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CAFR Year End 09-30-2016Comprehensive Annual Financial Report Collier County, Florida Year ended September 30, 2016 Cover photo courtesy of Raymond Milum, Jr. COMPREHENSIVE ANNUAL FINANCIAL REPORT  FOR FISCAL YEAR ENDED  SEPTEMBER 30, 2016  COLLIER COUNTY, FLORIDA  BOARD OF COUNTY COMMISSIONERS  DONNA FIALA, CHAIRMAN – DISTRICT 1  TIM NANCE, VICE‐CHAIRMAN – DISTRICT 5  GEORGIA A. HILLER, ESQ. – DISTRICT 2  TOM HENNING – DISTRICT 3  PENNY TAYLOR – DISTRICT 4  COUNTY MANAGER  LEO E. OCHS, Jr.  COUNTY ATTORNEY  JEFFREY A. KLATZKOW  CLERK OF THE CIRCUIT COURT AND COMPTROLLER  CHIEF FINANCIAL OFFICER  DWIGHT E. BROCK  CHIEF DEPUTY CLERK AND DIRECTOR OF FINANCE AND ACCOUNTING  CRYSTAL K. KINZEL  Prepared by the Office of the Clerk of the Circuit Court,  Finance and Accounting Department  COLLIER COUNTY, FLORIDA  COMPREHENSIVE ANNUAL FINANCIAL REPORT  YEAR ENDED SEPTEMBER 30, 2016  TABLE OF CONTENTS      INTRODUCTORY SECTION   Page  Transmittal Letter ..................................................................................................................................................................  i  Certificate of Achievement ................................................................................................................................................. vii  Organizational Chart ........................................................................................................................................................... viii    FINANCIAL SECTION    Independent Auditors’ Report .............................................................................................................................................  1    Management’s Discussion and Analysis (Unaudited) ........................................................................................................  4    Basic Financial Statements:  Statement of Net Position ............................................................................................................................................  16  Statement of Activities .................................................................................................................................................. 18  Balance Sheet – Governmental Funds .........................................................................................................................  20  Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..............................  21  Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................. 22  Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental   Funds to the Statement of Net Position .............................................................................................................. 23  General Fund ‐ Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual   (Budgetary Basis) .................................................................................................................................................  24  Bayshore Gateway Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in   Fund Balances – Budget and Actual (Budgetary Basis) ......................................................................................  27  Immokalee Community Redevelopment Agency ‐ Statement of Revenues, Expenditures and Changes in   Fund Balances – Budget and Actual (Budgetary Basis) ......................................................................................  28  Statement of Net Position – Proprietary Funds ............................................................................................................ 29  Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ...................................... 31  Statement of Cash Flows – Proprietary Funds .............................................................................................................. 32  Statement of Fiduciary Net Position – Agency Funds ................................................................................................... 34  Notes to the Financial Statements ................................................................................................................................ 35    Required Supplemental Information ................................................................................................................................ 81    Combining and Individual Fund Financial Statements and Other Supplemental Information:  Nonmajor Governmental Funds  Combining Balance Sheet  ................................................................................................................................................... 90  Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................................... 98  Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual (Non‐GAAP) .... 106    Nonmajor Enterprise Funds  Combining Statement of Net Position .............................................................................................................................  130  Combining Statement of Revenues, Expenses and Changes in Net Position .................................................................  131  Combining Statement of Cash Flows ................................................................................................................................ 132    Internal Service Funds  Combining Statement of Net Position .............................................................................................................................  134  Combining Statement of Revenues, Expenses and Changes Net Position .....................................................................  135  Combining Statement of Cash Flows ...............................................................................................................................  136    Fiduciary Funds  Combining Statement of Fiduciary Net Position .............................................................................................................  138  Combining Statement of Changes in Fiduciary Net Position ........................................................................................... 139  COLLIER COUNTY, FLORIDA  COMPREHENSIVE ANNUAL FINANCIAL REPORT  YEAR ENDED SEPTEMBER 30, 2016  TABLE OF CONTENTS ‐ CONTINUED       Component Units  Combining Statement of Net Position .............................................................................................................................. 143  Combining Statement of Activities ................................................................................................................................... 144    Other Supplemental Information  Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ...................................... 146    STATISTICAL SECTION (UNAUDITED)    Net Position by Component .............................................................................................................................................. 148  Change in Net Position .....................................................................................................................................................  149  Governmental Activities Tax Revenues by Source ........................................................................................................... 152  Fund Balances of Governmental Funds ...........................................................................................................................  153  Changes in Fund Balances of Governmental Funds ......................................................................................................... 154  Assessed Value and Estimated Actual Value of Taxable Property ..................................................................................  156  Property Tax Rates – All Direct and Overlapping Governments .....................................................................................  157  Principal Tax Payers County‐Wide ...................................................................................................................................  158  Property Tax Levies and Collections ................................................................................................................................  159  Ratios of Outstanding Debt by Type ................................................................................................................................  160  Legal Debt Margin Information ........................................................................................................................................  161  Direct, Overlapping and Underlapping Governmental Activities Debt ..........................................................................  161  Pledged‐Revenue Coverage .............................................................................................................................................  162  Demographic and Economic Statistics .............................................................................................................................  163  Principal Employers ..........................................................................................................................................................  164  Budgeted Full‐Time Equivalent County Employees by Function ....................................................................................  165  Operating Indicators by Function ....................................................................................................................................  166  Capital Asset Statistics by Function .................................................................................................................................  167    SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS    Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters   Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing   Standards ................................................................................................................................................................... 171  Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on   Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the   Auditor General of the State of Florida ..................................................................................................................... 173  Schedule of Expenditures of Federal Awards and State Financial Assistance ................................................................. 176  Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ........................................... 181  Schedule of Findings and Questioned Costs ..................................................................................................................... 182  Summary Schedule of Prior Audit Findings ...................................................................................................................... 187  Corrective Action Plan ....................................................................................................................................................... 188      THIS PAGE INTENTIONALLY LEFT BLANK  Phone- (239) 252-2646 Fax- (239) 252-2755 Website- www.collierclerk.com Email- collierclerk@collierclerk.com County of Collier CLERK OF THE CIRCUIT COURT COLLIER COUNTY COURTHOUSE   April 11, 2017      To the Citizens and  Members of the Board of County Commissioners,  Collier County, Florida:    It is with extreme pleasure that we present to you, the citizens of Collier County and members of  the Board of County Commissioners, the Comprehensive Annual Financial Report (CAFR) for the  fiscal year ended September 30, 2016.  Responsibility for the accuracy of the data and the  completeness and fairness of the presentation, including all disclosures, rests with the Board of  County Commissioners and County management.      The Clerk of the Circuit Court and Comptroller’s Finance and Accounting Department, as well as  County management, is responsible for establishing and maintaining internal controls to provide  reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from  unauthorized use or disposition, the reliability of financial records for preparing financial  statements and maintaining accountability of assets.  The concept of reasonable assurance  recognizes that the cost of a control should not exceed the benefits likely to be derived, and the  evaluation of costs and benefits requires estimates and judgments by management.      Chapter 218.39 of the Florida Statutes requires an independent certified public accountant’s  financial audit of counties in the State.  For the fiscal year ended September 30, 2016 the  independent auditor, CliftonLarsonAllen LLP, issued an unmodified opinion on the financial  statements.  Their report is included in the Financial Section of this report.  In addition to meeting  the requirements set forth in State statutes, the audit was also designed to meet the  requirements of the Government Auditing Standards, the Title 2 U.S. Code of Federal Regulations  (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements  for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental  Entity Audits.  Information relating to the Single Audits, including the schedule of expenditures  of federal awards and state financial assistance and the independent auditors’ report on  compliance and internal control over compliance with requirements applicable to each major  federal program and state project, are included in the Federal and State Single Audit Section of  this report.    Governmental accounting and auditing principles require that management provide a narrative  introduction, overview and analysis to accompany the basic financial statements in the form of  Dwight E. Brock - Clerk of Circuit Court 3315 TAMIAMI TRL E STE 102 NAPLES, FL 34112-5324 P.O. BOX 413044 NAPLES, FL 34101-3044 Clerk of Courts  Comptroller  Auditor  Custodian of County Funds ii Management’s Discussion and Analysis (MD&A).  This letter of transmittal is designed to  complement MD&A and the two should be read in concert.  Collier County’s MD&A can be found  in the Financial Section immediately following the independent auditors’ report.  PROFILE OF THE GOVERNMENT  Collier County is a Constitutional form of government and was established in 1923 under the  Constitution and the laws of the State of Florida.  The Board of County Commissioners is the  legislative body for Collier County and is made up of five residents elected by voters.  In addition  to the County Commissioners, voters elect the following five constitutional officers: the Clerk of  the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax  Collector.  The County provides its citizens with a wide range of services that include law enforcement,  emergency management, fire and EMS services, animal services, library, museum and cultural  services, parks and recreation operations, road maintenance and construction.  Additionally, the  County owns and operates a water and wastewater utility, a solid waste landfill and recycling  program, a landfill gas to energy facility, three airports and a transit system.    Budgets are prepared annually. Formal budgetary integration is employed as a management  control throughout the year.  The Board of County Commissioners conducts budget workshops  during June of each year.  The Board’s proposed budget is released by July 15, in accordance with  Florida Statutes.  The budgets of Constitutional Officers are presented to the appropriate  authorizing bodies according to state statute.  Public hearings are held in September to allow  taxpayer input and to adopt the final budget.    ECONOMIC CONDITION AND OUTLOOK  Collier County, the state’s largest county at 2,026 square miles, is on the southwest coast of  Florida, directly west of Miami.  With a 2016 population of 353,936 (a 6 percent increase over  the last ten years), Collier County has been considered to be one of the fastest growing counties  in the state over the last ten years.  The resident population includes Unincorporated County  (pop. 314,323) and three municipalities: the Cities of Naples (pop. 21,512), Marco Island (pop.  17,690) and Everglades (pop. 411).  The County’s economic base is concentrated in tourism,  agriculture, fishing, ranching and forestry with a growing services economy and an emerging  technology sector.  Gulf of Mexico beaches and the Everglades National Park are important  attractions to this area.    Taxable property market valuation for fiscal year 2016 totaled $70.1 billion, or a very high  $198,027 per capita.  The County’s millage for General Fund operations in fiscal year 2016  remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value.   Unemployment levels in recent years approximate, or are slightly below, the statewide average.   The 2016 annual County unemployment rate stood at 4.9%, while the statewide average is 5.0%.   Income levels are high, with a per capita personal income of $78,473.  iii LONG TERM FINANCIAL PLANNING  The County annually performs a three‐year projection of major ad valorem supported funds  (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to  developing annual budget policy. On an annual basis the County prepares and adopts a five‐year  Capital Improvement Element (CIE).  The CIE is a planning document that identifies public  facilities that will be required during the next five or more years.  The Capital Improvement  Element is the foundation of Collier County’s annual Capital Improvement Program (CIP).  The  total CIP projects planned for fiscal years 2017‐2021 is $764.6 million. Included in the County’s  current CIP for fiscal years 2017‐2021 are approximately $283.7 million in water and wastewater  projects, $281.6 million in transportation projects, $32.2 million in stormwater projects and  $35.6 million in government facilities projects.  In addition, parks and recreation projects of  approximately $44.8 million are planned, as well as $43.8 million for tourist development funded  projects, $19.9 million in solid waste projects, $10.1 million in library projects, $9.5 million in  public safety projects and miscellaneous projects totaling $3.4 million.  None of the fiscal year  2017 – 2021 Capital Improvement Program is currently planned to be funded by bond or loan  proceeds.  RELEVANT FINANCIAL POLICIES  Relevant financial policies include the appropriation of carryforward as revenue in the following  year, maintaining a recommended General Fund unassigned fund balance of between 8% and  16% of actual expenditures and net operating transfers, the assessment of impact fees at such  levels as allowed by law and supported by studies, and the earmarking of gas taxes for payment  of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds.    Debt administration policies include the limitation of the debt repayment period to the useful  life of the underlying assets and the establishment of a 5% benchmark for net present value  savings generated by refinancing.  The Collier County Debt Management Policy provides that a  smaller net present value savings may be considered, but only on a case‐by‐case basis.  In  addition, the debt policy establishes a maximum ratio of total general governmental debt service  to bondable revenues from current sources of 13%.  Consistent with Collier County’s Debt Management Policy, outstanding debt is continually  monitored in relation to existing conditions in the debt market.  When sufficient cost savings can  be realized debt will be refinanced.  During fiscal year 2016, the County Water and Sewer District  refunded its remaining Series 2006 Water and Sewer Revenue Bonds.  This refinancing achieved  a net present value savings of over 5% and is further described in Note 6 to the financial  statements.  The Clerk’s Finance and Accounting Department monitors the daily cash needs of the County and  invests the County’s portfolio in accordance with the Collier County Investment Policy.  The  primary objective of the investment policy is the preservation of capital and the protection of  investment principal.  Authorized investments include certificates of deposit, the Local  Government Funds Surplus Trust Fund, U.S. treasury securities, U.S. agency securities,  commercial paper and bankers’ acceptances.  The weighted average maturity of the total  managed portfolio, to first call or maturity, was .76 years as of September 30, 2016.  The average  yield for fiscal year 2016 was .94%, which constitutes a reduction from historical rates, but an  iv increase over recent years.  Changes in the fair value of investments are recorded as part of  interest income in the financial statements.    AWARDS  GFOA Certificate of Achievement:  The Government Finance Officers Association of the United States and Canada (GFOA) awarded  a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its  Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2015.   The Certificate of Achievement is a prestigious national award, recognizing conformance with the  highest standards for preparation of state and local government financial reports.  In order to be awarded a Certificate of Achievement, a government unit must publish an easily  readable and efficiently organized Comprehensive Annual Financial Report whose contents  conform to program standards.  The CAFR must satisfy both generally accepted accounting  principles and applicable legal requirements.  A Certificate of Achievement is valid for a period of one year only.  Collier County has received  this award for the past thirty years, from fiscal year 1986 to 2015.  We believe our current report  conforms to the Certificate of Achievement program requirements, and we are submitting it to  the GFOA for consideration for an award again this year.  Distinguished Budget Presentation Awards:  The Government Finance Officers Association of the United States and Canada presented an  award for Distinguished Presentation to Collier County for its annual budget for the fiscal year  beginning October 1, 2015.  In order to receive this award, a government unit must publish a  budget document that meets program criteria as a policy document, as an operations guide, as  a financial plan, and as a communications device.  The Distinguished Budget Presentation Award  is valid for a period of one year only.  Collier County has received this award for the last thirty  consecutive years.  The Government Finance Officers Association of the United States and Canada presented an  award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court  and Comptroller for its annual budget for the fiscal year beginning October 1, 2015.  In order to  receive this award, a government unit must publish a budget document that meets program  criteria as a policy document, as an operations guide, as a financial plan, and as a communications  device.  The Distinguished Budget Presentation Award is valid for a period of one year only.  The  Clerk’s Office has received this award for the last fourteen consecutive years.  ACKNOWLEDGEMENTS  The preparation and publication of this Comprehensive Annual Financial Report represents a  significant effort by the Finance and Accounting Department as well as numerous County  v personnel who contribute to its production.  In particular, we would like to express our  appreciation to Kelly Jones, Finance Manager, Robin Sheley, Operations Manager, Raymond  Milum, Jr., Accounting Manager and all of the staff of the Finance and Accounting Department.      Sincere appreciation is also expressed to CliftonLarsonAllen, the Board of County Commissioners,  the Constitutional Officers, the County Manager, Division Administrators and the Department  Directors for their assistance throughout the year in matters pertaining to the financial affairs of  the County.    We hope you find this report informative, accurate and easily readable.  If you should have any  questions related to this report or if additional information is desired, do not hesitate to contact  Crystal K. Kinzel, Chief Deputy Clerk and Director of Finance and Accounting, at (239) 252‐6299.    Respectfully,        Dwight E. Brock     Clerk of the Circuit Court and Comptroller       Crystal K. Kinzel  Chief Deputy Clerk  Director of Finance and Accounting      Derek M. Johnssen, CPA  Deputy Clerk  Assistant Finance Director  Certificate of Achievement for Excellence in Financial Reporting  The Government Finance Officers Association of the United States and Canada (GFOA) awarded  a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for  its comprehensive annual financial report for the fiscal year ended September 30, 2015. This  was the thirtieth consecutive year that the government has achieved this prestigious award.  In  order to be awarded a Certificate of Achievement, a government must publish an easily  readable and efficiently organized comprehensive annual financial report.  This report must  satisfy both generally accepted accounting principles and applicable legal requirements.  A Certificate of Achievement is valid for a period of one year only.  We believe that our current  comprehensive annual financial report continues to meet the Certificate of Achievement  Program’s requirements and we are submitting it to the GFOA to determine its eligibility for  another certificate.  Board of County CommissionersPhone 252‐8097Penny TaylorTimNanceDonna FialaGeorgia A. HillerTomHenningJeff KlatzkowCounty AttorneyPhone 252‐8400Leo Ochs, Jr.County ManagerPhone 252‐8383ExecutiveManager of CorporateBusiness OperationsTim DurhamPhone 252‐8383Communications& Customer RelationsMike Sheffield,ManagerPhone 252‐8383Bureau of Emergency ServicesFacilities ManagementFleet Management Human ResourcesInformation TechnologyProcurement Services Records Management Risk ManagementCITIZENSAbe SkinnerProperty Appraiser252‐8141Larry RayTax Collector252‐8171KevinRamboskSheriff252‐4434Dwight BrockClerk of Courts252‐2646Jennifer EdwardsSupervisor of Elections252‐8450Judicial Courts & Judges252‐8800Administrative Services DepartmentLen Golden Price, Department HeadPhone 252‐3646Domestic Animal ServicesCommunity and Human ServicesHealthLibraryMuseumOperations and Veterans ServicesParks & RecreationPublic Transit & Neighborhood EnhancementUniversity Extension ServicePublic Services DepartmentSteve Carnell, Department HeadPhone  252‐8468Building Plan Review & InspectionCapital Project Planning, Impact Fees & Program ManagementCode EnforcementDevelopment ReviewOperations & Regulatory ManagementOperations SupportRoad MaintenanceTransportation EngineeringZoningGrowth Management DepartmentDavid Wilkison,Department HeadPhone 252‐2370Operation SupportEngineering & Project ManagementSolid  & Hazardous WasteWastewaterWaterPublic Utilities DepartmentG. George Yilmaz, Department HeadPhone 252‐2540TourismJack Wert,DirectorPhone 252‐2384Pelican Bay ServicesNeil Dorrill,DirectorPhone 597‐1749Economic& Business DevelopmentJace Kentner,Interim DirectorPhone 252‐8358Corporate Financial & Management ServicesMark Isackson, DirectorPhone 252‐8383Mark StrainChiefHearing ExaminerPhone 252‐4446Nick CasalanguidaDeputy County ManagerPhone 252‐8383Michael NiemanCorporate Compliance and Internal Review ManagerPhone 252‐8383 FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK  CliftonLarsonAllen LLP CLAconnect.com   INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund, the Bayshore Gateway Redevelopment Agency special revenue fund, and the Immokalee Redevelopment Agency special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis (MD&A) on pages 4 – 15, the schedules of the county’s proportionate share of the net pension liability and of county contributions on page 81, and the other postemployment benefits schedule of funding progress for the retiree health plan on page 82 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund financial statements and other supplemental information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, is also presented for purposes of additional analysis and is also not a required part of the basic financial statements. 2 Honorable Board of County Commissioners Collier County, Florida Other Matters (Continued) Other Information (Continued) The combining and individual fund financial statements and other supplemental information and the schedule of expenditures of federal awards and state financial assistance 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 information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 22, 2017, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 3 MANAGEMENT’S DISCUSSION AND ANALYSIS  (UNAUDITED)      As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County’s financial  statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September  30, 2016.  Readers are encouraged to consider the information presented in this narrative in conjunction with additional  information offered in the letter of transmittal, found on pages i‐v of this report.      Financial Highlights     Collier County’s assets and deferred outflows exceeded its liabilities and deferred inflows as of September  30, 2016 by $2,484,013,381.  Of this amount, $171,764,839 represents unrestricted net position and may  be used to meet future County obligations.     The County’s total net position increased by $44,490,810 when compared to fiscal year 2015, with a  $27,322,069 increase from governmental activities and a $17,168,741 increase resulting from business‐ type activities.      As of September 30, 2016 Collier County’s governmental fund financial statements showed combined  ending fund balances of $441,586,665, an increase of $29,052,786 over the previous fiscal year.  Of the  total combined ending governmental fund balance, $53,872,028 is reported as unassigned.        The General Fund reported an unassigned fund balance of $53,960,944 at September 30, 2016, a decrease  in unassigned General Fund balance of $1,041,240 when compared to September 30, 2015.     Total face value of bonded debt, notes, outstanding loans and capital leases owed by Collier County  decreased by $45,380,286 during fiscal year 2016, with a decrease in governmental activities debt of  $20,743,470 and a decrease in the business‐type activities debt of $24,636,816.  In May of 2016, the  Collier County Water and Sewer District issued the Series 2016A County Water and Sewer Bonds to  current refund the remaining Series 2006 Collier County Water and Sewer Revenue Bonds.  Additional  information on debt activity can be found in Note 6 to the financial statements beginning on page 54.      Overview of the Financial Statements    This discussion and analysis is intended to serve as an introduction and explanation of Collier County’s basic financial  statements.  Collier County’s basic financial statements include government‐wide and fund financial statements, as well as  notes to the basic financial statements.  This report also contains a statistical section, single audit and other supplementary  information in addition to the basic financial statements.      Government‐Wide Financial Statements    Government‐wide financial statements are designed to provide the reader an overview of the financial position of the County  and are similar to private sector financial statements.  These statements are comprised of a Statement of Net Position and a  Statement of Activities and are found on pages 16 to 19 of this report.      The Statement of Net Position shows the financial position of Collier County as of September 30, 2016.  The statement shows  the County’s assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the  difference being reported as net position.  Changes in net position are useful indicators of financial condition.         4     The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal  period.   All changes in net position are reported as soon as the underlying events that gave rise to the change occur,  regardless of the timing of the related cash flows.  Thus, revenues and expenses are reported for some items, such as accounts  receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and  outflows, respectively, in future fiscal periods.    These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues  (governmental activities), from business‐type activities, which are intended to have their costs primarily recovered through  user fees and charges.    Governmental activities reported in the financial statements are general government, public safety, physical environment,  transportation, economic environment, human services and culture and recreation.  Business‐type activities in Collier County  include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services.       Fund Financial Statements    A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific  objectives.  As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and  demonstrate compliance with financial legal requirements.  The funds of the County can be divided into the following three  categories: governmental, proprietary and fiduciary.      Governmental funds     Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities  reported under the government‐wide Statement of Net Position and Statement of Activities.  The difference is that the  governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of  expendable resources available at the end of the fiscal year, on a near term basis.   As such, these statements present a  narrower view of financial condition, but are nonetheless useful in evaluating Collier County’s near term financing  requirements and available resources.     Comparison between the two sets of financial statements allows the reader to better assess the future impact of the  government’s near term financial decisions.  Both the governmental fund balance sheet and the statement of revenues,  expenditures and changes in fund balances provide a reconciliation to the respective government‐wide financial statements  to facilitate comparison.    Governmental funds presented individually in Collier County’s statements include three major funds, the General Fund and  the Bayshore Gateway and Immokalee Community Redevelopment Agencies.  While there are many smaller governmental  funds under Collier County management, they are aggregated in a total column named “other governmental funds”.   Combining statements for these other governmental funds have been presented elsewhere in this report.    Collier County adopts an annual budget as described in Note 1 to the financial statements.  A budgetary comparison  statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with  this budget.  Budgetary comparison schedules for any non‐major governmental fund required to adopt an annual budget is  presented in the combining statements presented elsewhere in this report.    Proprietary funds    Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on  pages 29 to 33 of this report.    Enterprise funds report, with more detail, the same functions presented as business‐type activities in the government‐wide  financial statements for water and sewer, solid waste disposal, emergency medical services, transit and the airport authority.   The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund  are presented individually as major funds.   5     Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County.  The County  uses internal service funds to account for health insurance, worker’s compensation insurance, property and casualty  insurance, fleet operations and information technology.  The internal service funds are presented in total in the proprietary  fund financial statements, but may be viewed on a combining basis elsewhere in the report.      Fiduciary funds    Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government.  These  funds are not presented in the government‐wide financial statements as they do not represent resources available to support  Collier County functions.  The fiduciary funds are presented on page 34 of this report.  All of the County’s fiduciary funds are  agency funds.  The accounting used for agency funds is based on the concept that assets equal liabilities when the government  is acting in a fiduciary capacity.        Notes to the Financial Statements        The notes provide additional information essential to a full understanding of the data provided in both the government‐wide  and fund financial statements.  The notes appear on pages 35 to 79 of this report.      Other Information    The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed  views of nonmajor governmental and enterprise funds and begin on page 85.  This section contains combining balance sheets  and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary  comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net  position for enterprise funds.  Also included are combining financial statements for internal service and agency funds.      Additional information about the County, which may be of interest to the reader, can be found under the Statistical and Single  Audit sections of this report.  The statistical section has been prepared in accordance with Governmental Accounting  Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section.  This section contains data  regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators  of the County.  The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial  Assistance during the fiscal year and presents grant compliance information as well as auditor reports.      Government‐Wide Financial Analysis     As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.  Assets and  deferred outflows exceeded liabilities and deferred inflows by $2,484,013,381 as of the fiscal year ending September 30,  2016 for Collier County.  Positive balances were reported in all categories of net position in the governmental and business‐ type activities for fiscal year 2016, as well as fiscal year 2015.  Collier County’s net position at September 30, 2016 decreased  by $6,449,867 for unrestricted net position and increased $33,835,875 for restricted net position. Restricted net position  consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to  meet the County’s ongoing obligations.  Increases in restricted net position were mainly due to a 40.0% increase in restricted  net position related to transportation capital projects and a 29.3% increase in total impact fee collections, which are restricted  for growth related capital expansion.         The fiscal year 2015 implementation of GASB Statements No. 68 and 71, related to pensions, had a significant impact on the  reporting of the County’s long term liabilities and net position for both governmental and business‐type activities. These  statements require the County to record its proportionate share of the long term liability and deferred inflows and outflows  associated with the Florida Retirement System’s defined pension benefit plan and the retiree health insurance subsidy  program.           6     Collier County’s investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of  depreciation or any outstanding debt related to the asset, amounts to 78.4% of net position as of September 30, 2016,  compared to 79.2% as of September 30, 2015.   During fiscal year 2016, the County’s net investment in capital assets increased  by $17,104,802.  Capital assets are used to provide services to the citizens and consequently do not represent spendable  resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets.      The following are Collier County’s net position and changes in net position for the fiscal years ended September 30, 2015 and  2016, shown in condensed form:      2016 2015 2016 2015 2016 2015 2015‐2016 Current and other assets 546.8$      509.9$      250.4$    239.4$    797.2$      749.3$      6.4% Capital assets, net 1,565.0     1,571.2     904.8      910.3      2,469.8     2,481.5     (0.5%)   Total assets 2,111.8     2,081.1     1,155.2   1,149.7   3,267.0     3,230.8     1.1% Deferred outflows    of resources 102.0        41.7           23.2        10.8        125.2        52.5           138.5% Long‐term liabilities 562.0        490.9        215.5      211.0      777.5        701.9        10.8% Current liabilities 91.7           81.1           34.4        34.1        126.1        115.2        9.2%   Total liabilities 653.7        572.0        249.9      245.1      903.6        817.1        10.6% Deferred inflows    of resources 4.1             22.2           0.4          4.5          4.5             26.7           (83.1%) Net position: Net investment in    capital assets 1,225.5     1,217.2     723.0      714.2      1,948.5     1,931.4     0.9% Restricted 328.0        298.3        35.8        31.6        363.8        329.9        9.2% Unrestricted 2.5             13.1           169.3      165.1      171.8        178.2        (1.6%)   Total net position 1,556.0$   1,528.6$   928.1$    910.9$    2,484.1$   2,439.5$   1.8%  Collier County's Schedule of Net Position  (in millions) Total Governmental Activities Business‐type  Activities Total  Percentage  Change       7     2016 2015 2016 2015 2016 2015 2015‐2016 Revenues Program revenues:  Fines, fees  and charges for services 75.0$       73.5$       183.2$ 173.2$ 258.2$     246.7$     4.7%  Operating grants  and contributions 26.4         35.5         4.4        5.1        30.8         40.6         (24.1%)  Capital  grants  and contributions 36.8         30.0         25.4      21.2      62.2         51.2         21.5% General  revenues:  Property taxes 281.1       259.8        ‐           ‐          281.1       259.8       8.2%  Other taxes  and shared revenues 101.4       97.2         ‐           ‐          101.4       97.2         4.3%  Interest income 4.9            5.1            2.0        2.2        6.9            7.3            (5.5%)  Miscellaneous 6.0            17.5         0.2        0.1        6.2            17.6         (64.8%)   Total  revenues 531.6       518.6       215.2    201.8    746.8       720.4       3.7% Expenses  General  government 104.2       93.7         ‐           ‐          104.2       93.7         11.2%  Public safety 205.3       174.9       ‐           ‐          205.3       174.9       17.4%  Physical  environment 22.5         22.8         ‐           ‐          22.5         22.8         (1.3%)  Tr anspor ta tion 70.6         70.3         ‐           ‐          70.6         70.3         0.4%  Economic  environment 11.3         9.3             ‐           ‐          11.3         9.3            21.5%  Human services 14.4         13.5         ‐           ‐          14.4         13.5         6.7%  Culture and recreation 49.5         45.1         ‐           ‐          49.5         45.1         9.8%  Interest on long‐term debt 12.1         12.9         ‐           ‐          12.1         12.9         (6.2%)  Water and sewer ‐               ‐              130.8    122.8    130.8       122.8       6.5%  Solid waste ‐               ‐              39.3      36.4      39.3         36.4         8.0%  Emergency medical  services ‐               ‐              26.5      24.1      26.5         24.1         10.0%  Airport authority ‐               ‐              4.4        4.8        4.4            4.8            (8.3%)  Mass  transit ‐               ‐              11.3      10.4      11.3         10.4         8.7%   Total  expenses 489.9       442.5       212.3    198.5    702.2       641.0       9.5% Increase in net position         before net transfers      41.7         76.1         2.9        3.3        44.6         79.4         (43.8%) Transfers, net (14.3)        (14.2)        14.3      14.2      ‐               ‐               ‐ Change in net position 27.4         61.9         17.2      17.5      44.6         79.4         (43.8%) Net position – beginning 1,528.6    1,600.9    910.9    920.2    2,439.5    2,521.1    (3.2%) Restatement of net position ‐              (134.2)      ‐          (26.8)     ‐              (161.0)      ‐ Net position – ending 1,556.0$ 1,528.6$ 928.1$ 910.9$ 2,484.1$ 2,439.5$ 1.8% Total  Collier County's Schedule  of Changes in Net Position (in millions) Governmental   Activities Business ‐type  Activities Total   Percentage  Change      8     Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically  by function.  General revenues, such as property taxes, must be used to the extent that the fee, fines, grants and contributions  do not cover the cost of the governmental function.  Public safety is the largest category of expenses followed by general  government.       ‐  50  100  150  200  250 General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and RecreationMillionsRevenues and Expenses Governmental Activities Fiscal Year  2016 Revenues Expenses     Revenues for governmental activities are shown graphically by type.  The largest type of revenue for governmental activities  is property taxes followed by fines, fees and charges for services.    Property Taxes 53% Fines, Fees and Charges   for Services 14% Operating Grants and  Contributions 5% Capital  Grants and  Contributions 7% Gas  Taxes 4% Sales Taxes 8% Tourist Taxes 4%Other Income 5% Revenue by Type Governmental Activities Fiscal Year  2016   9 Revenues and expenses are shown by business‐type activity.  The Water and Sewer system is the largest business‐type activity  followed by the Solid Waste system.   ‐  20  40  60  80  100  120  140  160 Water and Sewer Solid Waste Emergency Medical Services Airport Authority Mass TransitMillionsRevenues and Expenses Business‐type Activities Fiscal Year  2016 Revenues Expenses Revenues for business‐type activities are shown graphically by type.  The largest type of revenue is fines, fees and charges  for services followed by capital grants and contributions.  Fines, Fees and Charges   for Services 85% Operating Grants and  Contributions 2% Capital  Grants and  Contributions 12% Other Income 1% Revenue by Type Business‐type Activities Fiscal Year  2016 10 Governmental Activities   The current year increase in the net position of governmental activities amounted to $27,322,069, an increase of 1.8% when  compared to the previous year’s net position.  The previous fiscal years’ increase in net position was 4.2%.  The current years’  increase is mainly due to the following:  Overall, revenues related to governmental activities increased by 2.5%, or $12,960,436 while expenses increased by 10.7%, or $47,490,517. Governmental activities revenues increased primarily due to an increase in total ad valorem taxes collected in fiscal year 2016 of $21,356,784 when compared to fiscal year 2015. In addition, Half Cent Sales Tax and Gas Tax collections increased a combined 5.2% over fiscal year 2015, or $3,017,685. Governmental activities expenses increased primarily due to increases in the public safety and general government functional areas.  Public safety expenses increased predominately due to an increase in pension expense over the amount recognized in fiscal year 2015.  General government expenses increased due to increases in pension expense, salaries and maintenance expense related to facilities. Business‐type Activities   The increase in net position related to business‐type activities amounted to $17,168,741 in the aggregate, representing a  1.9% increase over the previous year’s net position.  The previous fiscal years’ increase in net position was also 1.9%.  The  current years’ increase is mainly due to the following:  The majority of the increase, or $11,902,262, can be attributed to the Collier County Water and Sewer District (District).  The increase in the District’s net position is largely due to a 5.0% rate increase that went in to effect October 1, 2015.  In addition, water and sewer impact fee collections, charged to new construction, increased by 7.9% when compared to fiscal year 2015. Solid waste contributed $2,534,151 to the overall increase in business‐type activities net position.  User charges increased by $2,821,006, or 7.2% over fiscal year 2015, primarily as a result of a 6.9% increase in residential and commercial municipal waste tonnage and construction and demolition waste being accepted into the Naples landfill during fiscal year 2016.  Operating costs increased primarily due to an increase in landfill operating costs. Emergency Medical Services contributed $2,751,781 to the overall increase in business‐type activities net position.  User charges increased by $866,066 over fiscal year 2015 as a result of a 3.5% increase in ambulance calls over the same interval.  Operating transfers from the governmental activities exceeded the operating loss generated by the operation of Emergency Medical Services. Fund Financial Statement Analysis   As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements.  Governmental Funds  Governmental funds provide information on near term inflows, outflows and balances of spendable resources.  Unassigned  fund balance is a useful measure of net resources available to be spent at the end of the fiscal year.  Governmental funds  consist of the General Fund, Special Revenue Funds, Permanent Fund, Debt Service Funds and Capital Project Funds.  As of September 30, 2016, Collier County governmental funds reported combined fund balances of $441,586,665, an increase  of $29,052,786 when compared to prior year combined fund balances.  The governmental funds had non‐spendable fund  balances of $6,730,508 consisting of inventory, prepaid items, notes receivable and General Fund and Other Governmental  Fund advances to other funds.  The restricted fund balance was $324,597,817 and consists of monies whose expenditure is  externally constrained by grantors, creditors, binding law or enabling legislation.  Of the remaining $110,258,340 in fund  11     balance, $26,069,145 is classified as committed, $30,317,167 is recorded as assigned and $53,872,028 is recorded as  unassigned.      The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2016:     The General Fund is the primary operating fund of Collier County.  At September 30, 2016, total fund  balance in the General Fund was $59,573,533, of which $53,960,944 was unassigned.  As a percentage of  total general fund expenditures and net transfers, the unassigned portion is 17.1%.  The total fund balance  decreased by $618,110 or 1.0%, compared to the September 30, 2015 total fund balance.     The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the  Bayshore Gateway Triangle.  During fiscal year 2016, the Bayshore Gateway Community Redevelopment  Agency collected $1,124,200 in tax increment revenues and was reimbursed $81,037 for stormwater  improvements.  In addition, the agency received $122,246 in miscellaneous revenues for rents.   Operating  expenditures of $2,612,209 were associated with the Bayshore Gateway Triangle Community  Redevelopment Agency, including a $2,155,231 write down of land held for resale.  In addition, capital  expenditures of $90,042 were made for stormwater improvements.       The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee.   During fiscal year 2016, the Immokalee Community Redevelopment Agency collected $440,300 in tax  increment revenues.  Operating expenditures of $381,889 were associated with the Immokalee  Community Redevelopment Agency.      Proprietary Funds     Proprietary fund statements provide the same information as the business‐type activities in the government‐wide financial  statements, but in greater detail, and on a fund basis for enterprise funds.    At September 30, 2016, total net position amounted to $926,808,495 for enterprise funds, as compared to $909,442,595, as  of September 30, 2015, an increase of $17,365,900.  Net position changes as a result of operations, non‐operating revenues  and expenses, capital contributions and grants and donations.  The Collier County Water and Sewer District’s activities  represent the largest share of the increase in the business‐type net position.      For the year ended September 30, 2016, the Collier County Water and Sewer District reported capital grants and contributions  of $22,737,854, which consists of water and sewer impact fees of $13,643,674, $8,941,251 in developer infrastructure  contributions and other capital contributions of $152,929.    2016 2015 County Water and Sewer (2,710,740)$         1,698,445$           Solid Waste Disposal 2,550,706             2,659,868             Emergency Medical  Services (13,307,366)         (11,464,061)          Non ‐major  enterprise funds (11,419,753)         (10,078,334)          Total (24,887,153)$       (17,184,082)$       Net Operating Income/(Loss)     The Collier County Water and Sewer District’s net operating income decreased by $4,409,185 when compared to fiscal year  2015.  The decrease in net operating income was primarily the result of a 10.1% increase in total operating expenses.  The  District added eighteen (18) full time equivalent positions during fiscal year 2016.  In addition, several substantial repair and  maintenance projects were performed during fiscal year 2016.  County Water and Sewer payments in lieu of taxes paid to  the General Fund of $5,351,100 were reclassified from operating expense to operating transfers for financial statement  purposes.  These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is  not an approximation of services rendered.     12 The Solid Waste Disposal fund’s net operating income decreased by $109,162 when compared to fiscal year 2015.  The  marginal change in net operating income was the result of a 6.9% increase in residential and commercial municipal waste  tonnage and construction and demolition waste offset by an increase in landfill operating costs during fiscal year 2016.  Total  operating expenses, including depreciation, increased by $2,906,764, or 8.0%, when compared to fiscal year 2015. The Solid  Waste Disposal payments in lieu of taxes paid to the General Fund of $220,600 were reclassified from operating expense to  operating transfers for financial statement purposes.  These payments are reclassified pursuant to generally accepted  accounting principles as the amount charged is not an approximation of services rendered.  The Emergency Medical Services fund’s net operating income decreased by $1,843,305 when compared to fiscal year 2015.   The decrease in net operating income was the result of an 11.3% increase in total operating cost, offset by an $866,066  increase in charges for services.  Operating expenses increased mainly due to increased personal services costs, including  pension expense.   Capital Assets  Collier County’s financial statements present capital assets in two distinct groups, those that are depreciated and those not  subject to depreciation.  Buildings and equipment are examples of assets that are depreciated and land and construction in  progress are examples of assets not depreciated.  Collier County’s investment in capital assets for the governmental and  business‐type activities amounted to $2,469,722,865, net of accumulated depreciation.  This investment in capital assets,  both purchased and donated, includes land, buildings and improvements, water and wastewater plants, machinery and  equipment, parks, roads, beach renourishment and drainage structures.  Investment in capital assets for the current fiscal  year, net of depreciation, decreased by $11,784,789 when compared to the previous year.  There was a decrease in the  governmental activities net capital assets of $6,250,938, or .4%, while the business‐type activities capital assets decreased by  $5,533,851, or .6%.  The major capital asset activities during the current and previous fiscal years are as follows:    Capitalization as construction in process of $46,544,228 for governmental activity related costs including $7,068,344 related to county wide 800 MHz system upgrades, $7,990,179 for improvements to Collier Boulevard from Golden Gate Boulevard to Green Boulevard and $8,326,663 for improvements to Golden Gate Boulevard from Wilson Boulevard to Everglades Boulevard.  A total of $4,503,944 was spent on the acquisition and renovation of a new Supervisor of Election’s building, new Sheriff’s substation and renovation of the Collier Jail’s heating, ventilation and air conditioning system.  The remaining $18,655,098 is related to $9,848,841 in other transportation projects, $2,384,641 in other physical environment projects, $2,568,488 in culture and recreation projects and $3,853,128 in other capital projects. The business‐type activities capitalized $27,041,589 of construction in process during fiscal year 2016 including $4,693,000 for utility force main transmission system improvements, $2,144,513 for master pump systems improvements and $5,797,929 for distribution system improvements.   In addition, $1,299,872 was related to the solid waste fund’s ongoing project to construct hammerheads (turnarounds) on rural roads to facilitate trash pickup.  The remaining $13,106,275 was made up of $10,701,579 in other County Water and Sewer projects, $11,021 in other airport projects, $743,522 in other solid waste projects and $1,650,153 in Mass Transit. Total purchases of land and non‐depreciable assets were $5,908,695 for fiscal year 2016, compared to $5,025,821 for fiscal year 2015. Additional information regarding Collier County’s capital assets can be found in Note 5 beginning on page 53 of this report.  13 Debt Administration  At September 30, 2016, Collier County had total bonded debt, notes and loans, net of premiums, of $516,823,410, a decrease  of $35,389,275 from the previous year.  The following table illustrates the balances of all bonds, notes and loans, net, for the  fiscal years ended September 30, 2016 and 2015:  2016 2015 Limited  General  Obligation Bonds, net 2,941,353$    3,368,515$        Revenue Bonds, net 412,330,561   437,967,928      State Revolving Fund Loans 95,642,438  104,410,895      Miscellaneous Notes 5,909,058    6,465,347     Total 516,823,410$     552,212,685$      Outstanding Debt On May 26, 2016 the Collier County Water and Sewer District issued the Series 2016A Water and Sewer Refunding Revenue  Bonds in the par amount of $48,105,000 for the purpose of currently refunding the District’s remaining Series 2006 Revenue  Bonds.    The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.  Further information  regarding Collier County’s long‐term debt can be found in Note 6 beginning on page 54 of this report.  General Fund Budgetary Highlights    During the current fiscal year, the General Fund expenditure appropriations increased by $3,184,406.  Significant variances  between the original budget and the final amended budget are listed below:  $338,200 increase in charges for services and Clerk’s overall budget to recognize additional revenues received and provide for additional data processing software and minor computer equipment. $346,032 increase in County Attorney operating due to re‐budgeting of lapsed appropriations from the previous fiscal year. $637,160 increase in charges for services and Facilities Management operating related to an increase in maintenance requests. $1,233,000 increase in charges for services and Sheriff’s agency personal services related to special detail duties. $421,600 increase in Economic Development operating due to re‐budgeting of lapsed appropriations from the previous fiscal year as well as additional funding for a Soft Landing Accelerator project. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2016.   Tax revenues were under budget by $9,232,643 primarily due to the early payment discount allowed for property taxes.  The  discount ranges from a maximum 4% to 1%, depending on the date of payment.  General Fund general government  expenditures were under budget primarily due to $1,673,668 in unspent budget related to goods and services contracted for  in 2016 that had not been received as of September 30, 2016 as well as an effort to reduce spending in all departments.    14 Economic Factors and Year 2017 Budgets and Rates   The following factors were taken into account in preparing the fiscal year 2017 budget:  A 7% increase in countywide taxable property values. Millage neutral General Fund and Unincorporated Area General Fund tax rates. Expected year on year increases in sales tax and state shared revenues of 2.7% and 3.3%, respectively. No new fees or service charges to Collier County residents. Expected expanded position requests to meet the increase in service expectations. Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff and Tax Collector). During fiscal year 2016, the General Fund unassigned fund balance decreased by $1,041,240 to $53,960,944.  As of December  20, 2016, $48,199,500 of the fiscal year 2016 unassigned fund balance has been appropriated as carryforward for fiscal year  2017, with $35,907,900 budgeted in reserves.  Contact Information  This financial report is intended to give the user a general overview of Collier County Government’s finances.  Any questions  resulting from review of this information may be addressed to:  Collier County Clerk of the Circuit Court  Department of Finance and Accounting  3299 Tamiami Trail East, Suite #403  Naples, Florida 34112‐5746  Our office may also be contacted via the internet at www.collierclerk.com.   15 Governmental Business‐type Component Activities Activities Total Units ASSETS Current assets: Cash and investments 187,998,460$      184,696,473$    372,694,933$       292,288$      Cash with fiscal agent 11,887,225          ‐11,887,225           ‐ Trade receivables, net 1,123,921            13,684,759        14,808,680            ‐ Special assessments receivable  ‐31,435                31,435 ‐ Interest receivable 279,016               405,267             684,283                 ‐ Due from other governments 3,471,443            424,064             3,895,507             ‐ Internal balances (2,683,492)          2,683,492          ‐ ‐ Deposits 55,736 ‐55,736 ‐ Inventory 2,879,141            5,719,060          8,598,201             ‐ Prepaid costs 70,508 110,363             180,871                ‐ Restricted assets:  Cash and investments 19,485,205          6,481,112          25,966,317           ‐ Trade receivables, net 1,211,795            48,571                1,260,366             ‐ Notes receivable 54,611 ‐54,611 ‐ Interest receivable 455,393               33,958                489,351                ‐ Due from other governments 20,898,854          4,267,562          25,166,416           ‐ Deposits 1,875 ‐1,875 ‐ Inventory for resale 9,796,692            ‐9,796,692             ‐ Total current assets 256,986,383       218,586,116     475,572,499        292,288       Noncurrent assets:  Restricted assets:  Cash and investments 282,803,893       31,845,588        314,649,481        ‐ Notes receivable 484,896               ‐484,896                ‐ Impact fee receivable 4,926,021            ‐4,926,021             ‐ Special assessments receivable 4,154 10,419                14,573 ‐ Notes receivable 1,597,726            ‐1,597,726             ‐ Unamortized bond insurance 13,079 ‐13,079 ‐ Capital assets:  Land and non‐depreciable capital assets  475,133,997       85,861,683        560,995,680        ‐ Depreciable capital assets, net 1,089,790,702    818,936,483     1,908,727,185    ‐ Total noncurrent assets 1,854,754,468    936,654,173     2,791,408,641    ‐ Total assets 2,111,740,851    1,155,240,289  3,266,981,140    292,288       DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings  12,447,091          4,977,541          17,424,632           ‐ Deferred outflows of resources related to pensions  89,580,431          18,199,822        107,780,253        ‐ Total deferred outflows of resources 102,027,522$      23,177,363$      125,204,885$       ‐$ Primary Government COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2016 The notes to the financial statements are an integral part of this statement.  16 Governmental Business‐type Component Activities Activities Total Units LIABILITIES Current liabilities:  Accounts payable 15,840,476$        11,851,906$      27,692,382$         ‐$                   Wages payable 8,129,664            1,630,949          9,760,613             ‐                    Retainage payable 829,492               1,101,269          1,930,761             ‐                    Due to other governments 4,043,437            3,874                  4,047,311             ‐                    Self‐insurance claims payable 6,283,371            ‐                           6,283,371             ‐                    Compensated absences 9,342,255            2,225,263          11,567,518           ‐                    Capital lease obligations 621,513               382,180             1,003,693             ‐                    Notes payable 558,121               ‐                           558,121                ‐                    Unearned revenue 424,133               52,983                477,116                ‐                    Net pension liability 1,962,146            356,541             2,318,687             ‐                    Interest payable 4,896,544            1,530,753          6,427,297             ‐                    Bonds and loans payable 20,340,000          7,085,210          27,425,210           ‐                    Liabilities payable from restricted assets:  Accounts payable 8,387,772            1,993,430          10,381,202           ‐                    Wages payable 1,231,150            2,039                  1,233,189             ‐                    Retainage payable 3,045,725            127,662             3,173,387             ‐                    Refundable deposits 1,078,103            78,851                1,156,954             ‐                    Notes payable ‐                             64,255                64,255                  ‐                    Due to other governments 4,706,408            38,011                4,744,419             ‐                    Unearned revenue ‐                             93,305                93,305                  ‐                    Bonds and loans payable ‐                             5,827,937          5,827,937             ‐                    Total current liabilities 91,720,310          34,446,418        126,166,728        ‐                    Noncurrent liabilities:  Self‐insurance claims payable 1,618,799            ‐                           1,618,799             ‐                    Compensated absences 17,321,005          556,315             17,877,320           ‐                    Capital lease obligations 315,801               864,848             1,180,649             ‐                    Notes payable 5,286,682            ‐                           5,286,682             ‐                    Landfill post‐closure liability ‐                             1,883,503          1,883,503             ‐                    Net OPEB obligation 3,875,092            ‐                           3,875,092             ‐                    Net pension liability 223,315,901       44,777,387        268,093,288        ‐                    Bonds and loans payable, net 310,251,339       167,409,866     477,661,205        ‐                    Total noncurrent liabilities 561,984,619       215,491,919     777,476,538        ‐                    Total liabilities 653,704,929       249,938,337     903,643,266        ‐                    DEFERRED INFLOWS OF RESOURCES  Deferred inflows of resources related to pensions  4,097,008            432,370             4,529,378             ‐                    NET POSITION  Net investment in capital assets 1,225,519,574    723,000,077     1,948,519,651    ‐                    Restricted for:  Growth related capital expansion 97,368,645          23,507,009        120,875,654        ‐                    Transportation capital projects 44,659,573          ‐                           44,659,573           ‐                    Tourist development 65,047,351          ‐                           65,047,351           ‐                    Conservation 33,253,360          ‐                           33,253,360           ‐                    Community redevelopment 10,449,604          ‐                           10,449,604           ‐                    Grants 6,159,788            3,896,465          10,056,253           ‐                    Debt service 266,760               8,056,609          8,323,369             ‐                    Nonexpendable purposes ‐ other 1,582,800            ‐                           1,582,800             ‐                    Special revenues ‐ other 69,180,927          ‐                           69,180,927           ‐                    Renewal and replacement ‐                             300,000             300,000                ‐                    Unrestricted 2,478,054            169,286,785     171,764,839        292,288       Total net position 1,555,966,436$   928,046,945$    2,484,013,381$    292,288$      Primary Government 17 Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Primary Government:  Governmental Activities:  General government 104,187,990$     35,184,120$      1,043,509$         2,940,047$           Public safety 205,347,062       25,276,222        4,465,612          3,880,657            Physical environment 22,500,001          586,745             1,465,908          1,192,931            Transportation 70,560,064          4,879,501          9,959,877          18,515,473          Economic environment 11,323,170          104,487             6,771,076          20,170                  Human services 14,433,560          539,044             2,461,019          116,443               Culture and recreation 49,525,583          8,392,929          220,248             10,152,508          Interest and fiscal charges 12,077,226          ‐‐‐  Total governmental activities 489,954,656       74,963,048        26,387,249        36,818,229          Business‐type Activities:  Water and sewer 130,791,857       123,856,151     ‐22,608,100          Solid waste 39,270,697          41,918,294        112,552             ‐  Emergency medical services 26,529,274          13,161,018        65,176                ‐  Airport authority 4,402,169            3,072,836          ‐529,329               Mass transit 11,332,459          1,224,647          4,256,647          2,229,804            Total business‐type activities 212,326,456       183,232,946     4,434,375          25,367,233          Total primary government 702,281,112       258,195,994     30,821,624        62,185,462          Component Units:  Industrial Development Authority  35,555$              2,550$                 ‐$‐$  Health Facilities Authority  3,466 50 ‐‐  Housing Finance Authority  2,636 75 ‐‐  Educational Facilities Authority  12,563                 50 ‐‐  Total component units 54,220$              2,725$                 ‐$‐$  General revenues:  Property taxes  Gas taxes  Sales taxes  Tourist taxes  Communications services tax  State revenue sharing  Other taxes  Interest income  Miscellaneous  Transfers, net   Total general revenues and transfers  Change in pet position  Net position ‐ beginning  Net position ‐ ending  The notes to the financial statements are an integral part of this statement.  