreement required the creation and retention of five new jobs at “an average wage equal to or greater than 50%
of the County’s current private-sector average wage…” The Agreement also provided that the Fee Payment Assistance
Program would pay EMS, Correctional Facilities, Road, General Government Buildings, and Fire Protection impact
fees totaling $73,998.79.
Internal Audit observed the Business and Economic Development Office’s verification of jobs created in accordance
with Collier County’s Fee Payment Assistance Program in order to validate ongoing eligibility for participation. For
Guadalupe Center’s location, program criteria called for a minimum of five new jobs paying at least 50% ($15,947)
of the County's average private-sector wage, $30,994, in effect at the time of application. The business also had to
pay its property tax bill in full annually on or before its due date. However, Guadalupe Center is a Section 501(C)(3)
not-for-profit corporation that is exempt from property tax.
Management Response
“I have reviewed the submitted Audit Report #2017-Guadalupe Center, Inc. regarding Guadalupe Center’s
compliance with incentive criteria established by the Fee Payment Assistance Program with Collier County, approved
March 17, 2005. I concur with the audit observations and consider Guadalupe Center, Inc. in compliance with the
obligations within the Fee Payment Assistance Agreement.
Staff appreciates the professional and pragmatic approach exhibited by the Internal Audit Department for this
performance validation process.”
Conclusion
Guadalupe Center, Inc., continues to comply with the requirements of the Fee Payment Assistance Program; therefore,
there are no adverse observations to report.