FUNCTIONS/PROGRAMS  COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Program Revenues 18 Governmental Business‐type Component Activities Activities Total Units (65,020,314)$         ‐$(65,020,314)$        ‐$ (171,724,571)        ‐ (171,724,571)        ‐ (19,254,417)           ‐ (19,254,417)          ‐ (37,205,213)           ‐ (37,205,213)          ‐ (4,427,437)             ‐ (4,427,437)            ‐ (11,317,054)           ‐ (11,317,054)          ‐ (30,759,898)           ‐ (30,759,898)          ‐ (12,077,226)           ‐ (12,077,226)          ‐ (351,786,130)        ‐ (351,786,130)        ‐ ‐ 15,672,394          15,672,394           ‐ ‐ 2,760,149            2,760,149             ‐ ‐ (13,303,080)        (13,303,080)          ‐ ‐ (800,004)             (800,004)               ‐ ‐ (3,621,361)           (3,621,361)            ‐ ‐ 708,098               708,098                 ‐ (351,786,130)        708,098               (351,078,032)        ‐ (33,005)$        (3,416)            (2,561)            (12,513)          (51,495)$        281,135,706          ‐ 281,135,706          ‐ 20,478,239            ‐ 20,478,239           ‐ 40,658,974            ‐ 40,658,974           ‐ 21,838,332            ‐ 21,838,332           ‐ 4,702,746              ‐ 4,702,746             ‐ 11,099,695            ‐ 11,099,695           ‐ 2,577,194              ‐ 2,577,194             ‐ 4,891,181              2,010,391            6,901,572             108                 5,976,442              199,942               6,176,384             ‐ (14,250,310)           14,250,310          ‐‐ 379,108,199          16,460,643          395,568,842          108                 27,322,069            17,168,741          44,490,810           (51,387)          1,528,644,367      910,878,204       2,439,522,571      343,675         1,555,966,436$    928,046,945$     2,484,013,381$    292,288$        Net (Expense) Revenue and Changes in Net Position Primary Government 19 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Funds Agency Agency Funds Funds ASSETS  Cash and investments 67,854,846$    957,371$          337,697$          363,069,357$    432,219,271$    Cash with fiscal agent ‐                         ‐                        ‐                        11,887,225        11,887,225       Receivables:  Interest 90,287              1,553               536                   557,174              649,550             Trade, net 548,279            ‐                        ‐                        1,782,657           2,330,936          Notes 1,597,726         ‐                        ‐                        539,507              2,137,233          Impact Fee ‐                         ‐                        ‐                        4,926,021           4,926,021          Special assessments ‐                         ‐                        ‐                        4,154                   4,154                  Due from other funds 4,496,930         14,876             ‐                        13,978,579        18,490,385       Due from other governments 2,966,499         ‐                        ‐                        21,380,025        24,346,524       Deposits 4,628                ‐                        625                   1,250                   6,503                  Inventory for resale ‐                         9,566,959        ‐                        229,733              9,796,692          Inventory 1,487,018         ‐                        ‐                        1,024,567           2,511,585          Advances to other funds 563,900            ‐                        ‐                        447,701              1,011,601          Prepaid costs 26,796              ‐                        ‐                        ‐                           26,796               Total assets 79,636,909$    10,540,759$    338,858$          419,827,950$    510,344,476$    LIABILITIES, DEFERRED INFLOWS OF  RESOURCES AND FUND BALANCES  Liabilities:  Accounts payable 9,099,141$      2,489$              5,561$              13,910,285$      23,017,476$      Wages payable 6,943,186         5,890               7,192               2,164,788           9,121,056          Due to other funds 721,324            168,480           ‐                        13,605,511        14,495,315       Due to other governments 2,210,075         ‐                        ‐                        6,539,756           8,749,831          Unearned revenues 315                    ‐                        ‐                        413,345              413,660             Refundable deposits 1,014,768         1,500               ‐                        61,835                1,078,103          Retainage payable ‐                         ‐                        ‐                        3,875,217           3,875,217          Advances from other funds ‐                         ‐                        238,901           2,728,250           2,967,151          Total liabilities 19,988,809      178,359           251,654           43,298,987        63,717,809       Deferred inflows of resources:  Unavailable revenue 74,567              ‐                        ‐                        4,965,435           5,040,002          Fund balances:   Nonspendable 3,675,440         ‐                        ‐                        3,055,068           6,730,508          Restricted 263,481            10,362,400     87,204             313,884,732      324,597,817     Committed ‐                         ‐                        ‐                        26,069,145        26,069,145       Assigned 1,673,668         ‐                        ‐                        28,643,499        30,317,167       Unassigned 53,960,944      ‐                        ‐                        (88,916)               53,872,028       Total fund balances  59,573,533      10,362,400     87,204             371,563,528      441,586,665     Total liabilities, deferred inflows of   resources and fund balances   79,636,909$    10,540,759$    338,858$          419,827,950$    510,344,476$    The notes to the financial statements are an integral part of this statement.  COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 20 441,586,665$       Land and other non‐depreciable assets 417,017,620$     Construction in progress 58,116,377        Depreciable assets, net of $884,120,065  in accumulated depreciation 1,073,355,847  1,548,489,844      13,079  5,040,002               Accrued interest on bonds (4,896,544)$         Bonds and notes payable (321,114,803)     Capital lease obligations (937,314)              Compensated absences (26,142,844)       Pension liability (220,714,819)     Unamortized premium (15,321,339)      (589,127,663)        12,447,091            87,741,555            (4,055,083)             53,830,946             Total net position ‐ governmental activities 1,555,966,436$    The notes to the financial statements are an integral part of this statement. Pension deferred inflows  Fund balances ‐ total governmental funds  Capital assets used in governmental activities are not financial resources and therefore are    Internal service funds are used by the County to charge self‐insurance, fleet management and  information technology services to individual funds.  The assets, deferred outflows, liabilities and  deferred inflows of the internal service funds are included in governmental activities in the statement  of net position.  Internal service fund net position is: Certain long‐term assets are not financial resources and therefore are not reported in the  governmental funds ‐ unamortized bond insurance premium. Certain revenues will be collected after year‐end, but are not available to pay for the current period's  expenditures, and therefore are reported as deferred inflows in the funds. Certain liabilities applicable to the County's governmental activities are not due and payable in the  current period and accordingly are not reported as fund liabilities.  Interest on long‐temr debt is not  accrued in the governmental funds, but is recognized as an expenditure when due.  All liabilities are  reported in the statement of net position.  Balances at September 30, 2016 are: Unamortized deferred charges on refunding   Pension deferred outflows  not reported in the funds.  Those assets consist of:   COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2016 Differences in amounts reported for governmental activities in the statement of net position on pages 16‐17 21 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Funds Agency Agency Funds Funds Revenues: Taxes 239,815,402$     1,124,200$           440,300$             81,534,977$         322,914,879$     Licenses, permits and impact fees 310,727              ‐‐60,722,128          61,032,855        Intergovernmental 53,717,345         ‐‐30,232,089          83,949,434        Charges for services 16,844,531         81,037 ‐21,436,036          38,361,604        Fines and forfeitures 402,238              ‐‐2,305,766            2,708,004          Interest income 1,078,792           10,129 3,032 3,347,672            4,439,625          Special assessments ‐‐‐3,745,804            3,745,804          Miscellaneous 2,742,134           122,246                186 3,735,910            6,600,476          Total revenues 314,911,169       1,337,612            443,518              207,060,382        523,752,681      Expenditures: Current: General government 58,770,288         ‐‐25,828,643          84,598,931        Public safety 147,803,650       ‐‐29,571,568          177,375,218      Physical environment 849,319              ‐‐14,433,746          15,283,065        Transportation 267,847              ‐‐35,743,254          36,011,101        Economic environment 1,650,968           2,612,209            381,889              6,415,980            11,061,046        Human services 10,896,535         ‐‐3,140,974            14,037,509        Culture and recreation 15,754,220         ‐‐25,131,239          40,885,459        Debt service Principal 560,283              ‐‐20,183,187          20,743,470        Interest 57,429                ‐‐12,655,969          12,713,398        Fiscal charges ‐‐‐18,580 18,580                Capital outlay 11,681,119         90,042 ‐55,427,111          67,198,272        Total expenditures 248,291,658       2,702,251            381,889              228,550,251        479,926,049      Excess (deficit) of revenues    over (under) expenditures 66,619,511         (1,364,639)           61,629 (21,489,869)        43,826,632        Other financing sources (uses): Sale of capital assets 286,858              ‐‐19,531 306,389              Insurance proceeds 437,506              ‐‐358,504               796,010              Transfers in 10,455,705         136,800                85,000 110,976,073        121,653,578      Transfers out (78,417,690)        (858,500)               ‐(58,253,633)        (137,529,823)    Total other financing sources (uses) (67,237,621)        (721,700)               85,000 53,100,475          (14,773,846)       Net change in fund balances (618,110)             (2,086,339)           146,629              31,610,606          29,052,786        Fund balances at beginning of year 60,191,643         12,448,739          (59,425)               339,952,922        412,533,879      Fund balances (deficit) at end of year 59,573,533$       10,362,400$         87,204$               371,563,528$      441,586,665$     COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 The notes to the financial statements are an integral part of this statement. 22 29,052,786$          Capital outlay 67,198,272$       Depreciation expense (74,600,143)      (7,401,871)             706,694                   (195,465)                (567,716)                 (2,122,162)              Bond and loan principal payments 20,161,289$       Payments on capital lease obligations 582,181              20,743,470            Compensated absences (4,854,220)$        Pension expense (11,319,628)       Accrued interest on bonds and loans 305,357               Amortization of bond insurance premium (2,491)                  AmortizatIon of deferred charges on refunding (1,098,049)         AmortizatIon of premium 1,449,935          (15,519,096)           2,625,429              Change in net position ‐ governmental activities  27,322,069$          The notes to the financial statements are an integral part of this statement.  COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Differences in amounts reported for governmental activities in the statement of activities on pages 18‐19:  Repayment of principal on long‐term debt is an expenditure in governmental funds, but a reduction of long‐term liabilities in the statement of net position.  The net revenues of internal service funds are reported with governmental activities. FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds.  Governmental funds report capital outlays as expenditures.  However, in the statement of  Donations of capital assets are not financial resources to governmental funds, but receiving  donated assets increases net position in the statement of net position.  Capital assets transferred to and from proprietary funds are not recorded in the  In the statement of net position, the gain or loss on the sale of capital assets is reported.  However, in the governmental funds the proceeds from the sale of capital assets increase  financial resources.  The change in net position differs from the change in fund balances by the  net book value of assets disposed.  Certain revenues not considered available are not recognized in the governmental funds  but are included in the statement of activities.  Net change in fund balances ‐ total governmental funds  net position the cost of these assets is allocated over their estimate useful lives and reported as depreciation expense.   governmental funds as there is no flow of current financial resources.  23 Original Final Budget Budget Actual Variance Revenues: Taxes 249,066,300$   249,066,300$   239,833,657$    (9,232,643)$      Licenses, permits and impact fees 303,300            303,300            310,727              7,427                Intergovernmental 47,835,000      47,835,000      53,717,345        5,882,345        Charges for services 18,727,116      20,641,728      16,844,531        (3,797,197)       Fines and forfeitures 508,400            508,400            402,238              (106,162)          Interest income 588,100            588,100            1,109,161           521,061           Miscellaneous 7,654,457         7,720,395         9,611,765           1,891,370        Total revenues 324,682,673    326,663,223    321,829,424      (4,833,799)       Expenditures: Current: General government Board of County Commissioners personal services 1,103,200         1,108,200         1,065,965           42,235              Board of County Commissioners operating 85,200              85,200              60,014                25,186              County manager administrative personal services 862,400            892,400            875,837              16,563              County manager administrative operating 42,100              42,100              33,231                8,869                County manager administrative capital outlay ‐                         1,300                1,270                  30                     Corporate planning and performance improvements operating ‐                         40,000              36,175                3,825                Budget and management personal services 681,400            681,400            656,366              25,034              Budget and management operating 69,300              94,450              77,150                17,300              Administrative services personal services 2,477,600         2,477,600         2,378,244           99,356              Administrative services operating 191,200            199,200            183,459              15,741              Administrative services capital outlay 17,900              11,450              11,193                257                   Human resources administration personal services 1,318,100         1,318,100         1,267,894           50,206              Human resources administration operating 309,800            306,377            283,245              23,132              Human resources administration capital outlay ‐                         3,423                2,282                  1,141                Clerk of the Circuit Court personal services 7,129,200         6,644,000         6,630,979           13,021              Clerk of the Circuit Court operating 2,090,500         2,610,000         2,413,387           196,613           Clerk of the Circuit Court capital outlay 119,300            423,200            345,030              78,170              Property Appraiser personal services 5,271,569         5,271,569         5,349,372           (77,803)            Property Appraiser operating 1,648,533         1,648,533         1,715,890           (67,357)            Property Appraiser capital outlay 25,000              25,000              9,204                  15,796              Tax Collector personal services 10,603,138      10,603,138      10,126,106        477,032           Tax Collector operating 2,770,517         2,795,270         2,700,549           94,721              Tax Collector capital outlay 296,600            346,930            326,313              20,617              County attorney personal services 2,244,100         2,244,100         2,213,623           30,477              County attorney operating 384,500            730,532            349,696              380,836           County attorney capital outlay 3,000                3,000                ‐                           3,000                Natural resource planning operating 101,100            101,100            101,036              64                     Circuit court operating 34,700              34,700              32,140                2,560                County court operating 22,800              22,800              21,611                1,189                State Attorney operating 271,800            271,800            257,502              14,298              Public Defender operating 225,100            226,800            226,799              1                        Other general administrative personal services 200,000            170,000            26,215                143,785           Other general administrative operating 6,946,500         6,827,105         5,293,033           1,534,072        Facilities management personal services 4,252,100         4,105,530         4,097,080           8,450                Facilities management operating 8,317,100         8,954,260         8,769,393           184,867           Facilities management capital outlay 78,300              93,519              39,795                53,724              Sheriff personal services 3,689,800         3,689,800         3,837,585           (147,785)          Sheriff operating 167,400            167,400            105,749              61,651              Sheriff capital outlay ‐                         ‐                         24,969                (24,969)            COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 24 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 2,209,400         2,104,400         2,078,651           25,749              Supervisor of Elections operating 1,737,900         1,825,037         1,788,946           36,091              Supervisor of Elections capital outlay 106,000            119,136            119,009              127                   Public services operations personal services 274,500            278,100            277,906              194                   Public services operations operating 9,800                7,300                4,147                  3,153                Real property management personal services 647,900            647,900            631,981              15,919              Real property management operating 35,500              35,500              30,065                5,435                  Total general government 69,071,857      70,288,659      66,876,086        3,412,573        Public safety Sheriff personal services 122,420,600    123,653,600    119,108,878      4,544,722        Sheriff operating 26,901,800      27,010,157      24,908,139        2,102,018        Sheriff capital outlay 2,716,900         2,716,900         9,025,540           (6,308,640)       Emergency management administration personal services 862,900            862,900            832,113              30,787              Emergency management administration operating 682,700            682,700            629,802              52,898              Helicopter operations personal services 835,900            792,900            784,410              8,490                Helicopter operations operating 686,500            729,637            684,320              45,317              Helicopter operations capital outlay ‐                         4,098                1,254                  2,844                Medical examiner services operating 1,244,800         1,244,800         1,242,008           2,792                  Total public safety 156,352,100    157,697,692    157,216,464      481,228           Physical environment Conservation and resource management personal services 686,100            694,500            685,112              9,388                Conservation and resource management operating 172,900            192,900            160,153              32,747              Conservation and resource management capital outlay 22,800              2,800                1,378                  1,422                Immokalee cemetery operating 5,100                5,100                4,054                  1,046                  Total physical environment 886,900            895,300            850,697              44,603              Transportation Alternative transportation modes personal services 243,400            245,875            245,401              474                   Alternative transportation modes operating 25,700              23,725              22,446                1,279                  Total transportation 269,100            269,600            267,847              1,753                Economic environment Veterans services personal services 320,200            312,400            301,736              10,664              Veterans services operating 49,700              48,250              34,184                14,066              Veterans services capital outlay ‐                         1,450                1,141                  309                   Economic development personal services 354,800            354,800            308,326              46,474              Economic development operating 1,107,900         1,529,500         1,006,722           522,778           Economic development capital outlay ‐                         3,200                2,779                  421                     Total economic environment 1,832,600         2,249,600         1,654,888           594,712           Human services Health Care Responsibility Act operating 46,100              46,100              10,131                35,969              Domestic animal services personal services 2,067,700         2,066,700         2,004,514           62,186              Domestic animal services operating 831,500            867,500            827,940              39,560              Domestic animal services capital outlay 175,500            187,348            118,155              69,193              Health department operating 1,728,700         1,978,000         1,963,419           14,581              Mental health operating 1,385,000         1,385,000         1,384,800           200                   Client assistance personal services 799,500            791,156            718,070              73,086              Client assistance operating 4,529,300         4,381,662         3,697,877           683,785           Client assistance capital outlay 3,200                3,200                ‐                           3,200                Public services division office personal services 279,800            281,800            281,138              662                   Public services division office operating 29,700              29,700              22,533                7,167                Public services division office capital outlay 1,500                4,000                2,840                  1,160                  Total human services 11,877,500      12,022,166      11,031,417        990,749           (continued) COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 25 Original Final Budget Budget Actual Variance Culture and recreation Library administration personal services 5,387,200         5,389,900         5,136,497           253,403           Library administration operating 2,185,700         2,199,847         2,103,843           96,004              Library administration capital outlay 50,000              83,194              83,134                60                     Beach and water park operations personal services 3,278,500         3,290,600         3,080,300           210,300           Beach and water park operations operating 2,701,600         2,658,311         2,257,199           401,112           Beach and water park operations capital outlay 29,400              62,392              59,874                2,518                Parks maintenance personal service 1,217,500         1,207,500         1,192,977           14,523              Parks maintenance operating 2,208,900         2,093,067         1,973,606           119,461           Parks maintenance capital outlay 127,000            242,996            241,928              1,068                  Total culture and recreation 17,185,800      17,227,807      16,129,358        1,098,449          Total expenditures 257,475,857    260,650,824    254,026,757      6,624,067          Excess of revenues over expenditures 67,206,816      66,012,399      67,802,667        1,790,268        Other financing sources (uses): Sale of capital assets 250,000            250,000            73,126                (176,874)          Insurance proceeds ‐                         26,787              41,459                14,672              Transfers in 5,230,284         5,350,859         10,603,605        5,252,746        Transfers out (77,435,300)     (78,052,193)     (78,417,690)       (365,497)            Total other financing sources (uses) (71,955,016)     (72,424,547)     (67,699,500)       4,725,047          Net change in fund balance (4,748,200)       (6,412,148)       103,167              6,515,315          Fund balance at beginning of year 50,131,500      51,774,574      51,774,574        ‐                          Fund balance at end of year 45,383,300$     45,362,426$     51,877,741$      6,515,315$       Reconciliation:     Net change in fund balance, budgetary basis 103,167$                     Ad valorem tax refunds not budgeted (18,255)                        Net change in fair value of investments (30,369)                        Miscellaneous revenue related to indirect cost (7,124,000)                  Miscellaneous revenue related to Sheriff assets not budgeted 254,369                       Change in inventory 342,382                       General government expenditures related to indirect cost 7,124,000                    Public safety expenditures for multi‐period projects not budgeted (867,135)                      Public safety capital outlay funded by outside sources not budgeted (864,148)                      Insurance proceeds related to Sheriff assets not budgeted 396,047                       Proceeds from sale of Sheriff assets not budgeted 213,732                       Advances budgeted as transfers (147,900)                  Net change in fund balance, GAAP basis (618,110)$           The notes to the financial statements are an integral part of this statement.  STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 COLLIER COUNTY, FLORIDA GENERAL FUND 26 Original Final Budget Budget Actual Variance Revenues: Taxes 1,124,200$        1,124,200$           1,124,200$          ‐$                          Charges for services ‐                          103,050                81,037                  (22,013)                Interest income 2,200                 2,200                    10,540                  8,340                   Miscellaneous 150,000             150,000                122,246              (27,754)                Total revenues 1,276,400         1,379,450            1,338,023           (41,427)                Expenditures: Economic environment Personal services 273,700             308,700                292,981              15,719                 Operating 243,100             248,835                163,997              84,838                 Capital outlay ‐                          103,050                90,042                  13,008                 Total expenditures 516,800             660,585                547,020              113,565               Excess of revenues over expenditures 759,600             718,865                791,003              72,138                 Other financing sources (uses): Transfers in 136,800             136,800                136,800              ‐                            Transfers out (858,500)           (858,500)               (858,500)             ‐                            Total other financing sources (uses) (721,700)           (721,700)               (721,700)             ‐                            Net change in fund balances 37,900               (2,835)                   69,303                  72,138                 Fund balances at beginning of year 431,700             447,435                447,435              ‐                            Fund balances at end of year 469,600$           444,600$               516,738$             72,138$               Reconciliation:   Net change in fund balance, budgetary basis  69,303$                 Net change in fair value of investments (411)                       Change in fair value of inventory for resale (2,155,231)           Net change in fund balance, GAAP basis (2,086,339)$         The notes to the financial statements are an integral part of this statement.  COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 27 Original Final Budget Budget Actual Variance Revenues: Taxes 440,300$           440,300$               440,300$             ‐$                          Interest income 800                     800                        3,170                    2,370                   Miscellaneous ‐                          ‐                             186                       186                       Total revenues 441,100             441,100                443,656              2,556                   Expenditures: Economic environment Personal services 261,200             261,200                229,817              31,383                  Operating 264,900             264,900                152,072              112,828                Total expenditures 526,100             526,100                381,889              144,211                Excess (deficit) of revenues    over (under) expenditures (85,000)              (85,000)                 61,767                 146,767                Other financing sources (uses): Transfers in 85,000               85,000                  85,000                 ‐                            Transfers out (30,000)              (222,708)               (30,000)               192,708                Total other financing sources (uses) 55,000               (137,708)               55,000                 192,708                Net change in fund balances (30,000)              (222,708)               116,767              339,475                Fund balances at beginning of year 227,600             420,308                420,308              ‐                            Fund balances at end of year 197,600$           197,600$               537,075$             339,475$             Reconciliation:   Net change in fund balance, budgetary basis  116,767$              Net change in fair value of investments (138)                       Advances budgeted as transfers  30,000                  Net change in fund balance, GAAP basis  146,629$              The notes to the financial statements are an integral part of this statement.   COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 28 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Current assets: Cash and investments 145,146,827$     26,023,911$   11,214,985$  2,310,750$    184,696,473$     58,068,287$   Receivables: Trade, net 10,420,279         861,341          2,364,835      38,304           13,684,759         4,780              Special assessments 31,435                  ‐‐‐31,435 ‐ Interest 236,864 145,052          18,567           4,784             405,267               84,859            Due from other funds ‐42,499            ‐39,295           81,794 69,730            Due from other governments 376,002 17,744            29,270           1,048             424,064               23,773            Deposits ‐‐‐‐‐51,108            Inventory 5,601,051            ‐46,312           71,697           5,719,060            367,556          Prepaid costs ‐‐110,363         ‐110,363               43,712            Restricted assets: Cash and investments 5,907,020           72,703            143,558         357,831         6,481,112            ‐ Trade, net 48,571                 ‐‐‐48,571 ‐ Interest receivable 33,714                 ‐244 ‐33,958 ‐ Due from other governments ‐‐‐4,267,562      4,267,562            ‐ Total current assets 167,801,763       27,163,250    13,928,134   7,091,271      215,984,418       58,713,805    Noncurrent assets: Restricted assets: Cash and investments 31,845,588         ‐‐‐31,845,588         ‐ Receivables: Special assessments 10,419                  ‐‐‐10,419 ‐ Advances to other funds 1,006,761           948,789          ‐‐1,955,550            ‐ Capital assets: Land and nondepreciable capital assets 68,363,678         8,274,776      ‐9,223,229      85,861,683         ‐ Depreciable capital assets, net 740,451,861       22,969,104    6,963,025      48,552,493   818,936,483       16,434,855    Total noncurrent assets 841,678,307       32,192,669    6,963,025      57,775,722   938,609,723       16,434,855    Total assets 1,009,480,070    59,355,919    20,891,159   64,866,993   1,154,594,141    75,148,660    Deferred charges on debt refundings 4,977,541           ‐‐‐4,977,541            ‐ Deferred outflows of resources related to pensions 7,011,433           559,638          10,336,288   292,463         18,199,822         1,838,876       Total deferred outflows of resources 11,988,974         559,638          10,336,288   292,463         23,177,363         1,838,876       (Continued) COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2016 Business‐type Activities Enterprise Funds ASSETS DEFERRED OUTFLOWS OF RESOURCES 29 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds LIABILITIES Current liabilities: Accounts payable 8,589,928           2,375,921      426,816         459,241         11,851,906         1,210,772       Wages payable 884,037              74,541            639,622         32,749           1,630,949            239,758          Retainage payable 1,097,148           4,121              ‐                      ‐                      1,101,269            ‐                       Due to other funds ‐                          500                 ‐                      591,802         592,302               3,554,292       Due to other governments 278                      113                 ‐                      3,483             3,874                   14                    Unearned revenues ‐                          ‐                       ‐                      52,983           52,983                 10,473            Self‐insurance claims payable ‐                          ‐                       ‐                      ‐                      ‐                           6,283,371       Compensated absences 1,523,844           133,793          532,764         34,862           2,225,263            416,332          Capital lease obligations ‐                          ‐                       382,180         ‐                      382,180               ‐                       Interest payable 1,530,753           ‐                       ‐                      ‐                      1,530,753            ‐                       Net pension liability 218,773              17,738            109,387         10,643           356,541               51,442            Bonds and loans payable 7,085,210           ‐                       ‐                      ‐                      7,085,210            ‐                       Liabilities payable from restricted assets:  Accounts payable ‐                          ‐                       115,397         1,878,033      1,993,430            ‐                       Wages payable ‐                          ‐                       ‐                      2,039             2,039                   ‐                       Retainage payable ‐                          ‐                       ‐                      127,662         127,662               ‐                       Due to other governments ‐                          ‐                       ‐                      38,011           38,011                 ‐                       Refundable deposits 69,025                 ‐                       ‐                      9,826             78,851                 ‐                       Unearned revenue ‐                          72,703            ‐                      20,602           93,305                 ‐                       Notes payable 64,255                 ‐                       ‐                      ‐                      64,255                 ‐                       Bonds and loans payable 5,827,937           ‐                       ‐                      ‐                      5,827,937            ‐                       Total current liabilities 26,891,188         2,679,430      2,206,166      3,261,936      35,038,720         11,766,454    Noncurrent liabilities: Self‐insurance claims payable ‐                          ‐                       ‐                      ‐                      ‐                           1,618,799       Compensated absences 380,961              33,448            133,191         8,715             556,315               104,084          Capital lease obligations ‐                          ‐                       864,848         ‐                      864,848               ‐                       Net OPEB obligation ‐                          ‐                       ‐                      ‐                      ‐                           3,875,092       Net pension liability 18,326,087         1,523,878      24,142,675   784,747         44,777,387         4,511,786       Landfill post‐closure liability ‐                          1,883,503       ‐                       ‐                      1,883,503             ‐                       Bonds and loans payable, net 167,409,866        ‐                        ‐                       ‐                      167,409,866        ‐                       Total noncurrent liabilities 186,116,914       3,440,829      25,140,714   793,462         215,491,919       10,109,761    Total liabilities 213,008,102       6,120,259      27,346,880   4,055,398      250,530,639       21,876,215    DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 157,330              12,524            256,125         6,391             432,370               41,925            NET POSITION Net investment in capital assets 630,093,025       30,965,458    5,500,423      56,441,171   723,000,077       16,299,166    Restricted for grants and other purposes ‐                          ‐                       28,405           3,868,060      3,896,465            ‐                       Restricted for growth related capital expansion 23,507,009         ‐                       ‐                      ‐                      23,507,009         ‐                       Restricted for renewal and replacement 300,000              ‐                       ‐                      ‐                      300,000               ‐                       Restricted for debt service 8,056,609           ‐                       ‐                      ‐                      8,056,609            ‐                       Unrestricted 146,346,969       22,817,316    (1,904,386)    788,436         168,048,335       38,770,230    Total net position 808,303,612$     53,782,774$   3,624,442$    61,097,667$  926,808,495       55,069,396$   1,238,450             Net position of Business‐type Activities 928,046,945$      The notes to the financial statements are an integral part of this statement.  Cumulative consolidation adjustment for internal service fund activities related to enterprise funds   Business‐type Activities Enterprise Funds COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2016 30 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Operating revenues: Charges for services 123,481,745$   41,765,715$  13,079,506$  4,238,118$     182,565,084$    82,556,667$          Miscellaneous 374,406              152,579        81,512           59,365           667,862              296,456                 Total operating revenues 123,856,151      41,918,294   13,161,018    4,297,483      183,232,946      82,853,123           Operating expenses: Personal services 29,612,893        2,507,503     21,815,500    1,285,850      55,221,746        7,905,317             Operating 54,860,727        35,530,396   3,510,255      11,243,548    105,144,926      73,541,015           Depreciation and amortization 42,093,271        1,329,689     1,142,629      3,187,838      47,753,427        2,189,294             Total operating expenses 126,566,891      39,367,588   26,468,384    15,717,236    208,120,099      83,635,626           Operating income (loss) (2,710,740)         2,550,706     (13,307,366)  (11,419,753)  (24,887,153)       (782,503)               Non‐operating revenues (expenses): Operating grants and contributions ‐112,552        65,176           4,256,647      4,434,375           ‐ Interest income 1,614,522          277,154        95,032           23,683           2,010,391           451,556                 Insurance reimbursement 185,229              9,202             5,511              ‐199,942              579,550                 Interest expense (3,205,541)         ‐(18,158)          ‐(3,223,699)         ‐ Gain (loss) on disposal of capital assets (977,109)            45,913           125,586         20,111           (785,499)             358,267                 Total non‐operating revenues (expenses)  (2,382,899)         444,821        273,147         4,300,441      2,635,510           1,389,373             Income (loss) before contributions  and transfers (5,093,639)         2,995,527     (13,034,219)  (7,119,312)    (22,251,643)       606,870                 Capital grants and contributions 22,737,854        158 ‐2,824,686      25,562,698        ‐ Transfers in 14,200                180,900        15,786,000    4,507,153      20,488,253        3,098,000             Transfers out (5,756,153)         (642,434)       ‐(34,821)          (6,433,408)         (1,276,600)            Total transfers and contributions  16,995,901        (461,376)       15,786,000    7,297,018      39,617,543        1,821,400             Changes in net position 11,902,262        2,534,151     2,751,781      177,706         17,365,900        2,428,270             Net position ‐ beginning 796,401,350      51,248,623   872,661         60,919,961    52,641,126           Net position ‐ ending 808,303,612$   53,782,774$  3,624,442$     61,097,667$  55,069,396$          Consolidation adjustment for internal service fund activities related to enterprise funds (197,159)              Change in net position of Business‐type Activities  17,168,741$       The notes to the financial statements are an integral part of this statement.  Business‐type Activities Enterprise Funds  COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 31 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Cash flows from operating activities: Cash received for services 123,416,206$   41,909,040$  12,242,706$   4,286,186$      181,854,138$   ‐$ Cash received from other funds for services ‐‐‐‐ ‐77,534,297    Cash received from employees for services ‐‐‐‐ ‐7,129,276      Cash received from other governments  for services ‐‐‐‐ ‐246,199         Cash received from refundable deposits 90,000               825,694        ‐2,500               918,194             ‐ Cash received from retirees for services ‐‐‐‐ ‐1,504,942      Cash payments on behalf of retirees ‐‐‐‐ ‐(1,071,796)     Cash payments for goods and services (50,768,172)      (33,897,807) (2,253,157)      (8,102,923)      (95,022,059)      (69,476,073)  Cash payments to employees (29,066,706)      (2,476,649)    (21,039,194)   (1,271,074)      (53,853,623)      (7,809,628)     Cash payments for interfund services (6,860,971)        (1,588,857)    (1,210,379)      (2,616,089)      (12,276,296)      (747,785)        Cash payments on refundable deposits (94,000)              (819,918)       ‐(2,121)             (916,039)            ‐ Net cash provided by (used for)   operating activities 36,716,357       3,951,503     (12,260,024)   (7,703,521)      20,704,315       7,309,432      Cash flows from non‐capital financing activities:  Cash received from operating grants ‐108,773        65,176             3,758,262       3,932,211          ‐ Cash transfers from other funds 511,571             3,339,400     15,786,000     7,281,249       26,918,220       3,098,000      Cash transfers to other funds (5,756,153)        (3,172,082)    ‐(3,260,483)      (12,188,718)      (1,276,600)     Net cash provided by (used for) non‐capital  financing activities (5,244,582)        276,091        15,851,176     7,779,028       18,661,713       1,821,400      Cash flows from capital and related financing activities: System development charges 13,664,329        ‐‐‐ 13,664,329       ‐ Special assessment collections 98 ‐‐‐ 98 ‐ Receipts from insurance reimbursements 185,229             9,202             5,511               ‐ 199,942             1,813,569      Proceeds from loans 500,000             ‐‐‐ 500,000             ‐ Proceeds from disposal of capital assets 202,448             54,600           21,932             26,537             305,517             358,997         Proceeds from capital grants 21,795               ‐‐2,514,710       2,536,505          ‐ Payments for capital acquisitions (22,727,890)      (2,232,945)    (255,609)         (2,751,274)      (27,967,718)      (3,261,755)     Principal payments on state revolving loans (8,768,456)        ‐‐‐ (8,768,456)        ‐ Principal payments on bonds (3,986,420)        ‐‐‐ (3,986,420)        ‐ Payments to escrow agents (1,939,376)        ‐‐‐ (1,939,376)        ‐ Principal payments on leases ‐‐(299,097)         ‐ (299,097)            ‐ Interest and fiscal agent fees paid (4,970,362)        ‐(18,158)           ‐ (4,988,520)        ‐ Net cash used for capital and related  financing activities (27,818,605)      (2,169,143)    (545,421)         (210,027)         (30,743,196)      (1,089,189)     Cash flows from investing activities:  Interest on investments 1,776,561          296,638        97,002             25,656             2,195,857          477,279         Net cash provided by investing activities 1,776,561          296,638        97,002             25,656             2,195,857          477,279         Net increase (decrease) in cash and  investments 5,429,731          2,355,089     3,142,733       (108,864)         10,818,689       8,518,922      Cash and investments, October 1, 2015 177,469,704     23,741,525   8,215,810       2,777,445       212,204,484     49,549,365    Cash and investments, September 30, 2016 182,899,435$   26,096,614$  11,358,543$   2,668,581$      223,023,173$   58,068,287$   Current cash and investments 145,146,827$   26,023,911$  11,214,985$   2,310,750$      184,696,473     58,068,287$   Current cash and investments‐restricted 5,907,020          72,703           143,558          357,831          6,481,112          ‐ Noncurrent cash and investments‐restricted  31,845,588       ‐‐‐ 31,845,588       ‐ Cash and investments, September 30, 2016 182,899,435$   26,096,614$  11,358,543$   2,668,581$      223,023,173$   58,068,287$   (Continued) Business‐type Activities Enterprise Funds  PROPRIETARY FUNDS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 32 Governmental Activities ‐ Emergency Internal County Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds Operating income (loss)(2,710,740)$      2,550,706$    (13,307,366)$  (11,419,753)$  (24,887,153)      (782,503)$       Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:   Depreciation expense 41,583,299       1,329,689     1,142,629       3,187,838       47,243,455       2,189,294      Amortization of bond insurance costs 4,289 ‐‐‐ 4,289 ‐ Amortization of deferred charges on debt  refundings 505,683             ‐‐‐ 505,683             ‐ Net changes in assets and liabilities:  Trade receivable (316,391)            42,990           (887,956)         (1,967)             (1,163,324)        51,145            Due from other funds 15,400               (406)               2,743               1,377               19,114               4,228              Due from other governments (127,131)            (13,965)         ‐(776) (141,872)            4,073              Inventory 113,432             ‐(11,094)           19,097             121,435             21,929            Prepaid costs ‐‐49,050             101,375          150,425             (43,712)          Accounts payable (2,683,318)        12,956           (21,593)           400,814          (2,291,141)        237,045         Retainage payable (210,128)            ‐‐‐ (210,128)            ‐ Wages payable (567,959)            (56,720)         (546,900)         (26,682)           (1,198,261)        (153,421)        Due to other funds ‐15,880           ‐(6,395)             9,485 3,735,848      Due to other governments (225) (504)               ‐93 (636) (30,809)          Compensated absences 163,846             5,451             14,816             2,645               186,758             18,715            Refundable deposits (4,000)                ‐‐(5,927)             (9,927)                ‐ Unearned revenue ‐5,776             ‐5,927               11,703               3,529              Self‐insurance claims payable ‐‐‐‐ ‐942,736         Net OPEB obligation ‐‐‐‐ ‐880,940         Net pension liability and related deferred   outflows/inflows 950,300             82,123           1,305,647       38,813             2,376,883          230,395         Landfill post closure liability ‐(22,473)         ‐‐ (22,473)              ‐ Total adjustments 39,427,097       1,400,797     1,047,342       3,716,232       45,591,468       8,091,935      Net cash provided by (used for)  operating activities 36,716,357$     3,951,503$    (12,260,024)$  (7,703,521)$    20,704,315$     7,309,432$     Non‐cash investing, capital and financing activities:  Change in fair value of investments (59,622)$            (9,606)$          (2,752)$            45$(71,935)$            30,749$          Developer infrastructure contributions 8,941,251          ‐‐‐ 8,941,251          ‐ Contributed capital assets 129,754             158 104,500          681,603          916,015             ‐ New capital lease obligations ‐‐(472,158)         ‐ (472,158)            ‐ Change in capital related grant receivable ‐‐‐371,629          371,629             ‐ Change in special assessment receivable 1,282 ‐‐‐ 1,282 ‐ Bond proceeds 59,653,146       ‐‐‐ 59,653,146       ‐ Payment to escrow agent (59,521,338)      ‐‐‐ (59,521,338)      ‐ Underwriters discount (131,808)            ‐‐‐ (131,808)            ‐ Capital related accounts payable 2,812,036          274,301        215,574          1,192,637       4,494,548          135,689         The notes to the financial statements are an integral part of this statement. Business‐type Activities Enterprise Funds  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 33 Agency Funds Cash and investments 38,655,974$         Receivables: Interest 9,393  Other 28,888  Total assets 38,694,255$         LIABILITIES Due to other governments 7,787,297$           Due to individuals 621,816                 Refundable deposits 30,120,466           Due to special assessment holders 164,676                 Total liabilities 38,694,255$         The notes to the financial statements are an integral part of this statement.   ASSETS COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2016 34 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016                  INDEX       NOTE  PAGE NUMBER 1 Summary of Significant Accounting Policies 36 2 Cash and Investments 48 3 Trade Receivables 51 4 Interfund Payables and Receivables 52 5 Capital Assets 53 6 Long‐Term Debt 54 7 Conduit Debt Obligations 61 8 Defined Benefit Pension Plans 61 9 Defined Contribution Plan 68 10 Transfers  69 11 Net Position/Fund Balances 69 12 Risk Management  72 13 Other Postemployment Benefits 73 14 Landfill Liability  76 15 Significant Contingencies  77 16 Significant Commitments  78 17 Fund Deficits  79 18 Subsequent Event 79    35 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles  generally accepted in the United States of America for governmental entities (GAAP).  The more significant of the County’s  accounting policies are described below.  THE REPORTING ENTITY  Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No.  14, The Financial Reporting Entity, as amended.  The GASB is the standard setting body for the establishment of GAAP in  governmental entities.  Determination of the financial reporting entity of the County is founded upon the objective of  accountability.  These financial statements include the County government (the primary government) and two types of legally  separate component units (blended and discrete).  Component units are legally separate agencies that the primary government  is financially accountable for or organizations which should be included in the reporting entity because of the nature and  significance of their relationship with the primary government.   Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board  and impose its will on the organization or there is a potential specific financial benefit/burden relationship.  Financial  accountability also exists if an organization is fiscally dependent and there is potential specific financial benefit/burden  relationship. The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923  by the Florida State Legislature.  The County is governed by a Board of County Commissioners which consists of five members  elected within single member districts.  In addition, there are five separately elected Constitutional Officers:  the Tax Collector,  Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections.  The Constitutional Officers  are elected county wide.  Under the direction of the Clerk of the Circuit Court and Comptroller, the Finance and Accounting  Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections  and the Clerk of the Circuit Court and Comptroller.  The Tax Collector, Property Appraiser and Sheriff each maintain their own  accounting systems.  For financial reporting purposes, the operations of the Board of County Commissioners and the  Constitutional Officers are combined and presented as the primary government.  The County's blended component units consist of organizations whose respective governing Boards are composed entirely of  the Board of County Commissioners serving ex‐officio.  These entities are legally separate, however the County has the financial  and operational responsibility for these component units.  In accordance with GASB Statement No. 14, as amended, these  organizations are reported as if they were part of the County's operations.  Collier County Water and Sewer District (District) ‐  The District was established by Chapter 88‐499, Laws of Florida, as amended  by Chapter 03‐353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County.    Collier County Community Redevelopment Agency (CRA) ‐ The CRA was established by Resolution 2000‐82 to benefit blighted  areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas.  These two  redevelopment areas are geographically separate and distinct.  Collier County Airport Authority ‐ The Board of County Commissioners was established as the governing body of the Airport  Authority by Ordinance 2010‐10.  The Airport Authority is responsible for construction, improvement, equipment, development,  regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities.  Collier County Metropolitan Planning Organization (MPO) ‐ The Authority was created in 1981 by Collier County Resolution 81‐ 222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes.  The purpose of the MPO  is to provide planning for all modes of travel in order to benefit the citizens of Collier County.  The MPO is reported as part of  the Grants and Shared Revenues fund.   36 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  The County's discretely presented component units consist of organizations whose board members are appointed by the Board  of County Commissioners.  The County is able to impose its will on these entities because of its ability to remove appointed  members from the component units' Boards.  The Authorities maintain their own financial records, but do not issue separate  financial statements.  GASB No. 14, as amended, requires that the financial data of the following organizations be reported in  separate columns to emphasize that they are legally separate from the County.    Collier County Housing Finance Authority ‐ The Authority was formed in 1980 by Collier County Ordinance 80‐66 for the  purpose of stimulating the construction of residential housing for low and moderate income families through the use of public  financing.  Their financial position and results of operations are reported in the accompanying financial statements and the  outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”.   Collier County Health Facilities Authority ‐ The Authority was established in 1979 by Collier County Ordinance 79‐95 for the  purpose of assisting health facilities in the acquisition, construction and financing of projects within the County.  Their financial  position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt  issued by the Authority is disclosed in Note 7, “Conduit Debt Obligations”.   Collier County Industrial Development Authority ‐ The Authority was created in 1978 by Collier County Resolution 78‐94,  rescinded and replaced by Resolution 79‐34, to facilitate the financing of projects that promote economic growth and increase  opportunities for employment in the County.  Their financial position and results of operations are reported in the  accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 7, “Conduit  Debt Obligations”.   Collier County Educational Facilities Authority ‐ The Authority was created in 1999 by Collier County Resolution 99‐17 to assist  institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results  of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority  is disclosed in Note 7, “Conduit Debt Obligations”.   Financial information on the individual component units can be obtained from their respective administrative offices or from  the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller.  Administrative Offices Collier Water and Sewer District  3339 East Tamiami Trail, Suite #302  Naples, Florida 34112  Collier County Airport Authority 2005 Mainsail Drive, Suite #1  Naples, Florida 34114  Collier County Metropolitan Planning Organization 2885 South Horseshoe Drive  Naples, Florida 34104  Immokalee Community Redevelopment Agency 750 South 5th Street  Immokalee, Florida 34142  Bayshore Gateway Community Redevelopment Agency 3570 Bayshore Drive, Unit #102  Naples, Florida 34112  Collier County Health Facilities Authority Collier County Housing Finance Authority  Collier County Industrial Development Authority  Collier County Educational Facilities Authority  5100 Tamiami Trail North, #103  Naples, Florida  34103  37 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  Certain separate legal entities within the County are autonomous organizations with their own governmental powers and  constituencies.  These entities, which are not included in these financial statements, are as follows:  The Cities of Naples, Marco Island and Everglades ‐ The Cities of Naples, Marco Island and Everglades are in the boundaries of  Collier County. Each of these entities has a separately elected board and separate budgeting, accounting and reporting  requirements.  Collier County School Board ‐ The Collier County School Board operates countywide and is completely separate and  autonomous.  The School Board has five elected board members and a superintendent of schools and operates under  regulations prescribed by the State Board of Education and the Florida Statutes.  It levies its own taxes and receives part of its  income from the State of Florida.    GOVERNMENT‐WIDE AND FUND FINANCIAL STATEMENTS  The basic financial statements are made up of the government‐wide financial statements and fund financial statements. Both  of these sets of financial statements distinguish between the governmental and business‐type activities of Collier County.  The  government‐wide financial statements consist of a Statement of Net Position and a Statement of Activities.  These statements  report on the financial condition of Collier County, at the reporting entity level.  Internal balances represent net amounts due  between the governmental and business‐type activities.  As a general rule, the effect of interfund activity has been eliminated  from the government‐wide financial statements with the exception of interfund services provided and used.  The internal  service activity has also been eliminated from the government‐wide financial statements.  Aggregate internal service fund  activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not included in  these presentations as their assets do not represent amounts that are available for Collier County government operations.  The  Statement of Net Position reports all financial and capital resources of Collier County’s governmental and business‐type  activities.  Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources,  and is shown in three categories:  net investment in capital assets; restricted net position and unrestricted net position.  The  Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree  the particular program has been self‐supporting.  Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly  identifiable to a particular function.  The effect of indirect expense allocations has been eliminated in the government‐wide  financial statements.  Depreciation expense for capital assets that can specifically be identified with a function is recorded as a  direct expense of that function.  Depreciation for capital assets that serve all functions is recorded as a direct expense of the  general government function on the government‐wide Statement of Activities. All interest on general long term debt is  considered indirect and is reported separately in the government‐wide Statement of Activities.  Program revenues are reported in the following three categories:  charges for services, operating grants and contributions and  capital grants and contributions.  Charges for services are amounts charged to customers for a particular service, and are netted  against the cost of the relevant program.  Internal charges for indirect services are allocated across functions as direct expenses.   Grants and contributions refer to revenues restricted for capital or operational use in a particular program.  The general revenue  category encompasses all other revenue types and represents revenue collected to support all functions of Collier County  government.  The fund financial statements follow the government‐wide statements and report more detailed information about operations  of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds.   Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are  reconciliations explaining the differences between the governmental fund presentation and the government‐wide  presentation.      38 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  BASIS OF PRESENTATION  The following are reported as major governmental funds:  General Fund – the General Fund is the general operating fund of the County.  All general tax revenues and  other receipts that are not accounted for in other funds are accounted for in the General Fund.  The general  operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of  Elections and Tax Collector are presented together with the Board of County Commissioners' general  operating fund in the County’s consolidated General Fund.  Bayshore/Gateway and Immokalee Community Redevelopment Area Special Revenue Funds – the  Redevelopment funds are used to account for the receipt and expenditure of tax increment revenues  generated by the Bayshore/Gateway and Immokalee Community Redevelopment Areas.     The following are reported as major enterprise funds:  County Water and Sewer Fund – the County Water and Sewer fund is used to account for the provision of  water, wastewater and effluent services to certain portions of the County’s unincorporated area.  Solid Waste Disposal Fund – the Solid Waste Disposal fund is used to account for the provision of solid waste  disposal services to users throughout the County.  Emergency Medical Services – the Emergency Medical Services fund is used to account for the provision of  emergency ambulance and paramedical services to users throughout the County.  Collier County also maintains the following nonmajor fund types:  Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue  sources that are restricted or committed to expenditure for specific purposes other than debt service or  capital projects.  Permanent Fund – Permanent funds are used to account for resources that were legally restricted to the  extent that only earnings and not principal may be spent.  Collier County operates a permanent fund to defray  costs associated with the maintenance and management of conservation land.    Debt Service Funds – Debt service funds are used to account for the accumulation of resources that are  restricted, committed or assigned to expenditure for principal and interest related to long‐term obligations.  Capital Project Funds – Capital project funds are used to account for the accumulation of resources that are  restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction  of capital facilities and other capital assets.   Enterprise Funds – Enterprise funds are used to account for activities for which a fee is charged to external  users for goods or services.  Internal Service Funds – Internal service funds are used to account for the provision of goods and services by  one department to other departments within the County or to other governmental units on a cost  reimbursement basis.  Collier County currently reports the following Internal Service Funds:  Self Insurance,  Sheriff’s Self Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology.  39 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  Agency Funds – Agency funds are custodial in nature and do not report the results of operations (assets equal  liabilities).  Agency funds are clearing accounts for assets held by the government as an agent for individuals,  private organizations or other governments.  The Board of County Commissioners, Sheriff, Clerk of the Circuit  Court and Comptroller and Tax Collector all maintain agency funds.    MEASUREMENT FOCUS AND BASIS OF ACCOUNTING  Measurement focus indicates the type of resources being measured such as current financial resources (current assets less  current liabilities) or economic resources (all assets and liabilities).  Basis of accounting refers to when revenues and  expenditures or expenses are recognized in the accounts and reported in the financial statements.  The basis of accounting  relates to the timing of the measurements made regardless of the measurement focus applied   The government‐wide and proprietary fund financial statements are reported using the economic resources measurement  focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation  of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues)  and decreases (i.e., expenses) in net position.  Under the accrual basis of accounting, revenues are recognized in the period in  which they are earned and measurable, and expenses are recognized in the period incurred.  Grant and similar revenues are  recognized when eligibility requirements are met.  Proprietary funds distinguish operating revenues and expenses from non‐ operating items.  Operating revenues and expenses generally result from providing services and producing and delivering goods  in connection with a proprietary fund’s principal ongoing operations.  Operating expenses for proprietary funds include the  cost of sales and services, administrative expenses and depreciation on capital assets.  All revenues and expenses not meeting  this definition are reported as non‐operating revenues and expenses.  Governmental fund financial statements are reported using the current financial resources measurement focus and the  modified accrual basis of accounting.  With this measurement focus, only current assets and current liabilities generally are  included on the balance sheet.  Operating statements of these funds present increases (i.e., revenues and other financing  sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of  accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period.   Generally, revenues are considered available when they are collected within the current period or within 60 days after the end  of the fiscal year.  Grant revenues are an exception and are considered available when eligibility requirements are met.  Primary  revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and  certain taxes and intergovernmental revenues.  Property taxes are discussed later in Note 1.  Expenditures are recorded when  the related fund liability is incurred.  Exceptions to this general rule include accrued compensated absences and principal and  interest on long‐term debt.   When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses,  and then unrestricted as needed.  When using the unrestricted resources, committed amounts would be reduced first, followed  by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of  those unrestricted fund balance classifications could be used.   40 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  BUDGETS AND BUDGETARY DATA  The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the  County:  1)Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year.  The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2)Within eighty days of the certification of value, but not earlier than sixty‐five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate.  At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled‐back rate.  If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3)Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4)A public hearing is held by the Board to finalize the budget and adopt a millage rate.  This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote.  The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements.   This is followed by the approval and ratification of the final budget. 5)The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6)The County Manager approves interdepartmental budget changes within the same fund and division of $50,000 or less that do not impact reserves or recognize revenue.  All other budgetary changes must be approved by the Board of County Commissioners as matter of policy.  The initial adopted budget was amended in accordance with Florida Statutes. 7)Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful.  However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have  been legally adopted by the Board for all Board departments except for the agency funds and the Impact Fees Escrow special  revenue fund.  The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board.   The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35, Florida  Statutes.  41 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the  Board.   The Clerk of Court’s budget for court related functions is prepared according to Section 28.36 Florida Statutes and  submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission.  Budgets are adopted for all governmental departments except as described in the previous paragraph.  These budgets are  adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non‐budgeted revenues  and expenditures and mark to market activity on investments.  All unencumbered appropriations lapse at the end of the current  year.  For further information regarding encumbrances, refer to Note 16 on page 78.  Capital project costs are budgeted in the year they are anticipated to be obligated.  In subsequent years, the unused budget is  reappropriated until the project is completed.  Proprietary funds are budgeted on a basis consistent with generally accepted  accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements.   Estimated beginning fund balances are considered in the budgetary process.  For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds  statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial  statements.  Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to  actual statements.   CASH AND INVESTMENTS  Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies.  The County’s current  investment policy, as amended, was adopted December 9, 2014 by Resolution 2014‐260 and is consistent with the  requirements of that statute.  This investment policy authorized the following investments:    1)U.S. Treasury and Government Guaranteed – U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2)Federal Agency/Government Sponsored Enterprise – Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3)Corporates – U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non‐profit or other entity; 4)Municipals – Obligations, including both taxable and tax‐exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5)Agency Mortgage Backed Securities – Mortgage backed securities, backed by residential, multi‐family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass‐throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 6)Non‐Negotiable Certificates of Deposit ‐  Non‐negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 42 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    7) Depository Bank Account – Negotiated Order of Withdrawal accounts in banks organized under the laws of this state  or in national banks organized under the laws of the United States and doing business in this state, provided that any  such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes;    8) Commercial Paper – U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation,  company, financial institution, trust or other entity, including both unsecured debt and asset backed programs;    9) Repurchase Agreements – Repurchase agreements must be governed by written agreement, counterparty must be a  Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank.  Acceptable underlying securities  must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or  U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102% (or 100% if  the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential;    10) Money Market Funds – Shares in open end and no load money market mutual funds, provided such funds are  registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange  Commission Rule 2a‐7;    11) Fixed‐Income Mutual Funds – Shares on open end and no load fixed income mutual funds whose underlying  investments would be permitted for purchase under the investment policy and all its restrictions;    12) Local Government Investment Pools – State, local government or privately sponsored investment pools that are  authorized pursuant to state law;    13) The Florida Local Government Surplus Funds Trust Funds (Florida Prime).      The County maintains a cash and investment pool that is available for use by all funds.  Investment income is allocated to  individual funds based upon their average daily balance in the cash and investment pool.  Each fund’s individual equity in the  County’s cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time  without notice or penalty.  The statement of cash flows for the proprietary funds also uses this methodology.      Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service.   Investments in the Local Government Surplus Funds Trust Fund (Florida Prime) are stated at fair value.  The County categorizes  its fair value measurements within the fair value hierarchy established in Governmental Accounting Standards Board Statement  No. 72, “Fair Value Measurements and Application”.    Florida PRIME is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure  all of the investments at amortized cost. Therefore, the fair value of the County’s position in the pool is the same as the value  of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist  in physical or book entry form. Throughout the year, and as of September 30, 2016, Florida PRIME contained certain floating  and adjustable rate securities. These investments represented 27.6 percent of Florida PRIME’s portfolio at September 30, 2016.    In accordance with Governmental Accounting Standards Board Statement No. 79, “Certain External Investment Pools and Pool  Participants”, as a participant in a qualifying external investment pool, the County should disclose the presence of any  limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the  qualifying external investment pool’s authority to impose liquidity fees or redemption gates) in notes to the financial  statements.       43 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of  each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the  Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of  the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys  entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the  Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government  Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director  has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency  meeting before the expiration of the 48‐hour moratorium on contributions and withdrawals, the moratorium may be extended  by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree  with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must  convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit  set by the Trustees exceed 15 days."   With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal,  subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has  been made.  As of September 30, 2016, there were no redemption fees or maximum transaction amounts, or any other requirements that  serve to limit a participant's daily access to 100 percent of their account value.  RECEIVABLES  All trade receivables are reported net of an allowance for uncollectibles, which is generally a year except for Emergency Medical  Services receivable which uses an estimated uncollectible percentage.  INVENTORIES AND PREPAID COSTS  Inventory is valued at cost using the first‐in, first‐out method.  Inventory in the governmental funds consists of supplies held  for consumption.  The cost is recorded as an expenditure at the time inventory items are consumed rather than when  purchased.  Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid  items.  Inventories and prepaid costs reported within governmental funds are classified as non‐spendable, which indicates that  they do not constitute available resources.  Inventories and prepaid costs in the government‐wide and proprietary fund  financial statements are reported as an expense when consumed.   Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell.   The value of these properties includes the original purchase price plus the cost of any rehabilitation.  Inventory held for resale  of $9,796,692 is classified as restricted, which indicates that they do not constitute available resources.  CAPITAL ASSETS  Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater  systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the  governmental or business‐type activities columns in the government‐wide financial statements.  Capital assets are reported at  cost where historical records are available and at estimated fair value in the absence of historical cost records.  Capital  contributions are recorded at their estimated fair value on the date donated.    44 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED    The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year.  Betterments  and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized.   Expenditures for maintenance and repairs are charged to operating expenses.  The cost of capital assets retired or sold, together  with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is  credited or charged to earnings in the government‐wide financial statements and proprietary fund financial statements.    Depreciation is calculated using the straight‐line method.  The estimated useful life of the various classes of depreciable capital  assets is as follows:    Capital Asset Class Estimated Useful Life  Buildings 20‐45 years Infrastructure 3‐30 years Improvements other than buildings 4‐45 years Machinery and equipment 3‐20 years   CAPITAL LEASE OBLIGATIONS    In the government‐wide financial statements and proprietary fund financial statements capital lease obligations and the related  cost of assets acquired are reflected in the Statement of Net Position.  For capital lease obligations originating in governmental  funds, an expenditure for the asset and the offsetting other financing source is reflected in the fund financial statements in the  year of inception.    DEFERRED OUTFLOWS/INFLOWS OF RESOURCES    In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources.  This  separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to  a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred  outflows of resources reported in the County’s statement of net position represent changes in actuarial assumptions, the net  difference between projected and actual earnings on investments, changes in the proportion and differences between the  County’s contributions and proportionate share of contributions and the County’s contributions subsequent to the  measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program.   In addition, deferred outflows related to the difference between expected and actual economic experience relating to the  Florida Retirement System Pension were reported.  These amounts will be recognized as increases in pension expense in future  years.  The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide  statements of net position.  A deferred charge results from the difference in the carrying value of refunded debt and its  reacquisition price.  This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.    In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources.  This  separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a  future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of  resources reported in the County’s statement of net position represent the difference between expected and actual economic  experience and changes in the proportion and differences between the County’s contributions and proportionate share of  contributions relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program.  These  amounts will be recognized as reductions in pension expense in future years. The County has also recorded amounts associated  with long term receivables, primarily related to deferred impact fee agreements, as deferred inflows.            45 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS  Bond premiums and bond insurance costs for the governmental activities and the business‐type activities are deferred and  amortized over the term of the bonds using the straight‐line method which approximates the effective interest method.  Bond  premiums are presented as an increase to the face amount of bonds payable, while bond insurance costs are recorded as  deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets.   Pursuant to GASB No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported  as a deferred inflow or outflow of resources.  The gain or loss is calculated as the difference between the reacquisition price of  the refunded debt and the net carrying amount at the time of the refunding.  The gain or loss is amortized on a straight line  basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense.    In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in the  current period.  The face amount of debt is reported as other financing sources.  Premiums received on debt issuances are also  reported as other financing sources.  Issuance costs, including bond insurance costs, whether or not they have been paid from  debt proceeds are reported as debt service expenditures.   INTEREST COST  In the proprietary funds, interest costs are expensed or capitalized as required by GASB Statement No. 62, Codification of  Accounting and Financial Reporting Guidance Contained in Pre‐November 30, 1989 FASB and AICPA Pronouncements.  PROPERTY TAXES  Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following  year.  Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial  statements, as delinquent taxes as of September 30, 2016 are not significant. Discounts on property taxes are allowed for  payments made prior to the April 1st delinquent date as follows: November ‐ 4%, December ‐ 3%, January ‐ 2%, and February  ‐ 1%.  Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1st of each year.    No accrual for the property tax levy becoming due in November 2016 is included in the accompanying financial statements,  since such taxes are collected to finance expenditures of the subsequent period.    Key dates in the property tax cycle for the fiscal year ended September 30, 2016 are as follows:  Property Tax Cycle Date Assessment roll compiled January 1, 2015 Assessment roll certified July 1, 2015 Millage resolution approved Within 35 days of the certification of the assessment roll Beginning of fiscal year for tax levy October 1, 2015 Taxes due and payable (levy date) November 1, 2015 Collection dates By November 30: By December 31:  By January 31:  By February 29:  4% discount 3% discount  2% discount  1% discount  Due date March 31, 2016 Delinquent (lien date) April 1, 2016 Tax certificates sold Prior to June 1, 2016 46 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED  ACCOUNTING ESTIMATES  The preparation of financial statements in conformity with generally accepted accounting principles requires management to  make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets  and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting  period.  Actual results may differ from those estimated.  UNEARNED REVENUE  In instances where assets have been received by the County for services to be rendered in future periods, asset balances are  offset by an unearned revenue liability account in the financial statements.  Unearned revenues of the County as of September  30, 2016 are gift certificates issued and prepayments on accounts.   ACCRUED COMPENSATED ABSENCES  The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences.  This statement provides  for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the  balance sheet date.  It also requires additional amounts to be accrued for certain salary related payments associated with the  payment of compensated absences.  It is the Board of County Commissioners’ policy to allow employees of record on August 2, 1996 a sick leave payment upon  termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all  employees.  The Sheriff’s policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed  1,000 hours, and up to 500 hours of unused vacation time.  Both the Clerk of the Circuit Court and Comptroller’s and Tax  Collector’s policies allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of  unused vacation hours.  The Property Appraiser’s policy allows for a percentage of unused sick leave payout based upon years  of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours.  The Supervisor of Election’s policy allows  for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation.  Payments for compensated absences are made by the respective fund.  Accrued compensated absences are recorded as  liabilities in the government‐wide financial statements and the proprietary fund financials. A liability is reported in  governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are  considered due and payable as of year end.  PENSIONS  In the government‐wide and proprietary funds statements of net position, liabilities are recognized for the County’s  proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability, deferred  outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement  System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS’s and HIS’s  fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose,  plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee  contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair  value.   47 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 2 – CASH AND INVESTMENTS     The County maintains a cash and investment pool that is available for use by all funds.  Each fund’s portion of this pool is  displayed on the balance sheet under the heading of Cash and Investments.  Investment income is allocated monthly to  participating funds based on the percentage of each fund's average daily balance in the total pool.    As of September 30, 2016, the County had the following cash and investments:    Investment Final  Maturities Fair Value First  Call Date Call Frequency Rating * Cash on hand N/A 82,691$             N/A N/A N/A Cash with fiscal agent N/A 11,887,225        N/A N/A N/A Demand deposits N/A 195,836,371      N/A N/A N/A State Board of Administration Pool:    Florida PRIME N/A 746,297              N/A N/A AAAm Federal Home Loan Mortgage Corporation 10/18/2016 500,990            N/A N/A AA+ Federal National Mortgage Association 12/14/2016 200,895            N/A N/A AA+ Federal Home Loan Mortgage Corporation 1/11/2017 1,698,725         N/A N/A AA+ US Treasury Note 1/15/2017 10,012,130      N/A N/A AA+ US Treasury Note 2/2/2017 899,001            N/A N/A AA+ Federal Home Loan Bank 2/21/2017 998,710            N/A N/A AA+ US Treasury Note 3/2/2017 998,480            N/A N/A AA+ US Treasury Note 3/15/2017 10,013,280      N/A N/A AA+ US Treasury Note 4/27/2017 1,196,808         N/A N/A AA+ Federal Home Loan Bank 6/9/2017 10,026,380      2/13/2017 once AA+ Federal Home Loan Mortgage Corporation 7/18/2017 497,920            N/A N/A AA+ Federal Home Loan Bank 7/21/2017 25,000,700      1/21/2016 quarterly AA+ US Treasury Note 8/17/2017 895,608            N/A N/A AA+ Federal Home Loan Mortgage Corporation 10/27/2017 24,991,150      1/27/2016 quarterly AA+ Federal Home Loan Mortgage Corporation 11/24/2017 25,004,225      N/A N/A AA+ US Treasury Note 11/30/2017 24,980,475      N/A N/A AA+ US Treasury Note 11/30/2017 10,019,530      2/24/2016 quarterly AA+ Federal Home Loan Bank 12/1/2017 9,022,293         N/A N/A AA+ Federal Home Loan Bank 12/8/2017 20,004,460      N/A N/A AA+ Federal Home Loan Bank 12/8/2017 25,005,575      N/A N/A AA+ Federal Home Loan Bank 12/19/2017 23,067,666      N/A N/A AA+ Federal Farm Credit Bank 3/14/2018 25,072,475      N/A N/A AA+ Federal Home Loan Bank 6/8/2018 25,169,825      12/21/2016 continuously AA+ Federal Home Loan Bank 8/23/2018 25,001,125      N/A N/A AA+ Federal Home Loan Mortgage Corporation 9/13/2018 25,001,675      N/A N/A AA+ Federal Farm Credit Bank 12/21/2018 25,031,650      N/A N/A AA+ Federal Farm Credit Bank 7/1/2019 40,141,520      1/12/2017 quarterly AA+ Federal National Mortgage Association 7/12/2019 24,961,100      1/27/2017 quarterly AA+ Federal Home Loan Mortgage Corporation 8/28/2019 25,000,925      11/23/2016 quarterly AA+ Federal National Mortgage Association 8/28/2019 14,993,100      11/28/2016 quarterly AA+ Federal Home Loan Mortgage Corporation 2/13/2020 25,039,000      N/A N/A AA+ Federal National Mortgage Association 7/27/2020 24,892,625      12/13/2016 quarterly AA+ Federal Home Loan Bank 9/27/2021 24,953,175      12/27/2016 continuously AA+ Federal National Mortgage Association 9/30/2021 25,008,150      3/30/2017 quarterly AA+ Total 763,853,930$               48 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 2 – CASH AND INVESTMENTS – CONTINUED    CREDIT RISK    Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.  The County’s  investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund  (Florida PRIME), direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S.  government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit  collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government  Securities or Agencies, domestic bankers’ acceptances rated “AA” or higher, prime commercial paper rated “A‐1” and “P‐1”,  tax‐exempt obligations rated “AA” or higher and issued by state or local governments, NOW accounts fully collateralized in  accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements.  The policy requires that each firm  involved in a repurchase agreement must execute the County’s master repurchase agreement, a third party custodian must  hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall  maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities  with a term over five (5) years, and must be marked to market at least weekly.  Florida PRIME is an investment pool  administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida.   At September  30, 2016, the Sheriff had $746,297 invested in the State Board of Administration’s Local Government Surplus Funds Trust Fund  Investment Pool.  All of these funds are held in the Florida PRIME pool.  Florida PRIME is rated “AAAm” by Standard & Poor’s  Ratings Services.       All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public  Deposits Act".  Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value  equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral  pledging level.  The pledging level may range from 25% to 200% depending upon the depository's financial condition.  Any  losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary,  assessments against other qualified public depositories of the same type as the depository in default.    CUSTODIAL CREDIT RISK    Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government  will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside  party.   At September 30, 2016, the County had demand deposits of $195,836,371.  All balances in excess of the Federal  Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial  institutions’ collateral pool in accordance with Florida Statutes Section 280.  The discretely presented component unit demand  deposits of $292,288 are secured by the FDIC as individual entity balances do not exceed $250,000.  Custodial credit risk for  investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to  recover the value of the investment or collateral securities that are in the possession of an outside party.  The County’s  investment policy requires execution of a third‐party custodial safekeeping agreement for purchased securities and collateral,  and requires that securities be held in the County’s name.    INTEREST RATE RISK    Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.  One of  the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and  anticipated cash flow requirements.  The County limits exposure to interest rate risk by structuring the portfolio to meet daily  cash flow demands.   Investments shall have an average maturity of not more than five years, except for mortgage securities.  Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and  are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow  schedule.         49 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 2 – CASH AND INVESTMENTS – CONTINUED     The dollar weighted average days to maturity (WAM) of Florida PRIME at September 30, 2016, is 50 days. Next interest rate  reset dates for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida PRIME  at September 30, 2016, is 70 days.      The portion of the County’s cash and investments invested in U.S. Government Agencies is detailed as follows, at September  30, 2016:    Issuer % of Portfolio Federal  Home Loan  Bank 24.64% Federal  Farm Credit Bank 11.81% Federal  Home Loan  Mortgage Corporation 16.72% Federal  National  Mortgage Association 11.79% Total  U.S. Government Agencies 64.96%    Reconciliation of cash and investments to the basic financial statements:    Primary government: Cash and investments 372,694,933$        Cash with Fiscal Agent 11,887,225             Restricted cash and investments ‐ current 25,966,317             Restricted cash and investments ‐ noncurrent 314,649,481           Agency funds: Cash, cash equivalents and investments 38,655,974             Total 763,853,930$          FAIR VALUE MEASUREMENTS     GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value.  That  framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The  hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1  measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value  hierarchy under GASB Statement No. 72 are described as follows:    Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active  markets that the County has the ability to access.    Level 2 – Inputs to the valuation methodology include:  Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in inactive markets;  Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.    Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.   Unobservable inputs, if any, reflect the County’s own assumptions about the inputs market participants would use in  pricing the asset or liability (including assumptions about risk).  Unobservable inputs are developed based on the best  information available in the circumstances and may include the County’s own data.     The County has the following recurring fair value measurements as of September 30, 2016:    US Treasury Notes classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for  those securities.  As of September 30, 2016, the fair value of the County’s US Treasury Notes was $59,015,312.    US Agency obligations classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in  active markets for those securities.  As of September 30, 2016, the fair value of the County’s US Agency obligations was  $496,286,034.  50 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 3 ‐ TRADE RECEIVABLES  Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as follows:  Trade  Receivables Less Allowance  for Doubtful  Accounts Net Trade  Receivables General Fund 1,220,425$       672,146$       548,279$       Bayshore Gateway Community Redevelopment Agency 12,720     12,720  ‐       Immokalee Community Redevelopment Agency 114,405  114,405     ‐       Nonmajor Governmental Funds 2,389,984   607,327     1,782,657     Total receivables reported in Governmental Funds 3,737,534   1,406,598  2,330,936     Total receivables reported in Internal Service Funds 19,299     14,519  4,780       Total Governmental Activities trade receivables 3,756,833$       1,421,117$        2,335,716$        County Water and Sewer 10,469,692$     842$           10,468,850$     Solid Waste Disposal 862,418  1,077     861,341   Emergency Medical Services 26,248,194      23,883,359     2,364,835     Nonmajor Enterprise Funds 56,325     18,021  38,304       Total Business‐type Activities trade receivables 37,636,629$     23,903,299$     13,733,330$     The County has multi and single‐family home rehabilitation and homeownership loan programs funded under the Community  Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI),  Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP).  If the homeowners  remain in their homes for the full term of the deferred loan, the loan is forgiven.   If the property is transferred or sold before  the end of the loan period, the proceeds from the repayment including interest, if any, are then repaid and returned to the  appropriate grant program.  A lien is placed against the property to ensure the repayment of the loan and interest, if any.  As  collection is uncertain on these loans, they are not recognized in the financial statements.     NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES  ADVANCES  Advances are made to funds for the purposes of capital acquisitions and improvements.  Reimbursements will take place over  the next several years as funds are available.  Advances to and advances from other funds at September 30, 2016 were as  follows:  Advance To Advance From Governmental Activities: General Fund 563,900$      ‐$      Immokalee Community Redevelopment Agency ‐   238,901     Other governmental funds: Unincorporated Area MSTD 447,701   ‐   Improvement Districts ‐   208,800     Fire Control Districts ‐   563,900     Government Facilities Impact Fees Fund ‐   1,955,550      Total Governmental Activities 1,011,601  2,967,151    Business‐type Activities: County Water and Sewer 1,006,761  ‐   Solid Waste Disposal 948,789   ‐     Total Business‐type Activities 1,955,550  ‐   Total Advances 2,967,151$         2,967,151$          51 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 4 – INTERFUND PAYABLES AND RECEIVABLES – CONTINUED  DUE FROM AND DUE TO  Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property  Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services.   Excess fees are calculated after year end, and as such are interfund receivables and payables.  Other outstanding balances are  the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits.     Due from and due to other funds at September 30, 2016 were as follows:   Due From Due To Governmental Activities: General Fund 4,496,930$     721,324$          Bayshore Gateway Community Redevelopment Agency 14,876   168,480   Other Governmental Funds:   Road Districts 837,000  1,515      Unincorporated Area MSTD 309,848  3,585      Community Development 500  ‐      Water Management and Pollution Control 47,196   ‐      Grants and Shared Revenues 811,902  4,670,320     Improvement Districts 34,547   100,000     Fire Control Districts 27,064   ‐      Lighting Districts 10,940   ‐      911 Enhancement Fee ‐   33,978      Tourist Development 170,668  ‐      Confiscated Property ‐   1,893      Other Public Safety Revenue Funds ‐   48,828      Radio Road Limited General Obligation Bonds 630  ‐      Community Redevelopment Taxable Note 144,609  ‐      Forest Lakes Limited General Obligation Bonds 104,175  ‐      Special Obligation Revenue Bonds ‐   7,950,000     County‐Wide Capital Improvement ‐   6,200      Parks Improvements 349,437  ‐      Correctional Facilities Impact Fee 1,360,000  ‐      Water Management 158,409  398,027     Parks Impact Fee 2,511,000  ‐      Road Impact Districts ‐   376,775     Road Construction 4,171,651  14,390      Government Facilities Impact Fee 2,405,000  ‐      Law Enforcement Impact Fee 523,000  ‐      Other Capital Projects 1,003   ‐            Total other governmental funds 13,978,579   13,605,511    Business‐type Activities: Solid Waste 42,499   500   Other Business‐type funds:   Airport Authority 7,472   411,129     Collier Area Transit 31,823   180,673           Total other business‐type funds 39,295   591,802   Internal Service Funds 69,730   3,554,292    Total All Funds 18,641,909$   18,641,909$    52 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 5 – CAPITAL ASSETS  A summary of capital asset activity for the year ended September 30, 2016 is as follows:  September 30, 2015 Additions Deductions Reclassifications September 30, 2016 Governmental Activities: Capital assets not depreciated: Land and other non‐depreciable assets 411,580,042$       5,575,393$      (123,915)$      (13,900)$                417,017,620$       Construction in progress 57,488,990  46,544,228 (28,122)         (45,888,719)         58,116,377          Total capital assets not depreciated 469,069,032          52,119,621 (152,037)       (45,902,619)         475,133,997      Capital assets depreciated: Buildings 445,292,077          151,135      (681,268)       8,914,301            453,676,245      Infrastructure 1,007,107,248      145,801      ‐        29,173,167          1,036,426,216  Improvements other than buildings 280,925,102          449,916      (297,968)       4,425,968            285,503,018      Machinery and equipment 190,360,329          18,435,937 (11,499,196) 3,197,512            200,494,582        Total capital assets depreciated 1,923,684,756      19,182,789 (12,478,432) 45,710,948          1,976,100,061  Less accumulated depreciation: Buildings 163,737,319          14,074,709 (671,662)       ‐               177,140,366      Infrastructure 340,496,919          33,999,645 ‐        ‐               374,496,564      Improvements other than buildings 162,102,153          14,212,229 (101,286)       ‐               176,213,096      Machinery and equipment 155,241,760          14,502,854 (11,289,075) 3,794      158,459,333        Total accumulated depreciation 821,578,151          76,789,437 (12,062,023) 3,794      886,309,359        Total depreciable capital assets, net 1,102,106,605      (57,606,648)    (416,409)       45,707,154          1,089,790,702  Total Governmental Activities   capital assets, net 1,571,175,637$    (5,487,027)$     (568,446)$      (195,465)$              1,564,924,699$    Business‐type Activities: Capital assets not depreciated: Land and other non‐depreciable assets 31,058,890$          333,302$         ‐$                    18,400$                  31,410,592$          Construction in progress 46,505,569  27,041,589 (764,570)       (18,331,497)         54,451,091             Total capital assets not depreciated 77,564,459  27,374,891 (764,570)       (18,313,097)         85,861,683        Capital assets depreciated: Buildings 142,145,411          22,395         (22,075)         4,550,270            146,696,001      Improvements other than buildings 1,146,948,979      8,992,105   (2,223,936)   12,676,450          1,166,393,598  Machinery and equipment 57,349,115  6,357,104   (2,997,165)   1,280,453            61,989,507          Total capital assets depreciated 1,346,443,505      15,371,604 (5,243,176)   18,507,173          1,375,079,106  Less accumulated depreciation: Buildings 78,981,999  4,258,767   (12,536)         ‐               83,228,230        Improvements other than buildings 402,127,747          36,655,461 (1,829,017)   ‐               436,954,191      Machinery and equipment 32,566,201  6,329,227   (2,933,837)   (1,389)     35,960,202          Total accumulated depreciation 513,675,947          47,243,455 (4,775,390)   (1,389)     556,142,623        Total depreciable capital assets, net 832,767,558          (31,871,851)    (467,786)       18,508,562          818,936,483      Total Business‐type Activities   capital assets, net 910,332,017$       (4,496,960)$     (1,232,356)$  195,465$               904,798,166$       53 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 5 – CAPITAL ASSETS – CONTINUED    Schedule of depreciation for fiscal year 2016:    General  Government 8,252,771$           Public Safety 14,918,523           Physical  Environment 7,459,176             Transportation 34,657,986           Economic  Environment 320,605                Human Services 412,639                Culture and Recreation 8,578,443                 Subtotal 74,600,143           Internal Service Funds 2,189,294                 Total  Governmental  Activities 76,789,437$        Water and Sewer 41,583,299$        Solid Waste 1,329,689             EMS 1,142,629             Airport Authority 1,443,398             Mass  Transit 1,744,440                 Total  Business‐type Activities 47,243,455$           NOTE 6 – LONG‐TERM DEBT    SUMMARY OF CHANGES IN LONG‐TERM OBLIGATIONS    The following is a summary of changes in long‐term obligations for the year ended September 30, 2016:    October 1, 2015 Additions Reductions Premium  Amortized, net September 30, 2016 Due within one year Governmental Activities: Bonds Payable  $     334,875  $                   ‐ $      (19,605)$                        ‐ $          315,270 $        20,340  Premium on Bonds Payable            16,771                        ‐                       ‐                 (1,450)               15,321                       ‐  Notes Payable              6,401                        ‐                (556)                          ‐                   5,845                  558  Capital Lease Obligations              1,519                        ‐                (582)                          ‐                      937                  622  Self‐Insurance Claims 6,959           50,785         (49,842)        ‐                                          7,902 6,283           Net Pension Liability 134,201       91,077         ‐                   ‐                                     225,278 1,962           Net OPEB Obligation 2,994           2,072           (1,191)         ‐                                          3,875 ‐                    Compensated Absences            21,790             13,014            (8,141)                          ‐                 26,663              9,342      Total 525,510$      156,948$     (79,917)$      (1,450)$             601,091$           39,107$        Business‐type Activities: Bonds and Loans Payable 193,285$      48,105$       (72,915)$      ‐$                       $          168,475 12,913$        Premium on Bonds Payable 816               12,048         (790)            (226)                                 11,848 ‐                    Notes Payable 64                 ‐                    ‐                   ‐                                                64 64                 Capital Lease Obligations 1,074           472               (299)            ‐                                          1,247 382               Landfill Closure Liability 1,906           ‐                    (22)               ‐                                          1,884 ‐                    Net Pension Liability 26,451         18,683         ‐                   ‐                                        45,134 357               Compensated Absences 2,595           2,481           (2,294)         ‐                                          2,782 2,225               Total 226,191$      81,789$       (76,320)$      (226)$                231,434$           15,941$        000's Omitted        54 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 6 – LONG‐TERM DEBT – CONTINUED  DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE  Bonds, loans and notes payable at September 30, 2016 were composed of the following:  GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75% to 4.25% and collateralized by a limited ad valorem pledge of up to 4 mils.2,930,000$        Total Governmental Activities Limited General Obligation Bonds     2,930,000$        Governmental Activities Revenue Bonds $38,680,000 2012 Gas Tax Refunding Revenue Bonds,due in annual installments of $2,700,000 to $6,605,000 through June 1, 2023; interest at 3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds.23,025,000$           $89,780,000 2014 Gas Tax Refunding Revenue Bonds,due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.33% and collateralized by a pledge on the combined gas tax proceeds.81,515,000       $59,895,000 2010 Special Obligation Revenue Bonds, due in annual installments of $1,545,000 to $3,860,000 through July 1, 2034; interest at 3.00%to 4.50% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.  49,365,000       $24,620,000 2010B Special Obligation Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.  14,330,000       $92,295,000 2011 Special Obligation Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.  70,300,000       $73,805,000 2013 Special Obligation Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by pledge on legally available non‐ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities.  73,805,000       Total Governmental Activities Revenue Bonds 312,340,000$        Governmental Activities Notes Payable $7,557,900 Bayshore Gateway Community Redevelopment Agency TaxableNote,due in monthly installments of $41,988 through June 1, 2018; variable interest rate of 30‐Day LIBOR plus 3.75% and collateralized by a pledge on all legally available non‐ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency. 5,505,721$        55 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 6 – LONG‐TERM DEBT – CONTINUED    $550,000 2012 Limited General Obligation Note, Radio Road East Municipal Service Taxing Unit, due in installments of $3,847 to $5,408 through June 1, 2022; interest at 3.44% and collateralized by a limited ad valorem pledge of up to .5 mils.339,082                  Total Governmental Activities Notes Payable 5,844,803$            Total Governmental Activities Obligations 321,114,803$        Unamortized Bond Premium 15,321,339$          Governmental Activities Obligations, Net 336,436,142$        Less Current Portion of Governmental Activities Obligations (20,898,121)$         Long‐Term Portion of Governmental Activities Obligations, Net 315,538,021$        BUSINESS‐TYPE ACTIVITIES Business‐type Activities Revenue Bonds $17,769,080 2013 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $1,369,430 to $4,312,275, commencing July 1, 2014 through July 1, 2021; interest at 1.47% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District.  7,040,398$            $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $2,533,000 to $4,561,000, commencing July 1, 2017 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District.  17,687,000            $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000, commencing July 1, 2029 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District.  48,105,000            Total Business‐type Activities Revenue Bonds 72,832,398$          Business‐type Activities Loans and Notes Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits.  Non‐interest bearing agreement.64,255$                  $13,730,740 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.65% payable in 40 semiannual payments commencing January 15, 1999 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.1,714,626              $21,951,544 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing November 15, 2001 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.6,736,021              $5,055,347 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing October 15, 2004 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.2,443,943              $6,560,956 County Water and Sewer District State Revolving Fund Loan, interest payable at 3.05% payable in 40 semiannual payments commencing January 15, 2005 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.3,104,979              $28,630,467 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.95% payable in 40 semiannual payments commencing June 15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.16,007,563            56 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 6 – LONG‐TERM DEBT – CONTINUED    $10,280,778 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.90% payable in 40 semiannual payments commencing September 15, 2006 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 5,514,243$            $5,445,223 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.92% payable in 40 semiannual payments commencing December 15, 2005 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,855,539              $4,210,716 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.74% payable in 40 semiannual payments commencing November 15, 2007 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,516,161              $5,625,546 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.75% and 2.64% payable in 40 semiannual payments commencing April 15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.3,505,100              $21,126,718 County Water and Sewer District State Revolving Fund Loan,interest payableat 2.25%, 2.64%, 2.71% and 2.79% payable in 40 semiannual payments commencing August 15, 2008 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.14,622,015            $42,505,652 County Water and Sewer District State Revolving Fund Loan,interest payableat 2.25%, 2.37%, 2.64% and 2.79% payable in 40 semiannual payments commencing October 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District.34,588,439            $2,864,137 County Water and Sewer District State Revolving Fund Loan, interest payable at 2.79% payable in 40 semiannual payments commencing December 15, 2009 and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. 2,033,809              Total Business‐type Activities Loans and Notes Payable 95,706,693$          Total Business‐type Activities Obligations 168,539,091$        Unamortized Bond Premium 11,848,177$          Business‐type Activities Obligations, Net 180,387,268$        Less Current Portion of Business‐type Activities Obligations Payable from Unrestricted Assets (7,085,210)$           Less Current Portion of Business‐type Activities Obligations Payable from Restricted Assets (5,892,192)$           Long‐Term Portion of Business‐type Activities Obligations, Net 167,409,866$        57 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 6 – LONG‐TERM DEBT – CONTINUED  SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY  The total annual debt service requirements to maturity of long‐term debt, excluding compensated absences, capitalized leases,  premiums, discounts and arbitrage rebate liability, are as follows:  Fiscal Year Totals Principal Interest Principal Interest Principal Interest 2017 440,000$        113,475$      19,900,000$        11,529,730$       558,121$     234,992$     32,776,318$     2018 460,000   95,475  20,655,000     10,766,957  5,058,027  162,999      37,198,458      2019 475,000   76,181  21,440,000     9,961,048    58,124    6,955     32,017,308      2020 495,000   55,569  22,270,000     9,145,667    60,156    4,924     32,031,316      2021 520,000   34,000  23,085,000     8,307,969    62,258    2,821     32,012,048      2022‐26 540,000   11,475  105,570,000   29,055,993  48,117    692     135,226,277    2027‐31 ‐    ‐     50,565,000     15,616,260  ‐   ‐  66,181,260      2032‐36 ‐    ‐     48,855,000     4,717,088    ‐   ‐  53,572,088      Totals 2,930,000$       386,175$   312,340,000$     99,100,712$       5,844,803$     413,383$     421,015,073$     Governmental Activities Limited General Obligation Bonds Revenue Bonds Notes Payable Fiscal Year Totals Principal Interest Principal Interest 2017 3,902,430$    2,818,267$       9,074,972$      2,502,514$      18,298,183$         2018 3,968,061    2,753,808   9,259,742 2,253,489   18,235,100   2019 4,031,480    2,688,256   8,623,257 2,003,493   17,346,486   2020 4,099,464    2,621,655   8,862,105 1,764,650   17,347,874   2021 4,164,963    2,553,914   9,107,639 1,519,112   17,345,628   2022‐26 4,561,000    12,106,067    38,344,582  4,229,333   59,240,982   2027‐31 15,885,000  11,258,250    12,434,396  480,348  40,057,994   2032‐36 32,220,000  4,990,500   ‐   ‐  37,210,500   Totals 72,832,398$        41,790,717$     95,706,693$       14,752,939$    225,082,747$      Business‐type Activities Revenue Bonds Notes Payable Loans and CURRENT YEAR DEBT REFUNDING  On May 26, 2016, the Collier County Water and Sewer District issued the Series 2016A Water and Sewer Refunding Revenue  Bonds in the par amount of $48,105,000.  These bonds were issued for the purpose of currently refunding the District’s  remaining Series 2006 Water and Sewer Revenue Bonds.  The final maturity of the refunding bonds is July 1, 2036, with an  interest rate of 5.00%.  The refunding achieved a net present value savings of 17.97% on the refunded bonds.  The current  refunding achieved an aggregate debt service savings of $15,922,828 and an economic gain of $10,737,030.  The refunded  Series 2006 bonds were redeemed on July 1, 2016.  58 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 6 – LONG‐TERM DEBT – CONTINUED    RESTRICTIVE COVENANTS    According to County resolutions authorizing the issuance of the Series 2010, 2010B, 2011 and 2013 Special Obligation  Refunding Revenue Bonds, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its  annual budget, by amendment if necessary, from non‐ad valorem revenues amounts sufficient to pay principal and interest on  the combined Special Obligation Bonds.    According to County resolutions authorizing the issuance of the Series 2012 and 2014 Gas Tax Revenue Refunding Bonds, the  issues are payable from and secured by liens on gas tax revenues.      Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the repayment of the  Agency’s Series 2013 taxable note.  The Agency has additionally covenanted to budget and appropriate from all legally available  non‐ad valorem revenues of the Agency to pay the Series 2013 note to the extent the tax increment revenues are insufficient.    The Series 2013 note does not constitute an indebtedness of the County and is payable solely from the security provided by  the Agency.  The Agency is required to have a debt service reserve balance of $800,000 as of the end of fiscal year 2016.  The  Agency was in compliance with these covenants for the year ended September 30, 2016.    The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating  expenses, to repay $72,832,398 in Series 2013, 2015 and 2016 revenue bonds.  Proceeds from the bonds were used for the  refinancing of bonds issued for rehabilitation or expansion of the District’s water and sewer systems.  Principal and interest are  payable through July 1, 2036, solely from the net revenues and certain other fees and charges derived from operation of the  County's Water and Sewer District (District).  The pledge of net revenues by the District from the operation of the system does  not constitute a lien upon the system or any other property of the County.  The resolutions authorizing the revenue bonds  include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year  net revenues, as defined in the bond resolutions,  which together with system development fees (impact fees) and special  assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements for the bonds;  provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on  the bonds.  Fiscal year 2016 pledged revenues, net of operating expenses, were $40,982,058 and $54,625,732 when system  development fees were included.  Principal and interest paid on the bonds during fiscal year 2016 totaled $6,827,648, providing  coverage of 600% and 800%, respectively.  In addition, bond covenants require a renewal and replacement amount equal to  $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2016.    The District has several State Revolving Fund loans outstanding with the Florida Department of Environmental Protection.   These loans are collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County  Water and Sewer System and system development fees.  The lien is subordinate in all respects to the liens placed upon pledged  revenues established by bonded indebtedness.  The District must maintain rates and charges for services which together with  system development fees are sufficient to pay 115% to 125%, depending upon the individual loan agreement, of the annual  debt service requirements on the loans, as well as satisfy the coverage requirements of all senior debt obligations.  The District’s  State Revolving Fund loans were in compliance with these covenants for the year ended September 30, 2016.    LEGAL DEBT MARGIN    The Constitution of the State of Florida and the Florida Statutes set no legal debt limit.          59 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 6 – LONG‐TERM DEBT – CONTINUED   INTEREST CAPITALIZED  Interest costs on the long‐term debt of business‐type activities, including capitalized leases, incurred and capitalized during the  year ended September 30, 2016 were as follows:  Total Interest  Cost Incurred  Interest Cost  Capitalized  Net Interest  Expense  Business‐type Activities  $      4,761,115 $       1,537,416 $     3,223,699  Interest expense is shown as a direct expense of the Business‐type Activities.  LEASE OBLIGATIONS  Capitalized leases payable at September 30, 2016 amounted to $2,184,342.  These obligations, which are collateralized by  equipment and vehicles, have total annual installments ranging from $29,702 to $1,059,053 including interest ranging from  1.83% to 4.82% and mature through 2022.  As of year‐end, equipment currently leased under capital leases in the governmental  activities had a historical cost of $2,942,557 and accumulated depreciation of $1,648,225.  Equipment currently leased under  capital leases in the business‐type activities had a historical cost of $2,518,891 and accumulated depreciation of $1,043,377.  Future minimum capital lease obligations as of September 30, 2016 were as follows:   Governmental Business‐type Activities Activities Total 663,212$    395,841$      1,059,053$    92,889 353,137  446,026      92,887 352,412  445,299      92,887 94,430    187,317      40,233 78,693    118,926      29,702 ‐   29,702        Total minimum lease payments 1,011,810  1,274,513     2,286,323      Less amount representing interest (74,496)      (27,485)   (101,981)    Present value of minimum lease payments 937,314$    1,247,028$       2,184,342$    2022 2017 2018 2019 2020 2021 The County also leases office space, office equipment and storage space under operating leases.  These leases expire or are  cancellable within the next fiscal year.  In the normal course of operations, these leases will be renewed or replaced by other  leases.  Total rental expenditures for all operating leases within the governmental activities for the year ended September 30,  2016 were $2,546,579.  Total rental expenditures for all operating leases within business‐type activities governmental activities  for the year ended September 30, 2016 were $399,054.    60 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 7 – CONDUIT DEBT OBLIGATIONS  COMPONENT UNIT CONDUIT DEBT  The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities  Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to  independent third parties.  Industrial development revenue bonds have been issued to provide financial assistance to public  entities for the acquisition and construction of industrial and commercial facilities.  Housing revenue bonds have been issued  for the purpose of financing the development of multi‐family residential rental communities.  The health facility revenue bonds  were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used  to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter  of credit or a corporate guarantee.  The primary revenues pledged to pay the debt are those revenues derived from the project  or facilities constructed.  Neither the issuer, nor the County, is obligated in any manner for repayment of the bonds and as such  they are not reported as liabilities in the accompanying financial statements.  As of September 30, 2016, the outstanding principal amount payable on all component unit conduit debt was $434,393,772  and is made up of the following:  Industrial development revenue bonds 214,835,000$        Housing finance revenue bonds 25,378,772   Health facilities revenue bonds 104,895,000    Educational facilities revenue bonds 89,285,000   Total 434,393,772$        NOTE 8 – DEFINED BENEFIT PENSION PLANS  BACKGROUND  The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan  for participating public employees.  The FRS was amended in 1998 to add the Deferred Retirement Option Program under the  defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for  FRS members effective July 1, 2002.  This integrated defined contribution pension plan is the FRS Investment Plan.  Chapter  112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost‐sharing multiple‐employer defined  benefit pension plan, to assist retired members of any State‐administered retirement system in paying the costs of health  insurance.  Essentially all regular employees of the County are eligible to enroll as members of the State‐administered FRS.  Provisions  relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter  238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits  are defined and described in detail.  Such provisions may be amended at any time by the Florida Legislature.  The FRS is a single  retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of  the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs.  A comprehensive annual  financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and  other relevant information, is available from the Florida Department of Management Services’ web site  (www.dms.myflorida.com).  The County’s pension expense totaled $37,906,261 for both the FRS Pension Plan and HIS Plan for the year ended September  30, 2016.  61 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED  FLORIDA RETIREMENT SYSTEM PENSION PLAN   PLAN DESCRIPTION  The Florida Retirement System Pension Plan (FRS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan, with  a Deferred Retirement Option Program (DROP) for eligible employees.  The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for  this class.  Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS  Plan on or after July 1, 2011, vest at 8 years of creditable service.  All vested members, enrolled prior to July 1, 2011, are eligible  for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk  who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service.  All members enrolled in the  FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years  of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or  at any age after 30 years of service.  Employees enrolled in the FRS Plan may include up to 4 years of credit for military service  toward creditable service.  The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for  each year a member retires before his or her normal retirement date.  The FRS Plan provides retirement, disability, death  benefits, and annual cost‐of‐living adjustments to eligible participants.   DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the  FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer.  An  employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain  instructional personnel may participate for up to 96 months.  During the period of DROP participation, deferred monthly  benefits are held in the FRS Trust Fund and accrue interest.  The net pension liability does not include amounts for DROP  participants, as these members are considered retired and are not accruing additional pension benefits.  BENEFITS PROVIDED   Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service  credit.  Credit for each year of service is expressed as a percentage of the average final compensation.  For members initially  enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members  initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings.   The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on  the retirement class to which the member belonged when the service credit was earned. Members are eligible for in‐line‐of‐ duty or regular disability and survivors’ benefits.   62 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED  The following chart shows the percentage value for each year of service credit earned:  % Value (per year  of  service) Retirement up to  age 62 or up to 30 years  of service 1.60 Retirement up to  age 63 or with 31 years  of service 1.63 Retirement up to  age 64 or with  32 years  of service 1.65 Retirement up to  age 65 or with  33 or more years  of service 1.68 Retirement up to  age 65 or up to 33 years  of service 1.60 Retirement up to  age 66 or with  34 years  of service 1.63 Retirement up to  age 67 or with  35 years  of service 1.65 Retirement up to  age 68 or with  36 or more years  of service 1.68 3.00 2.00 Service from December 1, 1970, through  September 30, 1974 2.00 Service on and after October 1, 1974 3.00 Special Risk Regular Class, Initial Enrollment  and  Retirement  Age/Years of Service: Regular  Class members initially enrolled before July 1, 2011 Regular  Class members initially enrolled on or after  July 1, 2011 Elected County Officers Senior Management Service  Class As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service  credit was accrued before July 1, 2011, the annual cost‐of‐living adjustment is 3 percent per year.  If the member is initially  enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost‐of‐living  adjustment.  The annual cost‐of‐living adjustment is a proportion of 3 percent determined by dividing the sum of the pre‐July  2011 service credit by the total service credit at retirement multiplied by 3 percent.  FRS Plan members initially enrolled on or  after July 1, 2011, will not have a cost‐of‐living adjustment after retirement.  CONTRIBUTIONS  The Florida Legislature establishes contribution rates for participating employers and employees.  Effective July 1, 2011, all FRS  Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer  contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1, 2016 through  September 30, 2016, respectively, were as follows: Regular employees‐7.26% and 7.52%; County Elected Officials‐42.27% and  42.47%; Senior Management Services‐21.43% and 21.77%; and DROP participants‐12.88% and 12.99%. The County’s  contributions to the FRS Plan were $20,563,824 for the year ended September 30, 2016.  PENSION COSTS  At September 30, 2016, the County reported a liability of $195,167,590 for its proportionate share of the FRS Plan’s net pension  liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net  pension liability was determined by an actuarial valuation as of July 1, 2016. The County’s proportion of the net pension liability  was based on the County’s contributions received by FRS during the measurement period for employer payroll paid dates from  July 1, 2015, through June 30, 2016, relative to the total employer contributions received from all of FRS’s participating  employers. At June 30, 2016, the County’s proportion was 0.772939%, which was an increase of 0.036832% from its proportion  measured as of June 30, 2015.  63 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED    For the year ended September 30, 2016, the County recognized pension expense of $31,295,717 for its proportionate share of  FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows of resources and  deferred inflows of resources from the following sources:    Description Deferred Outflows   of Resources Deferred Inflows  of Resources Differences  Between Expected  and Actual  Economic Experience 14,943,531$         1,817,142$            Changes  in Actuarial  Assumptions 11,807,054           ‐                               Net Difference Between Projected and Actual  Earnings  on Pension Plan  Investments 50,448,442             ‐                                Changes  in Proportion and Differences  Between County Contributions  and  Proportionate Share of Contributions 9,135,750              1,558,370               County Contributions  Subsequent to the Measurement Date 5,922,271            ‐                               Total 92,257,048$          3,375,512$                Deferred outflows of resources related to pensions of $5,922,271, resulting from County contributions to the FRS Plan  subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September  30, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an  increase in pension expense as follows:    Year  Ended  September 30 Amount 2017 11,920,278$     2018 11,920,278        2019 31,588,212        2020 22,157,963        2021 4,076,857          Thereafter 1,295,677             ACTUARIAL ASSUMPTIONS    The total pension liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions,  applied to all periods included in the measurement:    Inflation 2.60% per year Salary Increases                     3.25%, Average, Including Inflation Investment Rate of Return 7.60%, Net of Pension Plan Investment Expense     Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July  1, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013.      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.     64 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED  The target allocation, as outlined in the FRS Plan’s investment policy, and best estimates of arithmetic and geometric real rates  of return for each major asset class are summarized in the following table:  Asset Class   Target  Allocation   Annual  Arithmetic  Return Compound  Annual  (Geometric)  Return Standard  Deviation Cash 1.0% 3.0% 3.0% 1.7% Fixed income 18.0%4.7%4.6%4.6% Global equity 53.0% 8.1% 6.8% 17.2% Real estate (property)10.0% 6.4% 5.8% 12.0% Private Equity 6.0% 11.5% 7.8% 30.0% Strategic investments 12.0% 6.1% 5.6% 11.1% Totals 100.0% Assumed Inflation ‐ Mean 2.6%1.9% DISCOUNT RATE  The discount rate used to measure the total pension liability was 7.60% for the FRS Plan. The projection of cash flows used to  determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute.  Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to make all projected  future benefit payments of current active and inactive employees. Therefore, the long‐term expected rate of return on pension  plan investments was applied to all periods of projected benefit payments to determine the total pension liability.   PENSION LIABILITY SENSITIVITY  The following presents the County’s proportionate share of the net pension liability for the FRS Plan, calculated using the  discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability  would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current  discount rate:  Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate FRS Plan Discount Rate 6.60%7.60%8.60% County's Proportionate Share of the FRS Plan Net  Pension Liability 359,316,745$     195,167,590$      58,535,096$       PENSION PLAN FIDUCIARY NET POSITION  Detailed information about the FRS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other  State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida  Department of Management Services website at www.dms.myflorida.com.  RETIREE HEALTH INSURANCE SUBSIDY PROGRAM  PLAN DESCRIPTION  The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost‐sharing multiple‐employer defined benefit pension plan  established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time.  The benefit  is a monthly payment to assist retirees of State‐administered retirement systems in paying th eir health insurance costs and is  administered by the Florida Department of Management Services, Division of Retirement.  65 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED     BENEFITS PROVIDED       For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year  of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment  of $150 per month, pursuant to Section 112.363, Florida Statutes.  To be eligible to receive a HIS Plan benefit, a retiree under  a State‐administered retirement system must provide proof of health insurance coverage, which may include Medicare.    CONTRIBUTIONS    The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature.  Employer  contributions are a percentage of gross compensation for all active FRS members.  The FRS contribution  rates include a 1.66%  HIS Plan subsidy for the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016,  pursuant to Section 112.363, Florida Statues.  The County contributed 100 percent of its statutorily required contributions for  the current and preceding 3 years.  HIS Plan contributions are deposited in a separate trust fund from which payments are  authorized.  HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation.  In the event the legislative  appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled.  The County’s contributions to the HIS Plan were $3,415,537 for the year ended September 30, 2016.    PENSION COSTS     At September 30, 2016, the County reported a liability of $75,244,385 for its proportionate share of the HIS Plan’s net pension  liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net  pension liability was determined by an actuarial valuation as of July 1, 2016. The County’s proportion of the net pension liability  was based on the County’s contributions received during the measurement period for employer payroll paid dates from July 1,  2015, through June 30, 2016, relative to the total employer contributions received from all participating employers. At June 30,  2016, the County’s proportion was 0.645620%, which was an increase of 0.002637% from its proportion measured as of June  30, 2015.    For the year ended September 30, 2016, the County recognized pension expense of $6,610,544 for its proportionate share of  HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and  deferred inflows of resources from the following sources:      Description Deferred Outflows  of Resources Deferred Inflows of  Resources Differences Between Expected and Actual Economic Experience ‐$                               171,379$                  Changes in Actuarial Assumptions 11,807,758              ‐                                Net Difference Between Projected and Actual Earnings on HIS Program Investments 38,044                     ‐                                Changes in Proportion and Differences Between County Contributions and  Proportionate Share of Contributions 2,828,235                 982,487                     County Contributions Subsequent to the Measurement Date 849,168                   ‐                                Total 15,523,205$            1,153,866$                    66 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED   Deferred outflows of resources related to pensions of $849,168, resulting from County contributions to the HIS Plan subsequent  to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2017.  Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in  pension expense as follows:  Year Ended  September 30 Amount 2017 2,449,206$        2018 2,449,206          2019 2,441,962          2020 2,438,484          2021 2,114,861          Thereafter 1,626,452          ACTUARIAL ASSUMPTIONS   The total pension liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions,  applied to all periods included in the measurement:  Inflation 2.60% per year Salary Increases        3.25%, Average, Including Inflation Municipal Bond Rate 2.85% Mortality rates were based on the Generational RP‐2000 with Projection Scale BB. The actuarial assumptions used in the July  1, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013.   DISCOUNT RATE  The discount rate used to measure the total pension liability was 2.85% for the HIS Plan. In general, the discount rate for  calculating the total pension liability is equal to the single rate equivalent to discounting at the long‐term expected rate of  return for benefit payments prior to the projected depletion date.  Because the HIS benefit is essentially funded on a pay‐as‐ you‐go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal  bond rate selected by the HIS Plan sponsor.  The Bond Buyer General Obligation 20‐Bond Municipal Bond Index was adopted  as the applicable municipal bond index.   PENSION LIABILITY SENSITIVITY  The following presents the County’s proportionate share of the net pension liability for the HIS Plan, calculated using the  discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability  would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current  discount rate:  Description 1% Decrease in  Discount Rate Current Discount  Rate 1% Increase in  Discount Rate HIS Plan Discount Rate 1.85%2.85%3.85% County's Proportionate Share of the HIS Plan Net  Pension Liability 86,322,403$       75,244,385$       66,050,232$       67 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 8 – DEFINED BENEFIT PENSION PLANS – CONTINUED   PENSION PLAN FIDUCIARY NET POSITION  Detailed information about the HIS Plan’s fiduciary’s net position is available in a separately‐issued FRS Pension Plan and Other  State‐Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida  Department of Management Services website at www.dms.myflorida.com.  NOTE 9 – DEFINED CONTRIBUTION PLAN   The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment  Plan (Investment Plan).  The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida  Comprehensive Annual Financial Report.  As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to  participate in the Investment Plan in lieu of the FRS defined benefit plan.  County employees participating in DROP are not  eligible to participate in the Investment Plan.  Employer and employee contributions, including amounts contributed to  individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment  funds.  Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by  the Florida Legislature.  The Investment Plan is funded with the same employer and employee contribution rates that are based  on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan.  Contributions  are directed to individual member accounts, and the individual members allocate contributions and account balances among  various approved investment choices.  Costs of administering the plan, including the FRS Financial Guidance Program, are  funded through an employer contribution of .04% of payroll from July 1, 2015 to June 30, 2016 and .06% of payroll from July 1,  2016 to June 30, 2017 in addition to forfeited benefits of plan members.  The County’s Investment Plan pension expense totaled  $3,589,697 for the year ended September 30, 2016.    For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service  for employer contributions and investment earnings.  If an accumulated benefit obligation for service credit originally earned  under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS  Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the  earnings on the funds.  Non‐vested employer contributions are placed in a suspense account for up to 5 years.  If the employee  returns to FRS‐covered employment within the 5‐year period, the employee will regain control over their account.  If the  employee does not return within the 5‐year period, the employee will forfeit the accumulated account balance.  For the fiscal  year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management  believes that these amounts, if any, would be immaterial to the County.  After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure  a periodic payment under the Investment Plan, receive a lump‐sum distribution, leave the funds invested for future distribution,  or any combination of these options.  Disability coverage is provided; the member may either transfer the account balance to  the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS  Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income.  68 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 10 – TRANSFERS  Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to  the fund that statute or budget requires they be expended from, (2) move receipts restricted to debt service to the debt service  fund as payments become due and (3) use unrestricted revenues collected in the General Fund to finance operating and capital  programs accounted for in other funds in accordance with budgetary authorizations.  Transfers for the year ended September 30, 2016 were as follows:  Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Nonmajor Governmental Funds 59,200,873$      Solid Waste Disposal 42,500   Emergency Medical Services 15,786,000    Nonmajor Business‐type 2,737,317    Internal Service Funds 651,000   Bayshore Gateway CRA Nonmajor Governmental Funds 858,500   Nonmajor Governmental Funds General Fund 3,186,554    Bayshore Gateway CRA 136,800   Immokalee CRA 85,000   Nonmajor Governmental Funds 50,614,243    County Water and Sewer 14,200   Nonmajor Business‐type 1,769,836    Internal Service Funds 2,447,000    Business‐type Activities: County Water and Sewer General Fund 5,351,100    Nonmajor Governmental Funds 266,653   Solid Waste Disposal 138,400   Solid Waste Disposal General Fund 641,451   Nonmajor Governmental Funds 983   Nonmajor Business‐type Nonmajor Governmental Funds 34,821   Internal Service Funds General Fund 1,276,600    Total Operating Transfers 145,239,831$    NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION  Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred  inflows of resources and is categorized as follows:  Net investment in capital assets:  Total capital assets, net of debt issued in the acquisition of these assets and net  of depreciation is reported separately in the net position section.    Restricted for growth related capital expansion:  Impact fees are restricted for growth related capital expansion.   Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital  improvements.  Restricted for tourist development:  Tourist development tax proceeds are restricted for tourist related activities.  Restricted for Conservation Collier: Balances generated by the former levy of one quarter mill of ad valorem  revenues restricted for the maintenance and management of environmentally sensitive land.  69 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED  Restricted for community redevelopment:  Tax increment revenues generated in the redevelopment areas are  restricted for redevelopment purposes.  Restricted for grants: State and federal government grant monies restricted for grant related purposes.  Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded  by operating transfers from the appropriate funds.  The use of monies in the sinking fund is restricted to the  payment of principal and interest on long‐term debt.  Restricted for nonexpendable purposes – other: Balances are restricted in conjunction with the maintenance and  management of certain conservation lands for mitigation purposes.  Restricted for special revenues – other:  Balances are restricted for specific uses associated with the revenue  collected.  Restricted for renewal and replacement:  Balance is restricted in conjunction with the issuance of County Water  and Sewer District Bonds.  The use of monies in the renewal and replacement fund is restricted to funding the cost  of additions, replacement or major repair of water and wastewater capital assets.  Unrestricted: Balances are not restricted for specific purposes.  Governmental funds report fund balances as either spendable or non‐spendable.  Spendable fund balances are further  classified as restricted, committed, assigned or unassigned depending upon the extent to which there are external or internal  constraints on the spending of these fund balances.  Non‐spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be  maintained intact.  Items that are not spendable also include inventories, prepaid amounts and long term portions of advances,  loans and notes receivable.  Spendable fund balance:   Restricted fund balance – Amounts that can be spent only for specific purposes through restrictions placed upon  them by external resource providers such as creditors, grantors or contributors; or imposed by law through  constitutional provisions or enabling legislation.    Committed fund balance – Amounts that can be spent only for specific purposes determined by the County’s  highest decision making authority, the Board of County Commissioners, via ordinance.  Commitments may be  modified or removed by the Board of County Commissioners only by amending the ordinance that created the  original commitment.  Assigned fund balance – Amounts that are intended to be spent for specific purposes as determined by the Board  of County Commissioners, but that are neither restricted nor committed to the specific purpose.  Unassigned fund balance – Unassigned fund balance is the residual classification for the County’s general fund.   Amounts in this classification are spendable but have not been deemed restricted, committed or assigned.   Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have  exceeded the amounts restricted, committed or assigned for those specific purposes.  When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited  by law, grant agreements or other contractual arrangement.  Further, when committed fund balance is available the County  will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the  unrestricted fund balance classifications could be used.  70 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 11 – NET POSITION/FUND BALANCE CLASSIFICATION – CONTINUED  A detailed schedule of fund balances at September 30, 2016 is as follows:  Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Governmental Governmental Fund Agency Agency Funds Funds Nonspendable:     Endowments ‐$      ‐$      ‐$      1,582,800$         1,582,800$             Advances 563,900   ‐  ‐   447,701   1,011,601         Notes 1,597,726  ‐  ‐   ‐    1,597,726         Inventory 1,487,018  ‐  ‐   1,024,567  2,511,585         Prepaid costs 26,796  ‐  ‐   ‐    26,796     Total nonspendable fund balance 3,675,440  ‐  ‐   3,055,068  6,730,508     Restricted for:     Community redevelopment ‐    10,362,400    87,204    ‐    10,449,604       Federal and state grants 263,481   ‐  ‐   8,511,028  8,774,509         Bond covenants or debt service ‐    ‐  ‐   9,541,371  9,541,371         Transportation growth related capital ‐    ‐  ‐   56,862,980   56,862,980       Parks growth related capital expansion ‐    ‐  ‐   23,125,404   23,125,404       Transportation capital projects ‐    ‐  ‐   43,873,982   43,873,982       Community development ‐    ‐  ‐   39,551,787   39,551,787       Transportation operations ‐    ‐  ‐   2,960,385  2,960,385         Tourist development ‐    ‐  ‐   65,021,180   65,021,180       Conservation Collier ‐    ‐  ‐   33,253,360   33,253,360       Emergency 911 ‐    ‐  ‐   3,594,920  3,594,920         Law Enforcement ‐    ‐  ‐   10,209,383   10,209,383       Fire services growth related capital ‐    ‐  ‐   71,261  71,261         Government facilities growth capital ‐    ‐  ‐   2,318,366  2,318,366         Libraries growth related capital ‐    ‐  ‐   1,098,532  1,098,532         Court functions ‐    ‐  ‐   7,556,502  7,556,502         Public records modernization ‐    ‐  ‐   4,825,868  4,825,868         Other purposes ‐    ‐  ‐   1,508,423  1,508,423       Total restricted fund balance 263,481   10,362,400    87,204    313,884,732    324,597,817    Committed for:     Special districts ‐    ‐  ‐   22,177,565   22,177,565       Natural resource management ‐    ‐  ‐   1,915,391  1,915,391         Utility regulation ‐    ‐  ‐   1,418,550  1,418,550         Other purposes ‐    ‐  ‐   557,639   557,639        Total committed fund balance ‐    ‐  ‐   26,069,145   26,069,145   Assigned for:     Parks and recreation ‐    ‐  ‐   5,097,291  5,097,291         General building & improvements ‐    ‐  ‐   9,252,494  9,252,494         Water management ‐    ‐  ‐   12,041,456   12,041,456       Libraries ‐    ‐  ‐   467,044   467,044          Other purposes 1,673,668  ‐  ‐   1,785,214  3,458,882       Total assigned fund balance 1,673,668  ‐  ‐   28,643,499   30,317,167   Unassigned:53,960,944   ‐  ‐   (88,916)    53,872,028      Total Fund Balances 59,573,533$    10,362,400$      87,204$     371,563,528$       441,586,665$       71 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 12 – RISK MANAGEMENT  The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions;  injuries to employees and natural disasters.  A self‐insurance internal service fund is maintained by the County to administer  insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto,  public official and crime liabilities.  The County self‐insurance program covers operations of the Board and the constitutional  officers, except for the Sheriff.  Under these programs, the self‐insurance fund provides coverage up to a maximum amount for  each claim.  The County purchases commercial insurance for claims in excess of coverage provided by the self‐insurance fund  and for all other covered risks of loss.    Claim Type County’s Coverage Excess Carrier’s Coverage  Property and casualty claims $50,000 ‐$500,000  (5% Named Storm)  $50,000 ‐$75,000,000   Auto liability claims $300,000 $300,000 ‐ $5,000,000   Employee health claims $400,000 $400,000 ‐ Unlimited   Workers' compensation claims $500,000 $500,000 ‐ Statutory  Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years.  All divisions of  the County, excluding the Sheriff, participate in this program.  Charges to operating departments are based upon amounts  believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating  costs of the programs.  For the fiscal year ended September 30, 2016 the operating departments were charged $39,516,689  for workers' compensation, health and property and casualty self‐insurance programs.  The claims loss reserve for workers' compensation, health and property and casualty of $5,523,170 reported at September 30,  2016 was calculated by third party actuaries based upon GASB Statement 30, Risk Financing Omnibus, which requires that a  liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably  estimated.  The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were  discounted at 3.5%.  It should be noted that the discount rate is an estimate based on the expected rate of return over extended  periods.  The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much  shorter.  Claims loss reserves of $3,904,371 are recorded as current liabilities.   The Sheriff participates in the Statewide Florida Sheriff's Self‐Insurance Fund for its professional liability insurance. The fund is  managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating  Sheriff agencies.  The Florida Sheriff's Self‐Insurance Fund provides liability insurance coverage subject to the following  limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member.  The Sheriff also participates in the Statewide Florida Sheriff's Self‐Insurance Fund program for workers' compensation  coverage.  The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self‐insurance fund  providing coverage for the first $500,000 of every claim.  Re‐insurance is provided through a third party insurer for all claims  exceeding $500,000 up to $10,000,000.   Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years.  Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated  annual payouts during the fiscal year and to pay for the estimated operating costs of the program.  All liabilities associated with  these self‐insured risks are reported in the basic financial statements of the Statewide Florida Sheriff’s Self‐Insurance Fund.   The Sheriff cannot be additionally assessed for claims paid by the program.  72 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 12 – RISK MANAGEMENT – CONTINUED  The Sheriff has also established a self‐funded employee health plan.  An internal service fund is used to account for the activities  of the plan.  Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding  $200,000.  Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and  current year claims including claims incurred but not yet reported.  The claims loss reserve for health of $2,379,000 reported at September 30, 2016 was calculated by third party actuaries based  upon GASB Statement 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that  a loss has been incurred and the amount of that loss can be reasonably estimated.  The entire Sheriff’s health claim loss reserve  is recorded as a current liability.  CHANGES IN SELF‐INSURANCE CLAIMS PAYABLE  Changes in the self‐insurance claims payable for fiscal years 2015 and 2016 were as follows for the County and Sheriff self‐ insurance programs:  Property and Group Workers' Casualty Health Compensation Total Balance at September 30, 2014 1,108,635$      4,869,000$         595,193$        6,572,828$       Current year claims incurred and   changes in estimates 1,004,390 50,779,519 460,864   52,244,773   Claim payments (1,258,999)    (50,084,519)    (514,649)  (51,858,167)     Balance at September 30, 2015 854,026$        5,564,000$        541,408$       6,959,434$       Current year claims incurred and   changes in estimates 1,494,744 48,722,181 567,829   50,784,754   Claim payments (1,154,593)    (48,175,181)    (512,244)  (49,842,018)     Balance at September 30, 2016 1,194,177$     6,111,000$        596,993$       7,902,170$       NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS  Plan Description – The County provides post employment healthcare benefits for retirees through a single employer defined  benefit plan.  The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court  and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections.  In accordance with Florida Statute  112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums  to continue in the County’s health insurance plan at the same group rate as for active employees.  The plan does not issue a  separate financial report.   The Board of County Commissioners and the Tax Collector administer an additional single‐employer defined benefit plan (OPEB  Plan) and can amend the benefit provisions.  The Board offers an OPEB Plan that subsidizes the cost of health care for its retirees  who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of  continuous service with the Board.  In addition, the retiree must retire from the Board, be at least 55 years of age or have  completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break  in time.  Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan.  A  subsidy is currently provided to six retirees.  The Tax Collector offers an OPEB plan that subsidizes 100% the cost of health care  for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement.   73 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED    At October 1, 2015, the date of the latest actuarial valuation, County plan participation consisted of:     OPEB plan participants 2,107   Retirees receiving benefits 70     Funding Policy ‐ The County has the authority to establish and amend funding policy. For the year ended September 30, 2016,  the County contributed $373,477 to the OPEB Plan.  No trust or agency fund has been established for the plan.    Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the County’s OPEB Plan is calculated based on the Annual  Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45.  The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and  amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of  the County’s annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan  obligation.     2016 2015 2014 Annual  required contribution (ARC) 825,788$     825,046$     816,457$      Interest on net OPEB obligation 24,782         25,484         25,017          Adjustment to  ARC (40,917)        (42,077)        (41,306)             Annual  OPEB cost 809,653       808,453       800,168        Contributions  made (373,477)      (831,869)      (784,612)           Increase (decrease) in net OPEB obligation 436,176       (23,416)        15,556          Net OPEB obligation ‐ beginning of year 826,053       849,469       833,913        Net OPEB obligation ‐ en d  of year 1,262,229$ 826,053$     849,469$      Percentage of annual  OPEB cost contributed 46% 103%98%    Funded Status and Funding Progress ‐ As of September 30, 2015, the OPEB Plan was 0.0% funded and the actuarial accrued  liability for benefits was $7,178,976, and the actuarial value of plan assets was $0, resulting in a UAAL of $7,178,976.  As of  September 30, 2016, the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits was $7,487,742, and the  actuarial value of plan assets was $0, resulting in a UAAL of $7,487,742.  The covered payroll (annual payroll of active employees  covered by the OPEB Plan) was $125.7 million, and the ratio of the UAAL to the covered payroll was 6%.    Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of reported  amounts and assumptions about the probability of occurrence of events far into the future.  Examples include assumptions  about future employment, mortality, and the healthcare cost trend.  Amounts determined regarding the funded status of the  plan and the annual required contributions of the employer are subject to continual revision as actual results are compared  with past expectations and new estimates are made about the future.      Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the  employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the  employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly  incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer  and plan members in the future. Actuarial calculations reflect a long‐term perspective. Consistent with that perspective,  actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in  actuarial accrued liabilities and the actuarial value of assets.         74 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED  The actuarial methods and assumptions are:   Actuarial cost method Projected Unit Credit Actuarial Cost  Amortization method Level Dollar Amount Amortization period 30 years, Open Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 6% for the 2017 fiscal year grading to an  ultimate rate of 5% for the 2022 fiscal year  Plan Description ‐ The Sheriff administers a single‐employer defined benefit plan (OPEB Plan) and can amend the benefit  provisions.  Prior to 2010, the Sheriff offered an OPEB Plan that subsidizes the cost of health care for its retirees who have 6  years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System.   The Sheriff subsidizes approximately 20% for both single and family coverage for qualifying individuals.  In 2010, the subsidy  was no longer made available to eligible retirees who chose to continue their health insurance coverage.  Approximately 46%  of retirees receive the subsidy.  Additionally, in accordance with Florida Statute 112.0801, Sheriff’s employees who retire and  immediately begin receiving benefits from the FRS have th e option of paying premiums to continue in the Sheriff’s health  insurance plan at the same group rate as for active employees.  The plan does not issue a separate financial report.  At October 1, 2016, the date of the latest actuarial valuation, Sheriff plan participation consisted of:  OPEB plan participants 1,105  Retirees receiving benefits 106   Funding Policy ‐ The Sheriff has the authority to establish and amend funding policy. For the year ended September 30, 2016,  the Sheriff contributed $818,021 to the OPEB Plan.  No trust or agency fund has been established for the plan.   Annual OPEB Cost and Net OPEB Obligation ‐ The annual cost of the Sheriff’s OPEB Plan is calculated based on the Annual  Required Contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45.  The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and  amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of  the Sheriff’s annual OPEB Plan cost for the year, the amount actually contributed, and the changes in the net OPEB Plan  obligation.   2016 2015 2014 Annual required contribution (ARC)1,305,135$   1,262,077$   1,138,923$     Interest on net OPEB obligation 65,043 50,437 40,348    Adjustment to ARC (107,393)  (83,277)  (66,618)       Annual OPEB cost 1,262,785   1,229,237  1,112,653   Contributions made (818,021)  (742,376)  (776,332)     Increase in net OPEB obligation 444,764 486,861 336,321    Net OPEB obligation ‐ beginning of year 2,168,099   1,681,238  1,344,917   Net OPEB obligation ‐ end of year 2,612,863$   2,168,099$   1,681,238$     Percentage of annual OPEB cost contributed 65% 60% 70% 75 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS – CONTINUED   Funded Status and Funding Progress ‐ As of September 30, 2015, the OPEB Plan was 0.0% funded, the actuarial accrued liability  for benefits was $15,133,114, and the actuarial value of assets was $0, resulting in a UAAL of $15,133,114.  As of September  30, 2016, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was $15,684,350, and the actuarial value  of assets was $0, resulting in a UAAL of $15,684,350.  The covered payroll (annual payroll of active employees covered by the  OPEB Plan) was $122.9 million, and the ratio of the UAAL to the covered payroll was 12.8%.  Actuarial Methods and Assumptions ‐ Actuarial valuations of an ongoing plan involve estimates of the value of reported  amounts and assumptions about the probability of occurrence of events far into the future.  Examples include assumptions  about future employment, mortality, and the healthcare cost trend.  Amounts determined regarding the funded status of the  plan and the annual required contributions of the employer are subject to continual revision as actual results are compared  with past expectations and new estimates are made about the future.  Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the  employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the  employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly  incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer  and plan members in the future. Actuarial calculations reflect a long‐term perspective. Consistent with that perspective,  actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in  actuarial accrued liabilities and the actuarial value of assets.   The actuarial methods and assumptions are:   Actuarial cost method Projected Unit Credit Actuarial Cost  Amortization method Level Dollar Amount Amortization period 30 years, Closed Investment rate of return 3% Discount rate 3% Inflation rate 3% Healthcare cost trend rate 8% for the 2017 fiscal year grading to an  ultimate rate of 5% for the 2023 fiscal year  NOTE 14 – LANDFILL LIABILITY  On May 1, 1995 the County entered into a landfill operating agreement with a third party for the privatization of the County's  landfill operations.  Under the contract, the third party is responsible for the daily operations, capital improvements, closure,  postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites.  Collier  County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites.  None of the cells  that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and  operating the scale house at each site.  In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement  18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established  representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible.  The  County’s estimated liability in connection with the landfills is included in the proprietary funds statement of net position.  The  landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional  postclosure care requirements will be recorded as a current cost.    76 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016    NOTE 15 – SIGNIFICANT CONTINGENCIES  LITIGATION  The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In  the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here, will not  materially affect the financial position of the County.   The Board has been named as a defendant in three related lawsuits, styled Francis Hussey, et al v. Collier County, Case No. 08‐ 6933‐CA; Board of County Commissioners v. Francis D. Hussey, et al., Case No. 08‐6988‐CA consolidated with 08‐6933‐CA; and  Sean Hussey, et al. v. Collier County, et al., Case No. 08‐7025‐CA.  On September 11, 2008, the Plaintiffs, Francis D. Hussey, Jr.  and Mary P. Hussey, husband and wife, and Winchester Lakes Corporation, a Florida corporation, filed an inverse condemnation  suit seeking monetary damages from Collier County, Florida, the Honorable Charlie Crist, the Governor of the State of Florida  and the Florida Department of Community Affairs.  The Husseys contend that the designation of certain real property owned  by them through a growth management plan amendment adopted in 2002 had the effect of precluding mining activities on  their property, thereby resulting in a substantial diminution in value of the real estate, which the Plaintiffs contend to be  compensable under Florida law. The complaint alleges current damage claims in the amount of $91,500,000.  The Plaintiffs  have also presented a claim for "inverse condemnation based on a regulatory taking of plaintiffs' property," in an amount not  specified in the complaint.   The Wildlife Federation and Collier County Audubon Society were granted leave to intervene in the  suit by the Court on April 29, 2009.  On July 9, 2009, the Florida Wildlife Federation and Collier County Audubon Society served  upon defendants Francis and Mary Hussey a Notice of Intent to Sue over violations of the Endangered Species Act of 1973 (16  U.S.C. 1531 et seq.)    On February 1, 2017, the Second District Court of Appeals affirmed an Order (without issuing a written opinion) of the Collier  County Circuit Court approving the County’s Settlement Agreement with the Husseys, et al.  The Circuit Court’s order had been  appealed by the Florida Wildlife Federation, Inc. and the Collier County Audubon Society, Inc., who had intervened in the  lawsuit. The time for any party to file an appeal has passed and as such this case is closed.   Briefly stated, the Settlement Agreement provides as follows:  1)The County will re‐designate 578 acres of the Hussey parcel as Receiving Lands in exchange for the re‐ designation as Sending Lands of the 578 acres of Rural Fringe Receiving Lands owned by the S.R. 846 Land Trust (the “846 land”).  This exchange is a net swap.  It leaves the identical acreage within the Rural Fringe with a Sending Designation and identical acreage with a Receiving Designation.  Collier County will amend the Future Land Use Map designation of these 578 acres accordingly. 2)Within 180 days, Husseys must deed to the County 180 feet of right‐of‐way for the future Wilson Boulevard Extension (Blackburn Road) along the southern property line of the HHH Ranch.  The Owner will receive road impact fee credits for this dedication. 3)The HHH Ranch lands shall be subject to the Preservation and Native Vegetation Retention Standards within CCMA Policies based upon the existing native vegetation as depicted by a FLUCCS Map, which map shall be prepared by the Husseys, subject to County approval.  The map shall be prepared and presented for review within 180 days. No development rights were conferred by this Agreement, and the County was not required to make any payment in the form  of damages or otherwise to the Plaintiffs.  77 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 15 – SIGNIFICANT CONTINGENCIES – CONTINUED    STATE AND FEDERAL GRANTS    Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies.   Such audits may result in requests for reimbursement due to disallowed expenditures.  Based upon prior experience, the  County does not believe that such disallowances, if any, would have a material effect on the financial position of the County.     ARBITRAGE REBATE    In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest  costs incurred are required to be rebated to the federal government.  There was no arbitrage rebate liability as of September  30, 2016.      NOTE 16 – SIGNIFICANT COMMITMENTS    Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods  or services have been order but not received.  Encumbrance commitments do not include construction contracts, as they are  included as contract commitments.      Collier County had the following encumbrances as of September 30, 2016:    Encumbrance Category Commitments Governmental Activities: General  Fund General  Government 614,599$            Economic  Environment 130,052              Human Services 911,322              Culture and Recreation 16,503                 Bayshore Gateway Community Redevelopment Agency Economic  Environment 52,956                 Other Governmental  Funds General  Government 1,407,833           Public Safety 4,666,555           Physical  Environment 3,347,610           Transportation 14,253,220         Economic  Environment 3,878,472           Human Services 1,455,393           Culture and Recreation 2,737,206           Business‐type Activities: Water and Sewer Utilities 25,637,988         Solid Waste Disposal Landfill 884,674              Emergency  Medical  Services Emergency  Medical  Services 665,818 Other Enterprise Funds Airports 163,999              Ma ss  Transit 1,562,516           Internal Service  Funds General  Government 144,744              Total 62,531,460$              78 COLLIER COUNTY, FLORIDA  NOTES TO THE FINANCIAL STATEMENTS  SEPTEMBER 30, 2016      NOTE 16 – SIGNIFICANT COMMITMENTS – CONTINUED    Collier County has active construction projects as of September 30, 2016.  The projects include road construction, governmental  facilities and utilities improvements.  At year end, the County’s commitments with contractors include the following:       Construction Category Commitments Governmental Activities: Other Governmental  Funds General  Government 1,009,833$         Public Safety 1,241,488           Physical  Environment 5,965,994           Transportation 33,750,427         Culture and Recreation 304,610              Business‐type Activities: Water and Sewer Utilities 30,266,299         Other Enterprise Funds Mass  Transit 121,294              Total 72,659,945$           NOTE 17 – FUND DEFICITS    The following fund had a fund balance deficit at September 30, 2016:    Fund Amount Fire Control  Districts (88,916)$             Total (88,916)$                The fund balance deficit is the result of advances from other funds made prior to September 30, 2016.  These advances were  recorded to ensure repayment of monies loaned primarily for the acquisition of a fire station.  County management anticipates  that the deficits will be covered by future years’ revenues.      NOTE 18 – SUBSEQUENT EVENT  In November of 2016, the Collier County Water and Sewer District (the District) borrowed $89,982,000 from Florida Community  Bank, N.A. for purposes of currently refunding all of the District’s outstanding State Revolving Fund loans.  The final maturity  of the loan is July 1, 2029, with an interest rate of 1.80%.  The refunding achieved a net present value savings of 4.19% on the  refunded bonds and an aggregate debt service savings of $4,611,821.      79 THIS PAGE INTENTIONALLY LEFT BLANK  REQUIRED SUPPLEMENTARY  INFORMATION  2016 2015 2014 County's Proportion of the Net Pension Liability 0.772938545% 0.736106708% 0.703655077% County's Proportionate Share of the Net Pension Liability 195,167,590$        95,078,054$          42,933,306$           County's Covered‐Employee Payroll *144,013,741$        140,176,971$        132,386,835$         County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of  Its Covered‐Employee Payroll 135.52%67.83%32.43% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 84.88%92.00%96.09% * Covered payroll is pensionable wages as of the measurement date. 2016 2015 2014 Contractually Required Contribution 20,563,824$          17,830,147$          17,287,796$           Contributions in Relation to the Contractually Required Contribution (20,563,824)           (17,830,147)           (17,287,796)            Contribution Deficiency (Excess)‐$ ‐$ ‐$  County's Covered‐Employee Payroll FY 148,556,236$        139,443,152$        133,436,828$         Contributions as a Percentage of Covered Employee Payroll 13.84%12.79%12.96% 2016 2015 2014 County's Proportion of the Net Pension Liability 0.645620406% 0.642983194% 0.621385755% County's Proportionate Share of the Net Pension Liability 75,244,385$          65,574,171$          58,101,084$           County's Covered‐Employee Payroll *199,870,915$        195,154,275$        184,577,284$         County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of  Its Covered‐Employee Payroll 37.65%33.60%31.48% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 0.97%0.50%0.99% * Covered payroll is pensionable wages as of the measurement date. 2016 2015 2014 Contractually Required Contribution 3,415,537$            2,614,704$            2,131,155$             Contributions in Relation to the Contractually Required Contribution (3,415,537)             (2,614,704)             (2,131,155)              Contribution Deficiency (Excess)‐$ ‐$ ‐$  County's Covered‐Employee Payroll FY 206,179,415$        193,543,352$        185,505,694$         Contributions as a Percentage of Covered Employee Payroll 1.66%1.35%1.15% Note:  Information is required to be presented for 10 years.  However, until a full 10‐year trend is compiled, the County will present information for only those years  for which information is available. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM LAST TEN FISCAL YEARS REQUIRED SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN LAST TEN FISCAL YEARS 82 Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) ‐ Percentage of Valuation Value of Unit Credit Unfunded Funded Covered Covered Agency Date Assets Actuarial Cost AAL (UAAL) Ratio Payroll Payroll Board and Constitutionals 10/1/2009 ‐$               5,814,470$            5,814,470$      0% 112,828,491$     5.2% (Non‐Sheriff) Board and Constitutionals 10/1/2010 ‐                 5,825,874              5,825,874       0% 105,458,501       5.5% (Non‐Sheriff) Board and Constitutionals 10/1/2011 ‐                 6,564,292              6,564,292       0% 106,554,662       6.2% (Non‐Sheriff) Board and Constitutionals 10/1/2012 ‐                 6,650,672              6,650,672       0% 105,433,555       6.3% (Non‐Sheriff) Board and Constitutionals 10/1/2013 ‐                 7,093,909              7,093,909       0% 102,713,900       6.9% (Non‐Sheriff) Board and Constitutionals 10/1/2014 ‐                 6,977,743              6,977,743       0%109,906,269       6.3% (Non‐Sheriff) Board and Constitutionals 10/1/2015 ‐                 7,178,976              7,178,976       0% 116,579,554       6.2% (Non‐Sheriff) Sheriff 10/1/2009 ‐$               14,171,709$          14,171,709$    0% 123,296,677$     11.5% Sheriff 10/1/2010 ‐                 12,148,033           12,148,033     0% 117,879,632       10.3% Sheriff 10/1/2011 ‐                 12,018,242           12,018,242     0% 114,185,572       10.5% Sheriff 10/1/2012 ‐                 13,291,909           13,291,909     0% 108,390,240       12.3% Sheriff 10/1/2013 ‐                 13,141,022           13,141,022     0% 107,204,015       12.3% Sheriff 10/1/2014 ‐                 14,207,209           14,207,209     0% 112,902,749       12.6% Sheriff 10/1/2015 ‐                 15,133,114           15,133,114     0% 117,563,839       12.9% Sheriff 10/1/2016 ‐                 15,685,350           15,685,350     0% 122,939,572       12.8% REQUIRED SUPPLEMENTARY INFORMATION COLLIER COUNTY, FLORIDA OTHER POST EMPLOYMENT BENEFITS SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEATH PLAN 83 THIS PAGE INTENTIONALLY LEFT BLANK  COMBINING AND INDIVIDUAL  FUND FINANCIAL STATEMENTS AND  OTHER SUPPLEMENTAL INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK  Nonmajor Governmental Funds  Special Revenue Funds  ROAD DISTRICTS – To account for taxes levied and expenditures to carry on all work on roads and bridges in the  County except that provided for in capital project funds.   UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT – To account for revenues derived from and  expanded for the benefit of the unincorporated areas of the County.   COMMUNITY DEVELOPMENT – To account for building permit and development fees to support licensing, permitting  and inspection services.   WATER MANAGEMENT AND POLLUTION CONTROL – To account for taxes levied County‐wide to provide water  resource management and water pollution control.   GRANTS AND SHARED REVENUES – To account for the revenues received from federal, state and local grants.   IMPROVEMENT DISTRICTS – To account for taxes levied within municipal service taxing districts to provide for  specified improvements and/or the maintenance of such improvements.   FIRE CONTROL DISTRICTS – To account for taxes levied within municipal service taxing districts for fire prevention and  control.  LIGHTING DISTRICTS – To account for taxes levied within municipal service taxing district for street lighting.   911 ENHANCEMENT FEE – To account for fees levied on each telephone access line in the County for the  enhancement of the 911 emergency telephone system.  TOURIST DEVELOPMENT – To account for the 4% tourist development tax.   STATE HOUSING INITIATIVE PARTNERSHIP – To account for state revenues received to provide affordable residential  housing for very low to moderate income persons and those who have special housing needs.   800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND – To account for moving traffic  violation surcharges received to fund the County’s intergovernmental radio communications program.  STATE COURT ADMINISTRATION – To account for County monies used to fund the operation of the court system.  CONFISCATED PROPERTY – To account for the accumulation and expenditure of proceeds from the sale of property  confiscated by the Sheriff.   GAC LAND SALES, ROADS AND CANALS – To account for principal and settlement fees received from a 1977  settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of  roads, facilities and drainage improvements in the Golden Gate Estates area.   UTILITY FEE – To account for fees to be used to effectively and efficiently regulate private water and wastewater  utilities operating within the unincorporated areas of Collier County and the City of Marco Island.   CONSERVATION COLLIER – To account for the acquisition and management of environmentally sensitive lands.  COURT INFORMATION TECHNOLOGY – To account for the accumulation of resources to enhance and increase  access to court information.   COURT SERVICES – To account for the accumulation of revenues associated with the function of the local court  system.   UNIVERSITY EXTENSION – To account for fund accumulation to meet the educational goals of the Collier County  UF/IFAS extension.   COURT FACILITIES FEE – To account for the accumulation of resources to improve court facilities.   AFFORDABLE HOUSING – To account for fees to be used to provide for affordable housing related projects.   OTHER COURT SPECIAL REVENUE FUNDS – To account for the statutory surcharge on recording documents to be  paid to the Clerk of the Circuit Court for modernization.  OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the Sheriff’s  Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate  welfare, crime prevention and training programs.  OTHER SPECIAL REVENUE FUNDS – To account for the accumulation of resources for the following programs:  Miscellaneous Florida Statutes Fee Collections Euclid and Lakeland Assessment  Adoption Awareness Legal Aid Society Teen Court Law Enforcement Training  Animal Control Domestic Violence Public Library Juvenile Assessment Center  Law Library Driver Education Freedom Memorial Crime Prevention County Drug Abuse  Permanent Fund  RESOURCE RECOVERY PARK ENDOWMENT – To account for the permanent endowment established for the benefit  of the County’s land conservation program.  Debt Service Funds  RADIO ROAD EAST LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources, surety  reserve and payment of interest and principal on the Radio Road East limited general obligation bonds.  CONSERVATION COLLIER LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources  and payment of interest and principal on long‐term debt incurred for the acquisition of environmentally sensitive  lands.   COMMUNITY REDEVELOPMENT TAXABLE NOTE – To account for the accumulation of resources and payment of  interest and principal on taxable long‐term debt incurred for the acquisition of land in the Bayshore/Gateway  Community Redevelopment Agency.   FOREST LAKES LIMITED GENERAL OBLIGATION BONDS – To account for the accumulation of resources and payment  of interest and principal on long‐term debt incurred on the Forest Lakes Limited General Obligation Bonds.   SPECIAL OBLIGATION REVENUE BONDS – To account for the accumulation of resources and payment of interest and  principal on long‐term debt incurred in the refinancing of various outstanding variable rate commercial paper loans.   OTHER DEBT SERVICE – To account for the accumulation of resources and payment of interest and principal on  variable rate commercial paper loans and special assessment debt incurred in the Naples Park area.  Capital Project Funds  COUNTY‐WIDE CAPITAL IMPROVEMENTS – To account for capital projects, designated by the Board of County  Commissioners, to be funded by a County‐wide one third mil levy.   PARKS IMPROVEMENTS – To account for the expenditure of funds raised specifically for improvements to parks.  Projects include land acquisition, design, construction and equipping of certain Community Park sites in the  unincorporated areas of the County. Primary funding is ad valorem taxes.   COUNTY‐WIDE LIBRARY IMPACT FEES – To account for the receipt and expenditure of library impact fees collected  from all qualifying new construction. These impact fees must be used for acquisition of County‐wide library facilities.   CORRECTIONAL FACILITIES IMPACT FEES – To account for the receipt and expenditure of correctional facilities impact  fees collected from all qualifying new construction. The impact fee must be used for the acquisition/construction of  correctional facilities.   EMERGENCY MEDICAL SERVICES IMPACT FEES – To account for the receipt and expenditure of emergency medical  service impact fees collected from all qualifying new construction. The impact fees must be used for  acquisition/construction of emergency service facilities.   WATER MANAGEMENT – To account for the receipt and expenditure of funds raised specifically for water  management purposes. Primary funding is ad valorem taxes.   PARKS IMPACT DISTRICTS – To account for the receipt and expenditure of parks impact fees collected from all  qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities.   ROAD IMPACT DISTRICTS – To account for the receipt and expenditure of road impact fees collected from all  qualifying new construction. The impact fees must be used for the acquisition/construction of roads.   ROAD CONSTRUCTION – To account for the receipt and expenditure of gas taxes.  Projects include, but are not  limited to, right‐of‐way acquisition, design and construction of various transportation improvements.   GOVERNMENT FACILITIES IMPACT FEES – To account for the receipt and expenditure of government facilities impact  fees collected from qualifying new construction.  The impact fees must be used for the acquisition and construction of  government facilities.   LAW ENFORCEMENT IMPACT FEES – To account for the receipt and expenditure of law enforcement impact fees  collected from all qualifying new construction.  The impact fees must be used for the acquisition and construction of  law enforcement related facilities.   ALL TERRAIN VEHICLE PARK – To account for the receipt and expenditure of funds for the creation of an All Terrain  Vehicle park.   OTHER CAPITAL PROJECTS – To account for major capital expenditure financed from resources other than proceeds  from the issuance of long‐term debt and the one third mil levy.   Water Management Grants and Road Unincorporated Community and Pollution Shared Districts Area MSTD Development Control Revenue ASSETS Cash and investments 2,589,520$       9,408,936$                 42,107,483$        1,976,074$           4,188,320$         Cash with fiscal agent ‐‐‐                            ‐ ‐ Receivables:  Interest 7,046                18,017 61,860 3,763 3,766 Trade, net 37,250               399,536 255 148 4,575 Notes ‐‐‐‐ ‐ Impact Fee ‐‐‐‐ ‐ Special assessments ‐‐‐‐ ‐ Due from other funds  837,000             309,848 500 47,196 811,902             Due from other governments  30,350               380,029 217,822              44,686 7,519,935          Deposits ‐‐‐‐ ‐ Inventory for resale ‐‐‐‐ ‐ Inventory 1,012,224         ‐‐12,343 ‐ Advances to other funds  ‐447,701 ‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 4,513,390$       10,964,067$              42,387,920$        2,084,210$           12,528,498$      LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable 243,060$          942,670$252,416$             69,961$                1,943,574$         Wages payable 296,185             459,768 553,956              86,515 105,668             Due to other funds 1,515                3,585 ‐‐ 4,670,320          Due to other governments  21 503,937 1,967,976           ‐ 19,476                Unearned revenues ‐413,345 ‐‐ ‐ Refundable deposits ‐‐61,785 ‐ ‐ Retainage payable ‐‐‐‐ 1,434,368          Advances from other funds  ‐‐‐‐ ‐ Total liabilities 540,781             2,323,305 2,836,133           156,476                8,173,406          Deferred inflows of resources:   Unavailable revenue ‐‐‐‐ 39,414                Fund balances (deficits):   Nonspendable 1,012,224         447,701 ‐12,343 ‐ Restricted 2,960,385         ‐39,551,787         ‐ 4,315,678          Committed ‐8,193,061 ‐1,915,391             ‐ Assigned ‐‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits)  3,972,609         8,640,762 39,551,787         1,927,734             4,315,678          Total liabilities, deferred inflows of   resources and fund balances (deficits)   4,513,390$       10,964,067$              42,387,920$        2,084,210$           12,528,498$      See accompanying independent auditor's report   COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Special Revenue Funds 90 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 13,413,501$       491,989$     1,331,568$      3,095,934$         58,658,851$      1,444,214$     76,995$        276,894$                 ‐ ‐                    ‐                         ‐‐‐‐ ‐ 21,218                  1,425            2,235                4,946 88,406                2,261              202                667 277 381               80 ‐802,622             18,050            18,026          94,473 ‐ ‐ ‐ ‐‐539,507          ‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 34,547                  27,064         10,940             ‐170,668             ‐‐ ‐ ‐ 3,254            ‐ ‐8,537,099          2,210,279       ‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 13,469,543$       524,113$     1,344,823$      3,100,880$         68,257,646$      4,214,311$     95,223$        372,034$                 386,409$             46$               43,684$           40,469$               1,397,643$         10,005$           1,296$          1,753$ 15,307                  49,083         4,025                ‐80,447                8,956              ‐ 63,377 100,000               ‐ ‐ 33,978 ‐‐‐ ‐ ‐ ‐ ‐ ‐1,718,935          ‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐50 ‐‐ ‐ 71,637                  ‐ ‐ ‐39,391                ‐‐ ‐ 208,800               563,900       ‐ ‐‐‐‐ ‐ 782,153               613,029       47,709             74,447 3,236,466          18,961            1,296            65,130 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ 3,026,433           65,021,180        4,195,350       ‐ ‐ 12,687,390          ‐ 1,297,114        ‐‐‐93,927          306,904 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ (88,916)        ‐ ‐‐‐‐ ‐ 12,687,390          (88,916)        1,297,114        3,026,433           65,021,180        4,195,350       93,927          306,904 13,469,543$       524,113$     1,344,823$      3,100,880$         68,257,646$      4,214,311$     95,223$        372,034$                 Special Revenue Funds 91 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Property and Canals Fee Collier Technology ASSETS Cash and investments 218,550$           929,704$         1,368,644$             33,086,950$         1,013,509$           Cash with fiscal agent ‐‐‐‐ ‐ Receivables:  Interest 385 1,398              2,048 49,901 1,752 Trade, net ‐‐55,219 283 71,580 Notes ‐‐‐‐ ‐ Impact Fee ‐‐‐‐ ‐ Special assessments ‐‐‐‐ ‐ Due from other funds  ‐‐‐‐ ‐ Due from other governments  ‐‐‐‐ ‐ Deposits ‐‐‐‐ ‐ Inventory for resale ‐229,733          ‐‐ ‐ Inventory ‐‐‐‐ ‐ Advances to other funds  ‐‐‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 218,935$           1,160,835$     1,425,911$             33,137,134$         1,086,841$           LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable ‐$‐$4$11,809$                 20,327$                Wages payable ‐‐7,357 8,728 2,392 Due to other funds 1,893 ‐‐‐ ‐ Due to other governments  ‐‐‐‐ ‐ Unearned revenues ‐‐‐‐ ‐ Refundable deposits ‐‐‐‐ ‐ Retainage payable ‐‐‐‐ ‐ Advances from other funds  ‐‐‐‐ ‐ Total liabilities 1,893 ‐7,361 20,537 22,719 Deferred inflows of resources:   Unavailable revenue ‐‐‐‐ ‐ Fund balances (deficits):   Nonspendable ‐‐‐‐ ‐ Restricted 217,042             1,160,835       ‐33,116,597           1,064,122             Committed ‐‐1,418,550               ‐ ‐ Assigned ‐‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits)  217,042             1,160,835       1,418,550               33,116,597           1,064,122             Total liabilities, deferred inflows of   resources and fund balances (deficits)   218,935$           1,160,835$     1,425,911$             33,137,134$         1,086,841$           See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Special Revenue Funds 92 Other Other Other Total Court Court Special Public Safety Special Special Court University Facilities Affordable Revenue Revenue Revenue Revenue Services Extension Fee Housing Funds Funds Funds Funds 1,530,273$      124,727$      6,541,568$      156,573$     4,890,203$           4,044,965$          1,765,384$       194,731,329$        ‐ ‐                      ‐                         ‐                     ‐‐‐ ‐ ‐ 188                9,691                235                ‐2,531 3,129                 287,070                 ‐ ‐ 64,412             ‐‐35,529 24,913               1,627,609             ‐ ‐ ‐ ‐‐‐‐ 539,507                 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ 2,249,665             40,813             ‐ ‐ ‐19,250 ‐‐ 19,003,517           ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ 229,733                 ‐ ‐ ‐ ‐‐‐‐ 1,024,567             ‐ ‐ ‐ ‐‐‐‐ 447,701                 ‐ ‐ ‐ ‐‐‐‐ ‐ 1,571,086$      124,915$      6,615,671$      156,808$     4,909,453$           4,083,025$          1,793,426$       220,140,698$        5,472$             ‐$ 17,666$           ‐$33,346$14,694$               270,548$          5,706,852$            236,203           ‐ ‐ ‐50,239 ‐2,600                 2,030,806             ‐ ‐ ‐ ‐‐48,828 ‐ 4,860,119             1,329,411        ‐ ‐ ‐‐‐‐ 5,539,756             ‐ ‐ ‐ ‐‐‐‐ 413,345                 ‐ ‐ ‐ ‐‐‐‐ 61,835 ‐ ‐ 105,625           ‐‐‐30,995               1,682,016             ‐ ‐ ‐ ‐‐‐‐ 772,700                 1,571,086        ‐ 123,291           ‐83,585 63,522 304,143             21,067,429           ‐ ‐ ‐ ‐‐‐‐ 39,414 ‐ ‐ ‐ ‐‐‐‐ 1,472,268             ‐ 124,915        6,492,380        ‐4,825,868            4,019,503           515,778             170,607,853         ‐ ‐ ‐ 156,808        ‐‐‐ 26,069,145           ‐ ‐ ‐ ‐‐‐973,505             973,505                 ‐ ‐ ‐ ‐‐‐‐ (88,916) ‐ 124,915        6,492,380        156,808        4,825,868            4,019,503           1,489,283         199,033,855         1,571,086$      124,915$      6,615,671$      156,808$     4,909,453$           4,083,025$          1,793,426$       220,140,698$        Special Revenue Funds 93 Permanent Fund Conservation Resource Radio Road East Collier Community Forest Lakes Recovery Park Limited General Limited General Redevelopment Limited General Endowment Obligation Bonds Obligation Bonds Taxable Note Oblibation Bonds ASSETS Cash and investments 1,716,994$           110,026$648$128$ 741,346$               Cash with fiscal agent ‐‐‐802,559             ‐ Receivables:  Interest 2,569 173 ‐‐ 1,118 Trade, net ‐‐‐‐ ‐ Notes ‐‐‐‐ ‐ Impact Fee ‐‐‐‐ ‐ Special assessments ‐‐‐‐ ‐ Due from other funds  ‐630 ‐144,609             104,175                 Due from other governments  ‐‐‐‐ ‐ Deposits ‐‐‐‐ ‐ Inventory for resale ‐‐‐‐ ‐ Inventory ‐‐‐‐ ‐ Advances to other funds  ‐‐‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 1,719,563$           110,829$648$947,296$          846,639$               LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable ‐$‐$‐$‐$ ‐$ Wages payable ‐‐‐‐ ‐ Due to other funds ‐‐‐‐ ‐ Due to other governments  ‐‐‐‐ ‐ Unearned revenues ‐‐‐‐ ‐ Refundable deposits ‐‐‐‐ ‐ Retainage payable ‐‐‐‐ ‐ Advances from other funds  ‐‐‐‐ ‐ Total liabilities ‐‐‐‐ ‐ Deferred inflows of resources:   Unavailable revenue ‐‐‐‐ ‐ Fund balances (deficits):   Nonspendable 1,582,800             ‐‐‐ ‐ Restricted 136,763               110,829 648 947,296             846,639                 Committed ‐‐‐‐ ‐ Assigned ‐‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits)  1,719,563             110,829 648 947,296             846,639                 Total liabilities, deferred inflows of   resources and fund balances (deficits)   1,719,563$           110,829$648$947,296$          846,639$               See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Debt Service Fund 94 Total Emergency Special Other Debt County‐Wide Count‐Wide Correctional Medical Obligation Debt Service Capital Parks Library Facilities Services Revenue Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees 33,261$               89,262$     974,671$           13,601,989$         1,851,077$        1,102,706$      868,723$           564,082$          11,084,666          ‐ 11,887,225        ‐‐‐‐ ‐ 515 141            1,947 21,833 3,186 2,141               3,273 1,047                ‐ 47               47 ‐4,687 ‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐201,042          60,421                56,905              ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ 249,414              ‐349,437             ‐1,360,000          ‐ ‐ ‐ ‐ 12,389 ‐13,755             24,283                5,293                ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 11,118,442$       89,450$     13,113,304$      13,636,211$         2,208,387$        1,319,644$      2,316,700$        627,327$          ‐$ ‐$                ‐$ 3,610,426$            126,784$           20,070$           ‐$ 1,935$               ‐ ‐ ‐ ‐‐‐‐ ‐ 7,950,000            ‐ 7,950,000          6,200 ‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ 767,091 ‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 7,950,000            ‐ 7,950,000          4,383,717              126,784             20,070             ‐ 1,935                ‐ ‐ ‐ ‐‐201,042          60,421                56,905              ‐ ‐ ‐ ‐‐‐‐ ‐ 3,168,442            89,450       5,163,304          ‐‐1,098,532       2,256,279          568,487           ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ 9,252,494              2,081,603         ‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 3,168,442            89,450       5,163,304          9,252,494              2,081,603         1,098,532       2,256,279          568,487           11,118,442$       89,450$     13,113,304$      13,636,211$         2,208,387$        1,319,644$      2,316,700$        627,327$          Debt Service Fund Capital Project Funds 95 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees ASSETS Cash and investments 12,385,367$        20,557,907$     59,992,553$    44,995,802$         1,820,948$             Cash with fiscal agent ‐‐                          ‐                        ‐ ‐ Receivables:  Interest 20,021 33,980               92,836             65,473 7,658 Trade, net ‐‐‐147,927                ‐ Notes ‐‐‐‐ ‐ Impact Fee ‐1,220,416         3,128,471        ‐ 189,487 Special assessments ‐‐‐‐ ‐ Due from other funds  158,409               2,511,000         ‐4,171,651             2,405,000               Due from other governments  ‐99,838               559,566           1,621,074             40,310 Deposits ‐1,250 ‐‐ ‐ Inventory for resale ‐‐‐‐ ‐ Inventory ‐‐‐‐ ‐ Advances to other funds  ‐‐‐‐ ‐ Prepaid costs ‐‐‐‐ ‐ Total assets 12,563,797$        24,424,391$     63,773,426$    51,001,927$         4,463,403$             LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:  Accounts payable 174,276$             78,571$             2,247,900$      1,489,286$            ‐$ Wages payable 2,949 ‐‐108,897                ‐ Due to other funds 398,027               ‐376,775           14,390 ‐ Due to other governments  ‐‐‐1,000,000             ‐ Unearned revenues ‐‐‐‐ ‐ Refundable deposits ‐‐‐‐ ‐ Retainage payable 238 ‐1,157,300        137,305                ‐ Advances from other funds  ‐‐‐‐ 1,955,550               Total liabilities 575,490               78,571               3,781,975        2,749,878             1,955,550               Deferred inflows of resources:   Unavailable revenue ‐1,220,416         3,128,471        ‐ 189,487 Fund balances (deficits):   Nonspendable ‐‐‐‐ ‐ Restricted ‐23,125,404       56,862,980     48,252,049           2,318,366               Committed ‐‐‐‐ ‐ Assigned 11,988,307          ‐‐‐ ‐ Unassigned ‐‐‐‐ ‐ Total fund balances (deficits)  11,988,307          23,125,404       56,862,980     48,252,049           2,318,366               Total liabilities, deferred inflows of   resources and fund balances (deficits)   12,563,797$        24,424,391$     63,773,426$    51,001,927$         4,463,403$             See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Capital Project Funds 96 Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Capital Project Governmental Impact Fees Park Projects Funds Funds 3,399,342$             3,013,795$         1,492,072$          165,646,363$     363,069,357$         ‐ ‐                            ‐‐11,887,225            7,199 4,507 2,434 265,588              557,174 ‐ ‐ 2,387 155,001              1,782,657               ‐ ‐ ‐‐539,507 69,279 ‐ ‐4,926,021           4,926,021               ‐ ‐ 4,154 4,154 4,154 523,000 ‐ 1,003 11,479,500        13,978,579            ‐ ‐ ‐2,376,508           21,380,025            ‐ ‐ ‐1,250 1,250 ‐ ‐ ‐‐229,733 ‐ ‐ ‐‐1,024,567               ‐ ‐ ‐‐447,701 ‐ ‐ ‐‐‐ 3,998,820$             3,018,302$         1,502,050$          184,854,385$     419,827,950$         374,820$                2,614$                 76,751$               8,203,433$         13,910,285$           ‐ ‐ 22,136                  133,982              2,164,788               ‐ ‐ ‐795,392              13,605,511            ‐ ‐ ‐1,000,000           6,539,756               ‐ ‐ ‐‐413,345 ‐ ‐ ‐‐61,835 131,267 ‐ ‐2,193,201           3,875,217               ‐ ‐ ‐1,955,550           2,728,250               506,087 2,614 98,887                  14,281,558        43,298,987            69,279 ‐ ‐4,926,021           4,965,435               ‐ ‐ ‐‐3,055,068               3,423,454               ‐ 71,261                  137,976,812      313,884,732          ‐ ‐ ‐‐26,069,145            ‐ 3,015,688           1,331,902            27,669,994        28,643,499            ‐ ‐ ‐‐(88,916) 3,423,454               3,015,688           1,403,163            165,646,806      371,563,528          3,998,820$             3,018,302$         1,502,050$          184,854,385$     419,827,950$         Capital Project Funds 97 Water Management Grants and Road Unincorporated Community and Pollution Shared Districts Area MSTD Development Control Revenue Revenues: Taxes ‐$34,811,695$         ‐$1,981,982$          ‐$ Licenses, permits and impact fees ‐39,065 24,468,105         615 ‐ Intergovernmental 1,737,615           ‐‐‐ 17,170,282          Charges for services 270,588               3,285,833            3,274,745           334,994               36,646                 Fines and forfeitures ‐311,177                ‐‐ ‐ Interest income 26,785                 163,208                358,135              32,178 27,855                 Special assessments ‐‐‐3,219,735           ‐ Miscellaneous  66,275                 253,769                50,039 2,471 935,967               Total revenues 2,101,263           38,864,747          28,151,024         5,571,975           18,170,750          Expenditures: Current: General government ‐6,327,837            6,682,858           ‐ 689,365               Public safety  ‐4,279,501            13,616,516         ‐ 2,211,027            Physical environment ‐717,169                1,187,888           3,063,119           374,309               Transportation 15,272,508         6,973,391            357,834              2,110,610           42,089                 Economic environment ‐56,660 ‐‐ 4,905,336            Human services ‐‐‐‐ 2,961,501            Culture and recreation ‐11,889,352          ‐‐ 221,349               Debt service Principal ‐‐‐‐ ‐ Interest ‐‐‐‐ ‐ Fiscal charges ‐‐‐‐ ‐ Capital outlay 290,808               522,007                169,852              462,363               12,255,333          Total expenditures  15,563,316         30,765,917          22,014,948         5,636,092           23,660,309          Excess (deficit) of revenues     over (under) expenditures  (13,462,053)        8,098,830            6,136,076           (64,117)                (5,489,559)           Other financing sources (uses): Sale of capital assets  ‐1,400 29 18,102 ‐ Insurance proceeds 239,077               38,981 530 16,000 ‐ Transfers in 16,280,100         1,462,090            877,800              47,197 6,297,176            Transfers out (2,750,600)          (9,719,992)           (1,259,964)          (233,594)              (987) Total other financing sources (uses) 13,768,577         (8,217,521)           (381,605)             (152,295)              6,296,189            Net change in fund balances 306,524               (118,691)               5,754,471           (216,412)              806,630               Fund balances at beginning of year 3,666,085           8,759,453            33,797,316         2,144,146           3,509,048            Fund balances (deficits) at end of year 3,972,609$         8,640,762$           39,551,787$        1,927,734$          4,315,678$          See accompanying independent auditor's report  Special Revenue Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 98 State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts Districts Fee Development Partnership ICRP Fund Administration 3,721,514$        2,837,328$      1,296,327$      ‐$21,838,332$      ‐$‐$ ‐$ ‐ ‐ ‐ ‐‐                           ‐‐ ‐ ‐ ‐ ‐ 1,834,390         568,862             2,210,279       ‐ ‐ 183,223              54,722             ‐ ‐11,364                ‐420,780        296,050 ‐ ‐ ‐ ‐‐‐‐ 947,235 132,519              10,996             14,874             29,901               510,541             16,790            794                3,180 5,502 ‐ ‐ ‐‐‐‐ ‐ 664,765              2,040                9,729                60 88,992                438,662          136,759        10,847 4,707,523          2,905,086        1,320,930        1,864,351         23,018,091        2,665,731       558,333        1,257,312                 ‐ ‐ ‐ ‐‐‐‐ 975,740 ‐ 2,987,912        ‐ 1,747,143         ‐‐1,190,588     1,464,585                 1,988,443          ‐ ‐ ‐4,506,366          ‐‐ ‐ 1,184,640          ‐ 1,069,231        ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐1,453,984       ‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 832,094              ‐ ‐ ‐11,504,475        ‐‐ ‐ ‐ 21,897             ‐ ‐‐‐‐ ‐ ‐ 7,805                ‐ ‐‐‐‐ ‐ ‐ ‐ ‐ ‐‐‐‐ ‐ 368,752              20,294             ‐ 396,342             735,523             ‐‐ ‐ 4,373,929          3,037,908        1,069,231        2,143,485         16,746,364        1,453,984       1,190,588     2,440,325                 333,594              (132,822)          251,699           (279,134)           6,271,727          1,211,747       (632,255)       (1,183,013)               ‐ ‐ ‐ ‐‐‐‐ ‐ 17,786                ‐ 6,339                ‐‐‐12,727           ‐ 508,047              592,163           10,940             ‐170,032             ‐673,500        1,361,400                 (688,057)            (94,029)            (85,734)            ‐(1,063,667)         ‐‐ (39,300) (162,224)            498,134           (68,455)            ‐(893,635)            ‐686,227        1,322,100                 171,370              365,312           183,244           (279,134)           5,378,092          1,211,747       53,972           139,087 12,516,020        (454,228)          1,113,870        3,305,567         59,643,088        2,983,603       39,955           167,817 12,687,390$      (88,916)$          1,297,114$      3,026,433$       65,021,180$      4,195,350$     93,927$        306,904$ Special Revenue Funds 99 GAC Land Court Confiscated Sales, Roads Utility Conservation Information Property and Canals Fee Collier Technology Revenues: Taxes ‐$‐$261,037$4,312$                 ‐$ Licenses, permits and impact fees ‐‐‐‐ ‐ Intergovernmental ‐‐‐14,700                ‐ Charges for services ‐‐100,350 570 863,982                Fines and forfeitures 9,760 ‐‐‐ ‐ Interest income 2,645 8,363 11,835 302,410              10,324 Special assessments ‐‐‐‐ ‐ Miscellaneous  ‐‐‐78,476                ‐ Total revenues 12,405                 8,363 373,222 400,468              874,306                Expenditures: Current: General government ‐‐‐‐ 763,972                Public safety  67,000                 ‐‐‐ 43,205 Physical environment ‐‐247,764 580,258              ‐ Transportation ‐‐‐‐ ‐ Economic environment ‐‐‐‐ ‐ Human services ‐‐‐‐ 7,001 Culture and recreation ‐13 ‐‐ ‐ Debt service Principal ‐‐‐‐ ‐ Interest ‐‐‐‐ ‐ Fiscal charges ‐‐‐‐ ‐ Capital outlay ‐‐23,372 430,636              20,404 Total expenditures  67,000                 13 271,136 1,010,894         834,582                Excess (deficit) of revenues     over (under) expenditures  (54,595)                8,350 102,086 (610,426)           39,724 Other financing sources (uses): Sale of capital assets  ‐‐‐‐ ‐ Insurance proceeds ‐‐‐‐ ‐ Transfers in ‐‐‐64,980                ‐ Transfers out (57,745)                ‐‐(7) ‐ Total other financing sources (uses) (57,745)                ‐‐64,973                ‐ Net change in fund balances (112,340)             8,350 102,086 (545,453)           39,724 Fund balances at beginning of year 329,382               1,152,485         1,316,464               33,662,050       1,024,398             Fund balances (deficits) at end of year 217,042$            1,160,835$        1,418,550$             33,116,597$      1,064,122$           See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Special Revenue Funds 100 Other Other Other Total Court Court Special Public Safety Special Special Court University Facilities Affordable Revenue Revenue Revenue Revenue Services Extension Fee Housing Funds Funds Funds Funds ‐$ ‐$ ‐$ ‐$‐$‐$‐$ 66,752,527$            ‐ ‐ ‐ ‐‐‐7,894 24,515,679              310,321        ‐ ‐ ‐19,250               ‐‐ 23,865,699              6,263,767     20,778           ‐ ‐1,500,055         954,131              293,189              18,165,767              ‐ ‐ 900,299           ‐‐56,756 80,539                2,305,766                12,146           1,122             60,972             1,414            11,159               21,801 25,306                1,797,253                ‐ ‐ ‐ ‐‐‐‐ 3,225,237                ‐ ‐ ‐ ‐‐82,486 159,021              2,980,358                6,586,234     21,900           961,271           1,414            1,530,464         1,115,174           565,949              143,608,286            6,586,234     ‐ 428,322           ‐1,611,974         ‐179,378              24,245,680              ‐ ‐ ‐ ‐‐1,026,098           130,600              28,764,175              ‐ 16,432           ‐ ‐‐‐‐ 12,681,748              ‐ ‐ ‐ ‐‐‐‐ 27,010,303              ‐ ‐ ‐ ‐‐‐‐ 6,415,980                ‐ ‐ ‐ ‐‐‐172,472              3,140,974                ‐ ‐ ‐ ‐‐‐77,695                24,524,978              ‐ ‐ ‐ ‐‐‐‐ 21,897 ‐ ‐ ‐ ‐‐‐‐ 7,805 ‐ ‐ ‐ ‐‐‐‐ ‐ ‐ 1,372             849,331           ‐2,423 11,819 1,607,210          18,167,841              6,586,234     17,804           1,277,653        ‐1,614,397         1,037,917           2,167,355          144,981,381            ‐ 4,096             (316,382)          1,414            (83,933)              77,257 (1,601,406)         (1,373,095)               ‐ ‐ ‐ ‐‐‐‐ 19,531 ‐ ‐ ‐ ‐‐‐‐ 331,440 ‐ ‐ ‐ ‐‐250,000              86,000                28,681,425              ‐ ‐ ‐ ‐‐‐‐ (15,993,676)             ‐ ‐ ‐ ‐‐250,000              86,000                13,038,720              ‐ 4,096             (316,382)          1,414            (83,933)              327,257              (1,515,406)         11,665,625              ‐ 120,819        6,808,762        155,394         4,909,801         3,692,246           3,004,689          187,368,230            ‐$ 124,915$      6,492,380$      156,808$      4,825,868$        4,019,503$          1,489,283$         199,033,855$         Special Revenue Funds 101 Permanent Fund Conservation Resource Radio Road East Collier Community Forest Lakes Recovery Park Limited General Limited General Redevelopment Limited General Endowment Obligation Bonds Obligation Bonds Taxable Note Oblibation Bonds Revenues: Taxes ‐$68,126$                 84$‐$ 413,620$               Licenses, permits and impact fees ‐‐‐‐ ‐ Intergovernmental ‐‐‐‐ ‐ Charges for services ‐‐‐‐ ‐ Fines and forfeitures ‐‐‐‐ ‐ Interest income 15,354 1,148 2 2,357 7,416 Special assessments ‐‐‐‐ ‐ Miscellaneous  250 ‐‐‐ ‐ Total revenues 15,604 69,274 86 2,357 421,036                 Expenditures: Current: General government ‐29 11 ‐ ‐ Public safety  ‐‐‐‐ ‐ Physical environment 9,093 ‐‐‐ ‐ Transportation ‐‐‐‐ ‐ Economic environment ‐‐‐‐ ‐ Human services ‐‐‐‐ ‐ Culture and recreation ‐‐‐‐ ‐ Debt service Principal ‐52,434 ‐503,856               425,000                 Interest ‐12,646 ‐237,894               130,775                 Fiscal charges ‐2,584 ‐111 2,957 Capital outlay 2,996 ‐‐‐ ‐ Total expenditures  12,089 67,693 11 741,861               558,732                 Excess (deficit) of revenues     over (under) expenditures  3,515 1,581 75 (739,504)              (137,696)                Other financing sources (uses): Sale of capital assets  ‐‐‐‐ ‐ Insurance proceeds ‐‐‐‐ ‐ Transfers in ‐630 ‐858,500               104,175                 Transfers out ‐(2,030)(64,980)‐ (13,215) Total other financing sources (uses)‐(1,400)(64,980) 858,500               90,960 Net change in fund balances 3,515 181 (64,905) 118,996               (46,736) Fund balances at beginning of year 1,716,048              110,648                65,553 828,300               893,375                 Fund balances (deficits) at end of year 1,719,563$            110,829$              648$947,296$              846,639$               See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Debt Servive Fund 102 Total Emergency Special Other Debt County‐Wide Count‐Wide Correctional Medical Obligation Debt Service Capital Parks Library Facilities Services Revenue Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees ‐$ 761$ 482,591$          ‐$‐$‐$ ‐$‐$ ‐ ‐ ‐ ‐573,399           1,002,395     1,798,860          451,547         ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ ‐46,180              ‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ 21,582 8,791                 41,296               97,560               16,366              12,527           15,898                10,331            ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ 28,496               350,182           ‐ ‐‐ 21,582 9,552                 523,887            126,056             986,127           1,014,922     1,814,758          461,878         ‐ ‐ 40 1,409,617         ‐‐ ‐‐ ‐ ‐ ‐ 757,116             ‐‐ 472 15,479            ‐ ‐ ‐ 46,335               ‐‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ 30 480,663           17,947           ‐‐ 9,280,000                9,900,000         20,161,290       ‐‐‐ ‐‐ 9,019,619                3,241,960         12,642,894       ‐‐‐ ‐‐ 7,757 5,171                 18,580               ‐‐‐ ‐‐ ‐ ‐ ‐ 8,322,769         1,135,534        367,486         ‐1,432,835      18,307,376              13,147,131       32,822,804       10,535,867       1,616,197        385,433         472 1,448,314      (18,285,794)            (13,137,579)     (32,298,917)     (10,409,811)      (630,070)          629,489         1,814,286          (986,436)        ‐ ‐ ‐ ‐‐‐ ‐‐ ‐ ‐ ‐ 25,000               ‐‐ ‐‐ 18,066,600              13,142,900       32,172,805       17,199,800       1,605,437        585,000         488,800             150,700         ‐ (754) (80,979)             (7,143,636)        (331,285)          (1,159,300)    (1,877,400)         (448,000)        18,066,600              13,142,146       32,091,826       10,081,164       1,274,152        (574,300)        (1,388,600)         (297,300)        (219,194) 4,567                 (207,091)           (328,647)           644,082           55,189           425,686             (1,283,736)     3,387,636                84,883               5,370,395         9,581,141         1,437,521        1,043,343     1,830,593          1,852,223      3,168,442$              89,450$            5,163,304$       9,252,494$        2,081,603$       1,098,532$    2,256,279$        568,487$        Debt Servive Fund Capital Project Funds 103 Parks Road Government Water Impact Impact Road Facilities Management Districts Districts Construction Impact Fees Revenues: Taxes ‐$‐$‐$14,299,859$     ‐$ Licenses, permits and impact fees ‐9,109,610          18,632,706               30,100               2,955,204           Intergovernmental ‐‐188,009 6,178,381          ‐ Charges for services ‐‐‐3,224,089          ‐ Fines and forfeitures ‐‐‐‐ ‐ Interest income 123,447               188,297             550,150 350,601             48,003                 Special assessments 385,756               ‐‐‐ ‐ Miscellaneous  18 4,752 ‐371,854             ‐ Total revenues 509,221               9,302,659          19,370,865               24,454,884      3,003,207           Expenditures: Current: General government ‐‐‐‐ 173,306               Public safety  ‐‐‐‐ ‐ Physical environment 663,139               ‐‐‐ ‐ Transportation ‐‐289,148 8,443,803          ‐ Economic environment ‐‐‐‐ ‐ Human services ‐‐‐‐ ‐ Culture and recreation ‐45,023                ‐‐ ‐ Debt service Principal ‐‐‐‐ ‐ Interest ‐‐‐‐ 5,270 Fiscal charges ‐‐‐‐ ‐ Capital outlay 4,424,258            1,019,633          12,461,119               4,599,996          1,832,630           Total expenditures  5,087,397            1,064,656          12,750,267               13,043,799      2,011,206           Excess (deficit) of revenues     over (under) expenditures  (4,578,176)          8,238,003          6,620,598 11,411,085      992,001               Other financing sources (uses): Sale of capital assets  ‐‐‐‐ ‐ Insurance proceeds ‐‐‐2,064                  ‐ Transfers in 5,564,403            ‐‐17,287,100      4,065,600           Transfers out (2,262,519)          (2,935,700)         (2,970,003)                (16,004,777)     (5,169,400)          Total other financing sources (uses) 3,301,884            (2,935,700)         (2,970,003)                1,284,387          (1,103,800)          Net change in fund balances (1,276,292)          5,302,303          3,650,595 12,695,472      (111,799)             Fund balances at beginning of year 13,264,599         17,823,101        53,212,385               35,556,577      2,430,165           Fund balances (deficits) at end of year 11,988,307$       23,125,404$      56,862,980$              48,252,049$     2,318,366$         See accompanying independent auditor's report  Capital Project Funds COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 104 Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Capital Project Governmental Impact Fees Park Projects Funds Funds ‐$ ‐$ ‐$14,299,859$         81,534,977$           1,647,065            ‐ 5,563 36,206,449          60,722,128            ‐ ‐ ‐6,366,390            30,232,089            ‐ ‐ ‐3,270,269            21,436,036            ‐ ‐ ‐‐2,305,766               40,640                  27,139 12,810                 1,493,769            3,347,672               ‐ ‐ 134,811               520,567                3,745,804               ‐ ‐ ‐755,302                3,735,910               1,687,705            27,139 153,184               62,912,605          207,060,382          ‐ ‐ ‐1,582,923            25,828,643            34,326                  ‐ ‐807,393                29,571,568            ‐ ‐ 1,033,431           1,742,905            14,433,746            ‐ ‐ ‐8,732,951            35,743,254            ‐ ‐ ‐‐6,415,980               ‐ ‐ ‐‐3,140,974               ‐ 17,856 44,742                 606,261                25,131,239            ‐ ‐ ‐‐20,183,187            ‐ ‐ ‐5,270 12,655,969            ‐ ‐ ‐‐18,580 1,406,113            ‐ 253,901               37,256,274          55,427,111            1,440,439            17,856 1,332,074           50,733,977          228,550,251          247,266               9,283 (1,178,890)          12,178,628          (21,489,869)           ‐ ‐ ‐‐19,531 ‐ ‐ ‐27,064 358,504 1,616,400            ‐ 1,558,603           50,121,843          110,976,073          (1,872,700)           ‐ (4,258) (42,178,978)         (58,253,633)           (256,300)              ‐ 1,554,345           7,969,929            53,100,475            (9,034) 9,283 375,455               20,148,557          31,610,606            3,432,488            3,006,405 1,027,708           145,498,249        339,952,922          3,423,454$          3,015,688$                 1,403,163$         165,646,806$       371,563,528$         Capital Project Funds 105 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$35,827,000$    34,811,695$     (1,015,305)$      Licenses, permits and impact fees ‐ ‐‐212,000           39,065                (172,935)           Intergovernmental 1,561,100          1,737,615        176,515           ‐ ‐ ‐ Charges for services 229,100             270,588           41,488              3,699,900        3,285,833          (414,067)           Fines and forfeitures ‐ ‐‐340,000           311,177             (28,823)             Interest income 5,000                  27,249              22,249              61,100              168,940             107,840            Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 23,100                66,275              43,175              179,900           253,769             73,869               Total revenues 1,818,300          2,101,727        283,427           40,319,900      38,870,479        (1,449,421)       Expenditures: Current: General government ‐ ‐‐7,084,982        6,325,210          759,772            Public safety ‐ ‐‐4,458,343        4,279,501          178,842            Physical environment ‐ ‐‐965,300           717,169             248,131            Transportation 16,532,314        15,165,175      1,367,139        8,177,982        6,973,391          1,204,591         Economic environment ‐ ‐‐106,300           56,660                49,640               Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐12,741,735      11,889,352        852,383            Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 354,648             290,808           63,840              630,955           522,007             108,948            Total expenditures 16,886,962        15,455,983      1,430,979        34,165,597      30,763,290        3,402,307         Excess (deficit) of revenues    over (under) expenditures  (15,068,662)      (13,354,256)    1,714,406        6,154,303        8,107,189          1,952,886         Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ 1,400                  1,400                 Insurance proceeds 110,000             239,077           129,077           30,000              38,981                8,981                 Transfers in 16,280,100        16,280,100      ‐1,550,770        1,660,260          109,490            Transfers out (2,750,600)        (2,750,600)      ‐(9,952,530)      (9,836,962)        115,568            Total other financing sources (uses) 13,639,500        13,768,577      129,077           (8,371,760)      (8,136,321)        235,439            Net change in fund balances (1,429,162)        414,321           1,843,483        (2,217,457)      (29,132)              2,188,325         Fund balances at beginning of year 1,496,462          1,496,462        ‐5,917,684        5,917,684          ‐ Fund balances (deficits) at end of year 67,300$             1,910,783$       1,843,483$       3,700,227$       5,888,552$        2,188,325$        Reconciliation: Net change in fund balance, budgetary basis 414,321$          (29,132)$             Change in fair value of investments (464)(5,732)                 Ad valorem refunds not budgeted ‐(2,627)                 Change in inventory (107,333)          ‐  Advances budgeted as transfers ‐(81,200)               Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis 306,524$          (118,691)$           See accompanying independent auditor's report   Road Disctricts COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 (Budgetary Basis) Unincorporated Area MSTD (Budgetary Basis) 106 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$2,055,600$       1,981,982$        (73,618)$            20,891,100       24,468,105       3,577,005        600 615 15 ‐ ‐‐‐‐ ‐ 2,863,500         3,274,745         411,245           433,600           334,994             (98,606)             ‐ ‐‐‐‐ ‐ 131,900            370,923            239,023           9,000                33,309                24,309               ‐ ‐‐3,340,700        3,219,735          (120,965)           500 50,039               49,539              ‐2,471                  2,471                 23,887,000       28,163,812       4,276,812        5,839,500        5,573,106          (266,394)           8,298,023         6,682,858         1,615,165        ‐‐ ‐ 17,616,781       13,616,516       4,000,265        ‐‐ ‐ 1,465,700         1,187,888         277,812           3,439,124        3,068,209          370,915            370,600            357,834            12,766              2,178,899        2,110,610          68,289               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,007,500         169,852            837,648           452,611           462,363             (9,752)               28,758,604       22,014,948       6,743,656        6,070,634        5,641,182          429,452            (4,871,604)       6,148,864         11,020,468      (231,134)          (68,076)              163,058            ‐ 29 29 ‐18,102                18,102               ‐ 530 530 ‐16,000                16,000               977,800            977,800            ‐‐47,672                47,672               (1,321,900)       (1,359,964)       (38,064)            (267,700)          (234,069)            33,631               (344,100)           (381,605)           (37,505)            (267,700)          (152,295)            115,405            (5,215,704)       5,767,259         10,982,963      (498,834)          (220,371)            278,463            29,061,905       29,061,905       ‐1,793,434        1,793,434          ‐ 23,846,201$     34,829,164$    10,982,963$    1,294,600$       1,573,063$        278,463$           5,767,259$       (220,371)$           (12,788)             (1,131)                 ‐(126)  ‐5,216                   ‐‐  ‐‐  5,754,471$       (216,412)$           Water Management and Pollution Control (Budgetary Basis)(Budgetary Basis) Community Development 107 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$3,854,700$       3,721,514$        (133,186)$          Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental 48,079,069        16,038,132      (32,040,937)    ‐ ‐ ‐ Charges for services 92,464                36,646              (55,818)            259,400           183,223             (76,177)             Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 3,295                  27,031              23,736              35,300              137,432             102,132            Special assessments ‐ ‐‐5,645                5,502                  (143) Miscellaneous 411,278             935,967           524,689           669,200           664,765             (4,435)               Total revenues 48,586,106        17,037,776      (31,548,330)    4,824,245        4,712,436          (111,809)           Expenditures: Current: General government 2,485,234          650,483           1,834,751        ‐ ‐ ‐ Public safety 4,452,520          1,638,843        2,813,677        ‐ ‐ ‐ Physical environment 444,925             374,309           70,616              3,691,054        1,988,443          1,702,611         Transportation 1,859,203          42,089              1,817,114        2,259,731        1,182,406          1,077,325         Economic environment 10,053,778        4,905,336        5,148,442        ‐ ‐ ‐ Human services 5,422,817          2,961,501        2,461,316        ‐ ‐ ‐ Culture and recreation 753,422             221,349           532,073           1,049,731        831,984             217,747            Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 38,710,907        12,169,145      26,541,762      8,281,181        368,752             7,912,429         Total expenditures 64,182,806        22,963,055      41,219,751      15,281,697      4,371,585          10,910,112       Excess (deficit) of revenues    over (under) expenditures  (15,596,700)      (5,925,279)      9,671,421        (10,457,452)    340,851             10,798,303       Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ 17,786                17,786               Transfers in 12,716,175        6,576,647        (6,139,528)      473,500           508,047             34,547               Transfers out (196,461)            (147,044)          49,417              (762,940)          (739,257)            23,683               Total other financing sources (uses) 12,519,714        6,429,603        (6,090,111)      (289,440)          (213,424)            76,016               Net change in fund balances (3,076,986)        504,324           3,581,310        (10,746,892)    127,427             10,874,319       Fund balances at beginning of year 3,782,200          3,782,200        ‐11,670,792      11,670,792        ‐ Fund balances (deficits) at end of year 705,214$           4,286,524$       3,581,310$       923,900$          11,798,219$     10,874,319$     Reconciliation: Net change in fund balance, budgetary basis 504,324$          127,427$            Change in fair value of investments (698)(4,913)                 Ad valorem refunds not budgeted ‐(2,344)                 Change in inventory ‐‐  Advances budgeted as transfers ‐51,200                 Unbudgeted funds 303,004           ‐  Net change in fund balance, GAAP basis 806,630$          171,370$            See accompanying independent auditor's report   Grants and Shared Revenues Improvement Districts (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 108 Budget Actual Variance Budget Actual Variance 2,942,900$        2,837,328$       (105,572)$         1,343,500$       1,296,327$        (47,173)$            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 15,000               54,722               39,722              ‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,200                 11,325               10,125              2,500                15,385                12,885               ‐ ‐‐‐‐ ‐ 3,700                 2,040                 (1,660)              ‐9,729                  9,729                 2,962,800         2,905,415         (57,385)            1,346,000        1,321,441          (24,559)             ‐ ‐‐‐‐ ‐ 3,234,054         2,987,867         246,187           ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐1,195,900        1,069,073          126,827            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 30,000               29,702               298 ‐‐ ‐ 20,294               20,294               ‐‐‐ ‐ 3,284,348         3,037,863         246,485           1,195,900        1,069,073          126,827            (321,548)           (132,448)           189,100           150,100           252,368             102,268            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐6,339                  6,339                 751,000            721,300            (29,700)            ‐10,940                10,940               (413,852)           (371,066)           42,786              (101,400)          (85,734)              15,666               337,148            350,234            13,086              (101,400)          (68,455)              32,945               15,600               217,786            202,186           48,700              183,913             135,213            104,300            104,300            ‐985,700           985,700             ‐ 119,900$           322,086$          202,186$          1,034,400$       1,169,613$        135,213$           217,786$          183,913$            (329)(511)  (45)(158)  ‐‐  147,900            ‐  ‐‐  365,312$          183,244$            Fire Control Districts Lighting Districts (Budgetary Basis)(Budgetary Basis) 109 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$19,605,900$    21,838,332$     2,232,432$        Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental 1,725,000          1,834,390        109,390           ‐ 568,862             568,862            Charges for services ‐ ‐‐27,000              11,364                (15,636)             Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 21,000                31,072              10,072              202,700           492,191             289,491            Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ 60 60 59,000              88,992                29,992               Total revenues 1,746,000          1,865,522        119,522           19,894,600      22,999,741        3,105,141         Expenditures: Current: General government ‐ ‐‐‐ ‐ ‐ Public safety 2,949,069          1,747,143        1,201,926        ‐ ‐ ‐ Physical environment ‐ ‐‐5,026,709        4,506,366          520,343            Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐14,844,772      11,504,475        3,340,297         Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 417,686             396,342           21,344              9,902,233        735,523             9,166,710         Total expenditures 3,366,755          2,143,485        1,223,270        29,773,714      16,746,364        13,027,350       Excess (deficit) of revenues    over (under) expenditures  (1,620,755)        (277,963)          1,342,792        (9,879,114)      6,253,377          16,132,491       Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in ‐ ‐‐5,545,700        2,968,227          (2,577,473)       Transfers out ‐ ‐‐(6,420,200)      (3,861,862)        2,558,338         Total other financing sources (uses)‐ ‐‐(874,500)          (893,635)            (19,135)             Net change in fund balances (1,620,755)        (277,963)          1,342,792        (10,753,614)    5,359,742          16,113,356       Fund balances at beginning of year 3,898,255          3,898,255        ‐50,658,048      50,658,048        ‐ Fund balances (deficits) at end of year 2,277,500$        3,620,292$       1,342,792$       39,904,434$    56,017,790$     16,113,356$     Reconciliation: Net change in fund balance, budgetary basis (277,963)$         5,359,742$         Change in fair value of investments (1,171)              18,350                 Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis (279,134)$         5,378,092$         See accompanying independent auditor's report   911 Enhancement Fee Tourist Development (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 110 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ ‐ ‐‐‐‐ ‐ 6,537,979         2,210,279         (4,327,700)      ‐‐ ‐ ‐ ‐‐425,700           420,780             (4,920)               ‐ ‐‐‐‐ ‐ 19,664               17,537               (2,127)              300 812 512 ‐ ‐‐‐‐ ‐ 109,277            438,662            329,385           131,000           136,759             5,759                 6,666,920         2,666,478         (4,000,442)      557,000           558,351             1,351                 ‐ ‐‐‐‐ ‐ ‐ ‐‐1,240,300        1,190,588          49,712               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,666,920         1,453,984         5,212,936        ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,666,920         1,453,984         5,212,936        1,240,300        1,190,588          49,712               ‐ 1,212,494         1,212,494        (683,300)          (632,237)            51,063               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐12,727                12,727               ‐ ‐‐673,500           673,500             ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐673,500           686,227             12,727               ‐ 1,212,494         1,212,494        (9,800)              53,990                63,790               ‐ ‐‐31,200              31,200                ‐ ‐$ 1,212,494$       1,212,494$       21,400$            85,190$             63,790$             1,212,494$       53,990$              (747)(18)  ‐‐  ‐‐  ‐‐  ‐‐  1,211,747$       53,972$              State Housing Initiativeship Partnership 800 MHZ IRCP Fund (Budgetary Basis)(Budgetary Basis) 111 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services 165,000             296,050           131,050           ‐ ‐ ‐ Fines and forfeitures 968,700             947,235           (21,465)            ‐ 9,760                  9,760                 Interest income 1,300                  3,257                1,957                2,200                2,752                  552 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ 10,847              10,847              ‐ ‐ ‐ Total revenues 1,135,000          1,257,389        122,389           2,200                12,512                10,312               Expenditures: Current: General government 1,030,000          975,740           54,260              ‐ ‐ ‐ Public safety 1,537,700          1,464,585        73,115              67,500              67,000                500 Physical environment ‐ ‐‐‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 3,000                  ‐3,000                ‐ ‐ ‐ Total expenditures 2,570,700          2,440,325        130,375           67,500              67,000                500 Excess (deficit) of revenues    over (under) expenditures  (1,435,700)        (1,182,936)      252,764           (65,300)            (54,488)              10,812               Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 1,492,700          1,492,700        ‐‐ ‐ ‐ Transfers out (170,600)            (170,600)          ‐(117,670)          (57,745)              59,925               Total other financing sources (uses) 1,322,100          1,322,100        ‐(117,670)          (57,745)              59,925               Net change in fund balances (113,600)            139,164           252,764           (182,970)          (112,233)            70,737               Fund balances at beginning of year 168,000             168,000           ‐363,203           363,203             ‐ Fund balances (deficits) at end of year 54,400$             307,164$          252,764$          180,233$          250,970$           70,737$             Reconciliation: Net change in fund balance, budgetary basis 139,164$          (112,233)$           Change in fair value of investments (77)(107)  Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis 139,087$          (112,340)$           See accompanying independent auditor's report   State Court Administration Confiscated Property (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 112 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$167,900$          261,037$           93,137$             ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐100,000           100,350             350 ‐ ‐‐‐‐ ‐ 3,500                 8,680                 5,180                1,500                12,261                10,761               ‐ ‐‐‐‐ ‐ 17,000               ‐(17,000)            ‐‐ ‐ 20,500               8,680                 (11,820)            269,400           373,648             104,248            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐441,840           247,764             194,076            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 700 13 687 ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐26,500              23,372                3,128                 700 13 687 468,340           271,136             197,204            19,800               8,667                 (11,133)            (198,940)          102,512             301,452            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 19,800               8,667                 (11,133)            (198,940)          102,512             301,452            833,400            833,400            ‐1,196,740        1,196,740          ‐ 853,200$           842,067$          (11,133)$           997,800$          1,299,252$        301,452$           8,667$               102,512$            (317)(426)  ‐‐  ‐‐  ‐‐  ‐‐  8,350$               102,086$            GAC Land Sales, Roads and Canals Utility Fee (Budgetary Basis)(Budgetary Basis) 113 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ 4,334$               4,334$               ‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental 14,700                14,700              ‐‐ ‐ ‐ Charges for services ‐ 570 570 750,000           863,982             113,982            Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 163,700             313,900           150,200           3,800                10,697                6,897                 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 27,200                78,476              51,276              ‐ ‐ ‐ Total revenues 205,600             411,980           206,380           753,800           874,679             120,879            Expenditures: Current: General government ‐ ‐‐788,992           763,972             25,020               Public safety ‐ ‐‐57,300              43,205                14,095               Physical environment 769,336             580,258           189,078           ‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐14,752              7,001                  7,751                 Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 568,811             430,636           138,175           98,008              20,404                77,604               Total expenditures 1,338,147          1,010,894        327,253           959,052           834,582             124,470            Excess (deficit) of revenues    over (under) expenditures  (1,132,547)        (598,914)          533,633           (205,252)          40,097                245,349            Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 585,100             564,980           (20,120)            ‐ ‐ ‐ Transfers out (514,082)            (500,007)          14,075              ‐ ‐ ‐ Total other financing sources (uses) 71,018                64,973              (6,045)              ‐ ‐ ‐ Net change in fund balances (1,061,529)        (533,941)          527,588           (205,252)          40,097                245,349            Fund balances at beginning of year 33,425,408        33,425,408      ‐822,052           822,052             ‐ Fund balances (deficits) at end of year 32,363,879$     32,891,467$    527,588$          616,800$          862,149$           245,349$           Reconciliation: Net change in fund balance, budgetary basis (533,941)$         40,097$              Change in fair value of investments (11,490)            (373)  Ad valorem refunds not budgeted (22)‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis (545,453)$         39,724$              See accompanying independent auditor's report   Conservation Collier Court Information Technology (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 114 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ ‐ ‐‐‐‐ ‐ 219,000            310,321            91,321              ‐‐ ‐ 6,572,264         6,263,767         (308,497)          28,000              20,778                (7,222)               ‐ ‐‐‐‐ ‐ 4,400                 12,146               7,746                ‐1,164                  1,164                 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,795,664         6,586,234         (209,430)          28,000              21,942                (6,058)               6,795,664         6,586,234         209,430           ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐52,550              16,432                36,118               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐1,450                1,372                  78 6,795,664         6,586,234         209,430           54,000              17,804                36,196               ‐ ‐‐(26,000)            4,138                  30,138               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐(26,000)            4,138                  30,138               ‐ ‐‐89,900              89,900                ‐ ‐$ ‐$‐$63,900$            94,038$             30,138$             ‐$4,138$                 ‐(42)  ‐‐  ‐‐  ‐‐  ‐‐  ‐$4,096$                 University Extension Court Services (Budgetary Basis) 115 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐‐ ‐ ‐ Fines and forfeitures 945,000             900,299           (44,701)            ‐ ‐ ‐ Interest income 20,000                63,328              43,328              ‐ 1,467                  1,467                 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ ‐‐‐ ‐ ‐ Total revenues 965,000             963,627           (1,373)              ‐ 1,467                  1,467                 Expenditures: Current: General government 756,430             428,322           328,108           ‐ ‐ ‐ Public safety ‐ ‐‐‐ ‐ ‐ Physical environment ‐ ‐‐‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐131,000           ‐ 131,000            Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 2,393,059          849,331           1,543,728        ‐ ‐ ‐ Total expenditures 3,149,489          1,277,653        1,871,836        131,000           ‐ 131,000            Excess (deficit) of revenues    over (under) expenditures  (2,184,489)        (314,026)          1,870,463        (131,000)          1,467                  132,467            Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in ‐ ‐‐‐ ‐ ‐ Transfers out ‐ ‐‐‐ ‐ ‐ Total other financing sources (uses)‐ ‐‐‐ ‐ ‐ Net change in fund balances (2,184,489)        (314,026)          1,870,463        (131,000)          1,467                  132,467            Fund balances at beginning of year 6,696,389          6,696,389        ‐131,000           131,000             ‐ Fund balances (deficits) at end of year 4,511,900$        6,382,363$       1,870,463$       ‐$ 132,467$           132,467$           Reconciliation: Net change in fund balance, budgetary basis (314,026)$         1,467$                 Change in fair value of investments (2,356)              (53)  Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis (316,382)$         1,414$                 See accompanying independent auditor's report   Court Facilities Fee Affordable Housing (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 116 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ ‐ ‐‐‐‐ ‐ 19,250               19,250               ‐‐‐ ‐ 1,405,000         1,500,055         95,055              90,000              91,106                1,106                 ‐ ‐‐60,000              56,756                (3,244)               6,900                 11,159               4,259                10,400              16,495                6,095                 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,431,150         1,530,464         99,314              160,400           164,357             3,957                 2,594,650         1,611,974         982,676           ‐‐ ‐ ‐ ‐‐538,024           186,568             351,456            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,128,700         2,423                 1,126,277        11,976              11,819                157 3,723,350         1,614,397         2,108,953        550,000           198,387             351,613            (2,292,200)       (83,933)             2,208,267        (389,600)          (34,030)              355,570            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐(199,299)          (138,141)            61,158               ‐ ‐‐(199,299)          (138,141)            61,158               (2,292,200)       (83,933)             2,208,267        (588,899)          (172,171)            416,728            4,479,529         4,479,529         ‐1,819,065        1,819,065          ‐ 2,187,329$        4,395,596$       2,208,267$       1,230,166$       1,646,894$        416,728$           (83,933)$           (172,171)$           ‐(607)  ‐‐  ‐‐  ‐‐  ‐500,035              (83,933)$           327,257$            Other Public Safety Revenue Funds Other Court Special Revenue Funds (Budgetary Basis) 117 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees 8,400                  7,894                (506)‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services 317,100             293,189           (23,911)            ‐ ‐ ‐ Fines and forfeitures 81,000                80,539              (461)‐ ‐ ‐ Interest income 9,600                  26,337              16,737              8,600                15,939                7,339                 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 104,700             159,021           54,321              ‐ 250 250 Total revenues 520,800             566,980           46,180              8,600                16,189                7,589                 Expenditures: Current: General government 240,300             179,378           60,922              ‐ ‐ ‐ Public safety 516,000             130,600           385,400           ‐ ‐ ‐ Physical environment ‐ ‐‐41,904              9,093                  32,811               Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services 183,600             172,472           11,128              ‐ ‐ ‐ Culture and recreation 121,150             77,695              43,455              ‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 1,641,158          1,607,210        33,948              2,996                2,996                  ‐ Total expenditures 2,702,208          2,167,355        534,853           44,900              12,089                32,811               Excess (deficit) of revenues    over (under) expenditures  (2,181,408)        (1,600,375)      581,033           (36,300)            4,100                  40,400               Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 86,000                86,000              ‐‐ ‐ ‐ Transfers out ‐ ‐‐‐ ‐ ‐ Total other financing sources (uses) 86,000                86,000              ‐‐ ‐ ‐ Net change in fund balances (2,095,408)        (1,514,375)      581,033           (36,300)            4,100                  40,400               Fund balances at beginning of year 2,587,708          2,587,708        ‐1,709,000        1,709,000          ‐ Fund balances (deficits) at end of year 492,300$           1,073,333$       581,033$          1,672,700$       1,713,100$        40,400$             Reconciliation: Net change in fund balance, budgetary basis (1,514,375)$     4,100$                 Change in fair value of investments (1,031)              (585)  Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis (1,515,406)$     3,515$                 See accompanying independent auditor's report   Other Special Revenue Funds Resource Recovery Park Endowment (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 118 Budget Actual Variance Budget Actual Variance 70,600$             68,126$            (2,474)$             ‐$84$ 84$ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ 1,189                 1,189                500 2 (498) ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 70,600               69,315               (1,285)              500 86 (414) ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 71,000               67,664               3,336                ‐‐ ‐ ‐ ‐‐‐‐ ‐ 71,000               67,664               3,336                ‐‐ ‐ (400) 1,651                 2,051                500 86 (414) ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ 630 630 ‐‐ ‐ (4,400)               (2,030)               2,370                (84,900)            (64,980)              19,920               (4,400)               (1,400)               3,000                (84,900)            (64,980)              19,920               (4,800)               251 5,051                (84,400)            (64,894)              19,506               105,900            105,900            ‐84,600              84,600                ‐ 101,100$           106,151$          5,051$               200$19,706$             19,506$             251$(64,894)$             (41)‐  (29)(11)  ‐‐  ‐‐  ‐‐  181$(64,905)$             Radio Road East Limited General Conservation Collier Limited General Obligation Bonds (Budgetary Basis)Obligation Bonds (Budgetary Basis) 119 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$428,600$          413,620$           (14,980)$            Licenses, permits and impact fees ‐ ‐‐‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐‐ ‐ ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 3,800                  2,361                (1,439)              2,000                7,681                  5,681                 Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ ‐‐‐ ‐ ‐ Total revenues 3,800                  2,361                (1,439)              430,600           421,301             (9,299)               Expenditures: Current: General government ‐ ‐‐‐ ‐ ‐ Public safety ‐ ‐‐‐ ‐ ‐ Physical environment ‐ ‐‐‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service 771,000             741,861           29,139              559,300           558,732             568 Capital outlay ‐ ‐‐‐ ‐ ‐ Total expenditures 771,000             741,861           29,139              559,300           558,732             568 Excess (deficit) of revenues    over (under) expenditures  (767,200)            (739,500)          27,700              (128,700)          (137,431)            (8,731)               Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 858,500             858,500           ‐100,000           104,175             4,175                 Transfers out ‐ ‐‐(17,500)            (13,215)              4,285                 Total other financing sources (uses) 858,500             858,500           ‐82,500              90,960                8,460                 Net change in fund balances 91,300                119,000           27,700              (46,200)            (46,471)              (271) Fund balances at beginning of year 792,900             792,900           ‐873,200           873,200             ‐ Fund balances (deficits) at end of year 884,200$           911,900$          27,700$            827,000$          826,729$           (271)$                  Reconciliation: Net change in fund balance, budgetary basis 119,000$          (46,471)$             Change in fair value of investments (4)(265)  Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis 118,996$          (46,736)$             See accompanying independent auditor's report   Community Redevelopment Taxable Note Forest Lakes Limited General (Budgetary Basis)Obligation Bonds (Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 120 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$1,500$               761$ (739)$                  ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,300                 32,329               26,029              200 9,248                  9,048                 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 6,300                 32,329               26,029              1,700                10,009                8,309                 ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 18,331,800       18,307,376       24,424              13,171,000      13,147,131        23,869               ‐ ‐‐‐‐ ‐ 18,331,800       18,307,376       24,424              13,171,000      13,147,131        23,869               (18,325,500)     (18,275,047)     50,453              (13,169,300)    (13,137,122)      32,178               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 18,066,600       18,066,600       ‐13,142,900      13,142,900        ‐ ‐ ‐‐(1,400)              (754) 646 18,066,600       18,066,600       ‐13,141,500      13,142,146        646 (258,900)           (208,447)           50,453              (27,800)            5,024                  32,824               3,255,900         3,255,900         ‐27,900              27,900                ‐ 2,997,000$        3,047,453$       50,453$            100$32,924$             32,824$             (208,447)$         5,024$                 (10,747)             (457)  ‐‐  ‐‐  ‐‐  ‐‐  (219,194)$         4,567$                 Special Obligation Revenue Bonds Other Debt Service (Budgetary Basis)(Budgetary Basis) 121 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees ‐ ‐‐412,000           573,399             161,399            Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐46,180              46,180                ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 25,000                100,458           75,458              6,000                16,853                10,853               Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous ‐ 28,496              28,496              620,000           350,182             (269,818)           Total revenues 25,000                128,954           103,954           1,084,180        986,614             (97,566)             Expenditures: Current: General government 2,580,143          1,409,617        1,170,526        ‐ ‐ ‐ Public safety 753,891             757,116           (3,225)              ‐ ‐ ‐ Physical environment 89,467                46,335              43,132              ‐ ‐ ‐ Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ 30 (30)1,248,252        480,663             767,589            Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 15,301,368        8,322,769        6,978,599        1,918,844        1,135,534          783,310            Total expenditures 18,724,869        10,535,867      8,189,002        3,167,096        1,616,197          1,550,899         Excess (deficit) of revenues    over (under) expenditures  (18,699,869)      (10,406,913)    8,292,956        (2,082,916)      (629,583)            1,453,333         Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ 25,000              25,000              28,939              ‐ (28,939)             Transfers in 17,199,800        17,199,800      ‐1,570,000        1,605,437          35,437               Transfers out (8,622,936)        (7,143,636)      1,479,300        (332,000)          (331,285)            715 Total other financing sources (uses) 8,576,864          10,081,164      1,504,300        1,266,939        1,274,152          7,213                 Net change in fund balances (10,123,005)      (325,749)          9,797,256        (815,977)          644,569             1,460,546         Fund balances at beginning of year 10,708,105        10,708,105      ‐1,215,876        1,215,876          ‐ Fund balances (deficits) at end of year 585,100$           10,382,356$    9,797,256$       399,899$          1,860,445$        1,460,546$        Reconciliation: Net change in fund balance, budgetary basis (325,749)$         644,569$            Change in fair value of investments (2,898)              (487)  Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis (328,647)$         644,082$            See accompanying independent auditor's report   County‐Wide Capital Improvements Parks Improvements (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 122 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ 750,000            1,002,395         252,395           1,181,200        1,798,860          617,660            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,000                 12,918               11,918              2,000                16,378                14,378               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 751,000            1,015,313         264,313           1,183,200        1,815,238          632,038            ‐ ‐‐‐‐ ‐ ‐ ‐‐389,177           472 388,705            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 134,162            17,947               116,215           ‐‐ ‐ ‐ ‐‐‐‐ ‐ 390,118            367,486            22,632              ‐‐ ‐ 524,280            385,433            138,847           389,177           472 388,705            226,720            629,880            403,160           794,023           1,814,766          1,020,743         ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 585,000            585,000            ‐488,800           488,800             ‐ (1,159,300)       (1,159,300)       ‐(1,877,400)      (1,877,400)        ‐ (574,300)           (574,300)           ‐(1,388,600)      (1,388,600)        ‐ (347,580)           55,580               403,160           (594,577)          426,166             1,020,743         856,380            856,380            ‐‐‐ ‐ 508,800$           911,960$          403,160$          (594,577)$         426,166$           1,020,743$        55,580$            426,166$            (391)(480)  ‐‐  ‐‐  ‐‐  ‐‐  55,189$            425,686$            County‐Wide Library Impact Fee Correctional Facilities Impact Fees (Budgetary Basis)(Budgetary Basis) 123 Budget Actual Variance Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$‐$ ‐$ ‐$ Licenses, permits and impact fees 279,000             451,547           172,547           ‐ ‐ ‐ Intergovernmental ‐ ‐‐‐ ‐ ‐ Charges for services ‐ ‐‐‐ ‐ ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 500 10,861              10,361              45,000              128,038             83,038               Special assessments ‐ ‐‐400,700           385,756             (14,944)             Miscellaneous ‐ ‐‐‐ 18 18 Total revenues 279,500             462,408           182,908           445,700           513,812             68,112               Expenditures: Current: General government ‐ ‐‐‐ ‐ ‐ Public safety 74,238                15,479              58,759              ‐ ‐ ‐ Physical environment ‐ ‐‐2,625,579        663,139             1,962,440         Transportation ‐ ‐‐‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐‐ ‐ ‐ Capital outlay 1,617,021          1,432,835        184,186           13,082,213      4,424,258          8,657,955         Total expenditures 1,691,259          1,448,314        242,945           15,707,792      5,087,397          10,620,395       Excess (deficit) of revenues    over (under) expenditures  (1,411,759)        (985,906)          425,853           (15,262,092)    (4,573,585)        10,688,507       Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ ‐‐‐ ‐ ‐ Transfers in 150,700             150,700           ‐5,561,400        5,564,403          3,003                 Transfers out (448,000)            (448,000)          ‐(3,243,114)      (2,262,519)        980,595            Total other financing sources (uses) (297,300)            (297,300)          ‐2,318,286        3,301,884          983,598            Net change in fund balances (1,709,059)        (1,283,206)      425,853           (12,943,806)    (1,271,701)        11,672,105       Fund balances at beginning of year 1,968,359          1,968,359        ‐13,293,906      13,293,906        ‐ Fund balances (deficits) at end of year 259,300$           685,153$          425,853$          350,100$          12,022,205$     11,672,105$     Reconciliation: Net change in fund balance, budgetary basis (1,283,206)$     (1,271,701)$       Change in fair value of investments (530)(4,591)                 Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐‐  Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis (1,283,736)$     (1,276,292)$       See accompanying independent auditor's report   Emergency Medical Services Impact Fees Water Management (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 124 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ 6,700,000         9,109,610         2,409,610        9,200,000        18,632,706        9,432,706         ‐ ‐‐‐188,009             188,009            ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 31,900               194,440            162,540           210,000           569,456             359,456            ‐ ‐‐‐‐ ‐ ‐ 4,752                 4,752                ‐‐ ‐ 6,731,900         9,308,802         2,576,902        9,410,000        19,390,171        9,980,171         ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐6,233,697        289,148             5,944,549         ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 313,770            45,023               268,747           ‐‐ ‐ ‐ ‐‐‐‐ ‐ 16,268,194       1,019,633         15,248,561      45,172,861      12,461,119        32,711,742       16,581,964       1,064,656         15,517,308      51,406,558      12,750,267        38,656,291       (9,850,064)       8,244,146         18,094,210      (41,996,558)    6,639,904          48,636,462       ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ (2,935,700)       (2,935,700)       ‐(7,537,666)      (2,970,003)        4,567,663         (2,935,700)       (2,935,700)       ‐(7,537,666)      (2,970,003)        4,567,663         (12,785,764)     5,308,446         18,094,210      (49,534,224)    3,669,901          53,204,125       16,984,808       16,984,808       ‐52,030,415      52,030,415        ‐ 4,199,044$        22,293,254$    18,094,210$    2,496,191$       55,700,316$     53,204,125$     5,308,446$       3,669,901$         (6,143)               (19,306)               ‐‐  ‐‐  ‐‐  ‐‐  5,302,303$       3,650,595$         Parks Impact Districts Road Impact Districts (Budgetary Basis)(Budgetary Basis) 125 Budget Actual Variance Budget Actual Variance Revenues: Taxes 12,793,300$     14,299,859$    1,506,559$       ‐$ ‐$ ‐$ Licenses, permits and impact fees 30,100                30,100              ‐1,890,000        2,955,204          1,065,204         Intergovernmental 5,706,700          6,178,381        471,681           ‐ ‐ ‐ Charges for services 2,874,393          3,224,089        349,696           ‐ ‐ ‐ Fines and forfeitures ‐ ‐‐‐ ‐ ‐ Interest income 129,500             362,278           232,778           8,400                49,746                41,346               Special assessments ‐ ‐‐‐ ‐ ‐ Miscellaneous 1,357,423          371,854           (985,569)          ‐ ‐ ‐ Total revenues 22,891,416        24,466,561      1,575,145        1,898,400        3,004,950          1,106,550         Expenditures: Current: General government 75,000                ‐75,000              200,325           173,306             27,019               Public safety ‐ ‐‐‐ ‐ ‐ Physical environment ‐ ‐‐‐ ‐ ‐ Transportation 8,643,533          8,443,803        199,730           ‐ ‐ ‐ Economic environment ‐ ‐‐‐ ‐ ‐ Human services ‐ ‐‐‐ ‐ ‐ Culture and recreation ‐ ‐‐‐ ‐ ‐ Debt service ‐ ‐‐5,500                5,270                  230 Capital outlay 47,791,431        4,599,996        43,191,435      1,994,574        1,832,630          161,944            Total expenditures 56,509,964        13,043,799      43,466,165      2,200,399        2,011,206          189,193            Excess (deficit) of revenues    over (under) expenditures  (33,618,548)      11,422,762      45,041,310      (301,999)          993,744             1,295,743         Other financing sources (uses): Sale of capital assets ‐ ‐‐‐ ‐ ‐ Insurance proceeds ‐ 2,064                2,064                ‐ ‐ ‐ Transfers in 19,857,000        20,457,000      600,000           4,065,600        4,065,600          ‐ Transfers out (19,638,181)      (19,174,677)    463,504           (6,299,400)      (6,299,400)        ‐ Total other financing sources (uses) 218,819             1,284,387        1,065,568        (2,233,800)      (2,233,800)        ‐ Net change in fund balances (33,399,729)      12,707,149      46,106,878      (2,535,799)      (1,240,056)        1,295,743         Fund balances at beginning of year 35,763,409        35,763,409      ‐5,397,999        5,397,999          ‐ Fund balances (deficits) at end of year 2,363,680$        48,470,558$    46,106,878$    2,862,200$       4,157,943$        1,295,743$        Reconciliation: Net change in fund balance, budgetary basis 12,707,149$    (1,240,056)$       Change in fair value of investments (11,677)            (1,743)                 Ad valorem refunds not budgeted ‐‐  Change in inventory ‐‐  Advances budgeted as transfers ‐1,130,000           Unbudgeted funds ‐‐  Net change in fund balance, GAAP basis 12,695,472$    (111,799)$           See accompanying independent auditor's report   (Budgetary Basis)(Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Road Construction Government Facilities Impact Fees 126 Budget Actual Variance Budget Actual Variance ‐$ ‐$‐$‐$‐$ ‐$ 1,030,600         1,647,065         616,465           ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 2,300                 42,013               39,713              14,000              28,162                14,162               ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,032,900         1,689,078         656,178           14,000              28,162                14,162               ‐ ‐‐‐‐ ‐ 144,461            34,326               110,135           ‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ ‐ ‐‐10,940              17,856                (6,916)               ‐ ‐‐‐‐ ‐ 3,070,253         1,406,113         1,664,140        2,987,871        ‐ 2,987,871         3,214,714         1,440,439         1,774,275        2,998,811        17,856                2,980,955         (2,181,814)       248,639            2,430,453        (2,984,811)      10,306                2,995,117         ‐ ‐‐‐‐ ‐ ‐ ‐‐‐‐ ‐ 1,616,400         1,616,400         ‐‐‐ ‐ (1,872,700)       (1,872,700)       ‐‐‐ ‐ (256,300)           (256,300)           ‐‐‐ ‐ (2,438,114)       (7,661)               2,430,453        (2,984,811)      10,306                2,995,117         3,135,314         3,135,314         ‐2,985,511        2,985,511          ‐ 697,200$           3,127,653$       2,430,453$       700$2,995,817$        2,995,117$        (7,661)$             10,306$              (1,373)               (1,023)                 ‐‐  ‐‐  ‐‐  ‐‐  (9,034)$             9,283$                 Law Enforcement Impact Fees All Terrain Vehicle Park (Budgetary Basis)(Budgetary Basis) 127 Budget Actual Variance Revenues: Taxes ‐$ ‐$‐$ Licenses, permits and impact fees 2,000                  5,563                3,563                 Intergovernmental ‐ ‐‐ Charges for services ‐ ‐‐ Fines and forfeitures ‐ ‐‐ Interest income 3,400                  13,214              9,814                 Special assessments 133,500             134,811           1,311                 Miscellaneous ‐ ‐‐ Total revenues 138,900             153,588           14,688               Expenditures: Current: General government ‐ ‐‐ Public safety 9,552                  ‐9,552                 Physical environment 1,148,963          1,033,431        115,532            Transportation 375,737             44,742              330,995            Economic environment ‐ ‐‐ Human services ‐ ‐‐ Culture and recreation 482,676             253,901           228,775            Debt service ‐ ‐‐ Capital outlay ‐ ‐‐ Total expenditures 2,016,928          1,332,074        684,854            Excess (deficit) of revenues    over (under) expenditures  (1,878,028)        (1,178,486)      699,542            Other financing sources (uses): Sale of capital assets ‐ ‐‐ Insurance proceeds ‐ ‐‐ Transfers in 1,557,600          1,558,603        1,003                 Transfers out (6,300)                (4,258)              2,042                 Total other financing sources (uses) 1,551,300          1,554,345        3,045                 Net change in fund balances (326,728)            375,859           702,587            Fund balances at beginning of year 993,828             993,828           ‐ Fund balances (deficits) at end of year 667,100$           1,369,687$       702,587$           Reconciliation: Net change in fund balance, budgetary basis 375,859$           Change in fair value of investments (404) Ad valorem refunds not budgeted ‐ Change in inventory ‐ Advances budgeted as transfers ‐ Unbudgeted funds ‐ Net change in fund balance, GAAP basis 375,455$           See accompanying independent auditor's report   Other Capital Projects (Budgetary Basis) COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 128 Nonmajor Enterprise Funds AIRPORT AUTHORITY – To account for the provision of landing facilities and the sale of fuel at the  airports.   COLLIER AREA TRANSIT – To account for the provision of public transportation throughout the  County.   Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Current assets: Cash and investments 1,424,403$      886,347$          2,310,750$        Receivables: Trade, net 18,798             19,506             38,304                Interest 1,537               3,247               4,784                  Due from other funds 7,472               31,823             39,295                Due from other governments ‐                        1,048               1,048                  Inventory 71,697              ‐                        71,697                Restricted assets: Cash and investments 128,228           229,603           357,831              Due from other governments 1,049,430        3,218,132        4,267,562          Total current assets 2,701,565        4,389,706        7,091,271          Noncurrent assets: Capital assets: Land and nondepreciable capital assets 1,816,442        7,406,787        9,223,229          Depreciable capital assets, net 31,609,886     16,942,607     48,552,493        Total noncurrent assets 33,426,328     24,349,394     57,775,722        Total assets 36,127,893     28,739,100     64,866,993        Deferred outflows of resources related to pensions 225,879           66,584             292,463              LIABILITIES Current liabilities: Accounts payable 73,619             385,622           459,241              Wages payable 26,686             6,063               32,749                Due to other funds 411,129           180,673           591,802              Due to other governments 3,483               ‐                        3,483                  Unearned revenues 52,983              ‐                        52,983                Compensated absences 27,659             7,203               34,862                Net pension liability 8,869               1,774               10,643                Liabilities payable from restricted assets:  Accounts payable 489,000           1,389,033        1,878,033          Wages payable ‐                        2,039               2,039                  Retainage payable ‐                        127,662           127,662              Due to other governments ‐                        38,011             38,011                Refundable deposits 9,826               ‐                        9,826                  Unearned revenue 20,602              ‐                        20,602                Total current liabilities 1,123,856        2,138,080        3,261,936          Noncurrent liabilities: Compensated absences 6,915               1,800               8,715                  Net pension liability 617,361           167,386           784,747              Total noncurrent liabilities 624,276           169,186           793,462              Total liabilities 1,748,132        2,307,266        4,055,398          DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 4,860               1,531               6,391                  NET POSITION Net investment in capital assets 32,921,617     23,519,554     56,441,171        Restricted for grants and other purposes 1,147,230        2,720,830        3,868,060          Unrestricted 531,933           256,503           788,436              Total net position 34,600,780$    26,496,887$    61,097,667$      See accompanying independent auditor's report  DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2016 ASSETS 130 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Operating revenues: Charges for services 3,054,600$           1,183,518$          4,238,118$            Miscellaneous 18,236 41,129 59,365  Total operating revenues  3,072,836            1,224,647           4,297,483              Operating expenses: Personal services 976,540                309,310              1,285,850              Operating 1,985,494            9,258,054           11,243,548            Depreciation 1,443,398            1,744,440           3,187,838              Total operating expenditures  4,405,432            11,311,804         15,717,236            Operating loss (1,332,596)           (10,087,157)       (11,419,753)          Non‐operating revenues: Operating grants and contributions ‐4,256,647           4,256,647              Interest income 12,216 11,467 23,683  Gain on disposal of capital assets 7,115 12,996 20,111  Total non‐operating revenues 19,331 4,281,110           4,300,441              Loss before contributions and transfers (1,313,265)           (5,806,047)          (7,119,312)             Capital grants and contributions 529,329                2,295,357           2,824,686              Transfers in 366,491                4,140,662           4,507,153              Transfers out (34,821)‐(34,821)  Total transfers and contributions 860,999                6,436,019           7,297,018              Changes in net position (452,266)               629,972              177,706                 Net position ‐ beginning 35,053,046          25,866,915         60,919,961            Net position ‐ ending 34,600,780$         26,496,887$        61,097,667$          See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 131 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services 3,075,075$      1,211,111$      4,286,186$        Cash received from refundable deposits 2,500               ‐ 2,500 Cash payments for goods and services (1,620,384)      (6,482,539)      (8,102,923)         Cash payments to employees (962,742)          (308,332)          (1,271,074)         Cash payments for interfund services (349,595)          (2,266,494)      (2,616,089)         Cash payments on refundable deposits (2,121)              ‐ (2,121)                Net cash provided by (used for) operating activities 142,733           (7,846,254)      (7,703,521)         Cash flows from non‐capital financing activities: Cash received from operating grants ‐3,758,262        3,758,262           Cash transfers from other funds 754,561           6,526,688        7,281,249           Cash transfers to other funds (991,198)          (2,269,285)      (3,260,483)         Net cash provided by (used for) non‐capital financing activities (236,637)          8,015,665        7,779,028           Cash flows from capital and related financing activities: Proceeds from disposal of capital assets 7,266               19,271             26,537                Proceeds from capital grants 806,185           1,708,525        2,514,710           Payments for capital acquisitions (247,533)          (2,503,741)      (2,751,274)         Net cash provided by (used for) capital and related  financing activities 565,918           (775,945)          (210,027)             Cash flows from investing activities: Interest on investments 13,143             12,513             25,656                Net cash provided by investing activities 13,143             12,513             25,656                Net increase (decrease) in cash and investments 485,157           (594,021)          (108,864)             Cash and investments, October 1, 2015 1,067,474        1,709,971        2,777,445           Cash and investments, September 30, 2016 1,552,631$      1,115,950$      2,668,581$        Cash and investments ‐ restricted 1,424,403$      886,347$          2,310,750$        Cash and investments ‐ restricted 128,228           229,603           357,831              Cash and investments, September 30, 2016 1,552,631$      1,115,950$      2,668,581$        Operating loss (1,332,596)$     (10,087,157)$   (11,419,753)$     Adjustments to reconcile operating loss to net cash provided by (used for) operating activities: Depreciation expense 1,443,398        1,744,440        3,187,838           Net changes in assets and liabilities:  Trade receivable 4,503               (6,470)               (1,967)                Due from other funds ‐1,377                1,377 Due from other governments ‐(776) (776) Inventory 19,097             ‐ 19,097                Prepaid costs ‐101,375           101,375              Accounts payable (5,560)              406,374           400,814              Wages payable (16,797)            (9,885)               (26,682)               Due to other funds ‐(6,395)               (6,395)                Due to other governments 93 ‐ 93 Compensated absences (860)3,505                2,645 Refundable deposits (5,927)              ‐ (5,927)                Unearned revenue 5,927               ‐ 5,927 Net pension liability and related deferred outflows/inflows 31,455             7,358                38,813                Total adjustments 1,475,329        2,240,903        3,716,232           Net cash provided by (used for) operating activities 142,733$          (7,846,254)$     (7,703,521)$       Non‐cash investing, capital and financing activities: Change in fair value of investments 334$(289)$                 45$ Contributed capital assets ‐681,603           681,603              Change in capital related grant receivable 276,856           94,773             371,629              Capital related accounts payable 490,459           702,178           1,192,637           See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 132 Internal Service Funds SELF‐INSURANCE – To account for the self‐insurance costs of providing coverage for property,  general and vehicle liability. To account for the provisions of health benefits to Board and  participating constitutional officer employees and their dependents. To account for payment of  workers’ compensation claims, in lieu of insurance.   SHERIFF'S SELF‐INSURANCE – To account for the provisions of health benefits to Sheriff  employees and their dependents. To account for payment of workers’ compensation claims, in  lieu of insurance.   FLEET MANAGEMENT – To account for fuel, oil, lubricants, repairs and maintenance of County  vehicles and the use of certain County owned vehicles by County employees.   MOTOR POOL CAPITAL RECOVERY – To account for the accumulation of resources for the  replacement of vehicles and heavy equipment for County governmental activities.   INFORMATION TECHNOLOGY – To account for the costs of operating the County data processing  facility and telephone communication system.  Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Current assets: Cash and investments 40,656,352$   11,683,121$  1,017,171$      2,294,727$  2,416,916$    58,068,287$      Receivables: Trade, net 4,780                ‐‐‐‐ 4,780 Interest 65,753             11,531           851 3,645           3,079               84,859                Due from other funds 26,790             2,000              40,940             ‐‐ 69,730                Due from other governments 3,005                ‐20,768             ‐‐ 23,773                Deposits 51,108             ‐‐‐‐ 51,108                Inventory ‐‐367,556           ‐‐ 367,556              Prepaid costs ‐‐‐‐43,712            43,712                Total current assets 40,807,788      11,696,652    1,447,286        2,298,372   2,463,707       58,713,805        Noncurrent assets: Capital assets: Depreciable capital assets, net 234,770           ‐10,361,204     2,626,987   3,211,894       16,434,855        Total noncurrent assets 234,770           ‐10,361,204     2,626,987   3,211,894       16,434,855        Total assets 41,042,558      11,696,652    11,808,490     4,925,359   5,675,601       75,148,660        Deferred outflows of resources  related to pensions 307,967           ‐540,421           ‐990,488          1,838,876           LIABILITIES Current liabilities: Accounts payable 314,822            ‐293,368           135,689       466,893          1,210,772           Wages payable 39,658             ‐72,981             ‐127,119          239,758              Due to other funds ‐3,554,292      ‐‐‐ 3,554,292           Due to other governments ‐‐14 ‐‐ 14 Unearned revenues 10,473             ‐‐‐‐ 10,473                Self‐insurance claims payable 3,904,371        2,379,000      ‐‐‐ 6,283,371           Compensated absences 92,395             ‐124,973           ‐198,964          416,332              Net pension liability 8,278                ‐16,556             ‐26,608            51,442                Total current liabilities 4,369,997        5,933,292      507,892           135,689       819,584          11,766,454        Noncurrent liabilities: Self‐insurance claims payable 1,618,799        ‐‐‐‐ 1,618,799           Compensated absences 23,099             31,244             49,741            104,084              Net OPEB Obligation 1,262,229        2,612,863      ‐‐‐ 3,875,092           Net pension liability 770,937           ‐1,384,279        ‐2,356,570       4,511,786           Total noncurrent liabilities 3,675,064        2,612,863      1,415,523        ‐2,406,311       10,109,761        Total liabilities 8,045,061        8,546,155      1,923,415        135,689       3,225,895       21,876,215        DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources  related to pensions 7,059                ‐12,157             ‐22,709            41,925                NET POSITION Net investment in capital assets 234,770           ‐10,361,204     2,491,298   3,211,894       16,299,166        Unrestricted 33,063,635      3,150,497      52,135             2,298,372   205,591          38,770,230        Total net position 33,298,405$   3,150,497$     10,413,339$    4,789,670$  3,417,485$    55,069,396$      See accompanying independent auditor's report  DEFERRED OUTFLOWS OF RESOURCES COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2016 ASSETS 134 Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services 46,608,188$   20,046,310$  7,487,186$    1,670,800$    6,744,183$     82,556,667$   Miscellaneous 246,509           ‐29,840           19,404           703 296,456          Total operating revenues 46,854,697     20,046,310   7,517,026     1,690,204     6,744,886       82,853,123    Operating expenses: Personal services 1,327,602       ‐2,479,887     ‐4,097,828       7,905,317      Operating 43,464,013     22,725,776   5,005,986     ‐2,345,240       73,541,015    Depreciation 31,919             ‐587,415         300,893         1,269,067       2,189,294      Total operating expenditures 44,823,534     22,725,776   8,073,288     300,893         7,712,135       83,635,626    Operating income (loss)2,031,163       (2,679,466)    (556,262)        1,389,311     (967,249)          (782,503)         Non‐operating revenues: Interest income 365,712           37,494           6,525             26,092           15,733             451,556          Insurance reimbursement 570,536           ‐9,014             ‐‐ 579,550          Gain on disposal of capital assets 4,704               ‐26,296           327,267         ‐ 358,267          Total non‐operating revenues 940,952           37,494           41,835           353,359         15,733             1,389,373      Income (loss) before contributions  and transfers 2,972,115       (2,641,972)    (514,427)        1,742,670     (951,516)          606,870          Transfers in ‐‐‐3,047,000     51,000             3,098,000      Transfers out (1,276,600)      ‐‐‐‐ (1,276,600)     Total transfers and contributions (1,276,600)      ‐‐3,047,000     51,000             1,821,400      Changes in net position 1,695,515       (2,641,972)    (514,427)        4,789,670     (900,516)          2,428,270      Net position ‐ beginning 31,602,890     5,792,469     10,927,766   ‐4,318,001       52,641,126    Net position ‐ ending 33,298,405$   3,150,497$    10,413,339$  4,789,670$    3,417,485$     55,069,396$   See accompanying independent auditor's report  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 135 Sheriff's Motor Pool Self‐Self‐Fleet Capital Information Insurance Insurance Management Recovery Technology Total Cash flows from operating activities: Cash received from other funds for services 39,102,196$    22,700,000$   7,297,011$   1,690,204$   6,744,886$     77,534,297$    Cash received from employees for services 7,129,276        ‐‐‐ ‐ 7,129,276       Cash received from other governments for services ‐‐246,199        ‐ ‐ 246,199           Cash received from retirees for services 604,340           900,602           ‐‐ ‐ 1,504,942       Cash payments on behalf of retirees (1,071,796)       ‐‐‐ ‐ (1,071,796)      Cash payments for goods and services (40,692,619)     (21,845,444)   (4,805,220)    ‐ (2,132,790)      (69,476,073)    Cash payments to employees (1,326,011)       ‐(2,445,798)   ‐ (4,037,819)      (7,809,628)      Cash payments for interfund services (452,196)          ‐(257,422)       ‐ (38,167)           (747,785)         Net cash provided by operating activities 3,293,190        1,755,158      34,770          1,690,204    536,110           7,309,432       Cash flows from non‐capital financing activities: Cash transfers from other funds ‐‐‐3,047,000    51,000             3,098,000       Cash transfers to other funds (1,276,600)       ‐‐‐ ‐ (1,276,600)      Net cash provided by (used for) non‐capital financing activities (1,276,600)       ‐‐3,047,000    51,000             1,821,400       Cash flows from capital and related financing activities: Receipts from insurance reimbursements 1,804,555        ‐9,014            ‐ ‐ 1,813,569       Proceeds from disposal of capital assets 4,704               ‐27,026          327,267       ‐ 358,997           Payments for capital acquisitions (13,005)            ‐(154,139)       (2,792,191)   (302,420)         (3,261,755)      Net cash provided by (used for) capital and  related financing activities 1,796,254        ‐(118,099)       (2,464,924)   (302,420)         (1,089,189)      Cash flows from investing activities: Interest on investments 402,106           25,963            7,982            22,447         18,781             477,279           Net cash provided by investing activities 402,106           25,963            7,982            22,447         18,781             477,279           Net increase (decrease) in cash and investments 4,214,950        1,781,121      (75,347)         2,294,727    303,471           8,518,922       Cash and investments, October 1, 2015 36,441,402      9,902,000      1,092,518     ‐ 2,113,445       49,549,365     Cash and investments, September 30, 2016 40,656,352$    11,683,121$   1,017,171$   2,294,727$   2,416,916$     58,068,287$    Cash and investments 40,656,352$    11,683,121$   1,017,171$   2,294,727$   2,416,916$     58,068,287$    Cash and investments ‐ restricted ‐‐‐‐ ‐ ‐ Cash and investments, September 30, 2016 40,656,352$    11,683,121$   1,017,171$   2,294,727$   2,416,916$     58,068,287$    Operating income (loss)2,031,163$      (2,679,466)$    (556,262)$     1,389,311$   (967,249)$       (782,503)$        Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 31,919             ‐587,415        300,893       1,269,067       2,189,294       Net changes in assets and liabilities: Trade receivable 2,436               45,012            3,697            ‐ ‐ 51,145             Due from other funds (14,186)            ‐18,414          ‐ ‐ 4,228               Due from other governments ‐‐4,073            ‐ ‐ 4,073               Inventory 300 ‐9,357            ‐ 12,272             21,929             Prepaid costs ‐‐‐‐ (43,712)           (43,712)            Accounts payable 77,078             ‐(45,756)         ‐ 205,723           237,045           Wages payable (27,637)            ‐(56,600)         ‐ (69,184)           (153,421)         Due to other funds ‐3,735,848      ‐‐ ‐ 3,735,848       Due to other governments (10,552)            ‐(20,257)         ‐ ‐ (30,809)            Compensated absences (9,409)              ‐18,542          ‐ 9,582               18,715             Unearned revenue 3,529               ‐‐‐ ‐ 3,529               Self‐insurance claims payable 733,736           209,000          ‐‐ ‐ 942,736           Net OPEB obligation 436,176           444,764          ‐‐ ‐ 880,940           Net pension liability and related deferred   outflows/inflows 38,637             ‐72,147          ‐ 119,611           230,395           Total adjustments 1,262,027        4,434,624      591,032        300,893       1,503,359       8,091,935       Net cash provided by operating activities 3,293,190$      1,755,158$     34,770$         1,690,204$   536,110$        7,309,432$      Non‐cash investing, capital and financing activities: Change in fair value of investments (13,073)$         45,191$           288$              (1,014)$         (643)$               30,749$            Capital related accounts payable ‐‐‐135,689       ‐ 135,689           See accompanying independent auditor's report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 136 Fiduciary Funds CLERK OF COURTS AGENCY FUND – To account for monies held in Trust by the Clerk of the Circuit  Court prior to disbursement.   SHERIFF AGENCY FUND – To account for monies held in a custodial capacity by the Sheriff.  TAX COLLECTOR AGENCY FUND – To account for assets held by the Tax Collector prior to legal  disbursement.   DEPOSITS AGENCY FUND – To account for monies held by the County for businesses and  individuals.   PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND – To account for the receipt of  special assessments and the payment of principal and interest on behalf of assessment holders.   Pine Ridge Clerk Tax and Naples of Courts Sheriff Collector Deposits Production Park Agency Fund Agency Fund Agency Fund Agency Fund Agency Fund Total Cash and investments  25,203,051$   628,987$        6,657,055$    6,002,530$    164,351$                38,655,974$   Receivables:  Interest ‐‐                      ‐                      9,068             325 9,393               Other ‐1,618             27,270           ‐‐ 28,888            Total assets 25,203,051$   630,605$        6,684,325$    6,011,598$    164,676$                38,694,255$   LIABILITIES  Due to other governments 1,094,183$      61,919$          6,631,195$    ‐$‐$ 7,787,297$      Due to individuals ‐568,686         53,130           ‐‐ 621,816          Refundable deposits  24,108,868      ‐‐6,011,598     ‐ 30,120,466     Due to special assessment holders  ‐‐‐‐164,676 164,676          Total liabilities  25,203,051$   630,605$        6,684,325$    6,011,598$    164,676$                38,694,255$   See accompanying independent auditor's report   ASSETS COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2016 138 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash and investments  26,821,917$  168,669,558$      170,288,424$      25,203,051$          Total assets 26,821,917$  168,669,558$      170,288,424$      25,203,051$       Liabilities:  Due to other governments   1,292,816$     9,694,394$           9,893,027$            1,094,183$         Refundable deposits 25,529,101    158,975,164        160,395,397        24,108,868            Total liabilities 26,821,917$  168,669,558$      170,288,424$      25,203,051$       Sheriff Agency Fund  Assets:  Cash and investments  566,302$        628,987$              566,302$               628,987$             Receivable:    Other 14,388           1,618 14,388 1,618    Total assets 580,690$        630,605$              580,690$               630,605$             Liabilities:  Due to other governments   65,223$          61,919$                 65,223$                  61,919$               Due to individuals 515,467         568,686                515,467                 568,686                   Total liabilities 580,690$        630,605$              580,690$               630,605$             Tax Collector Agency Fund  Assets:  Cash and investments  7,152,324$     937,390,095$      937,885,364$      6,657,055$         Receivable:    Other 18,820           2,949,859            2,941,409             27,270    Total assets 7,171,144$     940,339,954$      940,826,773$      6,684,325$         Liabilities:  Due to other governments   7,144,066$     1,231,748,699$   1,232,261,570$   6,631,195$         Due to individuals 27,078           40,240,199          40,214,147          53,130    Total liabilities 7,171,144$     1,271,988,898$   1,272,475,717$   6,684,325$         Deposits Agency Fund  Assets:  Cash and investments  5,613,684$     1,564,523$           1,175,677$            6,002,530$         Receivables:    Interest  13,959           9,068 13,959 9,068    Total assets 5,627,643$     1,573,591$           1,189,636$            6,011,598$         Liabilities:  Refundable deposits 5,627,643$     1,553,660$           1,169,705$            6,011,598$            Total liabilities 5,627,643$     1,553,660$           1,169,705$            6,011,598$         (Continued) COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 139 Balance Balance October 1 Additions Deductions September 30 Assets:  Cash and investments  821,652$        5,994$663,295$               164,351$             Receivables:    Interest  2,281              324 2,280 325    Total assets 823,933$         6,318$ 665,575$               164,676$              Liabilities:  Due to special assessment holders   823,933$        3,843$663,100$               164,676$                Total liabilities 823,933$         3,843$ 663,100$               164,676$              Total  ‐ All Agency Funds  Assets:  Cash and investments  40,975,879$  1,108,259,157$   1,110,579,062$   38,655,974$       Receivables:    Interest  16,240           9,392 16,239 9,393   Other 33,208           2,951,477            2,955,797             28,888    Total assets 41,025,327$   1,111,220,026$    1,113,551,098$    38,694,255$        Liabilities:  Due to other governments   8,502,105$     1,241,505,012$   1,242,219,820$   7,787,297$         Due to individuals 542,545         40,808,885          40,729,614          621,816               Refundable deposits 31,156,744    160,528,824        161,565,102        30,120,466         Due to special assessment holders   823,933         3,843 663,100                 164,676                  Total liabilities 41,025,327$   1,442,846,564$    1,445,177,636$    38,694,255$         See accompanying independent auditor's report   COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Pine Ridge and Naples Production Park Agency Fund  140 Component Units COLLIER COUNTY HOUSING FINANCE AUTHORITY – The authority was established for the  purpose of stimulating the construction of residential housing for low and moderate income  families through the use of public financing.   COLLIER COUNTY HEALTH FACILITIES AUTHORITY – The authority was established for the  purpose of assisting health facilities in the acquisition, construction and financing of projects  within the County.   COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY – The authority was established for  the purpose of facilitating projects that promote economic growth and opportunities for  employment in Collier County.   COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY – The authority was established for the  purpose of assisting institutions of higher education in the construction, financing and refinancing  of projects.   THIS PAGE INTENTIONALLY LEFT BLANK  Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total Cash and investments  21,988$            89,320$            123,435$          57,545$             292,288$           Total assets 21,988$            89,320$            123,435$          57,545$             292,288$           NET POSITION  Net position ‐ unrestricted 21,988$            89,320$            123,435$          57,545$             292,288$           Total Net Position 21,988$            89,320$            123,435$          57,545$             292,288$           See accompanying independent auditor's report  ASSETS  COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS SEPTEMBER 30, 2016 143 Net (Expense) Revenue and Changes Program Revenues in Net Position Fees, Fines and Governmental Expenses Charges for Services Activities Industrial Development Authority 35,555$2,550$(33,005)$  Health Facilities Authority 3,466 50 (3,416)  Housing Finance Authority 2,636 75 (2,561)  Educational Facilities Authority 12,563 50 (12,513)  Total 54,220$2,725$(51,495)  General revenues: Interest income 108  Total general revenues 108 Change in net position (51,387)  Net position ‐ beginning 343,675  Net position ‐ ending 292,288$  See accompanying independent auditor's report  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Functions/Programs COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS 144 Other Supplemental Information Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill.  Amount Amount Received Expended in the in the 2016 2016 Source Fiscal Year Fiscal Year British Petroleum:      Gulf Seafood and Tourism Promotional Fund 125,000$     6,454$           Note:  This schedule does not include funds related to the Deepwater Horizon Oil Spill that  are considered  Federal awards or State financial assistance.  The Schedule of Expenditures of  Federal Awards and State Financial Assistance does not include any expenditures of Federal  awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2016  fiscal year. OTHER SUPPLEMENTAL INFORMATION COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 146 STATISTICAL SECTION (UNAUDITED) Sources:  Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant  year.  The County implemented GASB 34 for fiscal year 2002.  Schedules presenting government‐wide information include information beginning  in that fiscal year.  Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may  present non‐accounting data. These schedules reflect social and economic data, and financial trends of Collier County,  Florida.   CONTENTS PAGE  FINANCIAL TRENDS  These schedules contain trend information to help the reader understand how the government’s  financial performance and wellbeing have changed over time.  Net position by component  148  Change in net position  149  Governmental activities tax revenues by source  152  Fund balances of governmental funds  153  Changes in fund balance of governmental funds  154  REVENUE CAPACITY  These schedules contain information to help the reader assess the County’s most significant local  revenue source, the Property Tax.  Assessed value and estimated actual value of taxable property    156  Property tax rates – All direct and overlapping governments    157  Principal tax payers County‐wide    158  Property tax levies and collections    159  DEBT CAPACITY  These schedules present information to help the reader assess the affordability of the County’s current  levels of outstanding debt and the County’s ability to issue additional debt in the future.  Ratios of outstanding debt by type 160  Legal debt margin information 161  Direct, overlapping and underlying governmental activities debt 161  Pledged‐revenue coverage 162  DEMOGRAPHIC AND ECONOMIC INFORMATION   These schedules offer demographic and economic indicators to help the reader understand the   environment within which the County’s financial activities take place.   Demographic and economic statistics 163  Principal employers 164  OPERATING INFORMATION   These schedules contain service and infrastructure data to help the reader understand how the   information in the County’s financial report relates to the services the County provides and the  activities it performs.  Budgeted full‐time equivalent County employees by function 165  Operating indicators by function 166  Capital Asset statistics by function/program 167  2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Governmental Activities:  Net investment in capital assets1,225,520$     1,217,176$     1,207,751$     1,198,971$     1,187,298$     1,172,121$     1,169,052$     1,131,617$     1,032,553$     881,941$          Restricted327,968          298,360          223,526          221,501          226,934          253,977          232,571          240,247          295,012          244,746            Unrestricted2,478               13,109            169,633          152,790          147,188          147,080          189,911          192,442          199,031          317,821          Total governmental activities net position1,555,966$     1,528,645$     1,600,910$     1,573,262$     1,561,420$     1,573,178$     1,591,534$     1,564,306$     1,526,596$     1,444,508$     Business‐type Activities:  Net investment in capital assets723,000$        714,239$        705,065$        668,160$        650,684$        643,777$        635,702$        653,320$        658,865$        630,015$          Restricted35,760            31,511            29,749            34,379            34,199            38,002            37,795            31,227            30,165            30,746              Unrestricted169,287          165,128          185,420          196,050          194,389          177,939          169,514          149,422          113,761          83,038            Total business‐type activities net position928,047$        910,878$        920,234$        898,589$        879,272$        859,718$        843,011$        833,969$        802,791$        743,799$        Primary Government:  Net investment in capital assets1,948,520$     1,931,415$     1,912,816$     1,867,131$     1,837,982$     1,815,898$     1,804,754$     1,784,937$     1,691,418$     1,511,956$       Restricted363,728          329,871          253,275          255,880          261,133          291,979          270,366          271,474          325,177          275,492            Unrestricted171,765          178,237          355,053          348,840          341,577          325,019          359,425          341,864          312,792          400,859          Total primary government net position2,484,013$     2,439,523$     2,521,144$     2,471,851$     2,440,692$     2,432,896$     2,434,545$     2,398,275$     2,329,387$     2,188,307$     Fiscal Year(unaudited)(amounts expressed in thousands)COLLIER COUNTY, FLORIDANET POSITION BY COMPONENT(accrual basis of accounting)LAST TEN FISCAL YEARS148 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007ExpensesGovernmental activities:   General government104,188$     93,644$       92,176$       95,941$       94,227$       103,045$     100,483$     113,906$     112,720$     110,814$        Public safety205,347       174,874       177,267       171,210       165,782       173,286       179,276       182,962       183,288       182,821          Transportation70,560          70,296          71,623          69,275          73,000          81,383          76,603          64,601          65,980          54,198             Culture and recreation49,526          45,117          41,630          41,453          42,507          44,205          46,871          45,727          43,435          41,595             Other activities48,256          45,621          39,171          43,067          51,057          39,991          40,937          45,367          49,135          44,500             Interest on long‐term debt12,077          12,912          12,674          16,129          16,412          19,797          19,475          20,492          21,446          21,779          Total governmental activities expenses489,954$     442,464$     434,541$     437,075$     442,985$     461,707$     463,645$     473,055$     476,004$     455,707$     Business‐type activities:   Water and Sewer130,792$     122,858$     112,643$     114,041$     102,642$     104,333$     103,272$     90,042$       85,503$       89,908$          Solid Waste39,271          36,411          33,787          32,760          29,618          28,000          27,416          30,774          30,024          32,033             Emergency Medical Services26,529          24,094          23,208          21,545          21,792          22,657          23,073          22,478          22,935          22,026             Airport Authority4,402            4,771            3,764            4,439            4,601            4,458            4,382            3,895            5,082            4,296               Mass Transit11,333          10,416          10,306          10,111          9,925            10,187          9,617            8,974            9,419            7,761            Total business‐type activities expenses212,327       198,550       183,708       182,896       168,578       169,635       167,760       156,163       152,963       156,024       Total primary government expenses702,281$     641,014$     618,249$     619,971$     611,563$     631,342$     631,405$     629,218$     628,967$     611,731$     COLLIER COUNTY, FLORIDACHANGE IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)(amounts expressed in thousands)(unaudited)Fiscal Year149 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Program RevenuesGovernmental activities: Charges for services:   General government35,184$       34,240$       34,662$       36,080$       31,388$       33,919$       29,281$       32,257$       36,468$       46,380$          Public safety25,276          25,227          21,765          19,735          16,743          15,554          16,385          11,940          12,545          14,293             Transportation4,880            1,094            959               1,045            880               715               829               3,101            3,936            1,902               Culture and recreation8,393            8,685            7,943            8,416            9,126            9,093            8,267            9,830            8,429            7,494               Other activities1,230            4,237            2,661            3,667            4,941            2,296            1,557            1,620            7,541            2,395            Operating Grants and Contributions26,387          35,521          31,444          20,921          22,892          19,503          31,884          21,948          20,202          27,309          Capital Grants and Contributions36,818          29,986          28,945          28,280          20,279          19,347          25,762          24,867          52,303          122,327       Total governmental activities program revenues 138,168       138,990       128,379       118,144       106,249       100,427       113,965       105,563       141,424       222,100       Business‐type activities: Charges for services:   Water and Sewer123,856       116,645       107,924       109,176       103,042       105,858       101,062       104,927       100,030       92,091             Solid Waste41,918          39,121          35,368          34,585          34,275          33,769          33,568          32,922          36,495          33,864             Emergency Medical Services13,161          12,327          9,922            10,335          10,249          8,980            10,759          9,114            8,941            9,544               Airport Authority3,073            3,350            2,589            3,021            2,805            2,938            2,519            2,353            3,547            2,860               Mass Transit1,225            1,719            1,641            1,450            1,360            1,290            1,145            1,101            1,074            1,153            Operating Grants and Contributions4,435            5,142            3,077            3,914            2,948            4,378            4,448            3,235            4,393            2,657            Capital Grants and Contributions25,367          21,165          30,662          24,953          17,818          14,307          10,385          18,147          23,333          32,647          Total business‐type activities program revenues213,035       199,469       191,183       187,434       172,497       171,520       163,886       171,799       177,813       174,816       Total primary government program revenues351,203       338,459       319,562       305,578       278,746       271,947       277,851       277,362       319,237       396,916       Net (expense)/revenue:Governmental activities(351,786)      (303,474)      (306,162)      (318,931)      (336,736)      (361,280)      (349,680)      (367,492)      (334,580)      (233,607)      Business‐type activities708               919               7,475            4,538            3,919            1,885            (3,874)           15,636          24,850          18,792          Total primary government net expense(351,078)$    (302,555)$    (298,687)$    (314,393)$    (332,817)$    (359,395)$    (353,554)$    (351,856)$    (309,730)$    (214,815)$    Fiscal Year(unaudited)(amounts expressed in thousands)(accrual basis of accounting)LAST TEN FISCAL YEARS (CONTINUED)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDA150 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007General Revenues and Other Changes     in Net PositionGovernmental Activities:   Taxes:      Property taxes281,136$     259,779$     244,404$     249,352$     248,232$     261,630$     299,389$     313,290$     327,245$     345,054$           Gas taxes20,478          19,547          18,556          18,229          18,525          18,311          18,415          18,456          18,860          19,598                Sales taxes40,659          38,573          35,786          32,168          29,713          28,364          26,927          26,779          30,004          32,568                Tourist taxes21,838          21,188          19,137          16,183          14,898          13,884          12,857          12,345          14,796          14,228                Other taxes7,280            7,322            7,840            9,403            9,997            10,155          10,039          12,241          4,051            8,754               State revenue sharing11,100          10,589          9,657            8,792            8,233            8,310            7,854            7,927            8,976            9,652               Interest income4,891            5,069            2,599            1,496            2,430            3,888            4,665            11,455          33,730          48,931             Miscellaneous5,976            17,510          13,333          9,063            7,397            11,498          8,022            12,066          10,642          8,223               Special item ‐ registry bond‐  ‐  ‐  ‐  ‐  ‐  ‐  3,239            (3,288)           ‐     Transfers, net(14,250)        (14,192)        (13,185)        (13,912)        (14,447)        (13,117)        (11,259)        (12,596)        (28,348)        (15,126)        Total governmental activities379,108$     365,385$     338,127$     330,774$     324,978       342,923       376,909       405,202       416,668       471,882       Business‐type Activities:   Interest income2,011            2,209            1,301            712               1,106            1,609            1,569            2,395            5,716            8,246               Miscellaneous200               94  68  154               82  96  88  551               77  620                  Transfers, net14,250          14,192          13,184          13,912          14,447          13,117          11,259          12,596          28,348          15,126          Total business‐type activities16,461          16,495          14,553          14,778          15,635          14,822          12,916          15,542          34,141          23,992          Total primary government395,569$     381,880$     352,680$     345,552$     340,613$     357,745$     389,825$     420,744$     450,809$     495,874$     Change in Net PositionGovernmental activities27,322$       61,911$       31,965$       11,843$       (11,758)$      (18,357)$      27,229$       37,710$       82,088$       238,275$     Business‐type activities17,169          17,414          22,028          19,316          19,554          16,707          9,042            31,178          58,991          42,784          Total primary government44,491$       79,325$       53,993$       31,159$       7,796$          (1,650)$        36,271$       68,888$       141,079$     281,059$     Fiscal Year(unaudited)LAST TEN FISCAL YEARS (CONTINUED)(amounts expressed in thousands)(accrual basis of accounting)CHANGE IN NET POSITIONCOLLIER COUNTY, FLORIDA151 Fiscal Property Gas Sales Tourist OtherYear Tax Tax Tax Tax Taxes (1) Total2007 345,054          19,598       32,568       14,228        8,754        420,202        2008 327,245          18,860       30,004       14,796        4,051        394,956        2009 313,290          18,456       26,779       12,345        12,241      383,111        2010 299,389          18,415       26,927       12,857        10,039      367,627        2011 261,630          18,311       28,364       13,884        10,155      332,344        2012 248,232          18,525       29,713       14,898        9,997        321,365        2013 249,352          18,229       32,168       16,183        9,403        325,335        2014 244,404          18,556       35,786       19,137        7,840        325,723        2015 259,779          19,547       38,573       21,188        7,322        346,409        2016281,136          20,478       40,659       21,838        7,280        371,391        (1)(amounts expressed in thousands)COLLIER COUNTY, FLORIDAGOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCELAST TEN FISCAL YEARS(unaudited) Pursuant to the Uniform Accounting System direction from the State of Florida, the Communications Services Tax was shown with fees, fines and charges for services for fiscal years 2007 and 2008.  This tax is no longer included beginning in 2009. 152 2009 2008 2007General fund   Reserved8,962$          6,602$          3,706$             Unreserved38,924          61,953          77,619          Total general fund47,886$        68,555$        81,325$        All other governmental funds   Reserved105,991$      142,728$      294,512$         Unreserved, reported in:       Special revenue funds114,208        128,966        124,213               Debt service funds1,587            1,951            2,621                   Capital projects funds140,544        160,736        107,888        Total all other governmental funds362,330$      434,381$      529,234$      2016 2015 2014 2013 2012 2011 2010General fund (1)   Nonspendable3,675$          3,546$          19,843$        15,744$        12,914$        11,805$        9,460$             Restricted264                345                125                96 110                ‐ ‐    Committed‐ ‐ ‐ ‐ ‐ ‐ ‐    Assigned1,674            1,299            850                813                952                1,114            2,182               Unassigned53,961          55,002          57,781          56,497          57,091          54,459          59,705          Total general fund59,574$        60,192$        78,599$        73,150$        71,067$        67,378$        71,347$        All other governmental funds   Nonspendable3,055$          3,112$          53,544$        46,049$        ‐$ ‐$ 107,626$         Restricted324,334        293,281        242,981        223,700        209,352        229,546        232,699           Committed26,069          25,663          27,349          29,810          47,406          48,445          48,764             Assigned28,644          30,800          28,391          36,364          80,771          79,556          34,215             Unassigned(89)                (514)              (62,085)         (55,212)         (48,944)         (40,258)         23,192          Total all other governmental funds382,013$      352,342$      290,180$      280,711$      288,585$      317,289$      446,496$             As part of the implementation, the governmental fund balances for Fiscal Year 2010 were re‐classified.(unaudited)Fiscal Year(1)  In Fiscal Year 2011, the County implemented GASB 54 under which governmental fund balances are reported as nonspendable, restricted, committed, assigned and unassigned.  COLLIER COUNTY, FLORIDAFUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)(amounts expressed in thousands)153 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Revenues:Taxes322,915$    300,341$    282,315$    285,765$    284,124$    296,640$    333,554$    348,780$    357,656$    380,983$    Licenses, permits and impact fees61,033        51,319        40,631        35,168        30,436        23,695        28,920        25,950        54,052        100,329      Intergovernmental83,949        92,818        89,392        83,667        79,402        74,453        86,445        69,883        77,452        93,186        Charges for services38,362        37,172        35,149        32,435        30,739        27,855        27,122        35,928        40,699        46,127        Fines and forfeitures2,708          2,866          3,252          3,712          4,205          3,882          5,730          5,916          3,786          4,081          Interest income4,440          4,606          2,393          1,406          2,197          3,602          4,306          11,256        33,580        48,262        Special assessments3,746          3,132          2,922          2,924          3,035          2,725          2,848          2,853          2,942          3,240          Miscellaneous 6,600          16,063        11,553        4,833          4,664          10,565        6,380          11,344        10,667        7,337          Total revenues523,753      508,317      467,607      449,910      438,802      443,417      495,305      511,910      580,834      683,545      Expenditures:Current:   General government84,599        78,147        73,739        75,725        73,812        79,499        82,409        95,689        96,898        96,483           Public safety177,375      167,788      163,169      153,566      151,858      160,890      165,017      168,592      175,743      168,602         Physical environment15,283        16,157        11,276        13,790        22,870        14,251        9,974          10,608        9,314          11,760           Transportation36,011        36,992        38,789        37,170        42,176        50,741        43,677        41,171        48,253        39,105           Economic environment11,061        9,159          9,265          14,436        14,393        7,841          11,122        12,125        12,619        10,241           Human services14,038        13,151        12,367        12,254        10,988        13,075        12,116        11,277        12,855        12,237           Culture and recreation40,886        37,523        34,114        33,744        34,253        35,745        37,569        37,212        36,456        35,325        Debt service:   Principal20,743        20,039        18,510        25,125        31,602        36,493        34,274        48,085        43,080        36,144           Interest12,713        13,555        14,177        17,565        18,149        20,933        20,340        21,498        21,816        22,407           Payment to refunding bond escrow‐ ‐ 2,086          132              ‐ ‐ ‐ ‐ ‐ ‐    Other fiscal charges19                21                173              2,165          1,082          434              891              116              165              61                Capital outlay67,198        62,186        63,613        61,278        49,406        38,726        69,809        176,681      285,809      290,581          Total expenditures479,926      454,718      441,278      446,950      450,589      458,628      487,198      623,054      743,008      722,946           Excess (deficit) of revenues        over (under) expenditures43,827        53,599        26,329        2,960          (11,787)       (15,211)       8,107          (111,144)     (162,174)     (39,401)       (amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal Year154 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Other financing sources (uses): Bonds issued‐$                 ‐$                 89,780$      73,805$      131,525$    24,620$      59,895$      13,244$      6,215$        ‐$                  Premiums on bonds issued‐ ‐ ‐ 2,082          17,192        2,050          844              ‐ 31                ‐  Payment to refunding escrow‐ ‐ (89,622)       (73,747)       (150,550)     (26,593)       (59,893)       ‐ ‐ (4,500)          Capital leases‐ 1,915          ‐ 236              ‐ ‐ ‐ ‐ ‐  Loans issued‐ ‐ ‐ ‐ ‐ ‐ 13,500        69,391        22,390         Sale of capital assets306              595              314              233              313              70                248              301              245              365               Insurance proceeds796              379              316              300              270              384              310              753              208              885               Transfers in121,654      196,026      97,854        90,637        91,524        107,167      105,394      143,275      144,824      166,113       Transfers out(137,530)     (208,760)     (110,052)     (102,061)     (103,738)     (118,037)     (114,905)     (155,888)     (163,075)     (181,471)         Total other financing sources (uses)(14,774)       (9,845)         (11,410)       (8,751)         (13,228)       (10,339)       (8,107)         15,185        57,839        3,782          Special item ‐ registry bond‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,239          (3,288)         ‐ Net change in fund balances 29,053$     43,754$     14,919$     (5,791)$      (25,015)$    (25,550)$    ‐$                (92,720)$    (107,623)$ (35,619)$    Debt service as a percentage of noncapital   expenditures8.11% 8.56% 9.25% 11.66% 12.67% 13.78% 13.30% 15.61% 14.23% 13.56%Fiscal Year(amounts expressed in thousands)COLLIER COUNTY, FLORIDACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS (CONTINUED)(modified accrual basis of accounting)155 Total Estimated Assessed Fiscal YearCentrally Less: Total Taxable Direct ActualValue as aEnded Residential Personal Assessed Tax Assessed Tax Taxable Percentage of September 30 Property Property Property Exempt Value Rate Value Actual Value1200782,909,061         2,156,726         202                8,023,791       77,042,198             4.6486       85,065,989       100%200888,819,491         2,321,048         226                8,575,874       82,564,891             4.1064       91,140,765       100%200986,949,935         2,430,996         202                10,718,166    78,662,967             4.1246       89,381,133       100%201077,359,174         2,444,323         202                9,826,950       69,976,749             4.4236       79,803,699       100%201167,947,039         2,259,654         171                8,770,667       61,436,197             4.4151       70,206,864       100%201264,464,592         2,248,702         187                8,510,911       58,202,570             4.4149       66,713,481       100%201364,723,621         2,240,098         184                8,471,142       58,492,761             4.4126       66,963,903       100%201466,977,907         2,198,734         152                8,539,021       60,637,772             4.1592       69,176,793       100%201571,149,974         2,186,145         195                8,739,269       64,597,045             4.1582       73,336,314       100%201676,970,360         2,353,841         134                9,235,508       70,088,827             4.1572       79,324,335       100%Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1.Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year.1The basis of assessed value required by the state is 100% of actual value  including tax exemptions.Source: Property Appraiser Recapitulation Report  COLLIER COUNTY, FLORIDAASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)156 COLLIER COUNTY, FLORIDAPROPERTY TAX RATES ‐ ALL DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS(unaudited)Collier CountySpecial DebtCountyFiscal General Revenue ServiceSchool IndependentYear Fund Funds Funds Total District Districts Total2007 3.5790    0.8470       0.2226     4.6486      5.5250   1.3403               11.5139     2008 3.1469 0.7362       0.2233     4.1064      5.3510 1.2792 10.7366     2009 3.1469 0.7528       0.2249     4.1246      4.9090 1.2784 10.3120     2010 3.5645 0.7225       0.1366     4.4236      5.2390 1.3243 10.9869     2011 3.5645 0.6926       0.1580     4.4151      5.6990 1.3299 11.4440     2012 3.5645 0.7627       0.0877     4.4149      5.5270 1.2202 11.1621     2013 3.5645 0.7555       0.0926     4.4126      5.5760 1.2395 11.2281     2014 3.5645 0.5873       0.0074     4.1592      5.6900 1.2228 11.0720     2015 3.5645 0.5860       0.0077     4.1582      5.5800 1.1853 10.9235     2016 3.5645 0.5856       0.0071     4.1572      5.4800 1.1331 10.7703     Sources:  Property Appraiser Recapitulation Report  Collier County Adopted BudgetBasis for property tax rates is 1 mill per $1,000 of assessed value.  Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1.  Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year.Other157 PropertyPercent ofPropertyPercent ofTaxesTotal TaxesTotal             Owner/TaxpayerLevied Rank Taxes LeviedLevied Rank Taxes LeviedHHR Naples LLC1,788,013$          1 0.22%2,400,343$         1 0.26%Florida Power & Light Company1,559,104             2 0.19%1,770,797            2 0.19%PR Mercato LLP1,034,694             3 0.13%805,029               6 0.09%The Arlington of Naples, Inc.900,888                4 0.11%‐‐                Naples HMA, Inc.814,584                5 0.10%‐‐                Arthrex Manufacturing, Inc.803,972                6 0.10%‐‐                Collier HMA, Inc.793,135              7 0.10%‐‐              Lee County Electric Co‐Op, Inc.788,170                8 0.10%‐‐                Wal‐Mart Stores East LP756,812                9 0.09%‐‐                Waterside at Pelican Bay LLC577,010                10 0.07%‐‐                Century Link‐‐                 1,352,890            3 0.15%City National Bank of Miami‐‐               1,087,490           4 0.12%Coastland Center Joint Venture‐‐               939,656              5 0.10%CC‐Naples Inc‐‐                 785,280               7 0.09%Naples Golf & Beach Club, Inc.‐‐                 675,694               8 0.07%Gerry, Sandra‐‐                 652,798               9 0.07%CDC Land Investments, Inc.‐‐                 639,481               10 0.07%Total9,816,382$         1.21%11,109,458$      1.20%Total Property Taxes Levied 820,222,636$     922,849,721$     Amounts for taxpayers with similar names have not been combined.  Source: Property Appraiser's taxpayer listing in order of taxes levied.Property Appraiser Recapitulation Report.20162007COLLIER COUNTY, FLORIDAPRINCIPAL TAXPAYERS COUNTY‐WIDE2016 TAX ROLL(unaudited)158 Fiscal Year Total TaxEnded Levy for Collections inSeptember 30 Fiscal Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy2007 362,568          344,945          95.1% 1,522 346,467          95.6%2008343,906          325,722          94.7%1,191 326,913          95.1%2009329,070          312,096          94.8%2,546 314,642          95.6%2010314,176          297,953          94.8%1,355 299,308          95.3%2011275,704          260,961          94.7%482 261,443          94.8%2012261,137          247,749          94.9%542 248,291          95.1%2013262,037          248,648          94.9%1,197 249,845          95.3%2014255,354          243,137          95.2%615 243,752          95.5%2015271,893          259,121          95.3%78259,199          95.3%2016295,304          281,138          95.2%‐281,138          95.2%Source: Tax Collector Annual ReportFiscal Year of the Levy Total Collections to DateCOLLIER COUNTY, FLORIDAPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS(amounts expressed in thousands)Collected within the(unaudited)159 Limited General Loans andLoans andTotal PercentageFiscal Obligation Revenue Notes Capital Revenue Notes Capital Primary of Personal PerYearBonds2Bonds2Payable LeasesBonds2Payable Leases GovernmentIncome1Capita12007 25,815$        409,620$       57,331$      897$       163,630$       106,932$     68$          764,293$        5.02% 2,485$   2008 27,830           394,145         103,461      752         158,885         103,903       618          789,594          4.39% 2,522     2009 36,719           377,940         89,590        599         153,980         106,935       492          766,255          3.86% 2,442     2010 29,162           421,285         19,690        439         148,983         106,509       636          726,704          3.68% 2,302     2011 14,280           402,040         16,914        269         144,014         99,517         387          677,421          3.54% 2,126     2012 9,340             376,275         10,224        412         138,825         92,438         175          627,689          3.23% 1,914     2013 4,155             362,780         7,923           323         109,642         111,787       40            596,650          2.97% 1,794     2014 3,765             349,845         7,081           230         94,470           113,013       1,222      569,626          2.59% 1,680     2015 3,355             331,520         6,401           1,519      88,874           104,475       1,074      537,218          2.19% 1,618     2016 2,930             312,340         5,845           937         72,832           95,707         1,247      491,838          1.91% 1,499     1See the Schedule of Demographic and Economic Statistics for personal income and population data.2 The outstanding debt amounts do not include any bond premiums which are included in the information provided in the notesCOLLIER COUNTY, FLORIDARATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)  to the financial statements.Governmental ActivitiesBusiness‐type Activities160 The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit.Estimated EstimatedPercentage Share of Debt Applicable Based OverlappingOutstanding on Population (1) DebtDirect Debt (2): Limited General Obligation Bonds 2,930,000$          100.00% 2,930,000$          Gas Tax Bonds (3)104,540,000        100.00% 104,540,000        Special Obligation Bonds (3)207,800,000        100.00% 207,800,000        Capital Leases (3)937,314                100.00% 937,314               Notes Payable (3)5,844,803            100.00% 5,844,803             Subtotal, Direct Debt322,052,117        322,052,117       Overlapping Debt:  N/A‐ 0.00%‐Underlying Debt: City of Naples (4)8,532,000            6.08% 518,746               City of Marco Island (5)11,586,332          5.00% 579,317               City of Everglades (6)‐ 0.12%‐  Subtotal, Underlying Debt20,118,332          1,098,063           Total Direct, Overlapping and Underlying Debt342,170,449$      323,150,180$    (1) Population numbers obtained from www.florida‐demographics.com/cities_by_population.(2) Outstanding debt amounts do not include bond premiums.(3) Totals consist of more than one issuance.(4) Governmental activities debt outstanding amount obtained from the City of Naples.(5) Governmental activities debt outstanding amount obtained from the City of Marco Island.(6) Governmental activities debt outstanding amount obtained from the City of Everglades.(unaudited)(unaudited)COLLIER COUNTY, FLORIDADIRECT, OVERLAPPING AND UNDERLYING GOVERNMENTAL ACTIVITIES DEBTAS OF SEPTEMBER 30, 2016LEGAL DEBT MARGIN INFORMATIONAS OF SEPTEMBER 30, 2016161 LegallyGas AvailableFiscal Tax Non‐Ad ValoremYear Collections Principal Interest Coverage Collections(5) Principal Interest Coverage200719,598$ 6,305$                 8,274$                1.34‐$ ‐$ ‐$ N/A200818,860 6,4908,089 1.29‐ ‐ ‐ N/A200918,456 6,6607,922 1.27‐ ‐ ‐ N/A201018,415 6,9357,645 1.26‐ ‐ ‐ N/A201118,312 7,1857,399 1.2676,416 1,545                 2,597                18.45201218,525 7,5057,077 1.2782,866 4,265                 4,265                9.71201318,229 7,8556,453 1.2786,640 9,695                 7,249                5.11201418,556 8,0404,018 1.5491,043 9,145                 9,674                4.84201519,547 9,4403,697 1.49102,375 8,885                 9,426                5.59201620,478 9,9003,242 1.56107,268 9,280                 9,020                5.86Water/ Sewer Less:NetFiscal Charges Operating AvailableYear and Other(1) Expenses(2) Revenue PrincipalInterest Coverage(3)200798,140$ 57,669$               40,471$              4,595$ 5,436$ 4.032008105,416 49,707                 55,709                4,745 7,527 4.542009107,127 49,766                 57,361                4,905 7,358 4.682010101,830 50,893                 50,937                5,274 6,843 4.202011106,839 60,107                 46,732                4,969 6,711 4.002012104,164 58,155                 46,009                5,189 6,494 3.942013105,682 68,916                 36,766                5,422 6,268 3.152014109,514 69,710                 39,804                5,967 3,986 4.002015118,066 74,344                 43,722                6,073 3,639 4.502016125,456 84,474                 40,982                3,986 2,841 6.00(1) Operating revenues plus other income; gain on disposal of assets and investment market value, capital grants and contributions and transfers in are not included.(2) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets and investment market value, interest expense and transfers out are not included.(3) Net available revenue divided by total bonded debt service requirements for the County Water and Sewer District.(4) Special Obligation Bonds were first issued in FY‐2010, debt service payments commenced in FY‐2011.(5) The revenues that comprise the legally available non‐ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees. Debt ServiceBusiness‐type Activities:Water and Sewer Revenue BondsCOLLIER COUNTY, FLORIDAPLEDGED‐REVENUE COVERAGEDebt ServiceGas Tax BondsDebt ServiceSpecial Obligation Bonds(4)LAST TEN FISCAL YEARS(amounts expressed in thousands)(unaudited)Governmental Activities:162 Per CapitaFiscal Personal Personal Median School UnemploymentYear Population(1) Income(2) Income(3) Age(4) Enrollment(5) Rate(6)2007 333,858             15,236,905,000      49,492         44.5           43,186                3.5%2008 332,854             17,990,169,000      57,446         44.8           42,721                5.5%2009 333,032             19,846,737,000      63,276         45.1           42,534                10.0%2010 331,800             19,739,453,000      62,559         45.2           42,716                12.2%2011 321,520             19,127,928,000      60,049         45.9           42,921                11.4%2012 323,785             19,446,631,000      59,264         46.9           43,238                9.3%2013 329,849             20,075,468,000      60,391         47.1           43,789                7.2%2014 339,642             22,033,344,000      64,872         47.4           44,415                6.3%2015 348,777             24,571,667,000      73,869         47.5           45,228                5.2%2016353,936             25,763,656,000      78,473         47.9           47,289                4.9%Sources:(1)www.colliergov.net/your-government/divisions-a-e/comprehensive-planning/population-and-demographic(2)www.bebr.ufl.edu/data/localities/125/county(3)www.bebr.ufl.edu/data/localities/120/county(4)www.bebr.ufl.edu/data/localities/196/county(5)www.collierschools.com/Page/349(6)www.floridajobs.org(unaudited)COLLIER COUNTY, FLORIDADEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN FISCAL YEARS163 Percent of Percent ofTotal County Total CountyEmployer Employees Rank Employment Employees Rank EmploymentCollier County Public Schools 5,361                 1 3.87% 6,685                 1 4.62%NCH Healthcare System4,315                 2 3.11%3,007                 23.24%Collier County Government (excl. Sheriff)2,276                 3 1.64%2,635                 32.19%Arthex, Inc2,105                 4 1.52%‐ ‐Collier County Sheriff's Office1,401                 5 1.01%1,273                 61.02%Publix Supermarkets1,249                 6 0.90%2,214                 42.05%Ritz Carlton Hotel1,100                 7 0.79%‐ ‐Seminole Casino ‐ Immokalee1,000                 8 0.72%‐ ‐JW Marriott ‐ Marco Island801 9 0.58%743 70.78%Naples Grande Beach Resort (1)488 10 0.35%605 90.77%Other employers118,576             85.51%101,883             85.33% Totals138,672             100.00%119,045             100.00%(1) The Naples Grande Beach Resort property has also operated as the Registry Resort and the Waldorf Astoria Naples in recent years.Sources:Southwest Florida Economic Development AllianceCollier County Public SchoolsNCH Healthcare SystemPublix Corporate OfficeArthrex, Inc.2016 Collier County Budget BookCOLLIER COUNTY, FLORIDAPRINCIPAL EMPLOYERS(unaudited)20162007164 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Function:General government 1,262      1,217        1,216        1,203        1,222        1,219        1,252        1,342        1,398        1,394        Public safety 1,124      1,096        1,072        1,061        1,061        1,062        1,053        1,064        1,085        1,103        Physical environment 70           69              67              67              69              66              66              69             74              77              Transportation 211         192            187            187            199            213            234            257           281            280            Economic environment 26           27              28              26              28              27              22              22             20              19              Human services56           56              53              51              50              50              54              55             56              61              Culture and recreation304         298            294            289            293            293            308            328           363            379            Water and Sewer384         342            340            342            344            344            335            335           358            346            Solid Waste28           27              28              29              27              27              27              27             27              27              Emergency Medical Services 193         193            172            172            172            172            183            185           201            206            Airport Authority15           14              14              16              16              16              16              16             15              15              Collier Area Transit4             3                3                3                3                1                1                1                1                1                Total3,677      3,534        3,474        3,446        3,484        3,490        3,551        3,701        3,879        3,908        (1) Includes the Board of County Commissioners and the Constitutional OfficersCOLLIER COUNTY, FLORIDABUDGETED FULL‐TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1)LAST TEN FISCAL YEARS(unaudited)Fiscal Year165 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Function:Police:Physical arrests 9,359              9,347              11,277           11,277           11,297           20,180           13,310           15,671           20,226           22,028           Parking violations 867                 931                 964                 1,182              1,175              1,479              1,283              1,297              843                 1,753              Traffic violations 14,462           16,355           19,868           22,211           19,237           19,680           22,051           28,308           49,831           64,372           Fire:Fires reported 31 82 37 52 46 468                 498                 533                 586                 590                 Emergency responses (exclude fires)839                 1,093              1,080              1,024              764                 569                 825                 760                 756                 743                 Number of calls answered870                 1,175              1,117              1,076              810                 1,037              1,323              1,293              1,342              1,333              Transportation:Collier Area Transit ridership1,082,519      1,177,029      1,181,530      1,361,294      1,207,866      1,154,702      1,064,910      1,109,710      1,166,358      1,180,147      Street resurfacing (lane miles)34 34 80 78 142                 131                 85 97 52 44 Culture and recreation:Beach parking stickers issued139,828         134,051         181,878         122,415         114,778         312,144         98,093           132,218         80,542           76,344           Library circulation2,349,418      2,302,017      2,578,588      2,578,589      2,768,648      2,760,427      2,969,238      3,034,439      3,000,394      2,916,523      Water:New connections2,023              2,204              1,878              1,417              1,189              921                 909                 704                 553                 1,593              Wastewater:Average daily sewage treatment 17,863,860    17,090,074    17,150,000    16,954,000    15,834,000    14,747,000    14,326,000    13,769,205    15,558,000    15,583,055       (thousands of gallons)Sources:Police‐Collier County Sheriff's DepartmentFire‐Collier County Bureau of Emergency Services, Greater Naples Fire DistrictTransportation‐Collier County Alternative Transportation , Road and BridgeCulture and Recreation‐Collier County Parks and Recreation, Public LibraryWater‐Collier County Utility BillingWastewater‐Collier County WastewaterCOLLIER COUNTY, FLORIDAOPERATING INDICATORS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)Fiscal Year166 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Function:Public Safety:   Police stations 7 7 7 7 7 7 7 7 7 7    Patrol units274                276                276                275                275                275                275                275                275                275                Fire:   Fire stations4 4 4 3 3 3 3 3 2 2 Highways and streets:   Streets (miles)1,159            1,149            1,151            1,184            1,184            1,184            1,184            1,184            1,184            1,147               Streetlights5,182            4,958            4,958            4,868            4,781            4,759            4,701            4,485            3,767            3,987               Traffic signals365                360                370                353                297                295                283                283                224                216                Culture and recreation:   Parks acreage1,521            1,521            1,521            1,521            1,520            1,511            1,473            1,473            1,440            1,436               Parks61 61 61 61 61 60 59 59 56 55    Swimming pools8 8 8 8 8 8 8 8 7 7    Tennis courts45 45 45 45 45 45 45 45 45 45    Community centers9 9 8 8 8 8 8 8 8 8    Libraries10 10 10 10 10 10 10 10 9 9    Number of volumes in libraries567,248        605,408        683,237        692,229        673,131        741,389        797,823        797,978        647,484        769,717        Water:   Number of customers61,830          59,443          57,548          55,878          54,190          53,181          51,796          51,499          51,136          59,257             Water mains (miles)1,015            986                925                888                888                886                886                886                870                860                   Maximum daily capacity (per 1,000 gallons) 33,877,000  31,376,000  30,460,000  30,120,000  29,988,000  29,616,000  28,368,000  33,339,865  30,956,261  36,116,725  Wastewater:   Sanitary sewers (miles)1,021            1,028            1,030            1,081            1,116            1,115            1,095            1,081            1,053            871                   Primary and secondary drainage facilities294                306                306                305                305                303                303                303                303                303                Police‐Collier County Sheriff's DepartmentFire‐Collier County Bureau of Emergency ServicesHighway and Streets‐Collier County Traffic Operations, Transportation Engineering, Road and BridgeCulture and Recreation‐Collier County Public Library, Parks and RecreationWater‐Collier County Water, Utility BillingWastewater‐Collier County Stormwater, WastewaterCOLLIER COUNTY, FLORIDACAPITAL ASSET STATISTICS BY FUNCTIONLAST TEN FISCAL YEARS(unaudited)Fiscal Year167 THIS PAGE INTENTIONALLY LEFT BLANK  SINGLE AUDIT/FEDERAL AND STATE  SCHEDULE OF FINANCIAL ASSISTANCE The Single Audit/Federal and State schedule of financial assistance section presents Grants  compliance reports filed by Collier County with Federal government and State government,  respectively.   THIS PAGE INTENTIONALLY LEFT BLANK  CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated March 22, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 171 Honorable Board of County Commissioners Collier County, Florida   Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the County’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 County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 172 CliftonLarsonAllen LLP CLAconnect.com   INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County, Florida’s (County) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the requirements described in the State of Florida Department of Financial Services’ State Projects Compliance Supplement that could have a direct and material effect on each of the County’s major federal programs and state projects for the year ended September 30, 2016. The County’s major federal programs and state projects are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the County’s major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Auditor General Local Governmental Entity Audits. Those standards, the Uniform Guidance, and Chapter 10.550, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County’s compliance. 173 Honorable Board of County Commissioners Collier County, Florida   Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2016. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items 2016-001 and 2016-002. Our opinion on each major federal program and state project is not modified with respect to these matters. The County’s responses to the noncompliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs and corrective action plan. The County’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and major state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program of state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program and state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 174 Honorable Board of County Commissioners Collier County, Florida   Report on Internal Control Over Compliance (Continued) Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as items 2016-001 and 2016-002 that we consider to be significant deficiencies. The County’s responses to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs and corrective action plan. The County’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the result of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 175 CFDA #/ Transfers to  CSFA #Grant / Contract  Number Expenditures Subrecipients Department of Agriculture Indirect Programs: Florida Department of Agriculture and Consumer Services: Summer Food Service Program for Children 10.559 04‐0804 67,944$             ‐$                          Cooperative Forestry Assistance 10.664 Collier County 7,400                  ‐                             Total Department of Agriculture 75,344               ‐                             Department of Housing and Urban Development Direct Programs: Office of Community Planning and Development: Community Development Block Grants/Entitlement Grants 14.218 B‐05‐UC‐12‐0016 139,563             102,917               Community Development Block Grants/Entitlement Grants 14.218 B‐07‐UC‐12‐0016 4,169                  4,169                    Community Development Block Grants/Entitlement Grants 14.218 B‐08‐UN‐12‐0003 33,390               ‐                             Community Development Block Grants/Entitlement Grants 14.218 B‐10‐UC‐12‐0016 212,000             212,000               Community Development Block Grants/Entitlement Grants 14.218 B‐11‐UC‐12‐0016 17,035               17,035                 Community Development Block Grants/Entitlement Grants 14.218 B‐11‐UN‐12‐0003 3,922                  ‐                             Community Development Block Grants/Entitlement Grants 14.218 B‐12‐UC‐12‐0016 22,867               22,867                 Community Development Block Grants/Entitlement Grants 14.218 B‐13‐UC‐12‐0016 359,613             278,560               Community Development Block Grants/Entitlement Grants 14.218 B‐14‐UC‐12‐0016 923,856             881,096               Community Development Block Grants/Entitlement Grants 14.218 B‐15‐UC‐12‐0016 1,379,126          957,627               Total CFDA 3,095,541          2,476,271            Emergency Solutions Grant Program 14.231 E‐13‐UC‐12‐0024 16,550               7,958                    Emergency Solutions Grant Program 14.231 E‐14‐UC‐12‐0024 98,589               44,721                 Emergency Solutions Grant Program 14.231 E15‐UC‐12‐0016 96,511               73,606                 Total CFDA 211,650             126,285               Shelter Plus Care 14.238 FL0394C4D061000 7,399                  7,399                    Home Investment Partnerships Program 14.239 M‐06‐UC‐12‐0217 36,783               ‐                             Home Investment Partnerships Program 14.239 M‐08‐UC‐12‐0217 17,186               ‐                             Home Investment Partnerships Program 14.239 M‐09‐UC‐12‐0217 324,135             ‐                             Home Investment Partnerships Program 14.239 M‐10‐UC‐12‐0217 191,325             ‐                             Home Investment Partnerships Program 14.239 M‐11‐UC‐12‐0217 296,620             ‐                             Home Investment Partnerships Program 14.239 M‐12‐UC‐12‐0217 91,289               ‐                             Home Investment Partnerships Program 14.239 M‐13‐UC‐12‐0217 366,940             ‐                             Home Investment Partnerships Program 14.239 M‐14‐UC‐12‐0217 157,512             37,395                 Home Investment Partnerships Program 14.239 M15‐UC120217 45,625               ‐                             Total CFDA 1,527,415          37,395                 Total Department of Housing and Urban Development 4,842,005          2,647,350            Department of the Interior Direct Programs: Office of the Secretary: Payments in Lieu of Taxes 15.226 Collier County 1,431,631           ‐                             Fish and Wildlife Service: National Wildlife Refuge Fund 15.659 Collier County 164,003              ‐                             Total Department of the Interior 1,595,634           ‐                             Department of Justice Direct Programs: Office of Community Oriented Policing Services: Public Safety Partnership and Community Policing Grants 16.710 2012ULWX0008 174,875              ‐                             Public Safety Partnership and Community Policing Grants 16.710 2013ULWX0047 168,855              ‐                             Total CFDA 343,730              ‐                             Criminal Division: Equitable Sharing Program 16.922 Collier County Sheriff 81,893               ‐                             (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE 176 CFDA #/ Transfers to  CSFA #Grant / Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Bureau of Justice Assistance: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2014‐DJ‐BX‐0305 31,102$             ‐$                          Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015‐DJ‐BX‐0731 21,291               ‐                             Indirect Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016‐JAGC‐COLL‐1‐H3‐196 68,697               ‐                             Total CFDA 121,090             ‐                             Florida Office of the Attorney General: Crime Victim Assistance 16.575 V005‐14129 131,194             ‐                             Florida Department of Children and Families ‐ Florida Coalition Against Domestic Violence: Violence Against Women Formula Grants 16.588 16‐8008‐LE‐INV 74,476               ‐                             Total Department of Justice 752,383             ‐                             Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program 20.106 3‐12‐0031‐008‐2013 65,811               ‐                             Airport Improvement Program 20.106 3‐12‐0031‐009‐2016 5,377                  ‐                             Airport Improvement Program 20.106 3‐12‐0031‐010‐2016 1,350                  ‐                             Airport Improvement Program 20.106 3‐12‐0142‐011‐2016 6,622                  ‐                             Total CFDA 79,160               ‐                             Federal Transit Administration (FTA): Federal Transit Cluster: Federal Transit_Capital Investment Grants 20.500 FL‐03‐0264‐00 37,847               ‐                             Federal Transit_Capital Investment Grants 20.500 FL‐04‐0033‐00 1,652                  ‐                             Federal Transit_Capital Investment Grants 20.500 FL‐04‐0117‐00 10,479               ‐                             Total CFDA 49,978               ‐                             Federal Transit_Formula Grants 20.507 1032‐2016‐3 245,351             ‐                             Federal Transit_Formula Grants 20.507 FL‐2016‐056‐00 1,065,935          ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X699‐00 14,786               ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X766‐00 34,279               ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X816‐00 267,263             ‐                             Federal Transit_Formula Grants 20.507 FL‐90‐X853‐00 533,848             ‐                             Federal Transit_Formula Grants 20.507 FL‐95‐X069‐00 1,252                  ‐                             Federal Transit_Formula Grants 20.507 FL‐95‐X076‐00 1,071,342          ‐                             Federal Transit_Formula Grants 20.507 FL‐95‐X085‐00 29,555               ‐                             Federal Transit_Formula Grants 20.507 FL‐95‐X086‐00 17,988               ‐                             Total CFDA 3,281,599          ‐                             Bus and Bus Facilities Formula Program 20.526 FL‐34‐0004‐00 45,228               ‐                             Bus and Bus Facilities Formula Program 20.526 FL‐34‐0019‐00 276,160             ‐                             Total CFDA 321,388             ‐                             Total Federal Transit Cluster 3,652,965          ‐                             Indirect Programs: Florida Department of Transportation: Highway Planning and Construction 20.205 425670‐1‐14‐01 / A4377 405,632             ‐                             Highway Planning and Construction 20.205 429899‐1‐58‐01, 429899‐1‐68‐01 / G0258 371,724             ‐                             Highway Planning and Construction 20.205 429900‐1‐58‐01 / ARR00 392,001             ‐                             Highway Planning and Construction 20.205 430868‐1‐18‐01 / AR481 41,833               ‐                             Highway Planning and Construction 20.205 430875‐1‐58‐01 / ARS55 310,773             ‐                             Highway Planning and Construction 20.205 430879‐1‐58‐01 / G0A31 90                       ‐                             Highway Planning and Construction 20.205 433177‐1‐58‐01, 433177‐1‐68‐01 / G0870 77                       ‐                             Highway Planning and Construction 20.205 439314‐1‐14‐01 / G0B56 91,851               ‐                             Total CFDA 1,613,981          ‐                             Metropolitan Transportation Planning and State and  Non‐Metropolitan Planning and Research 20.505 410113‐1‐14‐24 / AQR14 24,108               ‐                             Formula Grants for Rural Areas 20.509 410120‐1‐84‐34 / G0738 366,406             ‐                             (Continued) 177 CFDA #/ Transfers to  CSFA #Grant / Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 435210‐1‐93‐12; FL‐16‐X010‐02 144,420$           ‐$                          Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 FL‐16‐0039 421,909             ‐                             Total CFDA 566,329             ‐                             Total Department of Transportation 6,302,949          ‐                             U.S. Election Assistance Commission Indirect Programs: Florida Department of State: Help America Vote Act Requirements Payments 90.401 2015‐2016‐0001‐CLL 31,549               ‐                             Total U.S. Election Assistance Commission 31,549               ‐                             Department of Health and Human Services Indirect Programs: Florida Department of Elder Affairs ‐ Area Agency on Aging for  Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.15 6,856                   ‐                             Special Programs for the Aging_Title III, Part B_Grants for Supportive Services and Senior Centers 93.044 OAA 203.16 241,380              ‐                             Total CFDA 248,236              ‐                             Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.15 148,523             ‐                             Special Programs for the Aging_Title III, Part C_Nutrition Services 93.045 OAA 203.16 444,359             ‐                             Total CFDA 592,882             ‐                             Nutrition Services Incentive Program 93.053 NSIP 203.15 5,051                  ‐                             Nutrition Services Incentive Program 93.053 NSIP 203.16 44,862               ‐                             Total CFDA 49,913               ‐                             Total Aging Cluster 891,031             ‐                             National Family Caregiver Support, Title III, Part E 93.052 OAA 203.15 33,643               ‐                           National Family Caregiver Support, Title III, Part E 93.052 OAA 203.16 107,802             ‐                             Total CFDA 141,445             ‐                             Florida Department of Revenue: Child Support Enforcement 93.563 1704FLCSES / COC11 217,267             ‐                             Florida Department of State: Voting Access for Individuals with Disabilities_Grants to States 93.617 2015‐2016‐0004‐CLL 1,607                  ‐                             Total Department of Health and Human Services 1,251,350          ‐                             Corporation for National and Community Service  Direct Programs: Retired and Senior Volunteer Program 94.002 15SRSFL015 58,359                ‐                             Total Corporation for National and Community Service 58,359                ‐                             Department of Homeland Security Indirect Programs: Florida Executive Office of the Governor: Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) 97.036 13‐DB‐73‐09‐21‐02‐530 33,118               ‐                             Emergency Management Performance Grants 97.042 16‐FG‐5A‐09‐21‐01‐078 103,466             ‐                             Emergency Management Performance Grants 97.042 17‐FG‐P9‐09‐21‐01‐085 10,333               ‐                             Total CFDA 113,799             ‐                             Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐01‐240 15,993               ‐                             Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐02‐277 37,571               ‐                             Homeland Security Grant Program 97.067 15‐DS‐P4‐09‐21‐02‐278 19,975               ‐                             Homeland Security Grant Program 97.067 16‐DS‐T9‐09‐21‐01‐302 80,362               ‐                             Total CFDA 153,901             ‐                             Total Department of Homeland Security 300,818             ‐                             15,210,391$     2,647,350$       TOTAL EXPENDITURES OF FEDERAL AWARDS 178 CFDA #/ Transfers to  CSFA #Grant / Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Direct Projects: Emergency Management Programs 31.063 16‐BG‐83‐09‐21‐01‐011 70,356$             ‐$                          Emergency Management Programs 31.063 17‐BG‐83‐09‐21‐01‐018 35,875               ‐                             Total Florida Executive Office of the Governor 106,231             ‐                             Direct Projects: Beach Management Funding Assistance Program 37.003 14CO1 481,818             ‐                             Beach Management Funding Assistance Program 37.003 15CO1 48,406               ‐                             Total Florida Department of Environmental Protection 530,224             ‐                             Direct Projects: 40.012 SL007 1,529                  ‐                             Total Florida Department of Economic Opportunity 1,529                  ‐                             Florida Housing Finance Corporation Direct Projects: 40.901 Collier County FY 2015‐2016 116,990             ‐                             State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2011‐2012 20,000               ‐                             State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2012‐2013 320,000             ‐                             State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2013‐2014 471,415             111,415               State Housing Initiatives Partnership (SHIP) Program 52.901 Collier County FY 2014‐2015 433,579             12,925                 Total CSFA 1,244,994          124,340               Total Florida Housing Finance Corporation 1,361,984          124,340               Direct Projects: State Aid to Libraries 45.030 13‐ST‐08 30,373               ‐                             State Aid to Libraries 45.030 14‐ST‐08 177,418             ‐                             State Aid to Libraries 45.030 15‐ST‐08 33,437               ‐                             Total Florida Department of State and Secretary of State 241,228             ‐                             Direct Projects: Aviation Development Grants 55.004 430969‐1‐94‐01 / AR519 3,821                  ‐                             Aviation Development Grants 55.004 435447‐1‐94‐01 / AR865 43,948               ‐                             Aviation Development Grants 55.004 438877‐1‐94‐01 / G0594 247,200             ‐                             Aviation Development Grants 55.004 433631‐1‐94‐01 / G0576 155,200             ‐                             Total CSFA 450,169             ‐                             Public Transit Block Grant Program 55.010 410139‐1‐84‐01 / AQQ16 896,635             ‐                             Public Transit Service Development Program 55.012 432836‐1‐94‐01 / AQQ85 38,241               ‐                             Public Transit Service Development Program 55.012 435214‐1‐84‐01 / ARJ84 178,053             ‐                             Total CSFA 216,294             ‐                             Transportation Regional Incentive Program (TRIP)55.026 425840‐1‐58‐01 / ARF43 3,995,089          ‐                             Alligator Alley Mile Marker 63 Fire Station 55.036 435389‐1‐94‐01 / ARF81 1,273,253          ‐                             Indirect Projects: Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 43202718401, 43202818401 / GO135 524,151             ‐                             Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 43202718401, 43202818401 / G0B09 196,486             ‐                             Total CSFA 720,637             ‐                             (Continued) Florida Executive Office of the Governor Florida Department of State and Secretary of State Florida Department of Transportation Florida Department of Environmental Protection Florida Department of Economic Opportunity Local Economic Development Initiatives State Housing Initiatives Partnership Program (SHIP) 179 CFDA #/ Transfers to  CSFA #Grant / Contract  Number Expenditures Subrecipients COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Federal or State Grantor/Pass‐Through Grantor/Program or Project Title FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 43202911401 / G0216 19,975$             ‐$                          Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 43202911401 / G0C36 4,955                  ‐                             Total CSFA 24,930               ‐                             Total Florida Department of Transportation 7,577,007          ‐                             Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 60.115 LHZ46 258,922             240,087               Total Florida Department of Children and Families 258,922             240,087               Florida Department of Health Direct Projects: Emergency Medical Services (EMS) Matching Awards 64.003 M4066 104,261             ‐                             County Grant Awards 64.005 C3011 18,899               ‐                             County Grant Awards 64.005 C4011 159,951             ‐                             Total CSFA 178,850             ‐                             Total Florida Department of Health 283,111             ‐                             Indirect Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.15 25,107               ‐                             Home Care for the Elderly 65.001 HCE 203.16 12,920               ‐                             Total CSFA 38,027               ‐                             Alzheimer's Respite Services 65.004 ADI 203.15 205,489             ‐                             Alzheimer's Respite Services 65.004 ADI 203.16 41,656               ‐                             Total CSFA 247,145             ‐                             Community Care for the Elderly 65.010 CCE 203.15 593,088             ‐                             Community Care for the Elderly 65.010 CCE 203.16 166,892             ‐                             Total CSFA 759,980             ‐                             Total Florida Department of Elder Affairs 1,045,152          ‐                             TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 11,405,388$     364,427$            Florida Department of Elder Affairs 180 COLLIER COUNTY, FLORIDA  NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL  AWARDS AND STATE FINANCIAL ASSISTANCE  YEAR ENDED SEPTEMBER 30, 2016    1. Basis of Presentation  The accompanying Schedule of Expenditures of Federal Awards and State Projects (the Schedule)  includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on  the modified accrual basis of accounting for expenditures accounted for in the governmental funds and  the accrual basis of accounting for expenditures in proprietary funds.  Under the modified accrual basis,  revenue is recognized if it is both measurable and available for use during the fiscal year and  expenditures are recognized in the period liabilities are incurred, if measurable.  Under the accrual basis,  expenditures are recognized in the period liabilities are incurred.    The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of  Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit  Requirements for Federal Awards (Uniform Guidance), and Section 215.97, Florida Statutes.  Therefore,  some amounts presented in the Schedule may differ from amounts presented, or used in the  preparation of, the basic financial statements for the fiscal year ended September 30, 2016.  2. Contingency  The grant revenue amounts received are subject to audit and adjustment.  If any expenditures or  expenses are disallowed by the grantor agencies as a result of such an audit, any claim for  reimbursement to the grantor agencies would become a liability of the County.    3. Negative Figures on the Schedule of Expenditures  Negative expenditures reported in the Schedules of Expenditures of Federal Awards and State Financial  Assistance are a result of corrections which reduced expenditures in one grant and increased  expenditures in another grant or funding source.   Although the current expenditures on a grant may be  negative, the total of all expenditures on the grant is expected to be positive over its total period of  performance.    4. Indirect Cost Rate  The County has not elected to use the 10 percent de minimus cost rate allowed under the Uniform  Guidance.  181 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016   Section I – Summary of Auditors’ Results Financial Statements 1. Type of auditors’ report issued: Unmodified 2. Internal control over financial reporting:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financial statements noted? yes x no Federal Awards 1. Internal control over major federal programs:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? x yes none reported 2. Type of auditors’ report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? x yes no Identification of Major Federal Programs CFDA Number(s) Name of Federal Program or Cluster 14.239 Home Investment Partnerships Program 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities 20.500, 20.507, 20.526 Federal Transit Cluster 93.044, 93.045, 93.053 Aging Cluster Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee? yes x no 182 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016 Section I – Summary of Auditors’ Results (Continued) State Financial Assistance 1. Internal control over state projects:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes x no reported 2. Type of auditors’ report issued on compliance for state projects: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with Chapter 10.557? yes x no Identification of Major State Projects CSFA Number(s) Name of State Project 37.003 Beach Management Funding Assistance Program 40.901 State Housing Initiatives Partnership (SHIP) Program 55.026 Transportation Regional Incentive Program (TRIP) 55.012 Public Transit Development Program 65.010 Community Care for the Elderly Dollar threshold used to distinguish between Type A and Type B state projects: $ 342,162 183 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016   Part II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Part III – Findings and Questioned Costs – Major Federal Programs 2016-001 Eligibility Federal Program Department of Health and Human Services Passed through the Florida Department of Elder Affairs – Area Agency on Aging for Southwest Florida, Inc. CFDA 93.044, 93.045, 93.053 Aging Cluster Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria Only individuals whom have applied for benefits using the proper standardized forms and been properly reviewed, approved and setup in the Client Information and Registration Tracking System (CIRTS) can be provided with meals by the Aging Cluster. Condition Five individuals were served a total of 41 meals prior to being enrolled in the CIRTS system. Context The auditor selected 60 individuals to test and noted the condition above. Sample was a statistically valid sample. Questioned Costs None Cause Unallowable costs were incurred due to the individuals not being properly determined to be eligible. Effect Lack of controls over these expenditures could result in additional unallowable costs being charged to the grant. Repeat Finding Yes. Prior year finding 2015-005. 184 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016   Part III – Findings and Questioned Costs – Major Federal Programs (Continued) Recommendation We recommend that the County implement policies and procedures to ensure that all individuals receiving benefits have completed the required applications and have properly been determined to be eligible. Views of Responsible Officials and Corrective Action Plan There is no disagreement with the audit finding. 2016-002 Program Income and Reporting Federal Program Department of Housing and Urban Development CFDA 14.239 Home Investment Partnership Program (HOME) Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria In accordance with 24 CFR 92.502 (a) the participating jurisdiction must report all program income in HUD's computerized disbursement and information system. Condition Based on our testing of program income in fiscal year 2016, recapture payments from the State of Florida SHIP program were incorrectly recorded and reported as HOME program income. Although eligible for HOME match, these SHIP recapture payments had not been designated as HOME match in the HOME match log that was reported in the annual report and in IDIS. Context Auditors randomly selected two of the four HOME program receipts for testing. Sample was a statistically valid sample. In fiscal year 2016, the only program income received by the HOME program was SHIP recaptured payments designated as HOME match in the year of disbursement. Auditor requested HOME match log to ensure proper recording of recaptured funds. The receipts selected for testing were not previously designated as HOME match. Additionally, per management's review of the remaining two receipts there was one additional error identified. Questioned Costs None 185 COLLIER COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2016   Part III – Findings and Questioned Costs – Major Federal Programs (Continued) Cause During the receipting process, the incorrect file was accessed when determining the proper program for coding. The County did not have the proper review procedure in place to detect improper codings. Effect The fiscal year 2016 HOME program income was incorrectly reported in IDIS, the annual report and reimbursement requests were understated by the amount of improperly coded program income. Repeat Finding No Recommendation We recommend that the County enhance its review procedures to ensure that program income is recorded to the appropriate program. Additionally, the County should ensure that program income is properly reported in the annual report. Management’s Response There is no disagreement with the audit finding. Part IV – Findings and Questioned Costs – Major State Projects Our audit did not disclose any matters required to be reported in accordance with Rule 10.554(1)(l)4, Rules of the Florida Auditor General. 186 COLLIER COUNTY, FLORIDA Summary Schedule of Prior Audit Findings Year Ended September 30, 2016   Finding 2015-001 Corrective action was taken. Finding 2015-002 Corrective action was taken. Finding 2015-003 Corrective action was taken. Finding 2015-004 Corrective action was taken. Finding 2015-006 Corrective action was taken. Finding 2015-005 See current year finding 2016-001. Reason for finding’s recurrence The corrective action plan implemented by management commenced on June 6, 2016. The 5 events of noncompliance occurred prior to that date. . 187 COLLIER COUNTY, FLORIDA Corrective Action Plan Year Ended September 30, 2016   Oversight Agency for Audit: Department of Transportation Collier County Board of County Commissioners respectfully submits the following corrective action plan for the year ended September 30, 2016. Audit period: FY 2016 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HEALTH AND HUMAN SERVICES 2016-001 Aging Cluster – CFDA No. 93.044, 93.045, 93.053 Recommendation: That the County implements policies and procedures to ensure that all individuals receiving benefits have completed the required applications and have properly been determined to be eligible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Eligibility was determined after the required timeframe for noncompliant test selections and occurred prior to implementation of the corrective actions on June 6, 2016. The corrective actions remain in place to ensure clients are registered within the required timeframe. Name(s) of the contact person(s) responsible for corrective action: Therese Stanley, Grants Compliance Manager Planned completion date for corrective action plan: June 6, 2016 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2016-002 Home Investment Partnership Program (HOME) – CFDA No. 14.239 Recommendation: That the County enhances its review procedures to ensure that program income is recorded to the appropriate program. Additionally, the County should ensure that program income is properly reported in the annual report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A single document (the cumulative HOME Match Log) will track all HOME program matches inclusive of SHIP loans. Use of a single log will support HOME program income postings as accurate. The HOME Match Log currently serves as support to the annual HOME Match Report and as such will ensure SHIP loans are recorded timely on the report. 188 COLLIER COUNTY, FLORIDA Corrective Action Plan Year Ended September 30, 2016   The secondary (SHIP/HOME Match) log used to identify both actual and future SHIP loan use as HOME match has been eliminated. Should HOME program match needs merit use of additional SHIP loans as a source, current year SHIP loans will be identified and recorded on the HOME Match Log without delay. The 2016 HOME Match report has been revised and submitted to HUD to include the missing SHIP loan values. The HOME (SHIP) Revenue (Intake) Form will be enhanced to document review of the HOME Match Log in the determination of SHIP loan pay backs as HOME program income. Name(s) of the contact person(s) responsible for corrective action: Therese Stanley, Grants Compliance Manager Planned completion date for corrective action plan: March 31, 2017 If the Department of Transportation has questions regarding this plan, please call Therese Stanley at 239-252-2959. 189 THIS PAGE INTENTIONALLY LEFT BLANK  190 CliftonLarsonAllen LLP CLAconnect.com    MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida We have audited the financial statements of Collier County, Florida (County) as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated March 22, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated March 22, 2017, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of prior year’s findings and recommendations are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information has been included in the notes to the basic financial statements. Honorable Board of County Commissioners Collier County, Florida   Financial Condition Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the County has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the County’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Annual Financial Report Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the County for the fiscal year ended September 30, 2016, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we determined that these two reports were in agreement. Special District Component Units Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 2 Honorable Board of County Commissioners Collier County, Florida Page 3   Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 3 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Appendix A – Status of Prior Year’s Findings and Recommendations Year Ended September 30, 2016   Prior Year Findings and Recommendations Current Year Status Cleared Partially Cleared Not Cleared 2015-001 Material Weakness X 2015-002 Significant Deficiency X 2015-003 Compliance and Material Weakness X 2015-004 Significant Deficiency X 2015-005 (current year finding 2016-001) Significant Deficiency X 2015-006 Significant Deficiency X 4 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida’s (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund; and Section 288.8018(1), Florida Statutes, regarding funds related to the Deepwater Horizon oil spill during the year ended September 30, 2016. Management is responsible for the County's compliance with those requirements. Our responsibility is to express an opinion on the County's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. Our examination disclosed material noncompliance with Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund. The County charged this program $14,027 in nonallowable costs. In our opinion, except for the noncompliance reported in the previous paragraph, the County complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the County and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 22, 2017 THIS PAGE INTENTIONALLY LEFT BLANK      ANNUAL DEBT REPORT (UNAUDITED)   Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal  year ended September 30, 2016.      Table 1.  Calculation of Collier County General Governmental Debt Ratio    Table 2.  Calculation of Collier County Enterprise Debt Ratios        Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes 280,655,632$          Governmental Impact Fees 35,602,950              Half Cent Sales Tax 40,658,974              Developmental Fees 26,811,247              State Revenue Sharing 10,516,907              5th Cent Local Option Gas Tax 5,494,066                 6th Cent Local Option Gas Tax 7,274,673                 Constitutional Gas Tax 4,284,837                 Seventh Cent Gas Tax 1,893,544                 Ninth Cent Gas Tax 1,531,119                 Parks and Recreation Fees 7,324,453                 Tourist Development Tax 21,838,332              Court Facilities Fees 900,299                    Communications Services Tax 4,702,746                 Total bondable revenues 449,489,779$          Fiscal 2016 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal:2,700,000$              Interest:1,174,900                 Series 2014 Gas Tax Bonds Principal:7,200,000                 Interest:2,067,059                 Series 2010 Special Obligation Bonds Principal:1,905,000                 Interest:2,145,913                 Series 2010B Special Obligation Bonds Principal:2,040,000                 Interest:671,600                    Series 2011 Special Obligation Bonds Principal:5,335,000                 Interest:3,355,131                 Series 2013 Special Obligation Bonds Principal:‐                                  Interest:2,846,975                 Total fiscal 2016 governmental debt service requirements 31,441,578$            Governmental debt ratio of fiscal year 2016 debt service requirements  to total bondable revenues (13.0% maximum allowed by County policy) 7.0% Notes: Debt service is based upon current amortization tables for the fiscal year  indicated.  Debt prepayments are not included as debt service requirements. TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2016 1 Collier County Water and Sewer District: Total Sales Revenue 120,672,583$          Allowance for Funds Prudently Invested ‐                                  Miscellaneous Revenue 3,183,568                     Total Operating Revenue 123,856,151            Non‐Operating Revenue 1,599,527                     Gross Revenue 125,455,678            Less: Operation and Maintenance  Expense (excluding Depreciation and Amortization)84,473,620              Net Revenue Available for Debt Service (1)40,982,058$           Total Fiscal Year 2016 Debt Service on Bonds (2)6,827,648$              Net Revenue Debt Service Coverage on Bonded Debt (100% Required) ‐ (1/2)600% Other Pledged Funds:  System Development Fees (Impact Fees)13,643,674$             Special Assessment Proceeds ‐                                  Total Pledged Funds Available for Debt Service (3)54,625,732$           Total Fiscal Year 2016 Debt Service on Bonds (4)6,827,648$              Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐ (3/4)800% Total Pledged Funds Available for Debt   Service After Payment of Bonds (5)47,798,084$            Total Fiscal Year 2016 Debt Service on  Subordinated Indebtedness (6)11,513,231$            Calculated Coverage on Subordinated Indebtedness ‐ (5/6)415% Total Pledged Funds Available for System  Purposes 36,284,853$            TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2016 2 Summary Debt Statement for Fiscal Year 2016 General Governmental Debt: Collier County’s Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this self-imposed maximum. The Constitution of the State of Florida and the Florida Statutes set no legal debt limit at the local level. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County’s Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio decreased from 7.6%, for the fiscal year ended September 30, 2015, to 7.0% for the fiscal year ended September 30, 2016. The decrease in the debt ratio for FY-2016 is primarily the result of an 8.8% increase in overall bondable revenues. Ad valorem tax collection increased by 8.5% over FY-2015 due to a corresponding increase in taxable property values. In addition, impact fee collections related to governmental activities (non-enterprise activity) increased by 40.0% and Half-Cent Sales Tax collections were 5.4% greater than FY-2015. Recent debt restructurings coupled with the growth of general governmental revenues has produced several consecutive years of decreases in the general governmental debt ratio, as shown in the chart below:  0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% FY‐2011 FY‐2012 FY‐2013 FY‐2014 FY‐2015 FY‐2016 Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Governmental Debt Ratings Table: Current Ratings (as of 1/11/2017) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA- A2 A Special Obligation Bonds AA Aa2 AA+ A rating of AA is an indication by Fitch Ratings of an investment grade instrument, but one which carries a slightly higher risk than a AAA rated bond. Fitch also uses intermediate +/- modifiers for each AA category. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument with very low credit risk, but “their susceptibility to long-term risks appears somewhat greater” than a Aaa rated bond. A rating of A is an indication by Moody’s of an investment grade instrument with low credit risk but the bond has elements present that suggest a higher susceptibility to impairment over the long term than a Aa investment. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. A rating of AA is an indication by Standard and Poor’s of an investment grade instrument issued by a “quality borrower” but with slightly more risk than a AAA grade investment. A rating of A is an indication by Standard and Poor’s of an investment grade instrument but one more susceptible to adverse changes in circumstances and economic conditions than AAA or AA instruments. Standard and Poor’s also uses intermediate +/- modifiers for each category. The County’s Special Obligation Revenue Bonds are secured by a covenant to appropriate in the annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient pay debt service on the combined Special Obligation Bonds. The combined gas tax revenues are pledged for the payment of all the Gas Tax Revenue Bonds. Fiscal year 2016 gas tax revenues covered the current year debt service payments on all outstanding Gas Tax Revenue Bonds at 151%. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District’s debt are set by bond covenants. Net revenues, defined as operating revenues plus non-operating revenues less operating expenses, excluding depreciation, must cover bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover bonded debt at 125%. Net revenue coverage on bonded debt was 600% and total pledged funds coverage on bonded debt was 800% for FY-2016, up from 450% and 580%, respectively, for FY- 2015. Bonded debt coverages increased primarily due to a 6.6% increase in water and sewer sales revenues and a 27.9% decrease in annual bonded debt service. The District’s calculated coverage on subordinated debt, all in the form of State Revolving Fund Loans, increased from 405% to 415%, 4 also as a result of the factors mentioned above. The total pledged funds coverage required by the subordinated loan agreements varies between 115% and 125%, depending upon the individual loan agreement. In May of 2016, the Collier County Water and Sewer District issued the Series 2016A Water and Sewer Refunding Revenue Bonds in the amount of $48,105,000 for the purpose of refunding the District’s remaining Series 2006 Revenue Bonds. The Series 2016 bond proceeds, together with other available monies, were placed in escrow. The Series 2016 Water and Sewer Refunding Revenue Bonds have a fixed interest rate of 5.0%. The current refunding achieved a net present value savings of 18.0% on the refunded bonds. Enterprise Debt Ratings Table: Current Ratings (as of 1/11/2017) Fitch Moody’s Standard & Poor’s* Water and Sewer Revenue Bonds AAA Aa1 - *- Standard & Poor’s does not currently rate County Water and Sewer Revenue Bonds. In December of 2015, Fitch Ratings affirmed the District’s Water and Sewer Revenue Bonds at AAA. A rating of AAA is an indication by Fitch Ratings of an investment grade instrument with very little credit risk. In April of 2016, Moody’s Investors Service upgraded the District’s Water and Sewer Revenue Bonds to Aa1 from Aa2. A rating of Aa is an indication by Moody’s Investors Service of a high quality investment grade instrument, but “their susceptibility to long-term risks appears somewhat greater” than a Aaa rated bond. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. A rating of Aa1 is the highest rating within the Aa range. Water, wastewater and irrigation quality water user rates and miscellaneous revenues are used to recover system operating, maintenance and capital costs as well as pay debt service. In September of 2014 the District’s governing board approved phased rate increases. The District’s water and sewer user rates increased by 9.0%, effective 10/01/2014 with subsequent increases of 5.0% effective 10/01/2015 and 10/01/2016. Over recent years the District has operated on a pay as you go basis, avoided borrowing and maintained financial stability. The District’s continuing focus is the optimization of resources and a risk based prioritization of capital projects. 5 Collier County, Florida Clerk of the Circuit Court Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Clerk of the Circuit Court Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1  Financial Statements  Balance Sheet – Governmental Funds ........................................................................................4  Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ................................................................................................................5  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund .............................................................................................................6  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Services Fund ..................................................................................................7  Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Other Special Revenue Fund .....................................................................................8  Statement of Fiduciary Net Position – Agency Fund..................................................................9  Notes to Financial Statements ...................................................................................................10  Supplementary Information  Combining Statements of Fiduciary Net Position – All Agency Funds ...................................26  Other Reports  Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..........................................27  Management Letter ...................................................................................................................29  Independent Accountants’ Report .............................................................................................31  CliftonLarsonAllen LLP CLAconnect.com   1 INDEPENDENT AUDITORS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Clerk’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Dwight E. Brock Clerk of the Circuit Court 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Clerk as of September 30, 2016, and the respective changes in financial position and, where applicable, budgetary comparisons thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk’s financial statements. The combining statement, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The combining statement is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statement is fairly stated in all material respects in relation to the financial statements as a whole. Honorable Dwight E. Brock Clerk of the Circuit Court 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 18, 2017 on our consideration of the Clerk’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 Collier County, Florida Clerk of the Circuit Court   Balance Sheet – Governmental Funds September 30, 2016 See accompanying Notes to Financial Statements. 4 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents 1,706,233$ 1,530,273$ 4,890,203$ 8,126,709$ Accounts receivable 67,019 46,985 - 114,004 Allowance for doubtful accounts - (46,985) - (46,985) Due from other governments 8,376 40,813 19,250 68,439 Total assets 1,781,628$ 1,571,086$ 4,909,453$ 8,262,167$ Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities 574,639$ 241,675$ 83,585$ 899,899$ Due to Collier County, Florida Board of County Commissioners 200,221 - - 200,221 Due to other governments - 1,329,411 - 1,329,411 Deposits 1,006,768 - - 1,006,768 Total liabilities 1,781,628 1,571,086 83,585 3,436,299 Fund balance: Restricted - - 4,825,868 4,825,868 Total fund balance - - 4,825,868 4,825,868 Total liabilities and fund balance 1,781,628$ 1,571,086$ 4,909,453$ 8,262,167$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Other Total Court Special Governmental General Services Revenue Funds Revenues: Intergovernmental -$ 310,321$ 19,250$ 329,571$ Charges for services 3,198,283 6,263,767 1,500,055 10,962,105 Interest income 15,209 12,146 11,159 38,514 Total revenues 3,213,492 6,586,234 1,530,464 11,330,190 Expenditures: General government: Personal services 6,630,979 5,393,157 1,004,902 13,029,038 Operating 2,055,249 302,174 607,072 2,964,495 Capital outlay 345,030 - 2,423 347,453 Total expenditures 9,031,258 5,695,331 1,614,397 16,340,986 Excess (deficiency) of revenues over (under) expenditures (5,817,766) 890,903 (83,933) (5,010,796) Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,014,400 - - 6,014,400 Transfers out: Distribution of excess fees to State of Florida - (890,903) - (890,903) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (196,634) - - (196,634) Total other financing sources (uses) 5,817,766 (890,903) - 4,926,863 Net change in fund balance - - (83,933) (83,933) Fund balances – beginning of year - - 4,909,801 4,909,801 Fund balances – end of year -$ -$ 4,825,868$ 4,825,868$ Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 2,793,000$ 3,131,200$ 3,198,283$ 67,083$ Interest income 16,200 16,200 15,209 (991) Total revenues 2,809,200 3,147,400 3,213,492 66,092 Expenditures: General government: Personal services 7,129,200 6,644,000 6,630,979 13,021 Operating expenditures 1,575,100 2,094,600 2,055,249 39,351 Capital outlay 119,300 423,200 345,030 78,170 Total expenditures 8,823,600 9,161,800 9,031,258 130,542 Excess (deficiency) of revenues over (under) expenditures (6,014,400) (6,014,400) (5,817,766) 196,634 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 6,014,400 6,014,400 6,014,400 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners - - (196,634) (196,634) Total other financing sources (uses) 6,014,400 6,014,400 5,817,766 (196,634) Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Court Services Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 7 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental 219,000$ 219,000$ 310,321$ 91,321$ Charges for services 6,818,653 6,572,264 6,263,767 (308,497) Interest income 4,400 4,400 12,146 7,746 Total revenues 7,042,053 6,795,664 6,586,234 (209,430) Expenditures: General government: Personal services 6,516,853 6,290,364 5,393,157 897,207 Operating expenditures 525,200 505,300 302,174 203,126 Total expenditures 7,042,053 6,795,664 5,695,331 1,100,333 Excess of revenues over expenditures - - 890,903 890,903 Other financing (uses): Transfers out: Distribution of excess fees to State of Florida - - (890,903) 890,903 Total other financing (uses) - - (890,903) 890,903 Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Other Special Revenue Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 8 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental -$ 19,250$ 19,250$ -$ Charges for services 1,405,000 1,405,000 1,500,055 95,055 Interest income 6,900 6,900 11,159 4,259 Total revenues 1,411,900 1,431,150 1,530,464 99,314 Expenditures: General government: Personal services 1,028,600 1,136,100 1,004,902 131,198 Operating expenditures 1,524,300 1,458,550 607,072 851,478 Capital outlay 1,043,700 1,128,700 2,423 1,126,277 Total expenditures 3,596,600 3,723,350 1,614,397 2,108,953 Net change in fund balance (2,184,700) (2,292,200) (83,933) 2,208,267 Fund balance – beginning of year 2,611,593 4,479,529 4,909,801 430,272 Fund balance – end of year 426,893$ 2,187,329$ 4,825,868$ 2,638,539$ Budget Collier County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Position Agency Funds September 30, 2016 See accompanying Notes to Financial Statements. 9 Assets Cash and cash equivalents 25,203,051$ Liabilities Due to the Collier County, Florida Board of County Commissioners 328,284$ Due to other governments 765,899 Deposits 24,108,868 Total liabilities 25,203,051$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 10 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. The Clerk’s Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk’s general fund. Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. The State transitioned the Clerk in July, 2013 to be self-funded from fees and fines. Pursuant to Section 28.37, Florida Statute, any surplus revenues over expenditures will be returned to the State. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 11 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund – The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund – The court services fund is a special revenue fund established to account for court-related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund – The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office, and revenues mandated by Section 28.24(12)(e), Florida Statutes, to be used exclusively for funding court-related technology needs. This fund also accounts for revenues and expenditures pursuant to Section 28.37(5), Florida Statutes. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 12 1. Summary of Significant Accounting Policies (continued) With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk’s activities are classified as court-related and non-court-related. The Clerk’s general fund activity, which is classified as non-court-related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. Court-related operations are funded by the collection of fines, fees costs and service charges, and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds – Agency Funds – Agency funds are used to account for assets held by the Clerk in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the full accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 13 1. Summary of Significant Accounting Policies (continued) Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk’s funds, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non-spendable fund balances at the Clerk as of September 30, 2016. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 14 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Spendable fund balances are classified based on a hierarchy of the Clerk’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk’s fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk’s annual budget. The Clerk prepares and approves the budget for the Clerk s non-court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a revenue deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ended September 30, 2016, the Clerk had sufficient revenues to meet expenditures. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 15 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk’s fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 3. Cash and Cash Equivalents At September 30, 2016, the carrying value of the Clerk’s cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A 7,600$ N/A Demand deposits N/A 33,322,160 N/A Total cash and cash equivalents 33,329,760$ The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each fund type’s portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 16 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2016 are reported as $8,126,709 and $25,203,051 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2016, the Clerk’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Clerk’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter-local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk’s funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 17 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $15,209 is reported in the general fund for the year ended September 30, 2016, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2015 Additions Deductions out 2016 Capital assets depreciated: Machinery and equipment 7,573,417$ 347,453$ (651,361)$ (6,173)$ 7,263,336$ Less accumulated depreciation (5,587,369) (655,461) 651,359 6,173 (5,585,298) Total capital assets depreciated 1,986,048 (308,008) (2) - 1,678,038 Total capital assets, net 1,986,048$ (308,008)$ (2)$ -$ 1,678,038$ Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 18 6. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2015 Additions Deletions 2016 Accrued compensated absences 1,828,399$ 887,990$ (913,778)$ 1,802,611$ Of these liabilities, $901,306 is expected to be paid during the fiscal year ending September 30, 2017. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State- administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 19 7. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 20 7. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% 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% determined by dividing the sum of the pre- July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 21 7. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 22 7. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk’s contributions made to the plans during the years ended September 30, 2016, 2015, and 2014 were $750,024, $754,154, and $738,661, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the Collier County comprehensive annual financial report or County-wide financial statements. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 23 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $6,014,400. The Supervisor of Elections provided funding in the amount of a $46,400 fee for financial services performed by the Clerk. At September 30, 2016, the Clerk had a payable due to the Board of $528,505, comprised as follows: Distribution of excess fees 196,634$ Amounts due for various services 3,587 Agency funds due 328,284 Total due to Board of County Commissioners 528,505$ 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2016, the Clerk was charged $2,424,957 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 24 10. Other Postemployment Healthcare Benefits (OPEB) Plan The Clerk follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for its post-employment benefits. Plan Description The Clerk participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report; however, additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida. Under Florida statutes, retirees originally hired prior to July 1, 2011, are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) are also eligible to participate in the medical plan. The Clerk provides no subsidy to the retiree, or their dependents, for group health care. Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County’s self-insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Clerk had a net OPEB obligation of $56,221 as of September 30, 2016. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed on October 1, 2015. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. Collier County, Florida Clerk of the Circuit Court Notes to Financial Statements September 30, 2016 25 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a “party in interest” in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2016, the Clerk was involved in approximately 104,800 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in approximately 250 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are approximately 11 actions for foreclosure of property in which the Clerk has been a named defendant. The Clerk was involved in litigation of a Florida Statute related to ownership of interest earned on monies paid into the registry of the court and an inverse condemnation allegation asserting that the Clerk has improperly retained interest accruing on funds in the court’s registry. Two other cases with similar claims were filed in Florida. Both cases found against the respective plaintiffs. The plaintiffs filed a motion for the Florida Supreme Court to rule on the cases. The court denied the motion. The plaintiffs filed to have the U.S. Supreme Court hear the case. The Supreme Court chose not to hear the case and our case settled just after the close of the fiscal year. The Clerk was involved in a litigation regarding fees for public records requests. There is currently a motion for recovery of attorney’s fees in this case. The Clerk is contesting this claim. The Clerk was involved in litigation against the County Manager and Purchasing Director joined by the Board of County Commissioners. This case has settled. There is currently a motion for recovery of costs in this case. These costs are being contested by the Clerk. The Clerk submitted a demand notice for return of payment from a vendor. This matter is continuing and in negotiations for settlement. The Clerk made payments pursuant to a garnishment order to a vendor. The BOCC has an intervention case against the Clerk, stating the Clerk had no authority to make these payments. The BOCC agreed to drop its intervention and authorized the Clerk to settle the claims. In the opinion of the Clerk of the Circuit Court and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk of the Circuit Court. Collier County, Florida Clerk of the Circuit Court Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2016 26 Jury and Clerk’s Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents 5,126,814$ 20,070,784$ 5,453$ 25,203,051$ Liabilities Due to Collier County, Florida Board of County Commissioners 328,284$ -$ -$ 328,284$ Due to other governments 760,446 - 5,453 765,899 Deposits 4,038,084 20,070,784 - 24,108,868 Total liabilities 5,126,814$ 20,070,784$ 5,453$ 25,203,051$ CliftonLarsonAllen LLP CLAconnect.com   27 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements, and have issued our report thereon dated January 18, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Dwight E. Brock Clerk of the Circuit Court 28 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 CliftonLarsonAllen LLP CLAconnect.com   29 MANAGEMENT LETTER Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court (Clerk), as of and for the fiscal year ended September 30, 2016 and have issued our report thereon dated January 18, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 18, 2017, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Dwight E. Brock Clerk of the Circuit Court 30 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 CliftonLarsonAllen LLP CLAconnect.com 31 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Dwight E. Brock Clerk of the Circuit Court Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court’s (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of court performance standards and budgets, during the year ended September 30, 2016. Management is responsible for the Clerk’s compliance with those requirements. Our responsibility is to express an opinion on the Clerk’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk’s compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 18, 2017 THIS PAGE INTENTIONALLY LEFT BLANK    Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – General Fund ......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ...........................................................................5 Notes to Financial Statements .......................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................21 Management Letter ........................................................................................................................25 Independent Accountants’ Report ..................................................................................................28 CliftonLarsonAllen LLP CLAconnect.com  1 INDEPENDENT AUDITORS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Honorable Abe Skinner Property Appraiser 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2016, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report on our consideration of the Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 12, 2017 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2016 See accompanying Notes to Financial Statements. 3 Assets Cash and cash equivalents 839,955$ Total assets 839,955$ Liabilities and fund balance Liabilities: Accounts payable and accrued expenses 57,300$ Due to Collier County, Florida Board of County Commissioners 706,795 Due to other taxing districts 75,860 Total liabilities 839,955 Fund balance - Total liabilities and fund balance 839,955$     Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 4 Revenues: Commissions and fees 6,777,902$ Miscellaneous 866,136 Interest 5,832 Total revenues 7,649,870 Expenditures: General government: Personal services 5,349,372 Operating 1,508,639 Capital outlay 9,204 Total expenditures 6,867,215 Excess of revenues over expenditures 782,655 Other financing uses: Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (706,795) Distribution of excess fees and commissions to other governmental agencies (75,860) Total other financing uses (782,655) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year -$   Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 6,777,902$ 6,777,902$ 6,777,902$ -$ Interest Revenue - - 5,832 5,832 Miscellaneous - - 866,136 866,136 Total revenues 6,777,902 6,777,902 7,649,870 871,968 Expenditures: General government: Personal services 5,271,569 5,271,569 5,349,372 (77,803) Operating 1,481,333 1,481,333 1,508,639 (27,306) Capital outlay 25,000 25,000 9,204 15,796 Total expenditures 6,777,902 6,777,902 6,867,215 (89,313) Excess of revenues over expenditures - - 782,655 782,655 Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (706,795) (706,795) Distribution of excess commissions and fees to other governmental agencies - - (75,860) (75,860) Total other financing uses - - (782,655) (782,655) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 6 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser’s total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser’s office. The Property Appraiser’s financial statements include only the funds of the Property Appraiser’s office. There are no separate legal entities (component units) for which the Property Appraiser is considered to be financially accountable. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 7 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Property Appraiser and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser’s revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt; earlier if the “susceptible to accrual” criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 8 1. Summary of Significant Accounting Policies (continued) Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use-transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser’s annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser’s total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 10 2. Budgetary Process (continued) During the year, the Property Appraiser exceeded the budgeted amount for operating expenditures mainly as a result of other contractual services which were not expected at the time of the budget preparation. These budget overages were partially offset by budget savings in the personnel services category. 3. Cash At September 30, 2016, the carrying value of the Property Appraiser’s cash was as follows: Carrying Value Cash on hand 125$ Demand deposits 839,830 Total cash 839,955$ Type Custodial Credit Risk At September 30, 2016, the Property Appraiser’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 11 3. Cash (continued) Credit Risk The Property Appraiser’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida.   Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 12 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2016: October 1, September 30, 2015 Additions Deductions 2016 Improvements other than buildings 15,332$ -$ -$ 15,332$ Machinery and equipment 1,682,110 9,204 141,641 1,549,673 Total capital assets 1,697,442 9,204 141,641 1,565,005 Less accumulated depreciation (1,368,063) (98,658) (141,641) (1,325,080) Total capital assets, net 329,379$ (89,454)$ -$ 239,925$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2015 Increase Decrease 2016 Accrued compensated absences 330,282$ 342,551$ 318,700$ 354,133$ Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 13 5. Long-Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2017, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 14 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 15 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 17 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 18 6. Pension Plans (continued) Contributions The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser’s employer contributions to the plan for the years ended September 30, 2016, 2015 and 2014, were $451,635, $377,140, and $315,882, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Property Appraiser follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description  The Property Appraiser participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report, however additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida (the County).  Under Florida Statutes, retirees originally hired prior to July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) are also eligible to participate in the medical plan. In addition, the Property Appraiser provides no subsidy to the retiree, or their dependents, for group health care. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 19 7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued) Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County’s self insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Property Appraiser had a net OPEB obligation of $50,327 as of September 30, 2016. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2013. The notes to the financial statements of the County disclose additional information regarding the other post employment benefit plan as a whole. 8. Related-Party Transactions During the fiscal year ended September 30, 2016, the Board paid fees to the Property Appraiser that amounted to $6,120,340. At September 30, 2016, the Property Appraiser had a payable due to the Board of $706,795, respectively, comprised as follows: Distribution of excess commissions and fees 706,795$ 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County’s self-insurance program. During the year ended September 30, 2016, the Property Appraiser was charged $1,044,773 by the County for participation in the risk management program. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2016 20 9. Risk Management (continued) The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. CliftonLarsonAllen LLP CLAconnect.com   21 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County,  Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s financial statements, and have issued our report thereon dated January 12, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify a certain deficiency in internal control, described below as item 2016-002, that we consider to be a material weakness. Honorable Abe Skinner Property Appraiser 22 2016-002 – Audit Adjustment Criteria The Property Appraiser is responsible for ensuring the accuracy of the financial statements. Condition A material audit adjustment was required to correct revenue, expenditures, and fund balance. Cause An erroneous entry was recorded to net revenue and expenditures for the amount that the Property Appraiser was over budget for the year. Effect Revenue and expenditures were understated. Recommendation We recommend that management and the Property Appraiser review the financial information to ensure the no journal entries are prepared that net revenue and expenditure items. View of Responsible Officials and Planned Corrective Actions Management agrees that the entry needed to be corrected. Management has put processes into place to ensure that all entries are reviewed for accuracy and approved. Honorable Abe Skinner Property Appraiser 23 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which is described below as item 2016-001. 2016-001 – Budget Criteria Florida Statutes 195.087 (1)(a) requires the Property Appraiser to submit a budget for operation of the Property Appraiser’s office for the fiscal year to the Florida Department of Revenue (DOR) for review and approval. Total expenditures should not exceed the total appropriations as approved by DOR. Condition The Property Appraiser’s total expenditures exceeded its final approved total appropriations. Cause A budget amendment was not submitted prior to the expenditure of additional amounts for capital outlay. Effect The Property Appraiser expended $89,313 in excess of final approved appropriations. Recommendation We recommend that management and the Property Appraiser periodically review budget to actual reports to determine if the Property Appraiser is adhering to its adopted budget. If circumstances arise that will cause the Property Appraiser to incur total expenditures in excess of approved total appropriations, the Property Appraiser should first submit a budget amendment to the DOR. View of Responsible Officials and Planned Corrective Actions Management encountered some unexpected expenses, such as increased insurance and a billing form FRS did not file a budget amendment. Management has added the budget to the accounting software to allow budget to actual to be monitored in a timely fashion. Property Appraiser’s Response to Findings The Property Appraiser’s responses to the findings identified in our audit are described previously. The Property Appraiser’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Honorable Abe Skinner Property Appraiser 24 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 12, 2017 CliftonLarsonAllen LLP CLAconnect.com 25 MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2016, and have issued our report thereon dated January 12, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reports We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated January 12, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of significant finding and recommendations made in the preceding financial audit report are listed in Appendix A. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to financial statements. Honorable Abe Skinner Property Appraiser   26 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with out audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 12, 2017 COLLIER COUNTY, FLORIDA PROPERTY APPRAISER MANAGEMENT LETTER SEPTEMBER 30, 2016     27 APPENDIX A – PRIOR YEAR FINDINGS AND RECOMMENDATIONS Cleared Partially Cleared Not Cleared Compliance X Current Year Status Prior Year Findings 2015-001 Budget Current year comment 2016-001 Budget CliftonLarsonAllen LLP CLAconnect.com 28 INDEPENDENT ACCOUNTANTS’ REPORT   Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County, Florida Property Appraiser’s (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Property Appraiser’s compliance with those requirements. Our responsibility is to express an opinion on the Property Appraiser’s compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Property Appraiser’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser’s compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.   CliftonLarsonAllen LLP Naples, Florida January 12, 2017  Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget (Non-GAAP) and Actual – General Fund ........................................................................6 Statement of Net Position – Internal Service Fund ..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund ....................................................................................................................8 Statement of Cash Flows – Internal Service Fund ...........................................................................9 Statement of Fiduciary Net Position – Agency Funds ...................................................................10 Notes to Financial Statements ........................................................................................................11 Required Supplementary Information Schedule of Funding Progress for the Retiree Health Plan............................................................35 Combining Financial Information Combining Statement of Fiduciary Net Position – Agency Funds ................................................36 Combining Statement of Changes in Assets and Liabilities – Agency Funds ...............................37 Collier County, Florida Sheriff Financial Statements and Other Reports Year Ended September 30, 2016 Contents (continued) Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards....................................................................38 Management Letter ........................................................................................................................40 Schedule of Findings and Responses .............................................................................................42 Independent Accountants’ Report ..................................................................................................44 Independent Accountants’ Report on Applying Agreed-Upon Procedures ...................................45 THIS PAGE INTENTIONALLY LEFT BLANK    1 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Sheriff’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Kevin Rambosk Sheriff   2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Sheriff as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Funding Progress for the Retiree Health Plan, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Honorable Kevin Rambosk Sheriff   3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff’s financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2016 on our consideration of the Sheriff’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriff’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 Collier County, Florida Sheriff Balance Sheet – Governmental Funds September 30, 2016 See accompanying Notes to Financial Statements. 4 Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Welfare SharingFunds TotalAssetsCash and cash equivalents 7,920,755$ 424,490$ 1,558,640$ 879,204$ –$ 10,783,089$ Accounts receivable 42,862 – – – – 42,862 Due from other funds 3,650,206 – 25,000 – – 3,675,206 Due from other governments 25,718 76,882 – – – 102,600 Due from Collier County, Florida Board ofCounty Commissioners 8,130 88,513 – – 84,924 181,567 Total assets 11,647,671$ 589,885$ 1,583,640$ 879,204$ 84,924$ 14,785,324$ Liabilities and fund balancesLiabilities:Accounts payable 2,430,915$ 27,510$ 6,242$ 5,558$ 43,363$ 2,513,588$ Accrued expenses 9,179,329 – – – – 9,179,329 Due to other funds 2,000 – 32,518 10,619 41,561 86,698 Due to Collier County, Florida Board ofCounty Commissioners 35,427 – – – – 35,427 Unearned revenue– 39,414 – – – 39,414 Total liabilities 11,647,671 66,924 38,760 16,177 84,924 11,854,456 Fund balances:Restricted– 522,961 1,544,880 863,027 – 2,930,868 Total liabilities and fund balances 11,647,671$ 589,885$ 1,583,640$ 879,204$ 84,924$ 14,785,324$   Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Grant Other Non-MajorSpecial Prisoner Federal Equitable Special RevenueGeneral Revenue Welfare SharingFunds TotalRevenues:Grant revenue–$ 1,225,477$ –$ –$ –$ 1,225,477$ Charges for services 1,426,310 – 863,025 – – 2,289,335 Interest income– 1,483 3,756 2,157 – 7,396 Other revenue– – – 82,486 – 82,486 Total revenues 1,426,310 1,226,960 866,781 84,643 – 3,604,694Expenditures:General government:Personal services 3,837,585 – – – – 3,837,585 Operating expenditures 105,749 – – – – 105,749 Capital outlay24,969 – – – – 24,969 Public safety:Personal services 119,108,879 639,864 228,444 – 941,622 120,918,809 Operating expenditures 21,903,054 196,904 141,052 81,893 1,504,975 23,827,878 Capital outlay9,274,962 86,188 – – 408,161 9,769,311 Debt Service - principal 560,283 – – – – 560,283 Debt Service - interest 57,429 – – – – 57,429 Total expenditures 154,872,910 922,956 369,496 81,893 2,854,758 159,102,013Excess (deficiency) of revenues over (under) expenditures (153,446,600) 304,004 497,285 2,750 (2,854,758) (155,497,319)Other financing sources (uses):Transfers in:Collier County, Florida Board of County Commissioners appropriations 152,607,400 – – – – 152,607,400 Collier County, Florida Board of County Commissioners 867,135 – – – 2,854,758 3,721,893 Transfers out:Distribution of excess appropriations to Collier County,Florida Board of County Commissioners(27,935) – – – – (27,935) Total other financing sources 153,446,600 – – – 2,854,758 156,301,358Net change in fund balances– 304,004 497,285 2,750 – 804,039 Fund balances – beginning of year– 218,957 1,047,595 860,277 – 2,126,829 Fund balances – end of year–$ 522,961$ 1,544,880$ 863,027$ –$ 2,930,868$ Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balances – Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 6 Variance With Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services –$ 1,305,000$ 1,426,310$ 121,310$ Expenditures: General government: Personal services 3,689,800 3,689,800 3,837,585 (147,785) Operating expenditures 167,400 167,400 105,749 61,651 Capital outlay – – 24,969 (24,969) Public safety: Personal services 122,420,600 123,653,600 119,108,878 4,544,722 Operating expenditures 23,612,700 23,684,700 21,903,054 1,781,646 Capital outlay 2,716,900 2,716,900 9,025,540 (6,308,640) Total expenditures 152,607,400 153,912,400 154,005,775 (93,375) Excess of expenditures over revenues (152,607,400) (152,607,400) (152,579,465) 27,935 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 152,607,400 152,607,400 152,607,400 – Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners – – (27,935) (27,935) Total other financing sources 152,607,400 152,607,400 152,579,465 (27,935) Net change in fund balance – – – – Fund balance – beginning of year – – – – Fund balance – end of year –$ –$ –$ –$ Collier County, Florida Sheriff Statement of Net Position – Internal Service Fund September 30, 2016 See accompanying Notes to Financial Statements. 7 Assets Cash and cash equivalents 3,795,984$ Investments 7,887,137 Due from other funds 2,000 Interest receivable 11,531 Total assets 11,696,652 Liabilities: Self insurance claims payable 2,379,000 Due to other funds 3,554,292 Net other postemployment benefit obligation 2,612,863 Total liabilities 8,546,155 Net position: Unrestricted 3,150,497 Total net position 3,150,497$ Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 8 Operating revenues: 20,046,310$ Operating expenses: 21,035,931 981,425 Net other postemployment benefit expense 444,764 263,656 22,725,776 (2,679,466) Nonoperating revenues: 69,114 Realized loss on sale of investments (76,811) Increase in fair value of investments 45,191 Total nonoperating revenues 37,494 (2,641,972) Net position – beginning of year 5,792,469 Net position – end of year 3,150,497$ Interest income, net of management fees Change in net position Reinsurance premiums Administrative and other expenses Total operating expenses Operating loss Charges for services Claims and claims expenses Collier County, Florida Sheriff Statement of Cash Flows – Internal Service Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 9 Operating activities (20,600,363)$ (981,425) (263,656) 22,700,000 900,602 1,755,158 Investing activities 57,583 Purchase of securities (9,240,161) Proceeds from sales of securities 9,050,000 (132,578) 1,622,580 Cash, cash equivalents, and investments – beginning of year 2,173,404 Cash, cash equivalents, and investments – end of year 3,795,984$ Reconciliation of operating loss to net cash (2,679,466)$ 45,012 3,735,848 Increase in net other postemployment benefit obligation 444,764 209,000 1,755,158$ Adjustments to reconcile operating loss to Operating loss Cash payments for reinsurance premiums Cash payments for claims and claims related services Cash payments for administrative services and supplies Cash received from other funds for services provided by operating activities Net cash provided by operating activities Cash received from retirees for services Net increase in cash, cash equivalents, and investments Interest earnings, net of management fees Net cash used by investing activities Net cash provided by operating activities net cash used by operating activities: Decrease in other receivables Increase in due to/from other funds Increase in self-insurance claims payable Collier County, Florida Sheriff Statement of Fiduciary Net Position – Agency Funds September 30, 2016 See accompanying Notes to Financial Statements. 10 Cash and cash equivalents 628,987$ Due from individuals and businesses 1,618 630,605$ Due to other funds 70,034$ Due to Collier County, Florida 25,703 Due to individuals and businesses 534,868 630,605$ Total liabilities Liabilities Board of County Commissioners Assets Total assets Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 11 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff’s budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County’s corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and agency funds of the Sheriff’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including a management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2016 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 12 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff’s funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the “susceptible to accrual” criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 13 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has three major governmental funds: General Fund – The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund – This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. Prisoner Welfare Fund – This fund is used to account for the proceeds of inmate related services and is legally restricted to specified purposes, which benefit the inmate population. Federal Equitable Sharing Fund – The revenue from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. The Sheriff also has the following non-major funds: Reported as Other Non-major Special Revenue Funds Confiscated Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 14 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Civil Citation – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911 – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training – Criminal Justice Education and Training – This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Fiduciary Funds – Agency Funds – These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Proprietary Fund Internal Service Fund – This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost-reimbursement basis. Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 15 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida Prime, an investment pool administered by the State Board of Administration (“SBA”), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff’s position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2016, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 27.6% of Florida PRIME’s portfolio at September 30, 2016. In accordance with GASB 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose liquidity fees or redemption gates in the notes to the financial statements. With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory council. The Trustees shall convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 16 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments (continued) With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2016, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 17 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non-spendable fund balances as of September 30, 2016. Spendable fund balances are classified based on a hierarchy of the Sheriff’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Sheriff’s fund balances for the grant special revenue fund, prisoner welfare fund and federal equitable sharing fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund, Prisoner Welfare Fund and the Federal Equitable Sharing Fund are constrained for specific purposes that are externally imposed by grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriff’s annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from capital leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare and federal equitable sharing funds do not have legally adopted budgets. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 18 2. Budgetary Process (continued) The differences between the budgetary basis and the GAAP basis for the General Fund budget as discuss above are as follows: Total expenditures - budgetary basis 154,005,775$ Expenditures not budgeted: Expenditures for multi-period projects that are not budgeted 867,135 Total expenditure - GAAP basis 154,872,910$ Total other financing sources (uses) - budgetary basis 152,579,465$ Transfers in from Collier County Florida Board of County Commissioners (non-appropriations)867,135 Total other financing sources (uses) - GAAP basis 153,446,600$ This space intentionally left blank Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 19 3. Cash, Cash Equivalents and Investments At September 30, 2016, the carrying value of the Sheriff’s cash, cash equivalents and investments was as follows: Type Maturity Carrying Value Credit Rating * Cash on hand N/A 18,529$ N/A Demand deposits N/A 14,339,347 N/A Money Market N/A 103,887 Not rated Local government surplus funds trust fund: Florida Prime N/A 746,297 AAAm Total cash and cash equivalents 15,208,060$ Treasury Note 2/2/2017 899,001 AA+ Treasury Note 3/2/2017 998,480 AA+ Treasury Note 4/27/2017 1,196,808 AA+ Treasury Note 8/17/2017 895,608 AA+ Federal Home Loan Mortgage Corp. 10/18/2016 500,990 AA+ Federal Home Loan Mortgage Corp. 1/11/2017 1,698,725 AA+ Federal Home Loan Mortgage Corp. 7/18/2017 497,920 AA+ Federal National Mortgage Association 12/14/2016 200,895 AA+ Federal Home Loan Bank 2/21/2017 998,710 AA+ Total Investments 7,887,137 Total cash, cash equivalents, and investments 23,095,197$ * Standard & Poor's   The total cash, cash equivalent and investments balances at September 30, 2016, were as follows: General fund 7,920,755$ Grant special revenue fund 424,490 Prisoner welfare fund 1,558,640 Federal equitable sharing fund 879,204 Internal service fund 11,683,121 Agency funds 628,987 Total cash, cash equivalents, and investments 23,095,197$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 20 3. Cash, Cash Equivalents and Investments (continued) Custodial Credit Risk At September 30, 2016, the Sheriff’s demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Multiple Employers Trust (FSMET) and are administered by Hunt Insurance Group. FMSET’s policy required execution of a third-party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff’s name. Credit Risk The Sheriff’s policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff’s Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2016, the Sheriff had $746,297 invested in Florida Prime. Florida Prime is rated “AAAm” by Standard & Poor’s Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 21 3. Cash, Cash Equivalents and Investments (continued) Concentration of Credit Risk The Sheriff’s investments are included in the internal service fund which is used to account for the Sheriff’s self-insured health plan. The Florida Sheriff’s Multiple Employer Trust (FSMET) administers the investments for the Sheriff’s self-insured health plan and has an investment policy that allows for the investment of funds that exceed one month’s required funding by more than $100,000. Investments can be made in government securities. The Sheriff’s portfolio managed by FSMET includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits that are not managed by FSMET and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff’s portfolio invested in FSMET is detailed as follows, at September 30, 2016: % of Portfolio Federal Home Loan Mortgage Corp. 34% Federal National Mortgage Association 3% Federal Home Loan Bank 12%     Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2016: U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 22 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2015 Additions Reclassifications 2016 Governmental Activities Capital assets not depreciated: Construction in Progress 1,370,437$ 1,099,145$ (193,260)$ 2,276,323$ Total capital assets not depreciated 1,370,437 1,099,145 (193,260) 2,276,323 Capital assets depreciated : Machinery and equipment 70,929,578 9,916,398 (5,966,230) 74,879,746$ Total capital assets depreciated 70,929,578 9,916,398 (5,966,230) 74,879,746 Less accumulated depreciation: Machinery and equipment (58,894,794) (6,585,526) 5,911,178 (59,569,142)$ Total Accumulated depreciation (58,894,794) (6,585,526) 5,911,178 (59,569,142) Total Depreciable capital assets, net 12,034,784 3,330,872 (55,052) 15,310,604 Total Governmental Activities capital assets, net 13,405,221$ 4,430,017$ (248,312)$ 17,586,927$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 23 5. Long-Term Liabilities The Sheriff has entered into certain capital lease agreements under which the related equipment will become the property of the Sheriff’s Office when all terms of the lease agreements are met. Stated Interest Rate Present Value of Remaining Payments as of September 30, 2016 Governmental fund activities: Vehicles and related equipment 4.50% 545,766$ Telephone system 4.82% 238,107 Total Capital Lease Obligations 783,873$ Equipment and related accumulated depreciation under capital leases are as follows: Governmental Activities Equipment 1,926,980$ Less: accumulated depreciated (767,721) Net Value 1,159,259$ As of September 30, 2016, capital lease annual amortization are as follows: Year ending September 30: Governmental Activities 2017 633,509$ 2018 63,185 2019 63,185 2020 63,185 2021 10,531 Total minimum lease payments 833,595 Less: amount representing interest (49,722) Present value of remaining payments 783,873$ Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 24 5. Long-Term Liabilities (continued) The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2015 Additions Reclassifications 2016 Capital lease agreements 1,344,157$ -$ (560,284)$ 783,873$ Compensated Absences 12,443,462 6,174,965 (2,169,131) 16,449,296 Total 13,787,619$ 6,174,965$ (2,729,415)$ 17,233,169$ Of these liabilities, approximately $1,160,000 is expected to be paid during the fiscal year ending September 30, 2016. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2016, were as follows: Due From Due To General fund 3,650,206$ 2,000$ Prisoner welfare fund 25,000 32,518 Federal equitable sharing fund - 10,619 Other non-major special revenue funds - 41,561 Internal service fund 2,000 3,554,292 Agency funds - 36,216 Total 3,677,206$ 3,677,206$ Interfund receivables and payables generally represent recurring activities between funds. 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $156,329,293. At September 30, 2016, the Sheriff had a payable due to the Board of $61,130 comprised of the following: General fund: Distribution of excess appropriations $ 27,935 Distribution of interest collected 6,787 Miscellaneous payables 705 Agency funds 25,703 Total $ 61,130 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 25 7. Related-Party Transactions (continued) Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $181,567 at September 30, 2016. Agency Funds The Sheriff’s Office administers funds for the Collier County Sheriff’s Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Sheriff are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 26 8. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 27 8. Pension Plans (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in- line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 28 8. Pension Plans (continued) Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government- wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 29 8. Pension Plans (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff’s contributions made to the plans during the years ended September 30, 2016, 2015, and 2014 were $15,023,011, $13,341,786, and $12,767,042, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 30 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). Plan Description The Sheriff administers a single-employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for of retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff’s employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff’s health insurance plan at the same group rate as for active employees. At September 30, 2016, the date of the latest actuarial valuation, the Sheriff’s plan participation consisted of: OPEB plan participants 1,105 Retirees receiving benefits 106 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay as you go basis. For the year ended September 30, 2016, the Sheriff contributed $818,021 to the OPEB Plan. The annual other postemployment benefit cost for the plan is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed as of October 1, 2016. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016 31 9. Other Postemployment Benefits (continued) Annual OPEB Cost and Net OPEB Obligation The annual cost (expense) of the Sheriff’s OPEB Plan is calculated based on the ARC. The following table shows the components of the Sheriff’s annual OPEB Plan cost for the year ended September 30, 2016, the amount actually contributed, and the changes in the net OPEB Plan obligation. Annual required contribution $ 1,305,135 Interest on net OPEB obligation 65,043 Adjustment to annual required contribution (107,393) Annual OPEB cost (expense) 1,262,785 Contributions made (818,021) Increase in net OPEB obligation (asset) 444,764 Net OPEB obligation – beginning of year 2,168,099 Net OPEB obligation (asset) – end year $ 2,612,863 No trust or agency fund has been established for the plan. The Sheriff’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended September 30, 2016 and the preceding years were as follows: Percentage of Annual Annual OPEB Net OPEB Fiscal Year Ended OPEB Cost Cost Contributed Obligation September 30, 2016 September 30, 2015 September 30, 2014 $ 1,262,785 $ 1,229,237 $ 1,112,653 64% 60% 70% $ 2,612,863 $ 2,168,099 $ 1,681,238 Funded Status and Funding Progress As of the September 30, 2016 actuarial valuation date, the OPEB Plan was 0% funded, the actuarial accrued liability for benefits was $15,684,350, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $15,684,350. The covered payroll (annual payroll of active employees covered by the OPEB Plan) was approximately $122.9 million, and the ratio of the UAAL to the covered payroll was 12.8%. Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016  32 9. Other Post Employment Benefits (continued) Funded Status and Funding Progress (continued) The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits. Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Projected Unit Credit Method Amortization method Closed Amortization period 30 years, Level Dollar Amount The actuarial assumptions are: Investment rate of return 3% Discount rate 3% Healthcare cost trend rate 8% for the 2016 fiscal year grading to an ultimate rate of 5% for the 2023 fiscal year Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016  33 10. Self-Insurance Program The Sheriff’s Office participates in the Statewide Florida Sheriff’s Self-Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers’ compensation coverage. The Florida Sheriffs Workers’ Compensation Self Insurance Program is a self-insurance program providing coverage for the first $500,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $500,000 (or $350,000 where applicable) up to $10,000,000. Reinsurance coverage up to $20,000,000 any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third-party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self-funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY15 there was one covered member who had a deductible amount of $450,000 because of a history of high claims. Specific claim excess coverage for this individual was for claims exceeding $450,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff’s Office uses a Third-Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2016 and 2015 is as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2015 $ 2,078,000 $ 15,167,000 $ (19,415,000) $ 2,170,000 2016 $ 2,170,000 $ 16,473,000 $ (21,022,000) $ 2,379,000 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2016  34 11. Claims and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. Collier County, Florida Sheriff Schedule of Funding Progress for the Retiree Health Plan September 30, 2016 35 `Actuarial Accrued UAAL as a Actuarial Actuarial Liability (AAL) – Percentage of Valuation Value of Projected Unfunded Funded Covered Covered Date Assets Unit Credit AAL Ratio Payroll Payroll 10/1/2014 –$ 14,207,209$ 14,207,209$ 0.0% 112,902,749$ 12.6% 10/1/2015 –$ 15,133,114$ 15,133,114$ 0.0% 117,563,839$ 12.9% 10/1/2016 –$ 15,685,350$ 15,685,350$ 0.0% 122,939,572$ 12.8% Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position – Agency Funds September 30, 2016 36 TotalCivil Evidence Flexible Inmate Agency Trust Trust Spending Trust Explorers FundsCash and cash equivalents 37,822$ 230,157$ 212,096$ 132,407$ 16,505$ 628,987$ Due from individuals and businesses – – – 1,618 – 1,618 37,822$ 230,157$ 212,096$ 134,025$ 16,505$ 630,605$ Due to other funds –$ –$ –$ 36,216$ –$ 36,216$ Due to Collier County, Florida Board16,150 – – 9,553 – 25,703 Due to individuals and businesses 21,672 230,157 212,096 88,256 16,505 568,686 37,822$ 230,157$ 212,096$ 134,025$ 16,505$ 630,605$ Total liabilitiesAssetsLiabilitiesTotal assetsof County Commissioners Collier County, Florida Sheriff Combining Statement of Changes in Assets and Liabilities – Agency Funds Year Ended September 30, 2016 37 October 1, September 30, 2015 Additions Deletions 2016AssetsCash and cash equivalents 566,302$ 628,987$ (566,302)$ 628,987$ Due from individuals and businesses 14,388 1,618 (14,388) 1,618 Total assets 580,690$ 630,605$ (580,690)$ 630,605$ LiabilitiesDue to other funds 36,232$ 36,216$ (36,232)$ 36,216$ Due to Collier County, Florida Boardof County Commissioners 28,991 25,703 (28,991) 25,703 Due to individuals and businesses 515,467 568,686 (515,467) 568,686 Total liabilities 580,690$ 630,605$ (580,690)$ 630,605$ CliftonLarsonAllen LLP CLAconnect.com   38 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements, and have issued our report thereon dated December 20, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff’s internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriff’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Kevin Rambosk Sheriff 39 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 CliftonLarsonAllen LLP CLAconnect.com   40 MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2016 and have issued our report thereon dated December 20, 2016. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports and Schedule We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Schedule of Findings and Responses; and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated December 20, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Kevin Rambosk Sheriff 41 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we made recommendations as listed in the following schedule of findings and responses. The Sheriff’s responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The Sheriff’s responses were not subjected to the auditing procedures applied in the audit and, accordingly, we express no opinion on the responses. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 Collier County, Florida Sheriff Schedule of Findings and Responses September 30, 2016 42 Current Year Findings and Recommendations MLC 2016-001 User Access Rights Criteria: Employee access rights to the system applications should be restricted to not include conflicting duties. Additionally, terminated employees should be removed from the system in a timely manner. Condition: During the audit, CLA noted that fiscal payroll clerk user rights were not properly restricted for adding new employees. Additionally, two terminated employees had access rights that were not disabled/deleted timely. Effect: There is an increased risk that access and user rights are inappropriately granted and are not appropriately restricted which could cause a lack of segregation of duties within the control environment of the Sheriff. Additionally, the IT department does not have a process in place to ensure a terminated employee’s rights are disabled/deleted in a timely manner. This results in increased security risk and to network vulnerabilities. Recommendation: The IT department should ensure that individuals are not granted conflicted access to the system and are appropriately restricted. Additionally, the IT department should develop a process to ensure terminated employees are removed from access to the system in a timely manner. Management’s Response: User rights for fiscal payroll clerks have been reviewed and modified so new employees can no longer be added. Access rights to the finance system are periodically updated by the IT department to disable/delete terminated employees. It should be noted that when any employee is terminated from the agency, their network login (primary login for access to any agency programs) is disabled by the IT department upon the member’s termination. Members cannot access any agency programs unless they are using any agency issued desktop or laptop computer. While the finance program access for the two noted employees was not immediately disabled, their network login was disabled upon their termination. This would have made it extremely difficult for either of them to access the finance program as they would have had to have access to an agency computer which had the finance program installed, and which another member was logged on to the network. Measures have been put in place to disable/delete a member’s access to finance programs when their employment has been terminated. Collier County, Florida Sheriff Schedule of Findings and Responses September 30, 2016 43 MLC 2016-002 E911 Expenditures Criteria: Florida Statutes Section 365.172 defines allowable expenditures for E911 funding. Condition: During the audit, CLA noted unallowable expenditures consisting of $12,361 of promotional items, $703 of auto insurance and $963 liability insurance that were paid from E911 funds. Effect: The Sheriff did not comply with the restrictions on the use of E911 funding and monitoring procedures over the use of E911 funds and did not identify the issue. Recommendation: Sheriff personnel should become familiar with and develop a clear understanding of the allowable expenditures under E911 funding and develop tools to assist in the effective monitoring of restrictions under this funding. Management’s Response: Measures have been put in place to thoroughly review any expenditures under E911 funding to ensure they are appropriate and in accordance with Florida Statute 365.172. CliftonLarsonAllen LLP CLAconnect.com   44 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff’s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Sheriff's compliance with those requirements. Our responsibility is to express an opinion on the Sheriff's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriff’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriff’s compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 CliftonLarsonAllen LLP CLAconnect.com   45 INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below, which were agreed to by management of the Collier County, Florida Sheriff (Sheriff), solely to assist you in evaluating the procedures and policies as defined by the Sheriff over its investigative funds for the year ended September 30, 2016. The Sheriff’s management is responsible for the Sheriff’s compliance with those procedures and policies. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the party specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are summarized as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2016 (the population sampled from included transactions from October 1, 2015 through September 30, 2016), and performed the following procedures with respect to the Sheriff’s policies and procedures over investigative funds: 1. We obtained the “Disbursement for Investigation” form and observed that the form was properly completed and authorized by appropriate personnel. 2. We obtained the “Purchase of Evidence/Information Voucher” and observed that the form was properly completed to reflect the expenses incurred within the investigation procedures, that the investigative expenditures were properly supported, and that the use of funds was for authorized purposes. No exceptions were noted. 3. We observed that the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed that the amount deposited agreed to the amount returned per the “Receipt for Funds Received” form detail. Honorable Kevin Rambosk Sheriff   46 We were not engaged to, and did not, conduct an audit or examination, the objective of which would be the expression of an opinion on compliance. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the management of the Sheriff and is not intended to be, and should not be, used by anyone other than this specified party. CliftonLarsonAllen LLP Naples, Florida December 20, 2016 Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2016 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2016 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual – General Fund ..................................................................................................................5 Notes to Financial Statements ..........................................................................................................6 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance With Government Auditing Standards ..............................................21 Management Letter ........................................................................................................................23 Independent Accountants’ Report ..................................................................................................25 1 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the entity’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Jennifer J. Edwards Supervisor of Elections 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2016, and the respective changes in financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 11, 2017 on our consideration of the Supervisor’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Supervisors’ internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2016 See accompanying Notes to Financial Statements 3 Grant General Special Total Fund Revenue 2016 Assets Cash and cash equivalents 166,741$ -$ 166,741$ Accounts receivable 281 - 281 Total assets 167,022$ -$ 167,022$ Liabilities and fund balance Liabilities: Accounts payable 30,203$ -$ 30,203$ Accrued liabilities 91,107 - 91,107 Due to Collier County, Florida Board of County Commissioners 45,712 - 45,712 Total liabilities 167,022 - 167,022 Fund balances: Restricted - - - Total fund balances - - - Total liabilities and fund balance 167,022$ -$ 167,022$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2016 See accompanying Notes to Financial Statements 4 Grant General Special Total Fund Revenue 2016 Revenues: Intergovernmental -$ 33,116$ 33,116$ Interest - 39 39 Total revenues - 33,155 33,155 Expenditures: General government: Personal services 2,078,651 - 2,078,651 Operating 1,750,761 38,882 1,789,643 Capital outlay 119,009 - 119,009 Total expenditures 3,948,421 38,882 3,987,303 Excess (deficiency) of expenditures over revenues (3,948,421) (5,727) (3,954,148) Other financing sources (uses): Transfers in: General Fund - 4,727 4,727 Collier County, Florida Board of County Commissioners appropriations 3,994,700 - 3,994,700 Transfers out: Special revenue fund (4,727) - (4,727) Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (41,552) - (41,552) Total other financing sources (uses) 3,948,421 4,727 3,953,148 Net change in fund balance - (1,000) (1,000) Fund balance – beginning of the yea r - 1,000 1,000 Fund balance – end of the year -$ -$ -$ Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues -$ -$ -$ -$ Expenditures: General government: Personal services 2,209,400 2,104,400 2,078,651 25,749 Operating 1,679,300 1,766,437 1,750,761 15,676 Capital outlay 106,000 119,136 119,009 127 Total expenditures 3,994,700 3,989,973 3,948,421 41,552 Excess (deficiency)of expenditures over revenues (3,994,700) (3,989,973) (3,948,421) 41,552 Other financing sources (uses): Transfers in: Collier County, Florida Board of County Commissioners appropriations 3,994,700 3,994,700 3,994,700 - Transfers out: Special Revenue Fund - (4,727) (4,727) - Distribution of excess appropriations: Collier County, Florida Board of County Commissioners - - (41,552) (41,552) Total other financing sources (uses) 3,994,700 3,989,973 3,948,421 (41,552) Net change in fund balance - - - - Fund balance – beginning of the year - - - - Fund balance – end of the year -$ -$ -$ -$ Budget Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 6 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections’ budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor’s office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the SOE are funded by appropriations from the Collier County, Florida Board of County Commissioners (BOCC), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the SOE’s general fund. The special revenue fund of the SOE is not budgeted and governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 7 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds: General Fund – The general fund is used to account for the general operations of the Supervisor, and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund – The grants fund is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 8 1. Summary of Significant Accounting Policies (continued) Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general fund when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 9 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund-Type Definitions Fund balances are classified either as non-spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non-spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non-spendable fund balances as of September 30, 2016. Spendable fund balances are classified based on a hierarchy of the Supervisor’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor’s fund balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements, and have been presented in the fund financial statements in accordance with GASB Statement No. 54. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 10 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor’s annual budget. The Supervisor submits a budget for the general fund to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor’s total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by State grants and is governed by those documents. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 3. Cash and Cash Equivalents At September 30, 2016, the carrying value of the Supervisor’s cash and cash equivalents was as follows:  Carrying Credit Type Value Rating Cash on hand $ 200 N/A Demand deposits 166,541 N/A Total cash and cash equivalents $ 166,741  Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 11 3. Cash and Cash Equivalents (continued) Custodial Credit Risk At September 30, 2016, the Supervisor’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 12 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2015 Additions Deductions 2016 Machinery and equipment 1,113,822$ 119,009$ (39,589)$ 1,193,242$ Less accumulated depreciation (955,377) (73,164) 39,589 (988,952)$ Machinery and equipment, net 158,445$ 45,845$ -$ 204,290$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida:  October 1,   September 30,  2015 Increase Decrease 2016 Accrued compensated absences $ 155,737 $ 106,140 $ 61,167 $ 200,710 Of these liabilities, approximately $78,277 is expected to be paid during the fiscal year ending September 30, 2017, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 13 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Supervisor are eligible to enroll as members of the State- administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class – Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class – Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) – Members in senior management level positions. Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 14 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 15 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 16 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. SOE employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 17 6. Pension Plans (continued) FRS Investment Plan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the SOE. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor’s contributions made to the plans during the years ended September 30, 2016, 2015 and 2014, were $114,600, $106,131 and $103,864, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report.   Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 18 7. Related-Party Transactions For the year ended September 30, 2016, the Board provided funding for the Supervisor that amounted to $3,994,700. At September 30, 2016, the Supervisor had a payable due to the Board of $45,712 comprised as follows: Distribution of excess appropriations $ 41,552 Distribution of interest earnings 2,909 Amounts due for various services 1,251 Total due to Board of County Commissioners $ 45,712 8. Risk Management Collier County, Florida (County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self- insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County’s self-insurance program. During the year ended September 30, 2016, the Supervisor was charged $293,099 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 19 8. Risk Management (continued) The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Healthcare Benefits (OPEB) Plan The Supervisor follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description The SOE participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report; however, additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida. Under Florida Statutes, retirees originally hired prior to July 1, 2011, are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 if hired on or after July 1, 2011) are also eligible to participate in the medical plan. The Supervisor provides no subsidy to the retiree, or their dependents, for group health care. Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County’s self insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Supervisor had a net OPEB obligation of $18,147 as of September 30, 2016. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2016 20 9. Other Postemployment Healthcare Benefits (OPEB) Plan (continued) The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in November 2014. The notes to the financial statements of the County disclose additional information regarding the other post-employment benefit plan as a whole. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor’s grants. Transfers were required in the amount of $4,727 for the year ending September 30, 2016. 21 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Supervisor’s financial statements, and have issued our report thereon dated January 11, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Jennifer J. Edwards Supervisor of Elections 22 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 23 CliftonLarsonAllen LLP CLAconnect.com MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of the each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2016 and have issued our report thereon dated January 11, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reports We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated January 11, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Jennifer J. Edwards Supervisor of Elections 24 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 25 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections’ (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Supervisor’s compliance with those requirements. Our responsibility is to express an opinion on the Supervisor's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Supervisor’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor’s compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 11, 2017 THIS PAGE INTENTIONALLY LEFT BLANK  Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Years Ended September 30, 2016 and 2015 Collier County, Florida Tax Collector Financial Statements and Other Reports Years Ended September 30, 2016 and 2015 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheets – General Fund ....................................................................................................3 Statements of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ...........................................................................5 Statements of Fiduciary Net Position – Agency Funds ................................................................6 Notes to Financial Statements .......................................................................................................7 Other Reports Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................25 Management Letter ........................................................................................................................27 Independent Accountants’ Report ..................................................................................................29   CliftonLarsonAllen LLP CLAconnect.com   1 INDEPENDENT AUDITORS’ REPORT Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the years ended September 30, 2016 and 2015, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Larry H. Ray Tax Collector 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2016 and 2015, and the respective changes in financial position for the years then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2016, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2016 and 2015, and the changes in its financial position for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statement is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 5, 2017 on our consideration of the Tax Collector's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters included under the heading Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 5, 2017 Collier County, Florida Tax Collector Balance Sheets – General Fund See accompanying Notes to Financial Statements. 3   2016 2015 Assets Cash and cash equivalents 7,643,628$ 7,118,870$ Due from other funds 70,902 64,735 Prepaid rent 26,796 30,789 Prepaid expense - 19,780 Security deposit 4,628 4,628 Total assets 7,745,954$ 7,238,802$ Liabilities and fund balance Liabilities: Accounts payable 17,329$ 40,242$ Due to Collier County, Florida Board of County Commissioners 6,865,518 6,364,300 Due to other governmental agencies 863,107 834,260 Total liabilities 7,745,954 7,238,802 Fund balance - - Total liabilities and fund balance 7,745,954$ 7,238,802$ September 30,     Collier County, Florida Tax Collector Statements of Revenues, Expenditures, and Changes in Fund Balance General Fund See accompanying Notes to Financial Statements. 4   2016 2015 Revenues: Commissions and fees 19,579,160$ 18,285,749$ Miscellaneous 277,346 254,225 Total revenues 19,856,506 18,539,974 Expenditures: General government: Personal services 10,126,106 9,708,288 Operating 1,675,462 1,587,856 Capital outlay 326,313 45,270 Total expenditures 12,127,881 11,341,414 Excess of revenues over expenditures 7,728,625 7,198,560 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (6,865,518) (6,364,300) Distribution of excess commissions and fees to other governmental agencies (863,107) (834,260) Total other financing uses (7,728,625) (7,198,560) Net change in fund balance - - Fund balance, beginning of year - - Fund balance, end of year -$ -$ Year Ended September 30,   Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual General Fund Year Ended September 30, 2016 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 18,975,914$ 18,975,914$ 19,579,160$ 603,246$ Miscellaneous 248,857 248,857 277,346 28,489 Total revenues 19,224,771 19,224,771 19,856,506 631,735 Expenditures: General government: Personal services 10,603,138 10,603,138 10,126,106 477,032 Operating 1,837,174 1,871,366 1,675,462 195,904 Capital outlay 296,600 346,930 326,313 20,617 Total expenditures 12,736,912 12,821,434 12,127,881 693,553 Balance of revenues over expenditures 6,487,859 6,403,337 7,728,625 1,325,288 Other financing uses: Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (5,763,317) (5,688,234) (6,865,518) (1,177,284) Distribution of excess commissions and fees to other governmental agencies (724,542) (715,103) (863,107) (148,004) Total other financing uses (6,487,859) (6,403,337) (7,728,625) (1,325,288) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Collier County, Florida Tax Collector Statements of Fiduciary Net Position Agency Funds See accompanying Notes to Financial Statements. 6   2016 2015 Assets Cash and cash equivalents 6,657,055$ 7,152,324$ Accounts receivable 27,270 18,820 Due from other funds - - Total assets 6,684,325$ 7,171,144$ Liabilities Due to other funds 70,895$ 64,735$ Due to Collier County, Florida Board of County Commissioners 952,005 1,030,992 Due to other governmental agencies 5,608,295 6,048,339 Due to individuals and businesses 53,130 27,078 Total liabilities 6,684,325$ 7,171,144$ September 30,     Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 7 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector’s operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector’s office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector’s financial statements include only the funds of the Tax Collector’s office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Tax Collector. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 8 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheets. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector’s revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt; earlier if the “susceptible to accrual” criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 9 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Agency funds – Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Refund of “Excess Fees” Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as another financing use-transfer out in the accompanying financial statements. Compensated Absences All full-time employees of the Tax Collector are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 10 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197, Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% for payment in February. Unpaid Taxes – Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tax Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 11 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector’s annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector’s total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 12 3. Cash At September 30, 2016 and 2015, the carrying value of the Tax Collector’s cash was as follows: 2016 2015 Carrying Carrying Value Value Cash on hand 35,443$ 33,900$ Demand deposits 14,265,240 14,237,294 Total cash and cash equivalents 14,300,683$ 14,271,194$ Type Such amounts are reported as $7,643,628and $6,657,055 for 2016 and $7,118,870 and $7,152,324 for 2015 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2016, the Tax Collector’s deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Tax Collector’s policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest-bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the state of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 13 3. Cash (continued)  Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2016: October 1, 2015 Additions Deletions/ Reclassifications September 30, 2016 Capital Assets not depreciated: Construction in progress -$ 20,384$ -$ 20,384$ Total assets not depreciated - 20,384 - 20,384 Infrastructure 11,735 - - 11,735 Buildings - 62,174 (62,174) - Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,222,198 243,755 (85,545) 2,380,408 Total Capital Assets 2,345,847 326,313 (147,719) 2,524,441 Less accumulated depreciation: (2,157,216) (117,334) 85,545 (2,189,005) Total capital assets, net 188,631$ 208,979$ (62,174)$ 335,436$ Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 14 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2015: October 1, 2014 Additions Deletions/ Reclassifications September 30, 2015 Infrastructure 11,735$ -$ -$ 11,735$ Improvements other than buildings 111,914 - - 111,914 Machinery and equipment 2,251,583 45,270 (74,655) 2,222,198 Total Capital Assets 2,375,232 45,270 (74,655) 2,345,847 Less accumulated depreciation: (2,105,422) (126,245) 74,451 (2,157,216) Total capital assets, net 269,810$ (80,975)$ (204)$ 188,631$ 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2015 Increase Decrease 2016 Accrued compensated absences 1,224,908$ 596,587$ (647,657)$ 1,173,838$ October 1, September 30, 2014 Increase Decrease 2015 Accrued compensated absences 1,152,878$ 670,017$ (597,987)$ 1,224,908$ Of these liabilities, approximately $650,000 is expected to be paid during the fiscal year ending September 30, 2017, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 15 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ Web site (www.dms.myflorida.com). Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 16 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:  Regular Class – Members of the FRS who do not qualify for membership in the other classes.  Elected County Officers Class – Members who hold specified elective offices in local government.  Senior Management Service Class (SMSC) – Members in senior management level positions.  Special Risk Class – Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 17 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Detailed information about the County’s proportionate share of FRS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 18 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County’s proportionate share of HIS’s net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government-wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 19 6. Pension Plans (continued) FRS Investment Plan (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 20 6. Pension Plans (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. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector’s contributions made to the plans during the years ended September 30, 2016, 2015, and 2014 were $606,522, $598,808, and $545,011, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s comprehensive annual financial report or County-wide financial statements. 7. Other Postemployment Healthcare Benefits (OPEB) Plan The Tax Collector follows GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions in accounting for postemployment benefits. Plan Description  The Tax Collector participates in a group health care plan that covers eligible retirees, and their dependents, of the Board and all Constitutional Officers with the exception of the Sheriff. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report; however additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Collier County, Florida. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 21 7. Other Postemployment Healthcare Benefits (OPEB) Plan (continued) Under Florida Statutes, retirees originally hired prior to July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 62 and have 6 years of service or have at least 30 years of service. Employees hired on or after July 1, 2011 are eligible to participate in the active medical plan by paying the active rate if they have attained age 65 and have 8 years of service or have at least 33 years of service. Employees eligible for a reduced benefit under the Florida Retirement System prior to age 62 (65 years of age if hired on or after July 1, 2011) are also eligible to participate in the medical plan. In addition, the Tax Collector provides a 100% subsidy for retirees between the ages of 55 and 65 with more than 10 years of service and 800 hours of accumulated sick leave to remit at the time of retirement for employees hired prior to June 1, 2015. Funding Policy The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed by the participating agencies on a pay as you go basis through the County’s self insurance internal service fund. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Tax Collector had a net OPEB obligation of $10,638 and $13,851 as of September 30, 2016 and 2015, respectively. The annual other postemployment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed in October 1, 2015. The notes to the financial statements of the County disclose additional information regarding the other postemployment benefit plan as a whole. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 22 8. Related-Party Transactions During the fiscal years ended September 30, 2016 and 2015, the Board paid commissions and fees to the Tax Collector that amounted to $17,638,997 and $16,391,328, respectively. At September 30, 2016 and 2015, the Tax Collector had a payable due to the Board of $7,817,523 and $7,395,292, respectively, comprised as follows: 2016 2015 Distribution of unused commissions and fees 6,865,518$ 6,364,300$ Agency funds due to the Board 952,005 1,030,992 7,817,523$ 7,395,292$ 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County’s self-insurance program. During the years ended September 30, 2016 and 2015, the Tax Collector was charged $2,948,054 and $2,833,407, respectively, by the County for participation in the risk management program. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 23 9. Risk Management (continued) The County provides coverage for up to $500,000 per claim for workers’ compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third party carriers in any of the last three years. The County is self-insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Tax Collector has noncancelable operating leases for certain office facilities that were utilized solely by the Tax Collector for fiscal year 2016. The two current leases include options for a 5-year renewal with an annual escalation clauses ranging from 1-5% annually. The following is a schedule of future minimum lease payments under the operating leases: Fiscal year ending September 30: 2017 238,798$ 2018 244,360 2019 250,334 2020 199,976 2021 146,800 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2016 and 2015 24 10. Commitments and Contingencies (continued) Rental expense for all operating leases in the aggregate was $378,915 and $362,182 for the years ended September 30, 2016 and 2015, respectively. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2016 or 2015. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector. CliftonLarsonAllen LLP CLAconnect.com  25 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Larry H. Ray Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Tax Collector’s financial statements, and have issued our report thereon dated January 5, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Larry H. Ray Tax Collector    26 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Tax Collector’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 Tax Collector’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 5, 2017 CliftonLarsonAllen LLP CLAconnect.com 27 MANAGEMENT LETTER Honorable Larry H. Ray Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2016, and have issued our report thereon dated January 5, 2017. Auditors’ Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reports We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.500, Rules of the Auditor General. Disclosures in those reports which are dated January 5, 2017 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Honorable Larry H. Ray Tax Collector    28 Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 5, 2017 CliftonLarsonAllen LLP CLAconnect.com   29 INDEPENDENT ACCOUNTANTS’ REPORT       Honorable Larry Ray Tax Collector Collier County, Florida   We have examined the Collier County Tax Collector, Collier County, Florida’s (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2016. Management is responsible for the Tax Collector's compliance with those requirements. Our responsibility is to express an opinion on the Tax Collector's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Tax Collector’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector’s compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties.         CliftonLarsonAllen LLP Naples, Florida January 5, 2017 THIS PAGE INTENTIONALLY LEFT BLANK